Industry analysis

Before you decide whether to compete a requirement or justify a non-competitive approach, you need to understand who's out there and what they can actually deliver. That's where industry analysis comes in—it's your systematic look at the supplier landscape to figure out if competition is viable and how to structure your procurement strategy. In practice, this happens during procurement planning, even though you won't find "industry analysis" as a formal term in the Supply Manual.

How It Works

When you're planning a procurement, you're essentially asking yourself: who can do this work, and how many of them are there? The Office of the Procurement Ombudsman put it well in their 2009-2010 review—you need to understand what potential users need, what's available in the market, and how that supplier market actually functions. This knowledge shapes everything from your solicitation method to your evaluation criteria.

This isn't just desk research. You might review past procurement files for similar requirements, check existing Supply Arrangements like the Task and Solutions Professional Services (TSPS) to see if pre-qualified suppliers already exist, or reach out directly to potential suppliers through Requests for Information. Public Services and Procurement Canada uses these tools regularly, especially for complex requirements where the market's maturity varies significantly.

The analysis feeds directly into your decision tree. Multiple capable suppliers? You're heading toward a competitive process. Only one supplier with the required capabilities or intellectual property? You're building your case for a non-competitive contract under the appropriate trade agreement exception. Your findings need to be documented because they form part of your justification for whatever procurement strategy you ultimately choose.

Key Considerations

• Timing matters. Don't wait until you're ready to issue a solicitation. Early market engagement during the planning phase gives suppliers time to prepare and can reveal capabilities you didn't know existed.

• Existing vehicles change the game. If your requirement falls under a mandatory Supply Arrangement or standing offer, much of the supplier qualification work has already been done. You're analyzing a pre-qualified pool, not the entire market.

• Document your methodology. If you later justify a sole-source contract based on limited supplier availability, you'll need to show you actually looked. "We didn't find anyone else" doesn't hold up without evidence of a genuine search.

• Market conditions shift. A supplier landscape from three years ago may not reflect today's reality, especially in technology sectors. Fresh analysis for significant procurements is essential.

Related Terms

Procurement planning, Market research, Advance Contract Award Notice

Sources

• Supply Manual, Chapter 5 - Procurement Planning

• Office of the Procurement Ombudsman, Annual Report 2009-2010, Chapter 5

• Task and Solutions Professional Services (TSPS), Public Services and Procurement Canada

Bottom line: a solid understanding of your supplier market protects both your procurement strategy and your ability to defend it. The analysis doesn't need to be elaborate, but it does need to be real.