ARCHIVED Canadian Content Definition

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Attention! As part of the Acquisitions Program’s transformation agenda, PSPC is planning to archive and migrate the SACC manual to the CanadaBuys website. The SACC manual will continue to be available on the BuyandSell website to ensure continuity of service during this transition period. At this time, an initial version of the archived version of the SACC has been posted on CanadaBuys. We encourage you to go visit the site and get comfortable with the new format of the SACC at the following:

Archived - Standard Acquisition Clauses and Conditions Manual | CanadaBuys

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Archived Content

Information identified as archived is provided for reference, research or recordkeeping purposes. It is not subject to the Government of Canada Web Standards and has not been altered or updated since it was archived. Please contact us to request a format other than those available.

Legal text for SACC item

1.     Canadian good: A good wholly manufactured or originating in Canada 
       is considered a Canadian good.  A product containing imported 
       components may also be considered Canadian for the purpose of this 
       policy when it has undergone sufficient change in Canada, in a 
       manner that satisfies the definition specified under the North 
       American Free Trade Agreement Rules of Origin (see Supply Manual, 
       Annex 5.5:

       For the purposes of this determination, the reference in the NAFTA 
       Rules of Origin to "territory", is to be replaced with "Canada".  
       For photocopiers, computers and office equipment within Federal 
       Supply Classification (FSC) groups 36, 70 and 74, only the products 
       of MERIT/CIRCLE firms or companies in Priority Group 1 prior to 
       April 1992 are considered Canadian (see paragraph 7.(a)).

2.     Canadian service: A service provided by an individual based in 
       Canada is considered a Canadian service.  Where a requirement 
       consists of only one service, which is being provided by more than 
       one individual, the service will be considered Canadian if a minimum 
       of 80 percent of the total bid price for the service is provided by 
       individuals based in Canada.

3.     Variety of goods: When requirements consist of more than one good:

       (a)    aggregate evaluation: no less than 80 percent of the total 
              bid price must consist of Canadian goods; or,

       (b)    item by item evaluation: in some cases, the bid evaluation 
              may be conducted on an item-by-item basis and contracts may 
              be awarded to more than one supplier. In these cases, 
              suppliers will be asked to identify separately each item that 
              meets the definition of Canadian goods.

4.     Variety of services: For requirements consisting of more than one 
       service, a minimum of 80 percent of the total bid price must be 
       provided by personnel based in Canada.

5.     Mix of goods and services: When requirements consist of a mix of 
       goods and services, no less than 80 percent of the total bid price 
       must consist of Canadian goods and services (as defined above).

6.     Annex 7.8 of the Supply Manual (
       text/sm/chapter07-e.html#annex7.8) shows how Canadian content is 
       determined for a mix of goods, a mix of services or a mix of goods 
       and services.

7.     Other Canadian goods and services:

       (a)    CIRCLE Canada and MERIT Partnership Program: For photocopiers, 
              computers and office equipment within FSC groups 36, 70 and 
              74, only the products of the following firms are considered 
              Canadian goods:

              (i)    MERIT Partner under the MERIT Partnership Program (
                     en/it04598e.html) (administered by Industry Canada [IC] 
                     and Public Works and Government Services Canada [PWGSC]);

              (ii)   Companies which, on March 31, 1992, were allocated to 
                     Priority Group 1 under the Priority Groups Policy in 
                     effect at that time; or

              (iii)  CIRCLE Canada (
                     /inict-tic.nsf/en/it04597e.html) companies as agreed 
                     on by IC and PWGSC. 
       (b)    Textiles: Textiles are considered to be Canadian goods 
              according to a modified rule of origin, copies of which are 
              available from the Clothing and Textiles Division, Logistics, 
              Electrical, Fuel and Transportation Directorate.