Further Information
In relation to the present Request for Information (RFI), several suppliers have sent questions regarding
the procurement process. The questions and answers have been grouped together by theme to make
them easier to understand.
The following are the main themes:
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Glossary (main terms used during procurement)
PWGSC’s role and responsibilities during procurement
PWGSC’s values
Guiding procurement process principles
Standing offers
Policy on Government Security
Standard Acquisition Clauses and Conditions (SACC)
Trade agreements
Integrity Provisions (formerly the Code of Conduct and Certifications)
Additional Information
Glossary
Firm price
A price not subject to adjustment for the performance of all or part of the contract. The contractor
assumes full responsibility for all costs under or over the firm price.
FOB destination
Is used in contracts when delivery is at destination and the contractor is responsible for all delivery
charges, administration, costs and risks of transport, and customs clearance, including the payment of
customs duties and applicable taxes; FOB stands for “free on board.”
Note: The following three terms mean roughly the same thing. The difference depends on whether they
are used in relation to a request for standing offer, a request for supply arrangement or the submission
of a bid to perform a contract for goods, services or both.
Offeror
A person or entity (or persons or entities in the case of a joint venture) submitting an offer to supply
goods, services or both, further to a Request for Standing Offer. The term does not include the offeror’s
parent company, subsidiaries, affiliates or sub-contractors.
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Supplier
A person or entity (or persons or entities in the case of a joint venture) submitting a supply
arrangement. The term does not include the supplier’s parent company, subsidiaries, affiliates or subcontractors.
Bidder
A person or entity (or persons or entities in the case of a joint venture) submitting a bid to perform a
contract for goods, services or both. The term does not include the bidder’s parent company,
subsidiaries, affiliates or sub-contractors.
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PWGSC’s role and responsibilities during procurement
Initiating the procurement process
The Government of Canada is one of the largest public buyers of goods and services in Canada. Public
Works and Government Services Canada (PWGSC) purchases approximately $16.05 billion in goods and
services every year on behalf of federal departments and agencies.
As the government’s main buyer of goods and services, PWGSC plays a key role in helping federal
departments and agencies define their requirements or the scope of their work and obtain what they
need at the best value for money.
PWGSC’s procurement activities are carried out under the following legal framework:
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statues and regulations
agreements
policies, directives, procedures and guidelines
the challenge process
The procurement process is initiated when a federal department or agency sends a purchase requisition
to PWGSC. Depending on the requirements, the requisition may be handled by a contracting officer at
headquarters or in a regional office.
In keeping with the Government Contract Regulations, procurement is conducted using:
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a competitive process, wherever possible; or
a non-competitive process (used only in certain special circumstances).
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PWGSC’s values
Service delivery is guided by the following values:
Respect – We are honest, equitable, fair and respectful with our colleagues, partners and clients, all the
while recognizing their individual contributions and diversity.
Integrity – We act with integrity and in the public’s best interest at all times and ensure transparent,
accountable and responsible management at all levels of the organization.
Excellence – We work collaboratively to provide for excellence and professionalism in the delivery of
services to our partners, clients and Canadians while achieving best value for government.
Leadership – We demonstrate leadership through responsible action, a forward-looking perspective and
commitment to continual improvement.
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Guiding procurement process principles
All those involved in the procurement process must demonstrate prudence, probity and transparency at
every stage in the process.
Client services
PWGSC will make every reasonable effort to satisfy its clients’ operational requirements, while seeking
to obtain best value for money in every procurement process.
National objectives
PWGSC’s procurement activities will advance the government’s policies within the limits imposed by
international trade obligations.
Competition
PWGSC’s procurement will be competitive, with specific exceptions.
Fairness
PWGSC will ensure that all the potential suppliers of a particular requirement are subject to the same
conditions.
Accountability
PWGSC is accountable for the integrity of the contracting process.
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5.
Standing offers
What are standing offers?
A standing offer is not a contract. It is an offer submitted by a potential supplier to provide goods or
services at prearranged prices in accordance with set terms and conditions as and when needed. No
contract exists until the government issues a call-up on the standing offer, and the government is under
no obligation to buy the goods or services until that time.
When are standing offers used?
Standing offers are used to meet recurring requirements when departments or agencies are repeatedly
ordering the same goods or services. They may also be used when a department or agency anticipates a
requirement for a variety of good or services for a specific purpose, but where the actual demand is
unknown and where the goods or services must be delivered as and when needed.
Why are standing offers used?
A standing offer is a practical procurement method for saving time and generating savings. When a
standing offer is issued, the department or agency requiring the goods or services deals directly with the
offeror. Call-ups on standing offers are processed more quickly and there is less paperwork since the
prices and conditions were already agreed in advance. Standing offers are also beneficial for taxpayers
because they reduce administrative costs and the need for departments and agencies to carry stocks.
How are standing offers issued?
The process for issuing a standing offer is subject to the regular policies and methods for awarding
contracts (particularly procedures under trade agreements). For a standing offer, you submit a bid in the
same way that you would for other bid solicitations (see the Bidding Process). Therefore, most of
PWGSC’s requests for standing offers valued at $25,000 or more are posted on the Tenders site. For
standing offers valued at $25,000 or less, PWGSC will invite the businesses on its supplier lists to bid.
