ARCHIVED - 2000 Purchasing Activity Report

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Introduction

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:

• Stand the test of public scrutiny in matters of prudence, probity, facilitate access, encourage competition and reflect fairness in the spending of public funds;
• Ensure the pre-eminence of operational requirements;
• Support long-term industrial and regional development and other appropriate national objectives.
• Comply with the government's obligations under the North American Free Trade Agreement, the World Trade Organization -Agreement on Government Procurement, the Agreement on Internal Trade.

The Government is committed to working on strengthening and modernising government procurement. Procurement reform is guided by modern comptrollership and founded in Results for Canadians: A Management Framework for the Government of Canada. This framework sets a clear direction for renewing government management based on: citizen focus, values, results and responsible spending. Procurement reform supports the Government's Speech from the Throne commitments to have Government-on-Line by 2004 and to promote business practices that will build a dynamic economy.

The procurement reform initiative centres on:

• Strengthening the government's policy framework;
• Renewing our human resources in the procurement and materiel community; and
• Modernising our procurement practices and process.

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 federal government bidding opportunities should consult MERX at http://www.cebra.com/. Those who wish to find out more about how the Government of Canada buys should contact Contracts Canada at www.contractscanada.gc.ca.

Notes to 2000 Purchasing Activity Report

1. Objective

The objective of the annual Purchasing Activity Report and its preliminary version 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 2000. It is important to note that there is no statutory requirement for such a report. It complements information found on contract statistics on Contracts Canada web site found at 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 /aedb-bdve/home-accueil-eng.aspx.

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/index_e.html.

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 2000 inclusive.

2. Procurement Policy Framework

The main features of the Government of Canada's procurement policy framework in effect in 2000 that are relevant to the Preliminary 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:

EITHER

(A) giving public notice, using electronic bidding methodology, possibly supplemented by traditional bidding procedures, of a call for bids for a proposed contract or of an intention to award a contract to a pre-selected contractor (a directed contract advertised by an Advance Contract Award Notice -ACAN), in accordance with limited tendering reasons set out in international trade agreements, or in accordance with non-competitive tendering reasons set out in sections 506(11) and 506(12) of the Agreement on Internal Trade, or in accordance with non-competitive tendering reasons set out in section 6 (excluding section 6.1) of the Government Contracts Regulations (GCRs)

and where

1. in the case of a call for bids, the lowest bid or the bid that offered the best value, as set out in the evaluation criteria in the bid solicitation and as determined by the contracting authority, was accepted;
2. in the case of a call for bids where only one bid, compliant with mandatory criteria set out in the bid solicitation was received, fair value to the Crown, as determined by the contracting authority, was obtained; or
3. in the case of an ACAN, no valid indications of interest or valid challenges to the proposed award were received within the prescribed period of no less than 15 calendar days.

OR

(B) giving public notice, using traditional bidding procedures (such as a suppliers' list, etc.) and in a manner that is consistent with generally accepted trade practices, of a call for bids for a proposed contract,

and where

1. in the case of a call for bids, the lowest bid or the bid that offered best value, as set out in the evaluation criteria in the bid solicitation and determined by the contracting authority, was accepted, or
2. in the case that only one bid, compliant with the mandatory criteria set out in the bid solicitation was received, fair value to the Crown, as determined by the contracting authority, was obtained.

2.4 Section 6 of the Government Contracts Regulations specifies that a contracting authority may enter into a contract without soliciting bids where

3. Reporting Entities

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. The appropriate Minister, as defined in paragraph (a), (a.1) or (b) of the definition "appropriate Minister" in section 2 of the FAA, as follows:

B. A departmental corporation named in Schedule II to the FAA, or

C. The National Capital Commission (listed in Schedule III).

In accordance with subsection 41(2) of the Financial Administration Act, the Government Contracts Regulations do not apply to Canada Customs and Revenue Agency. However, the agency has voluntarily provided data on its purchasing activity in year 2000.

4. Exclusions under Government Contracts Regulations

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 from TB reporting requirements.

5. Definition of Terms

The Government's Contracting Policy includes a series of definitions that serve as the basis for the categories found in the report.

-notification through the open bidding methodology of the intent to award a directed contract.

-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:

-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.

6. Amendments

In 2000, the total value of positive amendments (i.e., those that result in an increase in the contract value) was $2,391.7 million. The total value of negative amendments (i.e., those that result in a decrease in the contract value) was $240.8 million. The total value of net amendments was $2,150.9 million.

7. Acquisition Cards

The above data do not include transactions using acquisition cards. Those cards are normally used only for low dollar value purchases. In 2000, there were an estimated 1.4 million acquisition card transactions for a total value of about $474.6 million.

8. Other Excluded Items

The data do not include expenditures for travel, hotel accommodation, hospitality and petty cash.