1. Supply Manual Glossary

Attention! As the transition to CanadaBuys is ongoing, Supply Manual references to ABE are to be interpreted as a generic system reference only. Users of the SAP Ariba environment should adapt their activities accordingly.

Buyers are advised to consult the tools available on CanadaBuys for guidance and procedures on completing procurement transactions in the SAP Ariba environment.



  1. A deliberate and intentional agreement or consent to accept goods and services rated as acceptable.
  2. Receipt by the consignee for a shipment, thus terminating the common carrier liability subject to claim for shortages or damages if such exist. (2010-01-11) (acceptation)


  1. A formal record of a particular type of transaction such as an asset, liability, proprietorship, revenue or expense, expressed in money or other unit of measurement and kept in a ledger.
  2. The bookkeeping records of any organization, including journals, ledgers, vouchers and other supporting papers.
  3. Defence Production Act. Means the Defence Production Loan Account. (See 9.25.1)
  4. Canadian Institute of Chartered Accountants (CICA). Collective term for the whole set of financial statements of an organization.
  5. Records of the cost to the contractor of the work performed under a Public Works and Government Services Canada contract and of all expenditures and commitments made by the contractor in connection with the contract and invoices, receipts and vouchers relating to it. (2010-01-11) (compte)

accountable advance

  1. Funds provided to a contractor to purchase spare parts, which are not an item of supply in the supply system, and that will be used in the repair and overhaul of government equipment.
  2. Advance funds provided for a specific purpose, and chargeable to the appropriation for the service in respect of why the advance was made.
  3. Accountable Advance Regulations. A sum of money advanced from and temporarily charged to an appropriation; for example, a revolving fund, working capital advance, special account. (2010-01-11) (avance à justifier)

acquisition card

A charge card issued under a contract between a card issuer and Canada for the procurement and payment of goods and services for authorized official government business. (2016-04-04) (carte d'achat)


  1. The amount of variation permitted by an adjustment clause in the contract, which generally permits a change upward or downward in the price or obligations, in case certain events transpire.
  2. Refer to economic price adjustment. (2010-01-11) (rajustement)

Administrative Agreement

A negotiated agreement between a supplier and PWGSC pursuant to the Ineligibility and Suspension Policy. (2016-04-04) (entente administrative)


(For purposes of the Integrity Regime.)

  1. A person, including, but not limited to, parent companies, subsidiaries, whether or not wholly or partially owned, as well as a senior officer;
  2. one person is an affiliate of another person if,
    1. one person is controlled by the other person;
    2. both persons are controlled by a third person;
    3. both persons are under common control; or
    4. each person is controlled by a third person and the third person by whom one person is controlled is affiliated with the third person by whom the other person is controlled;
  3. indicia of control, whether direct or indirect, exercised or not, include, but are not limited to, common ownership, common management, identity of interests (often found in members of the same family), shared facilities and equipment or common use of employees;
  4. an affiliate may also exist in instances of an amalgamation or merger. Where at any time two or more corporations (in this provision referred to as the “predecessors”) amalgamate or merge to form a new corporation, the new corporation and any predecessor are deemed to have been affiliated with each other where they would have been affiliated with each other immediately before that time if,
    1. the new corporation had existed immediately before that time; and
    2. the persons who were the shareholders of the new corporation immediately after that time had been the shareholders of the new corporation immediately before that time. (2016-04-04) (affilié)

Advance Contract Award Notice (ACAN)

A notice posted on the Government Electronic Tendering Service (GETS) advising suppliers in advance that a contract will be awarded to a particular supplier and to invite them to submit a statement of capabilities if they think that they meet the requirements set out in the ACAN. (2013-06-01) (Préavis d'adjudication de contrat [PAC])

advance payment

A payment made in advance, by or on behalf of Canada, under the contract, and before the good is delivered or the service rendered. (2010-01-11) (paiement anticipé)

after-imposed duties

All duties that the contractor has to pay that were not applicable on the contract date. (2010-01-11) (droits imposés ultérieurement)

after-imposed taxes

All applicable Goods and Services Tax/Harmonized Sales Tax exempted or excluded on the reference date but for which exemption was later removed or reduced such that the contractor is required to pay or bear additional taxes as a result of legislative, judicial or administrative action, taking effect after the reference date. This also includes increases announced after the reference date affecting the rate of tax, whether specific or percentage. (2010-01-11) (taxes imposées ultérieurement)

after-relieved duties

All duties that were applicable on the contract date but were no longer applicable at the time of delivery. (2010-01-11) (droits dégrevés ultérieurement)

after-relieved taxes

All applicable Goods and Services Tax/Harmonized Sales Tax that would have been payable on the transaction or property covered by contract, but which the contractor is not required to pay or bear, or for which the contractor obtains a refund or drawback, as a result of legislative, judicial or administrative action taking effect after the reference date. (2010-01-11) (taxes dégrevées ultérieurement)


A relationship between two persons, by agreement or otherwise, where one (the agent) may act on behalf of the other (the principal) and bind the principal by words and actions. (2010-01-11) (agence)


Person who acts on behalf of another person (the principal) in dealings with third parties. (2010-01-11) (agent)


A consensus of two or more persons in respect of anything done or to be done. Although used as synonymous with “contract”, agreement may have a broader meaning. (2010-01-11) (accord)

Agreement on Internal Trade (AIT)

An intergovernmental trade agreement signed by Canadian First Ministers that came into force in 1995. The AIT was replaced by the CFTA on July 1, 2017. (2018-12-06) (Accord sur le commerce intérieur [ACI])

Agreement to Implement Employment Equity

Contractors who bid on an initial goods and services contract, a standing offer, or a supply arrangement estimated at $1 million or more (including applicable taxes) with the Government of Canada must first certify their commitment to implement employment equity by signing the Agreement to Implement Employment Equity prior to contract award. The Agreement to Implement Employment Equity is administered by Employment and Social Development Canada – Labour Program. (2014-06-26) (Accord pour la mise en oeuvre de l'équité en matière d'emploi)


An agreed addition to, deletion from, correction or modification of a contract. (2010-01-11) (modification)

appropriate minister

  1. With respect to a department named in Schedule I of the Financial Administration Act(FAA) the minister presiding over the department.
  2. With respect to a division or branch of the public service of Canada set out in column I of Schedule I.1 of the FAA, the minister set out in column II of that Schedule.
  3. With respect to a commission under the Inquiries Act, the minister designated by order of the Governor in Council.
  4. With respect to the Senate, the Speaker; with respect to the House of Commons, the Board of Internal Economy, and with respect to the Library of Parliament, the Speakers of the Senate and the House of Commons.
  5. With respect to a departmental corporation, the minister designated by order of the Governor in Council.
  6. With respect to a Crown corporation, the appropriate minister as defined in subsection 83(1) of the FAA. (2010-01-11) (ministre compétent)

architectural and engineering service contract

A contract for the provision of services to provide a range of investigation and recommendation reports, planning, design, preparation, or supervision of the construction, repair, renovation or restoration of a work and includes contract administration services, for real property projects. (2017-05-12) (marché de services d'architecture et de génie)


Any owned physical object (tangible) or right (intangible) having economic value to its owner. See production assets. (2010-01-11) (actif)


  1. A transfer of a right from either party to the other, as mutually agreed upon.
  2. Lease. In this context, the entire unexpired residue of the lease is transferred.
  3. For the benefit of creditors. Regulated by the Bankruptcy and Insolvency Act, it is an assignment made in favor of the trustee in bankruptcy who takes it in trust for the general body of creditors of the insolvent assignor for realization and distribution in accordance with the statute.
  4. Book debts. Right to collect and receive all accounts receivable, present and future, of the borrower. This right is exercised by the lender, which signifies to the debtors of the borrower that the lender requires them to pay the outstanding balance on their account. (2010-01-11) (cession)

assignment of contract

The transfer by the contractor of responsibility for performance of all or part of the contract to a third party. (2010-01-11) (cession d'un contrat)

associated government

Government of United Kingdom, any other government of the Commonwealth of Nations, the government of a country that is a member of the North Atlantic Treaty Organization (NATO) or the government of any other country designated by the Governor in Council, as being a country in defence of Canada. (2010-01-11) (gouvernement associé)


  1. General. An examination, full scrutiny and verification of accounting records, usually by a third person.
  2. An examination of all elements of actual costs incurred by the contractor and the determination of actual profit realized. See discretionary audit. (2010-01-11) (vérification)


  1. The right to perform certain acts, or prescribe rules governing the conduct of others.
  2. Generally, under balanced schemes of management, administrative authority represents the activation of corporate policy and is coupled with responsibility and accountability.
  3. A person commonly regarded as possessing an extensive knowledge in any given field. (2010-01-11) (pouvoir)

Automated Vendor Rotation System (AVRS)

A system that maintains a record of bid opportunities for the suppliers from each source list. AVRS records are only maintained on regional type satellites. (2010-01-11) (Système automatisé de rotation des fournisseurs [SARF])


The notification to a bidder or tenderer of acceptance of a bid or tender, which brings a contract into existence. (2010-01-11) (attribution)



  1. A condition where an insolvent company or person either voluntarily institutes bankruptcy proceedings by applying to have a licensed trustee in bankruptcy appointed or where the company's or person's creditors are successful in petitioning the court to issue a receiving order, the effect of which is to authorize transfer of all assets of the bankrupt debtor to a licensed trustee in bankruptcy for realization or distribution to the creditors.
  2. The state or condition of one who is bankrupt, whereby the property of a person or company, being legally declared unable to meet debts, is vested in an official trustee for distribution among creditors. (2010-01-11) (faillite)

basic procurement

A basic procurement has the characteristics of clarity and completeness. The requirement is known and identifiable, and evaluation methods are simple. The methods for soliciting bids and contracting are pre-determined and set out. There is little need for analysis or speculation. There is an absence of change with the procurement process and control is within the department's domain of authority. There may be tools and instruments available that support the character of Basic. There is usually a low level of risk. (2011-10-04) (approvisionnement de base)

best value

The combination of price, technical merit, and quality, as determined by the contracting authority before the solicitation and set out in the evaluation criteria, and which forms the basis of evaluation and negotiation between buyers and sellers to arrive at an acceptable basis for a purchase and sale. (2010-01-11) (meilleur rapport qualité-prix)


An offer to provide services or supply goods as a result of a solicitation. (2010-01-11) (soumission)

bid bond

  1. A bond given to guarantee entry into a contract. This bond is given to indemnify Canada against increased costs if the bidder does not carry out the specified undertaking to enter into a contract. A bond given by a person to guarantee entry into a contract if the contract is awarded to that person.
  2. See security deposit, government guaranteed bond and surety bond. (2010-01-11) (cautionnement de soumission)

bid security

A bid bond or a security deposit given by a person to Canada to guarantee entry into a contract if the contract is awarded to that person. (2010-01-11) (garantie de soumission)

bid solicitation

An invitation, verbal or written, to suppliers to submit a bid, quotation or offer. (2010-01-11) (demande de soumissions)


Person or entity (or, in the case of a joint venture, the persons or entities) submitting a bid to perform a contract for goods, services or both. It does not include the parent, subsidiaries or other affiliates of the bidder, or its subcontractors. (2009-12-15 ) (soumissionnaire)

bidders' conference

A meeting chaired by Public Works and Government Services Canada to discuss with potential bidders, technical, operational and performance specifications, and/or the full extent of financial, security and other contractual obligations related to a solicitation. (2010-01-11) (conférence des soumissionnaires)

bill of exchange

This includes certified cheques, bank drafts and money orders, and are defined in the Bills of Exchange Act as "an unconditional order in writing, addressed by one person to another, signed by the person presenting it, requiring the person to whom it is addressed to pay, on demand or at a fixed or determinable future time, a sum of money to or to the order of a specified person or to the bearer”. (2010-01-11) (lettre de change)

bill of sale

An instrument in writing under which the title to personal chattel is transferred. A mere receipt for payment is not a bill of sale. The instrument must actually signify a transfer of title of the goods to the buyer. (2010-01-11) (contrat de vente)

blanket order case

Supply arrangement that is negotiated with the United States Government under the auspices of Foreign Military Sales (FMS). It allows clients to submit detailed requirements directly to the identified U.S. military organization. This arrangement, which is similar in nature to the standing offer method of procurement, is normally utilized when there is no definite listing of items or of quantities required. This category of FMS cases (contracts) does not necessitate the purchase of equity. See 9.20. (2010-01-11) (dossier de commandes - cadres)


Call-up Against a Standing Offer

An order issued under the authority of a duly authorized user against a particular standing offer. Communication of a call-up against a standing offer to the offeror constitutes acceptance of the standing offer to the extent of the goods, services, or both, being ordered and causes a contract to come into effect. The parties to the contract that comes into effect when a call-up against a standing offer is made are Canada, as represented by the Minister of Public Works and Government Services and the offeror. (2010-01-11) (commande subséquente à une offre à commandes)

Canadian General Standards Board (CGSB)

A part of Public Works and Government Services Canada accredited by the Standards Council of Canada as a standard development organization and an ISO 9000 registrar. CGSB is mandated to provide a range of standardization and conformity assessment services in support of government procurement and other government requirements, such as:

  1. development of standards, specifications, manuals and guides;
  2. listings of prequalified products and services; and
  3. Quality Systems Division. (2010-01-11) (Office des normes générales du Canada [ONGC])

Canadian goods

  1. For the purposes of the Canadian Content Policy. Generally, with the exception of goods covered by the International Trade Agreements, Canadian goods are those wholly manufactured or that originate in Canada or they are products containing imported components that have undergone sufficient change in Canada to be considered Canadian.
  2. For the purposes of Taxes and Duties. goods that are the growth, produce or manufacture of Canada or that are of foreign origin but are duty and tax paid and have thus been entered for consumption into Canada.
  3. Addition to Canadian Goods Abroad. Goods that are exported from Canada for the purpose of being incorporated with foreign articles abroad.
  4. Processing of Canadian Goods Abroad. This refers to goods that are exported for a phase of production, which cannot be completed in Canada. (2010-01-11) (marchandises canadiennes)