When a standing offer is issued to your business, you are making a commitment to provide certain
goods or services at prearranged prices throughout the period specified. It is not until the government
issues a call-up on your standing offer that you have a contract for the sum indicated in the call-up.
When are standing offers issued?
There is no rule as to when standing offers are issued. They are usually issued at the beginning of the
federal government’s fiscal year (which is from April 1 to March 31); however, there are many
exceptions. Standing offers are usually in effect for a period of one year, but for some of them this
period may vary. The procurement process for a standing offer begins well in advance of its date of
issue, depending on the nature and complexity of the requirement. It is therefore important to review
requests for standing offers closely, as they may be posted months before the standing offer’s planned
effective date.
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Types of standing offers
PWGSC issues five types of standing offers. The type used depends on the geographical area set
(whether a region or all of Canada) and the number of departments or agencies involved.
i.
National Master Standing Offer (NMSO)
Used across Canada by various departments and agencies.
ii. Regional Master Standing Offer (RMSO)
Used in a specific geographic area by various departments and agencies.
iii. National Individual Standing Offer (NISO)
Used across Canada by a specific department or agency.
iv. Regional Individual Standing Offer (RISO)
Used in a specific geographic area by a specific department or agency.
v. Departmental Individual Standing Offer (DISO)
Used only by PWGSC on behalf of specific departments and agencies.
Process for ordering goods and services
The goods or services covered by a standing offer are ordered using a call-up. The call-up constitutes
acceptance of the standing offer for the goods or services being ordered and is the means of instructing
the supplier to deliver the goods or provide the services. Each call-up on a standing offer constitutes a
separate contract.
Until a call-up is issued, neither party has contractual obligations.
Standing offers are not contracts in the legal sense of the term: either party may terminate a standing
offer by providing the other with notice. However, all call-ups received by a supplier before termination
of the standing offer are legally binding and must be honoured. Departments and agencies order only
those goods and services that they require.
Financial limits
Individual call-ups are limited to the maximum total amount set out in the standing offer.
Can standing offers be established with several suppliers?
Standing offers can be established with several suppliers for the same goods or services. This ensures
that the goods or services will always be available.
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Policy on Government Security
The purpose of the Policy on Government Security with respect to the awarding of contracts is to ensure
that the government’s sensitive information and assets are properly protected when entrusted to the
private sector. PWGSC’s role in this process is to ensure that all individuals and organisations with access
to or in possession of sensitive information or assets have first undergone the necessary security
screening and/or possess the necessary clearance, which is issued by PWGSC’s Canadian Industrial
Security Directorate (CISD).
PWGSC’s Industrial Security Sector is responsible for administering the Industrial Security Program (ISP)
for the public service. The purpose of this program is to ensure the protection of sensitive Canadiangovernment and foreign-government assets and information entrusted to the private sector under
contracts administered by PWGSC or, upon request, under contacts administered by other federal
departments. The CISD is responsible for security-screening private-sector organizations and their
employees requiring access to sensitive government information and/or assets. The ISP also defines the
appropriate security-related terms and conditions that must be included in every contract, and ensures
that contractors comply with the security requirements set by client departments for safeguarding,
disclosing, destroying, removing, modifying and interrupting sensitive government assets and
information.
Personnel Security Screening
The approximate timeframes for conducting personnel security screening for the various levels of
clearance are:
i. Simple Reliability Status: 2 business days
ii. Complex Reliability Status: 52 days (100 days if out-of-country checks required)
iii. Confidential or Secret Clearance: 62 days (plus 100 additional days if out-of-country checks
required)
iv. Top Secret Clearance: 100 days (plus 100 additional days if out-of-country checks required)
v. NATO Clearance: 100 to 200 days (non-Canadian citizens)
Note: Reliability checks can be more complex and therefore take longer to process. This is the case
when fingerprints are requested so that Canada can uniquely identify the individual applying for
reliability status.
Organization Security Screening
The approximate timeframes for conducting organization security screening for the various levels of
clearance are:
i.
Designated Organization Screening (DOS) Clearance: two months (less time if the supplier
responds in a timely manner)
ii. Facility Security Clearance (FSC): up to a year, depending on the complexity of the supplier’s
organization. All the key senior managers and all employees performing work under the contract
must obtain a security clearance.
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Designated Organization Screening (DOS)
A Designated Organization Screening (DOS) clearance allows a registered organization and its employees
with the appropriate security clearance to have access to Protected information or assets or to
restricted work areas.
The main components of the DOS process are:
i. a security screening investigation on and the appointment of a Company Security Officer (CSO);
ii. a signed security agreement; and
iii. approval of the organization’s physical and/or IT security safeguarding capability at its site,
where required.
Once DOS clearance has been granted, the organization is eligible to bid on contracts at the Protected
level. DOS clearance is subject to renewal after a three-year period. The CSO must submit the renewal
forms prior to the renewal date.
