Use of source lists

Use of source lists means using a list of qualified suppliers, typically organized by commodity or service, to identify potential suppliers and invite them to submit bids. Federal guidance describes a source list as a tool for finding suppliers who are able to meet a requirement, and Canadian federal buyers apply it in several procurement settings (Government of Canada publication).

A source list is a supplier-selection and solicitation method. It differs from an open invitation published for every supplier, although a list can be built through public advertising. Buyers use source lists for selective tendering, and as a sourcing strategy when a competitive procurement is not publicly advertised (Treasury Board Contracting Policy, archived).

How source lists support selective tendering

The archived Treasury Board Contracting Policy allowed source lists to be used for selective tendering under the former NAFTA and the WTO Agreement on Government Procurement. It also permitted contracting authorities to establish lists of competent suppliers who are representative of the suppliers of the required goods or services (Treasury Board Contracting Policy).

Selective tendering means bids are invited from suppliers chosen from a source list, rather than from the whole market. The buyer sends the solicitation directly to the listed suppliers.

Source lists in the PSPC Supply Manual

The Public Services and Procurement Canada (PSPC) Supply Manual states that source lists can be developed and maintained by sectors or regions for particular commodities. Suppliers may apply to be listed at any time, and qualified suppliers should be added within a reasonably short time (PSPC Supply Manual).

The manual also covers rotation. A rotational source list selects suppliers in turn to promote equitable access to opportunities, and automated systems such as AVRS and SELECT rotate vendors systematically where they apply.

CanadaBuys guidance on sourcing strategy

CanadaBuys buyer guidance says source lists primarily support requests for offers when a competitive procurement is not publicly advertised. A supplier that asks to take part must be included for consideration, subject to the applicable process (CanadaBuys: determine sourcing strategy).

For procurements covered by international trade agreements and the Canadian Free Trade Agreement, a source list can establish a list of pre-qualified offerors for specified goods and services. The list must be refreshed at least annually, and suppliers must be allowed to qualify at any time if they meet the selection criteria.

CanadaBuys also names source lists, either one-time or permanent, as possible sourcing strategies in a procurement plan (CanadaBuys: procurement plan). A tender notice for 22 Wing North Bay refers to continuing to use existing source lists, including Quick Response Tender source lists, for similar or related services (CanadaBuys tender notice).

Pre-qualified suppliers and methods of supply

In some PSPC professional-services requirements, a mandatory method of supply applies. In those cases the pre-qualified suppliers identified through the Canadian Professional Services Supply (CPSS) arrangement serve as the source list. Only suppliers pre-qualified at the time the individual bid solicitation is issued are eligible to bid (PSPC guidance on security clearance and methods of supply).

What source lists mean for a supplier

A supplier that is not on the relevant list may never see the solicitation. A supplier should:

• Apply to be included on the relevant source list when registration is open.
• Show that it meets the list's qualification criteria.
• Keep its registration and qualification information current.
• Monitor individual bid solicitations, because being listed does not guarantee an invitation or a contract.
• For method-of-supply procurements, stay pre-qualified and meet any current security-clearance or other eligibility requirements before the solicitation is issued.