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Public Services and Procurement Canada

3.1.1. Planning the procurement

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  1. A non-exhaustive list of some of the factors that the client and the contracting officer can take into account when developing the procurement strategy are listed as follows:
    1. the method of supply;
    2. total estimated cost including all options, as well as maintenance and storage costs, as applicable;
    3. contract period;
    4. delivery requirements;
    5. the procurement schedule;
    6. evaluation procedures and method of selection;
    7. environmental factors;
    8. commercial products versus customized solutions;
    9. risk factors;
    10. limitation of liability or indemnification;
    11. possible use of a fairness monitor;
    12. the participation of small and medium enterprises;
    13. Indigenous considerations;
    14. accessibility requirements;
    15. other national objectives;
    16. compatibility with existing solutions;
    17. the opportunity to consolidate requirements;
    18. disposal of the product, if applicable, and
    19. renewal (procurement of a replacement good or service and all transfer costs).
  2. The contracting officer is required to engage the services of a Price Support Directorate advisor when a procurement presents any of the following characteristics, in accordance with the Directive on the Use of Cost and Price Analysis ServicesThe information is only accessible to federal government department and agency employees.:
    1. Any potential sole-source procurement with a total estimated value of $1,000,000 or more, including applicable taxes, options and amendments.
    2. Any competitive procurement with a total estimated value of $1,000,000 or more, including applicable taxes and options, where only one compliant bid is received.
    3. Any competitive procurement with a total estimated value of $1,000,000 or more, including applicable taxes, with contract provisions for negotiated prices or where prices are likely to be negotiated as a result of a contract amendment.
    4. Any competitive procurement, with a total estimated value of $10,000,000 or more, including applicable taxes, options and amendments.
  3. The approval authority must be given the opportunity to approve or reject the proposed procurement strategy as early as possible in the process, to avoid the situation where a contracting officer has done significant work following a strategy which may not be approved.
  4. The procurement strategy must identify any deviations to contracting policies.
  5. If events during the procurement process result in a significant change in the procurement strategy, a revised procurement plan must be approved before implementation or completion of the procurement process.
  6. For related information, see 6.5 Procurement Approval Documents.
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