Delivery

Delivery in Canadian government procurement is the act, and the contractual obligation, of supplying the required goods, services or other deliverables to the specified delivery point. It must happen by the required date or within the required period, and under the shipping and acceptance conditions stated in the contract.

Federal contracts do not treat delivery as a single line item. They spell it out through clauses covering delivery dates, delivery points, shipping instructions, transportation costs and the transfer of risk. A supplier that reads those clauses closely knows exactly what it must do, where, and when.

Delivery clauses in the federal SACC Manual

The federal Standard Acquisition Clauses and Conditions (SACC) Manual has a dedicated section of standard procurement clauses on delivery. Contracting authorities draw on these clauses when they build solicitations and contracts, which is why the same wording appears across many bid documents. The SACC Manual can be reached through the CanadaBuys search.

Federal contract templates for goods use a "Delivery Date" clause. It requires the goods to be delivered by a specified date or within a specified period. A contract can also expressly require the contractor to deliver or perform the work within the time stated in the contract.

Delivery points and delivery dates in a solicitation

Solicitations state that delivery must be made to the delivery point or points identified in the contract or in an annex. One federal request for proposal on CanadaBuys requires all deliverables to be received by a stated deadline and lists the delivery points in an annex.

A federal solicitation for electric-vehicle equipment specifies a delivery period and delivery locations. It also sets out who is responsible for delivery charges, transport, customs clearance, duties and applicable taxes.

Delivery at origin and delivery at destination

Public Works and Government Services Canada supply guidance distinguishes delivery at origin from delivery at destination. It identifies a clause for each: D4000C for delivery at origin and D4001C for delivery at destination.

The distinction decides where the contractor's responsibility ends and where Canada's begins. Bidders should confirm which applies before pricing transportation.

DDP and FCA shipping terms

Many goods contracts use Incoterms to allocate delivery responsibility. Two appear in the federal documents reviewed here:

• DDP (Delivered Duty Paid): the contractor is responsible for delivery to the stated destination, including the specified transportation and customs-related responsibilities. The request for proposal cited above requires DDP under Incoterms 2020.
• FCA (Free Carrier): the contractor loads the goods onto the carrier designated by the Department of National Defence (DND), and Canada assumes onward shipment from the delivery point. A DND procurement document illustrates this arrangement.

Where the contractor arranges transportation, federal clauses require shipment by the most direct and economical means consistent with normal shipping practice. Transportation charges may need to be shown separately on the invoice.

What delivery means for a supplier bidding on Canadian public contracts

Delivery terms are part of the price. Before bidding, confirm the delivery date or period, every delivery point named in the contract or annex, the Incoterm, and who pays for transportation, customs clearance and duties.

Defence work adds requirements of its own. A DND solicitation requires DDP delivery to specified Canadian Forces locations and delivery to Canadian Forces supply depots by appointment. Suppliers must plan for scheduling as well as shipping.

Delivery can also be an evaluation factor. CanadaBuys describes a request for quotation as suitable where requirements are clearly defined and evaluation can be based on price and delivery. In that case, a firm and achievable delivery commitment is part of what is scored.