5.1 Overview of the evaluation and selection of contractors

Effective date: 2018-12-06

1. This chapter contains information concerning the evaluation process, which includes both the evaluation of bids and the selection of a successful bidder. The chapter further addresses negotiations with the bidder(s) before contract award.
2. For more information on bid evaluation, consult the Basic Guide for Bid Evaluation Process (available on GCpedia - Acquisitions Program Policy Suite - Procurement Process [accessible only on the Government of Canada network]).
3. It is recommended that contracting officers also familiarize themselves with the Basic Guidelines for Bid Evaluation Process - Contractor Selection Methods (accessible only on the Government of Canada network).

5.5 Evaluation procedures

Effective date: 2016-06-09

1. The main purpose of bid evaluation is to determine the best responsive bid, in accordance with the evaluation and selection methodology specified in the solicitation document, among the bids submitted before the bid closing time on the date specified in the bid solicitation.
2. The responsive bid offering the best value to Canada may or may not necessarily be the one with the lowest price. In order to accurately determine best value, a logical systematic evaluation procedure covering all aspects of the evaluation process must be followed.
3. Before starting the actual technical and financial evaluation of bids, it is necessary to ensure that all the information required at bid closing is available and ready to be transmitted to the evaluators. It is the responsibility of Public Works and Government Services Canada (PWGSC) to determine whether the bids received are complete, as specified in the bid solicitation, before further detailed evaluation of the bids. This means, for example, verifying:
   1. that certifications or securities required at bid closing are included;
   2. that bids are properly signed;
   3. that the bidder is properly identified (particularly important in the case of joint ventures);
   4. acceptance of the terms and conditions of the bid solicitation and resulting contract, such as bid validity period;
   5. ability to meet a clearly specified critical delivery schedule;
   6. whether the bid is conditional (e.g. limitation of liability), or
   7. that all documents, required by the bid solicitation to determine technical responsiveness, have been submitted.
   Note: It is recommended that the contracting officer creates and uses a check list of all requirements, which can be used throughout the evaluation of each bid.
4. Evaluation of bids must be in accordance with the procedures stipulated in the bid solicitation. They must be checked for responsiveness to the contractual, technical and financial requirements of the bid solicitation. Fair, accurate and transparent evaluation of bids is an important aspect of procurement process. Generally, financial bids should not be sent to the technical evaluators until after completion of the technical evaluation.

5.5.5 Certifications, declarations and proofs

Effective date: 2024-05-31

1. Certifications, declarations and proofs are standalone documents that substantiate information submitted with an offer or arrangement. Standalone documents are independent from requirements for bid evaluation but they are mandatory to finalize the bid evaluation process. Personal references may also be included under this policy but only if their use will not change the substance of an offer or arrangement or introduce new information that could improve a score or ranking.
2. Mandatory certifications, declarations or proof documents may be requested at bid closing. However, under this policy offerors must not be required to provide these documents at bid closing unless, the documentation being requested is included in the Exceptions section below. Contracting officers must ensure that all solicitation documents identify which certifications, declarations and proofs are required. If these documents have not been provided at bid closing, PWGSC will notify the offeror that they are required to provide them within two business days following notification by PWGSC. (Note: this time requirement reflects PWGSC’s expectation that these documents ought to be readily available to an offeror.)
3. Once notified, any offeror that fails to provide the required document(s) within two business days will be informed by the Department that their offer or arrangement is non-responsive and that it will be given no further consideration.
4. The contracting authority must apply the ”two business days” time requirement to any clause that currently allows for the contracting authority to stipulate the time to provide a certification, declaration or proof.
5. The following exceptions are permitted:
   1. Integrity and Suspension Policy Clauses - The offeror must provide a list of names and when applicable, a completed Declaration Form in accordance with conditions defined in Ineligibility and Suspension Policy.
   2. Procurement Strategy for Indigenous Businesses (PSIB) - Bidders, offerors or suppliers must include with their bid, offer or arrangement certification that they meet the PSIB definition of an Indigenous Business. See 9.40 Procurement Strategy for Indigenous Business.
   3. Canadian Content Policy – The bidder, offeror or supplier must provide certification in accordance with conditions defined in the Canadian Content Policy (see 3.130 Canadian Content Policy.)
   4. Registry and Pre-qualification of Floating Plant – the bidder, offeror or supplier must provide certification with the bid as stated in Standard Acquisition Clause R2710T-GI06 General Instructions - Construction Services - Bid Security Requirements.
   5. Requests for Financial Capability documentation – Contracting officers in consultation with the Cost and Price Analysis Group determine what financial information will be required from a subset of bidders during the bid evaluation phase and the time frame for providing the information.
   6. Solicitations using Public Openings - the bidder, offeror or supplier must provide certifications, declarations and proofs with the bid as specified in the solicitation.

5.10 Confidentiality of bids

Effective date: 2015-02-25

1. The contracting officer must treat all information in a secure and confidential manner to ensure the integrity of the contracting process.
2. When referring bids to the client (or technical evaluators) during the evaluation process, the following cautionary note must be provided to the client:
   "Bid information must be divulged only to individuals authorized to participate in this contracting process. Information must not be divulged to, or discussed with, the private industry."
3. During the period from bid closing to contract award, (including the contract approval process), contracting officers receiving requests from suppliers for the names of bidders must not release this information. For more information, suppliers should contact the Access to Information and Privacy Office.
4. After contract award, the names of bidders and other information may be released in accordance with departmental policy. (See 7.30 Procurement reporting and posting of Award Notices).

