Procurement Ombudsman

The Procurement Ombudsman is an independent and neutral Government of Canada office that helps resolve contracting disputes between businesses and the federal government. It is also known as the Office of the Procurement Ombud (OPO). The Government of Canada describes it as a neutral and independent organization on its Procurement Ombud page.

The office was established through the Federal Accountability Act and related amendments to the Department of Public Works and Government Services Act. It is legislated to review the procurement practices of federal organizations, review complaints from Canadian suppliers and provide dispute-resolution services, as set out in the Public Services and Procurement Canada corporate information. It operates at arm's length from the federal organizations whose procurement it reviews.

The three functions of the Procurement Ombud

The Treasury Board Directive on the Management of Procurement assigns the office three areas of responsibility:

• Practice reviews: reviewing the procurement practices of federal organizations for fairness, openness and transparency, and making recommendations to improve them.
• Supplier complaints: reviewing complaints about the award of certain contracts for goods and services below the monetary thresholds in applicable trade agreements.
• Dispute resolution: providing alternative dispute resolution for disagreements over contract terms, when each party to the contract asks for it.

Complaints about contract awards below trade-agreement thresholds

A supplier can ask the office to review a complaint about how a federal contract was awarded when the contract value falls below the applicable trade-agreement thresholds. Contracts above those thresholds are handled through other channels, so the value of the contract determines whether the office can take the complaint.

Federal guidance on the applicability of the Procurement Ombudsman's mandate identifies thresholds of $25,000 for goods and $100,000 for services under the former Agreement on Internal Trade. Suppliers should confirm the threshold that applies to their own procurement, since the guidance refers to the former agreement.

Contract administration disputes and alternative dispute resolution

The office's role does not end when a contract is awarded. It may review complaints about the administration of a federal contract, including disputes about the interpretation or application of the contract's terms and conditions. Typical subjects are disagreements over what a clause requires of either party once work is under way.

The office also offers alternative dispute resolution. This process is available at the request of each party to the contract. It gives the supplier and the federal department a neutral, structured way to work through a disagreement without going to court. Because both parties must request it, the department has to agree to take part.

Limits on the office's authority

The office makes recommendations. It does not issue orders. Its recommendations are non-binding, and departments are not required to participate in its services in every circumstance, as the portfolio overview in the ministerial transition materials explains. Its mandate covers federal organizations, so it applies to a particular procurement only where the organization and the circumstances fall within that mandate.

What the Procurement Ombudsman means for suppliers

If you bid on federal contracts, the Procurement Ombudsman is an independent avenue for concerns that fall within its mandate. Check the contract value against the thresholds before filing an award complaint, because eligibility depends on it. If a dispute arises during performance, you can raise a complaint about contract administration or request dispute resolution. Keep your records of the solicitation, your bid and any correspondence with the department. Since recommendations are non-binding and the department must agree to dispute resolution, treat the office as one option alongside direct discussion with the contracting authority.