BACKGROUNDER: COLLABORATIVE PROCUREMENT INITIATIVE WITH PROVINCES, TERRITORIES, MUNICIPALITIES AND ORGANIZATIONS

Context

For the first time, three levels of government and other organizations have joined together to increase their buying power and share common standing offers to buy certain products. This is one way the Government of Canada is modernizing procurement to generate meaningful economic and social benefits for Canada.

How it works

Through the collaborative procurement initiative, provinces and territories sign a user agreement with Public Services and Procurement Canada (PSPC) that brings together the purchasing power of federal, provincial, territorial and municipal governments, as well as hospitals, educational institutions and eligible organizations. By working together, governments and organizations can purchase goods more efficiently and with less administration while benefitting from rates negotiated by the Government of Canada. The agreement aims to save taxpayers’ money, reduce costs and make it easier for businesses to sell to multiple levels of government and expand their market.

To date, seven provinces and territories have signed an agreement with PSPC to access federal procurement tools: Prince Edward Island, New Brunswick, Nova Scotia, Newfoundland and Labrador, the Northwest Territories, Yukon and Ontario. Discussions are ongoing with others.

Examples

The Government of Canada worked with the Province of Prince Edward Island to establish the first joint standing offer for office supplies in 2016. Standing offers for tires and Motorola radios have also been put in place. The list of joint purchasing arrangements continues to expand, with 10 more commodities expected to be available this year, including laboratory supplies, packaging supplies, snowmobiles and all-terrain vehicles.

How to bid

Businesses can learn how to bid on upcoming collaborative procurement initiatives online.

Use of the standing offers is optional. Governments and organizations can choose to use these standing offers when it makes sense for them to do so. Eligible organizations in provinces and territories can visit Buyandsell.gc.ca to find information on available standing offers.