5.15 Verifying compliance with security requirements

Effective date: 2022-05-02

1. Before contract award, the contracting officer must verify with the Contract Security Program (CSP) that the proposed contractor meets the security requirements of the bid solicitation. This verification can be done by contacting the CSP’s Client Service Centre. The request to the CSP for a security status should include the full legal name and address of the proposed bidder, the address of location of the work performance (if applicable), as well as the required security levels stipulated in the bid solicitation document. If the supplier has the appropriate security clearance, the contracting officer must sign the Security Requirements Check List (SRCL) at block 16 and include the fully signed SRCL as an annex in the resulting contract. In the case of call-ups against a standing offer or contracts against a supply arrangement, it is the responsibility of the technical authority to verify that the contractor meets the security requirements.
   Note: When security capabilities such as document safeguarding, IT (including cloud computing), Production and/or COMSEC are required, seek assurance of these specific security types from the CSP as they are contract-specific.
   Note: Before contract award, the contracting officer must also verify with the CSP’s International Industrial Security Directorate (IISD) (tpsgc.dgsssiprojetintl-dobissintlproject.pwgsc@tpsgc-pwgsc.gc.ca) that the proposed contractor meets Canada’s international security commitments for contracts with foreign-based suppliers or when the contracted work requires access to international organizations (e.g., NATO) or foreign classified information, assets or sites (see 4.30.25 Security and international contracts).
2. During the period of the contract, the client must ensure that all contractors or subcontractor personnel who will have access to any classified or protected information, assets or sensitive work sites, or to government systems, including information accessible in a cloud service provider portal, are identified as working under the contract and that their security status has been verified with the CSP. The contracting officer will assist in this process, as required.
3. When security clearances are mandatory, they must be obtained before the commencement of any work. However, it is recognized that there may be circumstances under which, for reasons of urgency, the contracting officer, client department’s Chief Security Officer (CSO) and technical/project authority can consult the CSP to obtain advice and guidance on the development of an acceptable risk mitigation strategy so work can commence before the security clearance process is completed.
4. If, at any time during the period of the contract, the contracting officer becomes aware that a subcontractor, whose security status has not been verified with the CSP, will require access to any classified or protected information, assets or sensitive work sites, the contracting officer must consult with the CSP to ensure the necessary subcontract SRCLs are submitted and as well verify that the subcontractor meets the security requirements.

5.16 Integrity compliance

Effective date: 2024-05-31

1. Before awarding a contract (including issuing a purchase order), issuing a standing offer (SO) or supply arrangement (SA), or publishing of a pre-qualified supplier list, contracting officers must first verify with the Registrar of Ineligibility and Suspension (the Registrar) that the offeror is not ineligible to be awarded a contract or suspended. Certain charges, convictions and other circumstances, as described in the Ineligibility and Suspension Policy will or may render the offeror ineligible to be awarded or suspended from being awarded a contract.
2. The integrity verification process with the Registrar is not required in the following circumstances:
   1. call-ups against standing offers;
   2. contracts against supply arrangements (SAs) (note: an integrity verification is typically not required when awarding a contract against an SA, however an integrity verification will be required when awarding a contract against an SA issued prior to April 4, 2016, where the latest Ineligibility and Suspension Policy Clauses have been incorporated by reference into the solicitation);
   3. task authorizations;
   4. contract amendments unless there is a change to the Ineligibility and Suspension Policy Clauses or members of the board of directors;
   5. purchases using acquisition cards;
   6. contracts where the transaction value is less than $10,000.00 (GST/HST included) (see the Policy for definition of transaction value); or
   7. any other contract or type of contract specified in Section 2 of the Policy or directive issued further to the Policy.
3. Verification process:
   1. Before awarding a contract (including issuing a purchase order with a transaction value of $10,000 or more, including GST/HST), issuing an SO or an SA, or publishing a pre-qualified supplier list, contracting officers must submit the information on the offeror to the Registrar using the Integrity Verification Services (IVS) (accessible only on the government of Canada network) portal.
   2. List of names:
      1. Contracting officers must submit to the Integrity Verification Services the list of names received from the offerors with their bid in accordance with Section 13 of the Ineligibility and Suspension Policy.
      2. When submitting an Integrity Verification request, contracting officers certify that the information provided to the Integrity Verification Services is as received from the offeror. 
      3. In the event that additional information is required to determine an offeror's status under the Policy, Integrity Verification Services will request this information from the contracting officer, who will then inform the offeror of their obligation to provide the list within a recommended 10 business days. Failure to provide this information within the timeframe stipulated by the contracting officer will render the bid, offer or arrangement non-responsive. See 5.5.5 Certifications, declarations and proofs.
   3. Verification responses:
      Two responses are possible, as described below. Contracting officers are to keep a copy of the confirmation email from Integrity Verification Services in the procurement file. This process and the estimated timelines can be delayed should additional information be required by IVS.
      1. "Integrity result – The offeror is not ineligible. (No match)": This response confirms that the contracting officer may award the contract, issue the standing offer or the supply arrangement, or publish the list of pre-qualified suppliers.
      2. "Ineligibility confirmed": This response indicates that the offeror has been determined to be ineligible or suspended as per the Ineligibility and Suspension Policy. The offeror is suspended or ineligible to be awarded a contract or issued a standing offer or supply arrangement, or to be included in a list of pre-qualified suppliers. In exceptional circumstances, the contracting officer may request a Public Interest Exception (PIE) to enter into a contract with an ineligible supplier.
   4. Where “Ineligibility confirmed” is received, contracting officers must consult with the Acquisitions Program by email at tpsgc.papolitiques-appolicy.pwgsc@tpsgc-pwgsc.gc.ca, and obtain the required approval as stipulated in Annex 6.4.1. Approval authorities and additional signing authorities in support of clients' programs only – other than for Canadian Commercial Corporation.
4. Verification Process for Amendments:
   1. Where a previous version of the Ineligibility and Suspension Policy Integrity are included in a contract, contracting officers must propose the latest general conditions, which include the most recent Ineligibility and Suspension Policy Clauses when amending a contract as per section 4.21 Ineligibility and Suspension Policy Clauses, subsection d. The verification process as outlined in subsection c. above must be followed if the contractor accepts the new Ineligibility and Suspension Clauses to be included in the contract amendments, and the existing contract contains Ineligibility and Suspension Clauses dated prior to July 2015.
   2. The verification process as outlined in subsection c. above must be followed for contract amendments where the file does not already contain a record of a previous verification or where the information required to be provided under Section 13 of the Ineligibility and Suspension Policy has changed.
5. If a contractor is found to be ineligible or is suspended while the contract is active, the Registrar will contact the contracting officer who requested the integrity verification for that particular contract. The contracting officer, with the assistance of the Acquisitions Program, will determine whether the contract can be terminated for default. If the contract is to be terminated for default, the Acquisitions Program will assist the contracting officer. The ineligible or suspended contractor may be required to enter into an Administrative Agreement with Public Works and Government Services Canada if the contract is not terminated.
6. For further details on Integrity, see the following sections:
   • 3.51 Office of Supplier Integrity and Compliance overview;
   • 4.21 Ineligibility and Suspension Policy Clauses;
   • 8.70.2 Compliance with the Ineligibility and Suspension Policy Clauses; and
   • 8.90 Assignment of contracts.

