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Supply Manual glossary

Learn about procurement terms used in the Supply Manual. Select a letter to go to the list of terms starting with this letter.


A

Acceptance

French: Acceptation

  1. A deliberate and intentional agreement or consent to accept goods and services rated as acceptable.
  2. Receipt by the consignee for a shipment, thus terminating the common carrier liability subject to claim for shortages or damages if such exist.

Last updated: 2010-01-11

Account

French: Compte

  1. A formal record of a particular type of transaction such as an asset, liability, proprietorship, revenue or expense, expressed in money or other unit of measurement and kept in a ledger.
  2. The bookkeeping records of any organization, including journals, ledgers, vouchers and other supporting papers.
  3. Defence Production Act. Means the Defence Production Loan Account. (See 9.25.1)
  4. Canadian Institute of Chartered Accountants (CICA). Collective term for the whole set of financial statements of an organization.
  5. Records of the cost to the contractor of the work performed under a Public Works and Government Services Canada contract and of all expenditures and commitments made by the contractor in connection with the contract and invoices, receipts and vouchers relating to it.

Last updated: 2010-01-11

Accountable advance

French: Avance à justifier

  1. Funds provided to a contractor to purchase spare parts, which are not an item of supply in the supply system, and that will be used in the repair and overhaul of government equipment.
  2. Advance funds provided for a specific purpose, and chargeable to the appropriation for the service in respect of why the advance was made.
  3. Accountable Advance Regulations. A sum of money advanced from and temporarily charged to an appropriation; for example, a revolving fund, working capital advance, special account.

Last updated: 2010-01-11

Acquisition card

French: Carte d'achat

A charge card issued under a contract between a card issuer and Canada for the procurement and payment of goods and services for authorized official government business.

Last updated: 2016-04-04

Adjustment

French: Rajustement

  1. The amount of variation permitted by an adjustment clause in the contract, which generally permits a change upward or downward in the price or obligations, in case certain events transpire.
  2. Refer to economic price adjustment.

Last updated: 2010-01-11

Administrative agreement

French: Entente administrative

A negotiated agreement between a supplier and PWGSC pursuant to the Ineligibility and Suspension Policy.

Last updated: 2016-04-04

Affiliate

French: Affilié

(For purposes of the Ineligibility and Suspension Policy.)

One person is an affiliate of another person if:

  1. one person controls or exercises significant influence over the other person;
  2. a third person controls or exercises significant influence over both persons;
  3. both persons are under common control or under common significant influence; or
  4. one third person controls or exercises significant influence over one person, another third person controls or exercises significant influence over the other person, and both third persons are affiliates.

In addition:

  1. when two or more corporations amalgamate or merge, each such corporation and any new corporation will be deemed to be "affiliates" with each other; and
  2. any predecessors are also deemed to have been affiliated with each other where they would have been affiliated with each other immediately before the amalgamation or merger if:
    i. the new corporation had existed immediately before that time; and
    ii. the persons who were the shareholders of the new corporation immediately after that time had been the shareholders of the new corporation immediately before that time.

Last updated: 2024-05-31

Advance Contract Award Notice (ACAN)

French: Préavis d'adjudication de contrat (PAC)

A notice posted on the Government Electronic Tendering Service (GETS) advising suppliers in advance that a contract will be awarded to a particular supplier and to invite them to submit a statement of capabilities if they think that they meet the requirements set out in the ACAN.

Last updated: 2013-06-01

Advance payment

French: Paiement anticipé

A payment made in advance, by or on behalf of Canada, under the contract, and before the good is delivered or the service rendered.

Last updated: 2010-01-11

After-imposed duties

French: Droits imposés ultérieurement

All duties that the contractor has to pay that were not applicable on the contract date.

Last updated: 2010-01-11

After-imposed taxes

French: Taxes imposées ultérieurement

All applicable Goods and Services Tax/Harmonized Sales Tax exempted or excluded on the reference date but for which exemption was later removed or reduced such that the contractor is required to pay or bear additional taxes as a result of legislative, judicial or administrative action, taking effect after the reference date. This also includes increases announced after the reference date affecting the rate of tax, whether specific or percentage.

Last updated: 2010-01-11

After-relieved duties

French: Droits dégrevés ultérieurement

All duties that were applicable on the contract date but were no longer applicable at the time of delivery.

Last updated: 2010-01-11

After-relieved taxes

French: Taxes dégrevées ultérieurement

All applicable Goods and Services Tax/Harmonized Sales Tax that would have been payable on the transaction or property covered by contract, but which the contractor is not required to pay or bear, or for which the contractor obtains a refund or drawback, as a result of legislative, judicial or administrative action taking effect after the reference date.

Last updated: 2010-01-11

Agency

French: Agence

A relationship between two persons, by agreement or otherwise, where one (the agent) may act on behalf of the other (the principal) and bind the principal by words and actions.

Last updated: 2010-01-11

Agent

French: Agent

Person who acts on behalf of another person (the principal) in dealings with third parties.

Last updated: 2010-01-11

Agreement

French: Accord

A consensus of two or more persons in respect of anything done or to be done. Although used as synonymous with “contract”, agreement may have a broader meaning.

Last updated: 2010-01-11

Agreement on Internal Trade (AIT)

French: Accord sur le commerce intérieur (ACI)

An intergovernmental trade agreement signed by Canadian First Ministers that came into force in 1995. The AIT was replaced by the CFTA on July 1, 2017.

Last updated: 2018-12-06

Agreement to Implement Employment Equity

French: Accord pour la mise en oeuvre de l'équité en matière d'emploi

Contractors who bid on an initial goods and services contract, a standing offer, or a supply arrangement estimated at $1 million or more (including applicable taxes) with the Government of Canada must first certify their commitment to implement employment equity by signing the Agreement to Implement Employment Equity prior to contract award. The Agreement to Implement Employment Equity is administered by Employment and Social Development Canada – Labour Program.

Last updated: 2014-06-26

Alternative pricing strategies

French: Autres principes d’établissement des prix

Method of buying goods and services that is not conventional because the price does not rely on the cost to the contractor of fulfilling the statement of requirements.

Last updated: 2023-04-20

Amendment

French: Modification

An agreed addition to, deletion from, correction or modification of a contract.

Last updated: 2010-01-11

Appropriate minister

French: Ministre compétent

  1. With respect to a department named in Schedule I of the Financial Administration Act (FAA) the minister presiding over the department.
  2. With respect to a division or branch of the public service of Canada set out in column I of Schedule I.1 of the FAA, the minister set out in column II of that Schedule.
  3. With respect to a commission under the Inquiries Act, the minister designated by order of the Governor in Council.
  4. With respect to the Senate, the Speaker; with respect to the House of Commons, the Board of Internal Economy, and with respect to the Library of Parliament, the Speakers of the Senate and the House of Commons.
  5. With respect to a departmental corporation, the minister designated by order of the Governor in Council.
  6. With respect to a Crown corporation, the appropriate minister as defined in subsection 83(1) of the FAA.

Last updated: 2010-01-11

Architectural and engineering service contract

French: Marché de services d'architecture et de génie

A contract for the provision of services to provide a range of investigation and recommendation reports, planning, design, preparation, or supervision of the construction, repair, renovation or restoration of a work and includes contract administration services, for real property projects.

Last updated: 2017-05-12

Assets

French: Actif

Any owned physical object (tangible) or right (intangible) having economic value to its owner. See production assets.

Last updated: 2010-01-11

Assignment

French: Cession

  1. A transfer of a right from either party to the other, as mutually agreed upon.
  2. Lease. In this context, the entire unexpired residue of the lease is transferred.
  3. For the benefit of creditors. Regulated by the Bankruptcy and Insolvency Act, it is an assignment made in favor of the trustee in bankruptcy who takes it in trust for the general body of creditors of the insolvent assignor for realization and distribution in accordance with the statute.
  4. Book debts. Right to collect and receive all accounts receivable, present and future, of the borrower. This right is exercised by the lender, which signifies to the debtors of the borrower that the lender requires them to pay the outstanding balance on their account.

Last updated: 2010-01-11

Assignment of contract

French: Cession d'un contrat

The transfer by the contractor of responsibility for performance of all or part of the contract to a third party.

Last updated: 2010-01-11

Associated government

French: Gouvernement associé

Government of United Kingdom, any other government of the Commonwealth of Nations, the government of a country that is a member of the North Atlantic Treaty Organization (NATO) or the government of any other country designated by the Governor in Council, as being a country in defence of Canada.

Last updated: 2010-01-11

Audit

French: Vérification

  1. General. An examination, full scrutiny and verification of accounting records, usually by a third person.
  2. An examination of all elements of actual costs incurred by the contractor and the determination of actual profit realized. See discretionary audit.

Last updated: 2010-01-11

Authority

French: Pouvoir

  1. The right to perform certain acts, or prescribe rules governing the conduct of others.
  2. Generally, under balanced schemes of management, administrative authority represents the activation of corporate policy and is coupled with responsibility and accountability.
  3. A person commonly regarded as possessing an extensive knowledge in any given field.

Last updated: 2010-01-11

Automated Vendor Rotation System (AVRS)

French: Système automatisé de rotation des fournisseurs (SARF)

A system that maintains a record of bid opportunities for the suppliers from each source list. AVRS records are only maintained on regional type satellites.

Last updated: 2010-01-11

Award

French: Attribution

The notification to a bidder or tenderer of acceptance of a bid or tender, which brings a contract into existence.

Last updated: 2010-01-11

B

Bankruptcy

French: Faillite

  1. A condition where an insolvent company or person either voluntarily institutes bankruptcy proceedings by applying to have a licensed trustee in bankruptcy appointed or where the company's or person's creditors are successful in petitioning the court to issue a receiving order, the effect of which is to authorize transfer of all assets of the bankrupt debtor to a licensed trustee in bankruptcy for realization or distribution to the creditors.
  2. The state or condition of one who is bankrupt, whereby the property of a person or company, being legally declared unable to meet debts, is vested in an official trustee for distribution among creditors.

Last updated: 2010-01-11

Basic procurement

French: Approvisionnement de base

A basic procurement has the characteristics of clarity and completeness. The requirement is known and identifiable, and evaluation methods are simple. The methods for soliciting bids and contracting are pre-determined and set out. There is little need for analysis or speculation. There is an absence of change with the procurement process and control is within the department's domain of authority. There may be tools and instruments available that support the character of Basic. There is usually a low level of risk.

Last updated: 2011-10-04

Best value

French: Meilleur rapport qualité-prix

The combination of price, technical merit, and quality, as determined by the contracting authority before the solicitation and set out in the evaluation criteria, and which forms the basis of evaluation and negotiation between buyers and sellers to arrive at an acceptable basis for a purchase and sale.

Last updated: 2010-01-11

Bid

French: Soumission

An offer to provide services or supply goods as a result of a solicitation.

Last updated: 2010-01-11

Bid bond

French: Cautionnement de soumission

  1. A bond given to guarantee entry into a contract. This bond is given to indemnify Canada against increased costs if the bidder does not carry out the specified undertaking to enter into a contract. A bond given by a person to guarantee entry into a contract if the contract is awarded to that person.
  2. See security deposit, government guaranteed bond and surety bond.

Last updated: 2010-01-11

Bid security

French: Garantie de soumission

A bid bond or a security deposit given by a person to Canada to guarantee entry into a contract if the contract is awarded to that person.

Last updated: 2010-01-11

Bid solicitation

French: Demande de soumissions

An invitation, verbal or written, to suppliers to submit a bid, quotation or offer.

Last updated: 2010-01-11

Bidder

French: Soumissionnaire

Person or entity (or, in the case of a joint venture, the persons or entities) submitting a bid to perform a contract for goods, services or both. It does not include the parent, subsidiaries or other affiliates of the bidder, or its subcontractors.

Last updated: 2009-12-15

Bidders' conference

French: Conférence des soumissionnaires

A meeting chaired by Public Works and Government Services Canada to discuss with potential bidders, technical, operational and performance specifications, and/or the full extent of financial, security and other contractual obligations related to a solicitation.

Last updated: 2010-01-11

Bill of exchange

French: Lettre de change

This includes certified cheques, bank drafts and money orders, and are defined in the Bills of Exchange Act as "an unconditional order in writing, addressed by one person to another, signed by the person presenting it, requiring the person to whom it is addressed to pay, on demand or at a fixed or determinable future time, a sum of money to or to the order of a specified person or to the bearer”. (2010-01-11)

Bill of sale

French: Contrat de vente

An instrument in writing under which the title to personal chattel is transferred. A mere receipt for payment is not a bill of sale. The instrument must actually signify a transfer of title of the goods to the buyer.

Last updated: 2010-01-11

Blanket order case

French: Dossier de commandes - cadres

Supply arrangement that is negotiated with the United States Government under the auspices of Foreign Military Sales (FMS). It allows clients to submit detailed requirements directly to the identified U.S. military organization. This arrangement, which is similar in nature to the standing offer method of procurement, is normally utilized when there is no definite listing of items or of quantities required. This category of FMS cases (contracts) does not necessitate the purchase of equity. See 9.20.

Last updated: 2010-01-11

C

Call-up against a standing offer

French: Commande subséquente à une offre à commandes

An order issued under the authority of a duly authorized user against a particular standing offer. Communication of a call-up against a standing offer to the offeror constitutes acceptance of the standing offer to the extent of the goods, services, or both, being ordered and causes a contract to come into effect. The parties to the contract that comes into effect when a call-up against a standing offer is made are Canada, as represented by the Minister of Public Works and Government Services and the offeror.

Last updated: 2010-01-11

Canadian General Standards Board (CGSB)

French: Office des normes générales du Canada (ONGC)

A part of Public Works and Government Services Canada accredited by the Standards Council of Canada as a standard development organization and an ISO 9000 registrar. CGSB is mandated to provide a range of standardization and conformity assessment services in support of government procurement and other government requirements, such as:

  1. development of standards, specifications, manuals and guides;
  2. listings of prequalified products and services; and
  3. Quality Systems Division.

Last updated: 2010-01-11

Canadian goods

French: Marchandises canadiennes

  1. For the purposes of the Canadian Content Policy. Generally, with the exception of goods covered by the International Trade Agreements, Canadian goods are those wholly manufactured or that originate in Canada or they are products containing imported components that have undergone sufficient change in Canada to be considered Canadian.
  2. For the purposes of Taxes and Duties. goods that are the growth, produce or manufacture of Canada or that are of foreign origin but are duty and tax paid and have thus been entered for consumption into Canada.
  3. Addition to Canadian Goods Abroad. Goods that are exported from Canada for the purpose of being incorporated with foreign articles abroad.
  4. Processing of Canadian Goods Abroad. This refers to goods that are exported for a phase of production, which cannot be completed in Canada.

Last updated: 2010-01-11

Canadian industry

French: Industrie canadienne

All commercial enterprises resident and operating in Canada and incorporated, registered, or recognized as such, under federal or provincial legislation and that carry on activities in Canada. This includes industrial research institutes jointly operated by groups of such commercial enterprises.

Last updated: 2010-01-11

Canadian International Trade Tribunal (CITT)

French: Tribunal canadien du commerce extérieur (TCCE)

An administrative tribunal operating within Canada's trade remedies system. It is an independent quasi-judicial body that carries out its statutory responsibilities in an autonomous and impartial manner and reports to Parliament through the Minister of Finance.

Last updated: 2010-01-11

Canadian services

French: Services canadiens

Services provided by Canadian-based personnel.

Last updated: 2010-01-11

Capital cost allowance

French: Déduction pour amortissement

Depreciation of fixed assets over a number of accounting periods.

Last updated: 2023-04-20

Capital intensity

French: Intensité du capital

Measure of the amount of fixed capital investment required by the contractor to produce a good or service.

Last updated: 2010-01-11

Capital lease

French: Bail de location-acquisition

A lease that, from the point of view of the lessee, transfers substantially all the benefit and risk associated with ownership of the leased property from the lessor to the lessee. Typically, a lessee would record the underlying asset (property) as though it owns/purchased the asset.

Last updated: 2023-04-20

Carrier

French: Transporteur

Any person who, in a contract of carriage, undertakes to perform or to procure the performance of transport by rail, road, air, sea, inland waterway or by a combination of such modes.

Last updated: 2010-01-11

Cash flow

French: Mouvement de trésorerie

A tracing, in successive steps, of individual items or aggregates of income or expenditure from their first recognition in the accounts to their final disposition or loss of identity.

