ARCHIVED - 1999 Purchasing Activity Report

1999 Purchasing Activity Report
All Departments and Agencies subject to Government Contracts Regulations
Total Number and Value of Contracts including Net Amendments

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 1999. It is important to note that there is no statutory requirement for such a report. It complements information found on contract statistics on Contracts Canada web site found at www.contractscanada.gc.ca.  Further information on contracting and contracting activities may be found for major purchasing departments in the Government's public and Parliamentary reporting documents, specifically their Annual Report on Plans and Priorities and Departmental Performance Reports. Internal departmental audits on the contracting function are posted on www.tbs-sct.gc.ca/http://www.tbs-sct.gc.ca/aedb-bdve/home-accueil-eng.aspx.

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 truth, 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 1999 inclusive.

The main features of the Government of Canada's procurement policy framework in effect in 1999 that are relevant to the Purchasing Activity Report are as follows:

2.1 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.

2.2 Government contracting shall be conducted in a manner that will:

(a) stand the test of public scrutiny in matters of prudence and probity, facilitate access, encourage competition, and reflect fairness in the spending of public funds;

(b) ensure the pre-eminence of operational requirements;

(c) support long-term industrial and regional development and other appropriate national objectives, including aboriginal economic development;

(d) comply with the government's obligations under the North American Free Trade Agreement, the World Trade Organization - Agreement on Government Procurement and the Agreement on Internal Trade.

2.3 Appendix A of the 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 by:

EITHER

(A) giving public notice, using electronic bidding methodology, possibly supplemented by traditional bidding procedures, of a call for bids for a proposed contract or of an intention to award a contract to a pre-selected contractor (a directed contract advertised by an Advance Contract Award Notice - ACAN), in accordance with limited tendering reasons set out in international trade agreements, or in accordance with non-competitive tendering reasons set out in sections 506(11) and 506(12) of the Agreement on Internal Trade, or in accordance with non-competitive tendering reasons set out in section 6 (excluding section 6.1) of the Government Contracts Regulations (GCRs)
and where

1. in the case of a call for bids, the lowest bid or the bid that offered the best value, as set out in the evaluation criteria in the bid solicitation and as determined by the contracting authority, was accepted;

2. in the case of a call for bids where only one bid, compliant with mandatory criteria set out in the bid solicitation was received, fair value to the Crown, as determined by the contracting authority, was obtained; or

3. in the case of an ACAN, no valid indications of interest or valid challenges to the proposed award were received within the prescribed period of no less than 15 calendar days.

OR

(B) giving public notice, using traditional bidding procedures (such as a suppliers' list, etc.) and in a manner that is consistent with generally accepted trade practices, of a call for bids for a proposed contract,
and where

1. in the case of a call for bids, the lowest bid or the bid that offered best value, as set out in the evaluation criteria in the bid solicitation and determined by the contracting authority, was accepted, or

2. in the case that only one bid, compliant with the mandatory criteria set out in the bid solicitation was received, fair value to the Crown, as determined by the contracting authority, was obtained.

2.4 Section 6 of the Government Contracts Regulations specifies that a contracting authority may enter into a contract without soliciting bids where

(a) the need is one of pressing emergency in which delay would be injurious to the public interest;

(b) the estimated expenditure does not exceed

(c) the nature of the work is such that it would not be in the public interest to solicit bids; or

(d) only one person is capable of performing the contract.

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

A. The appropriate Minister, as defined in paragraph (a), (a.1) or (b) of the definition "appropriate Minister" in section 2 of the FAA, as follows:

(a) with respect to a department named in Schedule I, the Minister presiding over the department,


(b) with respect to a commission under the Inquiries Act, the Minister designated by order of the Governor in Council as the appropriate Minister.

B. A departmental corporation named in Schedule II to the FAA, or

C. The National Capital Commission (listed in Schedule III).

The Government Contracts Regulations apply to all contracts except

(a) a contract entered into by the National Film Board;

(b) a contract for the construction of buildings entered into under the Veterans' Land Act;

(c) a contract entered into under the Indian Act that involves Indian moneys as defined in that Act;

(d) 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, or

(e) a contract for the fit-up of an office or a residential accommodation where the contract for the fit-up is part of a transaction authorized pursuant to the Federal Real Property Act or its Regulations made thereunder.

(f) arrangements entered into under an Interchange Canada Agreement.

In addition, the Treasury Board (TB) has given approval to exempt the Canadian Security Intelligence Service from TB reporting requirements.

In 1999, the total value of positive amendments (i.e., those that result in an increase in the contract value) was $2,445.4 million. The total value of negative amendments (i.e., those that result in a decrease in the contract value) was $241.0 million. The total value of net amendments was $2,204.4 million. However, the 1999 data on contract awards include all contract amendments of the National Capital Commission. In addition, the 1999 data on contract amendments carried out by the Department of Finance and Treasury Board Secretariat are not available.