5.20 Use of subject matter experts/specialists

Effective date: 2024-07-19

1. Contracting officers should take advantage of the knowledge of specialists or subject matter experts. They are available to provide guidance in their areas of expertise, whenever it would be helpful and/or appropriate in making a recommendation or confirming a decision.
2. Subject matter experts/specialists include: legal services, Access to Information and Privacy (ATIP) officers, contract quality control officers, cost analysts, risk management advisors, auditors, market analysts, negotiation experts, policy authorities, green procurement specialists, ethics officers, human resources authorities, commodity team leaders, client engagement officers, experienced contracting officers, industry/association representatives, etc.

5.25 Use of fairness monitors

Effective date: 2021-06-16

1. When a fairness monitor has been engaged to support a procurement process, he/she will provide written reports to the Departmental Oversight Branch (DOB), in accordance with the statement of work included in the fairness monitor's contract, attesting to the fairness, openness, and transparency of the procurement process.
2. If a fairness monitor observes a situation that constitutes, or has the potential to create, fairness deficiencies, the fairness monitor will inform the project team of its concerns and seek a resolution. If a resolution cannot be reached, the fairness monitor will immediately advise DOB.
3. The fairness monitor will submit a final report to DOB, which includes among other things, the fairness monitor's overall attestation of assurance on the fairness, openness, and transparency of the monitored activity and any unresolved fairness deficiencies observed. This report will be made public after tabling with senior management.

5.30 Clarifications

Effective date: 2010-01-11

1. To be considered for contract award, a bid must, at closing date meet all mandatory requirements stipulated in the bid solicitation. Bidders are responsible to meet the criteria stipulated in the bid solicitation as well as request clarification before submitting a bid if they are not sure they understand a requirement. The instructions to bidders clearly provide that PWGSC may request clarification from bidders, but it is under no obligation to do so.
2. If PWGSC decides to request clarifications or additional supporting data from the bidders, the contracting officer must ensure that this process does not give any bidder an advantage over the others. In no event can this clarification alter the price quoted or any substantive element of a bid.
3. Only clarifications which do not change the substance or price of a bid may be requested and accepted. The request for clarifications and response must be in writing. Any response, which leads to a substantial change in the bid is considered bid repair and must not be considered in the bid evaluation. Pursuant to the Canadian International Trade Tribunal (CITT), a clarification is acceptable only if it is an explanation of some existing aspect of the bid that does not amount to a substantive revision or modification of the bid. Bidders cannot be allowed to repair their bid through a clarification process.
4. In conducting its evaluation of the bids, Canada may, but has no obligation to correct any error in the extended pricing of bids by using unit pricing and any error in quantities in bids to reflect the quantities stated in the bid solicitation. In the case of error in the extension of prices, the unit price will govern.
5. If an unusually low price is identified, the bidder must be given the opportunity to either confirm or withdraw its bid in writing. Once confirmed, the supplier must accept the price in any resulting contract. The contracting officer must not divulge the difference in price between that bid and the next lowest bid. In no event will the bidder be permitted to increase the price. In solicitations with bid security, this provision may not apply.
6. The contracting officer will specify in the request the number of days the bidders will have to comply with any request. Failure to comply with the request may result in the bid being declared non-responsive.

5.35 Evaluating the bids

Effective date: 2018-12-06

1. The client is responsible for the evaluation of the technical portion of the bids, and, where applicable, the management portion. PWGSC is responsible for the evaluation of the contractual terms and conditions and the financial portion of the bids. Bids must meet all the mandatory requirements and criteria set out in the bid solicitation. Bids that fail to meet a mandatory requirement (such as a bid bond or any information or document) or any other mandatory evaluation criteria (technical, financial or other) will be declared non-responsive.
2. For Complexity Levels 2 and 3, the procurement risk assessment may determine that a Formal Peer Review of the results of the bid evaluation is required. For Complexity Levels 4 and 5 inclusive, a review of the results of the bid evaluation is mandatory. For more information on the Formal Peer Review, see 5.45.1 Formal peer review of evaluation. In all other situations once the bid evaluation is completed, contracting officers are encouraged to obtain a review of the results of that evaluation prior to issuing the contract.
3. In some cases, third parties may be invited to assist in evaluating bids, for example, scholars and other experts. When third parties will be involved, bidders must be advised in the bid solicitation. In general, third parties participating in the evaluation, or in the bid preparation, must sign a non-disclosure agreement and a conflict of interest agreement before such participation.
4. Bids must be evaluated in accordance with the evaluation criteria established in the bid solicitation. Even though the onus is on bidders to submit clear and well-organized bids, bids must be reviewed with diligence and thoroughness to ensure that no essential information is missed. The evaluators must not use criteria or factors not included in the bid solicitation or derive conclusions from information contained in bids that may prove wrong. Whenever possible, the same evaluators should evaluate all bids. When evaluating bids, evaluators must consider all vital information provided in the bid, and must not base their evaluation on undisclosed criteria.
5. Documents pertaining to the evaluation of bids must be retained. Evaluators must provide the original or a copy of all evaluation notes and communications to the contracting officer for filing on the procurement file. All such information is subject to the Access to Information Act. For example, evaluators' worksheets must not be destroyed even if the information contained in the worksheets is recorded in other evaluation documents. Following a relevant Canadian International Trade Tribunal decision, it was found that evaluators' worksheets are an integral part of the evaluation process and constitute part of the complete record regarding the procurement and part of the written record of all communications substantially affecting the procurement within the meaning of the international trade agreements. Destroying the evaluators' worksheets is a breach of the international trade agreements. Although no similar provision exists in the Canadian Free Trade Agreement (CFTA), the maintenance of complete documentation is also essential under the CFTA to promote fair and open procurement procedures. Contracting officers can also refer to the Treasury Board Directive on Recordkeeping.