Last updated: 2010-01-11

Ceiling price

French: Prix plafond

The maximum amount of money to be paid to the contractor for the prescribed work as established in the contract. When a ceiling price is used in a contract, the contractor is not entitled to additional compensation. A ceiling price is used when the level of effort or quantity can be realistically estimated, and there is full agreement between the parties as to what constitutes the prescribed work.

Last updated: 2017-08-17

Certified Products List (CPL)

French: Liste des produits certifiés (LPC)

The CPL is identical to the Qualified Products List (QPL) except that there are more frequent audits and tests. This higher level of product assurance permits the qualifying authority, as a certification agency, to enter into a licensing agreement with supplier(s), allowing them to use a registered certification mark on their products and promotional literature.

Last updated: 2010-01-11

Classified information

French: Information classifiée

Information related to the national interest that may qualify for an exemption or exclusion under the Access to Information Act or Privacy Act and the compromise of which would reasonably be expected to cause injury to the national interest.

Last updated: 2010-01-11

Client

French: Client

A department, agency, branch, division, Crown corporation or other entity for whom PWGSC procures goods and services.

Last updated: 2010-01-11

Collusion

French: Collusion

A secret understanding between two or more persons to take advantage of another with the object of depriving him or her of a right or property. It implies the existence of fraud of some kind, the employment of fraudulent means, or of lawful means for the accomplishment of an unlawful purpose.

Last updated: 2010-01-11

Co-operative Logistics (COLOG)

French: COLOG

A supply arrangement, which is negotiated with the United States Government under the auspices of Foreign Military Sales (FMS). It enables the Canadian Department of National Defence to obtain directly from the supply systems operated by the United States Department of Defense, spare parts and accessories needed for Crown-owned military equipment of U.S. origin. This category of FMS cases (contracts) necessitates the purchase of equity in the supply system of the appropriate military organization. See 9.15 (FMS) and 9.20 (COLOG).

Last updated: 2024-04-19

Commercial practice

French: Pratique commerciale

Custom or usage of the particular trade in which usage or custom is ordinary and reasonable. Evidence of a trade usage may be given in aid of interpreting a contract.

Last updated: 2010-01-11

Commercial pricing

French: Établissement des prix commerciaux

Price of goods and services sold to the general public or entities for non-government purposes; price in ordinary trade between buyers and sellers free of bargain.

Last updated: 2023-04-20

Commercial products

French: Produits commerciaux

Products of a class or kind that are used regularly for other than government purposes and are sold by the contractor in the course of carrying out normal business operations, which are regularly sold by the contractor to clients other than the government in sufficient quantities to constitute a real commercial market, and for which there is sufficient number of buyers, other than the government, of establishing a going-price for the products.

Last updated: 2010-01-11

Commercial services

French: Services commerciaux

Services of a class or kind that are used regularly for other than government purposes and are sold by the contractor in the course of carrying out normal business operations, which are customarily provided by the contractor with personnel regularly employed and equipment, if necessary, and regularly maintained for the purpose of supplying such services, and for which there is a sufficient number of buyers, other than the government, to establish a going-price for the services.

Last updated: 2010-01-11

Commodity

French: Produit

Raw material, perishable goods, fabricated article or item of production or supply utilized in everyday endeavors and which is identified by contents, physical nature or characteristics.

Last updated: 2010-01-11

Common carrier

French: Transporteur public

Any person who undertakes and is authorized to transport persons or goods as a regular business.

Last updated: 2010-01-11

Common ownership control

French: Contrôle collectif

The assets of an enterprise or other organization are held indivisibly rather than in the names of the individual members. Consequently, rather than being “owners” of the enterprise, its members are held to be trustees of it and its assets for future generations. Common ownership is a way of “neutralizing” capital, and vesting control of an enterprise by virtue of participation in it, rather than by the injection of capital.

Last updated: 2010-01-11

Common service agency

French: Organisme de services communs

  1. An agency whose activities are directed mainly toward serving other departments and agencies.
  2. Public Works and Government Services Canada is a common service agency.

Last updated: 2010-01-11

Company

French: Compagnie

See corporation.

Last updated: 2010-01-11

Competitive bid solicitation

French: Demande de soumissions concurrentielle

Solicitation of bids from two or more sources.

Last updated: 2010-01-11

Competitive bidding

French: Soumission concurrentielle

A process that requires that all bidders be placed on an equal footing, and that they bid under the same terms and conditions.

Last updated: 2010-01-11

Competitive contract

French: Contrat concurrentiel

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.

Last updated: 2010-01-11

Complex procurement

French: Approvisionnement complexe

A complex procurement has the characteristic of dealing with the unknown. It requires creativity and ongoing development. It is based on achieving a goal/target and driven by managing change/phases. Pre-established methods of supply may have to be modified and procurement strategies and evaluation methodologies may have to be researched or developed. The procurement may involve partnerships with clients, multiple stakeholders, and control may be shared. Contract administration is detailed and extensive and may be unpredictable. There may be a high level of risk (public sensitivity, product, impacts).

Last updated: 2011-10-04

Compliance review

French: Vérification de conformité

This refers to a compliance review of a representative selection of contractors that will be conducted periodically by Human Resources and Skills Development Canada to assess compliance with the employment equity program criteria and the results obtained.

Last updated: 2010-01-11

Comprehensive Land Claims Agreements (CLCAs)

French: Ententes sur les revendications territoriales globales (ERTG)

  1. Comprehensive Land Claims Agreements (CLCAs) are negotiated in areas of Canada where Aboriginal rights and title have not been addressed by treaty or through other legal means. These agreements are modern-day treaties between Aboriginal claimant groups, Canada and the relevant province or territory. While each one is unique, these agreements usually include such things as land ownership, money, wildlife harvesting rights, participation in land, resource, water, wildlife and environmental management as well as measures to promote economic development and protect Aboriginal culture. Many agreements also include provisions relating to Aboriginal self-government.
  2. CLCAs are law. The CLCA obligations are legally binding because they are contained in agreements signed by Canada and backed by legislation.

Last updated: 2013-11-06

COMSEC

French: COMSEC

Cryptographic, transmission and emission security measures applied to information stored, processed or transmitted electronically; a subset of information technology security.

Last updated: 2010-01-11

Condition

French: Condition

  1. Contract law.
    1. A term or an obligation in the contract that goes directly to the substance of the contract or is essential to its very nature that its non-performance may be fairly considered by the other party as a substantial failure to perform the contract at all.
    2. A provision making an obligation subordinate or contingent upon a future and uncertain event.
  2. Implied condition. One created by law without any words used by the parties, whether the parties had it in their minds at the time or not.

Last updated: 2010-08-16

Confidential

French: Confidentiel

Level of classification that applies to information and assets whose compromise could reasonably be expected to cause injury to the national interest.

Last updated: 2010-01-11

Consignee

French: Destinataire

The person to whom goods are shipped.

Last updated: 2010-01-11

Consignment

French: Expédition

Goods shipped for future sale or other purposes. The ownership of the goods (title) remains with the shipper (consignor). The receiver (consignee) is accountable for the goods after accepting them. Consigned goods are a part of the consignor's inventory until sold. The consignee may be the eventual purchaser, may act as the agent through whom the sale is effected, or may otherwise dispose of the goods in accordance with its agreement with the consignor.

Last updated: 2010-01-11

Construction contract

French: Contrat de construction

  1. Includes an agreement for the supply and erection of a prefabricated structure. The mere purchase of a prefabricated structure would be a "goods contract." However, a subsequent erection contract would be a "construction contract”.
  2. A contract entered into for the construction, repair, renovation or restoration of any work except a vessel and includes: a contract for the supply and erection of a prefabricated structure; a contract for dredging; a contract for demolition; or a contract for the hire of equipment to be used in or incidentally to the execution of any contract referred to in this definition.

Last updated: 2010-01-11

Consultant

French: Expert-conseil

An individual or entity that provides advice or other professional services to Canada. A consultant serves in an outside independent advisory capacity to an officer or department, as distinguished from one who serves as an employee in performance of a department's duties and responsibilities. A consultant expresses views or gives opinions on problems or questions as requested, but does not perform, supervise, nor take responsibility for the performance of operating functions. Ordinarily, consultants are experts in a particular field in which advice is given. A consultant need not be a specialist; the expertise may consist of broad administrative, professional or technical experience, indicating ability and knowledge, which will make the advice a distinctive value to the client. The work performed under the contract is the provision of advice.

Last updated: 2010-01-11

Contingent liability

French: Dette éventuelle

A legal or financial obligation that may arise as a result of a future and uncertain event. A liability which is not now fixed and absolute, but which will become so in case of the occurrence of some future and uncertain event. A potential liability, e.g. pending lawsuit, disputed claim.

Last updated: 2010-01-11

Contract

French: Contrat

  1. An agreement between two or more persons, which creates an obligation to do or not to do a particular thing. Its essentials are competent parties, subject matter, a legal consideration, mutuality of agreement and mutuality of obligation.
  2. Under the Government Contracts Regulations, a contract means a construction contract, a goods contractor and a service contract entered into on behalf of Canada by a contracting authority.

Last updated: 2010-08-16

Contract approval authority

French: Pouvoir d'approbation des contrats

The authority delegated by the Minister of PWGSC to the person designated to occupy a position, that is, the incumbent of a position, to approve on his/her behalf submissions to enter into contracts, to amend contracts or to issue standing offers up to specified dollar limits. See contract signing authority.

Last updated: 2010-01-11

Contract Claims Resolution Board (CCRB)

French: Conseil de règlement des différends contractuels

CCRB resolves claims resulting from contract disputes in a more economical, quicker and less formal process. This Board takes a common sense alternative dispute resolution approach to problems and seeks to reach settlements that are acceptable to all parties. A summary of the dispute resolution processes of the Contract Settlement Board and the Contract Dispute Advisory Board is set forth in 8.145 and 8.150 respectively.

Last updated: 2010-01-11

Contract date

French: Date du contrat

The effective date of the contract.

Last updated: 2010-01-11

Contract dispute

French: Différend contractuel

Matter of dispute in respect of a contract that cannot be resolved between the contractor or its authorized representative and the contracting officer designated in the said contract.

Last updated: 2010-01-11

Contract for service

French: Contrat de services

  1. A contract in which one party (the contractor) agrees to provide services to another with no day-to-day supervision or control. It normally implies the accomplishment of a specified job or task to achieve a prescribed objective.
  2. An employer-employee relationship does not exist in contracts for services.

Last updated: 2010-01-11

Contract price

French: Prix contractuel

  1. General. The price or price formula stipulated in a contract of purchase or sale. It is also referred to as firm price, target price, cost price, etc.
  2. PWGSC contract. The amount expressed in the contract to be payable to the contractor for the work.

Last updated: 2010-01-11

Contract security

French: Garantie contractuelle

A payment bond or a performance bond given on behalf of a person to Canada, to make good on any default by that person under the contract by compensating Canada, or completing the performance of the contract to the extent required by the terms and conditions of the payment bond or performance bond, or a security deposit given by the person to Canada to secure the performance of the contract to the extent required by the terms and conditions of the contract.

Last updated: 2010-01-11

Contract signing authority

French: Pouvoir de signature des contrats

The authority delegated by the minister of PWGSCto the person designated to occupy a position, that is, the incumbent of a position, to sign on his/her behalf contract, contract amendment or standing offer documents after ascertaining that the approval authority has been duly granted and ensuring that the terms and conditions written in the documents reflect those approved by the contract approval authority. See contract approval authority.

Last updated: 2010-01-11

Contracting authority

French: Autorité contractante

  1. The appropriate minister, as defined in paragraph (a) or (b) of the definition "appropriate Minister" in section 2 of the Financial Administration Act.
  2. A corporation named in Schedule II of the Financial Administration Act.
  3. Defence Construction (1951) Limited, the National Capital Commission or the National Battlefields Commission. See also contract approval authority and appropriate minister.
  4. The person authorized to enter into a contract on behalf of Canada.

Last updated: 2010-01-11

Contractor

French: Entrepreneur

  1. General. This refers to any one of the parties to a contract.
  2. One who contracts to perform work or furnish materials in accordance with a contract.

Last updated: 2010-01-11

Contractual risk

French: Risque contractuel

Risk of the possibility of financial loss, delay, or non-performance related to contract specific factors.

Contractual risk assessment tool. A summary tool of the guidance designed to support the assessment of contractual risk in a procurement in order to establish an appropriate contract risk profit rate (Practitioner’s Guide for Procurement Pricing, Section 6.0 Annexes, Annex 6 Tools and Templates, Annex 6.3 Contractual Risk Assessment Tool).

Last updated: 2023-04-20

Control

French: Contrôle

The process by which the activities of a project or organization conform to a desired plan of action. Examples of control elements are: authority and capacity for its exercise, common understanding of purpose, objectives, plan of organization and action, assumption of responsibility by organizational units, policies governing courses of action, standards of performance appraisals and monitoring of performance, and ability to convert or modify performance.

Last updated: 2010-01-11

Controlled goods

French: Marchandises contrôlées

Controlled goods are defined under the schedule to the Defence Production Act. The goods listed in the schedule to the Export Control List made under section 3 of the Export and Import Permits Act are controlled goods.

Last updated: 2010-01-11

French: Droit d'auteur

  1. An exclusive statutory right of those such as authors, publishers, composers, etc., to control the publication/dispositions of their works of art, literature, music, films, pictures, etc., which is protected by the Copyright Act of Canada. Under the Geneva Convention of 1952 to which Canada became a party in 1962, international copyright is obtained without any formalities by placing on the work the symbol 8, identifying the name of the copyright holder in the year of the first publication.
  2. The exclusive right of printing or otherwise multiplying copies of information and data.
  3. For a more comprehensive definition, see section 3 of the Copyright Act.

Last updated: 2010-01-11

CORCAN

French: CORCAN

CORCAN includes the Correctional Services Canada (CSC) Industries, and the Automated Document Processing and Agribusiness programs. Purchases by PWGSC, on behalf of clients, from CSC will be conducted through CORCAN. See 9.30.

Last updated: 2010-01-11

Corporation

French: Société

An artificial person or legal entity created by or under the authority of the federal or provincial laws. The law treats the corporation itself as a person, which can sue and be sued. The corporation is distinct from the individuals who comprise it (shareholders).

Last updated: 2010-01-11

Cost

French: Coût

  1. Cost is the asset laid down cost plus amount of consideration given up to, construct, develop, or better an item of property, plant and equipment including installing it at the location and in the condition necessary for its intended use less any applicable portion of any income, rebate, allowance, or any other credit relating to any applicable direct or indirect cost, received by or accruing to the contractor and related capitalized borrowing costs included in the cost of the asset.
  2. Allowable contract costs as defined in Contract Cost Principles 1031-2 do not include estimated costs of dismantling and removing the item and restoring the site on which it is located.

Last updated: 2023-04-20

Cost accounting

French: Comptabilité du prix de revient

The classification, recording, analysis, reporting and interpretation of expenditures associated with the production and distribution of goods and services.

Last updated: 2010-01-11

Cost Accounting Practices Submission ( CAP Submission)

French: Déclaration des pratiques de comptabilité analytique

Formal disclosure of a contractor's cost accounting practices including the identification of direct and indirect costs and disclosure of methodologies used to allocate indirect costs.

Last updated: 2023-04-20

Cost analysis

French: Analyse des coûts

  1. An examination or review of cost data to determine if costs are charged in accordance with prescribed criteria or regulations, for example the Contract Cost Principles 1031-2.
  2. A study of cost data for the purpose of identifying the causes of inefficiency or the improvement desirable in cost recording, supervision or management.
  3. The estimation of production costs by the bidder.
  4. The examination, before price negotiation, of the cost estimates presented by a potential supplier. Such analysis is for the purpose of checking that only permitted types of cost are included, that no significant cost category has been omitted, and that time, labour rates and other details are reasonable.

Last updated: 2010-01-11

Cost-based pricing

French: Établissement des prix fondé sur les coûts

Price based on costs incurred, cost estimates or actuals, or a combination of these factors with the possible additional of a profit margin calculated in accordance with the Profit Principles.

Last updated: 2023-04-20

Cost centre

French: Centre de coûts

An administrative unit selected within an organization for the purpose of accumulating and controlling costs. It usually consists of a natural grouping of machines, methods, processes or operations; is identified with single management responsibility; and is made up of elements, which have common cost characteristics.

Last updated: 2010-01-11

Cost control

French: Contrôle des coûts

Employment of management devices in the performance of any necessary operation so that pre-established objectives of quality, quantity and time may be attained at the lowest possible outlay or cost for goods and services. Such devices include a bill of material, instructions, performance standards, competent supervision, cost limits on items and operations, and studies, interim reports and decisions based on these reports.

