Total Estimated Value

Total Estimated Value is the buyer's estimate of the full worth of a procurement requirement. CanadaBuys defines the related term "estimated total procurement value" as the total value of the requirement including taxes and options. The figure covers more than the base price of a single year or a single deliverable.

In Canadian trade-agreement practice, estimated value is generally the maximum total value over the procurement's entire duration. That includes all forms of remuneration, such as premiums, fees, commissions and interest. The figure appears in procurement plans, approval documents, tender notices and contract-award records, and it drives several decisions before a solicitation is posted. The CanadaBuys glossary sets out the base definition.

What the figure includes

The core elements are the requirement's price, any applicable taxes and any options the buyer may exercise. Options matter because the estimate reflects the most the contract could be worth, not only the committed portion. Under the Canada-Chile Free Trade Agreement procurement rules, contract value includes the maximum total estimated value over the entire duration, including options, premiums, fees, commissions, interest and other remuneration. See the Canada-Chile agreement text.

Where buyers use it in planning and approval

The estimate sets how a requirement is approved. For standing offers and supply arrangements, approval is based on the total estimated value of the entire project or program, including applicable taxes. When several standing offers are intended, the values of all resulting standing offers are aggregated for approval. The rules sit in the CanadaBuys guidance on contracting limits.

Emergency contracting follows the same logic. The buyer's formal procurement plan or briefing note must describe the requirement and its total estimated value, including applicable taxes and fees, as set out in the CanadaBuys emergency requirements guidance. PSPC also identifies total estimated value as information recorded for contract awards made in after-hours situations.

Trade-agreement thresholds and the tax question

Procuring entities use estimated value to decide whether a procurement meets a trade-agreement threshold, and that decision determines which trade rules apply. Treatment of taxes is not identical in every context. CanadaBuys planning guidance includes applicable taxes in the total estimated value. Alberta's procurement guidance describes estimated value as the maximum total value including premiums, fees, commissions and interest, and states that taxes are excluded for the trade-agreement calculation. The Alberta guidelines set out that rule.

How the value appears in notices

CanadaBuys Advance Contract Award Notices can state the total estimated value of the proposed contract, including expenses such as applicable taxes, travel, living expenses and option periods. One published ACAN stated its value on that basis.

Tender notices can also publish the figure and sometimes state the tax treatment outright. One CanadaBuys tender notice gave a total estimated value of $10,350,000 including HST. A reader who saw only the number would not know whether tax was in it, so the wording around the figure matters.

What it means for a supplier bidding on Canadian public contracts

The stated value can affect the procurement method, the approval route, trade-agreement coverage and the bidding conditions that apply. Read each notice to see whether the amount includes taxes, options, fees, expenses and the full contract term. Compare the figure with your own pricing on the same basis, and treat option periods as part of the opportunity's size. Follow the solicitation's stated requirements for how the value is expressed and used.