5.40 Technical evaluation of bids

Effective date: 2024-08-02

1. The client department is responsible for the technical evaluation of the bids.
2. Following the completion of the technical evaluation, the client department must provide a report to the contracting officer detailing the results of the evaluation, including details on all non-responsive bids and the reasons for declaring them non-responsive. Each person who participated in the technical evaluation as an evaluator must sign the report.
3. Complete documentation, including all notes, worksheets, etc. made during the processing or evaluation of the bids must be retained, for future reference, on the PWGSC procurement file.
4. PWGSC is accountable for the entire procurement process and must ensure that the evaluations are performed in a fair manner and in conformity with all the terms and conditions of the bid solicitation document. While contracting officers do not formally evaluate the technical bids, they must ensure that the technical evaluation is performed in accordance with the process set out in the solicitation document. This includes questioning, clarifying or challenging any scoring or remarks that are deemed unclear, in error or inappropriate at any stage of the evaluation process. The evaluation of bids must be performed with integrity in an open, fair and honest manner

5.40.1 Evaluation of technical mandatory criteria

Effective date: 2010-01-11

1. Mandatory criteria are assessed on a simple pass/fail basis. Bids that fail to meet any of the mandatory criteria will be considered non-responsive.
2. The reasons for declaring a bid non-responsive must be clearly documented by the contracting officer in the procurement file.

5.40.5 Evaluation of technical rated criteria

Effective date: 2010-01-11

1. Only bids that meet the mandatory criteria will be subject to point rating, as applicable. Rated criteria are used to assess various elements of the technical bid so that the relative merits of each bid can be determined. The maximum points that can be achieved for each rated criterion must be specified in the bid solicitation.
2. When point rating is used, bids may have to achieve a minimum number of points overall to be considered responsive, and often they must also achieve a minimum number of points for certain individual criteria. Bid solicitations must clearly identify any mandatory minimum thresholds.
3. Over the years, there have been numerous complaints to the CITT alleging that the scoring against individual criteria was unfair. In the majority of cases however, the CITT has said that it cannot undertake a re-weighting of the points assigned unless the treatment of the bid under review amounts to a denial of fair treatment. In the absence of evidence that the evaluation was not conducted in a fair manner, the CITT will generally defer to the judgment of the evaluators who are best qualified to assess the merits of the bids. The CITT will intervene however if it feels that the evaluators improperly applied the evaluation criteria and methodology set out in the bid solicitation.

5.45 Financial evaluation of bids

Effective date: 2010-01-11

1. PWGSC is responsible for the evaluation of the financial portion of the bids. PWGSC does not provide client departments with price information during the technical evaluation process to ensure its integrity. Pricing information should only be provided to the client following the completion of the technical evaluation.
2. Under the following circumstances, more than one PWGSC employee must be involved in the evaluation of the bid prices to ensure an appropriate level of checks and balances, and to ensure that, in terms of price, the bids are ranked properly, in accordance with the bid solicitation:
   1. for any competitive procurement requiring contract entry approval of the Minister, the Assistant Deputy Minister or Treasury Board; and
   2. for any procurement which is considered to be sensitive or high-risk.
3. Contracting officers should also consider having more than one PWGSC employee involved in the evaluation of the bid prices, under the following circumstances:
   1. when the evaluation involves extensive computation or is mathematically complex; and
   2. for standing offers (SO) and supply arrangements (SA) requiring the approval of the Assistant Deputy Minister.
4. All PWGSC employees involved in evaluating the bid prices must sign the financial evaluation report.

5.45.1 Formal peer review process

Effective date: 2014-09-25

1. The peer review is intended to provide an oversight and risk management role within the competitive process results. This review is to ensure that the evaluation and contractor selection were conducted in accordance with the solicitation, and to confirm no anomalies or potential issues exist which could impede the principles of fairness, openness and transparency of the procurement process.
2. For Complexity Level 2 and 3 procurements, the requirement for a peer review is determined by the results of the procurement risk assessment.
3. For Complexity Level 4 and 5 procurements, a peer review is mandatory.
4. Peer reviewers must initial and date the evaluation report to confirm that such a review has taken place.
5. The accountability of the procurement remains with the contracting officer responsible for the requirement; there is no transfer of responsibility.
6. The decision of who will conduct the peer review will be determined at the procurement strategy phase when seeking approval in accordance with the risk assessment tool or at the discretion of the approval authority.
7. Should issues arise during the peer review process, the contracting officer and the peer reviewer(s) should make every effort to resolve them. In the event that a resolution cannot be achieved, the matter will be escalated to one designated level above the contracting officer for resolution.
8. The time required to conduct a peer review will be determined between the contracting officer and the peer reviewer(s); however, such review should not exceed two business days.
9. Informal peer reviews may also take place at the discretion of the contracting officer or the applicable approval authority.

5.45.2 Provincial taxes

Effective date: 2011-10-04

Except as provided by law, departments and agencies are not required to pay any provincial sales tax (PST) payable to the province in which the taxable goods or services are delivered, except for reimbursement of actual costs which include PST (e.g. PST on actual travel and living expenses incurred during the performance of the contract). Federal departments are required to pay the Harmonized Sales Tax (HST). For further details, consult the relevant section of the Standard Acquisition and Clauses (SACC) Manual general conditions (e.g. section 11 of 2010A or section 13 of 2035).