Last updated: 2010-01-11

Costs incurred

French: Frais engagés

Costs allowed under the Contract Cost Principles 1031-2 applicable to a particular contract. See also cost.

Last updated: 2010-01-11

Costing standard

French: Norme d’établissement des coûts

Provides supplementary guidance that includes explanations of Canada's expectations and core costing principles (Attributable, Appropriate, and Reasonable) in determining the acceptability of a cost and the amount claimed.

  1. Attributable. A cost is attributable if it is incurred directly or indirectly for the fulfilment of the contract and it is necessary to fulfil the requirements of that contract.
  2. Appropriate. A cost is appropriate if it, by its character and nature, represents a cost that is expected to be incurred in the conduct of delivering the contract.
  3. Reasonable. A cost is reasonable if by its nature it does not exceed what might be expected to be incurred in the normal delivery of the contract in question, whether under a competitive or non-competitive procurement.
  4. Contract cost acceptability criteria. To be acceptable, a contract cost must meet the criteria of Attributable, Appropriate, and Reasonable as defined in the Costing Standard.

Last updated: 2023-04-20

Cost of goods

French: Coût des biens

Stocked Item Supply. The price FOB supplier plus inbound transportation.

Last updated: 2010-01-11

Cost of service

French: Coût du service

Stocked Item Supply. This refers to all expenses (other than cost of goods) incurred by PWGSC in providing the Stocked Item Supply service.

Last updated: 2010-01-11

Cost plus fixed fee

French: Coût plus honoraires fixes

A basis of price in which the contractor is paid costs reasonably and properly incurred, as determined by audit together with an agreed upon fixed fee (or a percentage of cost) by way of profit.

Last updated: 2010-01-11

Cost reimbursable contract

French: Contrats à frais remboursables

Contract where the contractor is reimbursed the applicable, allocable, reasonable direct and indirect costs incurred by the contractor. There are five general types of cost reimbursable contract basis of payment as follows: cost reimbursable with fixed time rate; cost reimbursable with incentive fee; cost reimbursable with fixed fee; cost reimbursable with fee based on actual costs; and cost reimbursable with no fee. 

Last updated: 2012-07-16

Counter offer

French: Contre-offre

An offer to enter into a transaction on terms differing from those first proposed. A statement by the offeree which has the legal effect of rejecting the offer and of proposing a new offer to the offeror.

Last updated: 2010-01-11

Country of origin

French: Pays d'origine

A country in which the product is mined, produced or manufactured. A product of domestic origin is a product mined, produced, or manufactured in Canada.

Last updated: 2010-01-11

Customs

French: Douane

Duties charged on commodities on their import into or export from a country by a governmental authority.

Last updated: 2010-01-11

Customs duty - defence

French: Droit de douane - défense

Tariff Code 9982.00.00 of the Schedule to the Customs Tariff provides for the remission of customs duty on all defence supplies imported under contracts of $250,000 or more, by the Department of National Defence and Public Works and Government Services Canada (PWGSC), as well as the private sector provided that the person claiming remission provides certification by the minister of PWGSC that the goods supplied under the contract are defence supplies.

Last updated: 2010-01-11

Customs tariff

French: Tarif des douanes

A schedule of charges assessed by the government on imported goods.

Last updated: 2010-01-11

D

Damages

French: Dommages-intérêts

  1. Compensation, usually in money, for injury to persons, or damage to goods or property.
  2. General damages are such as the law will presume to be direct, natural and probable consequences of the act in question.
  3. Special damages are such as the law will presume to be exceptional in character.
  4. See also liquidated damages.

Last updated: 2010-01-11

Defect

French: Défaut

  1. General. A lack, want, deficiency or absence of something necessary for completeness, perfection or adequacy in form or function.
  2. An imperfection, fault or error in manufactured materiel and service.
  3. Critical defect. A defect that judgment and experience indicate is likely to result in hazardous or unsafe conditions for individuals depending on, using or maintaining the product.
  4. Major defect. Other than critical defect that is likely to result in failure, or to reduce materially the usability of the unit product for its intended purpose.
  5. Minor defect. A defect that is not likely to reduce materially the usability of a unit product for its intended purpose, or is a departure from established standards having little bearing on the effective use or operation of the unit.
  6. Latent defect. This refers to a hidden or concealed defect, one, which could not be discovered by reasonable and customary inspection; one not apparent on the face of goods, product or a document.

Last updated: 2010-01-11

Defence contract

French: Contrat de défense

A contract or subcontract with Canada or an agent of Canada, or with an associated government, that in any way relates to defence supplies or to defence projects or to the designing, manufacturing, producing, constructing, finishing, assembling, transporting, repairing, maintaining or servicing, or storing of, or dealing in, defence supplies or defence projects.

Last updated: 2010-01-11

Defence Production Act

French: Loi sur la production de défense

An act that gives to the minister of PWGSC"exclusive authority to buy or otherwise acquire defence supplies". The provisions of the Defence Production Act govern all PWGSC contracts for defence supplies or projects.

Last updated: 2010-01-11

Defence production loan account

French: Compte de prêts de la production de défense

An account, which may be used to make loans or advances to aid in defence procurement, such as working capital loans or advance payments on contracts and to make payment for such. See 9.25.

Last updated: 2010-01-11

Defence production revolving fund

French: Fonds renouvelable de la production de défense

An account in the Consolidated Revenue Fund, which may be used by PWGSC to designate and operate the DPRF for other than loan transactions. The DPRF provides PWGSC with a budgetary account to purchase defence supplies, to make payment for such, and to get reimbursed out of an appropriation of a client (for example, DND), or by an agent of Canada, or by an associated government. See 9.25.1.

Last updated: 2010-01-11

Defence projects

French: Entreprises de défense

Buildings, aerodromes, airports, dockyards, roads, defence fortifications or other military works, or works required for the production, maintenance or storage of defence supplies.

Last updated: 2010-01-11

Defence supplies

French: Matériel de défense

This has the same meaning as in the Defence Production Act and covers:

  1. Arms, ammunition, implements of war, vehicles, mechanical and other equipment, watercraft, amphibious craft, aircraft, animals, articles, materials, substances and things required or used for the purposes of the defence of Canada or for cooperative efforts for defence being carried on by Canada and an associated government.
  2. Ships of all kinds.
  3. Articles, materials, substances and things of all kinds used for the production or supply of anything mentioned in 1. or 2. above or for the construction of defence projects.
  4. Requirements necessary or appropriate to promote national defence, which means programs for military and atomic energy production or construction, military assistance and directly related activities.

Last updated: 2010-01-11

Delayed bid

French: Soumission retardée

A bid delivered to the specified bid receiving area after the closing date and time but before the contract award date may be considered, provided the delay can be proven to have been due solely to a delay in delivery that can be attributed to the Canada Post Corporation (CPC) (or national equivalent of a foreign country) or to incorrect handling by PWGSC. The only pieces of evidence relating to a delay in the CPC system that are acceptable are: a CPC cancellation date stamp; a CPC Priority Courier Bill of Lading, and a CPC Xpresspost Label, which clearly indicates that the bid was mailed before the bid closing date.

Last updated: 2010-01-11

Delivery

French: Livraison

  1. Actual. The transfer of possessions.
  2. Sale of goods. Delivery takes place when the goods are placed under the control of the person who has to receive them. Alternatively, the presence of the goods at the seller's place of business, ready to be delivered, and the purchaser notified, may be termed a delivery.
  3. Shipping occurs when lading is surrendered and title to goods passes to the receiver or consignee.

Last updated: 2010-01-11

Department

French: Ministère

  1. The same meaning as in the Financial Administration Act (FAA) and includes any of the departments named in Schedule I and any corporation in Schedule II of the FAA, the staffs of the Senate, the House of Commons, and the Library of Parliament. It includes further any division or branch of the public service of Canada, including a commission appointed under the Inquiries Act, designated by the Governor in Council as a department for the purposes of the FAA.
  2. Department of Public Works and Government Services.

Last updated: 2010-01-11

Departmental Individual Standing Offer (DISO)

French: Offre à commandes individuelle et ministérielle (OCIM)

Used by PWGSC as a method of supply to: analyze customer demand, determine quantities and quality, standardize products used by government, manage complex requirements and satisfy requirements for data collection for reports to Treasury Board and the Auditor General's Office. Only PWGSC may issue call-ups against a DISO upon receipt of a funded requisition from a customer department.

Last updated: 2010-01-11

Depreciation

French: Amortissement

  1. Decrease in value, particularly the deterioration or the loss in value arising from age and use of a property.
  2. The gradual exhaustion of the service capacity of fixed assets, which is not restored by maintenance practices. It is the consequence of such factors as use, obsolescence, inadequacy and decay.
  3. A proportionate charge as an expense for a period based on the cost or other recorded value of fixed assets.

Last updated: 2010-01-11

Design authority

French: Responsable de la conception

The component of the client or its delegated agency responsible for determination of design parameters.

Last updated: 2010-01-11

Design change

French: Modification de conception

A permanent change or modification to the governing technical data.

Last updated: 2010-01-11

Design deviation

French: Altération de conception

A temporary departure from governing technical data.

Last updated: 2010-01-11

Direct cost

French: Coût direct

Any item of cost, or the total of such items, which can be directly related to a particular product, service, program, function or project; usually, but not necessarily limited to items of material and labour and direct overhead.

Last updated: 2010-01-11

Direct labour

French: Main-d'œuvre directe

The labour applied to the material that will form an integral part of the final product in a manufacturing process.

Last updated: 2010-01-11

Direct labour costs

French: Frais de main-d'œuvre directe

The approved direct labour costs applicable to the estimated costs of a negotiated contract. Negotiated labour costs for a lengthy contract may include predicted increases in labour rates.

Last updated: 2010-01-11

Direct material

French: Matières directes

The material that will form an integral part of the final product in a manufacturing process.

Last updated: 2010-01-11

Discount

French: Escompte

  1. A reduction from a list price or a stated amount offered by the seller to the buyer.
  2. A cash discount is an allowance extended to encourage payment of invoice on or before a stated date, which is earlier than the net date. The percent of discount allowed is agreed upon between buyer and seller and is often established by industry or trade custom.
  3. To compute the present value of a future sum.

Last updated: 2010-01-11

Discretionary audit

French: Vérification discrétionnaire des comptes

  1. Verification done on a discretionary basis by the government of profit on a contract or a series of contracts.
  2. Verification that Canada is not being charged in excess of the lowest price charged anyone else. This verification is employed in conjunction with a price certification on negotiated firm price contracts.

Last updated: 2010-01-11

Discretionary verification

French: Vérification discrétionnaire

An independent verification by Audit Services Bureau or other qualified personnel as approved by Acquisition Program Integrity Secretariat, to supplement the checks and verifications carried out by the contracting officers and/or cost analysts, to ensure the timeliness of payments by contractors to workmen, subcontractors and suppliers.

Last updated: 2010-01-11

Disposal

French: Aliénation

The removal of materiel from a supply system by sale, trade-in or destruction. Within the federal government, disposal is normally arranged through the PWGSC Crown Assets Distribution Directorate/Centre.

Last updated: 2010-01-11

Distributor

French: Distributeur

A supplier who acquires goods for resale to a wholesaler, retailer or ultimate consumer. A distributor may sell goods from their own inventory, from a consignment inventory, or directly from the manufacturer's stock.

Last updated: 2010-01-11

Duty

French: Droit

  1. General. A tax levied by a government on the importation, exportation, or use and consumption of goods.
  2. Any duties or taxes levied on imported goods under the Customs Tariff, the Excise Tax Act, the Excise Act, the Special Import Measures Act, or any other law relating to customs.
  3. All applicable duties. All duties in effect on the contract date imposed and collected by the taxing authority on the transaction or property covered by the contract.

Last updated: 2010-01-11

E

Economic price adjustment

French: Indexation des prix

Price adjustments, both upward and downward, which are necessary either to protect Canada and the contractor against significant economic fluctuations in labour and material costs, including services and supplies, or in the event of changes in the contractor's established prices attributable to industry-wide economic factors.

Last updated: 2010-01-11

Effectiveness

French: Efficacité

  1. Auditor General. The extent to which a program achieves its goals or other intended effects. For example: to increase income in a particular area, a program might be devised to create jobs. The jobs created would be program output. This contributes to the desired program effect of increased income, which can be measured to assess program effectiveness. Of course, not all programs are equally evaluated. Also, management procedures for measuring and reporting effectiveness will differ between programs.
  2. General. The measure of how well a group, person, function or program reaches its objectives or achieves results.

Last updated: 2010-01-11

Efficiency

French: Efficience

  1. Auditor General. The relationship between goods or services produced, and resources used to produce them. An efficient operation produces the maximum output for any given set of resource inputs, or it has minimum inputs for any given quantity and quality of service provided.
  2. General. A measure of how well a person, group, function or program uses its time and resources to achieve certain results, that is, total resources consumed.

Last updated: 2010-01-11

Electrical equipment

French: Matériel électrique

Any apparatus, appliance, device, instrument, fitting, fixture, machinery, material or thing used in or for, or capable of being used in or for, the generation, transformation, transmission, distribution, supply or utilization of electrical power or energy, and without restricting the generality of the foregoing, including any assemblage or combination of materials or things, which are used or are capable of being used or adapted, to serve or perform any particular purpose or function when connected to an electrical installation, notwithstanding that any of such materials or things may be mechanical, metallic or non-electric in origin.

Last updated: 2010-01-11

Electronic bidding

French: Invitation électronique à soumissionner

A method of procurement that promotes suppliers' access to, and transparency in, the procurement process and facilitates Canada's receipt of best value, by using:

  1. public notice by means of an approved electronic information service of procurement opportunities (e.g., Government Electronic Tendering Service [GETS]);
  2. public notice by means of an electronic information service of proposed directed procurements by means of an Advance Contract Award Notice;
  3. such other procurement methods as may be approved by the Treasury Board.

Last updated: 2013-06-01

Employment equity

French: Équité en matière d'emploi

A concept that encourages the removal of employment barriers; identifies and removes discriminatory policies and practices; seeks the goal of fair representation for all Canadians, in particular women, Aboriginal people, disabled persons and visible minorities; and promotes economic development through the full utilization of the talents of all Canadians.

Last updated: 2010-01-11

Engineering Change Proposal

French: Proposition de modification technique

Design change procedure used in aircraft procurement. The ECP form provides the data concerning a proposed change and, when signed by design and procurement authorities, becomes a change order.

Last updated: 2010-01-11

Equipment

French: Équipement

Major items of materiel that are not expendable except through depreciation or wear and tear and which, although they may be fixed or positioned in prescribed places, do not lose their identity or become integral parts of other equipment and installations. Items in this category are normally susceptible to running maintenance. Equipment items are usually procured, issued and replaced on the basis of planned departmental capital acquisition programs, for example, aircraft vehicles, vessels, boats, workshop machinery, electronics systems.

Last updated: 2010-01-11

Escalation

French: Indexation

See economic price adjustment or adjustment.

Last updated: 2010-01-11

Estimated cost

French: Coût estimatif

The estimated cost to be used as the basis for the sourcing decision is that cost determined, through consultation between PWGSC and the client, as being representative of all known work and expected unscheduled work, arising out of the requirement, that is, the total estimated contract value.

Last updated: 2010-01-11

Exchange rate adjustment

French: Rajustement de fluctuation du taux de change

The exchange rate adjustment is the adjustment amount, plus, minus or zero that will be shown as a line item on each invoice for contracts with an exchange rate fluctuation provision and reflected in the total price payable for the invoice. It is calculated in accordance with the contract provisions using form PWGSC-TPSGC 450 Claim for Exchange Rate Adjustments.

Last updated: 2013-11-06

Executory costs

French: Coûts exécutoires

Costs related to the operation of the leased property (for example, insurance, maintenance cost and property taxes).

Last updated: 2010-01-11

Ex gratia payment

French: Paiement à titre gracieux

A payment made pursuant to the Treasury Board Directive on Payments: “a benevolent payment made by the Crown used only when there is no other statutory, regulatory or policy vehicle to make such a payment. The payment is made in the public interest for loss or expenditure incurred where the Crown has no obligation of any kind or has no legal liability, or where the claimant has no right of payment or is not entitled to relief in any form.”

Last updated: 2017-08-17

Export permit

French: Permis d'exportation

A permit issued on application, by Industry Canada, to a resident of Canada for the export of certain goods covered by the Export Permit Regulations.

