Original Equipment Manufacturer (OEM)

An Original Equipment Manufacturer (OEM) is the manufacturer that originally produced a piece of equipment, a component or a part, or a manufacturer recognized as its authorized source. In Canadian defence solicitations, the term identifies the principal manufacturer whose part numbers, specifications, certificates or authorized distribution chain establish that an item is authentic and conforms to the requirement. The abbreviation is spelled out in Department of National Defence (DND) solicitation documents on CanadaBuys.

The abbreviation is common in defence logistics, aviation, marine procurement, spare-parts purchasing and maintenance contracts. Bid teams see it most often in DND requests for proposals for replacement parts, where OEM status shapes which goods Canada will accept and what proof a bidder must supply.

OEM certificates of conformance and authenticity

Defence solicitations ask bidders to back up their goods with documents that come from the OEM. For certain military-unique aviation replacement parts, the requirement is an OEM or OEM-approved manufacturer's certificate of conformance. The certificate must identify the item and provide specified technical information, as set out in a DND aviation parts solicitation.

A different DND solicitation can require a certificate of authenticity from the OEM. That certificate states that the proposed goods were obtained from an authorized distributor, which makes the distribution chain part of the evidence. The wording appears in a DND spares solicitation.

Parts not made by the aircraft OEM

Where a part is not made by the aircraft OEM, a solicitation can limit the acceptable sources. The part may need to come from an OEM-authorized supplier, from the original manufacturer selected by the aircraft OEM, or from a successor or licensee. The same aviation parts solicitation sets out these source options.

Some DND solicitations also require new-production material supplied by the principal manufacturer or its accredited agent. The material must conform to the applicable current drawing, specification or part number.

Equivalent products and replacement OEM part numbers

Canada may accept an equivalent product or a replacement OEM part number instead of the exact item named in the solicitation. It assesses that proposal before accepting it, as described in a DND spare-parts request for proposals.

• Sample: Canada can request a sample to determine whether the proposed product matches the specified item in form, fit, function, quality and performance, as in this solicitation.
• OEM letter: A bidder may have to provide a letter on OEM letterhead confirming that a replacement part number has the same form, fit, function and quality as the part it replaces.

OEM status in direct procurement decisions

OEM status also appears in Public Services and Procurement Canada (PSPC) procurement-strategy guidance. When a department considers a direct procurement based on exclusive intellectual-property rights or exclusive authorization, the guidance identifies the OEM, or a sole-authorizer value-added reseller, as the party in question. The reference is in the Supply Manual annexes to Chapter 3.

Contracts for defence supplies can also carry defence-contract clauses under the Defence Production Act. The client's technical authority determines whether a requirement qualifies as a defence contract, according to CanadaBuys guidance on defence contracts and defence supplies.

What OEM status means for a supplier bidding on Canadian public contracts

Read the solicitation to see how it uses OEM. Check whether it requires a certificate of conformance, a certificate of authenticity, or supply through an authorized distributor. If you are not the OEM, confirm your source against the permitted options before you bid.

• Identify the exact part number and any replacement OEM part numbers named.
• Obtain OEM letters or certificates early, since they come from a third party.
• Prepare for a sample request if you propose an equivalent product.
• Confirm that material is new production if the solicitation calls for it.

A bid that proposes an equivalent or alternate source without the required OEM evidence gives Canada no basis to assess equivalence.