Canadian Procurement Law: A Guide to Public Tenders
30.04.24
By:
Justin Norris
The Canadian Procurement Law is a federal law that sets out the rules that public institutions must follow when purchasing goods and services.
In this blog post, we will summarize the key things you need to know about public tenders in Canada.
Tender Methods in Canadian Public Procurement:
Open Tender: The most common method. It is a tender open to all participants, and the contract is awarded to the company that submits the lowest bid.
Limited Tender: A tender where invitations are sent to a select number of pre-qualified companies, and the contract is awarded to the company that submits the most compliant bid.
Direct Contact: In limited circumstances such as emergencies or special conditions, a public institution may enter into a contract directly with a company without starting a tender process.
Contractor Obligations in Contracts:
Comply with Contract Terms: The contractor is obliged to fully and timely fulfill all the terms and conditions specified in the tender contract.
Provide Quality Products and Services: The contractor must provide products and services that meet the quality standards specified in the contract.
Take Safety Precautions: The contractor must take all necessary precautions to ensure the safety of workers and third parties in the work area.
Keep Financial Records: The contractor must maintain all financial records related to the project and provide them to the public institution on a regular basis.
Where Tender Spending Budgets are Transferred to Which Sectors:
The Canadian Procurement Law does not provide detailed information on where tender spending budgets are transferred to. However, the Public Services and Procurement Canada (https://www.canada.ca/en/public-services-procurement.html) provides general statistics on this matter. According to these statistics, in recent years, the infrastructure, construction and healthcare sectors have received the most tender spending.
Competent Authorities in Tenders:
There are two main authorities responsible for public tenders in Canada:
Public Services and Procurement Canada: Responsible for federal government purchases.
Provincial and Territorial Governments: Responsible for public tenders in their jurisdictions.
For More Information:
Public Services and Procurement Canada: https://www.canada.ca/en/public-services-procurement.html
Canadian Procurement Law: https://www.cfta-alec.ca/canadian-free-trade-agreement/
This blog post provides a general overview of the Canadian Procurement Law. For more information, please refer to the above resources.
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