Minimum Essential Requirements

Minimum Essential Requirements (MERs) are the baseline qualifications, capabilities, or specifications that a bidder must meet to be considered for a government contract. Think of them as the pass/fail criteria that separate viable suppliers from those who don't make the cut. According to PSPC's assessor guidance, "mandatory evaluation criteria identify the minimum requirements that are essential to the successful completion of the work." If you don't meet these, your proposal doesn't move forward—regardless of how competitive your pricing might be.

How It Works

When federal contracting authorities develop a solicitation, they establish MERs based on what's genuinely necessary to deliver the work successfully. This connects directly to the requirement definition phase outlined in the Supply Manual's Chapter 5 and Section 6B. You'll typically see these expressed as mandatory criteria in the evaluation section of an RFP or supply arrangement.

Here's the thing: setting appropriate MERs requires careful judgment. They need to be restrictive enough to ensure capable suppliers, but not so stringent that they eliminate competition unnecessarily. For instance, when CFTA procurement thresholds apply—$25,000 or greater for goods and $100,000 or greater for services—you might encounter experience requirements, but only "if essential to meet the requirements of the procurement." That language matters. You can't demand ten years of experience when five would do.

In practice, MERs often cover technical capabilities, security clearances, financial capacity, or past performance thresholds. Take the example from PSPC's recent procurement practice review, where suppliers needed to demonstrate a combined minimum value of $10 million in prior contracts. That's a substantial barrier that directly reflects the scale and complexity of the work involved. Similarly, when dealing with professional services under arrangements like CPSS, minimum experience criteria must align with Flexible Grid levels—you can't ask for less than five years of experience if that's the grid requirement for the position level you're staffing.

Key Considerations

• MERs are non-negotiable: Unlike point-rated criteria where suppliers can score higher or lower, these are binary. You either meet them or you're out.

• Justification is essential: Every MER you establish must tie directly to operational necessity. Treasury Board's contracting policy framework requires that mandatory criteria be defensible and not artificially restrict competition.

• Documentation requirements vary: Some MERs require detailed proof (certifications, financial statements, past performance reports), while others may be satisfied through declarations. Be clear about what evidence you need upfront.

• Watch for unintended barriers: Setting MERs too high can exclude qualified small and medium enterprises or Indigenous businesses, potentially conflicting with broader procurement objectives around diversity and competition.

Related Terms

Mandatory Criteria, Evaluation Criteria, Statement of Work (SOW), Request for Proposal (RFP)

Sources

• Assessor guidance for supply arrangement requirements – Public Services and Procurement Canada

• Chapter Five - Government Procurement – Canadian Free Trade Agreement

• Procurement practice review of Public Services and Procurement Canada – Office of the Procurement Ombudsman

The key takeaway? Set your MERs thoughtfully and defend them with clear operational rationale. They're your quality gate, but they shouldn't become an artificial barrier to fair competition.