Aggregate Certification

Aggregate certification is a method under the Canadian Content Policy for certifying a requirement that contains more than one good and/or service. Instead of assessing each item on its own, the offeror certifies the requirement as a whole. The test is applied to the total offer price rather than to individual line items.

Under this method, at least 80% of the total offer price must consist of Canadian goods, services, or the applicable combination of the two. The rule is set out in the Government of Canada guidance on key considerations for preparing solicitation offers, which is issued through CanadaBuys for federal procurement subject to the Canadian Content Policy.

How the 80% threshold applies to goods, services and mixed bids

The threshold is the same 80% of total offer price in every case, but what counts as Canadian depends on the type of requirement. The CanadaBuys guidance sets out three versions:

• Goods: at least 80% of the total offer price must consist of Canadian goods.
• Services: for a requirement made up of multiple services, at least 80% of the total offer price must be provided by individuals based in Canada.
• Goods and services combined: at least 80% of the total offer price must consist of Canadian goods and services.

In each case the offeror submits a certification that the overall offered requirement meets the Canadian content definition and the threshold.

Aggregate certification compared with item-by-item certification

The alternative to aggregate certification is item-by-item certification. Under that method, offerors identify separately each item that meets the definition of Canadian goods. Each good is assessed on its own.

The difference is the unit being tested. Aggregate certification looks at the whole offer and asks whether the Canadian share of the total price reaches the threshold. Item-by-item certification asks the offeror to account for each item individually. The two methods are not interchangeable at the supplier's choice, because the buyer selects one of them for the solicitation.

When a solicitation uses aggregate certification

The certification requirement applies to procurements that are solely or conditionally limited to offerors able to provide Canadian goods and/or services. Within those procurements, aggregate certification is a choice for requirements that contain more than one good and/or service.

The contracting authority makes that choice during procurement planning. It decides whether certification will be on an aggregate or an individual basis, and the decision is then reflected in the solicitation. Suppliers do not set the method. They respond to the one the buyer has chosen, as described in the CanadaBuys guidance. Solicitations are published on CanadaBuys.

What aggregate certification means for a supplier

If you bid on a Canadian Content Policy solicitation with several goods or services, check which certification method the solicitation requires. Where it is aggregate, your certification covers the full offered requirement, so the Canadian share of your total offer price is what counts.

• Confirm whether the requirement is goods, services, or both, because the Canadian content test differs for each.
• For services, confirm that the individuals delivering the work are based in Canada.
• Build your price so that the Canadian portion reaches at least 80% of the total offer price, as the CanadaBuys guidance requires.
• If the solicitation calls for item-by-item certification instead, prepare to identify each qualifying item separately.