3. Chapter 3 - Procurement Strategy

1. A procurement strategy defines in general terms how a good, service, or construction will be procured, and will include, at the highest level, the determination to proceed competitively or non-competitively and applicable details in support of industrial and regional benefits or other national objectives. The strategy could be quite straightforward, such as the decision to use a standing offer, or could be more detailed, which would be used for major projects.
2. The development of a procurement strategy begins with the first meeting between Public Works and Government Services Canada and the client, and often even before this point. It is the most important step in the procurement process as it influences the scope of the requirement and determines the extent of competition.
3. In developing the procurement strategy, the guiding principles described in 1.10.5 Guiding Principles must be taken into consideration. Specifically, the procurement strategy must satisfy the client's operational requirements and comply with legal requirements, while achieving best value, and advancing national objectives.

1. Before determining a new method of supply for the requirement, the contracting officer should first ensure that the good or service is not already available from an existing procurement instrument. Clients should be encouraged to use mandatory or non-mandatory standing offers/supply arrangements to satisfy their requirements, whenever possible. A list of standing offers and other instruments is available from the Standing Offer Index (SOI).
2. The Standing Offer Coordination Office provides information associated with the administrative aspects of standing offers and other procurement instruments, including:
   1. facilitate the exchange of information on standing offers and supply arrangements between Public Works and Governments Services Canada ( PWGSC) and clients;
   2. prepare, update and coordinate the distribution of indices of all National Master Standing Offers (NMSOs), Departmental Individual Standing Offers (DISOs), Regional Master Standing Offers (RMSOs) and supply arrangements;
3. Federal government employees who require additional information or assistance with locating standing offer information can contact the PWGSC Acquisitions Services Support Desk, Business Operations and Service Management, by phone at 819-956-3325 or 1-866-664-6609.
4. Suppliers requiring additional information on standing offers and supply arrangements can contact the Office of Small and Medium Enterprises InfoLine at 1-800-811-1148, or by email at: bpmeclient-osmeclient@tpsgc-pwgsc.gc.ca.

1. The Government Contracts Regulations (GCRs) require the solicitation of bids before any contract is entered into, though the GCRs do provide for exceptions to soliciting of bids.
2. Whenever possible, contractors must be selected using a competitive process. The flexibility to depart from this approach depends on the procurement framework being followed. The type of competitive solicitation that may be used will also depend on the procurement framework.
3. It is the contracting officer's responsibility to select the most effective process for notifying suppliers of an opportunity by taking into consideration the requirements of the trade agreements and the policies set out in the Supply Manual.
4. For procedures relative to public advertisement and for publication of a Notice of Proposed Procurement and posting solicitation documents, see 4.75.10 Public Advertisement to 4.75.25 Procedures for Posting Solicitation Documents on GETS. For procurements not publicly advertised, see 4.75.45 Use of Source Lists. For more information on trade agreements, see 3.50 Procurements Subject to Trade Agreements.

1. In all instances where bids are not solicited, the legal authority to use an exception to soliciting bids must be fully justified by the client department with a reference to the applicable exception to competitive bidding which may apply under the Government Contracts Regulations (GCRs) of the Financial Administration Act (FAA), and the limited tendering provisions of Canada's national and international trade agreements. Contracting officers are also reminded to take into account the procurement provisions under the Comprehensive Land Claims Agreements (CLCAs).
2. The GCRs require the solicitation of bids before any contract is entered into. However, contracts may be entered into without soliciting bids when:
   1. The need is one of pressing emergency in which delay would be injurious to the public interest (GCRs 6.(a));
      Note: A pressing emergency may be an actual or imminent life-threatening situation, a disaster which endangers the quality of life or has resulted in the loss of life, or one that may result in significant loss or damage to Crown property. See 3.22 Emergency Requirements (Public Works and Government Services Canada as Contracting Authority) for further instructions on Emergency Requirements.
   2. The estimated expenditure does not exceed,
      1. $25,000;
      2. $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;
      3. $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; GCRs 6.(b))
   3. the nature of the work is such that it would not be in the public interest to solicit bids; or GCRs 6.(c));
   4. only one person is capable of performing the contract GCRs 6.(d)).
   The exception should only be invoked where patents, copyright requirements, or technical compatibility factors and technological expertise suggest that only one contractor exists.
3. There is a need to provide more rigor when invoking exception 6.(d) of the Government Contracts Regulations (GCRs) where only one person is capable of performing the contract. When invoking exception 6.(d) for procurements above $25K, the questions found in Annex 3.1: Treasury Board Questions for Sole Source must be answered by the contracting officer with the assistance of the client department. The answers to these questions must be appended to the approval documents and placed on the procurement file (see 6.5.5.1 CPAA Instructions and Annex 6.2: Contract Request Instructions.
4. With respect to the trade agreements, contracting officers may award a contract without soliciting bids, only if one or more of the limited tendering reasons stated in each applicable trade agreement can be applied. The relevant articles are as follows:
   1. North American Free Trade Agreement (NAFTA) Article 1016: Limited Tendering Procedures;
   2. World Trade Organization Agreement on Government Procurement (WTO-AGP) Article XV: Limited Tendering;
   3. Agreement on Internal Trade (AIT) Article 506: Procedures for Procurement, paragraphs 11 and 12.
   Note 1: A copy of these limited tendering reasons are provided in Annex 3.2: Limited Tendering Reasons contained in the Trade Agreements.
   Note 2: In general, the Supply Manual refers only to NAFTA and the WTO–AGP, as the procedural requirements of the other international trade agreements will be fulfilled following compliance to the procedural requirements of NAFTA and the WTO–AGP. See 1.25.16 Bilateral Free Trade Agreements.

1. Early in the process, contracting officers should develop a procurement schedule for the entire procurement cycle in consultation with the client. The following, as applicable, must be taken into consideration:
   1. review and analysis of the client's requirements;
   2. time for Request for Information process;
   3. the Procurement Review Committee process;
   4. assessment/approval for the use of a fairness monitor;
   5. approval of the Procurement Plan or the Contract Planning and Advance Approval;
   6. solicitation documents preparation;
   7. translation requirements;
   8. the time required for the preparation of and the receipt of bids, offers or arrangements, including site visits and bidders conference, if applicable;
   9. bidding period, and extensions;
   10. technical evaluation period;
   11. financial evaluation;
   12. benchmarking or other pre-award testing;
   13. recommendations from legal and financial reviews;
   14. the evaluation process;
   15. the requirement for negotiation;
   16. the obtaining of security clearances;
   17. the level of approval required;
   18. approval document preparation;
   19. any other item that might contribute to the time to complete the procurement.
2. In the normal course of events, final draft submissions must be received by the Treasury Board Secretariat (TBS) seven weeks before being scheduled on a Treasury Board (TB) agenda.
3. Overall, the contracting officer should expect at least 16 weeks process time for a qualified bid, offer or arrangement to obtain TB approval. The overall procurement process may take as much as six months to effect a major procurement for the client, assuming there are no challenges during the process. When it is reasonable to expect that a TB approval will be required, the validity period must be sufficient to ensure that bids, offers or arrangements are still valid when the TB approval is received.

1. An urgent requirement (acquisition) is one that calls for immediate action and conveys a sense of urgency. The contracting officer will decide, in consultation with the client and PWGSC management as required, if the requirement is to be treated as an urgent acquisition. Defining an acquisition as urgent will depend on the current client department's priorities as well as government priorities as a whole. For example, an urgent requirement may be defined as those acquisitions where an undue delay could have a significant economic impact, an effect on health and safety programs, or a risk of not meeting an important project/program milestone.
2. In most cases, it is important that PWGSC be engaged early in the process, respecting roles and responsibilities, to ensure that a comprehensive procurement strategy is developed to meet the client's operational objectives.
3. When the requirement has been identified as urgent, the following strategies may be utilized:
   
   1. PWGSC and the client should use an integrated team approach with dedicated personnel working closely with the client's project team. Where there are multiple urgent requirements, consideration should be given to having a single point of contact in each department to coordinate all of the acquisitions.
   2. early development of sound communication channels is crucial, involving all stakeholders. Urgent requirements will be given priority attention, and concurrent review processes should be established and used whenever possible.
   3. contracting officers should provide information to the industry as early as possible in the process, using such pre-solicitation tools as Request for Information (RFI), Solicitation of Interest and Qualification (SOIQ), and Price and Availability Enquiries (P&A), where appropriate. For more information on the use of these tools, see 4.5.
   4. in cases where Treasury Board project approval is required but has not yet been obtained by the client, consideration must be given to developing a joint TB submission signed by both ministers that will seek (advance) contract approval at the same time. The TBS program sector analyst should always be contacted during the development of the TB submission for advice and guidance in regards to the content and on the approval process.

