Hot Links

Become a TPP

Bureau of Industry & Security

Bureau of Census

China Business Center

Export Admin. Regulations

Find HS Numbers

Importing

Int'l Trade Guides

Int'l Business Planning
Market of the Month

MDEC Membership

MDEC Members Only
Michigan Exports

Michigan Export Services

TPP Only

USDOC Int'l Trade Admin.

WebGuides

What's new

Free Counseling
It doesn't matter whether it's as close as Windsor or as far as Hong Kong or Zimbabwe, the Michigan District Export Council has someone who's been there and done that.  We encourage you to give us a try.

Canadian Government Procurement Opportunities

SUMMARY

U.S. suppliers are eligible to bid on any contract covered under the North American Free Trade Agreement (NAFTA) or the World Trade Organization Agreement on Government Procurement (WTO-AGP) provided all qualification requirements are met. These requirements include an assessment of your financial, technical and managerial skills to ensure that you are able to fulfill the contract.

Next to the U.S. Government, the Canadian Government is the largest purchasing entity in the world procuring in excess of US$9 billion a year in goods, services and construction. Through Canada's largest purchasing organization, Public Works and Government Services Canada (PWGSC), the federal government procures in access of US$6 billion a year. PWGSC handles the procurement for approximately 100 federal departments and agencies, as well as contracts for Major Crown Projects.

PWGSC handles the federal government's procurement requirements in the following areas:

· Architectural and Engineering Consulting Services;
· Construction and Maintenance Services; and
· Goods and Services.

They are responsible for ensuring conformity with Canada's trade obligations under the NAFTA and the WTO-AGP.

STATISTICS ON PURCHASES MADE THROUGH PWGSC

The following represents the top ten customers of PWGSC in FY 2000-2001:

The following are the top ten commodities purchased by PWGSC, on behalf of its customers in FY 2000-2001:

HOW TO FIND OUT ABOUT FEDERAL GOVERNMENT OPPORTUNITIES

PWGSC has one main method of publicly advertising procurement opportunities. This most effective method is through the electronic tendering service (MERX).

MERX 

PWGSC uses the MERX electronic tendering service to solicit proposals over C$25,000 (approx. US$17,500) for most goods and services; over C$80,900 (approx. US$56,000) for most architectural and engineering consulting services and over C$60,000 (approx. US$42,000) for most construction and maintenance services, and over C$10,000 (approx. US$7,000) for printing services. The subscriber fee is CDN$4.95 (approx. US$3.00) per month. For additional information on the MERX system please refer to IMI entitled "GOVERNMENT PROCUREMENT OPPORTUNITIES AT YOUR FINGERTIPS," or visit their website at http://www.merx.com/ , or call 1 (800) 964-6370.

BID METHODS

PWGSC uses six methods to solicit bids.

1. Telephone buys are used for small purchases valued under C$5,000 (approx. US$3,500)

2. Requests for Quotation (RFQ) are used for goods and services valued under C$25,000 (approx. US$17,500)

3. Invitations To Tender (ITT) are used when the contract is valued at more than C$25,000 (approx. US$17,500) and has basic requirements, such as off-the-shelf goods. The supplier complying with all the mandatory requirements will be awarded the contract.

4. Requests For Proposal (RFP) are generally used for contracts valued at more than C$25,000 (approx. US$17,500), however, it is also used when the selection of a supplier is not solely based on the lowest possible price. An RFP is used for procurements where cost-effectiveness is based on evaluation criteria set out in the bid document.

5. Requests For Standing Offer (RFSO) are used when PWGSC would like a company to provide a given good or service at a specified price within a certain time frame. Note that standing offers are not repeat not contracts. You only have a contract if and when the government issues a call-up against your standing offer.

6. Sole Sourcing is a procurement method which PWGSC tries to avoid. This method is used, subject to obligations under the trade agreements, only under the following conditions: 

• there is not enough time to compete the contract because the good or service are required as a result of an emergency,

• there is only one company that provides the goods or service (i.e., the requirement is for a patented or copyrighted product or service, or a prototype),

• it is deemed to be not in the best interest of the public, for example, national security such as classified military or national defense projects.

Helpful hints for Preparing your Bids

Read your bid document completely and thoroughly. This is important even if you've bid on other PWGSC contracts since each bid document is different. All the information you need to know about the bid requirements is in the document.

The bid document will refer to standard clauses and conditions by name and number, therefore, have a copy of the Standard Acquisition Clauses and Conditions (SACC) manual available. Access to the manual is available on the Contracts Canada website, free of charge, at http://www.pwgsc.gc.ca/sacc/choice-e.html.

If a bidders' conference is scheduled, the bid document will specify the date, time and location. These conferences are intended to provide bidders with a clear understanding of the technical, operations and performance specifications, as well as the financial and contracting requirements. If possible, you should plan to attend the bidders' conference.

