Procurement process

The procurement process is the end-to-end process of acquiring goods or services. It starts when an organization identifies an unmet business need and ends with contract completion and closeout. This is how NATO's procurement manual defines it.

In Government of Canada usage, the term covers four phases: pre-contractual activities, contracting from bid solicitation to contract award, contract administration, and post-contractual closeout. The Office of the Procurement Ombudsman describes the federal process this way. Departments and agencies label the stages differently, but each describes the same journey from a requirement to a completed contract.

The four phases of the federal procurement process

The federal process is divided into four phases, and each one has its own activities and responsibilities.

• Pre-contractual: the work done before a solicitation goes out.
• Contracting: the period from bid solicitation to contract award.
• Contract administration: the management of the contract once it is awarded.
• Post-contractual: the closeout of the contract.

Public Services and Procurement Canada (PSPC) explains that federal competitive procurement above specified thresholds is conducted by soliciting bids or quotations from potential suppliers. Different solicitation methods are used depending on the requirement. Its guide to understanding the procurement process introduces this for businesses.

How federal departments describe the stages

Departments adapt the same sequence to their own audit and management language. The Canada Revenue Agency describes five stages: requirements definition, contract bid solicitation, contract award, contract administration, and post-contract activities. Its contract bidding and awards process audit sets these out.

Transport Canada uses four phases: planning, contract award, contract management, and contract closeout. This appears in its audit of IM/IT procurement. Related terms you will see across these documents include requirements definition, procurement planning, bid solicitation, contract award, contract administration, and contract closeout.

The procurement process in NATO procurements

NATO bodies use the term in the same way. The NCI Agency states that its procurement process has five phases. The first is the announcement of a competition, and the last is contract closeout.

NATO's competitive procurement procedure sets minimum rules and standards. It also sets out the rights and responsibilities of the procurement authority and of vendors through contract signature. NATO guidance treats procurement as continuing through completion and closeout, not ending at signature.

What the procurement process means for a supplier bidding on Canadian public contracts

A supplier takes part in the process at the contracting phase and carries on through administration and closeout. PSPC's supplier guidance on bidding opportunities lists the core bidding steps: review the solicitation, decide whether to bid, collect bid information, prepare the bid, and submit it.

If a bid is successful, the work continues. The supplier performs the contract and meets the administration, delivery, payment, amendment, and closeout requirements. Because organizations name and divide the stages differently, suppliers should read each solicitation closely to see how that buyer structures its process.