Canadian industry

All commercial enterprises resident and operating in Canada and incorporated, registered, or recognized as such, under federal or provincial legislation and that carry on activities in Canada. This includes industrial research institutes jointly operated by groups of such commercial enterprises. (2010-01-11) (industrie canadienne)

Canadian International Trade Tribunal (CITT)

An administrative tribunal operating within Canada's trade remedies system. It is an independent quasi-judicial body that carries out its statutory responsibilities in an autonomous and impartial manner and reports to Parliament through the Minister of Finance. (2010-01-11) (Tribunal canadien du commerce extérieur)

Canadian services

Services provided by Canadian-based personnel. (2010-01-11) (services canadiens)

capital cost allowance

Depreciation of fixed assets over a number of accounting periods. (2010-01-11) (déduction pour amortissement)

capital lease

A lease that, from the point of view of the lessee, transfers substantially all the benefit and risk incidents to ownership of the property to the lessee. (2010-01-11) (bail de location-acquisition)


Any person who, in a contract of carriage, undertakes to perform or to procure the performance of transport by rail, road, air, sea, inland waterway or by a combination of such modes. (2010-01-11) (transporteur)

cash flow

A tracing, in successive steps, of individual items or aggregates of income or expenditure from their first recognition in the accounts to their final disposition or loss of identity. (2010-01-11) (mouvement de trésorerie)

ceiling price

The maximum amount of money to be paid to the contractor for the prescribed work as established in the contract. When a ceiling price is used in a contract, the contractor is not entitled to additional compensation. A ceiling price is used when the level of effort or quantity can be realistically estimated, and there is full agreement between the parties as to what constitutes the prescribed work. (2017-08-17) (prix plafond)

Certified Products List (CPL)

The CPL is identical to the Qualified Products List (QPL) except that there are more frequent audits and tests. This higher level of product assurance permits the qualifying authority, as a certification agency, to enter into a licensing agreement with supplier(s), allowing them to use a registered certification mark on their products and promotional literature. (2010-01-11) (liste des produits certifiés [LPC])

classified information

Information related to the national interest that may qualify for an exemption or exclusion under the Access to Information Actor Privacy Actand the compromise of which would reasonably be expected to cause injury to the national interest. (2010-01-11) (information classifiée)


A department, agency, branch, division, Crown corporation or other entity for whom PWGSC procures goods and services. (2010-01-11) (client)


A secret understanding between two or more persons to take advantage of another with the object of depriving him or her of a right or property. It implies the existence of fraud of some kind, the employment of fraudulent means, or of lawful means for the accomplishment of an unlawful purpose. (2010-01-11) (collusion)

Co-operative Logistics (COLOG)

A supply arrangement, which is negotiated with the United States Government under the auspices of Foreign Military Sales (FMS). It enables the Canadian Department of National Defence to obtain directly from the supply systems operated by the United States Department of Defence, spare parts and accessories needed for Crown-owned military equipment of U.S. origin. This category of FMS cases (contracts) necessitates the purchase of equity in the supply system of the appropriate military organization. See 9.15(FMS) and 9.20(COLOG). (2010-01-11) (COLOG)

commercial practice

Custom or usage of the particular trade in which usage or custom is ordinary and reasonable. Evidence of a trade usage may be given in aid of interpreting a contract. (2010-01-11) (pratique commerciale)

commercial products

Products of a class or kind that are used regularly for other than government purposes and are sold by the contractor in the course of carrying out normal business operations, which are regularly sold by the contractor to clients other than the government in sufficient quantities to constitute a real commercial market, and for which there is sufficient number of buyers, other than the government, of establishing a going-price for the products. (2010-01-11) (produits commerciaux)

commercial services

Services of a class or kind that are used regularly for other than government purposes and are sold by the contractor in the course of carrying out normal business operations, which are customarily provided by the contractor with personnel regularly employed and equipment, if necessary, and regularly maintained for the purpose of supplying such services, and for which there is a sufficient number of buyers, other than the government, to establish a going-price for the services. (2010-01-11) (services commerciaux)


Raw material, perishable goods, fabricated article or item of production or supply utilized in everyday endeavors and which is identified by contents, physical nature or characteristics. (2010-01-11) (produit)

common carrier

Any person who undertakes and is authorized to transport persons or goods as a regular business. (2010-01-11) (transporteur public)

common ownership control

The assets of an enterprise or other organization are held indivisibly rather than in the names of the individual members. Consequently, rather than being “owners” of the enterprise, its members are held to be trustees of it and its assets for future generations. Common ownership is a way of “neutralizing” capital, and vesting control of an enterprise by virtue of participation in it, rather than by the injection of capital. (2010-01-11) (contrôle collectif)

Common Service Agency

  1. An agency whose activities are directed mainly toward serving other departments and agencies.
  2. Public Works and Government Services Canada is a common service agency. (2010-01-11) (organisme de services communs)


See corporation. (2010-01-11) (compagnie)

competitive bid solicitation

Solicitation of bids from two or more sources. (2010-01-11) (demande de soumissions concurrentielle)

competitive bidding

A process that requires that all bidders be placed on an equal footing, and that they bid under the same terms and conditions. (2010-01-11) (soumission concurrentielle)

competitive contract

A contract where the process used for the solicitation of bids enhances access, competition and fairness and assures that a reasonable and representative number of suppliers are given an opportunity to bid. (2010-01-11) (contrat concurrentiel)

complex procurement

A complex procurement has the characteristic of dealing with the unknown. It requires creativity and ongoing development. It is based on achieving a goal/target and driven by managing change/phases. Pre-established methods of supply may have to be modified and procurement strategies and evaluation methodologies may have to be researched or developed. The procurement may involve partnerships with clients, multiple stakeholders, and control may be shared. Contract administration is detailed and extensive and may be unpredictable. There may be a high level of risk (public sensitivity, product, impacts). (2011-10-04) (approvisionnement complexe)

compliance review

This refers to a compliance review of a representative selection of contractors that will be conducted periodically by Human Resources and Skills Development Canada to assess compliance with the employment equity program criteria and the results obtained. (2010-01-11) (vérification de conformité)

Comprehensive Land Claims Agreements

  1. Comprehensive Land Claims Agreements (CLCAs) are negotiated in areas of Canada where Aboriginal rights and title have not been addressed by treaty or through other legal means. These agreements are modern-day treaties between Aboriginal claimant groups, Canada and the relevant province or territory. While each one is unique, these agreements usually include such things as land ownership, money, wildlife harvesting rights, participation in land, resource, water, wildlife and environmental management as well as measures to promote economic development and protect Aboriginal culture. Many agreements also include provisions relating to Aboriginal self-government.
  2. CLCAs are law. The CLCA obligations are legally binding because they are contained in agreements signed by Canada and backed by legislation. (2013-11-06) (ententes sur les revendications territoriales globales)


Cryptographic, transmission and emission security measures applied to information stored, processed or transmitted electronically; a subset of information technology security. (2010-01-11) (COMSEC)


  1. Contract law.
    1. A term or an obligation in the contract that goes directly to the substance of the contract or is essential to its very nature that its non-performance may be fairly considered by the other party as a substantial failure to perform the contract at all.
    2. A provision making an obligation subordinate or contingent upon a future and uncertain event.
  2. Implied condition. One created by law without any words used by the parties, whether the parties had it in their minds at the time or not. (2010-08-16) (condition)


Level of classification that applies to information and assets whose compromise could reasonably be expected to cause injury to the national interest. (2010-01-11) (confidentiel)


The person to whom goods are shipped. (2010-01-11) (destinataire)


Goods shipped for future sale or other purposes. The ownership of the goods (title) remains with the shipper (consignor). The receiver (consignee) is accountable for the goods after accepting them. Consigned goods are a part of the consignor's inventory until sold. The consignee may be the eventual purchaser, may act as the agent through whom the sale is effected, or may otherwise dispose of the goods in accordance with its agreement with the consignor. (2010-01-11) (expédition)

construction contract

  1. Includes an agreement for the supply and erection of a prefabricated structure. The mere purchase of a prefabricated structure would be a "goods contract." However, a subsequent erection contract would be a "construction contract”.
  2. A contract entered into for the construction, repair, renovation or restoration of any work except a vessel and includes: a contract for the supply and erection of a prefabricated structure; a contract for dredging; a contract for demolition; or a contract for the hire of equipment to be used in or incidentally to the execution of any contract referred to in this definition. (2010-01-11) (contrat de construction)


An individual or entity that provides advice or other professional services to Canada. A consultant serves in an outside independent advisory capacity to an officer or department, as distinguished from one who serves as an employee in performance of a department's duties and responsibilities. A consultant expresses views or gives opinions on problems or questions as requested, but does not perform, supervise, nor take responsibility for the performance of operating functions. Ordinarily, consultants are experts in a particular field in which advice is given. A consultant need not be a specialist; the expertise may consist of broad administrative, professional or technical experience, indicating ability and knowledge, which will make the advice a distinctive value to the client. The work performed under the contract is the provision of advice. (2010-01-11) (expert-conseil)

contingent liability

A legal or financial obligation that may arise as a result of a future and uncertain event. A liability which is not now fixed and absolute, but which will become so in case of the occurrence of some future and uncertain event. A potential liability, e.g. pending lawsuit, disputed claim. (2010-01-11) (dette éventuelle)


  1. An agreement between two or more persons, which creates an obligation to do or not to do a particular thing. Its essentials are competent parties, subject matter, a legal consideration, mutuality of agreement and mutuality of obligation.
  2. Under the Government Contracts Regulations,a contract means a construction contract, a goods contractor and a service contract entered into on behalf of Canada by a contracting authority. (2010-08-16) (contrat)

contract approval authority

The authority delegated by the Minister of PWGSC to the person designated to occupy a position, that is, the incumbent of a position, to approve on his/her behalf submissions to enter into contracts, to amend contracts or to issue standing offers up to specified dollar limits. See contract signing authority. (2010-01-11) (pouvoir d'approbation des contrats)

Contract Claims Resolution Board (CCRB)

CCRB resolves claims resulting from contract disputes in a more economical, quicker and less formal process. This Board takes a common sense alternative dispute resolution approach to problems and seeks to reach settlements that are acceptable to all parties. A summary of the dispute resolution processes of the Contract Settlement Board and the Contract Dispute Advisory Board is set forth in 8.145and 8.150respectively. (2010-01-11) (Conseil de règlement des différends contractuels)

contract date

The effective date of the contract. (2010-01-11) (date du contrat)

contract dispute
Matter of dispute in respect of a contract that cannot be resolved between the contractor or its authorized representative and the contracting officer designated in the said contract. (2010-01-11) (différend contractuel)

contract for service

  1. A contract in which one party (the contractor) agrees to provide services to another with no day-to-day supervision or control. It normally implies the accomplishment of a specified job or task to achieve a prescribed objective.
  2. An employer-employee relationship does not exist in contracts for services. (2010-01-11) (contrat de services)

contract price

  1. General. The price or price formula stipulated in a contract of purchase or sale. It is also referred to as firm price, target price, cost price, etc.
  2. PWGSC contract. The amount expressed in the contract to be payable to the contractor for the work. (2010-01-11) (prix contractuel)

contract security

A payment bond or a performance bond given on behalf of a person to Canada, to make good on any default by that person under the contract by compensating Canada, or completing the performance of the contract to the extent required by the terms and conditions of the payment bond or performance bond, or a security deposit given by the person to Canada to secure the performance of the contract to the extent required by the terms and conditions of the contract. (2010-01-11) (garantie contractuelle)

contract signing authority

The authority delegated by the minister of PWGSC to the person designated to occupy a position, that is, the incumbent of a position, to sign on his/her behalf contract, contract amendment or standing offer documents after ascertaining that the approval authority has been duly granted and ensuring that the terms and conditions written in the documents reflect those approved by the contract approval authority. See contract approval authority. (2010-01-11) (pouvoir de signature des contrats)

contracting authority

  1. The appropriate minister, as defined in paragraph (a) or (b) of the definition "appropriate Minister" in section 2 of the Financial Administration Act.
  2. A corporation named in Schedule II of the Financial Administration Act.
  3. Defence Construction (1951) Limited, the National Capital Commission or the National Battlefields Commission. See also contract approval authorityand appropriate minister.
  4. The person authorized to enter into a contract on behalf of Canada. (2010-01-11) (autorité contractante)


  1. General. This refers to any one of the parties to a contract.
  2. One who contracts to perform work or furnish materiels in accordance with a contract. (2010-01-11) (entrepreneur)


The process by which the activities of a project or organization conform to a desired plan of action. Examples of control elements are: authority and capacity for its exercise, common understanding of purpose, objectives, plan of organization and action, assumption of responsibility by organizational units, policies governing courses of action, standards of performance appraisals and monitoring of performance, and ability to convert or modify performance. (2010-01-11) (contrôle)

controlled goods

Controlled goods are defined under the schedule to the Defence Production Act. The goods listed in the schedule to the Export Control List made under section 3 of the Export and Import Permits Act are controlled goods. (2010-01-11) (marchandises contrôlées)


  1. An exclusive statutory right of those such as authors, publishers, composers, etc., to control the publication/dispositions of their works of art, literature, music, films, pictures, etc., which is protected by the Copyright Act of Canada. Under the Geneva Convention of 1952 to which Canada became a party in 1962, international copyright is obtained without any formalities by placing on the work the symbol 8, identifying the name of the copyright holder in the year of the first publication.
  2. The exclusive right of printing or otherwise multiplying copies of information and data.
  3. For a more comprehensive definition, see section 3 of the Copyright Act. (2010-01-11) (droit d'auteur)


CORCAN includes the Correctional Services Canada (CSC) Industries, and the Automated Document Processing and Agribusiness programs. Purchases by PWGSC , on behalf of clients, from CSC will be conducted through CORCAN. See 9.30. (2010-01-11) (CORCAN)


An artificial person or legal entity created by or under the authority of the federal or provincial laws. The law treats the corporation itself as a person, which can sue and be sued. The corporation is distinct from the individuals who comprise it (shareholders). (2010-01-11) (société)