1. A pressing emergency is defined in accordance with the Treasury Board notice CPN 2007-4 - Non-Competitive Contracting and includes:

   1. an actual/imminent life-threatening situation;
   2. a disaster endangering quality of life or safety of Canadians;
   3. a disaster resulting in the loss of life; or
   4. a disaster resulting in significant loss/damage to Crown Property.

2. Part III Emergency Contracting Limits of the Treasury Board Contracts Directive allows that any department or agency may enter into and amend a contract up to a total value of $1 million (including amendments and all applicable taxes including GST or HST) in response to a pressing emergency requirement. The most senior official available should approve such contracts. It is important to verify each department’s internal delegation and implementation policies before applying these instructions.
3. Additionally, Part III of the Treasury Board Contracts Directive contains an exceptional emergency contracting authority, which allows that the Minister of Public Works and Government Services Canada (as a contracting authority) may enter into a non-competitive contract up to a total value of $15 million without Treasury Board approval in response to pressing emergencies by departments where there is significant human and/or financial risks. Note: The Minister of Public Works and Government Services Canada (PWGSC) has delegated this authority to the Assistant Deputy Minister, Acquisitions Branch and the Associate Assistant Deputy Minister, Acquisitions Branch.
4. PWGSC’s Acquisitions Branch emergency contracting authority for client departments can be used only if all of the following criteria are met:
   1. the National Security Exception or extreme urgency provision of each applicable trade agreement has been invoked;
   2. the requirement cannot be satisfied by normal contracting procedures due to the urgency of the situation; and
   3. the applicable client department provides their Minister’s approval of the initiation of the emergency requirement by PWGSC to the Minister of PWGSC.
5. Contracts for emergency requirements must be approved by the most senior official available. PWGSC contracting officers must provide a procurement plan or a briefing note describing the reasons for requesting the emergency requirement, and identifying the extreme urgency provision of the applicable trade agreements being invoked and the proposed procurement strategy.
6. In some emergency cases, Canada may have to consider limiting a contractor’s liability or may have to provide indemnification. It is the obligation of the client department to get their Chief Financial Officer’s (CFO) approval for Limitation of Liability, even when PWGSC is acting as the contracting authority. Section 8.5 of the TB Policy on Decision Making in Limiting Contractor Liability in Crown Procurement Contracts states the following:

   When an emergency arises where a limitation of liability or indemnification of the contractor is justified, and where a delay to seek approval of the limitation or indemnification would be injurious to the public interest, the contracting authority is to obtain, at a minimum, a preliminary approval from its departmental senior financial officer, or his or her delegate, before entering into the contract. Departments are to include the financial assessment as well as all the limitation or indemnification details in the report that is sent to the Treasury Board of Canada Secretariat (TBS) within 60 days of the authorization or beginning of the work. The departmental senior financial officer or his or her delegate is to approve this report.

7. Contracting officers must report on the details of the use of the emergency contracting authority to the TB Secretariat within 60 calendar days of the use of the authorization or beginning of the work. The Treasury Board Contracts Directive requires that the report should contain as a minimum the following:
   1. detailed information about the circumstances of the emergency situation;
   2. the type and total value of the awarded contract;
   3. the reason(s) why the bidding requirements were not practical or permissible;
   4. the department or agency’s delegated contracting authority level at which the emergency contract entry was approved.
8. Ratification of emergency contracts
   Treasury Board approval is required for any emergency contract over $15 million. If an emergency contract exceeding $15 million is entered into, ratification of the contract must be sought from the Treasury Board as soon as possible. If a contracting authority uses the emergency contracting authority in error, ratification would also be required when the contract value exceeds the departmental basic or exceptional limits. The Treasury Board submission for ratification is to be submitted in addition to the report detailing the emergency contract.
9. For emergency procurements subject to Comprehensive Land Claims Agreements (CLCAs), contracting officers should contact the Acquisitions Program Policy Directorate (APPD) by email at TPSGC.RCNDGAERTGSAEA-NCRABCLCAPSAB.PWGSC@tpsgc-pwgsc.gc.ca for assistance with determining how a CLCA may affect the overall procurement strategy. See section 9.35 Comprehensive Land Claims Agreements (CLCAs) for additional information.

1. The government achieves competitive contracting through two sourcing methodologies, which include: electronic bidding through an open bidding process, and traditional bidding using suppliers lists.
2. The three tendering approaches under the trade agreements are:
   1. Open Tendering: Where a Notice of Proposed Procurement (NPP) is advertised and, any supplier may submit a bid;
      Open Tendering is the preferred approach.
   2. Selective Tendering:
      1. involving the use of a one-time list of qualified suppliers:
         This is a two stage procurement where potential suppliers express an interest in participating and meet predetermined qualifications for participation publicized in the NPP at the first stage. Tender documentation is issued to those suppliers meeting the qualifications at the second stage. For the North American Free Trade Agreement (NAFTA) and the World Trade Organization Agreement on Government Procurement (WTO-AGP), an NPP must be published at both stages of the procurement (it is also acceptable to amend the original NPP once the tender closing date has been determined). Any supplier who wishes to bid at the second stage may do so, as long as there is sufficient time to carry out the qualification process;
      2. involving the use of a permanent list of qualified suppliers ^*:
         This is where a source list is developed and maintained and qualified suppliers for the product or service in question are issued the bid documentation. Any other potential supplier who requests bid documentation must be considered. For NAFTA, WTO-AGP and the Agreement on Internal Trade (AIT), an annual notice of the existence of the source list must be published (use the NPP form). For AIT, when using a source list, all qualified suppliers in a given category on a source list must be invited to bid for all procurement in that category.
   3. Limited Tendering: A process that allows for deviations from the above procurement practices. In situations, where a specific limited tendering justification can be applied, limiting the number of suppliers, to one or more suppliers, is allowed. While limited tendering is often used for sole source procurements, it can also be used in competitive procurements.
   *A permanent list of qualified suppliers is also known as a source list.
3. For the procedure for publication on GETS, see 4.75.20 Procedure for Publication of Notice of Proposed Procurement on GETS. In addition to the above, specific government enterprises (Crown corporations) subject to NAFTA, Annex 1001.1a-2 Government Enterprises, may use a notice of planned procurement to advertise potential procurements. This notice is normally published at the start of a fiscal year and lists potential procurements for the enterprise in the upcoming fiscal year.
   A response from potential suppliers to a notice of planned procurement is not required.
   The notice of planned procurement may also be used as a notice regarding a qualification system. When used in this manner, a response from suppliers would be required. Tender documentation is issued to those suppliers meeting the qualifications.

1. Public Works and Government Services Canada ( PWGSC) uses a variety of approaches to meet procurement requirements. This spectrum ranges from specific contracts which precisely define the deliverables to be provided to a specific client by a specific date, to various procurement instruments for use by a single or many departments and agencies, for needs which are sometimes less well defined at the outset.
2. There are essentially three methods of supply for procuring goods and services, which are:
   
   1. contracts (including contracts with task authorizations);
   2. standing offers, and
   3. supply arrangements.
3. The contracting officer, in consultation with the client, chooses the method of supply that best satisfies the client's requirements.
4. For additional information on when to use a contract (including contracts with task authorizations), a standing offer or a supply arrangement, see 3.35 Contracts, 3.40 Standing offer method of supply and 3.45 Supply arrangement method of supply. Contracting officers should also consult the comparison table in Annex 3.8: Comparaison of Different methods of Supply to assist them in determining which method of supply should be used when the precise nature, quantity and/or timing of the need cannot be set out in advance.

1. Contracts for goods, services and construction are generally used to meet unique, well defined requirements for a single client but they may also be used to meet the requirements of more than one client. They are used where a standing offer or supply arrangement is not warranted.
2. For more information on the required content of a contract, see Chapter 4 - Solicitation Process.

