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3.60. Low Dollar Value Procurements

Attention: The Government Procurement provisions of the North American Free Trade Agreement (NAFTA) continue to apply until the recently announced United States-Mexico-Canada Agreement (USMCA) is ratified and enters into force. More information about the USMCA will be provided in the coming weeks.

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  1. Requirements below $25,000, including all applicable taxes, are considered to be low dollar value (LDV) procurements.
  2. All LDV procurements will be conducted in accordance with the provisions of the Directive on the Processing of Low Dollar Value Procurement (available on GCpedia - Acquisitions Program Policy SuiteThe information is only accessible to federal government department and agency employees.).

3.60.1 Requirements

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  1. When proceeding with a Low Dollar Value (LDV) requirement, contracting officers:
    1. must not split or artificially divide requirements to meet the LDV threshold (see 6.1 General);
    2. must use the most efficient and cost effective approach to select a contractor, either by soliciting bids or by directing the requirement to a sole supplier when it is not cost effective to solicit bids;
    3. must determine the most appropriate procurement strategy for each LDV requirement in order to obtain best value and ensure the timeliness and cost effectiveness of each contract, while respecting Public Works and Government Services Canada's guiding principles, which include client service, competition, accountability and equal treatment (see 1.10.5 Guiding Principles);
    4. must complete a risk assessment (see 3.1.5 Procurement Risk Assessments for Complexity Level 1, 2 and 3 Procurements);
    5. must document the procurement file with the rationale to support the procurement strategy, and the basis on which the estimated value of the contract, that is, below $25,000, was established.
  2. Electronic tools are available for the identification and selection of a supplier on a competitive or a directed basis. Examples of such tools include:
    1. Supplier Registration Information (SRI) system;
    2. Automated Vendor Rotation System (AVRS);
    3. SELECT;
    4. Government Electronic Tendering Service (GETS);
    5. telephone and online trade directories.

3.60.5 Geographic Factors and Low Dollar Value

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This section has been removed as per ARCHIVED - Policy Notification 91R1 - Debriefings.

For reference purposes, section 3.60.5 is available in the Supply Manual ArchiveThe information is only accessible to federal government department and agency employees., Version 2013-3.