  1. General. The price paid for anything, outlay and expense. When a contract refers to actual cost, the term means the amount, not including any profit, which was in fact paid out for materials and for labour.
  2. PWGSC contract. Costs determined in accordance with Contract Cost Principles 1031-2.
  3. Considered as total price in contract proposals for approval authority. (2010-01-11) (coût)

cost accounting

The classification, recording, analysis, reporting and interpretation of expenditures associated with the production and distribution of goods and services. (2010-01-11) (comptabilité du prix de revient)

cost analysis

  1. An examination or review of cost data to determine if costs are charged in accordance with prescribed criteria or regulations, for example the Contract Cost Principles 1031-2.
  2. A study of cost data for the purpose of identifying the causes of inefficiency or the improvement desirable in cost recording, supervision or management.
  3. The estimation of production costs by the bidder.
  4. The examination, before price negotiation, of the cost estimates presented by a potential supplier. Such analysis is for the purpose of checking that only permitted types of cost are included, that no significant cost category has been omitted, and that time, labour rates and other details are reasonable. (2010-01-11) (analyse des coûts)

cost centre

An administrative unit selected within an organization for the purpose of accumulating and controlling costs. It usually consists of a natural grouping of machines, methods, processes or operations; is identified with single management responsibility; and is made up of elements, which have common cost characteristics. (2010-01-11) (centre de coûts)

cost control

Employment of management devices in the performance of any necessary operation so that pre-established objectives of quality, quantity and time may be attained at the lowest possible outlay or cost for goods and services. Such devices include a bill of material, instructions, performance standards, competent supervision, cost limits on items and operations, and studies, interim reports and decisions based on these reports. (2010-01-11) (contrôle des coûts)

costs incurred

Costs allowed under the Contract Cost Principles 1031-2applicable to a particular contract. See also cost. (2010-01-11) (frais engagés)

cost of goods

Stocked Item Supply. The price FOB supplier plus inbound transportation. (2010-01-11) (coût des biens)

cost of service

Stocked Item Supply. This refers to all expenses (other than cost of goods) incurred by PWGSC in providing the Stocked Item Supply service. (2010-01-11) (coût du service)

cost plus fixed fee

A basis of price in which the contractor is paid costs reasonably and properly incurred, as determined by audit together with an agreed upon fixed fee (or a percentage of cost) by way of profit. (2010-01-11) (coût plus honoraires fixes)

cost reimbursable contract

Contract where the contractor is reimbursed the applicable, allocable, reasonable direct and indirect costs incurred by the contractor. There are five general types of cost reimbursable contract basis of payment as follows: cost reimbursable with fixed time rate; cost reimbursable with incentive fee; cost reimbursable with fixed fee; cost reimbursable with fee based on actual costs; and cost reimbursable with no fee. (2012-07-16) (contrats à frais remboursables)

counter offer

An offer to enter into a transaction on terms differing from those first proposed. A statement by the offeree which has the legal effect of rejecting the offer and of proposing a new offer to the offeror. (2010-01-11) (contre-offre)

country of origin

A country in which the product is mined, produced or manufactured. A product of domestic origin is a product mined, produced, or manufactured in Canada. (2010-01-11) (pays d'origine)


Duties charged on commodities on their import into or export from a country by a governmental authority. (2010-01-11) (douane)

customs duty - defence

Tariff Code 9982.00.00 of the Schedule to the Customs Tariff provides for the remission of customs duty on all defence supplies imported under contracts of $250,000 or more, by the Department of National Defence and Public Works and Government Services Canada (PWGSC), as well as the private sector provided that the person claiming remission provides certification by the minister of PWGSC that the goods supplied under the contract are defence supplies. (2010-01-11) (droit de douane - défense)

customs tariff

A schedule of charges assessed by the government on imported goods. (2010-01-11) (tarif des douanes)



  1. Compensation, usually in money, for injury to persons, or damage to goods or property.
  2. General damages are such as the law will presume to be direct, natural and probable consequences of the act in question.
  3. Special damages are such as the law will presume to be exceptional in character.
  4. See also liquidated damages. (2010-01-11) (dommages-intérêts)


  1. General. A lack, want, deficiency or absence of something necessary for completeness, perfection or adequacy in form or function.
  2. An imperfection, fault or error in manufactured materiel and service.
  3. Critical defect. A defect that judgment and experience indicate is likely to result in hazardous or unsafe conditions for individuals depending on, using or maintaining the product.
  4. Major defect. Other than critical defect that is likely to result in failure, or to reduce materially the usability of the unit product for its intended purpose.
  5. Minor defect. A defect that is not likely to reduce materially the usability of a unit product for its intended purpose, or is a departure from established standards having little bearing on the effective use or operation of the unit.
  6. Latent defect. This refers to a hidden or concealed defect, one, which could not be discovered by reasonable and customary inspection; one not apparent on the face of goods, product or a document. (2010-01-11) (défaut)

defence contract

A contract or subcontract with Canada or an agent of Canada, or with an associated government, that in any way relates to defence supplies or to defence projects or to the designing, manufacturing, producing, constructing, finishing, assembling, transporting, repairing, maintaining or servicing, or storing of, or dealing in, defence supplies or defence projects. (2010-01-11) (contrat de défense)

Defence Production Act

An act that gives to the minister of PWGSC "exclusive authority to buy or otherwise acquire defence supplies". The provisions of the Defence Production Act govern all PWGSC contracts for defence supplies or projects. (2010-01-11) (Loi sur la production de défense)

Defence Production Loan Account

An account, which may be used to make loans or advances to aid in defence procurement, such as working capital loans or advance payments on contracts and to make payment for such. See 9.25. (2010-01-11) (compte de prêts de la production de défense)

Defence Production Revolving Fund

An account in the Consolidated Revenue Fund, which may be used by PWGSC to designate and operate the DPRF for other than loan transactions. The DPRF provides PWGSC with a budgetary account to purchase defence supplies, to make payment for such, and to get reimbursed out of an appropriation of a client (for example, DND), or by an agent of Canada, or by an associated government. See 9.25.1. (2010-01-11) (Fonds renouvelable de la production de défense)

defence projects

Buildings, aerodromes, airports, dockyards, roads, defence fortifications or other military works, or works required for the production, maintenance or storage of defence supplies. (2010-01-11) (entreprises de défense)

defence supplies

This has the same meaning as in the Defence Production Act and covers:

  1. Arms, ammunition, implements of war, vehicles, mechanical and other equipment, watercraft, amphibious craft, aircraft, animals, articles, materials, substances and things required or used for the purposes of the defence of Canada or for cooperative efforts for defence being carried on by Canada and an associated government.
  2. Ships of all kinds.
  3. Articles, materials, substances and things of all kinds used for the production or supply of anything mentioned in 1. or 2. above or for the construction of defence projects.
  4. Requirements necessary or appropriate to promote national defence, which means programs for military and atomic energy production or construction, military assistance and directly related activities. (2010-01-11) (matériel de défense)

delayed bid

A bid delivered to the specified bid receiving area after the closing date and time but before the contract award date may be considered, provided the delay can be proven to have been due solely to a delay in delivery that can be attributed to the Canada Post Corporation (CPC) (or national equivalent of a foreign country) or to incorrect handling by PWGSC . The only pieces of evidence relating to a delay in the CPC system that are acceptable are: a CPC cancellation date stamp; a CPC Priority Courier Bill of Lading, and a CPC Xpresspost Label, which clearly indicates that the bid was mailed before the bid closing date. (2010-01-11) (soumission retardée)


  1. Actual. The transfer of possessions.
  2. Sale of goods. Delivery takes place when the goods are placed under the control of the person who has to receive them. Alternatively, the presence of the goods at the seller's place of business, ready to be delivered, and the purchaser notified, may be termed a delivery.
  3. Shipping occurs when lading is surrendered and title to goods passes to the receiver or consignee. (2010-01-11) (livraison)


  1. The same meaning as in the Financial Administration Act(FAA) and includes any of the departments named in Schedule I and any corporation in Schedule II of the FAA, the staffs of the Senate, the House of Commons, and the Library of Parliament. It includes further any division or branch of the public service of Canada, including a commission appointed under the Inquiries Act, designated by the Governor in Council as a department for the purposes of the FAA.
  2. Department of Public Works and Government Services. (2010-01-11) (ministère)

Departmental Individual Standing Offer (DISO)

Used by PWGSC as a method of supply to: analyze customer demand, determine quantities and quality, standardize products used by government, manage complex requirements and satisfy requirements for data collection for reports to Treasury Board and the Auditor General's Office. Only PWGSC may issue call-ups against a DISO upon receipt of a funded requisition from a customer department. (2010-01-11) (offre à commandes individuelle et ministérielle [OCIM])


  1. Decrease in value, particularly the deterioration or the loss in value arising from age and use of a property.
  2. The gradual exhaustion of the service capacity of fixed assets, which is not restored by maintenance practices. It is the consequence of such factors as use, obsolescence, inadequacy and decay.
  3. A proportionate charge as an expense for a period based on the cost or other recorded value of fixed assets. (2010-01-11) (amortissement)

design authority

The component of the client or its delegated agency responsible for determination of design parameters. (2010-01-11) (responsable de la conception)

design change

A permanent change or modification to the governing technical data. (2010-01-11) (modification de conception)

design deviation

A temporary departure from governing technical data. (2010-01-11) (altération de conception)

direct cost

Any item of cost, or the total of such items, which can be directly related to a particular product, service, program, function or project; usually, but not necessarily limited to items of material and labour and direct overhead. (2010-01-11) (coût direct)

direct labour

The labour applied to the material that will form an integral part of the final product in a manufacturing process. (2010-01-11) (main-d'œuvre directe)

direct labour costs

The approved direct labour costs applicable to the estimated costs of a negotiated contract. Negotiated labour costs for a lengthy contract may include predicted increases in labour rates. (2010-01-11) (frais de main-d'œuvre directe)

direct material

The material that will form an integral part of the final product in a manufacturing process. (2010-01-11) (matières directes)


  1. A reduction from a list price or a stated amount offered by the seller to the buyer.
  2. A cash discount is an allowance extended to encourage payment of invoice on or before a stated date, which is earlier than the net date. The percent of discount allowed is agreed upon between buyer and seller and is often established by industry or trade custom.
  3. To compute the present value of a future sum. (2010-01-11) (escompte)

discretionary audit

  1. Verification done on a discretionary basis by the government of profit on a contract or a series of contracts.
  2. Verification that Canada is not being charged in excess of the lowest price charged anyone else. This verification is employed in conjunction with a price certification on negotiated firm price contracts. (2010-01-11) (vérification discrétionnaire des comptes)

discretionary verification

An independent verification by Audit Services Bureau or other qualified personnel as approved by Acquisition Program Integrity Secretariat, to supplement the checks and verifications carried out by the contracting officers and/or cost analysts, to ensure the timeliness of payments by contractors to workmen, subcontractors and suppliers. (2010-01-11) (vérification discrétionnaire)


The removal of materiel from a supply system by sale, trade-in or destruction. Within the federal government, disposal is normally arranged through the PWGSC Crown Assets Distribution Directorate/Centre. (2010-01-11) (aliénation)


A supplier who acquires goods for resale to a wholesaler, retailer or ultimate consumer. A distributor may sell goods from their own inventory, from a consignment inventory, or directly from the manufacturer's stock. (2010-01-11) (distributeur)


  1. General. A tax levied by a government on the importation, exportation, or use and consumption of goods.
  2. Any duties or taxes levied on imported goods under the Customs Tariff, the Excise Tax Act, the Excise Act, the Special Import Measures Act, or any other law relating to customs.
  3. All applicable duties. All duties in effect on the contract date imposed and collected by the taxing authority on the transaction or property covered by the contract. (2010-01-11) (droit)


economic price adjustment

Price adjustments, both upward and downward, which are necessary either to protect Canada and the contractor against significant economic fluctuations in labour and material costs, including services and supplies, or in the event of changes in the contractor's established prices attributable to industry-wide economic factors. (2010-01-11) (indexation des prix)


  1. Auditor General. The extent to which a program achieves its goals or other intended effects. For example: to increase income in a particular area, a program might be devised to create jobs. The jobs created would be program output. This contributes to the desired program effect of increased income, which can be measured to assess program effectiveness. Of course, not all programs are equally evaluated. Also, management procedures for measuring and reporting effectiveness will differ between programs.
  2. General. The measure of how well a group, person, function or program reaches its objectives or achieves results. (2010-01-11) (efficacité)


  1. Auditor General. The relationship between goods or services produced, and resources used to produce them. An efficient operation produces the maximum output for any given set of resource inputs, or it has minimum inputs for any given quantity and quality of service provided.
  2. General. A measure of how well a person, group, function or program uses its time and resources to achieve certain results, that is, total resources consumed. (2010-01-11) (efficience)

electrical equipment

Any apparatus, appliance, device, instrument, fitting, fixture, machinery, material or thing used in or for, or capable of being used in or for, the generation, transformation, transmission, distribution, supply or utilization of electrical power or energy, and without restricting the generality of the foregoing, including any assemblage or combination of materials or things, which are used or are capable of being used or adapted, to serve or perform any particular purpose or function when connected to an electrical installation, notwithstanding that any of such materials or things may be mechanical, metallic or non-electric in origin. (2010-01-11) (matériel électrique)

electronic bidding

A method of procurement that promotes suppliers' access to, and transparency in, the procurement process and facilitates Canada's receipt of best value, by using:

  1. public notice by means of an approved electronic information service of procurement opportunities (e.g., Government Electronic Tendering Service [GETS]);
  2. public notice by means of an electronic information service of proposed directed procurements by means of an Advance Contract Award Notice;
  3. such other procurement methods as may be approved by the Treasury Board. (2013-06-01) (invitation électronique à soumissionner)

employment equity

A concept that encourages the removal of employment barriers; identifies and removes discriminatory policies and practices; seeks the goal of fair representation for all Canadians, in particular women, Aboriginal people, disabled persons and visible minorities; and promotes economic development through the full utilization of the talents of all Canadians. (2010-01-11) (équité en matière d'emploi)

Engineering Change Proposal

Design change procedure used in aircraft procurement. The ECP form provides the data concerning a proposed change and, when signed by design and procurement authorities, becomes a change order. (2010-01-11) (proposition de modification technique)


