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Formal Procurement Plan
A documented strategy outlining the procurement process for goods and services, including timelines, budget estimates, and resource allocation. It serves as a roadmap for the procurement activities and ensures compliance with regulatory requirements.
A Formal Procurement Plan is the documented framework that federal departments use to map out their acquisition activities before launching a competitive process. Think of it as your blueprint for navigating the regulatory requirements and internal approvals that govern how government buys goods and services. The Supply Manual lays out this process specifically in Chapter 6, Section 6E-14, and if you're working on complex or high-value procurements, you'll need to get comfortable with what goes into one.
How It Works
The planning process starts well before you post anything to CanadaBuys. You're documenting your procurement strategy: timelines, budget estimates, resource requirements, and the method of supply you intend to use. According to the Supply Manual Chapter 6, the formal plan must address the procurement approach and move through an approvals process detailed in Section 6E-15. This isn't just paperwork—it's how departments ensure their procurement activities align with Treasury Board policies and the Treasury Board Common Services Policy requirements.
The level of detail required varies depending on your procurement method and dollar value. PSPC and other departments conduct what they call business intelligence gathering through their Commodity Management Teams to inform these plans. In practice, this means you're looking at market conditions, supplier availability, and whether existing standing offers or supply arrangements already cover what you need. The Task and Solutions Program, for instance, requires specific documentation control tailored to whether you're using a competitive process or a solution-based supply arrangement.
The approval chain matters. A lot. Different dollar thresholds trigger different approval authorities, and your plan needs to account for the time these approvals take. Larger departments like DND or SSC often have their own internal review processes layered on top of the standard requirements. If your procurement involves anything that might raise questions about value for money or compliance with trade agreements, factor in extra time.
Key Considerations
Start early. The formal planning process takes longer than most people expect, especially when multiple approval levels are involved. Budget several weeks minimum for complex acquisitions.
Document your market research. Approval authorities want to see that you've done your homework on supplier capacity, pricing reasonableness, and whether alternative procurement methods were considered.
Your plan isn't static. Market conditions change, budgets shift, and requirements evolve. Build in checkpoints to revisit and update your documented strategy as circumstances warrant.
Know which policies apply. Federal procurement involves multiple policy frameworks—Treasury Board Contracting Policy, departmental delegation authorities, and trade agreement obligations all intersect in your planning document.
Related Terms
Procurement Strategy, Advance Contract Award Notice (ACAN), Standing Offer
Sources
Supply Manual (2005 Edition), Chapter 6 - Developing the Procurement Strategy, Section 6E-14
Solution-Based Supply Arrangement - Task and Solutions Program
If you're managing procurements above the competitive threshold, treating the formal plan as a compliance exercise is a mistake. It's your opportunity to think through risks, timelines, and resources before you're locked into a process.
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