Competitive contracting process

A competitive contracting process is a procurement process in which a contracting authority solicits offers from suppliers and selects a contractor through an open, fair and transparent competition. Suppliers bid against stated requirements, and the authority evaluates every offer against evaluation criteria published in advance.

In Canadian federal procurement policy, audit and oversight materials, the term separates competitive contracting from non-competitive contracting. Federal guidance treats competition as the normal way to select a contractor, subject to specified exceptions. The sections below explain where that expectation comes from, how a competitive process runs, and how NATO frames the same idea.

The Government Contracts Regulations and the competition requirement

The Government Contracts Regulations require federal contracting authorities to solicit offers before entering into contracts, subject to exceptions. CanadaBuys guidance on sourcing strategy states that contractors should be selected through a competitive process whenever possible. You can read it in the CanadaBuys sourcing strategy guidance.

The Regulations also contain exceptions to this general requirement. The Office of the Procurement Ombud discusses those exceptions in its 2024 procurement practice review. A contract awarded without competition must fit within one of them.

How a federal competitive process runs

Federal audits identify fairness, openness and transparency as requirements for competitive contracting. A request for proposals gives suppliers the information needed to bid, including the statement of work and the bid-evaluation criteria. The Public Service Commission's audit of procurement describes these expectations. Requirements must be clear enough that suppliers understand what they are bidding on and how their offers will be evaluated.

The Office of the Procurement Ombud's review of Fisheries and Oceans Canada shows the typical sequence. The department's competitive contracting processes included:

• preparing requests for proposals
• soliciting bids
• evaluating bids
• awarding and managing the resulting contracts

Fisheries and Oceans Canada used its own competitive processes as well as methods of supply offered by Public Services and Procurement Canada (PSPC). Global Affairs Canada's audit of mission procurement also refers to competitive contracting processes. It identifies proposal evaluation, contract terms, pricing and invoice controls as relevant elements.

Methods of supply and two-stage procurements

PSPC conducts competitive procurements and provides methods of supply, including standing offers and supply arrangements. Departments use these to obtain goods and services from pre-qualified suppliers.

Some competitions run in two stages. A notice of proposed procurement first identifies businesses that meet predetermined participation qualifications. Tender documents are then issued to the prequalified offerors only. The CanadaBuys guidance linked above describes this approach.

How NATO frames competition

NATO uses an equivalent concept. Its procurement requirements are to be met by maximizing competition among eligible and capable sources. The NATO procurement manual describes documenting a source-selection or technical-evaluation plan. Offers are then evaluated against the factors and sub-factors stated in the solicitation, and the source-selection decision is documented.

What it means for a supplier

Your bid is judged only against what the solicitation states. Submit your bid or proposal as the solicitation requires. Address every published mandatory requirement, evaluation factor and submission instruction. Read the statement of work and the bid-evaluation criteria closely, because they define how offers will be scored. If a contract is awarded without competition, the buyer must be relying on an exception in the Government Contracts Regulations. Supplier registration for methods of supply such as standing offers and supply arrangements can give you access to later buying that is limited to pre-qualified suppliers.