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2012 Purchasing Activity Report

Archived information

Archived information is provided for reference, research or recordkeeping purposes. It is not subject à to the Government of Canada Web Standards and has not been altered or updated since it was archived. Please contact us to request a format other than those available.

Introduction

Each year the Government of Canada publishes statistics on purchases and contracts conducted in departments and agencies.

The main objective of the Treasury Board Contracting Policy is to acquire goods and services and to carry out construction in a manner that enhances access, competition and fairness and results in best value or, if appropriate, the optimal balance of overall benefits to the Crown and the Canadian people.

As well, contracting is to be conducted in a manner that will:

  • Stand the test of public scrutiny in matters of prudence, probity, facilitate access, encourage competition and reflect fairness in the spending of public funds;
  • Ensure the pre-eminence of operational requirements;
  • Support long-term industrial and regional development and other appropriate national objectives;
  • Comply with the government's obligations under international and domestic trade agreements, as well as under various comprehensive land claim agreements.

The Government is committed to strengthen and modernize government procurement, and to ensure greater transparency, accountability, fiscal responsibility, and ethical conduct in government.

In keeping with these overall objectives, since 2004, the Government requires the publication of contracts over $10,000. The published lists of contracts and contract amendments in the transparency pages on various departmental web sites are accessible from the Government-Wide Reporting — Proactive Disclosure website.

The Government is also committed to ensuring that Canadians are provided with appropriate information on activities in a cost-effective, efficient and transparent manner. Suppliers who wish to find out more about doing business with the federal government should consult the Government Electronic Tendering Service.

2012 Purchasing Activity Report – Summary

Departments and Agencies subject to Government Contracts Regulations


All Contracts above and below $25,000 Total Number and Value of Contracts including Net Amendments
Contract Type Number % of Number Value $ 000 % of Value
Goods 219,477 56.8% 6,982,484 46.1%
Services 146,452 37.9% 7,064,684 46.6%
Construction 20,672 5.3% 1,102,035 7.3%
Total 386,601 100% 15,149,203 100%

All Contracts under $25,000 Total Number and Value of Contracts including Net Amendments
Contract Type Number % of Total Number of all Contracts Value $ 000 % of Total Value of all Contracts
Goods 207,257 53.6% 622,599 4.1%
Services 130,744 33.8% 633,965 4.2%
Construction 18,656 4.8% 78,892 0.5%
Total 356,657 92.2% 1,335,456 8.8%

All Contracts $25,000 and above Total Number and Value of Contracts including Net Amendments
Contract Type Number % of Total Number of all Contracts Value $ 000 % of Total Value of all Contracts
Goods 12,220 3.2% 6,359,885 42.0%
Services 15,708 4.1% 6,430,719 42.4%
Construction 2,016 0.5% 1,023,143 6.8%
Total 29,944 7.7% 13,813,747 91.2%

2012 Purchasing Activity Report - Detailed

Departments and Agencies subject to Government Contracts Regulations


All Contracts above $25,000 Total Number and Value of Contracts including Net Amendments
Solicitation Procedure Number % of Number Value $ 000 % of Value
Awards Pursuant to Public Notice or Invited Competitive Bids
Competitive Awards
Electronic bidding
9,018 30.11% 4,442,583 32.16%
Traditional competitive
15,249 50.93% 2,229,283 16.14%
Total Competitive Awards 24,267 81.04% 6,671,866 48.30%
Net competitive amendments
N/A N/A 4,189,148 30.32%
Subtotal of Competitive Awards including Amendments 24,267 81.04% 10,861,014 78.62%
ACANs
886 2.96% 367,535 2.66%
Net ACAN amendments
N/A N/A 402,949 2.92%
Subtotal Competitive and ACANs including Amendments 25,153 84.00% 11,631,498 84.20%
Awards not Pursuant to Public Notice or Invited Competitive Bids
Non-Competitive Awards 4,791 16.00% 1,403,919 10.16%
Net amendments
N/A N/A 778,329 5.63%
Non-Competitive including Amendments 4,791 16.00% 2,182,248 15.80%
Total Contracts $25,000 and above 29,944 100.00% 13,813,747 100.00%

