Bidding Process

A bidding process is the structured, competitive procedure a procuring organization uses to invite suppliers to submit bids, receive and evaluate those bids against stated criteria, and select a supplier or award a contract. It is a general procurement expression, not an abbreviation. It is closely related to terms such as competitive bidding, tendering process, call for tenders and contract award.

In the Government of Canada, many contracts are awarded through a competitive process that requires suppliers to submit a bid. Under that process, a bid must meet all solicitation requirements and offer best value for money, as set out in the Public Services and Procurement Canada reference sheet on preparing for a bid opportunity. The Competition Bureau states that governments at all levels should favour competitive bidding in public-sector procurement, and describes open competition as a way to support good value for public funds (Competition Bureau Canada).

Stages of a Canadian tendering process

Indigenous Services Canada breaks its tendering process into clear stages: approval, preparation, advertising and administration, receipt and opening of bids, evaluation, and contract award. The last three stages are the ones a bidder experiences most directly. Bids are received and opened, they are evaluated, and the contract is awarded. The full sequence is described on the Indigenous Services Canada procurement page.

What a federal solicitation contains

The solicitation document sets the rules of the bidding process. Federal solicitations commonly include the following:

• A statement of work describing what the buyer needs
• Mandatory requirements and rated requirements
• Evaluation criteria and the basis of selection
• Pricing instructions
• Certifications and security requirements
• Instructions for preparing and submitting the bid

Suppliers must fulfill all mandatory criteria to move forward in the federal evaluation process. This is set out in the PSPC reference sheet.

RFP, RFT and related bidding terms

Several documents launch a bidding process, and the name signals the type of competition. Indigenous Services Canada distinguishes a request for proposals (RFP), which is a call for proposals, from a request for tender (RFT), which is a call for tenders. Other related terms include request for quotations (RFQ), invitation to tender (ITT) and invitation for bids (IFB). Always follow the instructions of the specific document, since the name alone does not tell you how bids will be evaluated.

Bidding in NATO-funded procurement

NATO's procurement policy requires the procurement authority to conduct a formal competitive bidding procedure. For NATO Security Investment Programme projects, International Competitive Bidding (ICB) is the default method, according to UK government guidance on NATO procurement. The process may include an invitation to bid, a bidders' conference, bid closing, evaluation and source selection, notification of the winning bid, negotiations where applicable, and contract award.

What the bidding process means for a supplier

A Canadian supplier bidding on public contracts should do the following:

• Read the complete solicitation
• Comply with every mandatory requirement
• Answer each evaluation item
• Provide all required technical, financial, certification, security and supporting information
• Follow the prescribed format and submission method
• Submit before the exact closing date and time

A bid that fails a mandatory requirement does not move forward, however strong the rest of it is. Treat the solicitation as the single authority on what the buyer will evaluate.