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Each year the Government publishes, on the Internet, statistics on purchases and contracts conducted in departments and agencies. The annual Purchasing Activity Report is used to provide statistical analysis of the processes and tools through which government contracting is conducted.
In reviewing the statistics it must be kept in mind that the federal Government's Contracting Policy objective is to acquire goods and services and to carry out construction in a manner that enhances access, competition and fairness and results in best value or, if appropriate, the optimal balance of overall benefits to the Crown and the Canadian people.
As well, contracting is to be conducted in a manner that will:
The Government is committed to working on strengthening and modernising government procurement, and to ensure greater transparency, accountability, fiscal responsibility, and ethical conduct in government.
In keeping with these overall objectives, on March 23, 2004, the Government announced a new policy on the mandatory publication of contracts over $10,000. The published lists of contracts and contract amendments in the proactive disclosure pages on various departmental web sites are accessible from this Treasury Board Secretariat web site.
On April 11, 2006, the Government of Canada introduced the Federal Accountability Action Plan, which contains specific measures to help strengthen accountability and increase transparency and oversight in government operations, including procurement.
The Government is also committed to ensuring that Canadians are provided with appropriate information on activities in a cost-effective, efficient and transparent manner. Suppliers who wish to find out more about doing business with the federal government should consult Canada's Electronic Tendering Service at http://www.merx.com. Those who wish to find out more about the inter-departmental initiative to improve supplier and buyer awareness and simplify access to federal government purchasing information should go to the Business Access Canada (formerly Contracts Canada) web site at http://contractscanada.gc.ca/en/index.html.
Departments and Agencies subject to Government Contracts Regulations
|Contract Type||Solicitation Procedure||Number||% of Total Number||Value
|% of Total Value|
|Goods||Contracts below $25,000, including amendments||177,949||414,540|
|Electronic bidding (Note 2.3 & 5)||2,736||3,551,259|
|Traditional competitive (Note 2.3 & 5)||992||948,421|
|ACANs (Note 2.3 & 5)||592||558,436|
|Competitive awards (Note 2.3)||4,320||5,058,116|
|Competitive including amendments||4,320||69.5%||6,237,959||74.2%|
|Non-competitive awards (Note 2.3)||1,896||1,920,770|
|Non-Competitive including amendments||1,896||30.5%||2,164,660||25.8%|
|Subtotal Contracts $25,000 and above||6,216||100.0%||8,402,619||100.0%|
|Total of All Goods Contracts||184,165||8,817,159|
|Proportion of All Contracts||53.9%||53.6%|
|Services||Contracts below $25,000, including amendments||128,641||630,951|
|Competitive including amendments||10,130||84.5%||5,494,044||89.6%|
|Non-Competitive including amendments||1,853||15.5%||636,840||10.4%|
|Subtotal Contracts $25,000 and above||11,983||100.0%||6,130,884||100.0%|
|Total of All Service Contracts||140,624||6,761,835|
|Proportion of All Contracts||41.1%||41.1%|
|Construction||Contracts below $25,000, including amendments||15,170||61,362|
|Competitive including amendments||1,749||88.8%||783,764||98.1%|
|Non-Competitive including amendments||221||11.2%||15,051||1.9%|
|Subtotal Contracts $25,000 and above||1,970||100.0%||798,815||100.0%|
|Total of All Construction Contracts||17,140||860,177|
|Proportion of All Contracts||5.0%||5.2%|
|All Contracts||Contracts below $25,000, including amendments||321,760||1,106,853|
|Competitive including amendments||16,199||80.3%||12,515,767||81.6%|
|Non-Competitive including amendments||3,970||19.7%||2,816,551||18.4%|
|Subtotal Contracts $25,000 and above||20,169||15,332,318|
|Total Contract Awards including Net Amendments||341,929||16,439,171|
The objective of the annual Purchasing Activity Report is to provide a basic snapshot of purchasing activities of the Government of Canada. It is based on the Government of Canada's policy framework in effect in 2008. It is important to note that there is no statutory requirement for such a report. It complements information on contracting statistics on Business Access Canada (formerly Contracts Canada) web site at http://www.contractscanada.gc.ca/. Further information on contracting and contracting activities may be found for major purchasing departments in the Government's public and Parliamentary reporting documents, specifically their Annual Report on Plans and Priorities and Departmental Performance Reports. Internal departmental audits on the contracting function are posted on http://www.tbs-sct.gc.ca/rma/database/aeve_e.asp. Also, as mentioned in the Introduction above, the published lists of contracts in the proactive disclosure pages on various departmental web sites are accessible from this Treasury Board Secretariat web site http://www.tbs-sct.gc.ca/pd-dp/gr-rg/index_e.asp
Information on the Procurement Strategy for Aboriginal Business can be found at the Department of Indian Affairs and Northern Development web site http://www.ainc-inac.gc.ca/ecd/ab/psa/index-eng.asp.