1. A standing offer (SO) is an offer from a supplier to Canada that allows Canada to purchase goods and/or services, or a combination of goods and services, as and when requested, during a specific period of time, through the use of a call-up process which incorporates the conditions and pricing of the standing offer.
2. A standing offer itself is not a contract. A separate contract is formed each time a call-up for the provision of goods and/or services is made against a standing offer. When a call-up is made, it constitutes an unconditional acceptance by Canada of the supplier's offer for the provision, to the extent specified, of the goods and/or services described in the standing offer. Canada's liability is limited to the actual value of the call-ups made by the identified user(s) within the period the standing offer is valid.
3. This method of supply is used to satisfy the requirements of departments and agencies for a specified period, when precise details on expected quantities for the period are not known in advance. Standing offers may authorize one or more clients to issue call-ups for goods or services directly to offerors up to the maximum call-up limits indicated in the standing offer. If so stated in the standing offer, PWGSC may issue call-ups above the client call-up limit.
4. For a description of the five types of standing offers that may be authorized, see 7.10.1 Standing Offers.
5. A standing offer may be valid for one or more years. The selection of the appropriate time period is a process that varies significantly by individual commodity.
6. The quantity of goods and/or level of services specified in the Request for Standing Offers (RFSO) and the resulting standing offer(s) are only an approximation of the requirements given in good faith by Canada to the offerors.
7. All government policies, regulations and procedures related to contracting, including those required under the trade agreements, apply to the standing offer method of supply.
8. The total estimated expenditure of the requirement (the anticipated total value of all accumulated call-ups) proposed to be satisfied by the standing offer method of supply, Goods and Services Tax/Harmonized Sales Tax (GST/HST) included, must be used to determine the applicability of any procedures required by any trade agreement to which the Government of Canada is signatory. If it is intended to issue more than one standing offer against the RFSO, the sum of the total estimated value, GST/HST included, of all resulting standing offers must be used to obtain approval.
9. Contacting officers should consider using a standing offer where appropriate considering the advantages and disadvantages of the approach:
   1. Advantages of a standing offer method of supply may include:
      1. improved client service (with a standing offer in place, clients can place orders quickly);
      2. reducing the risk of overestimating the need.
   2. Disadvantages of a standing offer approach may include:
      1. supply that is not guaranteed at that price since the offeror may withdraw;
      2. prices that may be less competitive.
10. Standing offers may be either competitive (see Standard Acquisition Clauses and ConditionsManual standard instructions 2006) or non-competitive (see standard instructions 2007) in nature.
11. For more information on the competitive solicitation process for RFSOs, see Chapter 4 - Solicitation Process.
12. A standing offer may be directed on a non-competitive basis to one offeror for its full range of catalogue goods or services. The non-competitive approval authorities would then apply.
13. The standing offer is usually considered for goods and services when:
    1. One or more clients repetitively order(s) the same range of goods, services, or both, and the actual demand (for example, quantity, delivery date, delivery point) is not known in advance;
    2. Some of the following conditions are present:
       1. the goods, services, or both are well defined;
       2. pre-arranged prices or a prearranged pricing basis can be established at the outset, usually through competition, and there is no need nor any intention to negotiate them at the time of the call-up;
       3. the goods and services, or both are readily available and are to be ordered (requested through a call-up), if and when the requirements arise, and
       4. at the time of the call-up, there is no need, nor any intention to further negotiate contractual terms and conditions.
14. The standing offer method of supply cannot be used when:
    1. prices, pricing basis or conditions are not stated, or are subject to change at any time at the discretion of the supplier;
    2. the identified users of the standing offers intend to negotiate further the prearranged prices, pricing basis, or conditions of the standing offer, or
    3. it is intended to solicit bids each time goods or services are required. In these cases, another method of supply such as a supply arrangement should be considered.
15. Departments and agencies are authorized by PWGSC to make call-ups against each standing offer, as defined in the standing offer. See paragraph (a) under subsection 4.10.20.1 Standing Offer Procedures.
16. When procedural requirements of any trade agreement apply to a standing offer method of supply, the complete procurement process, including all standing offers authorized for use and the resulting call-ups, fall within the purview of the Canadian International Trade Tribunal.

17. If the Request for Standing Offer (RFSO) and resulting contract involving the goods or services being offered include a security requirement, contracting officers should consider how security requirements will be managed, (i.e. what are the base security requirements and how different security requirements such as Information Technology (IT), Production and/or COMSEC are managed). The contracting officer must ensure that a contract resulting from an Standing Offer contains the proper security requirements and that the client is aware of its responsibility in the confirmation of the actual security status of the organization/personnel prior to issuing the call-up.

    IMPORTANT: When security clearances such as IT, Productions and/or COMSEC are required, seek assurance of these specific security types from the Canadian Industrial Security Directorate (CISD) as they are contract specific and not blanket clearances held by the organizations.

18. For information related to approval authorities when using a Standing Offer, refer to 4.10.20.5 Ranking and Methodology for Standing Offers

1. A supply arrangement (SA) is a non-binding arrangement between Canada and a pre-qualified supplier that allows departments and agencies to award contracts and solicit bids from a pool of pre-qualified suppliers for specific requirements within the scope of the SA.
2. An SA is not a contract for the provision of the goods and services described in it and neither party is legally bound, as a result of signing a supply arrangement alone. The intent of a supply arrangement is to establish a framework to permit expeditious processing of individual bid solicitations, which result in legally binding contracts for the goods and services described in those bid solicitations.
3. An SA may be used when:
   1. the overall requirement cannot be clearly defined at the outset and it is proposed to establish a pool of screened suppliers from which clients and PWGSC solicit bids for individual requirements;
   2. a commodity is procured on a regular basis (goods or services);
   3. a standing offer is not suitable, due to variables in resulting call-ups (e.g. varying methods/basis of payment, or the statement of work or commodity cannot be adequately defined in advance);
   4. a simplified solicitation, undertaken by users/clients, can be used to obtain competitive bids from the pre-qualified suppliers;
   5. selection will be based on best value, as described in the SA and the subsequent solicitation; and
   6. it is more efficient for PWGSC to operate as the provider of the framework on behalf of other users/clients and not as the contracting authority.
4. Supply arrangements are generally issued following a Request for Supply Arrangement process. For more information on the solicitation process, see Chapter 4 - Solicitation Process. When developing the procurement strategy, contacting officers should consider the following:
   1. if national and international trade agreements apply to the solicitation (see 3.50 Procurements Subject to Trade Agreements);
   2. whether or not ceiling prices will be included in the SAs;
   3. how security requirements will be managed (i.e. what are the base security requirements and how are different security requirements managed.). The contracting officer must ensure that a contract resulting from an SA contains the proper security requirements and that the client is aware of its responsibility in the confirmation of the actual security status of the organization/personnel prior to issuing the contract;
      IMPORTANT: When security clearances such as IT, Production and/or COMSEC are required, seek assurance of these specific security types from the Canadian Industrial Security Directorate (CISD) as they are contract specific and not blanket clearances held by the organizations.
   4. how the use of the SA will be monitored and reported.
5. Each SA should contain clear instructions on how to use the SA and identify which departments and agencies can use them.
6. A requirement that would normally be covered by the trade agreement is still covered when solicited or contracted through the use of a supply arrangement method of supply.
   1. The use of this method of supply is considered selective tendering under the North American Free Trade Agreement and the World Trade Organization Agreement on Government Procurement. Therefore, a Notice of Proposed Procurement (NPP) must be posted for each separate procurement under an SA that is over the relevant trade agreement threshold and to provide the time periods required by the agreements. For more information, see 4.10.25.5 International Trade Agreements and Use of Supply Arrangements and 4.10.25.10 Ongoing Qualification Process.
   2. The use of this method of supply is considered to be the use of a source list under the Agreement on Internal Trade (AIT). The AIT does allow the use of source lists without publication of a separate NPP for each requirement, provided that all suppliers on the source list are invited to bid and that suppliers be able to get on the list at any time.

