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Purpose
The purpose of Policy Notification (PN) 120 is to provide updated direction to contracting officers on the allowable use of the non-competitive contracting process for requirements below $25 000 (i.e. low dollar value requirements).
Effective date
Effective immediately, contracting officers are to note the non-competitive contracting process for low dollar value requirements as described below. The Supply Manual has been updated to reflect the change.
Background
The Government Contracts Regulations (GCRs) require the solicitation of bids before any contract is entered into. However, the GCRs also provide exceptions to this rule. One of those exceptions is when the estimated expenditure (i.e. contract value) does not exceed $25 000. Note that requirements for goods valued at $25 000 and greater may be subject to the obligations of the Agreement on Internal Trade (e.g. open competition).
The Supply Manual encouraged contracting officers to solicit bids for low dollar value requirements whenever it was cost effective to do so. To align our procurement practices with the GCR exception and the procurement modernization objective of making it easier for federal government organizations to buy from suppliers, and for suppliers to sell to the Government of Canada, the Supply Manual has been revised.
Policy
Contracting officers may enter into a non-competitive contract without soliciting bids for requirements below $25 000. There have been no changes to: the legal authority to use an exception to soliciting bids as per the GCRs, the limited tendering provisions of Canada’s national and international trade agreements, or the procurement provisions under the Comprehensive Land Claims Agreements.
Revisions to the Supply Manual
In support of this PN, the Supply Manual has been updated. The following subsection of section 3.15 Non-Competitive Contracting Process has been deleted:
- 6.(b)(i) of the GCRs states that where the estimated expenditure does not exceed $25,000, contracts can be awarded without soliciting bids. However, contracting officers are expected to solicit bids whenever it is cost effective to do so.
Refer to "Affected Supply Manual Sections" below to see the updated section in its entirety.
Contact information
Enquiries related to this policy notification can be sent by email to the following address:
PolPrograpprovisionnements.AcquisitionsProgramPolicy@tpsgc-pwgsc.gc.ca.