Ensure that you understand and meet all the mandatory requirements. If you do not meet all of the mandatory requirements, your bid will be automatically disqualified.

Should you require clarification on any part of the bid document, call the contracting officer listed on the front of the document.

Check and double check your figures and quote your price in the specified units.

Ensure that your bid is sent to the correct address and by the required deadline. Bids will only be accepted if they are postmarked prior to the date of bid closing. If necessary, and if the bid document specifies, you may submit your bid by fax, however, immediately send a "hard copy" of your bid.

HOW BIDS ARE EVALUATED

Bids are evaluated based on the criteria set forth in the bid document. Generally a supplier who is able to fulfill all the terms and conditions and offers the lowest price will be awarded the contract. If there is only one response to the bid, PWGSC may attempt to negotiate contract terms and prices.

CONTRACT APPROVAL

Before a contract is awarded, the appropriate level of authority must approve the expenditure. For most expenditures it would be PWGSC, however, for large and complex contacts it would be the Treasury Board.

CONTRACT AWARD

If you are the successful bidder, you will be notified by PWGSC and you will receive a contract. Once you receive the contract, be sure to sign it before returning it.

PAYMENT

PWGSC's policy is to pay a supplier within 30 days of receipt of the invoice. (The invoice must be correctly prepared and sent to the location specified in the contract). If you do not get paid within the 30 days, and PWGSC is at fault, you are entitled to interest at the rate of 3 percent above the average Bank of Canada rate.

DISPUTE RESOLUTIONS

If you think that your bid was incorrectly handled you should contact the contracting officer directly. If this fails to resolve the issue to your satisfaction, you may file a bid challenge with the Canadian International Trade Tribunal. They receive, investigate and rule on all bid challenges arising under the WTO-AGP and NAFTA. You must submit your complaint in writing to the CITT within 10 days of knowing of a reason to complain. They have the powers of a federal court and normally deliver a decision within 90 days. The Commercial Service at the U.S. Embassy in Ottawa, Canada is also able to assist you in this regard.

CONTACT INFORMATION

Contracts Canada Information Centre
Public Works and Government Services Service Canada
Place du Portage, Phase III
Tower C 3C1
11 Laurier Street
Hull, Quebec
Canada K1A 0S5
InfoLine: (800) 811-1148
Fax: (819) 956-6123
Web: http://contractscanada.gc.ca
Contracts Canada is an agency of the Federal Government of Canada that will assist buyers in increasing awareness and simplifying access to federal government purchasing. They have established an internet site (http://contractscanada.gc.ca) which provides government purchasing information online.

Canadian International Trade Tribunal
Procurement Review Division
Standard Life Centre, 15th Floor
333 Laurier Avenue West
Ottawa, Ontario
Canada, K1A 0G7
Tel: (613) 990-2452
Fax: (613) 990-2439
e-mail: secretary@citt.gc.ca
web: www.citt.gc.ca

Access to Information and Privacy
Public Works and Government Services Canada
15A2, Place du Portage, Phase III
Hull, Quebec
Canada K1A 1H2
Tel: (819) 956-1820
Fax: (819) 994-2119

CONTACT US!

For more information on this report contact Lucy Latka, Commercial Specialist at the U.S. Embassy, Ottawa, Canada, phone: (613) 688-5219, fax: (613) 238-5999 or by e-mail: lucy.latka@mail.doc.gov 

For more information on doing business in Canada, U.S. companies should contact the U.S. Commercial Service in Canada (CS Canada). CS Canada offers a variety of resources and services (including market research, agent/distributor searches, corporate matchmaking, etc.) to assist U.S. exporters of non-agricultural products entering new markets. The Canadian market, in particular, represents a good "first step" for new-to-export companies seeking a new and exciting opportunity, and we welcome the chance to assist you. Think "Canada First!"

CS offices in Canada can be contacted at the following telephone numbers: CS Ottawa (613) 688-5219; CS Halifax (902) 429-2482; CS Montreal (514) 908-3673; CS Quebec City, (418) 692-2087; CS Toronto (416) 595-5414; CS Calgary (403) 265-2116; and CS Vancouver (604) 685-3382. CS Canada is also on the World Wide Web at: http://www.buyusa.gov/canada/en/. 

We want to know about your successes! We need to know how our efforts best assist U.S. companies. If this report alerts you to a commercial opportunity in Canada, which you subsequently pursue successfully, please let us know!

To the best of our knowledge, the information contained in this report is accurate as of the date published. However, the Department of Commerce does not take responsibility for actions readers may take based on the information contained herein. Readers should always conduct their own due diligence before entering into business ventures or other commercial arrangements. The Department of Commerce can assist companies in these endeavors.

Date Updated: March 27, 2007