Introduction
Each year the Government publishes, on the Internet, statistics on purchases
and contracts conducted in departments and agencies. The annual Purchasing
Activity Report is used to provide statistical analysis of the processes and
tools through which government contracting is conducted.
In reviewing the statistics it must be kept in mind that the federal
Government's Contracting Policy objective is to acquire goods and services and
to carry out construction in a manner that enhances access, competition and
fairness and results in best value or, if appropriate, the optimal balance of
overall benefits to the Crown and the Canadian people.
As well, contracting is to be conducted in a manner that will:
- Stand the test of public scrutiny in matters of prudence, probity,
facilitate access, encourage competition and reflect fairness in the
spending of public funds;
- Ensure the pre-eminence of operational requirements;
- Support long-term industrial and regional development and other
appropriate national objectives.
- Comply with the government's obligations under the North American Free
Trade Agreement, the World Trade Organization -Agreement on
Government Procurement, the Agreement on Internal Trade.
The Government is committed to working on strengthening and modernising
government procurement. Procurement reform is guided by modern comptrollership
and founded in Results for Canadians: A Management Framework for
the Government of Canada. This framework sets a clear direction for
renewing government management based on: citizen focus, values, results and
responsible spending. Procurement reform supports the Government's Speech from
the Throne commitments to have Government-on-Line by 2004 and to promote
business practices that will build a dynamic economy.
The procurement reform initiative centres on:
- Strengthening the government's policy framework;
- Renewing our human resources in the procurement and materiel community;
and
- Modernising our procurement practices and process.
The Government is also committed to ensuring that Canadians are provided with
appropriate information on activities in a cost-effective, efficient and
transparent manner.
Suppliers who wish to find out more about federal government bidding
opportunities should consult MERX at http://www.cebra.com/.
Those who wish to find out more about how the Government of Canada buys should
contact Contracts Canada at www.contractscanada.gc.ca.
2000 Purchasing Activity Report - Summary
2000 Purchasing Activity Report - Summary
All Departments and Agencies subject to Government
Contracts Regulations
Total Number and Value of Contracts
including Net Amendments
|
|
Contract Type
|
Solicitation Procedure
|
Number
|
% of Total Number
|
Value
$ 000
|
% of Total
Value
|
Goods
|
Contracts below $25,000, including amendments
|
298,401
|
|
480,034
|
|
Electronic bidding (Note 2.3 & 5)
|
2,108
|
|
543,493
|
|
Traditional competitive (Note 2.3 & 5)
|
2,759
|
|
903,687
|
|
ACANs (Note 2.3 & 5)
|
1,758
|
|
815,015
|
|
Competitive awards (Note 2.3)
|
6,625
|
|
2,262,195
|
|
Net amendments
|
-
|
|
485,694
|
|
Competitive including amendments
|
6,625
|
91.6%
|
2,747,889
|
87.4%
|
Non-competitive awards (Note 2.3)
|
604
|
|
235,494
|
|
Net amendments
|
-
|
|
162,428
|
|
Non-Competitive including amendments
|
604
|
8.4%
|
397,922
|
12.6%
|
Subtotal Contracts $25,000 and above
|
7,229
|
100.0%
|
3,145,811
|
100.0%
|
Total of All Goods Contracts
|
305,630
|
|
3,625,845
|
|
Proportion of All Contracts
|
|
62.9%
|
|
38.7%
|
Services
|
Contracts below $25,000, including amendments
|
160,610
|
|
634,582
|
|
Electronic bidding
|
2,780
|
|
1,238,441
|
|
Traditional competitive
|
4,893
|
|
1,163,959
|
|
ACANs
|
1,608
|
|
412,691
|
|
Competitive awards
|
9,281
|
|
2,815,091
|
|
Net amendments
|
-
|
|
1,277,754
|
|
Competitive including amendments
|
9,281
|
75.8%
|
4,092,845
|
90.6%
|
Non-competitive awards
|
2,955
|
|
318,236
|
|
Net amendments
|
-
|
|
107,267
|
|
Non-Competitive including amendments
|
2,955
|
24.2%
|
425,503
|
9.4%
|
Subtotal Contracts $25,000 and above
|
12,236
|
100.0%
|
4,518,348
|
100.0%
|
Total of All Service Contracts
|
172,846
|
|
5,152,930
|
|
Proportion of All Contracts
|
|
35.6%
|
|
55.1%
|
Construction
|
Contracts below $25,000, including amendments
|
5,896
|
|
29,101
|
|
Electronic bidding
|
709
|
|
354,304
|
|
Traditional competitive
|
880
|
|
153,493
|
|
ACANs
|
44
|
|
4,245
|
|
Competitive awards
|
1,633
|
|
512,042
|
|
Net amendments
|
-
|
|
29,016
|
|
Competitive including amendments
|
1,633
|
91.4%
|
541,058
|
98.0%
|
Non-competitive awards
|
154
|
|
10,629
|
|
Net amendments
|
-
|
|
609
|
|
Non-Competitive including amendments
|
154
|
8.6%
|
11,238
|
2.0%
|
Subtotal Contracts $25,000 and above
|
1,787
|
100.0%
|
552,296
|
100.0%
|
Total of All Construction Contracts
|
7,683
|
|
581,397
|
|
Proportion of All Contracts
|
|
1.6%
|
|
6.2%
|
All Contracts
|
Contracts below $25,000, including amendments
|
464,907
|
|
1,143,717
|
|
Electronic bidding
|
5,597
|
|
2,136,238
