Supplier Selection

Supplier selection is the process of identifying and choosing suppliers that meet a procurement requirement. Buyers use defined selection methods and evaluation criteria to decide which firms are invited to bid and which firm receives the contract. In Canadian federal procurement, the term covers these activities from solicitation planning through the award of a contract or other procurement instrument.

Public Services and Procurement Canada (PSPC) lists suppliers selection as part of its procurement-services program, alongside requirements definition, solicitation planning, solicitation, contract administration, standing offers, supply arrangements and electronic procurement tools. See the PSPC program activities description. Related terms include source selection, selective tendering, pre-qualified supplier, bid solicitation, evaluation criteria and best value.

Source Lists and Selective Tendering Under Treasury Board Policy

The Treasury Board Contracting Policy permits selective-tendering methods and the use of source lists of competent suppliers. Where a source list contains many firms, suppliers may be pre-selected in rotation, provided the process is equitable. The policy text is available from the Treasury Board of Canada Secretariat.

For a supplier, this means being on the right list can decide whether you receive an invitation at all.

How Supply Arrangements and Standing Offers Select Suppliers

Many selections happen after a supplier has already qualified for a procurement instrument. Several examples show how this works in practice:

• Solutions-Based Informatics Professional Services Supply Arrangement: bids for specific requirements are solicited from the suppliers that hold the arrangement. Depending on the methodology chosen, invitations are posted on CanadaBuys or sent directly to suppliers. See the supply arrangement page.
• Task and Solutions Professional Services: clients select suppliers using search parameters such as category, region, metropolitan area and expertise level. Indigenous status is also a parameter where it applies. The client must keep a record of the search and the final list of suppliers invited to bid. See the Task and Solutions Professional Services process.
• Audiovisual and video-surveillance equipment: users normally select the lowest-priced supplier in the applicable region. Another supplier may be chosen where technical, licensing or best-overall-value reasons support it. See the audiovisual equipment commodity page.

Documented Selection Criteria at Correctional Service Canada

Departments set their own directives within the wider policy framework. The Correctional Service of Canada requires that supplier-selection criteria be supported by the statement of work and not unnecessarily restrict competition. The criteria must also be finalized and documented before tender documents are published. The requirement appears in its contracting directive.

Source Selection in NATO Procurement

NATO procurement materials use the related expression source selection. Offers are evaluated against the solicitation's source-selection plan and its evaluation factors and sub-factors. The evaluated offers are then compared to determine which proposal provides the best value. This approach is set out in the NATO procurement manual. CanadaBuys carries tender notices from NATO as well as from PSPC, federal departments and agencies, Crown corporations and other public-sector organizations. See the CanadaBuys tender information.

What Supplier Selection Means for Bidders

Suppliers must qualify for the relevant procurement instrument where prequalification applies. They must meet the solicitation's mandatory and rated requirements, submit a compliant bid when invited, and provide information that supports the stated evaluation criteria. The exact obligations depend on the solicitation, standing offer, supply arrangement or contract, so bid teams should read the selection method in each document before they plan a response.