Competitive Process

A competitive process is a procurement method in which suppliers compete for a contract by responding to a formal solicitation. The buyer sets out its requirement, eligible suppliers submit bids, proposals or quotations, and the contract is awarded based on the results. The Government of Canada treats the competitive approach as the normal way to determine a contractor, as set out in the Treasury Board contracting policy framework.

Federal guidance describes the competitive process as the normal means of establishing best value and price. It can be set aside where another authorized method applies. Contracting authorities are generally required to solicit bids before entering into a contract under the Government Contracts Regulations. NATO uses the same idea in its own procurement rules, so suppliers who work with both buyers will see the term in two settings.

How the Government of Canada uses the competitive approach

In federal contracting, soliciting bids is the default. A contracting authority invites suppliers to respond, evaluates what it receives, and uses the competition to establish best value and price. Non-competitive contracting is the exception and must rest on another authorized method.

The solicitation documents tell suppliers what to submit and how it will be assessed. Common instruments include invitations for bids (IFBs), requests for proposals (RFPs) and requests for quotations. The same federal framework places the competitive process at the centre of how departments choose contractors.

Open bidding, traditional and selective tendering

Canada reports competitive contracts under several labels, and each describes how bids were solicited. Treasury Board contract reporting guidance recognizes the following:

• Competitive – Open Bidding: bids are solicited through the Government Electronic Tendering Service (GETS), now associated with CanadaBuys.
• Competitive – Traditional: bids are solicited through another medium, such as direct contact with suppliers by email or telephone.
• Competitive – Selective Tendering: a procedure permitted under Canada's trade agreements in which qualified suppliers are chosen from a source list, including single-use or multi-use lists.

All three are competitive. What differs is who can see the opportunity and how the buyer reaches suppliers.

How NATO defines competitive procurement

In NATO, competitive procurement is a method open to all eligible vendors from participating nations. The NATO procurement policy requires the procurement authority to run a formal competitive bidding procedure and to ensure fair and equal treatment of eligible vendors. The NATO procurement manual adds that requirements are to be met by maximizing competition among eligible and capable sources, and that NATO contracts are based on competitive solicitation processes.

NATO's procurement procedure defines a bid as a formal offer submitted in response to an IFB. It defines a proposal as a detailed response to an RFP, covering matters such as the technical solution, price and implementation approach.

At the NCI Agency, procurements are either simplified or formal. Formal procurements at specified value thresholds are conducted through international competitive bidding procedures. Suppliers from NATO countries are generally invited to international competitions unless an opportunity states otherwise. A company needs a Declaration of Eligibility for each competition to receive solicitation documents and take part, as described in the NCI Agency procurement types and methods.

What a competitive process means for a supplier

A supplier in a competitive process must submit the requested bid, proposal or quotation in accordance with the solicitation. The solicitation document sets the rules, so read it closely and follow its format and instructions.

• Check how the opportunity was issued. An open bidding notice on CanadaBuys, a traditional solicitation sent directly to suppliers and a selective tender drawn from a source list each reach a different audience.
• For selective tendering, being on the relevant source list is what puts a supplier in the competition.
• For NATO competitions, obtain the Declaration of Eligibility for each competition before expecting to receive documents.
• Match the response to the instrument. A bid answers an IFB. A proposal answers an RFP and must cover the technical solution, price and implementation approach.