Last updated: 2010-01-11

Extra payment claim

French: Demande d'indemnisation

Claims made by a contractor against Canada in respect of firm or ceiling price contracts where a legal liability does not exist or where there is uncertainty that a legal liability exists under the contract.

Last updated: 2010-01-11

Extract file

French: Dossier d'extraits

A file created when a requisition is formally subdivided and involves procurement action by a contracting officer other than the main file holder.

Last updated: 2010-01-11

F

Facility

French: Installation

  1. A physical plant or installation; for example, base, arsenal or building, used to make the performance of a function easier.
  2. The materiel resources needed to facilitate any action or operation.

Last updated: 2010-01-11

Facility evaluation

French: Évaluation des installations

A survey/examination of any or all of the capabilities of a supplier that pertain to competence as a source of supply or recipient of aid. Pre-award surveys are made in cases of doubt regarding productive capability, quality control or financial strength.

Last updated: 2010-01-11

Facility security clearance

French: Attestation de sécurité d'installation

A determination by the Contract Security Program that, from a security viewpoint, an organization is eligible for access to Canadian and foreign government information or assets, which are “classified” or “protected” at the same level as the clearance being granted or to a lower level.

Last updated: 2022-05-02

Fair market value

French: Juste valeur marchande

  1. The price that would be agreed to in an open and unrestricted market between knowledgeable and willing parties, dealing at arm's length, who are fully informed and not under any compulsion to transact.
  2. The word “fair” implies a concept of a market, which is not disturbed by unpredictable economic factors; for example, boom or depression.

Last updated: 2010-01-11

FAS Free Alongside Ship (...named port of shipment)

French: FAS franco le long du navire (...port d'embarquement convenu)

The book containing the International Chamber of Commerce (ICC) official rules for the interpretation of trade terms is entitled "Incoterms 2000" , and the location of a summary for the description of FAS. The responsible obligations of the buyer and seller cannot be found on the ICC Web site; that information may only be found in the Incoterms 2000 book.

Last updated: 2010-01-11

FCA Free Carrier (...named place)

French: FCA franco transporteur (... lieu convenu)

The book containing the International Chamber of Commerce (ICC) official rules for the interpretation of trade terms is entitled "Incoterms 2000" , and the location of a summary for the description of FCA. The responsible obligations of the buyer and seller cannot be found on the ICC Web site that information may only be found in the Incoterms 2000 book.

Last updated: 2010-01-11

Federal Supply Classification

French: Classification fédérale des approvisionnements

PWGSC uses the U.S. Federal Supply Classification (FSC) system as the basis for assigning commodity procurement responsibilities, and the Goods and Services Identification Number (GSIN) system permits the definitive assignment of responsibilities for item groupings within FSC.

Last updated: 2010-01-11

Final payment

French: Paiement final

Payment made in satisfaction of a final invoice. This refers to a payment, which completes the monetary settlement in accordance with the conditions of the contract.

Last updated: 2010-01-11

Financial analysis

French: Analyse financière

The process of selecting relevant financial information about the supplier, developing significant relationships (ratios), studying these relationships and interpreting the results.

Last updated: 2010-01-11

Firm base price or firm base price elements

French: Prix de base ferme ou éléments de prix de base ferme

The otherwise firm price or firm price elements identified within the contract basis of payment from which economic price adjustments will be made on the occurrence of certain specified contingencies.

Last updated: 2010-01-11

Firm price

French: Prix ferme

A method of pricing in which the total amount payable is a fixed lump sum, or is an amount determinable in accordance with fixed unit prices.

Last updated: 2010-01-11

Firm price contract

French: Contrat à prix ferme

A contract that sets the total amount payable, or pursuant to which the total amount payable is the product obtained, by multiplying the number of identical units of work performed or identical items delivered by a predetermined fixed price for each unit or item.

Last updated: 2010-01-11

First-tier subcontract

French: Premier contrat de sous-traitance

Means:

  1. A contract made between the offeror and a person (other than Canada) for carrying out or supplying goods for part or all of another contract between the offeror and Canada (which may include, without limitation, all the activities, services, goods, matters and things required to be done, delivered or performed by the offeror under a contract or real property agreement); and
  2. A sublease made between the offeror and a person (other than Canada) for part of or all of premises leased by Canada to the offeror.

Last updated: 2024-05-31

First-tier subcontractor

French: Premier sous-traitant

(For purposes of the Ineligibility and Suspension Policy.)

Means a contractor to a first-tier subcontract.

Last updated: 2024-05-31

Fixed capital employed

French: Capital immobilisé utilisé

Amount of capital or money invested during the performance of a contract for assets of a durable nature that are used over a long period. For example, equipment and facilities.

  1. Fixed capital employed tier 1 approach. The simplified approach to determine return on fixed capital employed for all contracts where the total estimated or acceptable contract costs are less than or equal to $1,000,000.
  2. Fixed capital employed tier 2 approach. The simplified approach to determine return on fixed capital employed for contracts where the total estimated or acceptable costs are less than or equal to $20,000,000, and contracts with lower fixed capital intensity level.
  3. Fixed capital employed tier 3 approach. The approach to determine return on fixed capital employed for contracts where the total estimated or acceptable contract costs are greater than $1,000,000 and contracts that do not meet the criterial for fixed capital employed Tier 1 and Tier 2 or for Tier 1 or Tier 2 contracts where a contractor requests the full Tier 3 determination.

Last updated: 2023-04-20

Fixed time rate

French: Taux fixe basé sur le temps

A method of pricing in which the amount payable is determined in accordance with the combined cost of labour, overhead and profit, as expressed by a fixed amount by time period.

Last updated: 2010-01-11

Fixed unit price

French: Prix unitaire fixe

A method of pricing in which the total amount payable is the product of the number of identical units of work performed or identical items delivered, multiplied by a predetermined fixed price for each unit or item.

Last updated: 2010-01-11

FOB (Free on Board)

French: FAB franco à bord

A mercantile term used extensively in both domestic and international trade.

  1. As a domestic trade term, used in both Canada and the United States, FOB ordinarily determines the place where the seller effects delivery of the goods, where title and risk of loss will pass, and whether the seller or the buyer is required to pay freight charges (for example, FOB New York), unless otherwise specified in the contract. Specific application of the term FOB either with reference to transfer of title, risk, or burden of freight charges, may vary according to applicable law, custom and usage or agreement of the parties concerned.
  2. As an Incoterm, FOB is defined by the International Chamber of Commerce and can only be used for shipments by seagoing vessels. (Note: There are 13 Incoterms 2000, 6 of which can only be used for shipments by seagoing vessel). The contractual rights and obligations of this and similar mercantile terms are used in international commerce.

Last updated: 2010-01-11

Foreground information

French: Renseignements originaux

All intellectual property first conceived, developed, produced or reduced to practice as part of the work under the contract.

Last updated: 2010-01-11

Foreign Currency Component (FCC)

French: Montant en monnaie étrangère

The portion of the price or rate that will be directly affected by exchange rate fluctuations. The FCC will typically include all related taxes, duties and other costs paid by the bidder and which are to be included in the adjustment amount. It may also include entry fees, transportation costs or delivery charges, and any other charges associated with being the importer of record which are paid in a foreign currency.

Last updated: 2013-11-06

Foreign Military Sales (FMS)

French: Ventes de matériel militaire à l'étranger (FMS)

A Security Assistance Program, which is administered by the United States Department of Defense, and allows eligible foreign governments and international agencies to purchase defence-related articles and services from the United States Government. See 9.15.

Last updated: 2024-04-19

Foreign Ownership, Control or Influence (FOCI)

French: Participation, contrôle et influence étrangers (PCEI)

Assessments are designed to ensure that no third party, individual, firm, or government is assumed to possess dominance of, or authority over, a Canadian facility to such a degree that it could gain unauthorized access to INFOSEC information.

Last updated: 2010-01-11

Formal agreement

French: Accord officiel

An agreement executed under seal by the parties and signed by the Corporate Secretary, the person responsible for affixing the seal for Canada.

Last updated: 2010-01-11

Former public servant

French: Ancien fonctionnaire

Any former member of a department as defined in the Financial Administration Act, former member of the Canadian Armed Forces or former member of the Royal Canadian Mounted Police.

Last updated: 2011-05-16

G

General and administrative rate

French: Coefficient de dépenses générales et administratives

Estimated general and administrative expenses are a percentage of material, labour and overhead costs.

Last updated: 2010-01-11

General business risk

French: Risque commercial général

Risks associated with the contractor’s industry environment and its management of resources and inputs in daily operations that could compromise the ability of the entity to achieve goals, execute strategies, or setting inappropriate goals and strategies.

Last updated: 2023-04-20

Goods and Services Identification Number (GSIN)

French: Numéro d'identification des biens et services (NIBS)

A system of material and services categorization used within PWGSC. The system is used in conjunction with the Federal Supply Classification (FSC) code.

Last updated: 2010-01-11

Goods contract

French: Contrat de biens

An agreement for the purchase of articles, commodities, equipment, goods, materials or supplies and includes the construction or repair of a vessel.

Last updated: 2020-05-04

Government Electronic Tendering Service (GETS)

French: Service électronique d'appels d'offres du gouvernement (SEAOG)

The service used by the federal government to post notices (for example, Notices of Proposed Procurement, Advance Contract Award Notices and Contract Award Notices) and to make available solicitation documents. This service provided through Buyandsell.gc.ca/tenders becomes the official site for Canada to meet its trade agreement obligations and is the authoritative and first source for Government of Canada tenders. For more information about GETS, visit the Buyandsell.gc.ca Tenders minisite or contact the support line at 1-855-886-3030.

Last updated: 2013-06-01

Government furnished equipment

French: Équipement fourni par le gouvernement

Equipment supplied by Canada to be used in the production process; for example, tooling, jigs, dies, production equipment. See special production tooling, special test equipment and production assets.

Last updated: 2010-01-11

Government guaranteed bond

French: Obligation garantie par le gouvernement

A bond of the Government of Canada or a bond unconditionally guaranteed as to the principal and interest by the Government of Canada that is:

  1. Payable to the bearer.
  2. Accompanied by a duly executed instrument of transfer of the bond to the Receiver General in the form prescribed by the Domestic Bonds of Canada Regulations.
  3. Registered in the name of the Receiver General.

Last updated: 2010-01-11

Government issue

French: Fournitures d'État

  1. Defence Production Act means machinery, machine tools, equipment or defence supplies furnished, acquired or purchased by or on behalf of the government or associated government with funds provided by the government or associated government.
  2. PWGSC contracts. All materials, parts, components, equipment, specifications, articles and things, which may be supplied to a contractor by the government for performance of the (contract) work.

Last updated: 2010-01-11

Government property

French: Biens de l'État

Anything supplied to the contractor by or on behalf of Canada for the purposes of performing the contract, and anything acquired by the contractor in any manner in connection with the work, the cost of which is paid by Canada under the contract.

Last updated: 2010-01-11

Government Quality Assurance (GQA) at source

French: Assurance officielle de la qualité (AOQ) à la source

The activity of the inspection authority or the GQA authority in monitoring or observing at the contractor's plant, before delivery, to verify whether a product, service and/or quality system complies with the technical requirements stipulated in the contract.

Last updated: 2010-01-11

Government-supplied materiel (GSM)

French: Matériel fourni par le gouvernement

Any item of materiel acquired by the government of Canada and provided on a "free issue" basis to contractors for embodiment in materiel under production or for incorporation into Crown-owned equipment undergoing modification, repair or overhaul.

Last updated: 2010-01-11

Grant

French: Subvention

An unconditional transfer payment made to a recipient, for which Canada will not receive any goods or services.

Last updated: 2010-01-11

Greenhouse gas emissions (GHG)

French: Émissions de gaz à effet de serre (GES)

  1. General term to refer to gases which contribute to the greenhouse effect (a warming of the planet through trapping of heat by these gases).
  2. GHG include water vapour, carbon dioxide (CO2), methane, and nitrous oxide. Most emissions result from the use of combustion engines which burn petroleum products. Oil and gas extraction, coal mining, and waste landfills account for approximately 55% of human-caused methane emissions, and approximately 32% are attributable to cows, sheep and other ruminants.

Last updated: 2023-04-11

Greening Government Strategy (GGS)

French: Stratégie pour un gouvernement vert (SGV)

  1. A set of government-approved commitments that apply to all core government departments and agencies, to transition the Government of Canada to net zero carbon, while also reducing environmental impacts beyond carbon, including on waste, water and biodiversity.
  2. Led by the Centre for Greening Government of the Treasury Board of Canada Secretariat, the Government of Canada will ensure that Canada is a global leader in government operations that are net zero, resilient and green. The GGS is consistent with the United Nations’ 2030 Agenda for Sustainable Development and the Federal Sustainable Development Strategy.

Last updated: 2023-04-11

Green procurement

French: Achat écologique

The integration of environmental considerations, along with quality, performance, price and availability into the procurement process, from planning to final disposal. Green procurement means that environmental impacts of the goods we procure, which have been appropriately considered in value for money decisions.

Last updated: 2010-01-11

H

Holdback

French: Retenue

This refers to an amount withheld under a contract, to ensure the performance of the contract, and also to avoid overpayments in relation to progress of work.

Last updated: 2010-01-11

Hypothecated bond

French: Obligation cautionnée

To pledge as collateral, such as personal property, as security for a debt without transfer of possession. This is used in relation to bid/security deposits and performance bonds.

Last updated: 2010-01-11

I

Importer

French: Importateur

A contractor, subcontractor or a supplier who actually imported the goods or materiel.

Last updated: 2010-01-11

Importer of record

French: Importateur officiel

The consignee or importer shown on the import entry form and on the Canada Customs Invoice or commercial invoices who is responsible for customs clearance and payment of the Goods and Services Tax or Harmonized Sales Tax.

Last updated: 2010-01-11

Inbound logistics

French: Logistique interne

The definition of “inbound logistic” is a matter of perspective. Shipments to Canadian Forces from repair and overhaul facilities and shipments off new acquisitions are considered inbound. Inbound logistics does not have an agreed-upon definition in the industry. A shipment is inbound to the receiver; conversely, shipments that are sent out B, as a raw materiel supplier, manufacturer or vendor might do B, are outbound from the sender. For inbound logistics planning, the focus of transportation management is on planning the receipt of the shipment. The definition of inbound logistics is related not only to the controller of the shipment process, but also who takes ownership of the goods shipped.

Last updated: 2010-01-11

Incentive remuneration profit sharing plan

French: Régimes de participation aux bénéfices - primes de rémunération

A plan designed to link the performance of employees to the achievement of organizational objectives, through the provision of additional compensation from the distribution of a defined portion of the organization’s net profit.

Last updated: 2023-04-20

Income

French: Revenu

The return in money from one's business, labour or capital invested; gains, profits or private revenue. The excess of revenues over expenses for a period is usually referred to as net income.

Last updated: 2010-01-11

Incoterms

French: Incoterms

Incoterms 2000 are standard trade definitions most commonly used in international sales contracts. They are protected by the International Chamber of Commerce copyright. They are part of the sales contract and not of the contract of carriage.

Last updated: 2010-08-16

Indemnify

French: Indemniser

  1. To compensate against loss or damage incurred by another; to reimburse another for such loss or damage.
  2. The word “indemnify” may mean either to prevent loss so that it does not occur, or to make reimbursement or compensation after the loss has occurred.

Last updated: 2010-01-11

Indirect cost

French: Coût indirect

An item of cost that cannot be reasonably identified with a specific unit of product or with a specific operation or other cost centre. An indirect cost is usually allocated to several cost objectives.

Last updated: 2010-01-11

Industrial security

French: Sécurité industrielle

Covers all that relates to security requirements under the terms of a contract, subcontract, standing offer, agreements, which will demand that identified private sector suppliers and their personnel be security screened and, if required, that the physical premises of the proposed contractor be inspected and approved to safeguard, produce or process “Protected” or “Classified” information, assets or data, prior to gaining access to such information or assets.

Last updated: 2010-01-11

Ineligibility and suspension list

French: Liste d'inadmissibilité et de suspension

A public list of companies that have been determined to be ineligible or suspended by PWGSC under the Ineligibility and Suspension Policy.

Last updated: 2016-04-04

INFOSEC

French: INFOSEC

All Communications-Electronic Security (COMSEC) information and material entrusted to or developed/evaluated by or for the Communications Security Establishment.

Last updated: 2010-01-11

Insolvency

French: Insolvabilité

A condition where a supplier, although not bankrupt, is either unable to meet its obligations, as they generally become due, or has ceased paying current obligations in the ordinary course of business, or whose assets have a realizable value insufficient to pay all its obligations.

