Seminar notes: How the government buys what you sell

Opportunities for smaller and diverse businesses

• Government of Canada is one of the largest buyers of goods and services in Canada
• Buys a wide range of goods and services each year, with contract values ranging from hundreds to billions of dollars
• On average, smaller businesses in Canada win the majority of the total value of contracts awarded each year

Contracting with the Government of Canada

• Public Services and Procurement Canada (PSPC) is the main procurement arm of the federal government
• It is important that all procurement activities be conducted in an open, fair and transparent manner, and that all suppliers have an equal chance at doing business with us
• Federal laws and regulations as well as Treasury Board of Canada policies guide the Government of Canada’s procurement process

Becoming a government supplier

• Register as a supplier
  • in order to sell goods or services to the government, your business needs to be registered as a supplier
  • registering your business also allows government buyers to identify potential suppliers
• Find a suitable opportunity
  • in order to find tender opportunities, search the Government Electronic Tendering Service via CanadaBuys
• Submit a bid
  • in order to bid on tender opportunities, you must understand the bidding and submission requirements described in solicitation documents (for example: security, business capacity, experience, submission method)
  • if your bid is not successful, you can access debrief, challenge and recourse options that are available to ensure a transparent process

Registering as a supplier

Register on the procurement platform(s) that apply to your goods/services:

• register in SAP Ariba
  • complete your business profile
  • view and respond to opportunities posted to the electronic procurement solution
• register in Supplier Registration Information
  • obtain your procurement business number
  • this number is currently required for bids that are not processed through SAP Ariba
• learn about registering in sourcing tools for professional services, including the Centralized Professional Services System e-Portal
• learn more about registering as a supplier

Registering to provide professional services

Buyers use a variety of purchasing methods, tools, categories and streams to issue service contracts:

• for more information to help you identify which one(s) may be suitable for your services, visit Professional services
• for most services, register in the Centralized Professional Services System
  • ProServices: A wide range of services including information technology (IT), business and project management, human resources (HR), technical, dispute resolution, health and other services below $100,000
  • Task-Based Informatics Professional Services: Specific IT services with set deliverables
  • Solutions-Based Informatics Professional Services: IT solutions including business transformation, electronic services delivery, business intelligence and network services
  • Task and Solutions Professional Services: Non-IT services including HR, business consulting, change and project management, and learning services
  • Temporary help services, up to 48 weeks in the National Capital Region (NCR). Opportunities outside the NCR are listed separately
  • Professional Audit Support Services: Services to support internal audits, funding compliance and financial accounting
• for construction, architectural and engineering services, visit CanadaBuys to register
• for linguistic services such as translation, interpretation, terminology and word processing, learn more about offering linguistic services to the Translation Bureau

Finding a suitable opportunity

Search online for tenders.

Low dollar value procurement

• Purchases below $25,000 for goods, $40,000 for services and construction, including all applicable taxes, are considered to be low dollar value procurements
• Unlike larger purchases that are done through the solicitation of bids and quotes from potential suppliers using a tendering process, low dollar value procurements are often direct purchases from vendors
• Low dollar value procurement can present an opportunity to grow your business by developing a business relationship with the Government of Canada through smaller contracts
• Learn more about low dollar value opportunities

Competitive procurement

• Procurement over $25,000 for goods, $40,000 for services and construction is done through the solicitation of bids and quotes from potential suppliers using a variety of methods
• The most common types are
  • Request for Proposal
  • Request for Standing Offer (RFSO)
  • Request for Supply Arrangement (RFSA)
• The tender notice will indicate the method of procurement being used and will outline the solicitation documents
• For more information, visit How procurement works

Standing Offers

• Standing Offers are used to meet recurring needs when departments or agencies are repeatedly ordering the same goods or services
• A RFSO is used to solicit standing offers. Suppliers who meet the evaluation criteria stated in the RFSO become pre-qualified suppliers and holders of standing offers
• A Standing Offer is an offer from a potential supplier to provide goods and/or services at pre-arranged prices, under set terms and conditions, when and if required
• It is not a contract until the government issues a “call-up” against the standing offer. The government is under no actual obligation to purchase until that time

Supply Arrangements

• Supply Arrangements are used when goods or services are bought on a regular basis but when a standing offer is not suitable because of variables in the resulting call-ups
• A RFSA is used to solicit supply arrangements. Suppliers who meet the evaluation criteria stated in the RFSA become pre-qualified suppliers and holders of supply arrangements
• Like Standing Offers, it is not a contract and neither party is legally bound as a result of signing a supply arrangement alone
• They allow client departments to solicit bids from a pool of pre-qualified suppliers for specific requirements (this differs from standing offers that only allow client departments to accept a portion of a requirement already defined and priced)

Government Electronic Tendering Service

• The official source suppliers should rely on to find Government of Canada tenders
• Easy to navigate and search for new contract opportunities as well as past contract awards
• Federal departments and agencies use Government Electronic Tendering Service to advertise their requirements
• Learn about searching for tender opportunities on CanadaBuys

Submitting your bid

Review the key steps involved in preparing and submitting a bid.

Security requirements

• A security clearance is necessary when a Government of Canada contract requires your personnel to access classified or protected information, assets or sensitive sites
• Security requirements are identified in the tender opportunity
• For questions about clearance processes and requirements, contact the Contract Security Program
• For questions about the security requirements of a specific opportunity, contact the contracting authority listed in the solicitation document
• For more information: Security requirements for contracting with the Government of Canada

Submission requirements

• Know the bid closing date and where and how to submit your bid
  • check for amendments to the closing date
  • bids will not be accepted after the date and time indicated
• Tender opportunities posted to the electronic procurement solution require bid submission through SAP Ariba
  • each procurement opportunity will clearly detail the delivery method to submit a bid
  • learn about responding to opportunities on SAP Ariba
• Ensure your proposal follows the format requested
• Sign the document and include all required signed and completed certifications
• Review your bid, then have someone else review it too
• During the evaluation process, the buyer may contact you for clarification on your bid (The evaluation or contract award process will not be delayed, so be sure you respond to any questions by the date and time stipulated in the request)

Where to start

Familiarize yourself with the key resources to get you started.

CanadaBuys: The official source for federal procurement

• CanadaBuys is the official source for Government of Canada tender and award notices
• Visit CanadaBuys to
  • search for public sector tenders and contract history
  • register as a supplier for the federal government
  • complete your business profile
  • access the electronic procurement solution to view and bid on opportunities

Open procurement data

• Knowing what buyers have bought in the past and which companies have been successful selling to them can be useful as you develop your business strategy
• Data on contracts awarded since 2009 are available on the Open Government Portal
  • download contract history data for the entire federal government through Proactive Publication (Contracts)
  • download contract history data for PSPC-managed contracts by searching for CanadaBuys on the portal
• Contract history and award notices are available through the tenders search on CanadaBuys. For instructions, refer to Searching for award notices and contract history on CanadaBuys

Procurement Assistance Canada

• Supports smaller and diverse businesses through the federal procurement process
• Engages, assists and informs businesses on how to sell goods and services to the Government of Canada
• Works to reduce barriers to ensure fairness and inclusion in the process
• Looks for opportunities to advance supplier diversity through targeted outreach and advocacy

Next steps

• Learn more about registering as a supplier
• Register for your next seminar
  • finding opportunities and registering as a supplier
  • supplying professional services to the Government of Canada
  • bidding on opportunities

For more information