Procurement review

A procurement review is a formal examination of procurement practices, processes, records or a particular acquisition. Its purpose is to assess compliance, fairness, openness, transparency, value, risk, or alignment with government objectives. In Canadian federal contracting the term is used in more than one related way, so the context decides what a given review involves.

The Office of the Procurement Ombud (OPO) defines a procurement practice review as an independent and objective examination of procurement practices within one or more federal organizations. According to the OPO guide to procurement practice reviews, these reviews assess the fairness, openness and transparency of those practices and may make recommendations for improvement.

A procurement review is not a supplier complaint or a bid challenge. A review evaluates how an organization buys. The OPO handles supplier complaints about certain contract awards and contract administration as a separate function.

Procurement practice reviews by the Office of the Procurement Ombud

The OPO uses the term for reviews of federal organizations' contracting practices. As described on the OPO reviewing page, a review examines the application of contracting policies and the processes, tools and activities used to buy goods and services. A review can cover:

• procurement policies and guidelines;
• procurement files and records;
• solicitation and bid-evaluation practices;
• contract award and debriefing;
• contract administration, amendments, payment and performance.

The organization under review has defined duties. It must identify a coordinating representative, provide requested records and access to staff, comment on the draft report, and prepare a management response and action plan. The OPO has published reviews involving the Department of National Defence, so the term applies to defence procurement as well as civilian federal purchasing.

Internal procurement compliance reviews at departments

Departments also run their own reviews as a control on individual procurements. The Canada Revenue Agency (CRA) is one example. Its Procurement Compliance Review Directive provides for mandatory reviews at the pre-solicitation, pre-award and post-award stages, as described in the CRA contract bidding and awards process audit. The directive identifies the procurements that must pass through the procurement compliance function.

This type of review is carried out inside the department. It checks that a procurement follows the rules before the solicitation is issued, before the contract is awarded, and after award.

The former Treasury Board Procurement Review Policy

The Treasury Board Procurement Review Policy used the term for an interdepartmental review of significant procurements. It was concerned with socio-economic objectives and with regional and industrial benefits. Under the policy, all procurements over $2 million had to be reviewed for potential regional and industrial benefits, and procurements generally over $20 million could be referred to a Procurement Review Committee. Procurements below $20 million were rarely referred. The policy also stated that procurements covered by GATT or NAFTA were not sent to the committee under that process. These details are set out in the Treasury Board policy record.

That record shows the policy was rescinded on October 11, 2019. Its thresholds and referral rules are historical and should not be read as a current general rule. Check the solicitation documents and the policies now in force for any live procurement.

What a procurement review means for suppliers

Most review obligations fall on the government organization, not on every supplier in a solicitation. A supplier does not run a procurement review. Still, an award or procurement process can be subject to an internal compliance review before or after the solicitation, which can shape timing and documentation requests.

Suppliers should keep three points in mind:

• A practice review looks at a department's system and may produce recommendations. It is not a route to contest a specific award.
• Supplier complaints about certain awards and contract administration go through a separate OPO process.
• Rules that applied under the former Procurement Review Policy no longer apply, so confirm current requirements in each tender notice.