1. To strengthen the integrity of procurement and to ensure that the Government does business with ethical suppliers in Canada and abroad, the Government of Canada implemented a government-wide Integrity Regime for procurement and real property transactions. The Regime fosters ethical business practices, ensures due process for suppliers and upholds the public trust in the procurement process. It is transparent, rigorous and consistent with best practices in Canada and abroad, while supporting transparent competition and an ethical Canadian marketplace.
2. The Integrity Regime is administered by Public Works and Government Services Canada (PWGSC) under the authority of the Department of Public Works and Government Services Act, the Financial Administration Act as well as through the operation of various Memoranda of Understanding that have been concluded with other government departments, agencies and certain crown corporations. The Integrity Regime consists of the Ineligibility and Suspension Policy and the Integrity Provisions found in section 01 of standard instructions 2003, 2004, 2006, 2007 and 2008 and general conditions 2005, 2010A, 2010B, 2010C, 2020, 2029, 2030, 2035 and 2040 of PWGSC’s Standard Acquisition Clauses and Conditions Manual.
   Note: Contracting officers should become familiar with the content of the Ineligibility and Suspension Policy.
3. The Integrity Regime applies to supply contracts, construction contracts, real property contracts, and service contracts. All contracts and solicitations, including those that will result in a pre-qualified list, must include the Integrity Provisions. As the Policy is incorporated by reference, all exceptions provided by the Integrity Regime will therefore apply. Specific exceptions provided by the Integrity Regime are found in Section 4. Application of the Ineligibility and Suspension Policy.
4. The Government of Canada may enter into contracts with bidders, offerors or suppliers that would otherwise be ineligible to be awarded a contract or suspended through mechanisms provided in the Integrity Regime (i.e. Public Interest Exceptions and Administrative Agreements). Additional information regarding Administrative Agreements and Public Interest Exceptions are provided in Section 14. Administrative Agreements and Section 15. Public Interest Exception  of the Ineligibility and Suspension Policy, as well as in Section 4.21.1 Administrative Agreements and 4.21.2 Public Interest Exception of the Supply Manual.
5. Details on the integrity process are described in the following sections:
• 4.21 Integrity Provisions;
• 4.45 Certifications and additional information;
• 5.16 Integrity Compliance;
• 6.4.1. Annex: Approval Authorities and Additional Signing Authorities in Support of Clients' Programs Only - Other than for Canadian Commercial Corporation;
• 8.70.2 Compliance with the Integrity Provisions;
• 8.70.5 Amending Contracts; and
• 8.90 Assignment of Contracts.

Contracting officers should take into account any industrial security requirement when developing the procurement strategy and also when determining the procurement schedule. Procurement strategy and approval documents should identify the existence of any security requirements.

1. Requirements below $25,000, including all applicable taxes, are considered to be low dollar value (LDV) procurements.
2. All LDV procurements will be conducted in accordance with the provisions of the Directive on the Processing of Low Dollar Value Procurement (available on GCpedia - Acquisitions Program Policy Suite).

1. Successful implementation of the Policy on Green Procurement requires the identification and implementation of environmental performance opportunities at both the strategic and operational levels, taking into consideration specific departmental buying patterns, sustainable development targets and other Government of Canada priorities.
2. In developing the procurement strategy, departments must consider opportunities to advance the protection of the environment and support sustainable development. Contracting officers must document the environmental considerations and decisions taken in relation to the integration of environmental requirements.
3. For commodities under the commodity management framework, contracting officers must develop a green procurement plan and procurements must be done in accordance with this plan. The completed plan serves as an example of green procurement best practices.
4. Contracting officers can refer to Annex 2.2: Green Procurement: Environmental Factors and Evaluation Indicators to identify those factors which need to be addressed in the procurement strategy.
5. For more information on environmental issues and mitigating actions to support the Policy on Green Procurement, go to the Environmental Awareness Tool Kit under Developing Green Procurement Specifications, and the section 3.2, Selection According to Technical Capacity, of the Guideline for Integration of Environmental Performance Considerations in Federal Government Procurement. The various environmental performance considerations listed in the Green Procurement Checklist must also be considered.

1. The government has determined that its procurement actions should be consistent with and supportive of such national objectives as industrial and regional development, and other national objectives such as aboriginal economic development, the environment, Defence Procurement Strategy and other approved socio-economic objectives.
2. The objective of the Treasury Board Procurement Review Policy is to enhance the use of procurement in support of national socio-economic objectives in a manner that is fully consistent with the government's other objectives, e.g., the pre-eminence of operational requirements, competition, fairness and accessibility, all within Canada's international trade obligations.
3. The procurement strategy for goods and services over $2,000,000 must be considered for potential socio-economic benefits to ensure that maximum benefit to Canada is achieved. The primary mechanism for selection for the review for socio-economic benefits is inclusion in the department's annual short range acquisition plan.
4. The review process is carried out by the interdepartmental Procurement Review Committee (PRC), which is responsible for providing linkages between the government's national objectives and individual procurements. Contracting officers should refer to Annex 3.5: Procurement Review Committee Requirements and Approval Process for details on the process to be followed.
5. The PRC consists of a number of federal departments: PWGSC(the chair), the client department, Industry Canada, the regional agencies/departments, Indian and Northern Affairs Canada, Environment Canada, Employment and Social Development Canada, National Research Council, Finance Canada and the Treasury Board Secretariat.
6. Industry Canada and the regional economic agencies/departments review procurements for potential industrial and regional benefits. For more information on the Industrial and Regional Benefits Program, see 9.45. The other departments, such as Indian and Northern Affairs Canada, review the procurements for opportunities to achieve other national objectives, such as Aboriginal economic development.
7. The PRC makes recommendations to the operating and contracting departments regarding appropriate procurement strategies and other initiatives that would support government objectives in individual acquisitions.
8. Mandatory procurement review does not apply in the following situations:
   1. foreign aid by or on behalf of the Canadian International Development Agency;
   2. procurements by the Canadian Commercial Corporation on behalf of entities not subject to this policy, for example, foreign governments;
   3. the acquisition, modification and routine maintenance of real property, and
   4. security requirements by or on behalf of the Communications Security Establishment of the Department of National Defence; the Canadian Security Intelligence Service; and the Royal Canadian Mounted Police for the purpose of pursuing criminal investigations.
   Note:Notwithstanding this exemption, the above organizations must apply the principles of the Policy where appropriate, consistent with the security requirements of their procurement.
9. In cases of a pressing emergency, as defined in the Treasury Board (TB) Contracting Policy, departments may enter into contract without submitting the strategy for procurement review pursuant to TB Procurement Review Policy. Such action should be noted in any subsequent submission or report to TB or TB Secretariat (if such a submission or report is required), and should also be reported to the PRC Secretariat within 60 calendar days.
10. The PRC divides procurements into the following categories:
    1. those covered by international trade agreements, and
    2. all others, including requirements subject to the Agreement on Internal Trade (AIT), with the following exceptions:
       1. Foreign Military Sales;
       2. security services;
       3. temporary help services;
       4. procurements under the Munitions Supply Program;
       5. requirements subject to the Shipbuilding Policy.
    Note:Procurement covered by international trade agreements is not reviewed for socio-economic benefits, except for set-aide for minority business.
11. The Advisory Council on Repair and Overhaul (ACRO) will carry out the socio-economic benefits review for military repair and overhaul requirements, under the strategic direction of the Procurement Review Committee (PRC).
12. For Major Crown Projects (MCPs), or those requirements exceeding $100 million, a Senior Project Advisory Committee (SPAC) will normally be set up and the SPAC will, in accordance with the TB Policy on Management of MCPs and will carry out procurement review function. If a SPAC is not set up, then the PRC will review the procurement. For more information on MCPs, see  9.5 Major Crown Projects.
13. For proposed procurements between $2 million and $100 million, the contracting officer must complete a "Detail Document" to be forwarded to the PRC Secretariat, once it has undergone the respective sector approval processes. It must be kept on the contract file.
14. Copies of the Detail Document and the Record of Decision must be retained on the procurement file.

Contracting officers who receive a requisition that may be subject to Comprehensive Land Claims Agreements (CLCAs) must consult 9.35 Comprehensive Land Claims Agreements (CLCAs) for information on the CLCA obligations that have to be addressed during the procurement process.

All federal government departments are encouraged to set-aside some procurements for competition by Aboriginal suppliers provided operational requirements are fully met. For more information on the Procurement Strategy for Aboriginal Business, see 9.40 Procurement Strategy for Aboriginal Business.

