Statement of Capabilities

In Canadian federal procurement, a Statement of Capabilities is a written document that a supplier submits to demonstrate it can meet the requirements described in an Advance Contract Award Notice (ACAN). It must clearly show how the supplier meets each advertised requirement, as stated in CanadaBuys ACAN language.

An ACAN is a public notice that a department or agency intends to award a contract to a pre-identified supplier. The notice also lets other suppliers signal their interest by submitting a statement of capabilities, as shown in an Agriculture and Agri-Food Canada notice. The statement is the supplier's formal way to challenge the proposed direct award.

What a Statement of Capabilities must contain

The Treasury Board Secretariat sets out two core conditions in its ACAN guidance. The statement must be submitted in writing within the period specified in the ACAN. It must also include documentation that clearly demonstrates the supplier meets the requirements in the notice.

• Submit the statement in writing.
• Send it to the contracting authority or contact named in the ACAN.
• Deliver it before the stated closing date and time.
• Explain, with supporting documentation, how you meet each advertised requirement.

Public Works and Government Services Canada (PWGSC) notices use the same wording. A PWGSC tender notice on CanadaBuys asks suppliers to provide a written statement by the closing date that clearly demonstrates compliance with the advertised requirements.

How the statement works inside the ACAN process

The ACAN process lets a department announce its intention to award a contract without a conventional competitive solicitation. The statement of capabilities is the check on that intention. It gives the market a defined window to show that the pre-identified supplier is not the only one able to deliver.

The process is available to federal departments and most federal agencies, according to the Office of the Procurement Ombudsman. Notices cover goods, services and construction services, and they appear in defence and specialized procurement as well. National Defence, for example, used an ACAN for AN/SSQ-36B bathythermograph sonobuoys and invited suppliers to submit statements demonstrating that they met the requirements.

What happens after the closing date

The outcome depends on what the department receives. The Office of the Procurement Ombudsman states that if statements of capabilities meet the ACAN requirements, the department or agency must proceed to a full solicitation process. If no valid statements are received during the applicable period, the contract may be awarded to the pre-identified supplier.

The Treasury Board Secretariat guidance describes the same result. When a statement provides sufficient information that a supplier can meet the requirements, the department may proceed to an electronic or traditional competitive bidding process. A statement that fails to demonstrate compliance does not stop the proposed award.

What it means for a supplier bidding on Canadian public contracts

A statement of capabilities is your only route to contest an ACAN, so treat it as a compliance document. Read the notice and list every advertised requirement. Answer each one directly and attach the evidence that proves it. A general company brochure does not meet the standard of clearly demonstrating how you meet the requirements.

Watch the closing date and time, and send the statement to the contact named in the notice. A late statement or one that does not show compliance leaves the department free to proceed with its intended award. A statement that does show compliance can move the requirement into a competitive process where you can bid.