5.45.5 Foreign taxes and Canadian customs duties

Effective date: 2010-01-11

1. Customs duties must be considered in the evaluation of bids when bids are received from both Canadian-based and foreign-based bidders, since foreign-based bidders exclude duties in their bids. When rates of duties or exemption status need to be verified, the contracting officer may:
   1. obtain from the client department the information on the rate of duty applicable to the goods being imported, and add the estimated amount of duties to the price quoted by the foreign-based bidder; or
   2. verify with the Canada Border Services Agency (CBSA) the application of customs duty to the goods being imported.

   The tariff and value administrator at the CBSA will provide a written ruling to any request for rate of duty, tariff classification, or customs value. Importers or their agents who wish a written ruling must send their request to the nearest CBSA office.

2. Contracting officers are responsible for verifying the application of excise taxes and the amount and specific rate(s) set out in bids. Contracting officers must evaluate bids exclusive of the Goods and Services Tax (GST) or the HST, as applicable. For the list of goods on which excise tax is payable, see Annex 4.5: Goods subject to excise tax.
3. Clients may be entitled to exemption from taxes or duties. They should, in such cases, refer to a certificate of exemption or remission or drawback Order in Council. Issues relating to such remissions should be resolved between the client department and CBSA.

5.45.10 Transportation costs

Effective date: 2020-05-28

This section is removed from the Supply Manual as it no longer reflects Canadian Government practices.

For reference purposes, section 5.45.10 is available in the Supply Manual Archive (accessible only on the Government of Canada network), Version 2019-3.

5.45.15 Bids in foreign currency

Effective date: 2017-08-17

Unless the bid solicitation specifically requires bids to be made in Canadian currency, bids that are made in a foreign currency must be converted to Canadian currency for evaluation. The Bank of Canada rate published by 16:30ET on the bid closing date, or on another date specified in the bid solicitation, must be applied as a conversion factor to the bids made in foreign currency.

5.45.20 Exchange rate fluctuation

Effective date: 2013-11-06

This section has been removed in Version 2013-7 of the Supply Manual to be incorporated within section 4.65 Exchange rate fluctuation risk mitigation.

5.50 Selecting the successful bidder

Effective date: 2010-01-11

The successful bidder must be selected in accordance with the methodology specified in the bid solicitation.

5.55 Rejection of bids/offers/arrangements

Effective date: 2011-06-29

5.55.1 Role of the contracting officer

Effective date: 2023-03-30

1. The contracting officer is not to evaluate bids/offers/arrangements received from a vendor if the vendor is subject to a VPCM relevant to the procurement. (Bids include bids for contracts under supply arrangements.)
2. A standing offer must be set aside for a vendor that is subject to a relevant VPCM.
3. A decision to reject a bid/offer/arrangement because of a VPCM can be made at any time up to the awarding of a contract or the issuance of a standing offer or a supply arrangement. VIM is to be checked for a VPCM at closing for competitive solicitations and prior to contact for sole sourcing. In addition, VIM is to be rechecked prior to the awarding of a contract or the issuance of a standing offer or a supply arrangement.
4. When accessing the VIM file on a bidder/offeror/supplier, the contracting officer will have a clear notice of any VPCM. The Electronic Procurement Solution (EPS) will not interfere with the awarding of a contract or the issuance of a standing offer or a supply arrangement to a bidder/offeror/supplier subject to a VPCM. Therefore, it is up to the contracting officer to verify whether the vendor is subject to a VPCM.

5.55.5 Authority to reject a bid/offer/arrangement

Effective date: 2012-10-25

The authority to reject a bid/offer/arrangement, under the applicable section entitled Rejection of Bid of the Standard Acquisition Clauses and Conditions Manual Standard Instructions 2003, 2004, 2006, 2007, and 2008, rests with the contracting officer responsible for evaluating the bids/offers/arrangements, except that in the case of bids/offers/arrangements being considered for rejection in accordance with 1.(c), 1.(d), 1.(f)(i), and 1.(f)(ii), the authority to reject a bid/offer/arrangement rests with the appropriate director general.

5.55.10 Notice to the bidder/offeror/supplier

Effective date: 2012-10-25

1. Notice of intent to reject a bid/offer/arrangement under the applicable sections mentioned in 5.55.5 Authority to reject a bid/offer/arrangement should be given by telephone, and followed by confirming facsimile or letter. Notice of intent is considered to have been received by the rejected bidder/offeror/supplier at the time of the telephone call. The person making the call should note on the file the date and time of the call, and the person spoken to.
2. The notice of intent must set out the facts and the reasons for the decision to reject the bid/offer/arrangement. However, when a bid/offer/arrangement is being rejected in accordance with 1.(a) or (b) of the applicable section of the SACC Manual standard instructions because of a VPCM that is in place, it is sufficient to reference that VPCM.

5.55.15 Review

Effective date: 2012-10-25

1. A bidder/offeror/supplier, except a bidder/offeror/supplier excluded in accordance with 1.(b) of the applicable section of the SACC Manual standard instructions, may request that the decision to reject the bid/offer/arrangement be reviewed by the Assistant Deputy Minister, Acquisitions Branch (ADM/AB). It is entirely in the ADM/AB's discretion whether the bid evaluation and contract award process will be held up in order to grant more time to review the decision.
2. A review by the ADM/AB will result in an investigation, and a decision. Such a decision can have an effect beyond the particular procurement from which the bidder/offeror/supplier has been rejected. When the decision has been made, the bidder/offeror/supplier must be informed of the results, in writing.