1. Contracts with former public servants in receipt of a pension or of a lump sum payment must bear the closest public scrutiny, and reflect fairness in the spending of public funds. (See 16.8 Former public servants in receipt of a pension or a lump sum payment of the Treasury Board Contracting Policy.)
2. A former public servant is any former member of a department as defined in the Financial Administration Act, a former member of the Canadian Armed Forces or a former member of the Royal Canadian Mounted Police. A former public servant may be:
   1. an individual;
   2. an individual who has incorporated;
   3. a partnership made of Former Public Servants, or
   4. a sole proprietorship or entity where the affected individual has a controlling or major interest in the entity.
3. Retirement Waiting Period
   When contracting with a former public servant or a former public officer holder, the provisions of the Conflict of Interest Act, the Post-Employment Measures contained in the Values and Ethics Code for the Public Service, and the Conflict of Interest and Post-Employment Code for Public Office Holders apply. These codes provide information on the applicability of the retirement waiting period. The retirement waiting period does not apply to former members of the Canadian Forces or the Royal Canadian Mounted Police (RCMP)
4. Approval Authority
   Contracting officers must indicate in the approval document that a contract will be issued to a former public servant. Treasury Board approval may be required for a service contract with a former public servant, depending on the value or the situation. For more information, see Annex 6.4.1: Approval Authorities and Additional Signing Authorities in Support of Clients' Programs Only - Other than for Canadian Commercial Corporation, section 1.1.1.
5. Fee Abatement
   1. For non-competitive service contracts with former public servants in receipt of a pension, the fee abatement formula below applies in the determination of the maximum fee payable during the one-year fee abatement period.
   2. In accordance with the Workforce Adjustment Directive, for non-competitive service contracts with former public servants in receipt of a pension and a lump sum payment, the application of the fee abatement formula is postponed to have it begin at the conclusion of the lump sum payment period. See subsection f. below.
   3. Fee Abatement Formula
      D= ((M+F)/260) - (P/260)
      where formula variables correspond to:

      D

      maximum payable per diem rate;

      M

      maximum salary of the former public servant, updated to the current level, or the estimated salary cost of having the work done by a qualified public servant;

      F

      cost of usual fringe benefits, 30 percent;

      P

      total annual pension in pay.

      Example:
      Maximum salary = $60,000; benefits are 30 percent of salary;
      Pension after 35 years of service = $42,000 ($60,000 x 0.7);
      Per Diem= (60,000 + 18,000)/260 - 42,000/260 = $138.46
      Note: A "pension" means a pension or annual allowance paid under the Public Service Superannuation Act (PSSA) and any increases paid pursuant to the Supplementary Retirement Benefits Act, as it affects the PSSA. It does not include pensions payable pursuant to the Canadian Forces Superannuation Act, the Defence Services Pension Continuation Act, the Royal Canadian Mounted Police Pension Continuation Act and the Royal Canadian Mounted Police Superannuation Act, the Members of Parliament Retiring Allowances Act and that portion of pension payable to the Canada Pension Plan Act.
   4. No exceptions to the application of the formula or to the maximum rate allowed must be permitted without prior TB approval.
6. Workforce Adjustment Directive
   1. In addition to the requirements of the contract fee abatement policy for former public servants in receipt of a pension, the amount payable for professional fees to former public servants, whether they are in receipt of a pension or not, members of the Canadian Forces, and members of the RCMP, who have received a lump sum payment for employment termination under a workforce reduction program or adjustment initiative, has been limited during the lump sum payment period.
   2. The contract fee limit policy does not apply if the contract is not specifically for the services of a former public servant.
   3. For purposes of this policy, the "lump sum payment period" is defined as the period measured in weeks of salary, for which payment has been made to facilitate the transition to retirement or to other employment as a result of the implementation of various programs to reduce the size of the Public Service. The lump sum payment period does not include the period of severance pay, which is measured in a like manner.
   4. For competitive or non-competitive service contracts awarded to a former public servant during the lump sum payment period, the total amount of fees that may be paid is $5,000, including applicable taxes. The contract fee limit policy applies to all former public servants, including former members of the Canadian Forces and the Royal Canadian Mounted Police, in receipt of a lump sum payment.
   5. Reasonable overhead costs, such as travel expenses, are excluded from the $5,000 limit. However, due to the sensitivity of these contracts, these costs should be strictly controlled. Departments and agencies must obtain Treasury Board approval for all contract situations where former public servants could receive fees totaling more than $5,000 during the lump sum payment period.
   6. When a former public servant works as a salaried employee of, or a subcontractor to, an established supplier contracting with Canada, the contract fee limit policy does not apply.
7. Proactive Disclosure
   After January 1, 2013, departments will be required to include information on service contracts and contract amendments over $10 000 awarded to a former public servant in receipt of a Public Service Superannuation Act (PSSA) pension on the Disclosure of Contracts departmental websites. For further information, consult the Guidelines on the Proactive Disclosure of Contracts on the Treasury Board of Canada Secretariat website.

1. Before issuing a solicitation or awarding a contract, the contracting officer must identify what intellectual property (IP) is already existing before contract award and, conversely, what IP will be generated as a result of the contract. In addition to reducing future costs, disputes can be avoided by being clear upfront.
2. Intellectual property is anything resulting from a contract that can be copyrighted, trademarked, patented, licensed, etc. Potentially, any contract can have IP. The likelihood for IP is much greater where the goal of the contract is something new, or might incorporate new processes. IP considerations are most relevant to research and development contracts, software development, or where the production of new written material occurs. A definition of "Intellectual Property" and Intellectual Property Rights" can be found in Standard Acquisition Clauses and Conditions Manual general conditions 2040.
3. Contracting officers can find complete details on the IP policy as per following Treasury Board policies:
   1. ARCHIVED - Policy on Title to Intellectual Property Arising Under Crown Procurement Contracts;
   2. Implementation Guide for the Policy: Title to Intellectual Property Arising Under Crown Procurement Contracts;
   3. ARCHIVED - TBS Contracting Policy Notice 2000-2: Revised Policy on Ownership of Intellectual Property Arising Under Crown Procurement Contracts.
4. The default position of the government policy is to allow contractors to retain the rights to IP generated under government contracts. This is designed to promote the commercialization of new ideas, under the premise that the private sector has a greater capacity in this regard. Exceptions are described in the Policy references above.
5. The contracting officer must therefore determine at the planning stage, how IP will be handled, what IP is anticipated and how the IP will be identified and secured for the use of the client and Canada. Once again, this process can have very long timeframes and can have extremely complex processes. The greatest pitfall with IP is in not identifying what is the foreground information and the background information upfront and if left to the end of the contract, Canada is at a severe disadvantage.
6. The client department must decide to what extent IP rights are to be retained by Canada. However, the contracting officer should discuss with the client department their needs in order to ensure that the client department is aware of the extent to which PWGSC can obtain for them the rights they need to use the IP created under their contract, whether Canada or the contractor owns the IP. For instance, subject to industry practice, Canada may not be able to obtain IP ownership, even when desired. In such cases, Public Works and Government Services Canada ( PWGSC) contract clauses are designed with the goal of ensuring that even where the contractor owns the IP, this does not affect the client department's ability to use the IP, except that such use would not extend to commercialization of the IP by Canada.
7. A summary of PWGSC's contractual options is shown in the table below.

For more information on the Vendor Performance Corrective Measure Policy, contracting officers should consult section 8.180 Vendor Performance Corrective Measure Policy; For more information on rejection of bids/offers/arrangements based on Vendor Performance Corrective Measures, see section 5.55 Rejection of Bids/Offers/Arrangements.