Major items of materiel that are not expendable except through depreciation or wear and tear and which, although they may be fixed or positioned in prescribed places, do not lose their identity or become integral parts of other equipment and installations. Items in this category are normally susceptible to running maintenance. Equipment items are usually procured, issued and replaced on the basis of planned departmental capital acquisition programs, for example, aircraft vehicles, vessels, boats, workshop machinery, electronics systems. (2010-01-11) (équipement)


See economic price adjustmentor adjustment. (2010-01-11) (indexation)

estimated cost

The estimated cost to be used as the basis for the sourcing decision is that cost determined, through consultation between PWGSC and the client, as being representative of all known work and expected unscheduled work, arising out of the requirement, that is, the total estimated contract value. (2010-01-11) (coût estimatif)

exchange rate adjustment

The exchange rate adjustment is the adjustment amount, plus, minus or zero that will be shown as a line item on each invoice for contracts with an exchange rate fluctuation provision and reflected in the total price payable for the invoice. It is calculated in accordance with the contract provisions using form PWGSC-TPSGC 450 Claim for Exchange Rate Adjustments. (2013-11-06) (rajustement de fluctuation du taux de change)

executory costs

Costs related to the operation of the leased property (for example, insurance, maintenance cost and property taxes). (2010-01-11) (coûts exécutoires)

ex gratia payment

A payment made pursuant to the Treasury Board Directive on Payments: “a benevolent payment made by the Crown used only when there is no other statutory, regulatory or policy vehicle to make such a payment. The payment is made in the public interest for loss or expenditure incurred where the Crown has no obligation of any kind or has no legal liability, or where the claimant has no right of payment or is not entitled to relief in any form.” (2017-08-17) (paiement à titre gracieux)

export permit

A permit issued on application, by Industry Canada, to a resident of Canada for the export of certain goods covered by the Export Permit Regulations. (2010-01-11) (permis d'exportation)

extra payment claim

Claims made by a contractor against Canada in respect of firm or ceiling price contracts where a legal liability does not exist or where there is uncertainty that a legal liability exists under the contract. (2010-01-11) (demande d'indemnisation)

extract file

A file created when a requisition is formally subdivided and involves procurement action by a contracting officer other than the main file holder. (2010-01-11) (dossier d'extraits)



  1. A physical plant or installation; for example, base, arsenal or building, used to make the performance of a function easier.
  2. The materiel resources needed to facilitate any action or operation. (2010-01-11) (installation)

facility evaluation

A survey/examination of any or all of the capabilities of a supplier that pertain to competence as a source of supply or recipient of aid. Pre-award surveys are made in cases of doubt regarding productive capability, quality control or financial strength. (2010-01-11) (évaluation des installations)

facility security clearance

A determination by the Contract Security Program that, from a security viewpoint, an organization is eligible for access to Canadian and foreign government information or assets, which are “classified” or “protected” at the same level as the clearance being granted or to a lower level. (2022-05-02) (attestation de sécurité d'installation)

fair market value

  1. The price that would be agreed to in an open and unrestricted market between knowledgeable and willing parties, dealing at arm's length, who are fully informed and not under any compulsion to transact.
  2. The word “fair” implies a concept of a market, which is not disturbed by unpredictable economic factors; for example, boom or depression. (2010-01-11) (juste valeur marchande)

FAS Free Alongside Ship (...named port of shipment)

The book containing the International Chamber of Commerce (ICC) official rules for the interpretation of trade terms is entitled " Incoterms 2000" , and the location of a summary for the description of FAS. The responsible obligations of the buyer and seller cannot be found on the ICC Web site; that information may only be found in the Incoterms 2000 book. (2010-01-11) (FAS franco le long du navire [...port d'embarquement convenu])

FCA Free Carrier (...named place)

The book containing the International Chamber of Commerce (ICC) official rules for the interpretation of trade terms is entitled " Incoterms 2000" , and the location of a summary for the description of FCA. The responsible obligations of the buyer and seller cannot be found on the ICC Web site that information may only be found in the Incoterms 2000 book. (2010-01-11) (FCA franco transporteur [... lieu convenu])

Federal Supply Classification

PWGSC uses the U.S. Federal Supply Classification (FSC) system as the basis for assigning commodity procurement responsibilities, and the Goods and Services Identification Number (GSIN) system permits the definitive assignment of responsibilities for item groupings within FSC. (2010-01-11) (classification fédérale des approvisionnements)

final payment

Payment made in satisfaction of a final invoice. This refers to a payment, which completes the monetary settlement in accordance with the conditions of the contract. (2010-01-11) (paiement final)

financial analysis

The process of selecting relevant financial information about the supplier, developing significant relationships (ratios), studying these relationships and interpreting the results. (2010-01-11) (analyse financière)

firm base price or firm base price elements

The otherwise firm price or firm price elements identified within the contract basis of payment from which economic price adjustments will be made on the occurrence of certain specified contingencies. (2010-01-11) (prix de base ferme ou éléments de prix de base ferme)

firm price

A method of pricing in which the total amount payable is a fixed lump sum, or is an amount determinable in accordance with fixed unit prices. (2010-01-11) (prix ferme)

firm price contract

A contract that sets the total amount payable, or pursuant to which the total amount payable is the product obtained, by multiplying the number of identical units of work performed or identical items delivered by a predetermined fixed price for each unit or item. (2010-01-11) (contrat à prix ferme)

first tier subcontractor

(For purposes of the Integrity Regime.)

A subcontractor with whom a bidder, offeror or supplier or contractor plans to have or has a direct contractual relationship to perform a portion of the work pursuant to a contract between the contractor and Canada (meaning all the activities, services, goods, equipment, matters and things required to be done, delivered or performed by the contractor under the contract), unless the subcontractor merely supplies commercial-off-the-shelf goods to the contractor. (2016-04-04) (premier sous-traitant)

fixed time rate

A method of pricing in which the amount payable is determined in accordance with the combined cost of labour, overhead and profit, as expressed by a fixed amount by time period. (2010-01-11) (taux fixe basé sur le temps)

fixed unit price

A method of pricing in which the total amount payable is the product of the number of identical units of work performed or identical items delivered, multiplied by a predetermined fixed price for each unit or item. (2010-01-11) (prix unitaire fixe)

FOB (Free on Board)

A mercantile term used extensively in both domestic and international trade.

  1. As a domestic trade term, used in both Canada and the United States, FOB ordinarily determines the place where the seller effects delivery of the goods, where title and risk of loss will pass, and whether the seller or the buyer is required to pay freight charges (for example, FOB New York), unless otherwise specified in the contract. Specific application of the term FOB either with reference to transfer of title, risk, or burden of freight charges, may vary according to applicable law, custom and usage or agreement of the parties concerned.
  2. As an Incoterm, FOB is defined by the International Chamber of Commerce and can only be used for shipments by seagoing vessels. ( Note: There are 13 Incoterms 2000 , 6 of which can only be used for shipments by seagoing vessel.)The contractual rights and obligations of this and similar mercantile terms are used in international commerce. (2010-01-11) (FAB franco à bord)

foreground information

All intellectual property first conceived, developed, produced or reduced to practice as part of the work under the contract. (2010-01-11) (renseignements originaux)

Foreign Currency Component (FCC)

The portion of the price or rate that will be directly affected by exchange rate fluctuations. The FCC will typically include all related taxes, duties and other costs paid by the bidder and which are to be included in the adjustment amount. It may also include entry fees, transportation costs or delivery charges, and any other charges associated with being the importer of record which are paid in a foreign currency. (2013-11-06) (montant en monnaie étrangère)

Foreign Military Sales (FMS)

A Security Assistance Program, which is administered by the United States Department of Defence, and allows eligible foreign governments and international agencies to purchase defence-related articles and services from the United States Government. See 9.15. (2010-01-11) (ventes de matériel militaire à l'étranger [FMS])

Foreign Ownership, Control or Influence (FOCI)

Assessments are designed to ensure that no third party, individual, firm, or government is assumed to possess dominance of, or authority over, a Canadian facility to such a degree that it could gain unauthorized access to INFOSEC information. (2010-01-11) (participation, contrôle et influence étrangers [PCEI])

formal agreement

An agreement executed under seal by the parties and signed by the Corporate Secretary, the person responsible for affixing the seal for Canada. (2010-01-11) (accord officiel)

former public servant

Any former member of a department as defined in the Financial Administration Act, former member of the Canadian Armed Forces or former member of the Royal Canadian Mounted Police. (2011-05-16) (ancien fonctionnaire)


general and administrative rate

Estimated general and administrative expenses are a percentage of material, labour and overhead costs. (2010-01-11) (coefficient de dépenses générales et administratives)

Goods and Services Identification Number (GSIN)

A system of material and services categorization used within PWGSC . The system is used in conjunction with the Federal Supply Classification (FSC) code. (2010-01-11) (numéro d'identification des biens et services [NIBS])

goods contract

An agreement for the purchase of articles, commodities, equipment, goods, materials or supplies and includes the construction or repair of a vessel. (2020-05-04) (contrat de biens)

Government Electronic Tendering Service (GETS)

The service used by the federal government to post notices (for example, Notices of Proposed Procurement, Advance Contract Award Notices and Contract Award Notices) and to make available solicitation documents. This service provided through Buyandsell.gc.ca/tenders becomes the official site for Canada to meet its trade agreement obligations and is the authoritative and first source for Government of Canada tenders. For more information about GETS, visit the Buyandsell.gc.ca Tenders minisite or contact the support line at 1-855-886-3030.(2013-06-01) (Service électronique d'appels d'offres du gouvernement [SEAOG])

government furnished equipment

Equipment supplied by Canada to be used in the production process; for example, tooling, jigs, dies, production equipment. See special production tooling, special test equipment and production assets. (2010-01-11) (équipement fourni par le gouvernement)

government guaranteed bond

A bond of the Government of Canada or a bond unconditionally guaranteed as to the principal and interest by the Government of Canada that is:

  1. Payable to the bearer.
  2. Accompanied by a duly executed instrument of transfer of the bond to the Receiver General in the form prescribed by the Domestic Bonds of Canada Regulations.
  3. Registered in the name of the Receiver General. (2010-01-11) (obligation garantie par le gouvernement)

government issue

  1. Defence Production Act means machinery, machine tools, equipment or defence supplies furnished, acquired or purchased by or on behalf of the government or associated government with funds provided by the government or associated government.
  2. PWGSC contracts. All materials, parts, components, equipment, specifications, articles and things, which may be supplied to a contractor by the government for performance of the (contract) work. (2010-01-11) (fournitures d'État)

Government Property

Anything supplied to the contractor by or on behalf of Canada for the purposes of performing the contract, and anything acquired by the contractor in any manner in connection with the work, the cost of which is paid by Canada under the contract. (2010-01-11) (biens de l'État)

Government Quality Assurance (GQA) at Source

The activity of the inspection authority or the GQA authority in monitoring or observing at the contractor's plant, before delivery, to verify whether a product, service and/or quality system complies with the technical requirements stipulated in the contract. (2010-01-11) (assurance officielle de la qualité [AOQ] à la source)

government-supplied materiel (GSM)

Any item of materiel acquired by the government of Canada and provided on a "free issue" basis to contractors for embodiment in materiel under production or for incorporation into Crown-owned equipment undergoing modification, repair or overhaul. (2010-01-11) (matériel fourni par le gouvernement)


An unconditional transfer payment made to a recipient, for which Canada will not receive any goods or services. (2010-01-11) (subvention)

green procurement

The integration of environmental considerations, along with quality, performance, price and availability into the procurement process, from planning to final disposal. Green procurement means that environmental impacts of the goods we procure, which have been appropriately considered in value for money decisions. (2010-01-11) (achat écologique)



This refers to an amount withheld under a contract, to ensure the performance of the contract, and also to avoid overpayments in relation to progress of work. (2010-01-11) (retenue)

hypothecated bond

To pledge as collateral, such as personal property, as security for a debt without transfer of possession. This is used in relation to bid/security deposits and performance bonds. (2010-01-11) (obligation cautionnée)



A contractor, subcontractor or a supplier who actually imported the goods or materiel. (2010-01-11) (importateur)

importer of record

The consignee or importer shown on the import entry form and on the Canada Customs Invoice or commercial invoices who is responsible for customs clearance and payment of the Goods and Services Tax or Harmonized Sales Tax. (2010-01-11) (importateur officiel)

inbound logistics

The definition of “inbound logistic” is a matter of perspective. Shipments to Canadian Forces from repair and overhaul facilities and shipments off new acquisitions are considered inbound. Inbound logistics does not have an agreed-upon definition in the industry. A shipment is inbound to the receiver; conversely, shipments that are sent out B, as a raw materiel supplier, manufacturer or vendor might do B, are outbound from the sender. For inbound logistics planning, the focus of transportation management is on planning the receipt of the shipment. The definition of inbound logistics is related not only to the controller of the shipment process, but also who takes ownership of the goods shipped. (2010-01-11) (logistique interne)


The return in money from one's business, labour or capital invested; gains, profits or private revenue. The excess of revenues over expenses for a period is usually referred to as net income. (2010-01-11) (revenu)


Incoterms 2000are standard trade definitions most commonly used in international sales contracts. They are protected by the International Chamber of Commerce copyright. They are part of the sales contract and not of the contract of carriage. (2010-08-16) (Incoterms)


  1. To compensate against loss or damage incurred by another; to reimburse another for such loss or damage.
  2. The word “indemnify” may mean either to prevent loss so that it does not occur, or to make reimbursement or compensation after the loss has occurred. (2010-01-11) (indemniser)

indirect cost

An item of cost that cannot be reasonably identified with a specific unit of product or with a specific operation or other cost centre. An indirect cost is usually allocated to several cost objectives. (2010-01-11) (coût indirect)

industrial security

Covers all that relates to security requirements under the terms of a contract, subcontract, standing offer, agreements, which will demand that identified private sector suppliers and their personnel be security screened and, if required, that the physical premises of the proposed contractor be inspected and approved to safeguard, produce or process “Protected” or “Classified” information, assets or data, prior to gaining access to such information or assets. (2010-01-11) (sécurité industrielle)

Ineligibility and Suspension List

A public list of companies that have been determined to be ineligible or suspended by PWGSC under the Ineligibility and Suspension Policy. (2016-04-04) (Liste d'inadmissibilité et de suspension)