5.60 Financial capabilities of contractor

Effective date: 2010-01-11

5.60.1 Financial capability

Effective date: 2010-08-16

1. The bidder must have the financial capability to fulfill the requirement.
2. Treasury Board (TB) Policy states "firms considered qualified are those which have the technical, financial and managerial competence to discharge the contract. Contracting officers are responsible for verifying this information, prior to entering into a contract".
3. Contracting officers must consult with the Cost and Price Analysis Group in the Policy, Risk, Integrity and Strategic Management Sector, during the evaluation of bids/offers/arrangements, to determine what financial information may be required from the Bidder/Offeror/Supplier.
   1. When a financial opinion is required, the following Standard Acquisition Clauses and Conditions (SACC) clauses should be used, A9033T for bid solicitations, M9033T for request for standing offers (RFSO) and S0030T for request for supply arrangements (RFSAs).”
   2. Supply arrangement authorities should note that since the statement of work or requirement cannot be adequately defined in advance, only a preliminary review of the supplier's financial viability will be conducted for the sole purpose of pre-qualifying suppliers for supply arrangements. A complete review of the bidder's financial capability may be required for subsequent requirements issued under the supply arrangement, therefore, supply arrangement authorities must include clause A9033T in all bid solicitation documents. For more details on supply arrangements, see 4.10.25 Request for supply arrangements.
4. If the selection of the bidder is competitive and the contract is for commercially available goods or services, the risks of financial loss to Canada are minimized because of the ability to find alternate sourcing. However, under any other circumstance, re-sourcing can be costly both in terms of performance delays and monetary risk.
5. Assessing the financial capability of potential and existing suppliers is not normally required for:
   1. assistance contracts on behalf of Industry Canada (IC), (determination of a contractor's financial capability in these cases is the responsibility of IC);
   2. contracts with universities and colleges, Crown corporations, government departments and agencies;
   3. contracts for the services of individuals; and
   4. contracts for generally available commercial goods or services from bidders selected by competition.
6. A financial analysis of a potential supplier may be warranted at the time of sourcing.
7. A financial review of a supplier can be initiated at any stage of the contracting process when considered necessary by the contracting officer. The contracting officer should arrange for ongoing financial capability analysis by a cost analyst during contract performance, when necessary.
8. When PWGSC must deal with a financially weak supplier, the risk to Canada must be reduced as much as possible through contract financial security, based on recommendations by a cost analyst.
9. Request for Financial Reviews must be submitted by completing form PWGSC-TPSGC 603 (PDF, 192 KB) (accessible only on the Government of Canada network).

5.60.5 Bid security (financial)

Effective date: 2022-12-01

1. If bid security is obtained, it must be held until the terms of the security are fulfilled, including award of a contract and/or expiration of the bid validity period.
2. If a bidder submits a bid, which includes insufficient security, that is, less than the exact financial security stipulated, or none at all, the bid will be considered non-responsive.
3. Security deposits in the form of government guaranteed bonds with coupons are not acceptable unless all coupons that are not matured at the time the security deposit is provided are attached to the bonds.
4. Surety bonds provided by bidders must be examined by the contracting officer, with advice from Legal Services, as necessary, to ensure that they are correct, original, and legally enforceable in all respects; including the bidder's legal name and address, the date of the contract, the contract serial number, and the description of the "Obligee", which is "His Majesty the King in right of Canada". Surety bonds requiring correction are returned to the bidder and not to the surety company.
5. PWGSC will hold any bid bond, payment bond, performance bond, non-negotiable security deposit (government guaranteed bonds, bills of exchange, irrevocable standby letters of credit) until the terms of the security are fulfilled. For detailed instructions on the safekeeping of these instruments, see Annex 5.2: Handling, custody and safekeeping of financial security/handling of bills of exchange.
6. The contracting officer must request written instructions from the bidder concerning the action to be taken with respect to any coupons attached to the bonds that will mature while the bond is pledged as security, and the instructions must be forwarded to the Financial Operations Sector.
7. The contracting officer must examine the letters of credit submitted by bidders and obtain advice from Legal Services, as necessary, to ensure that each letter is correct in all respects, including:
   1. the face amount that may be drawn against it;
   2. its expiry date;
   3. provision for sight payment to the Receiver General for Canada by way of the financial institution's draft against presentation of a written demand for payment signed by the authorized departmental representative, and identified in the letter of credit by their office;
   4. provision that more than one written demand for payment may be presented subject to the sum of those demands, not exceeding the face amount of the letter of credit;
   5. provision that it is subject to the International Chamber of Commerce (ICC) Uniform Customs and Practice for Documentary Credits, 2007 Revision, ICC Publication No. 600;
   6. clear specification that it is irrevocable or deemed to be irrevocable, pursuant to the ICC Uniform Customs and Practice for Documentary Credits, 2007 Revision, ICC Publication No. 600;
   7. issuance or confirmation, in either official language, by a financial institution, which is a member of the Canadian Payments Association (Payments Canada) and must be on the letterhead of the Issuer or Confirmer. The format is left to the discretion of the Issuer or Confirmer.

5.60.10 Business credit services

Effective date: 2018-06-21

1. Business credit services companies provide both general credit ratings and comprehensive credit reports on individual firms. Their comprehensive reports generally include: simplified financial statements; details of maximum credit obtained from the firm; promptness of payments made; banking information; firm's history and some information into the firm's operations.
2. Contracting officers are not to contact a business credit services company directly. They must send all requirements for business credit services to the Price Support Directorate (PSD).
3. Business credit services reports are considered commercially confidential. The information is not to be disclosed outside the government, and is only disclosed within the government on a "need to know" basis.
4. Copies of these reports are available for use only within PWGSC. The reports are retained by PSD.

5.60.15 Statement of cost accounting practices

Effective date: 2018-06-21

This section is removed from the Supply Manual as it no longer reflects Canadian Government practices.

For reference purposes, section 5.60.15 is available in the Supply Manual Archive (accessible only on the Government of Canada network), Version 2017-5.