Last updated: 2010-01-11

Inspection

French: Inspection

  1. General. A close scrutiny or an examination. The process of determining conformance of a product to the applicable requirements.
  2. 100 percent. The inspection of each unit of product or the whole material, as opposed to any form of sampling inspection.
  3. Final. The last of several inspections at successive stages of manufacture, repair, modification, etc.
  4. Normal. The inspection that is used when there is no statistically significant evidence that the quality of the product being submitted is higher or lower than the specified quality level.
  5. Original. The first inspection of a particular quantity of product, as distinguished from inspection of a product that is resubmitted after prior rejection.
  6. Receiving. Inspection by a client of materials and manufactured products, as delivered.
  7. Reduced. Provision in a sampling procedure for switching to a less severe sampling plan when there is evidence that the submitted quality level is higher than the specified quality level.
  8. Source. The inspection of supplies or services at the point of manufacture or point of shipment.
  9. Activities such as measuring, examining, testing, gauging one or more characteristics of a product or service and comparing these with specified requirements to determine conformity.
  10. The activity of monitoring or observing, before delivery, to verify whether a product, service and/or quality system complies with the technical requirements stipulated in the contract.

Last updated: 2010-01-11

Inspection at source

French: Inspection à la source

Refer to Government Quality Assurance (GQA) at source.

Last updated: 2010-01-11

Inspection authority

French: Responsable de l'inspection

The person designated as such in the contract. This includes any person acting, on behalf of Canada or the Minister, as the inspection authority in relation to the contract. For purposes of contracts for the Department of National Defence, inspection authority includes quality assurance authority.

Last updated: 2010-01-11

Insurance

French: Assurance

A contract of indemnity whereby one party (the insurer) undertakes to indemnify the other (the insured) against damage or loss, on a specified subject by specified perils in consideration of a payment received (a premium). The instrument by which the contract is entered into is called the policy.

Last updated: 2010-01-11

Intellectual property

French: Propriété intellectuelle

Any information or knowledge of an industrial, scientific, technical, commercial, literary, dramatic, artistic or otherwise creative nature relating to the work, whether oral or recorded in any form or medium and whether or not subject to copyright; this includes but is not limited to any inventions, designs, methods, processes, techniques, know-how, show-how, models, prototypes, patterns, samples, schematics, experimental or test data, reports, drawings, plans, specifications, photographs, manuals and any other documents, software, and firmware.

Last updated: 2010-01-11

Interest

French: Intérêt

The compensation allowed by law, or fixed by the parties, for the use or retention by one party of a sum of money or other property belonging to another. It may take the form of a lump sum payment or periodical payments at a rate percent.

Last updated: 2010-01-11

Interest rate implicit in the lease

French: Taux d'intérêt implicite du bail

The discount rate that, at the inception of the lease, causes the aggregate present value of: the minimum lease payments, excluding that portion of the payments representing executory costs to be paid by the lessor, and any profit on such costs, and the unguaranteed residual value accruing to the benefit of the lessor, to be equal to the fair value of the leased property to the lessor at the inception of the lease.

Last updated: 2010-01-11

Interim standard

French: Norme provisoire

A standard published to satisfy a clear and urgent need without passing through all the procedural and review processes required for Canadian General Standards Board standards or National Standards of Canada.

Last updated: 2010-01-11

International contract

French: Contrat international

Canadian Commercial Corporation (CCC). The contract between CCC and the foreign government, their agencies or international organizations.

Last updated: 2010-01-11

Invention

French: Invention

Patent law. The creation of something that did not exist before, by the exercise of a creative mind, possessing elements of novelty and utility and measure different from anything that preceded the same.

Last updated: 2010-01-11

Inventory

French: Stock

This refers to an itemized list of goods, showing the number and usually the value of the goods.

Last updated: 2010-01-11

Invitation for bids

French: Demande de soumissions

See bid solicitation.

Last updated: 2010-01-11

Invitation to tender (ITT)

French: Appel d'offres

A bid solicitation document used by PWGSCwhen the estimated value of the requirement exceeds $25,000 for goods and $40,000 for construction and services; two or more sources are considered capable of supplying the requirement; the requirement is adequately defined in all respects to permit the evaluation of tenders against clearly stated criteria; tenders can be submitted on a common pricing basis; and it is intended to accept the lowest-priced responsive tender without negotiations.

Last updated: 2020-05-04

Invoice

French: Facture

A billing document prepared by the seller setting out the details of goods sold or services rendered to the purchaser including quantity, price, terms of payment, etc.

Last updated: 2010-01-11

Item description

French: Description d'un article

The data necessary to establish the identity of an item of supply for materiel management purposes.

Last updated: 2010-01-11

J

Jobber

French: Revendeur

This refers to a middleman or dealer who purchases goods from manufacturers or importers for resale to retailers. They are also called dealer or wholesale merchant.

Last updated: 2010-01-11

Joint venture

French: Coentreprise

Association of two or more parties who combine their money, property, knowledge, expertise or other resources in a single joint business enterprise, sometimes referred as a consortium, to bid together on a requirement.

Last updated: 2010-01-11

L

Laid-down cost

French: Prix/coût de revient

The cost incurred by a contractor to acquire a specific product. This includes the invoice price (less trade discounts), charged to the contractor plus any applicable charges for incoming transportation, exchange, customs duties and brokerage charges, but excludes sales tax (i.e. Goods and Services Tax and the Harmonized Sales Tax).

Last updated: 2023-04-20

Late bid

French: Soumission en retard

A bid delivered to the specified bid receiving unit after the closing date and time stipulated in the bid solicitation.

Last updated: 2010-01-11

Lease

French: Bail

  1. The Chartered Professional Accountants (CPA) Canada. This refers to the conveyance, by a lessor to a lessee, of the right to use a tangible asset, usually for a specified period of time in return for rent.
  2. Capital lease. A lease that, from the point of view of the lessee, transfers substantially all the benefits and risks associated with ownership of the leased property from the lessor to the lessee. Typically, a lessee would record the underlying asset (property) as though it owns/purchased the asset.
  3. Operating lease. This refers to a lease in which the lessor does not transfer substantially all the benefits and risks associated with ownership of the leased property.

Last updated: 2023-04-20

Letter of intent

French: Lettre d'intention

A commitment to award a contract to a designated contractor. It may be used to authorize commencement of the work before the award of a contract, in those cases where the contract provisions require time-consuming negotiations, and the timely delivery of goods or services would be jeopardized by waiting for the award of the contract. A letter of intent is issued subsequent to approval of those terms and conditions, which have been already agreed to between Canada and the contractor, but before obtaining approval of all the terms and conditions of the proposed contract.

Last updated: 2010-01-11

Letter of interest

French: Lettre d'intérêt

A letter of interest or Request for Information is used when the buyer is interested in receiving feedback from suppliers and may re-open or re-issue an opportunity as an open tender at a later day.

Last updated: 2010-01-11

Level 1 procurement

French: Achat de niveau 1

Level 1 procurement has the characteristics of clarity and completeness. The requirement is known and identifiable, and evaluation methods are straightforward and do not require subjective judgement. The methods for soliciting bids and contracting are pre-determined and set out. There is little need for analysis or speculation. There is an absence of change with the procurement process. Contract administration is predictable and established

Last updated: 2014-09-25

Level 2 procurement

French: Achat de niveau 2

Level 2 procurement has the characteristics of judgment, review, and assessment. The procurement is based on the process of finding a solution to a requirement using existing technology and processes. Evaluation methods have to be defined, require subjective judgement, and may use pre-established strategies. The procurement process is established and understood though it can be complicated (many details or factors). Contract administration is predictable and established.

Last updated: 2014-09-25

Level 3 procurement

French: Achat de niveau 3

Level 3 procurement has the characteristics of dealing with the unknown and requires creativity and ongoing development using new, or a combination of new and existing technology and processes. It is based on achieving a goal/target and driven by managing change/phases. Pre-established methods of supply may have to be modified and procurement strategies and evaluation methodologies may have to be researched or developed. The procurement may involve partnerships with clients, and control may be shared. Contract administration is detailed and extensive and may be unpredictable.

Last updated: 2014-09-25

Level 4 procurement

French: Achat de niveau 4

Level 4 procurement involves enterprise-wide transformations (across the federal government). It has the characteristics of dealing with the unknown and a high level of uncertainty and change. The procurement may involve partnerships with clients and multiple stakeholders within various federal government departments, where decision-making is shared. Contract administration is detailed and extensive and its success is unpredictable.

Last updated: 2014-09-25

Level 5 procurement

French: Achat de niveau 5

Level 5 procurement involves public transformations affecting the public domain. It has the characteristics of dealing with the unknown and a high level of uncertainty and change. The procurement may involve partnerships with clients, multiple stakeholders (internal and external to the federal government) and elected officials, to reshape public policy or introduce new public policies. Decision-making is shared. Its ultimate success is determined by the public at large.

Last updated: 2014-09-25

Liability

French: Responsabilité

  1. A broad legal term. In general, a debt owed. The condition of being actually or potentially subject to an obligation; a condition of being responsible for a possible or actual loss, penalty, evil, expense or burden; a condition that creates a duty to perform an act immediately or in the future.
  2. Primary liability. This refers to a liability for which a person is directly responsible.
  3. Secondary liability. This refers to a liability of a contingent nature such as the liability of a guarantor. A guarantor's liability does not arise until the principal debtor has failed to pay the creditor.

Last updated: 2010-01-11

License

French: Licence

A grant of permission – a power or authority given to another to do some lawful act.

Last updated: 2010-01-11

License agreement

French: Contrat de licence

A contract by which permission is given by the owner of a right to another, for the use of that right, free from legal recourse.

Last updated: 2010-01-11

Lien

French: Privilège

A claim, encumbrance, or charge on property for payment of some debt, obligation or duty. Qualified right of property which a creditor (like a bank) has in or over specific property of his debtor, as security for the debt or charge or for performance of some act.

Last updated: 2010-01-11

Limitation of expenditure

French: Limitation des dépenses

In the context of a contract, with or without task authorizations, the limitation of expenditure is the maximum amount of money that may be paid to a contractor for the prescribed work. The limitation of expenditure is normally used in service requirements where the level of effort cannot be accurately estimated at the outset. At the client’s request, the contracting authority will amend the contract to provide additional funds, or request the contractor to complete the work to the extent that the allocated funding permits.

In the context of a standing offer, a limitation of expenditure is a financial limit on the total expenditures of call-ups against a standing offer. The offeror must not perform any work or services or supply any goods in response to call-ups which would cause the total cost to exceed the limitation of expenditure, unless an increase to the limitation of expenditure is authorized by the standing offer authority. The inclusion of a limitation of expenditure in a standing offer is optional.

Last updated: 2017-08-17

Liquidated damages

French: Dommages-intérêts fixés en argent

A specific sum of money expressly stipulated by the parties in a contract as the amount of damages to be recovered by either party for a breach of the agreement by the other. It must be a genuine pre-estimate of the loss that will be caused to one party if another party breaks the contract. It constitutes the amount, no more and no less, that the plaintiff is entitled to recover in the event of breach without being required to prove actual damages.

Last updated: 2010-01-11

Listing program

French: Programme de listage

The entire process by which a specific product/service/supplier is designated as conforming to the requirements of standards or specifications, including those for quality assurance, and identified for subsequent procurement on a qualified products list. See Qualified Products List, Certified Products List.

Last updated: 2010-01-11

Loan

French: Prêt

Anything lent or given to another on condition that it be returned or repaid, either with or without interest.

Last updated: 2010-01-11

Loan agreement

French: Convention de prêt

An agreement pursuant to which some Department of National Defence equipment is loaned by PWGSC to a contractor.

Last updated: 2010-01-11

Low dollar value

French: Faible valeur

Requirements that are generally less complex and a low risk, with an estimated total value below $25,000 for goods and $40,000 for construction and services, including all applicable taxes.

Last updated: 2020-05-04

Lump sum payment

French: Paiement forfaitaire

The price agreed upon between the vendor and the purchaser for a group of items without breakdown of individual values; a lot price.

Last updated: 2010-01-11

M

Machine tool

French: Machine-outil

This refers to a class of production tools basic to many manufacturing industries; power-driven, precision metal-working machines, which remove metal in the form of chips by cutting or grinding, such as lathes, drill presses, boring mills, planers, milling machines, shapers and grinders.

Last updated: 2010-01-11

Maintenance

French: Maintenance

  1. Materiel. All action to retain materiel in a serviceable condition or to restore it to serviceable conditions. It includes inspection, testing, servicing, classification, as to serviceability, repairs, rebuilding and reclamation.
  2. The cost of keeping a property in efficient working condition.

Last updated: 2010-01-11

Mandatory standing offers

French: Offre à commande obligatoire

If PWGSC has issued a standing offer that covers the client's specific requirement, departments must use that standing offer for its acquisition. For a complete list of existing standing offers, consult the Standing Offers and Supply Arrangements Application.

Last updated: 2018-11-08

Manufacturing

French: Fabrication

The production of articles for use from raw or prepared materials by giving to these materials new form, qualities and properties or combinations thereof whether by hand or machinery.

Last updated: 2010-01-11

Market based pricing

French: Prix sur la base du marché

Price assessed and established based on the market when there exists sufficient competition to obtain more than one competitive bid and price comparison.

Last updated: 2023-04-20

Market price

French: Prix du marché

  1. The price at which a seller is ready and willing to sell and a buyer is ready and willing to buy in the ordinary course of trade. It is the actual price at which a given commodity is currently sold or has recently been sold in the open market, that is, not a forced sale. See fair market value and /en/how-procurement-works/policies-and-guidelines/supply-manual/glossary#fair-market-value/en/how-procurement-works/policies-and-guidelines/supply-manual/glossary#market-value.
  2. Accounting. The prevailing or last quoted price under conditions applicable in the circumstances. Net realizable value.

Last updated: 2010-01-11

Market value

French: Valeur marchande

The price, which a product or property might be expected to bring, if offered for sale in a fair market; that is, a market that is not temporarily prone to fluctuations. It is the price that would be fixed by negotiation and mutual agreement between a willing buyer and a supplier who is willing but not compelled to sell.

Last updated: 2010-01-11

Mark-up

French: Majoration

  1. Defence Production Act. The amount added to cost in determining the selling price to cover overhead and profit.
  2. The difference between the contractor's laid-down cost for a product and its resale price to Canada, Goods and Services Tax and/or the Harmonized Sales Tax excluded. Mark-up includes applicable purchasing expense, internal handling and general and administrative expenses, plus profit.
  3. The amount added to the cost of merchandise to arrive at the price at which it will be offered for sale. This refers to an addition to a previously established selling price of goods for sale.

Last updated: 2010-01-11

Materiel and services to military specifications

French: Matériel et services assujettis aux spécifications militaires

  1. Includes all materiel and services, including repair and overhaul, as well as research and development, for which a military or other Department of National Defence (DND) specification or requirement is included in procurement documentation. Also included in this category are materiel and services that are not covered by DND or military specifications, but are of a significant concern to DND as to the allocation of responsibilities annotated under this heading.
  2. Includes the range of items covered by commercial or the Canadian General Standards Board standards and specifications. It also includes those items or services, which are not specifically identified by DND, in its procurement documentation, as requiring special military or other DND specifications or requirements.

Last updated: 2010-01-11

Material and services to non-military specifications

French: Matériel et services assujettis aux spécifications non militaires

Includes the range of items covered by commercial or Canadian General Standards Board standards and specifications. It also includes those items or services, which are not specifically identified by Department of National Defence (DND), in its procurement documentation, as requiring special military or other DND specifications or requirements.

Last updated: 2010-01-11

Milestone payment

French: Paiement d'étape

A method of making a progress payment, which relates to a measurable and/or defined item or work package for which a price can be assigned with a good probability that such assigned price will turn out to be within reasonable limits of predictive accuracy for the value of the work.

Last updated: 2010-01-11

Minister

French: Ministre

The Minister of Public Works and Government Services.

Last updated: 2010-01-11

Misrepresentation

French: Fausse déclaration

Any manifestation by words or other conduct by one person to another that, under the circumstances, amounts to an assertion not in accordance with the facts. An untrue statement of fact, an incorrect or false representation. It can be either fraudulent or innocent. It is fraudulent when it is made knowing that the same is false or without belief in its truth. A party induced by fraudulent misrepresentation to enter into a contract may repudiate the contract. Where a misrepresentation is an innocent one, it may be a ground for refusing specific performance to the party who made the misrepresentation and may also be a ground for rescission of the contract. The misrepresentation should, however, be a material one on which the other party relied.

