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Competitive procurement
A procurement process that invites multiple suppliers to submit bids or proposals to provide goods or services. This method aims to foster competition, ensuring that the government receives the best value for its expenditures. Competitive procurements are subject to specific rules and regulations to maintain fairness and transparency.
When Canadian government departments need to buy something—whether it's office supplies, IT services, or construction work—competitive procurement is the default approach. It's the government's way of shopping around to get the best deal. According to the Supply Manual Chapter 5, competitive processes are the norm, and contracting authorities must use them unless there's full justification for a non-competitive method as outlined in the Government Contracts Regulations.
How It Works
Once you cross certain dollar thresholds, competition becomes mandatory. For goods over $25,000 or services and construction above $40,000, departments typically publish opportunities on CanadaBuys using one of several competitive methods. The most common are Invitation to Tender (ITT) when you know exactly what you want, Request for Proposal (RFP) when you need suppliers to propose solutions, Request for Standing Offer (RFSO) for establishing pre-approved supplier lists, and Request for Supply Arrangement (RFSA) for broader procurement vehicles.
The Government Contracts Regulations, specifically Section 5, lay it out clearly: unless it's not in the public interest, contracting authorities must solicit bids from an adequate number of suppliers. What does "adequate" mean? In practice, it means casting a wide enough net to genuinely foster competition. PSPC and other departments publish these opportunities publicly, giving any qualified supplier a fair shot at the business. The evaluation criteria must be clear from the start. Non-compliant bids get rejected—no exceptions, no special favors.
The process protects both taxpayers and suppliers. Fairness and transparency aren't just buzzwords here; they're legal requirements backed by the Treasury Board Contracting Policy. You need documented justification to skip competition, and Section 6 of the Government Contracts Regulations spells out the limited exceptions—emergency situations, only one supplier can do the work, or you're buying from another government entity. Even then, expect scrutiny.
Key Considerations
Thresholds matter, but they're not the whole story. Just because your requirement is under $25,000 doesn't mean you shouldn't compete it. Good procurement practice often means getting quotes even below mandatory thresholds.
Timeline planning is essential. Competitive processes take time—typically 15 to 30 days minimum for bids to come in, plus evaluation time. DND and SSC procurement offices routinely see requirements submitted with unrealistic timelines that force unnecessary sole-source contracts.
Evaluation criteria must be set before you see any bids. You can't change the rules mid-game. This trips up new procurement officers more than almost anything else.
Trade agreements apply. Canadian procurement is subject to various trade agreements that affect thresholds and supplier eligibility. Your contracting authority needs to consider these obligations.
Related Terms
Sole-source procurement, Request for Proposal (RFP), Standing Offer, Supply Arrangement
Sources
Bottom line: if you're buying something significant with public funds, plan to compete it. The exceptions exist, but they're narrow and require solid documentation. Your procurement office will thank you for building in enough time to do it right.
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