Procurement Ombudsman

When a supplier believes they've been treated unfairly in a federal procurement process, the Office of the Procurement Ombudsman offers an independent avenue for review—particularly for contracts below the thresholds where the Canadian International Trade Tribunal (CITT) has jurisdiction. This office acts as a fairness watchdog, but with persuasive power rather than enforcement teeth.

How It Works

The Procurement Ombudsman operates under two main mandates. First, they review supplier complaints about contract awards valued below the monetary thresholds set out in applicable trade agreements. These are the contracts where you can't escalate to CITT for a binding decision. According to the Directive on the Management of Procurement, the office assesses whether federal organizations followed proper procedures and treated suppliers fairly, then issues non-binding recommendations for improvements.

Second, the office conducts broader procurement practice reviews of federal departments and agencies. They examine entire procurement systems at organizations like Public Services and Procurement Canada (PSPC), the Department of National Defence, or Shared Services Canada to evaluate fairness, openness, and transparency. When the Ombudsman reviewed PSPC's procurement practices in 2023, for instance, they assessed how well the department followed guidance in the Supply Manual—the authoritative reference for federal procurement procedures.

The Ombudsman can also provide alternative dispute resolution services when both parties to a contract agree to it. If you're in a dispute over contract interpretation after award, this can offer a faster, less adversarial path than litigation. The catch? Both sides need to opt in voluntarily.

Key Considerations

• No binding authority: Unlike CITT, the Ombudsman cannot force departments to change their decisions or award you a contract. Their recommendations carry moral and political weight, but departments can—and sometimes do—decline to implement them fully.

• Threshold matters: You need to understand where CITT jurisdiction ends and the Ombudsman's begins. For contracts above trade agreement thresholds, CITT is your avenue for binding remedies. Below those thresholds, the Ombudsman is essentially your only formal recourse.

• Timing is different: CITT has strict filing deadlines—typically 10 working days. Complaint timelines for the Ombudsman are more flexible. You still want to act promptly, but you're not facing the same immediate deadlines that can catch suppliers off guard.

• Small-value contracts get attention: Recent commitments have included reviewing procurement processes below $25,000, an area often overlooked in formal oversight but where many suppliers experience problems with contracting authorities.

Related Terms

Canadian International Trade Tribunal (CITT), Contracting Authority, Trade Agreement Thresholds

Sources

• Directive on the Management of Procurement - Treasury Board of Canada Secretariat

• Supply Manual - Government of Canada

• Procurement Practice Review of PSPC - Office of the Procurement Ombudsman

If you're considering filing a complaint, weigh whether you're seeking systemic change and transparency improvements, or whether you need binding relief that only CITT can provide. The Ombudsman's real value lies in shining light on unfair practices and pushing cultural change across federal procurement.