Last updated: 2010-01-11

Mobile repair party

French: Service mobile de réparation

An individual, or group of individuals performing work away from the contractor's plant, generally at the client’s location(s).

Last updated: 2023-04-20

Modification

French: Modification

Equipment. An engineered alteration to an item of supply, which changes the design characteristics or capabilities of the end item, major or subassembly component part, or accessory. Normally a modification is made after an item of equipment is delivered, whereas a design change is made, before delivery during production.

Last updated: 2010-01-11

Monopoly

French: Monopole

The ownership or control of so large a part of the market supply or output of a given commodity as to unduly prevent or lessen competition in that commodity.

Last updated: 2010-01-11

French: Consentement mutuel

A meeting of the minds on a specific subject, and a manifestation of intent of the parties to do or refrain from doing some specific act or acts.

Last updated: 2010-01-11

N

National Individual Standing Offer (NISO)

French: Offre à commandes individuelle et nationale (OCIN)

A standing offer issued for the use of a specific department or agency throughout Canada. NISOs are arranged by PWGSC on receipt of a funded requisition.

Last updated: 2010-01-11

National Master Standing Offer (NMSO)

French: Offre à commandes principale et nationale (OCPN)

A standing offer issued for the use of many departments or agencies throughout Canada. NMSOs are arranged by PWGSCwithout any requisitions from customer departments or agencies.

Last updated: 2010-01-11

NATO Stock Number (NSN)

French: Numéro de nomenclature de l'OTAN

A 13-digit number; for example, 5305-21-111-3333 broken down as follows:

  1. Digits 1-4; for example, 5305, the NATO supply classification, consisting of Group 53, which covers all items of hardware, followed by the class within the group 05 (screws), 06 (bolts), etc., the whole being known as the supply class.
  2. Digits 5-6; for example, -21-, the NATO code for the National Codification Bureau that assigned the stock number; for example, 00 U.S.A., 21 Canada, 14 France, 99 U.K., etc.
  3. Digits 7-13; for example, 111-3333, the National Item Identification Number; non-significant, but sequentially assigned by each National Codification Bureau to a unique item of supply.
  4. Digits 5-13; for example, 21-111-3333, the NATO Item Identification Number, including both the NATO code of the National Codification Bureau and its item identification number. The last 9 digits of the number remain with the item throughout its life, even though the NATO supply classification may change as a result of reclassification and consequent conversion of stock numbers; for example, 5305-21- 111-2222 converted to 2805-21-111-2222.

Last updated: 2010-01-11

Need-to-know

French: Besoin de connaître

The need for someone to access and know information in order to perform his/her duties.

Last updated: 2010-01-11

Negotiation

French: Négociation

The process of reaching agreement between two or more parties on the terms and conditions of a contract.

Last updated: 2010-01-11

Net zero

French: Carboneutralité

The term “net zero” refers to an economy which either emits no greenhouse gas emissions or offsets its emissions, for example, through actions such as tree planting or employing technologies that can capture carbon before it is released into the air.

Last updated: 2023-04-11

Net-Zero Challenge

French: Défi carboneutre

In order to support businesses in meeting the Government of Canada’s net zero by 2050 target, on August 26th 2022, Canada launched the Net-Zero Challenge. The Net-Zero Challenge is a voluntary initiative that encourages businesses to develop and implement credible and effective plans to transition their facilities and operations to net zero emissions by 2050.

Last updated: 2023-04-11

Non-compliance

French: Non-conformité

Failure to comply with a requirement.

Last updated: 2010-01-11

No substitute

French: Aucun produit de remplacement

Description of a product by brand name or model number or by using a restrictive specification, with the provision that a substitute product is not acceptable.

Last updated: 2010-01-11

Non-resident contractor

French: Entrepreneur non résident

An individual not engaged in regular and continuous employment in Canada and who does not maintain a permanent residence or office in Canada. This also refers to a partnership or a corporation not maintaining a permanent office in Canada.

Last updated: 2010-01-11

Notice of Proposed Procurement (NPP)

French: Avis de projet de marché (APM)

A notice of an opportunity to participate in procurement. The NPP is published on the Government Electronic Tendering Service (see the Buyandsell.gc.ca Tenders minisite) and includes general information, such as a description of the requirement, and how solicitation documents can be obtained.

Last updated: 2013-06-01

O

Offer

French: Offre

A proposal made by one party to another to do something, usually accompanied by an expected acceptance, counter-offer, return promise or act. The offer creates a power of acceptance permitting the offeree by accepting the offer to transform the offeror's promise into a contractual obligation. An offer is an essential ingredient for the formation of a contract.

Last updated: 2010-01-11

Offeror

French: Offrant

The party that makes the offer.

Last updated: 2010-01-11

Office of Greening Government Operations (OGGO)

French: Bureau de l'écologisation des opérations gouvernementales (BEOG)

The Office of Greening Government Operations (OGGO) was created in April 2005, within Public Works and Government Services Canada (PWGSC). OGGO's mandate is to accelerate the greening of the government's operations by working closely with other federal departments, particularly Treasury Board Secretariat and Environment Canada.

Last updated: 2010-01-11

Operating cost

French: Coût d'exploitation

The cost of operating, maintaining and repairing a product throughout its useful life, less its estimated residual value at the time of retirement.

Last updated: 2010-01-11

Operating lease

French: Bail d'exploitation

The lessor does not transfer substantially all the benefits and risks associated with ownership of the leased property.

Last updated: 2023-04-20

Order

French: Arrêté

Defence Production Act. A general or specific order, requirement, direction or prescription in writing made or issued under this Act or a Regulation.

Last updated: 2010-01-11

Order-in-council

French: Décret

A decision, instruction, order, proclamation, etc. issued under the authority of the Governor in Council.

Last updated: 2010-01-11

Organization

French: Organisation

From a security perspective, an organization is any institution, other than a Canadian government department, agency or crown corporation, holding or referring to a security clearance. The majority are commercial corporations, but other institutions are also included, such as university faculties, partnerships, consultants, and other levels of government and their agencies.

Last updated: 2010-01-11

Overclaim

French: Réclamation en trop

A claim by the supplier for costs and profits in excess of the audited final amount, as determined by Audit and Services Canada and/or sector/region verification.

Last updated: 2010-01-11

Overhead costs

French: Frais généraux

  1. Indirect expenses or burden; one of many terms given to expenses, which are incurred in the production of a commodity or the rendering of a service, but which cannot conveniently be measured by unit of production or service. These expenses are sometimes classified as manufacturing overhead, selling and distributive overhead, and general and administrative overhead.
  2. Service contracts. Indirect costs associated with the operation of the contractor's business and includes, unless otherwise stated, in a percentage factor that is applied to payroll cost. Salary bonuses may be included as overhead costs, unless they are paid under profit-sharing schemes, in which case they will be treated as a distribution of profit.

Last updated: 2010-01-11

Overpayment

French: Paiement en trop

A payment by Canada in excess of the audited final amount as determined by Audit Services Canada and/or sector/region verification.

Last updated: 2010-01-11

Overtime

French: Heures supplémentaires

Time worked by a contractor's employee in excess of the employee's normal working day or working week.

Last updated: 2010-01-11

Overtime premium

French: Prime d'heures supplémentaires

The difference between the employee's regular rate of pay and the higher rate paid for overtime.

Last updated: 2010-01-11

Overtime premium costs

French: Frais de rémunération des heures supplémentaires

The amount of overtime premium and any profit thereon.

Last updated: 2010-01-11

P

Packaging

French: emballage

Product to be used for the containment, protection, handling, delivery, storage, transport and presentation of goods.

Last updated: 2023-09-07

Paris Agreement

French: Accord de Paris

The Paris Agreement is a legally binding international treaty on climate change. It was adopted by 196 Parties at the Conference of the Parties (COP) 21 in Paris, on 12 December 2015 and entered into force on 4 November 2016. Its goal is to limit global warming to well below 2, preferably to 1.5 degrees Celsius, compared to pre-industrial levels.

Last updated: 2023-04-11

Part file

French: Dossier partiel

A main or extract file is subdivided into part files when more than one solicitation is issued, resulting in separate contracts. Each part file may only have one active solicitation in progress. Part files must be created when more than one solicitation is required under a main or extract file.

Last updated: 2010-01-11

Patent

French: Brevet

A grant of right to exclude others from making, using or selling one's invention and includes the right to license others to make, use or sell it. A grant from the government conveying and securing for an inventor the exclusive right to make, use and sell an invention for a specific number of years.

Last updated: 2010-01-11

Payment bond

French: Cautionnement de paiement

  1. A bond given by a contractor to guarantee the payment for labour to be provided or materials to be supplied in connection with a contract awarded to that contractor.
  2. A bond given to ensure that the subcontractor, providing labour or supplying materials to a contractor, will be paid their proper charges up to the value of the bond.
  3. A type of surety bond.

Last updated: 2010-01-11

Payroll costs

French: Coût de rémunération

Direct salaries paid plus costs associated with direct salaries; for example, provision for statutory holidays, vacations with pay, the contractor's contribution for unemployment insurance and workmen's compensation, health and medical insurance, group life insurance and pension.

Last updated: 2010-01-11

Per diem rates

French: Honoraires quotidiens

  1. A latin phrase meaning “by the day”.
  2. Service contracts. A time rate whereby the contractor is paid a fixed rate inclusive of payroll and overhead costs and profit, for each normal working day as defined in the contract.

Last updated: 2010-01-11

Performance bond

French: Cautionnement d'exécution

Bond given to guarantee the performance or completion of a contract in accordance with its terms and conditions.

Last updated: 2010-01-11

Performance (in the context of a contract)

French: Exécution (dans le cadre d'un contrat)

The fulfillment or accomplishment of that which is required by a contract or under a condition.

Last updated: 2010-01-11

Performance (in the context of advance payments)

French: Exécution (dans le cadre de paiements anticipés)

The funds received will be used solely for the purpose of the contract;

  1. The amount of the payment is ascertained or ascertainable under the contract;
  2. The contractor is not in default of its obligations under the contract; and
  3. The payment is related to an identifiable part of the contractual undertakings.

Last updated: 2010-01-11

Performance (in the context of progress payments)

French: Exécution (dans le cadre de paiements progressifs)

  1. All authorizations required under the contract have been obtained; the claim is consistent with the progress of the work and is in accordance with the contract.
  2. Indirect costs have been paid for or accrued in the accounts.
  3. Direct materials and work under subcontract have been received, accepted and either paid for or accrued in the accounts, following receipt of invoice from the contractor/subcontractor, and have been or will be used exclusively for the purpose of the contract.
  4. All direct labour costs have been paid for or accrued in the accounts and all such costs were incurred exclusively for the purpose of the contract.
  5. All other direct costs have been paid for or accrued in the accounts, following receipt of applicable invoice or expense voucher and that all such costs were incurred exclusively for the purpose of the contract.
  6. No liens, encumbrances, charges or other claims exist against the work, except those which may arise by operation of law, such as a lien in the nature of an unpaid contractor's lien and in respect of which an progress payment and/or advance payment has been or will be made by Canada.

Last updated: 2010-01-11

Personnel security clearance

French: Attestation de sécurité du personnel

The security screening of persons who are likely to have access, on a need-to-know basis, to classified information, assets or controlled areas in order to provide a clearance for undertaking the work.

Last updated: 2010-01-11

Personnel security screening

French: Enquête de sécurité sur le personnel

The process of conducting a security screening activity and evaluating an individual's reliability and/or loyalty to Canada in support of a decision to grant, grant with a waiver, deny, or revoke a reliability status, security clearance or site access clearance, in accordance with the TBS Standard on Security Screening. This assessment is required for contract positions where the personnel require unsupervised access to Government of Canada protected and classified information, assets, facilities or information technology systems.

  • Security screening for reliability status appraises an individual's honesty and whether they can be trusted to protect the employer's interests. Security screening for reliability status can include enhanced inquiries, verifications and assessments when duties involve or directly support security and intelligence functions.
  • Security screening for a security clearance appraises an individual's loyalty to Canada and their reliability as it relates to that loyalty.

Last updated: 2022-05-02

Physical security

French: Sécurité physique

The use of physical safeguards to prevent and delay unauthorized access to assets, detect attempted and actual unauthorized access and activate appropriate responses.

Last updated: 2010-01-11

Point rating

French: Cotation numérique

An evaluation procedure using values assigned to criteria to rate suppliers.

Last updated: 2010-01-11

Policy on Green Procurement

French: Politique d'achats écologiques

A policy designed to ensure that the government cost effectively procures, operates and disposes of its assets in a manner that protects the environment and supports sustainable development objectives.

Last updated: 2010-01-11

Price

French: Prix

  1. The consideration given in exchange or sale of anything.
  2. Defence Production Act. Includes rate or charge for any service.

Last updated: 2010-01-11

Price and availability (P&A) enquiry

French: Demande de prix et disponibilité

A request to the trade for information, which is needed by PWGSC or a client for program planning or budgetary purposes. P&A enquiries must clearly indicate that the request is not a bid solicitation.

Last updated: 2010-01-11

Pricing principles

French: Principes d’établissement des prix

Principles applied to all scenarios in which price negotiations are required and involve the establishment of a cost-base, profit levels and price.

Last updated: 2023-04-20

Pricing strategy

French: Stratégie d’établissement

Method or plan used for the assessment of pricing considerations, options and potential risks.

Last updated: 2023-04-20

Procurement

French: Approvisionnement

The process of obtaining goods and services that includes the determination of requirements and acquisition from a supply system or by purchase from the trade. The procurement process has four phases:

  1. Pre-contractual phase. Includes activities related to requirement definition and procurement planning.
  2. Contracting phase. Includes all activities from bid solicitation to contract award.
  3. Contract administration phase. Includes activities such as progress monitoring, delivery follow-up, payment action, etc.
  4. Post-contractual phase includes file final action (for example, client satisfaction, contractor agreement to final claim, final contract amendment, completion of financial audits, proof of delivery, return of performance bonds) and close out (for example, completeness and accuracy of file documentation and adherence to file presentation standards).

Last updated: 2010-01-11

Procurement Assistance Canada (PAC)

French: Soutien en approvisionnement Canada (SAC)

PAC supports the participation of smaller and diverse businesses in the federal government procurement process by:

  1. working with a cross-country network of partner organizations that support smaller and diverse supplier communities;
  2. helping smaller and diverse businesses become aware of the opportunity to participate in federal procurement, learn how to find opportunities, and navigate the government procurement system;
  3. working to understand barriers and impacts to small and diverse business communities by collecting data about business communities to inform departmental policies, programs and services;
  4. identifying barriers and making recommendations to improve specific procurements, as well as the procurement process as a whole;
  5. providing advice to PWGSC procurement specialists on strategies to reduce barriers in procurement and industry engagement activities to support inclusive procurement opportunities;
  6. acting as a central point of contact for over 100 federal client departments, providing support and guidance for their procurement needs;
  7. engaging with provinces, territories and international partners to facilitate the sharing of best practices and potential collaboration on procurement modernization;
  8. maintaining the Buyandsell.gc.ca website that provides information on tendering opportunities, procurement policies, as well as procurement related news and events.

Last updated: 2021-12-02

Procurement Business Number (PBN)

French: Numéro d'entreprise – approvisionnement (NEA)

A unique identifier that is assigned to each supplier when they register in the Supplier Registration Information service, on the Buying and Selling Web site. It is based on the nine-digit Business Number that Canada Revenue Agency assigns to a supplier for tax matters related to business in Canada.

Last updated: 2010-08-16

Procurement Ombudsman

French: Ombudsman de l'approvisionnement

An independent organization with a government-wide mandate, which is defined in the Federal Accountability Act. Its overall objective is to ensure the fairness, openness and transparency of government procurement.

Last updated: 2010-01-11

Procurement Strategy for Indigenous Business (PSIB)

French: Stratégie d'approvisionnement auprès des entreprises autochtones (SAEA)

Consists of measures intended to increase the number of Indigenous firms competing for and winning federal contracts. Particularly, if it includes measures to better inform Indigenous businesses about government procurement needs and to better inform government procurement officers about the capacity of Indigenous businesses. The strategy is consistent with the government's general policy on procurement, which emphasizes competition and value for money.

