Definition of Requirements

Definition of Requirements is the pre-solicitation stage of procurement in which a buyer works out what it needs and writes it down. In Canadian federal procurement, the PWGSC Supply Manual describes it as defining the materiel and/or services needed to meet the operational need, including the applicable specifications and standards (Supply Manual).

It is an activity, not a supplier qualification or a type of contract. What the buyer settles here becomes the statement of work, the specifications and the mandatory criteria that suppliers later see in the solicitation. Suppliers are bid against, evaluated against and held to the contract on that basis.

What the Supply Manual assigns to Definition of Requirements

The Supply Manual treats Definition of Requirements as a responsibility within the procurement process. The work is to define the materiel and services required to meet the operational need and to identify the specifications and standards that apply. In the manual's example, the technical client holds overall responsibility for the definition of requirements. Technical and client departments define the operational requirement first, then send a requisition to the contracting authority.

CanadaBuys treats defining the requirement as a core stage of the buyer's process. Its define the requirement guidance covers the work from receipt of the requisition through matters such as quality assurance and socioeconomic requirements.

Activities that make up requirements definition

Library and Archives Canada describes requirements definition as identifying the requester's needs so that the goods or services acquired suit the situation and comply with applicable legal frameworks. Its acquisition services valuation tool lists the activities involved:

• the business case
• the statement of work or goods specifications
• security requirements
• risk assessment
• expenditure approvals

Each item shapes what a supplier will later be asked to deliver and prove.

Treasury Board expectations for clear requirements

Treasury Board contracting policy says requirements should be defined, and specifications and estimates established, before bids are solicited and contracts awarded. The same policy requires work descriptions or specifications to be stated in clear output or performance terms that establish in advance what the supplier must do (Treasury Board contracting policy).

Federal policy also directs departments and agencies to use nationally or internationally recognized standards whenever possible when defining requirements (Treasury Board policy on standards). CanadaBuys explains the value of this discipline in its guidance on the importance of a clear procurement requirement.

How NATO frames requirement definition

The NATO Procurement Manual uses the same concept. It describes requirement definition as defining and describing what is needed, collecting information, identifying suitable solutions and expressing them in technical specifications for goods and equipment, or in statements of work for works and services. NATO states that these specifications and statements of work form the technical basis for soliciting and evaluating offers (NATO Procurement Manual). Suppliers pursuing NATO work will find the same logic as in Canadian federal procurement: the written requirement drives both the solicitation and the evaluation.

What it means for a supplier bidding on Canadian public contracts

Treat the solicitation as the authoritative statement of the buyer's requirement. Read the statement of work, specifications, mandatory requirements, standards, security conditions, deliverables, acceptance criteria and any referenced clauses as one package. Your bid must demonstrate compliance with them, and you will perform the resulting contract against them.

Because the buyer defines the requirement before the solicitation is issued, the solicitation documents are where that work becomes visible to you. Ask questions about unclear requirements through the channel the solicitation provides, and build your proposal to answer each stated requirement directly.