Trade Agreements Tendering Approaches

Trade agreements tendering approaches are the three procurement methods that apply under trade agreements: open tendering, selective tendering and limited tendering. Open tendering invites all interested businesses to bid. Selective tendering draws on prequalified suppliers. Limited tendering allows a procurement to proceed without the full open or selective process, but only in circumstances the applicable agreement permits. CanadaBuys sets out these three approaches in its sourcing strategy guidance.

The terminology comes from the procedural rules of international and interprovincial government-procurement agreements. Canadian contracting authorities use the approaches to meet obligations on transparency, competition, non-discrimination and national treatment. The agreements involved include the WTO Agreement on Government Procurement, the Canada-European Union Comprehensive Economic and Trade Agreement (CETA) and the Canadian Free Trade Agreement (CFTA), all of which contain public-notice provisions, as CanadaBuys explains.

Open tendering as the preferred approach

In open tendering, the procuring entity publishes a notice of proposed procurement and invites all interested businesses to submit offers. CanadaBuys describes this as the preferred approach. Any supplier that sees the notice and meets the stated requirements can respond.

CanadaBuys tender notices can state the approach directly. A notice may read "Tendering Procedures: All interested suppliers may submit a bid," which corresponds to an open approach, as in this CanadaBuys tender notice.

Selective tendering and prequalified lists

In selective tendering, the procuring entity invites suppliers from a list of prequalified offerors. The list can be a one-time list built for a single procurement or a permanent list that is maintained over time. Generally, all prequalified offerors must be allowed to participate, subject to any properly stated limitation and the selection criteria.

A supplier that is not on the relevant list cannot bid on that procurement. Getting onto the list happens through the prequalification process, so the work comes before the tender is issued.

Limited tendering and its boundaries

Limited tendering lets the procuring entity proceed without the ordinary open or selective process where the applicable trade agreement permits it. Examples include protecting national interests, or cases where no suitable offer was received through open or selective tendering.

The method carries firm restrictions. It must not be used to avoid competition, to discriminate against a business or to protect domestic businesses. Suppliers generally take part only when the procuring entity contacts them or provides access under the permitted procedure.

How federal buyers apply the approaches

Government of Canada contracting authorities must determine which trade agreements apply to a procurement, understand the procedural requirements and publish the applicable notices and bid documents through the approved electronic tendering system, unless an agreement permits an exception. The Treasury Board policy framework sets out these responsibilities.

Competitive procurements covered by trade agreements generally must be advertised on the Government Electronic Tendering Service (GETS) through CanadaBuys, subject to stated exceptions. The public-notice and notification requirements can also apply to mini-tenders conducted under a supply arrangement.

What it means for a supplier bidding on Canadian public contracts

Your required action depends on the approach. Under open tendering, monitor CanadaBuys and submit a compliant bid by the stated deadline. Under selective tendering, get prequalified or placed on the relevant one-time or permanent list before the tender is issued. Under limited tendering, follow the specific solicitation and any qualification requirements once the procuring entity contacts you.

Check the tendering procedure field in each notice before you commit bid resources. It tells you whether the opportunity is open to you or restricted to a list. You can search current notices through CanadaBuys search guidance.