The Purchasing Activity Report was derived from data provided by the reporting entities specified below. Since the data is not audited, no warranty or other legal assurance as to the truth, accuracy or completeness of any of this information is stated or can be implied. Any person making use of this information for any purpose whatsoever does so entirely at his/her own risk, and the Crown shall have no liability whatsoever. This report covers government purchasing activities for the period January to December 2008 inclusive.
The main features of the Government of Canada's procurement policy framework in effect in 2008 that are relevant to the Purchasing Activity Report are as follows:
2.1 The objective of government procurement contracting is to acquire goods and services and to carry out construction in a manner that enhances access, competition and fairness and results in best value or, if appropriate, the optimal balance of overall benefits to the Crown and the Canadian people.
2.2 Government contracting shall be conducted in a manner that will:
2.3 Appendix A of the Treasury Board Contracting Policy defines a competitive contract as 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 by:
2.4 Section 6 of the Government Contracts Regulations specifies that a contracting authority may enter into a contract without soliciting bids where
The reporting entities targeted in the report are the contracting authorities, as defined in the Government Contracts Regulations and the Financial Administration Act (FAA):
(a) with respect to a department named in Schedule I, the Minister presiding over the department,
(a.1) with respect to a division or branch of the federal public administration set out in column I of Schedule I.1, the Minister set out in column II of that Schedule,
(b) with respect to a commission under the Inquiries Act, the Minister designated by order of the Governor in Council as the appropriate Minister.
In accordance with subsection 41(2) of the Financial Administration Act, the Government Contracts Regulations do not apply to Canada Revenue Agency. However, the agency has voluntarily provided data on its purchasing activity in year 2008.
The Government Contracts Regulations apply to all contracts except
In addition, the Treasury Board (TB) has given approval to exempt the Canadian Security Intelligence Service and the Office of the Governor-General's Secretary from TB reporting requirements.
The Government's Contracting Policy includes a series of definitions that serve as the basis for the categories found in the report.
Advance contract award notice (ACAN) - An ACAN allows departments and agencies to post a notice, for no fewer than 15 calendar days, indicating to the supplier community that it intends to award a good, service or construction contract to a pre-identified contractor. If no other supplier submits, during the 15-calendar day posting period, a statement of capabilities that meet the requirements set out in the ACAN, the competitive requirements of the government's contracting policy have been met. Following notification to suppliers not successful in demonstrating that their statement of capabilities meets the requirements set out in the ACAN, the contract may then be awarded using the Treasury Board's electronic bidding authorities. If other potential suppliers submit statements of capabilities during the 15-calendar day posting period, and meet the requirements set out in the ACAN, the department or agency must proceed to a full tendering process on either the government's electronic tendering service or through traditional means, in order to award the contract.
Electronic bidding – a method of procurement that promotes suppliers' access to, and transparency in, the procurement process and facilitates the Crown's receipt of best value, by using:
Traditional competitive – a method of procurement that involves giving public notice, using traditional bidding procedures and in a manner that is consistent with generally accepted trade practices, of a call for bids for a proposed contract.
In 2008, the total value of positive amendments (i.e., those that result in an increase in the contract value) was $4385.9 million. The total value of negative amendments (i.e., those that result in a decrease in the contract value) was $336.2 million. The total value of net amendments was $4049.7 million.
The above data do not include transactions using acquisition cards. Those cards are normally used for low dollar value purchases. In 2008, there were 2.2 million acquisition card transactions for a total value of $885.4 million.
The data do not include expenditures for travel, hotel accommodation, hospitality and petty cash.