Restricted Commodities

Restricted commodities is a procurement-administration category used in the Supply Manual of Public Works and Government Services Canada (PWGSC), now Public Services and Procurement Canada (PSPC). The manual defines the term as advertising, bulk buys for fuel and vehicles, and United States Foreign Military Sales (U.S. FMS). The definition appears in the manual's 2005 edition.

The category decides who handles a requisition inside the buying organization. When a client department's requisition concerns a restricted commodity, it is not sent to the PWGSC office the client selected. It goes to the PWGSC headquarters division or section responsible for the relevant NATO Stock Number (NSN) or Goods and Services Identification Number (GSIN) code.

The three categories the Supply Manual lists

The definition names three groups of purchases:

• Advertising: requisitions for advertising services.
• Bulk buys for fuel and vehicles: consolidated purchases of fuel and of vehicles, rather than single small orders.
• U.S. Foreign Military Sales: purchases made through the United States government's FMS arrangements.

The U.S. FMS category places one part of the list in defence-related purchasing. The manual does not state that every restricted commodity is a defence item, so the label should not be read as a defence designation.

How requisitions for restricted commodities are routed

The term sits in the part of the Supply Manual that describes exceptions to the normal allocation of requisitions. Ordinarily, a requisition goes to the PWGSC office the client department selected. Restricted commodities are the exception. Their allocation follows commodity responsibility, which the manual ties to NSN and GSIN coding.

An NSN is a NATO Stock Number, and a GSIN is a Goods and Services Identification Number. Both are classification codes that identify what is being bought. Each code has a responsible headquarters division or section, and that unit receives the requisition for a restricted commodity.

The same allocation rule is reproduced in another edition of the manual. A later archived version, the 2008 Supply Manual, keeps the rule that restricted-commodity requisitions are routed by the responsible NSN/GSIN division or section.

Restricted commodities compared with controlled goods and NATO Restricted

Two similar-sounding concepts are separate from restricted commodities.

• Controlled goods: the Supply Manual treats these separately and refers to the Export Control List and the Controlled Goods Directorate. See the 2006 edition for that treatment.
• NATO Restricted: a security-classification marking for information, covered in NATO's security policy documents. It is not a procurement category.

National-security exceptions and trade-agreement treatment are also discussed in the Supply Manual. They are related procurement topics, but they are not part of the definition of restricted commodities.

What it means for a supplier bidding on Canadian public contracts

Restricted commodities is a buyer-side routing rule. The Supply Manual definition sets no special certification, security clearance, registration or handling requirement for suppliers. A supplier selling advertising, bulk fuel or vehicles, or goods bought through U.S. FMS should expect the requisition to be handled by a headquarters commodity division instead of a regional office.

• Read the solicitation documents for the actual requirements. Obligations come from the specific solicitation, not from the category label.
• Check the GSIN on the tender notice, since the GSIN determines which PSPC unit is responsible.
• Keep controlled goods and security requirements separate in your bid planning. They are governed by different rules.