Facility Security Clearance (FSC)
A Facility Security Clearance (FSC) allows an organization and its employees with the appropriate
security clearance to have access to information and assets up to the Classified level. It also allows them
to obtain access to information and assets marked as “Canadian Eyes Only,” “COMSEC”
(Communications Security) and “NATO” (North Atlantic Treaty Organization). An FSC is the only
internationally recognized clearance.
The main components of the FSC process are:
i. determination and evaluation of the property;
ii. identification of the owners, directors, officers and/or partners, and selection of Key Senior
Officials (KSOs) for personnel security screening purposes;
iii. a security screening investigation on and the appointment of a CSO;
iv. a signed security agreement; and
v. approval of the organization's physical and/or IT security safeguarding capability at its site,
where required.
Once FSC has been granted, the organization is eligible to bid on contracts at the Protected and
Classified levels. FSC is subject to renewal after a one-year period for Top Secret access and after a twoyear period for Confidential and Secret access. The CSO must submit the renewal forms prior to the
renewal date.
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Standard Acquisition Clauses and Conditions (SACC)
The Standard Acquisition Clauses and Conditions (SACC) Manual provides PWGSC’s suppliers and clients
with information on the clauses and conditions used by the contracting officers in PWGSC’s Acquisitions
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Branch during the process for purchasing goods and services on behalf of client departments. Its
contents are referred to in bidding documents and during contracting activities.
The SACC Manual is designed to make dealing with the government more efficient and cost-effective by
reducing the amount of details in the various procurement documents.
Sections 20 and 21 of the Department of Public Works and Government Services Act set out the
Minister’s contracting powers, including the power to “fix terms and conditions of contracts, and
instructions and terms and conditions with respect to other documents relating to contracts and their
formation.” Section 22 of the Act gives the Minister the power to incorporate clauses and conditions in
contracts by referring to them.
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Trade Agreements
Canada is a signatory to two multinational commercial treaties aimed at reducing the trade barriers
between the signatories:
The North American Free Trade Agreement (NAFTA) and the World Trade Organization Agreement on
Government Procurement (WTO-AGP).
Canada has also signed the Canada-Chile Free Trade Agreement (CCFTA) and the Canada–Peru Free
Trade Agreement (CPFTA). In addition, Canada has signed the Agreement on Internal Trade (AIT) with
the provinces and territories.
Some of these trade agreements have the added force of law because they have been enshrined in
legislation (the North American Free Trade Agreement Implementation Act, the World Trade
Organization Agreement Implementation Act and the Agreement on Internal Trade Implementation Act).
Under each of these trade agreements, PWGSC is required to comply with specific procedures when
carrying out certain procurements. Therefore, for every requisition, a decision must be made as to
whether it is subject to a particular agreement or a combination of agreements. To determine the
extent to which the trade agreements apply, the following must be reviewed: the estimated value of the
procurement (including the Goods and Services Tax or the Harmonized Sales Tax), the client, the type of
good or service (including construction), and any exceptions or exclusions. When a procurement is
subject to more than one agreement, the contracting officer must comply with all the agreements at
once. This is done by applying the procedures that are considered the most rigorous. For example, in the
case of procurements subject to NAFTA, WTO-AGP and AIT, the limited tendering procedures may be
used only in circumstances that are acceptable for limited tendering under all three agreements.
Note that translation and interpretation services (including sign language) are excluded from these
international agreements. However, these services are subject to the Agreement on Internal Trade (AIT).
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Integrity Provisions (formerly the Code of Conduct and
Certifications)
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Before awarding a contract, issuing a standing offer (SO) or supply arrangement (SA) or publishing a list
of qualified suppliers, the contracting officer must first contact the Special Investigations Directorate in
the Departmental Oversight Branch to conduct a check on the supplier or the supplier’s affiliate(s) in
relation to any of the acts or convictions set out in section 01 of the Standard Instructions 2003, 2004,
2006, 2007 or 2008. Some of these acts or convictions will render the bidder or proposed contractor
ineligible to be awarded a contract.
In accordance with the Integrity Provisions, all bidders, offerors and suppliers that are incorporated,
including those bidding as a joint venture, must provide a complete list of names of all the individuals
who currently sit on their board of directors. All bidders, offerors and suppliers bidding as a sole
proprietorship, including those bidding as a joint venture, must provide the name of the owner.
Suppliers bidding as a society, firm or partnership are not required to submit a list of names.
10. Additional Information
Suppliers who wish to obtain more information about the procurement process can visit the following
links:
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Standard Acquisition Clauses and Conditions (SACC) Manual: https://buyandsell.gc.ca/policyand-guidelines/standard-acquisition-clauses-and-conditions-manual
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Supply Manual: https://buyandsell.gc.ca/policy-and-guidelines/Supply-Manual
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Acts and Regulations (including a challenge process) : https://buyandsell.gc.ca/policy-andguidelines/Policy-and-Legal-Framework/Acts-and-Regulations
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Trade Agreements: https://buyandsell.gc.ca/policy-and-guidelines/Policy-and-LegalFramework/Trade-Agreements
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Key Policies and Directives: https://buyandsell.gc.ca/policy-and-guidelines/Policy-and-LegalFramework/Key-Policies-and-Directives
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