Justification for the Pre-Identified Supplier

Justification for the Pre-Identified Supplier is the section of an Advance Contract Award Notice (ACAN) that states why the named supplier has been identified as the only supplier capable of performing the work or meeting the Government of Canada's requirements. The justification must clearly explain the reasons that support that identification. It is the core of the notice, because it is the department's stated case for a non-competitive award.

An ACAN is used when a department or agency intends to award a contract to a specified supplier, while giving other suppliers an opportunity to show that they can meet the requirement. The justification tells those other suppliers what the requirement is, what the named supplier brings to it, and what a challenger would need to demonstrate. The term comes from the model ACAN content in the Government of Canada Supply Manual.

Where the Supply Manual places the justification

The term appears in Supply Manual, Chapter 3, Annex 3.3, which sets out the model content of an Advance Contract Award Notice. The model instructs contracting officials to state the reasons or justification for the pre-identified supplier. It also says the justification should clearly demonstrate why that supplier is the only one capable of performing the work or meeting the government's requirements. The Annex is available through the CanadaBuys Supply Manual chapter 3 annexes.

The grounds departments commonly rely on

Published ACANs use the justification section in many categories, including goods, services, research, information technology, scientific equipment, training, advisory services, and support or maintenance contracts. The grounds that appear most often are:

• Unique qualifications: the supplier is the only one considered capable of delivering the requested work.
• Exclusive authorization: the supplier is the only party authorized to provide a product or service.
• Compatibility or commonality: the supplier's offering works with equipment the department already operates.
• Meeting all mandatory requirements: the supplier is the only one known to satisfy every mandatory or operational criterion.

How the justification reads in published notices

A Department of National Defence notice for supply-chain-management research and advisory support identified Gartner Canada Co. as the only contractor considered capable of providing that support. A DND training notice stated that the pre-identified supplier had previously delivered the course while meeting technical, instructional and administrative requirements, including the use of DND materials and government-furnished-information protocols.

Compatibility is another common basis. One notice for Keysight equipment justified the supplier because its tunable laser met the specified performance requirements and was compatible with systems already installed in the department's test stations. A National Research Council notice for thermal-analysis equipment cited commonality and compatibility with existing equipment, including reduced operational, training and servicing costs.

Exclusive authorization appears in a Library and Archives Canada notice, which named the supplier as the exclusive Canadian reseller authorized to provide extended support for Digital Film Technologies' Scanity scanners.

What the justification means for a supplier bidding on Canadian public contracts

If you believe you can meet the requirement, the justification is what you respond to. Read it closely, then compare each stated reason against what your company can deliver. If your company can meet the stated requirements, submit a statement of capabilities by the closing date in the notice. It must contain enough information to show that you meet the mandatory or essential criteria.

Several ACANs state that when another supplier submits a sufficient statement of capabilities, the procurement may proceed through a competitive process. One Natural Resources Canada notice describes its named supplier as the only known supplier meeting the mandatory criteria, and says a sufficient statement of capabilities from another supplier would trigger a competitive process. Generic claims of capability will not do the job. Your response should address the specific grounds the department has given, whether those are technical criteria, authorization, or compatibility with installed equipment.

Suppliers who are named in an ACAN should also read the justification carefully, since it sets out the basis on which the department expects the award to stand.