Goods Contracts above $25,000 Total Number and Value of Contracts including Net Amendments
Solicitation Procedure Number % of Number Value $ 000 % of Value
Awards Pursuant to Public Notice or Invited Competitive Bids
Competitive Awards
Electronic bidding
3,896 31.88% 1,971,109 30.99%
Traditional competitive
5,657 46.29% 927,980 14.59%
Total Competitive Awards 9,553 78.17% 2,899,089 45.58%
Net competitive amendments
N/A N/A 1,363,626 21.44%
Subtotal of Competitive Awards including Amendments 9,553 78.17% 4,262,715 67.02%
ACANs
206 1.68% 134,823 2.12%
Net ACAN amendments
N/A N/A 202,186 3.18%
Subtotal Competitive and ACANs including Amendments 9,759 79.86% 4,599,724 72.32%
Awards not Pursuant to Public Notice or Invited Competitive Bids
Non-Competitive Awards 2,461 20.14% 1,088,636 17.12%
Net amendments
N/A N/A 671,526 10.56%
Non-Competitive including Amendments 2,461 20.14% 1,760,161 27.68%
Subtotal of Goods Contracts $25,000 and above 12,220 100.00% 6,359,885 100.00%

Services Contracts above $25,000 Total Number and Value of Contracts including Net Amendments
Solicitation Procedure Number % of Number Value $ 000 % of Value
Awards Pursuant to Public Notice or Invited Competitive Bids
Competitive Awards
Electronic bidding
4,378 27.87% 1,778,766 27.66%
Traditional competitive
8,507 54.16% 1,115,384 17.34%
Total Competitive Awards 12,885 82.03% 2,894,150 45.00%
Net competitive amendments
N/A N/A 2,696,576 41.93%
Subtotal of Competitive Awards including Amendments 12,885 82.03% 5,590,727 86.94%
ACANs
673 4.28% 230,525 3.58%
Net ACAN amendments
N/A N/A 200,304 3.11%
Subtotal Competitive and ACANs including Amendments 13,558 86.31% 6,021,555 93.64%
Awards not Pursuant to Public Notice or Invited Competitive Bids
Non-Competitive Awards 2,150 13.69% 304,180 4.73%
Net amendments
N/A N/A 104,983 1.63%
Non-Competitive including Amendments 2,150 13.69% 409,163 6.36%
Subtotal of Services Contracts $25,000 and above 15,708 100.00% 6,430,719 100.00%

Construction Contracts above $25,000 Total Number and Value of Contracts including Net Amendments
Solicitation Procedure Number % of Number Value $ 000 % of Value
Awards Pursuant to Public Notice or Invited Competitive Bids
Competitive Awards
Electronic bidding 744 36.90% 692,707 67.70%
Traditional competitive 1,085 53.82% 185,918 18.17%
Total Competitive Awards 1,829 90.72% 878,625 85.87%
Net competitive amendments N/A N/A 128,946 12.60%
Subtotal of Competitive Awards including Amendments 1,829 90.72% 1,007,572 98.48%
ACANs 7 0.35% 2,187 0.21%
Net ACAN amendments N/A N/A 460 0.04%
Subtotal Competitive and ACANs including Amendments 1,836 91.07% 1,010,218 98.74%
Awards not Pursuant to Public Notice or Invited Competitive Bids
Non-Competitive Awards 180 8.93% 11,104 1.08%
Net amendments N/A N/A 1,820 0.18%
Non-Competitive including Amendments 180 8.93% 12,924 1.26%
Subtotal of Construction Contracts $25,000 and above 2,016 100.00% 1,023,143 100.00%

Numbers in tables may not add up due to rounding.

Notes to 2012 Purchasing Activity Report

1. Objective

The objective of the annual Purchasing Activity Report is to provide a basic snapshot of purchasing activities of the Government of Canada. It is based on the Government of Canada's policy framework in effect in 2012. It is important to note that there is no statutory requirement for such a report. It complements information on contracting statistics on the BuyandSell web site. Also, as mentioned in the Introduction above, the published lists of contracts in the proactive disclosure pages on various departmental web sites are accessible from this Treasury Board Secretariat web site.

Information on the Procurement Strategy for Aboriginal Business can be found at the Aboriginal Affairs and Northern Development Canada web site.

The Purchasing Activity Report was derived from data provided by the reporting entities specified below. Since the data is not audited, no warranty or other legal assurance as to the accuracy or completeness of any of this information is stated or can be implied. Any person making use of this information for any purpose whatsoever does so entirely at his/her own risk and the Crown shall have no liability whatsoever. This report covers government purchasing activities for the period January to December 2012 inclusive.