All Communications-Electronic Security (COMSEC) information and material entrusted to or developed/evaluated by or for the Communications Security Establishment. (2010-01-11) (INFOSEC)


A condition where a supplier, although not bankrupt, is either unable to meet its obligations, as they generally become due, or has ceased paying current obligations in the ordinary course of business, or whose assets have a realizable value insufficient to pay all its obligations. (2010-01-11) (insolvabilité)


  1. General. A close scrutiny or an examination. The process of determining conformance of a product to the applicable requirements.
  2. 100 percent. The inspection of each unit of product or the whole material, as opposed to any form of sampling inspection.
  3. Final. The last of several inspections at successive stages of manufacture, repair, modification, etc.
  4. Normal. The inspection that is used when there is no statistically significant evidence that the quality of the product being submitted is higher or lower than the specified quality level.
  5. Original. The first inspection of a particular quantity of product, as distinguished from inspection of a product that is resubmitted after prior rejection.
  6. Receiving. Inspection by a client of materials and manufactured products, as delivered.
  7. Reduced. Provision in a sampling procedure for switching to a less severe sampling plan when there is evidence that the submitted quality level is higher than the specified quality level.
  8. Source. The inspection of supplies or services at the point of manufacture or point of shipment.
  9. Activities such as measuring, examining, testing, gauging one or more characteristics of a product or service and comparing these with specified requirements to determine conformity.
  10. The activity of monitoring or observing, before delivery, to verify whether a product, service and/or quality system complies with the technical requirements stipulated in the contract. (2010-01-11) (inspection)

inspection at source

Refer to Government Quality Assurance (GQA) at Source. (2010-01-11) (inspection à la source)

inspection authority

The person designated as such in the contract. This includes any person acting, on behalf of Canada or the Minister, as the inspection authority in relation to the contract. For purposes of contracts for the Department of National Defence, inspection authority includes quality assurance authority. (2010-01-11) (responsable de l'inspection)


A contract of indemnity whereby one party (the insurer) undertakes to indemnify the other (the insured) against damage or loss, on a specified subject by specified perils in consideration of a payment received (a premium). The instrument by which the contract is entered into is called the policy. (2010-01-11) (assurance)

intellectual property

Any information or knowledge of an industrial, scientific, technical, commercial, literary, dramatic, artistic or otherwise creative nature relating to the work, whether oral or recorded in any form or medium and whether or not subject to copyright; this includes but is not limited to any inventions, designs, methods, processes, techniques, know-how, show-how, models, prototypes, patterns, samples, schematics, experimental or test data, reports, drawings, plans, specifications, photographs, manuals and any other documents, software, and firmware. (2010-01-11) (propriété intellectuelle)


The compensation allowed by law, or fixed by the parties, for the use or retention by one party of a sum of money or other property belonging to another. It may take the form of a lump sum payment or periodical payments at a rate percent. (2010-01-11) (intérêt)

interest rate implicit in the lease

The discount rate that, at the inception of the lease, causes the aggregate present value of: the minimum lease payments, excluding that portion of the payments representing executory costs to be paid by the lessor, and any profit on such costs, and the unguaranteed residual value accruing to the benefit of the lessor, to be equal to the fair value of the leased property to the lessor at the inception of the lease. (2010-01-11) (taux d'intérêt implicite du bail)

interim standard

A standard published to satisfy a clear and urgent need without passing through all the procedural and review processes required for Canadian General Standards Board standards or National Standards of Canada. (2010-01-11) (norme provisoire)

international contract

Canadian Commercial Corporation (CCC ). The contract between CCC and the foreign government, their agencies or international organizations. (2010-01-11) (contrat international)


Patent law. The creation of something that did not exist before, by the exercise of a creative mind, possessing elements of novelty and utility and measure different from anything that preceded the same. (2010-01-11) (invention)


This refers to an itemized list of goods, showing the number and usually the value of the goods. (2010-01-11) (stock)

invitation for bids

See bid solicitation. (2010-01-11) (demande de soumissions)

invitation to tender (ITT)

A bid solicitation document used by PWGSC when the estimated value of the requirement exceeds $25,000 for goods and $40,000 for construction and services; two or more sources are considered capable of supplying the requirement; the requirement is adequately defined in all respects to permit the evaluation of tenders against clearly stated criteria; tenders can be submitted on a common pricing basis; and it is intended to accept the lowest-priced responsive tender without negotiations. (2020-05-04) (appel d'offres)


A billing document prepared by the seller setting out the details of goods sold or services rendered to the purchaser including quantity, price, terms of payment, etc. (2010-01-11) (facture)

item description

The data necessary to establish the identity of an item of supply for materiel management purposes. (2010-01-11) (description d'un article)



This refers to a middleman or dealer who purchases goods from manufacturers or importers for resale to retailers. They are also called dealer or wholesale merchant. (2010-01-11) (revendeur)

joint venture

Association of two or more parties who combine their money, property, knowledge, expertise or other resources in a single joint business enterprise, sometimes referred as a consortium, to bid together on a requirement. (2010-01-11) (coentreprise)


laid-down cost

The cost incurred by a supplier to acquire a specific product or service for resale to the government. This includes the supplier's invoice price (less trade discounts), plus any applicable charges for incoming transportation, foreign exchange, customs duty and brokerage, but excludes the Goods and Services Tax and the Harmonized Sales Tax. (2010-01-11) (prix de revient)

late bid

A bid delivered to the specified bid receiving unit after the closing date and time stipulated in the bid solicitation. (2010-01-11) (soumission en retard)


  1. Government Contracts Regulations. An agreement whereby Canada acquires a leasehold interest in real property situated in or outside Canada and includes a tenancy agreement and a license in respect of real property.
  2. The Canadian Institute of Chartered Accountants (CICA). This refers to the conveyance, by a lessor to a lessee, of the right to use a tangible asset, usually for a specified period of time in return for rent.
  3. Capital lease. A lease that, from the point of view of the lessee, transfers substantially all the benefits and risks incident to ownership of the property to the lessee.
  4. Operating lease. This refers to a lease in which the lessor does not transfer substantially all the benefits and risks incident to ownership of property. (2010-01-11) (bail)

letter of intent

A commitment to award a contract to a designated contractor. It may be used to authorize commencement of the work before the award of a contract, in those cases where the contract provisions require time-consuming negotiations, and the timely delivery of goods or services would be jeopardized by waiting for the award of the contract. A letter of intent is issued subsequent to approval of those terms and conditions, which have been already agreed to between Canada and the contractor, but before obtaining approval of all the terms and conditions of the proposed contract. (2010-01-11) (lettre d'intention)

letter of interest

A letter of interest or Request for Information is used when the buyer is interested in receiving feedback from suppliers and may re-open or re-issue an opportunity as an open tender at a later day. (2010-01-11) (lettre d'intérêt)

Level 1 Procurement

Level 1 Procurement has the characteristics of clarity and completeness. The requirement is known and identifiable, and evaluation methods are straightforward and do not require subjective judgement. The methods for soliciting bids and contracting are pre-determined and set out. There is little need for analysis or speculation. There is an absence of change with the procurement process. Contract administration is predictable and established (2014-09-25) (achat de niveau 1)

Level 2 Procurement

Level 2 Procurement has the characteristics of judgment, review, and assessment. The procurement is based on the process of finding a solution to a requirement using existing technology and processes. Evaluation methods have to be defined, require subjective judgement, and may use pre-established strategies. The procurement process is established and understood though it can be complicated (many details or factors). Contract administration is predictable and established. (2014-09-25) (achat de niveau 2)

Level 3 Procurement

Level 3 Procurement has the characteristics of dealing with the unknown and requires creativity and ongoing development using new, or a combination of new and existing technology and processes. It is based on achieving a goal/target and driven by managing change/phases. Pre-established methods of supply may have to be modified and procurement strategies and evaluation methodologies may have to be researched or developed. The procurement may involve partnerships with clients, and control may be shared. Contract administration is detailed and extensive and may be unpredictable. (2014-09-25) (achat de niveau 3)

Level 4 Procurement

Level 4 Procurement involves enterprise-wide transformations (across the federal government). It has the characteristics of dealing with the unknown and a high level of uncertainty and change. The procurement may involve partnerships with clients and multiple stakeholders within various federal government departments, where decision-making is shared. Contract administration is detailed and extensive and its success is unpredictable. (2014-09-25) (achat de niveau 4)

Level 5 Procurement

Level 5 Procurement involves public transformations affecting the public domain. It has the characteristics of dealing with the unknown and a high level of uncertainty and change. The procurement may involve partnerships with clients, multiple stakeholders (internal and external to the federal government) and elected officials, to reshape public policy or introduce new public policies. Decision-making is shared. Its ultimate success is determined by the public at large. (2014-09-25) (achat de niveau 5)


  1. A broad legal term. In general, a debt owed. The condition of being actually or potentially subject to an obligation; a condition of being responsible for a possible or actual loss, penalty, evil, expense or burden; a condition that creates a duty to perform an act immediately or in the future.
  2. Primary liability. This refers to a liability for which a person is directly responsible.
  3. Secondary liability. This refers to a liability of a contingent nature such as the liability of a guarantor. A guarantor's liability does not arise until the principal debtor has failed to pay the creditor. (2010-01-11) (responsabilité)


A grant of permission – a power or authority given to another to do some lawful act. (2010-01-11) (licence)

license agreement

A contract by which permission is given by the owner of a right to another, for the use of that right, free from legal recourse. (2010-01-11) (contrat de licence)


A claim, encumbrance, or charge on property for payment of some debt, obligation or duty. Qualified right of property which a creditor (like a bank) has in or over specific property of his debtor, as security for the debt or charge or for performance of some act. (2010-01-11) (privilège)

limitation of expenditure

In the context of a contract, with or without task authorizations, the limitation of expenditure is the maximum amount of money that may be paid to a contractor for the prescribed work. The limitation of expenditure is normally used in service requirements where the level of effort cannot be accurately estimated at the outset. At the client’s request, the contracting authority will amend the contract to provide additional funds, or request the contractor to complete the work to the extent that the allocated funding permits.

In the context of a standing offer, a limitation of expenditure is a financial limit on the total expenditures of call-ups against a standing offer. The offeror must not perform any work or services or supply any goods in response to call-ups which would cause the total cost to exceed the limitation of expenditure, unless an increase to the limitation of expenditure is authorized by the standing offer authority. The inclusion of a limitation of expenditure in a standing offer is optional. (2017-08-17) (limitation des dépenses)

liquidated damages

A specific sum of money expressly stipulated by the parties in a contract as the amount of damages to be recovered by either party for a breach of the agreement by the other. It must be a genuine pre-estimate of the loss that will be caused to one party if another party breaks the contract. It constitutes the amount, no more and no less, that the plaintiff is entitled to recover in the event of breach without being required to prove actual damages. (2010-01-11) (dommages-intérêts fixés en argent)

listing program

The entire process by which a specific product/service/supplier is designated as conforming to the requirements of standards or specifications, including those for quality assurance, and identified for subsequent procurement on a qualified products list. See Qualified Products List, Certified Products List. (2010-01-11) (programme de listage)


Anything lent or given to another on condition that it be returned or repaid, either with or without interest. (2010-01-11) (prêt)

loan agreement

An agreement pursuant to which some Department of National Defence equipment is loaned by PWGSC to a contractor. (2010-01-11) (convention de prêt)

low dollar value

Requirements that are generally less complex and a low risk, with an estimated total value below $25,000 for goods and $40,000 for construction and services, including all applicable taxes. (2020-05-04) (faible valeur)

lump sum payment

The price agreed upon between the vendor and the purchaser for a group of items without breakdown of individual values; a lot price. (2010-01-11) (paiement forfaitaire)


machine tool

This refers to a class of production tools basic to many manufacturing industries; power-driven, precision metal-working machines, which remove metal in the form of chips by cutting or grinding, such as lathes, drill presses, boring mills, planers, milling machines, shapers and grinders. (2010-01-11) (machine-outil)


  1. Materiel. All action to retain materiel in a serviceable condition or to restore it to serviceable conditions. It includes inspection, testing, servicing, classification, as to serviceability, repairs, rebuilding and reclamation.
  2. The cost of keeping a property in efficient working condition. (2010-01-11) (maintenance)

mandatory standing offers

If PWGSC has issued a standing offer that covers the client's specific requirement, departments must use that standing offer for its acquisition. For a complete list of existing standing offers, consult the Standing Offers and Supply Arrangements Application. (2018-11-08) (offres à commandes obligatoires)


The production of articles for use from raw or prepared materials by giving to these materials new form, qualities and properties or combinations thereof whether by hand or machinery. (2010-01-11) (fabrication)

market price

  1. The price at which a seller is ready and willing to sell and a buyer is ready and willing to buy in the ordinary course of trade. It is the actual price at which a given commodity is currently sold or has recently been sold in the open market, that is, not a forced sale. See fair market value and market value.
  2. Accounting. The prevailing or last quoted price under conditions applicable in the circumstances. Net realizable value. (2010-01-11) (prix du marché)

market value

The price, which a product or property might be expected to bring, if offered for sale in a fair market; that is, a market that is not temporarily prone to fluctuations. It is the price that would be fixed by negotiation and mutual agreement between a willing buyer and a supplier who is willing but not compelled to sell. (2010-01-11) (valeur marchande)


  1. Defence Production Act. The amount added to cost in determining the selling price to cover overhead and profit.
  2. The difference between the contractor's laid-down cost for a product and its resale price to Canada, Goods and Services Tax and/or the Harmonized Sales Tax excluded. Mark-up includes applicable purchasing expense, internal handling and general and administrative expenses, plus profit.
  3. The amount added to the cost of merchandise to arrive at the price at which it will be offered for sale. This refers to an addition to a previously established selling price of goods for sale. (2010-01-11) (majoration)

materiel and services to military specifications

  1. Includes all materiel and services, including repair and overhaul, as well as research and development, for which a military or other Department of National Defence (DND) specification or requirement is included in procurement documentation. Also included in this category are materiel and services that are not covered by DND or military specifications, but are of a significant concern to DND as to the allocation of responsibilities annotated under this heading.
  2. Includes the range of items covered by commercial or the Canadian General Standards Board standards and specifications. It also includes those items or services, which are not specifically identified by DND, in its procurement documentation, as requiring special military or other DND specifications or requirements. (2010-01-11) (matériel et services assujettis aux spécifications militaires)

material and services to non-military specifications

Includes the range of items covered by commercial or Canadian General Standards Board standards and specifications. It also includes those items or services, which are not specifically identified by Department of National Defence (DND), in its procurement documentation, as requiring special military or other DND specifications or requirements. (2010-01-11) (matériel et services assujettis aux spécifications non militaires)

milestone payment

A method of making a progress payment, which relates to a measurable and/or defined item or work package for which a price can be assigned with a good probability that such assigned price will turn out to be within reasonable limits of predictive accuracy for the value of the work. (2010-01-11) (paiement d'étape)


