Pre-Qualification Process

A pre-qualification process is a preliminary stage in a procurement. Buyers use it to assess suppliers and shortlist them before inviting them to submit a tender, negotiate, or move to the next stage of the competition. It commonly relies on a pre-qualification questionnaire (PQQ), which collects information about a supplier's eligibility, capacity, capability and experience.

The process is used in defence and other public procurement, particularly for restricted, competitive negotiated and competitive dialogue procedures. Its purpose is to limit participation to suppliers that meet the selection or capability criteria set by the buyer. Pre-qualification is a screening step. It does not award a contract on its own.

How a pre-qualification questionnaire is used

The UK Ministry of Defence describes PQQs as a means of pre-selecting the companies that will be invited to compete for a requirement. Its procurement process guidance lists the PQQ as an early stage that comes before suppliers are invited to tender.

UK defence guidance on supplier selection describes the task as choosing, from the potential suppliers that request participation, those who will be invited to tender or negotiate. The same guidance states that procurers normally carry out supplier selection using a PQQ.

Pre-qualification in restricted and dialogue procedures

In defence procurement, pre-qualification is tied to procedures that do not open the final competition to everyone. The UK guidance on procurement procedures describes a pre-qualification process in which bidders are shortlisted before they receive an invitation to participate in dialogue.

A defence procurement notice describes the stage in similar terms. The buyer assesses which suppliers are best capable of delivering the required services, then invites the successful suppliers to the next stage. Related terms include supplier selection, shortlisting, condition of participation, invitation to tender (ITT) and invitation to participate in dialogue (ITPD).

Pre-qualification for PSPC Task and Solutions Professional Services

Public Services and Procurement Canada (PSPC) uses a pre-qualification process for its Task and Solutions Professional Services (TSPS) supply arrangements. Suppliers access the request for supply arrangement (RFSA) documents through CanadaBuys, review the mandatory requirements, and submit an online response through the Centralized Professional Services System (CPSS) ePortal. PSPC explains the steps in its guidance on becoming pre-qualified.

PSPC then evaluates the submitted responses and awards a supply arrangement when a response is responsive. Being pre-qualified establishes a supplier's eligibility for the arrangement. It is not necessarily an award of a specific task or contract. Further guidance sits on the TSPS guidance for suppliers page.

What a pre-qualification stage does not do

A pre-qualification stage decides which suppliers may proceed to a later competition stage. It does not by itself award the contract. A supplier that passes pre-qualification is eligible to compete or to be considered for work, but the buyer still runs the tender, negotiation or dialogue that follows.

What it means for a supplier bidding on Canadian public contracts

Treat pre-qualification as its own bid, with its own requirements and deadline. PSPC's guidance, which is also published on its professional services pages, expects a supplier to take four steps:

• Obtain the current solicitation documents and any amendments.
• Meet the mandatory criteria.
• Complete the required response.
• Submit it in the manner and by the deadline specified in the RFSA.

A response that misses a mandatory criterion or arrives late does not move forward. Once a supply arrangement is in place, expect to compete for individual tasks and contracts rather than receive them automatically.