2. Procurement Policy Framework

The main features of the Government of Canada's procurement policy framework in effect in 2012 that are relevant to the Purchasing Activity Report are as follows:

The objective of government procurement contracting is to acquire goods and services and to carry out construction in a manner that enhances access, competition and fairness and results in best value or, if appropriate, the optimal balance of overall benefits to the Crown and the Canadian people.

Treasury Board Contracting Policy defines a competitive contract as a contract where the process used for the solicitation of bids enhances access, competition and fairness and assures that a reasonable and representative number of suppliers are given an opportunity to bid.

The Government Contracts Regulations specifies that a contracting authority may enter into a contract without soliciting bids where:

  1. the need is one of pressing emergency in which delay would be injurious to the public interest;
  2. the estimated expenditure does not exceed
    1. $25,000,
    2. $100,000, where the contract is for the acquisition of architectural, engineering and other services required in respect of the planning, design, preparation or supervision of the construction, repair, renovation or restoration of a work, or
    3. $100,000, where the contract is to be entered into by the member of the Queen's Privy Council for Canada responsible for the Canadian International Development Agency and is for the acquisition of architectural, engineering or other services required in respect of the planning, design, preparation or supervision of an international development assistance program or project;
  3. the nature of the work is such that it would not be in the public interest to solicit bids; or
  4. only one person is capable of performing the contract.

3. Reporting Entities

The reporting entities targeted in the report are the contracting authorities, as defined in the Government Contracts Regulations and the Financial Administration Act (FAA):

  1. the appropriate Minister, as defined in paragraph (a), (a.1) or (b) of the definition appropriate Minister in section 2 of the FAA;
  2. a department within the meaning of paragraph (a.1) of the definition of “department” in section 2 of the FAA that has the legal authority to enter into a contract;
  3. a departmental corporation named in Schedule II to the FAA;
  4. any individual — other than a commissioner appointed under the Inquiries Act and any individual authorized under the Parliament of Canada Act to enter into a contract — who is authorized by or under an Act of Parliament to enter into a contract.

While the Canada Revenue Agency (CRA) is not subject to Treasury Board policies regarding annual reporting requirements for contracting activities, the CRA voluntarily provides data on its purchasing activities.

4. Exclusions under Government Contracts Regulations

The Government Contracts Regulations apply to all contracts except:

  1. a contract entered into by the National Film Board;
  2. a contract for the construction of buildings entered into under the Veterans' Land Act;
  3. a contract entered into under the Indian Act that involves Indian moneys as defined in that Act;
  4. subject to section 4 of those Regulations, a contract for the performance of legal services entered into by or under the authority of the Minister of Justice,
  5. a contract for the fit-up of an office or a residential accommodation if the contract for fit-up is part of a transaction authorized pursuant to the Federal Real Property and Federal Immovables Act or the regulations made under it; or
  6. arrangements entered into under an Interchange Canada Agreement.

5. Solicitation Methods

Electronic bidding – A method of procurement that promotes suppliers' access to, and transparency in, the procurement process and facilitates the Crown's receipt of best value, by using:

  1. public notice by means of an approved electronic information service of procurement opportunities (e.g., buyandsell.gc.ca);
  2. public notice by means of an electronic information service of proposed directed procurements by means of an Advance Contract Award Notice (ACAN); or
  3. such other procurement methods as may be approved by the Treasury Board.

Traditional competitive – A method of procurement that involves giving public notice, using traditional bidding procedures and in a manner that is consistent with generally accepted trade practices, of a call for bids for a proposed contract.

Advance contract award notice (ACAN) - An ACAN allows departments and agencies to post a notice, for no fewer than 15 calendar days, indicating to the supplier community that it intends to award a good, service or construction contract to a pre-identified contractor. If no other supplier submits, during the 15-calendar day posting period, a statement of capabilities that meet the requirements set out in the ACAN, the contract may be awarded pursuant to Treasury Board's electronic bidding authority limits. For this reason, ACANs are grouped within Competitive Awards in the table above.

6. Amendments

In 2012, the total value of positive amendments (i.e., those that result in an increase in the contract value) was $5,861,413,779. The total value of negative amendments (i.e., those that result in a decrease in the contract value) was $398,551,770. The total value of net amendments was $5,462,862,009.

7. Acquisition Cards

The above data do not include transactions using acquisition cards. Those cards are normally used for low dollar value purchases. In 2012, there were 1,718,550 acquisition card transactions for a total value of $838,187,906.

8. Other Excluded Items

The data do not include expenditures for travel, hotel accommodation, hospitality and petty cash.

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