Seminar notes: Bidding on opportunities

Request for Proposal

• An RFP is a call for bids to supply goods or services
• It includes the specifications of the goods or services required, and describes the evaluation criteria that will be used to choose the winning bid
• For complex requirements, suppliers may be invited to propose a solution to a problem, requirement or objective
• A successful bid on an RFP results in a contract to deliver the goods or services as described

Request for Standing Offer

• A buyer may issue an RFSO to purchase goods or services on a repetitive basis
• If you qualify in the RFSO process, this means you agree to provide your good or service for a fixed price over a certain time frame
• The buyer issues a call-up to the pre-qualified supplier, which serves as a notice to deliver the goods or services

Request for Supply Arrangement

• A buyer may issue an RFSA when:
  • there is a need to purchase goods or services on a repetitive basis
  • there are variables such as statements of work or requirements that cannot be defined in advance
• Bids are solicited from pre-qualified suppliers for specific requirements

Similarities and differences of Standing Offers and Supply Arrangements

• They can both be national or regional
• They are both used for goods or services that are purchased regularly
• They are both used to create a pool of pre-qualified suppliers under set terms and conditions
• There is no obligation to purchase until a need arises
• Standing Offers:
  • contracted using "call ups"
  • prices are predetermined and fixed
• Supply Arrangements:
  • contracted using a competitive process among pre-qualified suppliers
  • prices are negotiable within a fixed ceiling price
  • buyers define specific requirements within the scope of the supply arrangement for each competitive process

Pre-qualify on Standing Offers and Supply Arrangements to sell to the public sector

• Under the Canadian Collaborative Procurement Initiative, public sector buyers can access some Standing Offers and Supply Arrangements
• Pre-qualified suppliers can sell goods or services to provinces, territories and others in the public service
  • sell to multiple levels of government
  • expand your market
  • save time in bid preparation
  • maximize value and scope for each opportunity
  • reduce supply risks
• For more information and to view the list of commodities available, visit Canada.ca/buying-together

Review the solicitation documents

• Follow the instructions and read all the terms and conditions thoroughly
• If you are uncertain about any aspects of the document, make sure to contact the contracting authority to get more details
  • submit questions in writing to the contracting authority before the deadline for questions
  • answers to all questions received will appear as amendments on the tender notice page
• Your only point of contact is the contracting authority indicated in the solicitation document

Overview of a solicitation document

• Part 1 – General information provides a general description of the requirement and identifies security requirements
• Part 2 – Bidder instructions contains instructions, clauses and conditions applicable to the solicitation
  • This includes information about site visits, bidders' conferences, applicable laws, as well as challenge and recourse mechanisms for suppliers
• Part 3 – Bid preparation instructions provides instructions on how to prepare a bid (e.g. formatting and layout, file types)
• Part 4 – Evaluation procedures and basis of selection describe the evaluation process and how the contractor will be selected. The evaluation criteria is the most important part of the solicitation document
• Part 5 – Certifications includes any certifications required to bid, such as employment equity requirements, certifications regarding former federal public servants and conflict of interest, as well as compliance with the government's Integrity Regime
  Note: In order to improve supplier accountability, Public Services and Procurement Canada (PSPC) has launched the Office of Supplier Integrity and Compliance, supported by the revised policy on ineligibility and suspension
  • This enhances the capacity to identify and respond to instances of supplier misconduct, including offences in different jurisdictions and non-criminal offences
  • For more information, visit Standards and oversight services
• Part 6 – Resulting contract clauses include the clauses and conditions that will apply to any contract resulting from the solicitation. This includes the period of contract, which indicates the amount of time to complete the work
  • For Standing Offers, Part 6 is divided into 2 parts: 6A and 6B. Part 6A includes the Standing Offer
  • Part 6B includes the clauses and conditions which will apply to any contract resulting from a call-up
• Annexes can include any specifications that aren't covered in the other sections of the solicitation, such as a detailed statement of work, security requirements, non-disclosure agreements, details about the evaluation criteria, geographic regions, corporate profiles and authorization letters

Overview of a solicitation document issued by Public Services and Procurement Canada

• As of June 2024, PSPC solicitations follow a modernized approach as part of the Contract Modernization Initiative
• You may continue to see conventional documents posted by other government departments and agencies. Over time, all Government of Canada solicitations will follow this standard approach
• New contractual documents include all terms spelled out within the document. The archived Standard Acquisition Clauses and Conditions Manual is available on CanadaBuys for reference
• In this new format, the top sections (Bid solicitation, Bid requirements, Bidder requirements) contain critical information a bidder needs to know and understand regarding what the government wants to buy. This information can help determine whether your business is interested in and capable of meeting the requirements
• The next two sections (Bid submission and Communication) provide information on how to submit a bid, and how the government and suppliers will interact during the bid solicitation process
• The technical and financial proposal sections provide the details of what is technically and financially required of the supplier
• Evaluation procedures and Basis of selection explain how the successful bidder will be selected
• The technical and financial evaluation sections provide further details on how the technical and financial proposals will be evaluated
• Attachments and annexes contain specific information that is essential for understanding and completing the bidding requirements

Annex A—Statement of Work

• Sets out the nature of the required good or service
• Provides a narrative description of the work required and stipulates the deliverables or services required to fulfill the contract
• Identifies and summarizes the various phases of the project

Other possible annexes: Security requirements checklist

• There may be multiple annexes attached to the solicitation document
• For example, a security requirements checklist is included as an annex in solicitations with security requirements

Security requirements

• A security clearance is necessary when a Government of Canada contract requires your personnel to access classified or protected information, assets or sensitive sites
• Security requirements are identified in the tender opportunity
• For questions about clearance processes and requirements, contact the Contract Security Program
• For questions about the security requirements of a specific opportunity, contact the contracting authority listed in the solicitation document
• For more information: Security requirements for contracting with the Government of Canada

Create a bidding roadmap

• Identify the steps required to bid
• Prioritize and determine the sequence of steps to follow, before and after bidding
• Estimate level of effort and amount of time to complete the steps
• Identify your decision point for bidding:
  • What will determine whether you choose to bid?
  • When is the best time to decide?

