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Public sector procurement in Canada is the largest purchasing sector in the country, purchasing around $200 billion dollars annually on goods and services.[i] Public Services and Procurement Canada (PSPC) is the governmental department responsible for most of the purchases the government makes. However, there are instances where some departments will make purchases on their own, based on their expertise of the purchase, for example items such as software, printers, and computers are often purchased by individual departments. Departments also can make purchases themselves based on certain dollar limits. For instance, anything between $25,000 and $100,000 can be purchased directly by departments.[ii]
In Canada there are two types of procurement methods, the first is an open and competitive process – this can include standing offers, supply arrangements and pre-qualify suppliers; the second process is through a sole-source contract where no competitive process is required. For some contracts, depending on the dollar amount, there is a requirement of a public advertisement - this is typically for goods valued over $25,000, services over $84,000 and construction projects estimated over $100,000.[ii]
Register as a Supplier for the Canadian Government
Any business looking to sell to the government must register to become a supplier. To do so you will first need to obtain a business number from the Canada Revenue Agency. You will then have to register through the Supplier Registration Information System (SRI), where you will receive your unique identification number or your procurement business number, which will allow you to work with the federal government. If your business happens to be an Aboriginal business, you’ll also want to have your business included in the Aboriginal Business Directory. Government departments will have certain set-aside contracts available for aboriginal businesses, so being included in the directory will help departments determine whether they can procure goods and services through these set-asides. This can give you an advantage and a better chance of winning certain contracts.[iii]
Selling to the Provinces, Territories and MASH Sectors
Eighty percent of Canada’s governmental procurement comes from the local and regional levels. This level of government includes Canada’s 13 provinces, the territories and MASH (Municipalities, Academic Institutions, Schools and Hospitals) sectors. Through the Canadian Collaborative Procurement Initiative (CCPI), these sectors can procure goods and services through the federal government procurement tools. The goal of this collaboration is to improve the value and efficiency of the government’s procurement process.[iv] As mentioned above, to sell to the government, you must first register to do so.
When provinces and MASH sectors join the CCPI, they can procure goods and services through the PSPC. This not only helps to streamline the process, but also allows suppliers to expand their market by making it easier to sell their goods and services to all levels of government. Twelve of the 13 provinces and the territories are participants of the CCPI, allowing them to use the federal procurement tools, Quebec is the only province that does not participate.
Finding Open Tenders for Your Business
Currently, the PSPC is transitioning over to CanadaBuys, an online procurement suite. This means that you will now have to register your business through a link on the site and will then be able to search for tenders by using keywords and filters, as well as view and bid on open tenders.
One of the more efficient ways of finding open tenders is to become a member of merx, a bidding intelligence service, which allows you to create a profile and start receiving daily emails of matching opportunities. You will also be able to search for opportunities at all levels of government using the Public Tenders section, which allows you to see any opportunities posted by the federal, provincial or MASH sectors. Simply search using keywords and filters such as: GSIN categories, organization, location, solicitation type, etc. By customizing your profile and creating saved searches, the process of finding new open tenders can be made more efficient, allowing you more time to focus on writing a winning proposal!
Resources:
[i] 2021. Canadian Collaborative Procurement Initiative. Benefits of Buying Together. 14 Dec. 21. https://www.tpsgc-pwgsc.gc.ca/app-acq/app-collaborat-procur/index-eng.html
[ii] 2021. Public Services and Procurement Canada. The Basics of Selling to the Government of Canada. Understand the Phases of the Procurement Process. 14 Dec. 21. https://www.tpsgc-pwgsc.gc.ca/app-acq/vendre-sell-eng.html
[iii] 2021. Public Services and Procurement Canada. The Basics of Selling to the Government of Canada. Register to Become a Supplier. 14 Dec. 21. https://www.tpsgc-pwgsc.gc.ca/app-acq/vendre-sell-eng.html
[iv] 2021. Public Services and Procurement Canada. Canadian Collaborative Procurement Initiative. 14 Dec. 21. https://www.tpsgc-pwgsc.gc.ca/app-acq/app-collaborat-procur/index-eng.html
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