1. All Legal Services lawyers are officers of the Department of Justice. The role of the PWGSC Legal Services is to provide legal services to PWGSC. Legal services relating to procurement must be sought only from the PWGSC Legal Services or from a regional office of Justice Canada, when the latter has agreed along with PWGSC Legal Services to provide counsel to a particular region. Legal Services involvement in the review of proposed contractual documents is intended to:
   1. ensure that contracts are legally binding and enforceable and precisely reflect the intended relationship between Canada and the contractor;
   2. ensure that the respective obligations of the parties are expressed clearly and that the interest of Canada are protected;
   3. identify the consequences of any changes to standard general conditions in terms of the additional risk and liability being assumed by Canada.
2. Whenever legal involvement is required, contracting officers must provide the legal counsel involved with access to all required documents and files. Legal counsels should be given the opportunity to review procurement documents at an early stage in the procurement process to facilitate the making of informed business decisions and incorporation of any required changes. For the procurement of goods and services, this means before the issuance of bid solicitations and requests for standing offers or for supply arrangements. For anything related to the administration of the contract, standing offer or supply arrangement, Legal Services must be consulted before any binding action is taken by contracting officers.
3. Contracting officers must seek legal advice:
   1. if determined through the application of a procurement risk assessment;
   2. for contracts containing special conditions or deviations from PWGSC or Canadian Commercial Corporation general and supplemental conditions;
   3. in all situations where the work has been completed pursuant to a verbal request from a representative of a client and a confirming order has to be prepared;
   4. in all situations where a security must be obtained to ensure repayment of a debt or satisfaction of an obligation to Canada, particularly for all contracts under which payment is secured by means of a letter of credit;
   5. for all letters of comfort, letters of intent and go-ahead letters;
   6. for all contracts where questions may arise regarding conflict of interest issues or the post-employment code for former public servants;
   7. for all letters of credit;
   8. for any proposed assignment of a contract to a third party;
   9. for any case of receivership, insolvency or bankruptcy of a contractor;
   10. for all terminations for default, convenience and mutual consent;
   11. for all defence contracts where the provisions of section 20 of the Defence Production Act respecting title to any government issue or building may be applicable;
   12. for all memorandum of understanding and drafting of orders in council;
   13. for all conditional amendments (see 8.180 Vendor Performance Corrective Measure Policy).
4. Legal Services can also be contacted about any matter in respect of which a contracting officer believes legal advice would be appropriate or helpful. Some of these situations are identified below:
   1. any proposed contract for services involving the possible development of an employee-employer relationship;
   2. any proposed contract where a clause providing for liquidated damages must be included to cover late delivery or unsatisfactory performance of the work;
   3. disputes arising after the contract has been awarded;
   4. for discussions or communications with outside lawyers.
5. Solicitor-Client Privilege
   1. Communications between a client and its lawyer are protected by the solicitor-client privilege and exempt from disclosure under the Access to Information Act. The solicitor-client privilege allows clients to disclose all relevant information to their legal counsel knowing that such information will remain confidential. There are however three conditions for the privilege to apply:
      1. the communication must be with a practicing lawyer occupying a legal counsel position within government (it would also include a non-government lawyer hired by the Department of Justice to provide legal services in certain circumstances);
      2. the communication must be for the purpose of giving or receiving legal advice, as opposed to policy advice or non legal matters advice;
      3. the request for legal advice and any advice given must have been intended to be confidential. A notice "protected by solicitor-client privilege" may not be sufficient to prove that the parties intended that the communication be privileged. The proof will really be found from the actions of the client who must disclose the communication only to those persons who have a direct need to know depending on the circumstances of each case. Contracting officers must be particularly careful with e-mails containing legal advice and not forward them to persons who don't have a direct need to know.
   2. All three conditions must be met for the privilege to apply. If any one of those conditions is not met, all communications between the lawyer and the client relating to the subject matter will lose their privilege status.
   3. The solicitor-client privilege is the privilege of the client, who alone can waive it either intentionally or unintentionally. Intentional waiver occurs when a client, after consultation with its legal counsel, decides to disclose the privileged communications knowing the consequences of this action. Unintentional waiver occurs when, despite the fact that the parties still intend to keep the communication confidential, it is disclosed to a third party who does not have the need to know. Once the communication is revealed to a third party who does not have a need to know, the privilege is waived. This means that the legal advice is not protected anymore and is subject to disclosure under the Access to Information Act, if no other exception applies. This also means that all other communications between the legal counsel and the client relating to the same subject may lose their privilege and protection.
   4. Communications subject to solicitor-client privilege can be subject to mandatory statutory disclosure. For example, the Auditor General Act authorizes the Auditor General to review legal advice on matters relevant to her/his auditing function. The Auditor General however cannot disclose the legal advice. The disclosure to the Auditor General does not constitute a waiver of the privilege and the information remains confidential and is still protected by the privilege.
   5. Legal advice should not be disclosed without the knowledge and recommendation of legal counsel. All questions regarding solicitor-client privilege should be brought to the attention of Legal Services.

1. A bidders' conference is used to provide information to suppliers and to ensure that all suppliers receive the same information. A conference must be held only when such a meeting is required for suppliers to fully understand the proposed procurement.
2. Supplier’s attendance is optional, as the purpose of a bidder’s conference is to provide information and opportunities for bidders to ask questions about the project and the procurement process, which can easily be done via e-mail if an interested bidder does not attend the conference. Only the information that was shared with the attendees at the bidders’ conference must be shared with bidders who did not attend.
3. Whenever there is a bidders' conference planned, the Notice of Proposed Procurement (NPP) and solicitation documents must clearly state that there will be a bidder's conference and indicate the location, date and time and the level of clearance required (if the location requires that participants hold a valid security clearance).
4. SACC Manual clause A9083T should be used when a bidders’ conference will be held and to provide the necessary instructions for attendance. Clause A9083T must also be used to provide location, time and administrative arrangements of the bidders' conference in the solicitation document. For Request for Standing Offers, the equivalent SACC clause is M9083T. For Request for Supply Arrangements use S0026T.
5. The bidders' conference normally takes place at the Public Works and Government Services Canada (PWGSC) office that issues the solicitation, or at another suitable location arranged by that office. It is preferable to choose a location accessible to the public so the bidders are not required to hold a valid security clearance or be escorted by a government representative.
6. While a bidders' conference is normally held as one meeting, the scope of the solicitation may dictate the need for a series of cross-country regional conferences.
7. The conference should be scheduled on a date that will:
   1. allow suppliers time to obtain and review the solicitation;
   2. allow for the preparation and distribution of minutes in sufficient time for suppliers to prepare and submit bids before the solicitation closing date;
   3. allow for bidders to obtain the required security clearance.
8. The contracting officer should request in the solicitation document that suppliers identify, in writing, before the meeting date, the names of the representatives who will attend and a list of the issues they propose to raise.
9. Before the conference, the contracting officer must prepare an agenda outlining elements to be discussed, including questions raised by suppliers. PWGSC will chair all bidders' conferences and prepare the minutes, including any clarifications or specification changes that may result in a change to the requirement. Client departments are also expected to attend and be available to answer any questions relating to the requirement.
10. The minutes of the bidder’s conference must be made available to all attendees in sufficient time to allow suppliers to prepare and submit responses before the solicitation closing date. For solicitation documents originally posted on the Government Electronic Tendering Service (GETS), the minutes must also be posted on GETS; for solicitations that are not posted on GETS, the minutes must be made available to all suppliers who have already requested a solicitation document or have been invited to respond to the solicitation. The sensitivity of the information included in the minutes has to be considered when choosing the proper way of making them available.
11. Any clarifications or changes to the solicitation resulting from the bidders' conference will be included as an amendment to the solicitation. A copy of the solicitation amendments must be made available on GETS or, if the solicitation has not been posted on GETS, to all suppliers who have already requested a solicitation document or have been invited to respond to the solicitation.
12. Where practical, the use of various technical means such as video conferencing, teleconferencing or web casting could be considered to allow suppliers to participate either directly or indirectly to the conference. Video or audio recordings of the conference could be made and distributed to suppliers who were not able to attend; it is however not recommended to permit suppliers to record the conference for their own purposes.
13. Suppliers that do not attend the bidder’s conference are not precluded from submitting a bid.

