Vendor

In Government of Canada procurement, a vendor is any person or other legal entity that has submitted a bid, offer or arrangement, or that has been awarded a contract, standing offer or supply arrangement. The definition appears in the Code of Conduct for Procurement, published by Public Services and Procurement Canada (PSPC).

The term covers both stages of a buying relationship. A business is a vendor when it responds to a solicitation, and it remains a vendor once it wins an award. The Code of Conduct applies to vendors and their subcontractors that respond to bid solicitations or provide goods and services to Canada.

How the Code of Conduct defines a vendor

The federal definition is deliberately broad. It names a person or other legal entity, so sole proprietors, corporations and partnerships all fall within it. It then lists two triggers: submitting a bid, offer or arrangement, or being awarded a contract, standing offer or supply arrangement. Meeting either one makes the party a vendor.

The Canada Revenue Agency (CRA) uses the same general definition in its Supplier Code of Conduct when the CRA is the procurement authority. A vendor in a CRA solicitation is therefore an entity that submits a bid, offer or arrangement, or one that receives a contract, standing offer or supply arrangement.

Vendor, supplier and contractor in federal documents

Federal materials use the words vendor, supplier and contractor for parties that offer or provide goods and services. The precise meaning depends on the policy, code or solicitation in front of you. When a document uses "vendor" as a defined term, the definition in that document governs.

The Code of Conduct also extends responsibility beyond the vendor itself. It reaches subcontractors and other persons or affiliated entities involved in performing contractual tasks. A prime vendor should treat the Code as a requirement that flows down to the whole delivery team.

Where vendors meet the federal buying process

Vendors enter the federal process through several channels:

• Tender and award notices: PSPC's guidance identifies CanadaBuys as the official source for Government of Canada tender and award notices. Suppliers seeking federal opportunities must register as suppliers and monitor the applicable notices.
• Competitive solicitations: Above the low-dollar-value thresholds, federal buyers generally request bids or quotations from potential suppliers through various methods, as outlined in how the government buys.
• Standing offers: According to PSPC's page on supplying services, a standing offer is an offer from a potential supplier to provide goods or services at pre-arranged prices and under set terms and conditions when and if required. A party that submits such an offer is a vendor under the federal definition.

Federal guidance on low-dollar-value procurement says government buyers may purchase directly from vendors in these cases. It sets the thresholds at below $25,000 for goods and below $40,000 for services and construction, including applicable taxes.

What vendor status means for your bids

You become a vendor in the federal sense when you submit a bid, not only when you win. The Code of Conduct can apply from the moment you respond to a solicitation, so read its requirements before you submit.

If you use subcontractors, expect the Code to apply to them as well. Confirm that each one understands the obligations that come with the work. Check each solicitation for its own definitions, because the applicable policy, code or solicitation sets the exact meaning of vendor, supplier and contractor. Monitor CanadaBuys for notices so your business is positioned to respond when an opportunity is posted.