Practitioner’s Guide for Procurement Pricing

Public Services and Procurement Canada (PSPC) has developed a Practitioner’s Guide for Procurement Pricing (“The Guide”).

The Guide is intended to inform those involved in Government of Canada contracting of the required steps and factors to be considered in making procurement pricing decisions, including aligning the pricing with the overall procurement strategy, objectives and priorities.

The development of the Guide has been divided into three phases:

  • Phase 1: Practitioner’s Guide for Procurement Pricing (PDF 2.02MB) introduces guidance on the consideration of pricing throughout the acquisition lifecycle and recommendations from a contract management perspective on timing, documentation and option analysis. This version of the guide will include proposed revisions to the basis of payment, guidance on the use of incentives, and a costing standard to help practitioners determine the acceptability of contract costs.
  • Phase 2 of the Guide provides direction and techniques on assessing the acceptability of contentious contract costing areas. This version will also incorporate further guidance on basis of payment, including supporting clauses. Phase 2 of the Guide is presently under development.
  • Phase 3 of the Guide will present further guidance and tools for the determination of profit and price. Phase 3 of the Guide is presently in the initial research phase.
    • Pricing and Incentives Questionnaire: PSPC is seeking to gain a better understanding of procurement pricing practices and the use of incentives, as employed by all stakeholders within the procurement community, both internal and external to government. We welcome your insights which can be provided in this profit questionnaire and submitted to the email below by August 16, 2019.

Background Information

PSPC has undertaken the task of updating guidance on contract costing and pricing in response to independent studies conducted on Canada’s current pricing practices.

The research to revise guidance involved broad stakeholder consultations and benchmarking against practices employed by other jurisdictions.

Key messages learned from the consultations, research, and benchmarking have been incorporated into the Guide.

Comments and Feedback

The Guide is intended to remain evergreen by continuously seeking to learn and adapt to emerging practices and PSPC’s experience. PSPC welcomes your suggestions and ideas.

Comments and feedback can be provided to the PSPC team responsible, identified below.

Procurement Support Services Sector - Professional Practices Group
Acquisitions Program
Public Services and Procurement Canada