Last updated: 2022-05-12

Product Quality Management (PQM)

French: Gestion de la qualité du produit

Process applied to ensure the required quality of goods and services. The Product Quality Management (PQM) refers to all considerations, which are undertaken within the procurement process, to provide clients with quality goods and services that conform to the stated requirements. Inherent to PQM are such actions as proper requirements definition; judicious sourcing, as applicable; thorough supplier evaluation; and the inclusion of proper quality related bid solicitation and contract clauses. The concept of PQM embodies quality assurance, quality control and inspection. See quality assurance, quality control, inspection, and quality.

Last updated: 2010-01-11

Production

French: Production

See manufacturing.

Last updated: 2010-01-11

Production assets

French: Biens de production

Covers special production tooling, special test equipment, Department of National Defence-loaned equipment, United States government property, and any other government property for which Public Works and Government Services Canada has been specifically or directly charged with assets management responsibility.

Last updated: 2010-01-11

Productivity

French: Productivité

The ratio of some output to some input. A measure of how well resources are combined and utilized to achieve a particular desirable result. Productivity ratios may be measured in one of the following three ways:

  1. Total Output. Total Input.
  2. Total Results Achieved. Total Resources Consumed.
  3. Effectiveness. Efficiency.

The concept of productivity recognizes the interplay between various factors in the workplace. The output or results achieved may be related to different inputs or resources in the form of various productivity ratios; for example, output per labour hour, output per unit of material (as in kilometers driven per liter of gas) or output per unit of capital. Each of these productivity ratios may be influenced by a combination of factors, such as quality and availability of materials, scale of operations, rate of capacity utilization, availability and throughput capacity of capital equipment, attitude and skill level of the work force, motivation and effectiveness of the management. The manner in which these factors interrelate will have a bearing on the resulting productivity ratio. Productivity improvements or gains are generally realized in terms of increased revenue or profit, better quality or performance, or lower prices.

Last updated: 2010-01-11

Product, Resource, Operating and Contingency (PROC)

French: Coût du PREI (produit, des ressources, d'exploitation et des imprévus)

The cost factors associated with the total product life cycle:

  1. Product costs. Costs paid for the supply of goods to a specified delivery point.
  2. Resource costs. The total government resource cost of acquiring, distributing and accounting for the goods.
  3. Operating costs. The costs of operating, maintaining and repairing the goods and the depreciation incurred.
  4. Contingency costs. Those costs incurred by not having the goods available when they are required. PROC analysis is used when best value for the money spent on the acquisition over its useful life is required.

Last updated: 2010-01-11

Profit

French: Profit

  1. Generaly the benefit or advantage in money or in money's worth.
  2. Income tax law. The surplus in the taxation period by which the receipts from a trade or business exceed the expenditures necessary for the purpose of earning those receipts.
  3. A general term for the excess of revenue, proceeds or selling price over related costs.
  4. Net income.

Last updated: 2010-01-11

Progress payment

French: Paiement progressif

A payment made by or on behalf of Canada under the contract after the performance of the part of the contract in respect of which the payment is made but before the performance of the whole contract.

Last updated: 2010-01-11

Proposal

French: Proposition

An offer, submitted in response to a request from a contracting authority, which constitutes a solution to the problem, requirement or objective in the request.

Last updated: 2010-01-11

Proprietary

French: Propriétaire

  1. Noun: a proprietor or owner, one who has the exclusive title to a thing; one who possesses or holds the title to a thing in his own right.
  2. Adjective: belonging to ownership; owned by a particular person; belonging or pertaining to a proprietor; relating to a certain owner or proprietor.

Last updated: 2010-01-11

Protected information

French: Renseignements de nature protégée

Information related to other than the national interest that may qualify for an exemption or exclusion under the Access to Information Actor Privacy Act.

Last updated: 2010-01-11

Prototype

French: Prototype

Includes any item designated as such in the contract, including models, patterns and samples.

Last updated: 2010-01-11

Public notice

French: Avis public

An announcement on an approved electronic information service, in one or more newspapers, or by means of some other accepted media.

Last updated: 2010-01-11

Public property

French: Biens publics

Financial Administration Act. All property, other than money, belonging to His Majesty in right of Canada.

Last updated: 2022-12-01

Purchase description

French: Description d'achat

A statement of requirements to identify and describe a particular product or service, but which may be less detailed than a specification. The description includes sufficient data to enable the supply and evaluation of the item either by means of reference to a specification or standard, or by the inclusion of critical performance data.

Last updated: 2010-01-11

Purchase order

French: Bon de commande

A purchaser's written offer to a supplier, formally stating all terms and conditions of a proposed transaction.

Last updated: 2010-01-11

Purchasing

French: Achat

The buying process within the procurement cycle.

Last updated: 2010-01-11

Q

Qualification program

French: Programme d'homologation

The entire process by which products are obtained from suppliers, examined and tested and then identified on a qualified products list. The qualification process includes an evaluation of the manufacturer's facilities and capabilities to meet requirements on a continuing basis.

Last updated: 2010-01-11

Qualified product

French: Produit homologué

A product manufactured under controlled and substantially unchanged conditions, meeting the requirements and procedures to enable that product to be listed in the applicable qualified products list.

Last updated: 2010-01-11

Qualified Products List (QPL)

French: Liste des produits homologués (LPH)

A listing of products qualified as conforming to the requirements of standards or specifications by the appropriate panel. A QPL identifies the qualifying authority and includes the appropriate product identification and reference data together with the name of the supplier of the qualified product.

Last updated: 2010-01-11

Qualifying authority

French: Autorité d'homologation

The agency or organization responsible for the maintenance of a listing program, including the development and implementation of policies and procedures, and is responsible for the accuracy and integrity of listings.

Last updated: 2010-01-11

Quality

French: Qualité

The totality of features and characteristics of a product or service that bear on its ability to satisfy a given need.

Last updated: 2010-01-11

Quality assurance

French: Assurance de la qualité

A system of activities whose purpose is to provide assurance that the quality control is in fact being done effectively. For a specific product or service, this involves verification, audits and the evaluation of the quality factors that affect the specification, production, inspection and distribution. See government quality assurance.

Last updated: 2010-01-11

Quality audit

French: Vérification de la qualité

The monitoring of quality levels at any stage to provide information for management.

Last updated: 2010-01-11

Quality control

French: Contrôle de la qualité

This refers to a range of activities, to ensure and verify that the specific quality of the product or service has been met.

Last updated: 2010-01-11

Quality of design

French: Qualité technique

The value inherent in the design; a measure of the excellence of the design in relation to the client's requirements.

Last updated: 2010-01-11

Quotation

French: Présentation de prix

A bid submitted in response to a Request for Quotation from a contracting authority.

Last updated: 2010-01-11

R

Reasonable

French: Raisonnable

What is fair, just, suitable and proper in the given circumstances of a case, that which is fit and appropriate to the end in view, and that which is according to reason, not immoderate or excessive.

Last updated: 2010-01-11

Receiver manager

French: Séquestre-gérant

See trustee in bankruptcy.

Last updated: 2010-01-11

Receivership

French: Mise sous séquestre

Legal or equitable proceeding in which a receiver is appointed for an insolvent corporation, partnership or individual. The state or condition of a corporation, partnership or individual over whom a receiver has been appointed for protection of its assets and for ultimate sale and distribution to creditors.

Last updated: 2010-01-11

Recyclable

French: recyclable

Capable of being diverted from the waste stream through available processes and programs and can be collected, sorted, processed and returned to use in the form of raw materials or products.

Last updated: 2023-09-07

Recyclable packaging

French: emballage recyclable

Packaging or a packaging component is recyclable if its successful post consumer collection, sorting, and recycling is proven to work in practice and at scale. This means that there is an existing (collection, sorting and recycling) system in place that actually recycles the packaging and that covers significant and relevant geographical areas as measured by population size.

Last updated: 2023-09-07

Recycled content (post-consumer)

French: contenu recyclé (post-consommation)

Proportion, by mass, of recycled material in a product or packaging. Post-consumer (recycled) material: Material generated by households or by commercial, industrial and institutional facilities in their role as end-users of the product which can no longer be used for its intended purpose. This includes returns of material from the distribution chain.

Last updated: 2023-09-11

Regional Individual Standing Offer (RISO)

French: Offre à commandes individuelle et régionale (OCIR)

A standing offer issued for the use of a specific department or agency within a specific geographic area. RISOs are arranged by PWGSCon receipt of a funded requisition.

Last updated: 2010-01-11

Regional Master Standing Offer (RMSO)

French: Offre à commandes principale et régionale (OCPR)

A standing offer issued for the use of many departments or agencies within a specific geographic area. RMSOs are arranged by PWGSCwithout any requisitions from customer departments or agencies.

Last updated: 2010-01-11

Registered quality systems list

French: Liste des systèmes d'assurance de la qualité inscrits

Listing of suppliers that have had their quality system audited by an approved auditor, against the appropriate quality standard, are found to meet all of the criteria of the standard and are registered by the applicable certifying agency.

Last updated: 2010-01-11

Reliability

French: Fiabilité

The measures expressed of the ability of a product to function successfully when required, for the period required, in the specified environment.

Last updated: 2010-01-11

Reliability status

French: Cote de fiabilité

Indicates successful completion of a reliability check; allows regular access to government assets and, with a need-to-know, to protected information.

Last updated: 2009-12-15

Remedy

French: Recours

A right given to a party by law or by contract which that may exercise upon a default by the other contracting party, or upon the commission of a wrong by another party. It means any remedial right to which an aggrieved party is entitled with or without resort to a tribunal.

Last updated: 2010-01-11

Remission

French: Remise

  1. Exemption from payment of customs duties and excise taxes, which are ordinarily payable on goods or materiel imported into Canada.
  2. A partial or total refund or the non-payment of taxes, which otherwise would be payable and authorized by order-in-council.

Last updated: 2010-01-11

Renegotiation

French: Révision du contrat

A re-determination of agreed contract or pricing terms, due to changed requirements or conditions, or in accordance with a previous agreement. Some contracts provide for renegotiation at a stated time or under stated conditions.

Last updated: 2010-01-11

Repair

French: Réparation

To restore (something damaged or broken) to good condition or working order.

Last updated: 2010-01-11

Repair and overhaul

French: Réparation et révision

The repair of an item of equipment to return it to serviceable condition; overhaul may or may not be coincident with repair. Repair normally involves the correction of specific defects only, whereas overhaul will entail replacement of either worn and damaged parts, or parts for which service life has expired. Overhaul is normally affected only after expiry of service life due to hours of use or elapsed time.

Last updated: 2010-01-11

Representation

French: Présentation

  1. General. A statement made expressly or by implication such as by conduct.
  2. Contract. In the law of contracts, it is a statement made by one of the parties of the contract to the other, before or at the time of entering into the contract, or of some matter relating to the contract.

Last updated: 2010-01-11

Request for Information (RFI)

French: Demande de renseignements

An RFI or Letter of Interest is not open for bidding. The buyer is interested in receiving feedback from suppliers and may re-open or re-issue an opportunity as an open tender at a later day. RFIs may include attached documents.

Last updated: 2010-01-11

Request for Proposal (RFP)

French: Demande de propositions

A form of bid solicitation used where the selection of a supplier cannot be made solely on the basis of the lowest price. An RFP is used to procure the most cost-effective solution based upon evaluation criteria identified in the RFP. See 4.10.15.

Last updated: 2014-09-25

Request for Quotation (RFQ)

French: Demande de prix

Solicitation document used to solicit bids for low dollar value requirements below $25,000 for goods and $40,000 for construction and services, including all applicable taxes, from one or more suppliers. It is a request to bidders, which is evaluated with the objective of accepting the lowest-priced responsive quotation. See 4.10.1.

Last updated: 2020-05-04

Request for Standing Offer (RFSO)

French: Demande d'offres à commandes (DOC)

A solicitation document used to solicit standing offers. It must clearly state the requirement, the evaluation method and selection criteria, the call-up procedures, the ranking methodologies, whenever applicable, to be used for making call-ups against the authorized standing offer(s), and all terms and conditions applicable to the contract that is brought into effect, as a result of any call-up.

Last updated: 2010-01-11

Request for Supply Arrangement (RFSA)

French: Demande d’arrangement en matière d’approvisionnement (DAMA)

A procurement tool established by PWGSC for use by clients that allows buyers to solicit bids from a pool of pre-qualified suppliers for specific requirements. The intent is to establish a framework to permit expeditious processing of individual bid solicitations which result in legally binding contracts for the goods and services described in those bid solicitations.

Last updated: 2013-04-25

Requisition

French: Demande

A request to obtain materiel or services and authority to commit funds to cover the purchase.

Last updated: 2010-01-11

Rescission

French: Annulation

Contract. To abrogate, annul, void or cancel a contract. The right of rescission is the right to cancel (rescind) a contract upon the occurrence of certain kinds of default by the other contracting party (like misrepresentation, duress, undue influence). To declare a contract void in its inception and to put an end to it as though it never were. It is limited to contracts where it is possible to rescind the contract and substantially to restore all parties to their respective positions before the contract was entered into.

Last updated: 2010-01-11

Responsibility

French: Responsabilité

The state of being answerable for an obligation and includes judgment, skill, ability and capacity. The obligation to answer for an act done, and to repair or otherwise make restitution for any injury it may have caused.

Last updated: 2010-01-11

Responsive bid

French: Soumission recevable

  1. A bid, tender, proposal or quotation that meets all the mandatory requirements stipulated in the solicitation document.
  2. Synonymous with valid bid.

Last updated: 2010-01-11

Returnable (to the vendor or supplier)

French: consigné (à renvoyer au vendeur ou au fournisseur)

There is an existing and functional program in place for the packaging to be returned to the vendor or supplier to reuse, refill, or recycle at no additional cost to the client.

Last updated: 2023-09-07

Reusable (by the client)

French: réutilisable (par le client)

Designed to be used multiple times for the same purpose without losing its original functionality, physical capability or quality. A characteristic of a product or packaging that has been conceived and designed to accomplish within its life cycle a certain number of trips, rotations or uses for the same purpose for which it was conceived.

Last updated: 2023-09-07

Royalties

French: Redevances

Usage-based payments made by one party (the licensee) to another (the licensor) for ongoing use of an asset, for example an intellectual property right.

Last updated: 2010-01-11

S

Sale

French: Vente

  1. A transfer of a property from one person to another for a price in money. A sale of goods is different from an exchange or barter where no funds are involved. In order to determine at what point property in the goods sold rests in the purchaser, the terms of the contract have to be considered to ascertain in whom the property is vested. The property may pass at once or at a future time contingent on the fulfillment of some condition.
  2. Includes consignment or other disposition of materials and the supplying of any service.

Last updated: 2010-01-11

Salvage

French: Récupération

Accounting. That portion of the residual value of an asset representing the value of parts reclaimed for future use after retirement of the asset.

Last updated: 2010-01-11

Sample

French: Échantillon

  1. General. A relatively small quantity of material, or an individual object, where the quantity of the mass, group, bulk, etc. that it represents, may be inferred. A small quantity presented or sold to buyers as a specimen of goods offered for sale.
  2. When goods are sold by sample, three conditions are implied in the sale:
    1. the bulk must correspond with the sample in quality;
    2. the buyer must have a reasonable opportunity of comparing the bulk with the sample;
    3. the goods must be free from any defect rendering them unmerchantable, which would not be apparent on reasonable examination of the sample.

Last updated: 2010-01-11

Scheduled overtime

French: Heures supplémentaires prévues

Overtime experienced by a contractor through their usual business operations. Any resulting overtime premium costs are usually included in the contractor's overhead account.

Last updated: 2010-01-11

Science-based targets

French: Cibles scientifiques

  1. Greenhouse gas emission reduction targets are considered ‘science-based’ if they are in line with what the latest climate science deems necessary to meet the goals of the Paris Agreement - limiting global warming to 1.5°C above pre-industrial levels.
  2. Science-based targets must cover Scope 1 and 2 GHG emissions. For companies whose Scope 3 emissions cover more than 40% of their combined scope 1, 2 and 3 emissions, targets must cover scope 3.
  3. A company’s GHG emissions can be classified into three ‘scopes’. Scope 1 emissions are direct emissions from owned or controlled sources. Scope 2 emissions are indirect emissions from the generation of purchased energy. Scope 3 emissions are all indirect emissions (not included in scope 2) that occur in the value chain of the reporting company, including both upstream and downstream emissions

Last updated: 2023-04-11

Seal

French: Sceau

See under seal.

Last updated: 2010-01-11

Secret

French: Secret

The level of classification that applies to information or assets when compromise could reasonably be expected to cause serious injury to the national interest.

Last updated: 2010-01-11

Security deposit

French: Dépôt de garantie

The deposit by the bidder/contractor of securities, including government guaranteed bonds, bills of exchange and irrevocable standby letters of credit, which the contracting authority may convert to complete the bidder's/contractor's obligations.