The Minister of Public Works and Government Services. (2010-01-11) (Ministre)


Any manifestation by words or other conduct by one person to another that, under the circumstances, amounts to an assertion not in accordance with the facts. An untrue statement of fact, an incorrect or false representation. It can be either fraudulent or innocent. It is fraudulent when it is made knowing that the same is false or without belief in its truth. A party induced by fraudulent misrepresentation to enter into a contract may repudiate the contract. Where a misrepresentation is an innocent one, it may be a ground for refusing specific performance to the party who made the misrepresentation and may also be a ground for rescission of the contract. The misrepresentation should, however, be a material one on which the other party relied. (2010-01-11) (fausse déclaration)

mobile repair party

An individual or group of individuals who perform repair work away from a contractor's plant, generally at client locations. (2010-01-11) (service mobile de réparation)


Equipment. An engineered alteration to an item of supply, which changes the design characteristics or capabilities of the end item, major or subassembly component part, or accessory. Normally a modification is made after an item of equipment is delivered, whereas a design change is made, before delivery during production. (2010-01-11) (modification)


The ownership or control of so large a part of the market supply or output of a given commodity as to unduly prevent or lessen competition in that commodity. (2010-01-11) (monopole)

mutual consent

A meeting of the minds on a specific subject, and a manifestation of intent of the parties to do or refrain from doing some specific act or acts. (2010-01-11) (consentement mutuel)


National Individual Standing Offer (NISO)

A standing offer issued for the use of a specific department or agency throughout Canada. NISOs are arranged by PWGSC on receipt of a funded requisition. (2010-01-11) (offre à commandes individuelle et nationale [OCIN])

National Master Standing Offer (NMSO)

A standing offer issued for the use of many departments or agencies throughout Canada. NMSOs are arranged by PWGSC without any requisitions from customer departments or agencies. (2010-01-11) (offre à commandes principale et nationale [OCPN])

NATO Stock Number (NSN)

A 13-digit number; for example, 5305-21-111-3333 broken down as follows:

  1. Digits 1-4; for example, 5305, the NATO supply classification, consisting of Group 53, which covers all items of hardware, followed by the class within the group 05 (screws), 06 (bolts), etc., the whole being known as the supply class.
  2. Digits 5-6; for example, -21-, the NATO code for the National Codification Bureau that assigned the stock number; for example, 00 U.S.A., 21 Canada, 14 France, 99 U.K., etc.
  3. Digits 7-13; for example, 111-3333, the National Item Identification Number; non-significant, but sequentially assigned by each National Codification Bureau to a unique item of supply.
  4. Digits 5-13; for example, 21-111-3333, the NATO Item Identification Number, including both the NATO code of the National Codification Bureau and its item identification number. The last 9 digits of the number remain with the item throughout its life, even though the NATO supply classification may change as a result of reclassification and consequent conversion of stock numbers; for example, 5305-21- 111-2222converted to 2805-21-111-2222. (2010-01-11) (numéro de nomenclature de l'OTAN)


The need for someone to access and know information in order to perform his/her duties. (2010-01-11) (besoin de connaître)


The process of reaching agreement between two or more parties on the terms and conditions of a contract. (2010-01-11) (négociation)


Failure to comply with a requirement. (2010-01-11) (non-conformité)

no substitute

Description of a product by brand name or model number or by using a restrictive specification, with the provision that a substitute product is not acceptable. (2010-01-11) (aucun produit de remplacement)

non-resident contractor

An individual not engaged in regular and continuous employment in Canada and who does not maintain a permanent residence or office in Canada. This also refers to a partnership or a corporation not maintaining a permanent office in Canada. (2010-01-11) (entrepreneur non résident)

Notice of Proposed Procurement

A notice of an opportunity to participate in procurement. The NPP is published on the Government Electronic Tendering Service (see the Buyandsell.gc.ca Tenders minisite) and includes general information, such as a description of the requirement, and how solicitation documents can be obtained. (2013-06-01) (avis de projet de marché [APM])



A proposal made by one party to another to do something, usually accompanied by an expected acceptance, counter-offer, return promise or act. The offer creates a power of acceptance permitting the offeree by accepting the offer to transform the offeror's promise into a contractual obligation. An offer is an essential ingredient for the formation of a contract. (2010-01-11) (offre)


The party that makes the offer. (2010-01-11) (offrant)

Office of Greening Government Operations (OGGO)

The Office of Greening Government Operations (OGGO) was created in April 2005, within Public Works and Government Services Canada (PWGSC). OGGO's mandate is to accelerate the greening of the government's operations by working closely with other federal departments, particularly Treasury Board Secretariat and Environment Canada. (2010-01-11) (Bureau de l'écologisation des opérations gouvernementales {BEOG})

operating cost

The cost of operating, maintaining and repairing a product throughout its useful life, less its estimated residual value at the time of retirement. (2010-01-11) (coût d'exploitation)

operating lease

A lease in which the lessor does not transfer substantially all the benefits and risks incident to ownership of property. (2010-01-11) (bail d'exploitation)


Defence Production Act. A general or specific order, requirement, direction or prescription in writing made or issued under this Act or a Regulation. (2010-01-11) (arrêté)


A decision, instruction, order, proclamation, etc. issued under the authority of the Governor in Council. (2010-01-11) (décret)


From a security perspective, an organization is any institution, other than a Canadian government department, agency or crown corporation, holding or referring to a security clearance. The majority are commercial corporations, but other institutions are also included, such as university faculties, partnerships, consultants, and other levels of government and their agencies. (2010-01-11) (organisation)


A claim by the supplier for costs and profits in excess of the audited final amount, as determined by Audit and Services Canada and/or sector/region verification. (2010-01-11) (réclamation en trop)

overhead costs

  1. Indirect expenses or burden; one of many terms given to expenses, which are incurred in the production of a commodity or the rendering of a service, but which cannot conveniently be measured by unit of production or service. These expenses are sometimes classified as manufacturing overhead, selling and distributive overhead, and general and administrative overhead.
  2. Service contracts. Indirect costs associated with the operation of the contractor's business and includes, unless otherwise stated, in a percentage factor that is applied to payroll cost. Salary bonuses may be included as overhead costs, unless they are paid under profit-sharing schemes, in which case they will be treated as a distribution of profit. (2010-01-11) (frais généraux)


A payment by Canada in excess of the audited final amount as determined by Audit Services Canada and/or sector/region verification. (2010-01-11) (paiement en trop)


Time worked by a contractor's employee in excess of the employee's normal working day or working week. (2010-01-11) (heures supplémentaires)

overtime premium

The difference between the employee's regular rate of pay and the higher rate paid for overtime. (2010-01-11) (prime d'heures supplémentaires)

overtime premium costs

The amount of overtime premium and any profit thereon. (2010-01-11) (frais de rémunération des heures supplémentaires)


part file

A main or extract file is subdivided into part files when more than one solicitation is issued, resulting in separate contracts. Each part file may only have one active solicitation in progress. Part files must be created when more than one solicitation is required under a main or extract file. (2010-01-11) (dossier partiel)


A grant of right to exclude others from making, using or selling one's invention and includes the right to license others to make, use or sell it. A grant from the government conveying and securing for an inventor the exclusive right to make, use and sell an invention for a specific number of years. (2010-01-11) (brevet)

payment bond

  1. A bond given by a contractor to guarantee the payment for labour to be provided or materials to be supplied in connection with a contract awarded to that contractor.
  2. A bond given to ensure that the subcontractor, providing labour or supplying materials to a contractor, will be paid their proper charges up to the value of the bond.
  3. A type of surety bond. (2010-01-11) (cautionnement de paiement)

payroll costs

Direct salaries paid plus costs associated with direct salaries; for example, provision for statutory holidays, vacations with pay, the contractor's contribution for unemployment insurance and workmen's compensation, health and medical insurance, group life insurance and pension. (2010-01-11) (coût de rémunération)

per diem rates

  1. A latin phrase meaning “by the day”.
  2. Service contracts. A time rate whereby the contractor is paid a fixed rate inclusive of payroll and overhead costs and profit, for each normal working day as defined in the contract. (2010-01-11) (honoraires quotidiens)

performance bond

Bond given to guarantee the performance or completion of a contract in accordance with its terms and conditions. (2010-01-11) (cautionnement d'exécution)

performance (in the context of a contract)

The fulfillment or accomplishment of that which is required by a contract or under a condition. (2010-01-11) (exécution [dans le cadre d'un contrat])

performance (in the context of advance payments)

The funds received will be used solely for the purpose of the contract;

  1. The amount of the payment is ascertained or ascertainable under the contract;
  2. The contractor is not in default of its obligations under the contract; and
  3. The payment is related to an identifiable part of the contractual undertakings. (2010-01-11) (exécution [dans le cadre de paiements anticipés])

performance (in the context of progress payments)

  1. All authorizations required under the contract have been obtained; the claim is consistent with the progress of the work and is in accordance with the contract.
  2. Indirect costs have been paid for or accrued in the accounts.
  3. Direct materials and work under subcontract have been received, accepted and either paid for or accrued in the accounts, following receipt of invoice from the contractor/subcontractor, and have been or will be used exclusively for the purpose of the contract.
  4. All direct labour costs have been paid for or accrued in the accounts and all such costs were incurred exclusively for the purpose of the contract.
  5. All other direct costs have been paid for or accrued in the accounts, following receipt of applicable invoice or expense voucher and that all such costs were incurred exclusively for the purpose of the contract.
  6. No liens, encumbrances, charges or other claims exist against the work, except those which may arise by operation of law, such as a lien in the nature of an unpaid contractor's lien and in respect of which an progress payment and/or advance payment has been or will be made by Canada. (2010-01-11) (exécution [dans le cadre de paiements progressifs])

personnel security clearance

The security screening of persons who are likely to have access, on a need-to-know basis, to classified information, assets or controlled areas in order to provide a clearance for undertaking the work. (2010-01-11) (attestation de sécurité)

personnel security screening

The process of conducting a security screening activity and evaluating an individual's reliability and/or loyalty to Canada in support of a decision to grant, grant with a waiver, deny, or revoke a reliability status, security clearance or site access clearance, in accordance with the TBS Standard on Security Screening. This assessment is required for contract positions where the personnel require unsupervised access to Government of Canada protected and classified information, assets, facilities or information technology systems.

  • Security screening for reliability status appraises an individual's honesty and whether they can be trusted to protect the employer's interests. Security screening for reliability status can include enhanced inquiries, verifications and assessments when duties involve or directly support security and intelligence functions.
  • Security screening for a security clearance appraises an individual's loyalty to Canada and their reliability as it relates to that loyalty.

(2022-05-02) (enquête de sécurité sur le personnel)

physical security

The use of physical safeguards to prevent and delay unauthorized access to assets, detect attempted and actual unauthorized access and activate appropriate responses. (2010-01-11) (sécurité physique)

point rating

An evaluation procedure using values assigned to criteria to rate suppliers. (2010-01-11) (cotation numérique)

Policy on Green Procurement

A policy designed to ensure that the government cost effectively procures, operates and disposes of its assets in a manner that protects the environment and supports sustainable development objectives. (2010-01-11) (Politique d'achats écologiques)


  1. The consideration given in exchange or sale of anything.
  2. Defence Production Act. Includes rate or charge for any service. (2010-01-11) (prix)

price and availability (P&A) enquiry

A request to the trade for information, which is needed by PWGSC or a client for program planning or budgetary purposes. P&A enquiries must clearly indicate that the request is not a bid solicitation. (2010-01-11) (demande de prix et disponibilité)


The process of obtaining goods and services that includes the determination of requirements and acquisition from a supply system or by purchase from the trade. The procurement process has four phases:

  1. Pre-contractual phase.Includes activities related to requirement definition and procurement planning.
  2. Contracting phase. Includes all activities from bid solicitation to contract award.
  3. Contract administration phase. Includes activities such as progress monitoring, delivery follow-up, payment action, etc.
  4. Post-contractual phase includes file final action (for example, client satisfaction, contractor agreement to final claim, final contract amendment, completion of financial audits, proof of delivery, return of performance bonds) and close out (for example, completeness and accuracy of file documentation and adherence to file presentation standards). (2010-01-11) (approvisionnement)

Procurement Assistance Canada (PAC)

PAC supports the participation of smaller and diverse businesses in the federal government procurement process by:

  1. working with a cross-country network of partner organizations that support smaller and diverse supplier communities;
  2. helping smaller and diverse businesses become aware of the opportunity to participate in federal procurement, learn how to find opportunities, and navigate the government procurement system;
  3. working to understand barriers and impacts to small and diverse business communities by collecting data about business communities to inform departmental policies, programs and services;
  4. identifying barriers and making recommendations to improve specific procurements, as well as the procurement process as a whole;
  5. providing advice to PWGSC procurement specialists on strategies to reduce barriers in procurement and industry engagement activities to support inclusive procurement opportunities;
  6. acting as a central point of contact for over 100 federal client departments, providing support and guidance for their procurement needs;
  7. engaging with provinces, territories and international partners to facilitate the sharing of best practices and potential collaboration on procurement modernization;
  8. maintaining the Buyandsell.gc.ca website that provides information on tendering opportunities, procurement policies, as well as procurement related news and events.