5.65 Identical low bids: best value

Effective date: 2022-12-01

1. If identical low bids are received the contract should be awarded on the basis of best value. The factors below should be used, subject to directives on national policies and objectives that may be issued from time to time. These criteria may be weighted as considered appropriate by the contracting officer:
   1. a bidder with an overall satisfactory performance record is given preference over a bidder known to have a less satisfactory performance record;
   2. a bidder in a position to provide adequate after-sales service, with a good record in this regard, will be given preference over a bidder who is less able to provide adequate service or who has a poor record;
   3. when delivery is an important factor, the bidder offering the best delivery date should be given preference;
   4. when there are several items included in the bid and only some items are priced identically, the bid offering the greatest dollar value should be given preference; and
   5. when there are several items included in the bid and one or more bidders bid lower on one or more of the items, the lowest bidder with the greatest dollar value should be given preference both for the items on which it bid equal prices and for the items on which it bid lower.
2. If there are two (or more) identical bids, and provided that the bid selected would still be considered the most advantageous to Canada, preference should be given to the bidder who assumes all or part of the exchange rate adjustment risk over a bidder who does not assume any of this risk. Furthermore, preference should be given to the bidder who assumes all of the exchange rate adjustment risk over a bidder who assumes only part of this risk.
3. If none of the above applies, a method of tie breaking that is mutually acceptable to Canada and the bidders with identical bids can be used. As an example, a simple coin toss could be agreed upon. The mutually agreed solution should involve legal advice.

5.70 One responsive bid

Effective date: 2024-07-19

1. One Responsive Bid Greater than $7,500,000
   1. When only one responsive bid is received in response to a competitive bid solicitation, to satisfy that Canada is obtaining fair value, the contracting officer must contact a cost analyst to determine if further analysis is warranted as specified by the mandatory conditions set out in the Directive on the Use of Cost and Price Analysis Services (accessible only on the Government of Canada network) (PDF). Once the contracting officer has determined that the bid represents fair value to Canada, the contract may be awarded using competitive authorities to the single responsive bidder.
   2. If the contracting officer is not satisfied that the bid represents fair value, the contracting officer may consider negotiating or cancelling and reissuing the bid solicitation.
2. One Responsive Bid Less than or Equal to $7,500,000
   1. When only one responsive bid is received in response to a competitive bid solicitation, to satisfy that Canada is obtaining fair value, the contracting officer should consider using the services of a cost analyst to determine if further analysis is required (refer to the Guideline on the Use of Cost and Price Analysis Services [accessible only on the Government of Canada network](PDF)). Once the contracting officer has determined that the bid represents fair value to Canada the contract may be awarded using competitive authorities to the single responsive bidder.
   2. If the contracting officer is not satisfied that the bid represents fair value, the contracting officer may consider negotiating or cancelling and reissuing the bid solicitation.

3. One Responsive Bid from Foreign Contractor

   When only one responsive bid is received in response to a competitive solicitation, and that bid is from a supplier in a North Atlantic Treaty Organization (NATO) allied country, or a significant portion is being proposed to be subcontracted to a supplier in a NATO-allied country, to satisfy that Canada is obtaining fair value, the contracting officer should consider using the services of the foreign supplier's country's government to conduct an assessment of the fairness and reasonableness of the bid. This service can be called up by submitting a request through the Price Support Directorate (PSD). More information on this service is provided at 9.56 Price certifications and audits of foreign contractors.

5.75 No responsive bids

Effective date: 2010-01-11

When no responsive bid is received as a result of a competitive bid solicitation, the bid solicitation must be cancelled. For more information on reissuing a solicitation, see 4.100 Cancelling and reissuing a solicitation.

5.80 Bid rigging/collusion/fraud

Effective date: 2010-01-11

The contracting officer must notify Legal Services and his or her immediate director whenever there is an indication of possible bid-rigging activities, collusion or fraud. When it is considered necessary, Legal Services will assist in subsequent discussions with Competition Bureau Canada, a federal independent law enforcement agency responsible for the administration and enforcement of the Competition Act. Bid rigging is addressed in section 47 of the Act.

The following are examples of possible bid-rigging activities:

1. bid rates/prices are much higher than published price lists, engineering cost estimates, or previous bid rates/prices by the same suppliers, for no apparent reason;
2. the successful bidder subcontracts work to suppliers who submit higher bids on the same project;
3. bidders use identical wording to describe non-standard items, or submit identical bids for non-standard items;
4. there are indications of unusual communications among suppliers, before submitting the bids with regards to bid prices, or allocation of clients, or references to "standard industry prices", "industry self-regulation", etc.;
5. the same supplier wins bids for specific clients, or in specific geographic locations, or for specific sizes or types of work, and loses most other bids on a regular basis; or
6. a recognizable pattern of systematic or random low bid rotation exists.

5.85 Negotiations

Effective date: 2024-07-19

Acquisition Program contracting officers have access to negotiation expertise and support at Negotiation Services Hub - PSPC / AP - Home / Accueil (accessible only on the Government of Canada network).

1. When two or more responsive bids are received in response to a competitive bid solicitation and if no responsive bid represents fair value, contracting officers should examine the solicitation to determine possible causes. Subsequently, the contracting officer may consider negotiating with all responsive bidders or cancelling and reissuing the bid solicitation.
2. When negotiating with more than one firm, care should be taken that all are treated fairly and impartially. The negotiations should not become an auction of the contract, as firms progressively improve their bids in the light of information about the position of other firms. The confidentiality of each firm's negotiating position is to be assured.
3. The contracting officer must conduct all negotiations. If it is of a technical nature, the contracting officer and the client should conduct the negotiations. A negotiation report must be placed on the procurement file.
4. For procurements subject to the trade agreements contracting officers must conduct negotiations in accordance with the conditions of these agreements. For example, see Article 19.11: Negotiation of the Canada-European Union Comprehensive Economic and Trade Agreement or Article XII: Negotiation of the World Trade Organization Agreement on Government Procurement, or the 'Negotiation' provision of the Canadian Free Trade Agreement. Canada's other free trade agreements have similar rules to the WTO-AGP.
5. For procurements not subject to trade agreements,

   1. when a bid solicitation was used, negotiations may be entered into:

      1. before the completion of bid evaluation, provided that they are held with all bidders that submitted responsive bids; or
      2. after the bid evaluation, with only one bidder, provided that the bidder submitted the only responsive bid. Or, the bidder was selected after evaluating more than one responsive bid, but it can be demonstrated that if the negotiations had been held with all of the bidders that submitted responsive bids, there would have been no change in the bidder selected.

