Invitation to Tender (ITT)

An Invitation to Tender (ITT) is a competitive solicitation method, not a contract. The buyer invites suppliers to submit offers against a clearly defined requirement, and the contract is awarded to the lowest-priced responsive offer without negotiations. The Government of Canada sets this out in its CanadaBuys buyer guidance on the ITT method.

In Canada's bilingual federal procurement documents, the French equivalent of ITT is appel d'offres (AO), as shown in a Fisheries and Oceans Canada ITT on CanadaBuys. Federal ITTs can cover goods, services and construction, depending on the requirement.

When federal buyers choose an ITT

CanadaBuys ties the ITT to a specific set of conditions. At least two suppliers must be capable of performing the requirement. The requirement must be defined well enough that offers can be evaluated against clearly stated criteria. Bids must be comparable on a common pricing basis, and the buyer must intend to accept the lowest-priced responsive offer without negotiations.

This makes the ITT a price-based, low-bid method. CanadaBuys distinguishes it from methods that evaluate proposals on broader technical, rated, socio-economic or value-based criteria. If a buyer needs to weigh quality against price, the ITT is not the method it uses.

How an ITT is issued and opened

The Government of Canada says an ITT can reach suppliers in three ways: public advertisement on the Government Electronic Tendering Service (GETS), direct invitation from a source list, or invitation to a single source where the conditions for a non-competitive process are met.

CanadaBuys guidance recommends a public opening for ITTs with an estimated value above $25,000, and a public opening may also be held below that amount when circumstances warrant, according to the CanadaBuys ITT guidance.

Before issuing an ITT to invited offerors who were not drawn from a prequalified list, contracting officials must check the Ineligibility and Suspension List. The ITT must also carry the applicable Ineligibility and Suspension Policy Clauses.

What an ITT response must include

An ITT response is judged on whether it is complete and compliant, then on price. Federal ITT documents generally require a supplier to:

• submit the bid or quotation by the stated closing date and time;
• use the specified submission method and address;
• complete the required bid forms;
• meet all mandatory requirements and stated conditions;
• provide bid security where required; and
• comply with the ITT's instructions, clauses and attachments.

The Fisheries and Oceans Canada ITT cited above requires a full and complete quotation by the closing date and time, and it also calls for a completed Bid and Acceptance Form and bid security. A Health Canada construction ITT shows the same federal format applied to a works project.

ITT as the second phase of a two-phase process

Some buyers pair the ITT with an earlier qualification step. In an Environment and Climate Change Canada solicitation, an Invitation to Qualify identifies and prequalifies respondents. Only the qualified respondents are then invited to submit a bid in the ITT phase. A supplier that is not prequalified in the first phase cannot bid in the second.

What an ITT means for your bid

For a supplier, an ITT rewards compliance and competitive pricing. Because the buyer does not negotiate, there is no opportunity to fix a missing form, an unmet mandatory requirement or a late submission after closing. Read every clause and attachment before you price.

Requirements differ between solicitations. The Government of Canada notes, for example, that the treatment of greenhouse gas disclosure requirements depends on the clauses written into the specific solicitation, as described on the Public Services and Procurement Canada green procurement page. Confirm the closing time, the bid security and form requirements, and any prequalification step before you commit to bidding.