|
|
Traditional competitive
|
8,532
|
|
2,221,139
|
|
ACANs
|
3,410
|
|
1,231,951
|
|
Competitive awards
|
17,539
|
|
5,589,328
|
|
Net amendments
|
-
|
|
1,792,464
|
|
Competitive including amendments
|
17,539
|
82.5%
|
7,381,792
|
89.8%
|
Non-competitive awards
|
3,713
|
|
564,359
|
|
Net amendments
|
-
|
|
270,304
|
|
Non-Competitive including amendments
|
3,713
|
17.5%
|
834,663
|
10.2%
|
Subtotal Contracts $25,000 and above
|
21,252
|
|
8,216,455
|
|
|
Total Contract Awards including Net Amendments
|
486,159
|
100.0%
|
9,360,172
|
100.0%
|
|
Variance
|
|
532
|
0.109%
|
4,215
|
0.045%
|
|
|
Adjusted Total Awards including Net Amendments
|
486,691
|
|
9,364,387
|
|
|
Notes to 2000 Purchasing Activity Report
1. Objective
The objective of the annual Purchasing Activity Report and its preliminary
version is to provide a basic snapshot of purchasing activities of the
Government of Canada. It is based on the Government of Canada's policy framework
in effect in 2000. It is important to note that there is no statutory
requirement for such a report. It complements information found on contract
statistics on Contracts Canada web site found at www.contractscanada.gc.ca.
Further information on contracting and contracting activities may be found for
major purchasing departments in the Government's public and Parliamentary
reporting documents, specifically their Annual Report on Plans and
Priorities and Departmental Performance Reports. Internal
departmental audits on the contracting function are posted on http://www.tbs-sct.gc.ca/rma/database/aeve_e.asp.
Information on the Procurement Strategy for Aboriginal Business can be found
at the Department of Indian Affairs and Northern Development web site http://www.ainc-inac.gc.ca/index_e.html.
The Purchasing Activity Report was derived from data provided by the
reporting entities specified below. Since the data is not audited, no warranty
or other legal assurance as to the truth, accuracy or completeness of any of
this information is stated or can be implied. Any person making use of this
information for any purpose whatsoever does so entirely at his/her own risk, and
the Crown shall have no liability whatsoever. This report covers government
purchasing activities for the period January to December 2000 inclusive.
2. Procurement Policy Framework
The main features of the Government of Canada's procurement policy framework
in effect in 2000 that are relevant to the Preliminary Purchasing Activity
Report are as follows:
2.1 The objective of government procurement contracting is to acquire goods
and services and to carry out construction in a manner that enhances access,
competition and fairness and results in best value or, if appropriate, the
optimal balance of overall benefits to the Crown and the Canadian people.
2.2 Government contracting shall be conducted in a manner that will:
(a) stand the test of public scrutiny in matters of prudence and probity,
facilitate access, encourage competition, and reflect fairness in the spending
of public funds;
(b) ensure the pre-eminence of operational requirements;
(c) support long-term industrial and regional development and other
appropriate national objectives, including aboriginal economic development;
(d) comply with the government's obligations under the North American
Free Trade Agreement, the World Trade -Agreement on Government
Procurement and the Agreement on Internal Trade.
2.3 Appendix A of the Treasury Board Contracting Policy defines a competitive
contract as a contract where the process used for the solicitation of bids
enhances access, competition and fairness and assures that a reasonable and
representative number of suppliers are given an opportunity to bid by:
EITHER
(A) giving public notice, using electronic bidding methodology, possibly
supplemented by traditional bidding procedures, of a call for bids for a
proposed contract or of an intention to award a contract to a pre-selected
contractor (a directed contract advertised by an Advance Contract Award Notice
-ACAN), in accordance with limited tendering reasons set out in international
trade agreements, or in accordance with non-competitive tendering reasons set
out in sections 506(11) and 506(12) of the Agreement on Internal Trade,
or in accordance with non-competitive tendering reasons set out in section 6
(excluding section 6.1) of the Government Contracts Regulations (GCRs)
and where
- in the case of a call for bids, the lowest bid or the bid that offered the
best value, as set out in the evaluation criteria in the bid solicitation
and as determined by the contracting authority, was accepted;
- in the case of a call for bids where only one bid, compliant with
mandatory criteria set out in the bid solicitation was received, fair value
to the Crown, as determined by the contracting authority, was obtained; or
- in the case of an ACAN, no valid indications of interest or valid
challenges to the proposed award were received within the prescribed period
of no less than 15 calendar days.