1. Attendance at site visits may be optional or mandatory. Mandatory site visits apply to all suppliers, even those who contend they are already familiar with the site in question.
2. Site visits must be arranged in conjunction with the client department. The contracting officer should always attend.
3. Whenever there is a site visit requirement, the Notice of Proposed Procurement (NPP) and solicitation documents must clearly state that there will be an optional or mandatory site visit and indicate the location, date and time, and the level of clearance required (if the location requires that participants hold a valid security clearance). To provide location, time and administrative arrangements of the site visit in the solicitation document, Standard Acquisition Clauses and Conditions (SACC) Manual clauses A9038T or A9040T must be used respectively for an optional or a mandatory site visit.
4. The need for a mandatory site visit should be carefully examined and documented on the procurement file as part of the procurement planning stage. Consideration should be given to the cost and relative hardship imposed on suppliers not in the immediate vicinity of the site when deciding if a site visit will be mandatory.
5. The requirement for holding a valid security clearance at the required level in order to access the site or have access to sensitive information or assets has to be considered when organizing a site visit as it affects the scheduling and may limit access to suppliers. SACC Manual clauses A9038T or A9040T, which must be used respectively for optional or mandatory site visits, offer options depending on whether security requirements are associated with the site visit or not.
   1. In order for the suppliers’ representatives to receive personnel security clearance from the Canadian Industrial Security Directorate (CISD), the suppliers must already have obtained organization security screening/clearance.
   2. Personnel security clearances may take time depending on the individual’s history and the level of security clearance required.
   3. The contracting officer and client departments must consider alternatives if the security clearance cannot be obtained on time for the site visit. For example: Can the date of the site visit be changed? If holding a security clearance for access to sensitive information or assets is not required to access the site, can individuals simply be escorted by a government representative?
   4. Prior to the site visit, a Security Requirements Check List (SRCL) must be completed and submitted to CISD. A Request for Private Sector Organization Screening (PSOS) form may also be submitted along with the SRCL to initiate the screening process of any bidders that are not already registered with CISD. Information on the PSOS form and how to obtain it is available in section 4.30.10 Industrial Security in Contracts.
   5. The contracting officer has to confirm with CISD that the proposed visiting suppliers or their representative(s) hold the required security clearance.
   6. It is the responsibility of the supplier’s Company Security Officer to ensure that their representatives’ security clearances are valid and at the required level for the site visits.
6. The site visit should be scheduled on a date that will :
   1. allow suppliers time to obtain and review the solicitation;
   2. allow suppliers time to obtain the required security clearance and for CISD to confirm that the suppliers hold the required security clearance;
   3. allow for the preparation and distribution of minutes in sufficient time for suppliers to prepare and submit bids before the solicitation closing date.
7. In the event of a mandatory site visit, the NPP and solicitation documents must clearly state:
   1. that the site visit is mandatory;
   2. the level of clearance required (if holding a valid security clearance is required in order to access the site or to have access to sensitive information or assets); and
   3. that failure to attend will result in the bid being declared non-responsive.
8. In the event of an optional site visit, the NPP and solicitation documents must clearly state:
   1. that the visit is optional;
   2. the level of clearance required (if holding a valid security clearance is required in order to access the site or to have access to sensitive information or assets); and
   3. that suppliers who do not attend are not precluded from submitting a bid.
9. The contracting officer should request in the solicitation document that suppliers identify, in writing, before the meeting date, the names of the representatives who will attend and a list of the issues they propose to raise.
10. For solicitation documents originally posted on the Government Electronic Tendering Service (GETS), the minutes must also be posted on GETS; if the solicitation has not been posted on GETS, the minutes must be made available to all suppliers who have already requested a solicitation document or have been invited to respond to the solicitation. The sensitivity of the information included in the minutes has to be considered when choosing the proper way of making them available.
11. The client department must be instructed to advise PWGSC of any clarifications, or changes in specifications, resulting from the site visit. The original solicitation must then be amended to reflect these changes or clarifications.
12. A copy of the solicitation amendments must be made available on GETS or, if the solicitation has not been posted on GETS, to all suppliers who have already requested a solicitation document or have been invited to respond to the solicitation.

Contracting officers should consider client department memorandums of understanding (MOUs) when determining roles and responsibilities in the planning and management of procurements. Contracting officers shoud consult Annex 1.1: Matrix of Responsibilities between PWGSC and Client Departments for the Procurement of Goods and Services (Generic) and Annex: Specific Division of Responsibilities Agreements relative to the division of responsibilities between PWGSC and the client department, as well as 9.5.15 Memorandum of Understanding with Client Department relative to Major Crown Projects.

For information on procurements on behalf of the Canadian Commercial Corporation (CCC), the roles and responsibilities of CCC and PWGSC as well as the pertinent Memorandum of Understanding (MOU), see 9.55 Canadian Commercial Corporation.

1. The Canadian Content Policy encourages industrial development in Canada by limiting, in specific circumstances, competition for government procurement opportunities to suppliers of Canadian goods and services.
2. For more information on the complete Canadian Content Policy and the procedures for its application, see Annex 3.6: Canadian Content Policy.

For all procurements requiring the Minister's approval or above, contracting officers must formally assess the merits, at the procurement strategy phase, of using a fairness monitor.

1. Contracting officers may optionally consider, at the procurement strategy phase, using a fairness monitor where an enhanced assurance of fairness is desired (e.g. at the request of the client, complex procurement).
2. Contracting officers must complete the Fairness Monitoring Coverage Assessment and Recommendation Form PWGSC-TPSGC 587 for both mandatory and optional fairness monitor use and submit to the Assistant Deputy Minister, Acquisitions Branch (ADM/AB), for signature.
3. The signed form is then forwarded to the ADM, Departmental Oversight Branch (DOB). In the event that the ADM/AB does not recommend the use of a fairness monitor in an optional situation (see (b) above) above, the signed form is not forwarded to the ADM/DOB but must be kept on the procurement file.
4. The ADM/DOB reviews the request for fairness monitor coverage of the procurement process on behalf of the Business Operations Committee (BOC) and forwards the recommendation to BOC who renders a decision on whether use of a fairness monitor is appropriate and desirable.
5. For more information, see the Policy on Fairness Monitoring. (See also 1.50 Fairness monitoring and 5.25 Use of Fairness Monitors.)

Life cycle costing pertains to all four stages of the procurement process, from planning and acquisition to use and disposal. Currently, the Policy on Green Procurement applies to all federal government procurement activities. The Policy requires that environmental performance considerations be embedded into the procurement decision-making process in the same manner as price, performance, quality and availability. For more information and tools on the life cycle costing, see  2.20 Green Procurement and Defining the Requirement.

1. For a contract to be awarded on a non-competitive basis, or when, following a competitive process, price negotiations with the successful bidder are required, the anticipated cost and profit becomes part of the strategy and forms part of the determination of the type of contract contemplated to be put in place.
2. The contracting officer must estimate the cost for the procurement planning phase. Conceptual cost estimating is derived from a mix of industry standards and historical data for similar procurement. The total project budget and estimate should be considered using an optimistic and pessimistic price to determine a cost range. It is important to consider fixed costs, external influences, such as exchange rates and supply and demand. Also, consideration should be given to the build of a contingency fund and a management reserve fund. It would be beneficial to include a description of the scope of work, and the basis for the estimate. Assumptions made must be documented and an outline provided relative to the range of possible cost.
3. In general contract negotiations, profit is a representation of the risk a bidder is taking in delivering the contract. If Canada is assuming the majority of the risk then the profit applied should be low. If the bidder is assuming the risk then the profit allowable should be higher. Although not all contracts demand the application of the profit policy and all its components, the profit policy does represent the factors to be considered when negotiating the applicable profit. Consideration should be given to the factors detailed in the Policy even though detailed analysis and calculations may not be performed.
4. For more information on cost and profit, see Chapter 10 Cost and Profit.

