Item-by-item basis

Item-by-item basis is a way of handling a solicitation that covers more than one good. Instead of judging a bid as a single package, the buyer evaluates, prices, certifies or awards each line item on its own. The phrase appears throughout Canadian procurement documents, from National Defence tenders to federal standing offers.

The practical result is that one solicitation can produce several winners. Canadian procurement documents state that under an item-by-item evaluation, Canada may award contracts to more than one offeror. The solicitation document itself sets out which approach applies, so suppliers need to read that section closely before they price or submit.

Item-by-item evaluation compared with aggregate evaluation

Canadian solicitations distinguish item-by-item evaluation from aggregate evaluation for requirements that include more than one good. Under aggregate evaluation, the requirement is treated as a whole. Under item-by-item evaluation, Canada may assess each item separately. The wording is common where a solicitation covers a variety of goods. A National Defence tender notice on CanadaBuys sets out both methods and confirms that item-by-item evaluation can lead to awards to more than one offeror.

How PSPC standing offers apply the term

Public Services and Procurement Canada (PSPC) uses the phrase in several collaborative procurement standing offers. The way it works differs by commodity:

• Bread and bakery products: standing offers are issued on an item-by-item basis, and the lowest-priced offeror is awarded each line item, according to the PSPC fact sheet.
• Photography equipment: authorized users may call up goods from the offeror that best meets the technical requirements on an item-by-item basis. Ranking and right-of-first-refusal mechanisms do not apply. See the photography equipment page.
• Office supplies: suppliers provide prices for the core-list items, and those prices are evaluated on an item-by-item basis, as described on the office supplies page.
• Automated external defibrillators: authorized users may select the offeror with the best technical merit for each item, and suppliers must provide electronic price lists for comparison. See the defibrillator page.

In each case, the unit of competition is the line item. The selection test varies, with lowest price for some commodities and best technical merit for others.

Use in National Defence solicitations

Department of National Defence procurement documents define item-by-item evaluation as a method under which Canada may evaluate each item separately and award contracts to more than one offeror. The term appears in tenders for military goods, including a request for proposal for spares for armament loaders. Spares requirements often list many distinct parts, which suits separate evaluation and separate awards.

Canadian-content certification by line item

The basis of evaluation also affects certification. For multi-item requirements awarded or evaluated on an item-by-item basis, offerors must identify separately each item that meets the definition of Canadian goods. The Government of Canada explains this in its key considerations for preparing solicitation offers. A blanket statement about the whole bid does not meet that requirement.

What item-by-item basis means for suppliers

Suppliers should submit a compliant response for every line item they want to win. Where the solicitation asks for it, provide separate pricing or technical information for each item and identify any item-specific Canadian-content qualification. A weak or non-compliant response on one item does not have to sink the others, and a supplier can win some lines without winning all of them.

Check whether the solicitation calls for aggregate or item-by-item evaluation before pricing, because that choice controls whether one supplier receives every item or several suppliers receive separate awards. In standing offers, confirm whether selection turns on lowest price or best technical merit for each item.