Competitive Requirement

A competitive requirement is a government procurement need that is competed among eligible suppliers through a solicitation process. It is not awarded on a non-competitive or sole-source basis. In Canadian federal procurement, the term is the counterpart of a non-competitive requirement.

Suppliers respond to a competitive requirement by submitting bids that satisfy the solicitation's mandatory requirements and evaluation criteria. The term appears in Public Services and Procurement Canada (PSPC) templates, standard instructions, supply arrangements, buyer guidance and solicitation documents posted on CanadaBuys.

Competitive and non-competitive requirements compared

The distinction is operational. Where a requirement is competitive, Canada normally solicits offers and selects a supplier through a competitive process. CanadaBuys states that the Government Contracts Regulations generally require the solicitation of offers before a contract is entered into, subject to exceptions. Non-competitive contracting applies only where procurement rules permit it.

CanadaBuys buyer guidance asks federal buyers whether it is feasible and affordable to compete the requirement. Where it is, buyers then consider whether it should be issued as a competitive requirement. The guidance is set out on the CanadaBuys sourcing strategy page.

Where the term appears in federal procurement documents

• Supply arrangements: the PSPC ProServices supply arrangement identifies competitive requirements as a procurement category and distinguishes them from non-competitive requirements.
• Standard instructions: Immigration, Refugees and Citizenship Canada publishes standard instructions for goods or services competitive requirements. They apply to competitive solicitations and set submission and integrity obligations for bidders.
• Solicitation documents: CanadaBuys RFB and RFP documents use the term when explaining how a single bid is treated, as in this request for bids.
• Collaborative procurement: PSPC describes opportunities such as body-worn cameras and digital evidence management systems as competitive requirements posted on CanadaBuys, with selection based on technical merit and price.

Rules that apply to bids on a competitive requirement

Competitive solicitations set clear conditions for responding. A bid must comply with the solicitation and meet all mandatory technical evaluation criteria to be declared responsive. The IRCC instructions also require the bid to be signed by the bidder or an authorized representative, at closing or when the Contracting Authority requests it. They state that a supplier must have a Procurement Business Number before contract award.

Single-bid situations are addressed directly. When a competitive requirement receives only one bid, the CanadaBuys documents permit Canada to request price justification or supporting pricing documentation. The wording is in this request for proposals.

Competition as a principle in NATO procurement

Competitive requirement is a Canadian federal term, but the principle behind it is shared. NATO procurement guidance states that NATO requirements are to be met by maximizing competition among eligible and capable sources. This is set out in the NATO procurement manual.

What it means for a supplier

When a notice describes a competitive requirement, your bid is judged against the solicitation's stated criteria. Bid teams should:

• submit by the stated closing date and time;
• sign the bid as required;
• meet every mandatory technical and other evaluation criterion;
• provide required certifications and a Procurement Business Number where required;
• be ready to supply price justification if only one bid is received; and
• comply with the integrity and Code of Conduct requirements in the instructions.