OR
(B) giving public notice, using traditional bidding procedures (such as a
suppliers' list, etc.) and in a manner that is consistent with generally
accepted trade practices, of a call for bids for a proposed contract,
and where
- in the case of a call for bids, the lowest bid or the bid that offered
best value, as set out in the evaluation criteria in the bid solicitation
and determined by the contracting authority, was accepted, or
- in the case that only one bid, compliant with the mandatory criteria set
out in the bid solicitation was received, fair value to the Crown, as
determined by the contracting authority, was obtained.
2.4 Section 6 of the Government Contracts Regulations specifies that
a contracting authority may enter into a contract without soliciting bids where
(a) the need is one of pressing emergency in which delay would be injurious
to the public interest;
(b) the estimated expenditure does not exceed
(i) $25,000,
(ii) $100,000, where the contract is for the acquisition of
architectural, engineering and other services required in respect of the
planning, design, preparation or supervision of the construction, repair,
renovation or restoration of a work, or
(iii) $100,000, where the contract is to be entered into by the member of
the Queen's Privy Council for Canada responsible for the Canadian
International Development Agency and is for the acquisition of
architectural, engineering or other services required in respect of the
planning, design, preparation or supervision of an international development
assistance program or project;
(c) the nature of the work is such that it would not be in the public
interest to solicit bids; or
(d) only one person is capable of performing the contract.
3. Reporting Entities
The reporting entities targeted in the report are the contracting
authorities, as defined in the Government Contracts Regulations and the
Financial Administration Act (FAA):
A. The appropriate Minister, as defined in paragraph (a), (a.1) or (b) of the
definition "appropriate Minister" in section 2 of the FAA, as follows:
(a) with respect to a department named in Schedule I, the Minister
presiding over the department,
(a.1) with respect to a division or branch of the public service of
Canada set out in column I of Schedule I.1, the Minister set out in column
II of that Schedule,
(b) with respect to a commission under the Inquiries Act, the
Minister designated by order of the Governor in Council as the appropriate
Minister.
B. A departmental corporation named in Schedule II to the FAA, or
C. The National Capital Commission (listed in Schedule III).
In accordance with subsection 41(2) of the Financial Administration Act,
the Government Contracts Regulations do not apply to Canada Customs and
Revenue Agency. However, the agency has voluntarily provided data on its
purchasing activity in year 2000.
4. Exclusions under Government Contracts Regulations
The Government Contracts Regulations apply to all contracts except
(a) a contract entered into by the National Film Board;
(b) a contract for the construction of buildings entered into under the Veterans'
Land Act;
(c) a contract entered into under the Indian Act that involves
Indian moneys as defined in that Act;
(d) subject to section 4 of those Regulations, a contract for the
performance of legal services entered into by or under the authority of the
Minister of Justice, or
(e) a contract for the fit-up of an office or a residential accommodation
where the contract for the fit-up is part of a transaction authorized pursuant
to the Federal Real Property Act or its Regulations made
thereunder.
(f) arrangements entered into under an Interchange Canada Agreement.
In addition, the Treasury Board (TB) has given approval to exempt the
Canadian Security Intelligence Service from TB reporting requirements.
5. Definition of Terms
The Government's Contracting Policy includes a series of definitions that
serve as the basis for the categories found in the report.
-notification through the open bidding methodology of the intent to award a
directed contract.
-a method of procurement that promotes suppliers' access to, and transparency
in, the procurement process and facilitates the Crown's receipt of best value,
by using:
(a) public notice by means of an approved electronic information service of
procurement opportunities (e.g., MERX);
(b) public notice by means of an electronic information service of proposed
directed procurements by means of an Advance Contract Award Notice (ACAN);
(c) public notice in the "Government Business Opportunities"
publication; or
(d) such other procurement methods as may be approved by the Treasury
Board.
-a method of procurement that involves giving public notice, using
traditional bidding procedures and in a manner that is consistent with generally
accepted trade practices, of a call for bids for a proposed contract.
6. Amendments
In 2000, the total value of positive amendments (i.e., those that result in
an increase in the contract value) was $2,391.7 million. The total value of
negative amendments (i.e., those that result in a decrease in the contract
value) was $240.8 million. The total value of net amendments was $2,150.9
million.
7. Acquisition Cards
The above data do not include transactions using acquisition cards. Those
cards are normally used only for low dollar value purchases. In 2000, there were
an estimated 1.4 million acquisition card transactions for a total value of
about $474.6 million.
8. Other Excluded Items
The data do not include expenditures for travel, hotel accommodation,
hospitality and petty cash.
|