Last updated: 2010-01-11

Security Requirements Checklist (SRCL)

French: Liste de vérification des exigences relatives à la sécurité (LVERS)

A form used to identify security requirements associated with a contract, which contains protected or classified security requirements.

Last updated: 2010-01-11

SELECT

French: SELECT

A procurement tool used to identify qualified firms and individuals for low dollar value construction, maintenance and real property consulting (architectural and engineering services).

Last updated: 2010-01-11

Selling price

French: Prix de vente

This is the net selling price to the buyer after all discounts. It includes all applicable provincial sales taxes, Goods and Services Tax/Harmonized Sales Tax, excise taxes and tariffs.

Last updated: 2010-01-11

Sensitive information

French: Renseignements de nature délicate

Comprises protected or classified information.

Last updated: 2022-05-02

Service contract (definition per the Government Contracts Regulations)

French: Marché de services

A contract for the provision of services, including printing services, but does not include an agreement under which a person is employed as an officer, clerk or employee of His Majesty.

Last updated: 2022-12-01

Set-Aside Program for Aboriginal Business

French: Programme des marchés réservés aux entreprises autochtones

Establishes two types of set-asides: mandatory and voluntary. Mandatory set-asides apply to procurements over $5,000 for which Aboriginal populations are the primary recipients of the goods, services, or construction to be contracted. Voluntary set-asides apply to all other procurements designated by client departments as reserved for Aboriginal business.

Last updated: 2010-01-11

Site visit

French: Visite des lieux

A meeting held on site and conducted by either PWGSCor the client to provide suppliers with an opportunity to view and assess aspects of the work that cannot be adequately described in performance specifications or the statement of work.

Last updated: 2010-01-11

Sole source

French: Fournisseur unique

The supply of a good or service that is available from only one supplier. A sole source contract implies that there is only one supplier that can fulfill the requirement and that any attempt to obtain bids would only result in one supplier being able to meet the need.

Last updated: 2010-01-11

Specialized packaging

French: emballage spécialisé

Packaging can be considered “specialized” if the intended use of the packaging requires technical performance specifications with no environmentally preferable alternatives. For example, when transporting hazardous materials, if there is a need for a specific density of materials, or if they must be temperature controlled.

Last updated: 2023-09-07

Special production tooling

French: Outillage spécial de production

Tools such as jigs, dies, fixtures, moulds, patterns, taps, gauges and other like items, which are of such a specialized nature that, without substantial modification or alteration, their use is peculiar to the production of supplies or the parts thereof, which are required by Canada.

Last updated: 2010-01-11

Special test equipment

French: Matériel spécial d'essai

Either single or multipurpose integrated test units engineered, designed, fabricated or modified to meet the test requirements of the specifications peculiar to the end items of equipment, which are required by Canada. Also included are associated computer software programs. The term "Special Test Equipment" does not include: special production tooling; buildings and non-severable structures (except foundations and similar improvements necessary for the installation of special test equipment); and test equipment loaned from a client's inventory.

Last updated: 2010-01-11

Specification

French: Spécification

A statement of requirements to be satisfied for materiel, a product or service, including the identification of test methods, or the procedures that will determine whether the requirements have been met.

Last updated: 2010-01-11

Split contract

French: Fractionnement d'un contrat

The practice of unnecessarily dividing an aggregate requirement into a number of smaller contracts, to avoid controls or contract approval authorities.

Last updated: 2010-01-11

Standard

French: Norme

  1. A formal specification, for recurring major interests, utilizing the consensus process, and published by a recognized standards-issuing agency. In particular, a Canadian General Standards Board (CGSB) standard is one developed in accordance with the procedures set out in the CGSB manual, Policy and Procedures Preparation of Standards.
  2. A formal statement of requirements established by authority, custom or general consent of those affected, and intended for general recurrent use. Normally, a standard is developed through a consensus process by a committee widely representative of major interests and is published by an accredited standards-writing agency, as determined by the Standards Council of Canada or recognized standards-issuing agency.

Last updated: 2010-01-11

Standard procurement

French: Approvisionnement normalisé

A standard procurement has the characteristics of judgment, review, and assessment. The procurement is based on the process of finding a solution to a requirement using existing technology and knowledge. Evaluation methods have to be defined, and may use pre-established strategies. The procurement process is established and understood though it can be complicated (many details or factors). Control is within the department’s domain of authority. Contract administration is predictable and established. There may be a medium level of risk.

Last updated: 2011-10-04

Standing offer

French: Offre à commandes

An offer from a supplier to provide goods and/or services to clients at prearranged prices or pricing basis and under set terms and conditions for a specified period on an as-and-when requested basis. When a call-up is made against a standing offer, it indicates Canada’s acceptance of the supplier’s offer and creates a contract unilaterally. A separate contract is entered into each time a call-up is made against a standing offer. Canada's liability to pay the supplier is limited to the actual value of the call-ups made within the period specified in the standing offer.

Last updated: 2019-05-30

Standing Offer and Call-up Authority (SOCA)

French: Autorisation de passer des commandes subséquentes à une offre à commandes (APCSOC)

A document issued by the standing offer authority that serves two primary purposes:

  1. notification to the offeror, that authority to call-up against a standing offer has been given to specific authorized users in respect of its standing offer; and
  2. notification to clients, that, in respect to a specific standing offer, authority to call-up against the said standing offer has been granted to them as provided in the standing offer.

Last updated: 2010-01-11

Standing offer authority

French: Responsable de l'offre à commandes

Means the person designated as such in the standing offer, or by notice to the offeror, to act as the representative of Canada in the management of the standing offer. The standing offer authority will issue a document called "Standing Offer and Call-up Authority" to authorize identified users to make call-ups against the standing offer and to notify the offeror that authority to make call-ups against the standing offer has been given to identified users.

Last updated: 2010-01-11

Storage

French: Entreposage

A function of warehousing which involves the receipt of an item, putting it away for safekeeping and subsequent retrieval, when required for use, sale or disposal.

Last updated: 2010-01-11

Subcontractor

French: Sous-traitant

One who takes portion of a contract from principal contractor or another subcontractor. One who takes from the principal or prime contractor a specific part of the work undertaken by the principal or prime contractor.

Last updated: 2010-01-11

Supply

French: Approvisionnement

The operations normally involved in furnishing, providing, affording or distributing items of supply to a user to satisfy stated requirements. The function includes all actions from the initial determination of requirements, as to kind and quality through testing, standardization, adoption, modification, procurement, acceptance, receipt, storage, issue, maintenance, distribution, salvage, reissue, disposal, accountability, responsibility and stock control.

Last updated: 2010-01-11

Supply arrangement

French: Arrangement en matière d'approvisionnement

A non-binding agreement between PWGSCand a supplier who is pre-qualified to provide goods or services to the Government of Canada.

Last updated: 2010-01-11

Supply arrangement authority

French: Responsable de l'arrangement en matière d'approvisionnement

Person designated as such in the supply arrangement, or by notice to the supplier, to act as the representative of Canada in the management of the supply arrangement.

Last updated: 2010-01-11

Supply transfer order

French: Demande de transfert de biens et de services

A document, which is used when goods and services are to be provided by a provincial government.

Last updated: 2010-01-11

Surety bond

French: Cautionnement

A contractual arrangement between the surety, the principal (contractor) and the obligee (Canada) whereby the surety agrees to protect the obligee if the principal defaults in performing the principal's contractual obligations. The bond is the instrument that binds the surety.

Last updated: 2010-01-11

Surplus material

French: Matériel excédentaire

  1. Materials, including raw materials, parts and equipment, purchased or manufactured by a contractor specifically for a contract, but which remain unused after completion of the contract.
  2. Materials purchased or manufactured by the contractor specifically for a Crown contract, but not used and left over after completion of the contract.

Last updated: 2010-01-11

T

Take-out rate

French: Taux de recouvrement

The negotiated rate applied to laid-down cost for the recovery of overhead costs applicable to resale business, when the resale business does not account for all functions of the particular cost centre. The resulting rate will be somewhat less than that, which applies to other work, using the cost centre facilities. A take-out rate is normally used only as an expedient, when the contractor does not have sufficient resale business to warrant a separate burden or cost centre.

Last updated: 2010-01-11

Target incentive fee

French: Tarif cible avec prime d'encouragement

Contract. A contract where a bonus is paid on the basis of agreed sharing of savings relative to the target price. This may also provide for reduction in profits where target cost is exceeded.

Last updated: 2010-01-11

Target price

French: Prix visé

Fixed fee and incentive fee formula. A method of pricing in which the contractor is paid costs reasonably and properly incurred, as determined by audit, together with an agreed upon fixed fee, as profit supplemented by an incentive fee, which will be paid to the contractor on any savings achieved between a prescribed target cost and the actual cost, as established by audit. A target price contract may also include a provision for a ceiling price.

Last updated: 2010-01-11

Tariff

French: Tarif

A published schedule showing the rates, charges, classification, rules, regulations and other provisions applicable to transportation and incidental services.

Last updated: 2010-01-11

Task authorization

French: Autorisation de tâches

A task authorization (TA) is a structured administrative tool that enables PWGSCor a client to authorize work by a contractor on an "as and when requested" basis in accordance with the conditions of the contract. TAs are not individual contracts.

Last updated: 2010-12-15

Task authorization contracts

French: Contrats avec autorisation de tâches

A contract with task authorizations is a method of supply for services under which all of the work or a portion of the work will be performed on an “as and when requested basis” through predetermined conditions including an administrative process involving task authorizations. Contracts with TAs are used in service contracting situations when there is a defined need by a client to rapidly have access to one or more categories of service(s) that are expected to be needed on a repetitive basis during the period of the contract.

Last updated: 2010-12-15

Technical authority (and/or business owner and/or client department or agency)

French: Responsable technique

The individual responsible for providing information, guidance and advice on the technical aspect of a product.

Last updated: 2022-05-12

Telephone buy

French: Achat par téléphone

A purchase whereby the telephone is used to solicit bids for requirements valued up to $25,000 for goods, including all applicable taxes, and whereby a contract is entered into over the telephone and confirmed in writing.

Last updated: 2020-05-04

Temporary help services

French: Services d'aide temporaire

Services provided under contract to the government for assignments in which employees of a supplier work under the direction of public servants.

Last updated: 2010-01-11

Tender

French: Offre

A proposal, bid or offer that is submitted in response to an Invitation to Tender, Request for Proposal, or Request for Quotation from a contracting authority.

Last updated: 2010-01-11

Term

French: Condition

  1. Contract. Word, phrase or condition in a contract which relates to a particular matter.
  2. A fixed and definite period, a prescribed duration.

Last updated: 2010-01-11

Termination for default

French: Résiliation pour manquement

Termination of a contract or part of a contract as a result of a breach of an obligation.

Last updated: 2010-01-11

Testing

French: Essai

An element of inspection. Generally denotes the determination by technical means of the properties or elements of supplies or components thereof, and involves the application of established scientific principles and procedures.

Last updated: 2010-01-11

Test methods

French: Méthodes d'essai

Detailed technical descriptions of procedures, according to which conformance to the requirements stated in specifications and standards, is determined.

Last updated: 2010-01-11

Third party liability

French: Responsabilité civile

Insurance. That type of insurance protection that indemnifies one from liability to third persons, as opposed to insurance coverage for losses sustained by the insured.

Last updated: 2010-01-11

Time payment

French: Paiement à terme

  1. A method of making progress payments that provides for specified payments to become due at the times specified in the contract, subject to certification by the inspection and contracting authorities that progress of the work conforms to schedule.
  2. The method of making progress payments based on physical progress of the work on a monthly basis, as determined by the inspection and contracting authorities without any set monthly goals.

Last updated: 2010-01-11

Title

French: Titre

The formal right of ownership of property, including right of possession.

Last updated: 2010-01-11

Top secret

French: Très secret

The level of classification that applies to information or assets when compromise could reasonably be expected to cause exceptionally grave injury to the national interest.

Last updated: 2010-01-11

Trademark

French: Marque déposée

A distinctive mark of authenticity, through which the products of a particular manufacturer may be distinguished from those of others. A distinctive mark, motto, device, or emblem which a manufacturer stamps, prints, or otherwise affixes to the goods he produces, so that they may be identified in the market, and their origin be vouched for.

Last updated: 2010-01-11

Transfer pricing

French: Prix de transfert

The prices set for goods or services that are exchanged among related parties (affiliated or entities under common control, joint control, or significant influence). The “Transfer Price” is the price at which a supplier sells its goods or services to a related party buyer.

Last updated: 2023-04-20

Trustee in bankruptcy

French: Syndic de faillite

A person licensed under the terms of the Bankruptcy Act appointed by court to take possession of the assets of a bankrupt debtor. A trustee becomes in effect a temporary manager of a business who may carry on the business, or alternatively sell the assets. In managing the business, a trustee may be referred to as the receiver manager.

Last updated: 2010-01-11

U

Under seal

French: Scellé

Authenticated by a seal; executed by the affixing of a seal.

Last updated: 2010-01-11

Unscheduled overtime

French: Heures supplémentaires imprévues

Any unexpected additional overtime experienced on Crown contracts. Payment for unscheduled overtime requires an amendment to the contract, as it is not included in the overhead rate, but is usually directly charged after the contract has been signed.

Last updated: 2010-01-11

U.S. Defense Priorities and Allocations System (DPAS)

French: Système américain régissant les priorités et les attributions en matière de défense (DPAS)

A system in existence in the United States to ensure the timely flow of goods, materials and services and the prompt delivery of defence and defence-related needs.

Last updated: 2024-04-19

V

Value for duty

French: Valeur imposable

  1. Customs. The price in Canadian currency on which the appropriate rate of customs duty is applicable for goods imported into Canada.
  2. Customs Act. The value of the article, as it would be determined for the purpose of calculating an ad valorem duty upon the importation of such article into Canada, under the laws relating to the customs and the customs tariff, whether such article is in fact subject to ad valorem or other duty or not.

Last updated: 2010-01-11

Verification of time for acceptability

French: Contrôle du temps en vue de l'acceptation

An examination of the contractor's records to: determine the actual time charged for carrying out the work in accordance with the terms of the contract; ensure that the amount of time thus determined was required in the performance of the work under the contract; and ascertain that the time charged reflects the performance of the work under the contract in an efficient and economical manner.

Last updated: 2010-01-11

W

Warehousing

French: Entreposage

The performance of those physical and administrative functions incidental to and required in the conduct of the storage activity, that is, receipt, sorting, identification, inspection, preservation, putting away, safekeeping, retrieval for issue and preparation for shipment of materiel.

Last updated: 2010-01-11

Warranty

French: Garantie

  1. A statement or representation made by seller of goods as part of a contract of sale, having reference to character, quality, or title of goods, and by which seller promises or undertakes to insure that certain facts are as he represents them.
  2. Express warranty. The seller has made an express warranty when making some specific statement concerning the nature, quality, character, use or purpose of the goods, which induces the buyer to make its purchase of them, and the seller intends to the buyer to rely on its statement.
  3. Implied warranty. A promise arising by operation of law that something that is sold will be merchantable, and fit for the purpose for which the seller knows that it is required. A contract to do certain work, such as a building contract, contains within itself an implied warranty that the work shall be done in a workman-like manner.
  4. Breach of warranty. The consequences that flow from a breach of warranty entitle the innocent party to damages, while a breach of a condition may entitle the innocent party to rescind the contract.
  5. Full warranty. A warranty, which covers full performance, generally both labour and materials. Under a full warranty, the warrantor must remedy the product within a reasonable time, and without charge, after notice of a defect or malfunction.
  6. Limited warranty. A written warranty, which fails to meet one or more of the minimum standards for a full warranty.

Last updated: 2010-01-11

Wholesaler

French: Grossiste

This is a merchant middleman who sells chiefly to retailers or industrial, institutional and commercial buyers for their resale or business use.

Last updated: 2010-01-11

Working capital employed

French: Fonds de roulement utilisé

Measures the level of current and short-term financial commitments from day-to-day activities in the performance of the contract that would be required by the contractor.

  1. Working capital employed tier 1 approach. The simplified approach to determine return on working capital employed for all contracts where the total estimated or acceptable contract costs are less than or equal to $1,000,000.
  2. Working capital employed tier 2 approach. The approach to determine return on working capital employed for contracts where the total estimated or acceptable costs must be greater than $1,000,000 or for working capital employed Tier 1 contractors where a contractor requests a Tier 2 determination.

Last updated: 2023-04-20

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