(2021-12-02) (Soutien en approvisionnement Canada [SAC])

Procurement Business Number (PBN)

A unique identifier that is assigned to each supplier when they register in the Supplier Registration Information service, on the Buying and Selling Web site. It is based on the nine-digit Business Number that Canada Revenue Agency assigns to a supplier for tax matters related to business in Canada. (2010-08-16) (numéro d'entreprise – approvisionnement [NEA])

Procurement Ombudsman

An independent organization with a government-wide mandate, which is defined in the Federal Accountability Act. Its overall objective is to ensure the fairness, openness and transparency of government procurement. (2010-01-11) (ombudsman de l'approvisionnement)

Procurement Strategy for Indigenous Business (PSIB)

Consists of measures intended to increase the number of Indigenous firms competing for and winning federal contracts. Particularly, if it includes measures to better inform Indigenous businesses about government procurement needs and to better inform government procurement officers about the capacity of Indigenous businesses. The strategy is consistent with the government's general policy on procurement, which emphasizes competition and value for money. (2022-05-12) (Stratégie d'approvisionnement auprès des entreprises autochtones [SAEA])

product quality management

Process applied to ensure the required quality of goods and services. The product quality management (PQM) refers to all considerations, which are undertaken within the procurement process, to provide clients with quality goods and services that conform to the stated requirements. Inherent to PQM are such actions as proper requirements definition; judicious sourcing, as applicable; thorough supplier evaluation; and the inclusion of proper quality related bid solicitation and contract clauses. The concept of PQM embodies quality assurance, quality control and inspection. See quality assurance, quality control, inspection, and quality. (2010-01-11) (gestion de la qualité du produit)


See manufacturing. (2010-01-11) (production)

production assets

Covers special production tooling, special test equipment, Department of National Defence-loaned equipment, United States government property, and any other government property for which Public Works and Government Services Canada has been specifically or directly charged with assets management responsibility. (2010-01-11) (biens de production)


The ratio of some output to some input. A measure of how well resources are combined and utilized to achieve a particular desirable result. Productivity ratios may be measured in one of the following three ways:

  1. Total Output. Total Input.
  2. Total Results Achieved. Total Resources Consumed.
  3. Effectiveness. Efficiency.

The concept of productivity recognizes the interplay between various factors in the workplace. The output or results achieved may be related to different inputs or resources in the form of various productivity ratios; for example, output per labour hour, output per unit of material (as in kilometers driven per liter of gas) or output per unit of capital. Each of these productivity ratios may be influenced by a combination of factors, such as quality and availability of materials, scale of operations, rate of capacity utilization, availability and throughput capacity of capital equipment, attitude and skill level of the work force, motivation and effectiveness of the management. The manner in which these factors interrelate will have a bearing on the resulting productivity ratio. Productivity improvements or gains are generally realized in terms of increased revenue or profit, better quality or performance, or lower prices. (2010-01-11) (productivité)

Product, Resource, Operating and Contingency (PROC)

The cost factors associated with the total product life cycle:

  1. Product costs. Costs paid for the supply of goods to a specified delivery point.
  2. Resource costs. The total government resource cost of acquiring, distributing and accounting for the goods.
  3. Operating costs. The costs of operating, maintaining and repairing the goods and the depreciation incurred.
  4. Contingency costs. Those costs incurred by not having the goods available when they are required. PROC analysis is used when best value for the money spent on the acquisition over its useful life is required. (2010-01-11) (coût du PREI [produit, des ressources, d'exploitation et des imprévus])


  1. Generaly the benefit or advantage in money or in money's worth.
  2. Income tax law. The surplus in the taxation period by which the receipts from a trade or business exceed the expenditures necessary for the purpose of earning those receipts.
  3. A general term for the excess of revenue, proceeds or selling price over related costs.
  4. Net income. (2010-01-11) (profit)

progress payment

A payment made by or on behalf of Canada under the contract after the performance of the part of the contract in respect of which the payment is made but before the performance of the whole contract. (2010-01-11) (paiement progressif)


An offer, submitted in response to a request from a contracting authority, which constitutes a solution to the problem, requirement or objective in the request. (2010-01-11) (proposition)


  1. Noun: a proprietor or owner, one who has the exclusive title to a thing; one who possesses or holds the title to a thing in his own right.
  2. Adjective: belonging to ownership; owned by a particular person; belonging or pertaining to a proprietor; relating to a certain owner or proprietor. (2010-01-11) (propriétaire)

protected information

Information related to other than the national interest that may qualify for an exemption or exclusion under the Access to Information Actor Privacy Act. (2010-01-11) (renseignements de nature protégée)


Includes any item designated as such in the contract, including models, patterns and samples. (2010-01-11) (prototype)

public notice

An announcement on an approved electronic information service, in one or more newspapers, or by means of some other accepted media. (2010-01-11) (avis public)

public property

Financial Administration Act. All property, other than money, belonging to His Majesty in right of Canada. (2022-12-01) (biens publics)

purchase description

A statement of requirements to identify and describe a particular product or service, but which may be less detailed than a specification. The description includes sufficient data to enable the supply and evaluation of the item either by means of reference to a specification or standard, or by the inclusion of critical performance data. (2010-01-11) (description d'achat)

purchase order

A purchaser's written offer to a supplier, formally stating all terms and conditions of a proposed transaction. (2010-01-11) (bon de commande)


The buying process within the procurement cycle. (2010-01-11) (achat)


qualification program

The entire process by which products are obtained from suppliers, examined and tested and then identified on a qualified products list. The qualification process includes an evaluation of the manufacturer's facilities and capabilities to meet requirements on a continuing basis. (2010-01-11) (programme d'homologation)

qualified product

A product manufactured under controlled and substantially unchanged conditions, meeting the requirements and procedures to enable that product to be listed in the applicable qualified products list. (2010-01-11) (produit homologué)

Qualified Products List (QPL)

A listing of products qualified as conforming to the requirements of standards or specifications by the appropriate panel. A QPL identifies the qualifying authority and includes the appropriate product identification and reference data together with the name of the supplier of the qualified product. (2010-01-11) (liste des produits homologués [LPH])

qualifying authority

The agency or organization responsible for the maintenance of a listing program, including the development and implementation of policies and procedures, and is responsible for the accuracy and integrity of listings. (2010-01-11) (autorité d'homologation)


The totality of features and characteristics of a product or service that bear on its ability to satisfy a given need. (2010-01-11) (qualité)

quality assurance

A system of activities whose purpose is to provide assurance that the quality control is in fact being done effectively. For a specific product or service, this involves verification, audits and the evaluation of the quality factors that affect the specification, production, inspection and distribution. See government quality assurance. (2010-01-11) (assurance de la qualité)

quality audit

The monitoring of quality levels at any stage to provide information for management. (2010-01-11) (vérification de la qualité)

quality control

This refers to a range of activities, to ensure and verify that the specific quality of the product or service has been met. (2010-01-11) (contrôle de la qualité)

quality of design

The value inherent in the design; a measure of the excellence of the design in relation to the client's requirements. (2010-01-11) (qualité technique)


A bid submitted in response to a Request for Quotation from a contracting authority. (2010-01-11) (présentation de prix)



What is fair, just, suitable and proper in the given circumstances of a case, that which is fit and appropriate to the end in view, and that which is according to reason, not immoderate or excessive. (2010-01-11) (raisonnable)

receiver manager

See trustee in bankruptcy. (2010-01-11) (séquestre-gérant)


Legal or equitable proceeding in which a receiver is appointed for an insolvent corporation, partnership or individual. The state or condition of a corporation, partnership or individual over whom a receiver has been appointed for protection of its assets and for ultimate sale and distribution to creditors. (2010-01-11) (mise sous séquestre)

Regional Individual Standing Offer (RISO)

A standing offer issued for the use of a specific department or agency within a specific geographic area. RISOs are arranged by PWGSC on receipt of a funded requisition. (2010-01-11) (offre à commandes individuelle et régionale [OCIR])

Regional Master Standing Offer (RMSO)

A standing offer issued for the use of many departments or agencies within a specific geographic area. RMSOs are arranged by PWGSC without any requisitions from customer departments or agencies. (2010-01-11) (offre à commandes principale et régionale [OCPR])

Registered Quality Systems List

Listing of suppliers that have had their quality system audited by an approved auditor, against the appropriate quality standard, are found to meet all of the criteria of the standard and are registered by the applicable certifying agency. (2010-01-11) (liste des systèmes d'assurance de la qualité inscrits)


The measures expressed of the ability of a product to function successfully when required, for the period required, in the specified environment. (2010-01-11) (fiabilité)

reliability status

Indicates successful completion of a reliability check; allows regular access to government assets and, with a need-to-know, to protected information. (2009-12-15) (cote de fiabilité)


A right given to a party by law or by contract which that may exercise upon a default by the other contracting party, or upon the commission of a wrong by another party. It means any remedial right to which an aggrieved party is entitled with or without resort to a tribunal. (2010-01-11) (recours)


  1. Exemption from payment of customs duties and excise taxes, which are ordinarily payable on goods or materiel imported into Canada.
  2. A partial or total refund or the non-payment of taxes, which otherwise would be payable and authorized by order-in-council. (2010-01-11) (remise)


A re-determination of agreed contract or pricing terms, due to changed requirements or conditions, or in accordance with a previous agreement. Some contracts provide for renegotiation at a stated time or under stated conditions. (2010-01-11) (révision du contrat)


To restore (something damaged or broken) to good condition or working order. (2010-01-11) (réparation)

repair and overhaul

The repair of an item of equipment to return it to serviceable condition; overhaul may or may not be coincident with repair. Repair normally involves the correction of specific defects only, whereas overhaul will entail replacement of either worn and damaged parts, or parts for which service life has expired. Overhaul is normally affected only after expiry of service life due to hours of use or elapsed time. (2010-01-11) (réparation et révision)


  1. General. A statement made expressly or by implication such as by conduct.
  2. Contract. In the law of contracts, it is a statement made by one of the parties of the contract to the other, before or at the time of entering into the contract, or of some matter relating to the contract. (2010-01-11) (présentation)

Request for Information (RFI)

An RFI or Letter of Interest is not open for bidding. The buyer is interested in receiving feedback from suppliers and may re-open or re-issue an opportunity as an open tender at a later day. RFIs may include attached documents. (2010-01-11) (demande de renseignements)

Request for Proposal (RFP)

A form of bid solicitation used where the selection of a supplier cannot be made solely on the basis of the lowest price. An RFP is used to procure the most cost-effective solution based upon evaluation criteria identified in the RFP. See 4.10.15. (2014-09-25) (demande de propositions)

Request for Quotation (RFQ)

Solicitation document used to solicit bids for low dollar value requirements below $25,000 for goods and $40,000 for construction and services, including all applicable taxes, from one or more suppliers. It is a request to bidders, which is evaluated with the objective of accepting the lowest-priced responsive quotation. See 4.10.1. (2020-05-04) (demande de prix)

Request for Standing Offer (RFSO)

A solicitation document used to solicit standing offers. It must clearly state the requirement, the evaluation method and selection criteria, the call-up procedures, the ranking methodologies, whenever applicable, to be used for making call-ups against the authorized standing offer(s), and all terms and conditions applicable to the contract that is brought into effect, as a result of any call-up. (2010-01-11) (demande d'offres à commandes [DOC])

Request for Supply Arrangement (RFSA)

A procurement tool established by PWGSC for use by clients that allows buyers to solicit bids from a pool of pre-qualified suppliers for specific requirements. The intent is to establish a framework to permit expeditious processing of individual bid solicitations which result in legally binding contracts for the goods and services described in those bid solicitations. (2013-04-25) (demande d’arrangement en matière d’approvisionnement [DAMA])


A request to obtain materiel or services and authority to commit funds to cover the purchase. (2010-01-11) (demande)


Contract. To abrogate, annul, void or cancel a contract. The right of rescission is the right to cancel (rescind) a contract upon the occurrence of certain kinds of default by the other contracting party (like misrepresentation, duress, undue influence). To declare a contract void in its inception and to put an end to it as though it never were. It is limited to contracts where it is possible to rescind the contract and substantially to restore all parties to their respective positions before the contract was entered into. (2010-01-11) (annulation)


The state of being answerable for an obligation and includes judgment, skill, ability and capacity. The obligation to answer for an act done, and to repair or otherwise make restitution for any injury it may have caused. (2010-01-11) (responsabilité)

responsive bid

  1. A bid, tender, proposal or quotation that meets all the mandatory requirements stipulated in the solicitation document.
  2. Synonymous with valid bid. (2010-01-11) (soumission recevable)


Usage-based payments made by one party (the licensee) to another (the licensor) for ongoing use of an asset, for example an intellectual property right. (2010-01-11) (redevances)



  1. A transfer of a property from one person to another for a price in money. A sale of goods is different from an exchange or barter where no funds are involved. In order to determine at what point property in the goods sold rests in the purchaser, the terms of the contract have to be considered to ascertain in whom the property is vested. The property may pass at once or at a future time contingent on the fulfillment of some condition.
  2. Includes consignment or other disposition of materials and the supplying of any service. (2010-01-11) (vente)


Accounting. That portion of the residual value of an asset representing the value of parts reclaimed for future use after retirement of the asset. (2010-01-11) (récupération)


  1. General. A relatively small quantity of material, or an individual object, where the quantity of the mass, group, bulk, etc. that it represents, may be inferred. A small quantity presented or sold to buyers as a specimen of goods offered for sale.
  2. When goods are sold by sample, three conditions are implied in the sale:
    1. the bulk must correspond with the sample in quality;
    2. the buyer must have a reasonable opportunity of comparing the bulk with the sample;
    3. the goods must be free from any defect rendering them unmerchantable, which would not be apparent on reasonable examination of the sample. (2010-01-11) (échantillon)

scheduled overtime

Overtime experienced by a contractor through their usual business operations. Any resulting overtime premium costs are usually included in the contractor's overhead account. (2010-01-11) (heures supplémentaires prévues)


See under seal. (2010-01-11) (sceau)


The level of classification that applies to information or assets when compromise could reasonably be expected to cause serious injury to the national interest. (2010-01-11) (secret)

security deposit

The deposit by the bidder/contractor of securities, including government guaranteed bonds, bills of exchange and irrevocable standby letters of credit, which the contracting authority may convert to complete the bidder's/contractor's obligations. (2010-01-11) (dépôt de garantie)

Security Requirements Checklist (SRCL)

A form used to identify security requirements associated with a contract, which contains protected or classified security requirements. (2010-01-11) (Liste de vérification des exigences relatives à la sécurité [LVERS])


