Formal Procurement Plan

A formal procurement plan is the planning document a Government of Canada department prepares before it takes significant steps in a procurement. It sets out the intended strategy for the purchase and is used to obtain approval of that strategy. CanadaBuys, the federal buyer's portal, describes the procurement plan as the record of how the buyer intends to carry out its procurement activities. CanadaBuys procurement plan guidance covers both the standard plan and the formal version.

The word "formal" marks the higher tier. CanadaBuys separates procurements at or below the Director General approval level from those at or above the Assistant Deputy Minister (ADM) level. The first group uses a procurement plan. The second uses the formal procurement plan template. The formal plan is therefore tied to the seniority of the official who approves the contract, not to a separate type of purchase.

Where the formal plan sits in the approval sequence

The plan comes early. CanadaBuys states that a procurement plan sets out the strategy before significant actions such as posting an Advance Contract Award Notice (ACAN) or entering contract negotiations. The buyer settles its approach first and releases documents to the market afterwards.

Historical Public Services and Procurement Canada (PSPC) Supply Manual material follows the same order. It required a formal Procurement Plan, or a Contract Planning and Advance Approval process, to be approved before the department released a Notice of Proposed Procurement, an ACAN, a bid solicitation or a request for a standing offer. See the PSPC Supply Manual (2006) and the PSPC Supply Manual (2005).

The ADM-level requirement for PSPC procurements

For PSPC Acquisitions Program procurements that need contract-entry approval at or above the ADM level, CanadaBuys states that the formal procurement plan is required to obtain approval of the procurement strategy. The plan is the vehicle for that approval. Without it, the strategy for these procurements is not approved.

What the plan addresses

PSPC's internal audit of land, aerospace and marine equipment procurement describes the Procurement Plan as part of the process used to develop and review the procurement strategy. That review covers whether to use competitive or sole-source contracting and whether industrial and regional benefits may apply. The audit is available on the PSPC internal audit reports page.

The plan also carries specific content for some contract types. CanadaBuys states that, where a contract involves task authorizations, the Contract Planning and Advance Approval document or the formal procurement plan must address specified matters. Those requirements are set out in the CanadaBuys task authorizations guidance.

What a formal procurement plan means for a supplier

The formal procurement plan is an internal government document, and suppliers do not normally see it. Its effects show up in the opportunities the buyer later publishes. The decisions it records, such as competitive or sole-source contracting and the application of industrial and regional benefits, shape the notice or solicitation you eventually see.

• Timing: The plan is approved before an ACAN or a bid solicitation is released, so the strategy is already set when the opportunity appears.
• Scale: A formal plan signals a procurement at or above the ADM approval level, which means senior-level approval stands behind the strategy.
• Early engagement: Because the strategy is fixed before public release, suppliers who want to influence a large procurement need to engage the buyer before the plan is approved.

Reading the published notice with this sequence in mind helps a bid team judge how firm the buyer's approach is and where it can still raise questions.