1. If royalty payments, technical assistance agreements or manufacturing licenses are required or anticipated as being required, the contracting officer must plan for these events within the procurement strategy submitted for approval. Establishing these types of agreements can have very long timeframe and can be a very complex process.
2. In order to carry out certain contracts, primarily for defence, contractors may have to obtain technical assistance and/or manufacturing licenses from third parties.
3. The usual commercial practice is for the contractor to enter into a technical assistance and/or license agreement. However, there are cases where it may be more advantageous for Canada to enter, in its own name, into the license agreement with respect to inventions, patents, copyrights, trade secrets, trademarks, technical data, know-how and industrial designs.
4. In order to avoid paying for rights that the government already has, contracting officers should check that no license agreement in Canada's name exists, which could remove the need for royalty payments.
5. Contracting officers should minimize the use of patented products, by calling up performance specifications rather than product specifications. When there is no alternative, market-based processes for the supply of patented products through licensed production arrangements, royalties, etc., must be exhausted before using section 19 of the Patent Act or section 22 of the Defence Production Act.
6. Royalty payments of 5 percent or less of the selling price of the patented item require the Director approval. A royalty that exceeds 5 percent requires the Deputy Minister approval, before entry into a contract.
7. If there is an increase in the amount of the royalty to be paid, or if further items become subject to royalty payments during the life of a contract, the same guidelines for approval apply.
8. To obtain the approval of the Deputy Minister for royalties exceeding 5 percent, the following information must be provided on Part 2 of the Contract Request:
   1. details of the royalties;
   2. a forecast of anticipated future purchases beyond the requirement in the present submission;
   3. the comments of Legal Services.
9. In consultation with Legal Services, the contracting officer must consider the advantages and disadvantages before deciding that a license should be obtained in the name of Canada or the contractor. These advantages and disadvantages are to be considered in relation to the nature of the supplies to be manufactured, the expenditure by Canada, potential purchases by Canada and the relationship between the potential contractor and the licensor; for example, the contractor may be a subsidiary of the licensor.
10. Advantages- if the license agreement is in the name of Canada, Canada can:
    1. negotiate terms and ensure that no restrictions are placed on the use, sale, lease or exchange of supplies. Such restrictions, if imposed, might interfere with Canada's obligations under international defence arrangements;
    2. gave unrestricted choice of contractors; and
    3. control the manner in which required technical assistance must be furnished and used.
11. Disadvantages- if the license agreement is in the name of Canada, Canada may:
    1. become involved in contractual negotiations apart from the contract it is presently interested in;
    2. have to assume onerous burdens dealing with secrecy, non-disclosure and informing the licensor of improvements and developments;
    3. be bound by all terms of the agreement and be required to pay royalties at a set rate and assume other burdens for a long period.
12. Royalties required to be paid by contractors and their subcontractors to third parties, in the performance of a defence contract, will be paid if they are valid costs in the bid, and the amounts being charged are acceptable to Canada.
13. Where the license agreement must be in the name of the contractor, approval to enter into such an agreement may be obtained as part of the authority for the purchase of the goods and/or services.
14. Where the license must be in the name of Canada, the contracting officer, when negotiating the license agreement and the amount of the royalty payment, should take into consideration the following:
    1. manufacturing rights, including use of licensor's patents and designs;
    2. technical assistance, including:
       1. supply of plans, drawings, specifications, etc.;
       2. engineering person-days provided by the licensor both at its own plant and the plant of the manufacturer selected by Canada;
       3. travel and living expenses of the licensor's representatives;
    3. obtaining for Canada the right to modify or have modified the plans, drawings, etc., and, if required, the right to build or have built or to repair or have repaired the articles in question by a party other than the licensor.
15. Approval of the Assistant Deputy Minister is required before entry into any contractual agreement that exercises the rights of Canada under section 22 of the Defence Production Act or section 19 of the Patent Act. Exercising the rights granted to Canada under these acts must only be carried out in exceptional circumstances as warranted by consideration of the public interest, and after market-based processes have been exhausted. Note:Examples of these circumstances would include refusal by a patent holder to produce or license others to produce a product vital to the defence of Canada, or where monopoly power conferred by the patent is being abused to impose unconsciously high prices upon Canada. It would be very unusual to find these rights exercised for other than defence supplies.

1. As of April 30, 2001, no new controlled goods can be provided unless persons are registered, exempt or excluded by the Canadian Industrial Security Directorate. Bill S-25 amended the Defence Production Act and established a new regime for regulating access to certain controlled military and military related goods, technical data and technology, referred to as controlled goods.
2. Even if there are no controlled goods in a bid solicitation, there may be situations where proposals submitted by bidders could contain controlled goods. Controlled goods cannot be released to persons that are not registered, exempt or excluded under the Controlled Goods Program.

The PWGSC procedures for sourcing suppliers to work on Canadian government vessels derive from the government's Shipbuilding, Repair, Refit and Modernization Policy. The objective of the Policy is to encourage competition amongst Canadian shipyards. For all competitive shipbuilding requirements, as defined in the above-mentioned Policy, subject to the Agreement on Internal Trade , contracting officers must ensure that the details of the restrictions or practices are highlighted in the Notice of Proposed Procurement and the bid solicitation.

1. Procurements by Canada for military goods and services are often related and technically integrated for the same or similar goods and services as United States ( U.S.) military procurements. As a result, Canada and U.S. have agreed to share or permit access to technical data and material that may not be readily accessible for the advancement of a procurement.
2. The contracting officer must be aware that in the procurement planning and strategy development that agreements and processes exist between Canada and U.S. to facilitate access to technical data and material. For more information, see Chapter 9 - Special Procurements.
3. There are three areas of concern to the contracting officer in procurement planning as it applies to military procurements as part of the Canada/ U.S. joint procurement efforts:
   
   1. Joint Certification Program;
   2. Foreign Military Sales; and
   3. U.S. Defense Priorities and Allocations System.

Based on Canada’s obligations under the North Atlantic Treaty Organization (NATO) – Status of Forces Agreement, all solicitations, contracts, and procurements initiated by the Public Works and Government Services Canada Europe Office (PWGSC Europe) in Koblenz Germany must adhere to German law. That being said, all PWGSC Europe procurements must still respect the Acquisitions Program procedures and policies to the greatest extent possible.

A Memorandum of Understanding (MOU) between the Minister of National Defence and the U.S. Secretary of Defense established a Joint Certification Program, which allows certified contractors of each country access, on an equally favourable basis, to unclassified technical data of both countries. It also ensures that effective and appropriate controls and enforcement mechanisms are in place in each country to protect such technical data. The Technical Data Control Regulationsare the authority for implementing this program.

1. The Foreign Military Sales (FMS) program is a mutually beneficial government-to-government method for the procurement of United States (U.S.) defence articles and services.
2. Sole sourcing through the FMS program may be considered as a method of procurement when the goods or services required relate to military equipment of U.S. origin and when, on the basis of the information available at the time, those goods and services are available or can be made available from the U.S. Department of Defense.
3. When Public Works and Government Services Canada Headquarters (PWGSC) determines that a requirement will be sole-sourced through the FMS program, the requisition is reallocated to PWGSC Washington. The decisions to sole source requirements through the FMS program must be adequately documented.
4. More information on the FMS program is provided in section 9.15 United States Foreign Military Sales.

1. The U.S. Defence Priorities and Allocations System (DPAS) is intended to assure the timely availability of industrial resources to meet current national defence and emergency preparedness program requirements and provide an operating system to support rapid industrial response in a national emergency. Priority ratings are intended to support approved defence programs with some exceptions.
2. Contracting officers should seek assistance from the Central Allocations and Defence Priorities Officer, Office of Small and Medium Enterprises and Strategic Engagement to determine whether the system may be utilized for U.S. procurements when dealing with a contract with a defence requirement. Before contract award, and with consideration of the foregoing, contracting officers must insert the appropriate Standard Acquisition Clauses and Conditions Manual clause in all Canadian defence contracts placed with U.S.-based suppliers and in all Canadian defence contracts placed with Canadian-based suppliers.
3. For a variety of reasons, U.S.-based suppliers may be unable to deliver material to Canadian-based contractors, within the timeframes specified, despite the prompt application for and the timely issuance of a priority rating.

1. The Office of Primary Interest (OPI) for specific goods or services is referred to as the Category Management Team and each team has a Category Reviewer responsible for endorsing the creation, extension or renewal of all Standing Offers (SOs) and Supply Arrangements (SAs).
2. Contracting officers are encouraged to engage a Category Reviewer early in and throughout the procurement planning phase to obtain input, with a view to expediting the endorsement process.
3. Before creating, renewing or extending an SO or SA, contracting officers must submit a Category Management Request for Category Reviewer Endorsement form (MSWord Version 105 KB) - (Help on File Formats) to the appropriate Category Reviewer, who will evaluate the request and subsequently:
   1. endorse the request without comment or recommendations;
   2. endorse the request with comments, recommendations, or conditions (conditional endorsement); or
   3. decline the request and provide supporting rationale.
4. Should a required product or service not appear under a specific category, the contracting officer must seek endorsement of the SO or SA from:
   1. the supervisor or manager in the National Capital Area (NCA); or
   2. the Regional Category Reviewer outside the NCA.
5. Supporting rationale from the Category Reviewer must be included in the approval documentation, should the creation, renewal or extension of an existing SO or SA require the duplication an existing SO or SA.
6. Should the Category Reviewer conditionally endorse or decline the request, it may be resubmitted upon its revision.
7. Contracting officers must include the Category Reviewer’s final decision and evaluation documents in the Contract Planning and Advance Approval (CPAA) or Procurement Plan.
8. For details, consult the Decision Tree for Creation, Renewal and Extension of Standing Offers and Supply Arrangements (PDF Version 60.4 KB) - (Help on File Formats).
9. To contact a Category Reviewer consult the Category Management List of Category Reviewers (PDF Version 72.6 KB) - (Help on File Formats).