A procurement tool used to identify qualified firms and individuals for low dollar value construction, maintenance and real property consulting (architectural and engineering services). (2010-01-11) (SELECT)

selling price

This is the net selling price to the buyer after all discounts. It includes all applicable provincial sales taxes, Goods and Services Tax/Harmonized Sales Tax, excise taxes and tariffs. (2010-01-11) (prix de vente)

sensitive information

Comprises protected or classified information. (2022-05-02) (Renseignements de nature délicate)

service contract (definition per the Government Contracts Regulations)

A contract for the provision of services, including printing services, but does not include an agreement under which a person is employed as an officer, clerk or employee of His Majesty. (2022-12-01) (marché de services)

Set-Aside Program for Aboriginal Business

Establishes two types of set-asides: mandatory and voluntary. Mandatory set-asides apply to procurements over $5,000 for which Aboriginal populations are the primary recipients of the goods, services, or construction to be contracted. Voluntary set-asides apply to all other procurements designated by client departments as reserved for Aboriginal business. (2010-01-11) (Programme des marchés réservés aux entreprises autochtones)

site visit

A meeting held on site and conducted by either PWGSC or the client to provide suppliers with an opportunity to view and assess aspects of the work that cannot be adequately described in performance specifications or the statement of work. (2010-01-11) (visite des lieux)

sole source

The supply of a good or service that is available from only one supplier. A sole source contract implies that there is only one supplier that can fulfill the requirement and that any attempt to obtain bids would only result in one supplier being able to meet the need. (2010-01-11) (fournisseur unique)

special production tooling

Tools such as jigs, dies, fixtures, moulds, patterns, taps, gauges and other like items, which are of such a specialized nature that, without substantial modification or alteration, their use is peculiar to the production of supplies or the parts thereof, which are required by Canada. (2010-01-11) (outillage spécial de production)

special test equipment

Either single or multipurpose integrated test units engineered, designed, fabricated or modified to meet the test requirements of the specifications peculiar to the end items of equipment, which are required by Canada. Also included are associated computer software programs. The term "Special Test Equipment" does not include: special production tooling; buildings and non-severable structures (except foundations and similar improvements necessary for the installation of special test equipment); and test equipment loaned from a client's inventory. (2010-01-11) (matériel spécial d'essai)


A statement of requirements to be satisfied for materiel, a product or service, including the identification of test methods, or the procedures that will determine whether the requirements have been met. (2010-01-11) (spécification)

split contract

The practice of unnecessarily dividing an aggregate requirement into a number of smaller contracts, to avoid controls or contract approval authorities. (2010-01-11) (fractionnement d'un contrat)


  1. A formal specification, for recurring major interests, utilizing the consensus process, and published by a recognized standards-issuing agency. In particular, a Canadian General Standards Board (CGSB) standard is one developed in accordance with the procedures set out in the CGSB manual, Policy and Procedures Preparation of Standards.
  2. A formal statement of requirements established by authority, custom or general consent of those affected, and intended for general recurrent use. Normally, a standard is developed through a consensus process by a committee widely representative of major interests and is published by an accredited standards-writing agency, as determined by the Standards Council of Canada or recognized standards-issuing agency. (2010-01-11) (norme)

standard procurement

A standard procurement has the characteristics of judgment, review, and assessment. The procurement is based on the process of finding a solution to a requirement using existing technology and knowledge. Evaluation methods have to be defined, and may use pre-established strategies. The procurement process is established and understood though it can be complicated (many details or factors). Control is within the department’s domain of authority. Contract administration is predictable and established. There may be a medium level of risk. (2011-10-04) (approvisionnement normalisé)

standing offer

An offer from a supplier to provide goods and/or services to clients at prearranged prices or pricing basis and under set terms and conditions for a specified period on an as-and-when requested basis. When a call-up is made against a standing offer, it indicates Canada’s acceptance of the supplier’s offer and creates a contract unilaterally. A separate contract is entered into each time a call-up is made against a standing offer. Canada's liability to pay the supplier is limited to the actual value of the call-ups made within the period specified in the standing offer. (2019-05-30) (offre à commandes)

Standing Offer and Call-up Authority (SOCA)

A document issued by the standing offer authority that serves two primary purposes:

  1. notification to the offeror, that authority to call-up against a standing offer has been given to specific authorized users in respect of its standing offer; and
  2. notification to clients, that, in respect to a specific standing offer, authority to call-up against the said standing offer has been granted to them as provided in the standing offer. (2010-01-11) (autorisation de passer des commandes subséquentes à une offre à commandes [APCSOC])

Standing Offer Authority

Means the person designated as such in the standing offer, or by notice to the offeror, to act as the representative of Canada in the management of the standing offer. The Standing Offer Authority will issue a document called "Standing Offer and Call-up Authority" to authorize identified users to make call-ups against the standing offer and to notify the offeror that authority to make call-ups against the standing offer has been given to identified users. (2010-01-11) (responsable de l'offre à commandes)


A function of warehousing which involves the receipt of an item, putting it away for safekeeping and subsequent retrieval, when required for use, sale or disposal. (2010-01-11) (entreposage)


One who takes portion of a contract from principal contractor or another subcontractor. One who takes from the principal or prime contractor a specific part of the work undertaken by the principal or prime contractor. (2010-01-11) (sous-traitant)


The operations normally involved in furnishing, providing, affording or distributing items of supply to a user to satisfy stated requirements. The function includes all actions from the initial determination of requirements, as to kind and quality through testing, standardization, adoption, modification, procurement, acceptance, receipt, storage, issue, maintenance, distribution, salvage, reissue, disposal, accountability, responsibility and stock control. (2010-01-11) (approvisionnement)

supply arrangement

A non-binding agreement between PWGSC and a supplier who is pre-qualified to provide goods or services to the Government of Canada. (2010-01-11) (arrangement en matière d'approvisionnement)

supply arrangement authority

Person designated as such in the supply arrangement, or by notice to the supplier, to act as the representative of Canada in the management of the supply arrangement. (2010-01-11) (responsable de l'arrangement en matière d'approvisionnement)

Supply Transfer Order

A document, which is used when goods and services are to be provided by a provincial government. (2010-01-11) (demande de transfert de biens et de services)

surety bond

A contractual arrangement between the surety, the principal (contractor) and the obligee (Canada) whereby the surety agrees to protect the obligee if the principal defaults in performing the principal's contractual obligations. The bond is the instrument that binds the surety. (2010-01-11) (cautionnement)

surplus material

  1. Materials, including raw materials, parts and equipment, purchased or manufactured by a contractor specifically for a contract, but which remain unused after completion of the contract.
  2. Materials purchased or manufactured by the contractor specifically for a Crown contract, but not used and left over after completion of the contract. (2010-01-11) (matériel excédentaire)


take-out rate

The negotiated rate applied to laid-down cost for the recovery of overhead costs applicable to resale business, when the resale business does not account for all functions of the particular cost centre. The resulting rate will be somewhat less than that, which applies to other work, using the cost centre facilities. A take-out rate is normally used only as an expedient, when the contractor does not have sufficient resale business to warrant a separate burden or cost centre. (2010-01-11) (taux de recouvrement)

target incentive fee

Contract. A contract where a bonus is paid on the basis of agreed sharing of savings relative to the target price. This may also provide for reduction in profits where target cost is exceeded. (2010-01-11) (tarif cible avec prime d'encouragement)

target price

Fixed fee and incentive fee formula. A method of pricing in which the contractor is paid costs reasonably and properly incurred, as determined by audit, together with an agreed upon fixed fee, as profit supplemented by an incentive fee, which will be paid to the contractor on any savings achieved between a prescribed target cost and the actual cost, as established by audit. A target price contract may also include a provision for a ceiling price. (2010-01-11) (prix visé)


A published schedule showing the rates, charges, classification, rules, regulations and other provisions applicable to transportation and incidental services. (2010-01-11) (tarif)

task authorization

A task authorization (TA) is a structured administrative tool that enables PWGSC or a client to authorize work by a contractor on an "as and when requested" basis in accordance with the conditions of the contract. TAs are not individual contracts. (2010-12-15) (autorisation de tâches)

task authorization contracts

A contract with task authorizations is a method of supply for services under which all of the work or a portion of the work will be performed on an “as and when requested basis” through predetermined conditions including an administrative process involving task authorizations. Contracts with TAs are used in service contracting situations when there is a defined need by a client to rapidly have access to one or more categories of service(s) that are expected to be needed on a repetitive basis during the period of the contract. (2010-12-15) (contrats avec autorisation de tâches)

technical authority (and/or Business owner and/or client department or agency)

The individual responsible for providing information, guidance and advice on the technical aspect of a product. (2022-05-12) (responsable technique)

telephone buy

A purchase whereby the telephone is used to solicit bids for requirements valued up to $25,000 for goods, including all applicable taxes, and whereby a contract is entered into over the telephone and confirmed in writing. (2020-05-04) (achat par téléphone)

temporary help services

Services provided under contract to the government for assignments in which employees of a supplier work under the direction of public servants. (2010-01-11) (services d'aide temporaire)


A proposal, bid or offer that is submitted in response to an Invitation to Tender, Request for Proposal, or Request for Quotation from a contracting authority. (2010-01-11) (offre)


  1. Contract. Word, phrase or condition in a contract which relates to a particular matter.
  2. A fixed and definite period, a prescribed duration. (2010-01-11) (condition)

termination for default

Termination of a contract or part of a contract as a result of a breach of an obligation. (2010-01-11) (résiliation pour manquement)


An element of inspection. Generally denotes the determination by technical means of the properties or elements of supplies or components thereof, and involves the application of established scientific principles and procedures. (2010-01-11) (essai)

test methods

Detailed technical descriptions of procedures, according to which conformance to the requirements stated in specifications and standards, is determined. (2010-01-11) (méthodes d'essai)

third party liability

Insurance. That type of insurance protection that indemnifies one from liability to third persons, as opposed to insurance coverage for losses sustained by the insured. (2010-01-11) (responsabilité civile)

time payment

  1. A method of making progress payments that provides for specified payments to become due at the times specified in the contract, subject to certification by the inspection and contracting authorities that progress of the work conforms to schedule.
  2. The method of making progress payments based on physical progress of the work on a monthly basis, as determined by the inspection and contracting authorities without any set monthly goals. (2010-01-11) (paiement à terme)


The formal right of ownership of property, including right of possession. (2010-01-11) (titre)

top secret

The level of classification that applies to information or assets when compromise could reasonably be expected to cause exceptionally grave injury to the national interest. (2010-01-11) (très secret)


A distinctive mark of authenticity, through which the products of a particular manufacturer may be distinguished from those of others. A distinctive mark, motto, device, or emblem which a manufacturer stamps, prints, or otherwise affixes to the goods he produces, so that they may be identified in the market, and their origin be vouched for. (2010-01-11) (marque déposée)

transfer price

The price charged to a seller to Canada by another division, subsidiary or affiliate of the seller under common ownership control, or otherwise not dealing at arm's length with the seller to Canada. (2010-01-11) (prix de transfert)

trustee in bankruptcy

A person licensed under the terms of the Bankruptcy Act appointed by court to take possession of the assets of a bankrupt debtor. A trustee becomes in effect a temporary manager of a business who may carry on the business, or alternatively sell the assets. In managing the business, a trustee may be referred to as the receiver manager. (2010-01-11) (syndic de faillite)


under seal

Authenticated by a seal; executed by the affixing of a seal. (2010-01-11) (scellé)

unscheduled overtime

Any unexpected additional overtime experienced on Crown contracts. Payment for unscheduled overtime requires an amendment to the contract, as it is not included in the overhead rate, but is usually directly charged after the contract has been signed. (2010-01-11) (heures supplémentaires imprévues)

U.S. Defence Priorities and Allocations System (DPAS)

A system in existence in the United States to ensure the timely flow of goods, materials and services and the prompt delivery of defence and defence-related needs. (2010-01-11) (Système américain régissant les priorités et les attributions en matière de défense [DPAS])


value for duty

  1. Customs. The price in Canadian currency on which the appropriate rate of customs duty is applicable for goods imported into Canada.
  2. Customs Act. The value of the article, as it would be determined for the purpose of calculating an ad valorem duty upon the importation of such article into Canada, under the laws relating to the customs and the customs tariff, whether such article is in fact subject to ad valorem or other duty or not. (2010-01-11) (valeur imposable)

verification of time for acceptability

An examination of the contractor's records to: determine the actual time charged for carrying out the work in accordance with the terms of the contract; ensure that the amount of time thus determined was required in the performance of the work under the contract; and ascertain that the time charged reflects the performance of the work under the contract in an efficient and economical manner. (2010-01-11) (contrôle du temps en vue de l'acceptation)



The performance of those physical and administrative functions incidental to and required in the conduct of the storage activity, that is, receipt, sorting, identification, inspection, preservation, putting away, safekeeping, retrieval for issue and preparation for shipment of materiel. (2010-01-11) (entreposage)


  1. A statement or representation made by seller of goods as part of a contract of sale, having reference to character, quality, or title of goods, and by which seller promises or undertakes to insure that certain facts are as he represents them.
  2. Express warranty. The seller has made an express warranty when making some specific statement concerning the nature, quality, character, use or purpose of the goods, which induces the buyer to make its purchase of them, and the seller intends to the buyer to rely on its statement.
  3. Implied warranty. A promise arising by operation of law that something that is sold will be merchantable, and fit for the purpose for which the seller knows that it is required. A contract to do certain work, such as a building contract, contains within itself an implied warranty that the work shall be done in a workman-like manner.
  4. Breach of warranty. The consequences that flow from a breach of warranty entitle the innocent party to damages, while a breach of a condition may entitle the innocent party to rescind the contract.
  5. Full warranty. A warranty, which covers full performance, generally both labour and materials. Under a full warranty, the warrantor must remedy the product within a reasonable time, and without charge, after notice of a defect or malfunction.
  6. Limited warranty. A written warranty, which fails to meet one or more of the minimum standards for a full warranty. (2010-01-11) (garantie)


This is a merchant middleman who sells chiefly to retailers or industrial, institutional and commercial buyers for their resale or business use. (2010-01-11) (grossiste)