      The ability to prove that the same bidder will be selected, regardless of whether negotiations are conducted with all responsive bidders, presupposes that the requirement (for example, technical specifications) will not change during negotiations and, therefore, that other bidders given the same opportunity could not submit different or better offers;

   2. when an Invitation to Tender (ITT) was used and there is more than one responsive bid, but neither the lowest bid nor the other bids represent fair value, the contracting officer must have determined, before considering entering into negotiations, that it would not be more effective to cancel the solicitation and meet the requirement using another method of supply. When urgency is a major factor, the results of the original ITT might be capable of being used as the basis for entering into negotiations with bidders; and

   3. when a Request For Quotation was used, negotiations should be avoided.

5.90 Extending the bid validity period

Effective date: 2010-01-11

1. Bids will remain open for acceptance for a period of 60 days (30 days for construction), from the closing date of the bid solicitation, unless otherwise indicated in the bid solicitation (see Standard Acquisition Clauses and Conditions Manual [SACC], Standard Instructions 2003, 2006, and 2008). Contracting officers must carefully assess the potential for extended bid evaluation periods and indicate in the bid solicitation the modified period for bid acceptance. Contracting officers must also carefully monitor events during the bid evaluation period and contract approval process in order to award the contract before the bid acceptance period has expired. Expiry of bid acceptance periods before contract award should thus become an exceptional circumstance.
2. If the bid acceptance period has expired, and the contract has not been awarded, the bid solicitation must be reissued.
3. Any contract awarded to a bidder after the bid expiry date is considered a sole-source contract, and must be justified accordingly.
4. If the evaluation is incomplete and is unlikely to be completed within a reasonable period of time, and the bid acceptance period will expire before the evaluation is complete, the process should be halted and an assessment made to identify the cause of the delay. Any necessary corrections to the solicitation or evaluation methodology may then be made and the bid solicitation reissued.
5. As stated in the standard instructions, Canada may seek an extension of the bid validity period from all responsive bidders in writing within a minimum of three (3) days before the end of the bid validity period. If all responsive bidders accept the extension, Canada will continue with the evaluation of the bids. If all responsive bidders do not accept the extension, Canada will, at its sole discretion, either continue with the evaluation of the bids of those who have accepted the extension or cancel the solicitation.
6. Where a bidder does not agree to the extension and it is clear that this particular bidder has no chance of being recommended for award, then it may be appropriate to exercise Canada's right to proceed with the evaluation of only those bids submitted by the bidders that have agreed to an extension. Legal Services may be consulted in instances where a bidder does not agree to the extension, particularly in the case of procurements subject to the trade agreements.

5.95 Evaluating joint venture bids

Effective date: 2010-01-11

1. Joint ventures may respond to bid solicitations in accordance with the applicable conditions contained in the solicitation. The relevant section of standard instructions 2003, 2006 and 2008 of the SACC Manual permits joint venture bids and provide further details.
2. If a contract is awarded to a joint venture, all members of the joint venture will be severally liable for the performance of any resulting contract. (See standard instructions referenced above.)
3. If a financial capability assessment is done, then all members of the joint venture will be assessed.

5.100 Special program considerations

Effective date: 2020-10-21

In the evaluation of bids, consideration must, as applicable, be given to various programs such as Canadian content, green procurement, accessible procurement and the Federal Contractors Program for employment equity. Employment equity requirements are described in Annex 5.1: Federal Contractors Program for employment equity.

5.105 Evaluation report

Effective date: 2010-01-11

1. An evaluation report must be prepared outlining in detail the review of the bids, including any clarifications requested and how the final decision was taken to rank and select the bidders.
2. The evaluation report should include the evaluation criteria, the rationale of mandatory and point-rating for each criterion, as well as the names and contact information of all evaluators.
3. All persons involved in evaluating the bids must sign the evaluation report.
4. All notes taken during the evaluation must be kept in their original form and retained on the procurement file for audit purposes.

Some sectors/regions have developed checklists to assist contracting officers in the tabulation of bids. They should be used where available.

5.110 Communications before contract award

Effective date: 2013-06-27

1. Before contract award, contracting officers must advise suppliers that, if they are non compliant to the requirements of the Federal Contractors Program for employment equity, they will not be awarded a contract except in limited circumstances. See Annex 5.1: Federal Contractors Program for employment equity for specific exemptions on ship construction and refit.
2. Particular care is required where bid validity period may require extension. (See 5.90 Extending the bid validity period.)
   Note: No information about other bids may be released. Disclosure of information after contract award is covered in 7.45 Disclosure of information.

5.110.1 Early notification for ship construction and refit

Effective date: 2010-01-11

1. For new ship construction and ship refit contracts awarded by Public Works and Government Services Canada headquarters, contracting officers will notify bidders whether their bid is among the two most favorable and responsive when:
   1. there are more than two responsive bidders;
   2. a lengthy approval process is anticipated (generally for contracts requiring approval above the director general level); and,
   3. none of the following circumstances apply:
      1. all bids received are extremely close; or
      2. the manager feels that notifying bidders of bid status would not be in the best interests of Canada.
2. For shipbuilding or ship refit contracts that do not fall within the normal criteria, contracting officers should consult with the Senior Director, Marine Systems Directorate (SD/MSD), Defence and Major Projects Sector.
3. Early notification before contract award can only be made after the SD/MSD has recommended the "Contract Request" form PWGSC-TPSGC 1151-2 (PDF, 297) (accessible only on the Government of Canada network).
4. Bidders will be advised of the circumstances under which notification of their status may be withheld.
5. Bidders whose bids are clearly not the two most favourable responsive bids will be permitted to withdraw their bids upon written application to the contracting officer.

Annexes

Consult the list of annexes below related to Chapter 5 - Evaluation and selecting the contractor.

• 5.1 - Annex: Federal Contractors Program for employment equity
• 5.2 - Annex: Handling, custody and safekeeping of financial security/handling of bills of exchange