To bid or not to bid?

• Is your business capable?
• Does your business meet the evaluation criteria?
• Are the terms and conditions acceptable?
• Is your business able to accept the pricing method?
• Should you partner with another supplier?

Note: Finding out who has been awarded contracts in the past can help you research your potential competitors. Learn more about searching for award notices and contract history on CanadaBuys.

How are bids evaluated?

• Bids are normally evaluated on technical merit and overall best value, as described in the Basis of Selection section of the solicitation document
• It is important to understand the evaluation criteria so you know how to prepare a bid that clearly demonstrates you meet the requirements, and stand out from competitors
• The evaluation may be based on:
  • mandatory technical criteria only
  • point-rated technical criteria only
  • a combination of mandatory technical criteria and point-rated technical criteria
• A compliant bid submission does not guarantee a contract award. Contracts are awarded to the most competitive bidder based on the evaluation of all competing bids, taking into consideration all evaluation criteria

What are mandatory criteria?

• You must fulfill all mandatory criteria in order to move forward in the evaluation process
• Mandatory criteria are evaluated objectively on a simple pass or fail basis
• Examples include: accessibility features, financial stability, essential performance characteristics of equipment, and performance specifications related to services

What are point-rated criteria?

• Used to evaluate the value added factors over and above the mandatory requirements
• Includes criteria such as: strategy, principles, methodology, company, team or resource experience, and facilities and equipment
• Ask the contracting authority if you have any questions about point rating

Selection of the winning bid

• Low Priced Responsive Bid
• Low Priced Responsive Bid
  • selection based on the lowest priced responsive bid
  • mandatory requirements must be met in order for the bid to be considered responsive
• Best Overall Value
  • selection is often based on lowest evaluated price per point (as determined using a point-rated scale)
  • mandatory and point-rated technical criteria will be evaluated
• Highest Technical Bid Within A Stipulated Budget
  • selection is based on the highest rated technical bid within a stipulated budget
  • bidders are invited to propose a solution to a problem or a method of achieving an objective within a stipulated budget

Note: You can consult the Practitioner's Guide for Procurement Pricing to learn more about the factors that affect pricing decisions in line with the objectives and priorities identified for each procurement. These factors include market maturity and risk factors related to the goods or services being purchased, for example.

The table illustrates an example where all three bids are responsive and the selection of the contractor is determined by a 60/40 ratio of technical merit and price, respectively. The total available points equals 135 and the lowest evaluated price is $45,000 (45).

• Lowest priced responsive bid is Bidder 3
• Highest responsive combined rating of technical merit and price (60/40 ratio) is Bidder 1

Prepare your bid: The technical section

• Evaluate the current situation and the need for the project
• Describe the objectives, reasons and benefits for carrying out the contract as proposed
• Describe your work plan, methodology and techniques
• Discuss feasibility, anticipated degree of success, potential challenges and contingency plans
• Indicate your plan for specific tasks and deliverables, and the schedule for completion or delivery
• Respond to all requirements:
  • detail how each requirement will be met
  • reference past projects or deliverables that support your ability to provide the good or service
• Respond to all evaluation criteria:
  • use plain language
  • each bid is evaluated solely on its contents
    • don't rely on a past interaction with a contracting authority as the evaluators will not be able to consider any information outside your submitted bid

Prepare your bid: The management section

• Introduction
  • introduce your team
  • introduce any sub-contractors
  • demonstrate how all members meet the required qualifications
• Documentation
  • include any supporting information, such as resumes
  • support how you will meet quality standards

Prepare your bid: The financial section

• Firm Fixed Price
  • used when possible to predict the costs involved
  • must complete work before being paid
• Cost Plus Contracts
  • used when there is uncertainty in cost or for longer projects
  • can be used to offset potential cost risks

Prevent bid rigging

• Bid-rigging occurs when businesses arrange amongst themselves who will win a particular contract instead of competing against each other. For example:
  • agreements on how to price/write bids, what type of contracts each business should "win" or the order in which contracts should be "won"
  • agreements to withdraw a bid or to avoid bidding so that certain competitors win contracts in certain areas, product markets, or with certain customers
  • intentionally submitting a non-competitive or incomplete bid so another business can win
• Anyone can anonymously report suspicious activity in federal contracting including suspected cheating, fraud, collusion and corruption
• For more information, go to Report cheating in federal government contracts

How to stand out from the competition

• Organize your bid so that it is complete, concise and precise
• Include the following on the front page of your bid: a reference number, the solicitation number, the date, and contact information for your business
• Write an executive summary of the bid and include a table of contents
• Put your logo or business name on every page
• Pay particular attention to sections that may carry more points
• Provide every relevant detail to demonstrate how your business is qualified and why you should be selected
• Have fresh eyes do a quality review of your bid

Before you submit your bid…

• Read all terms and conditions thoroughly
• Meet all mandatory criteria
• Respond to all sections, regardless of point value
• Follow the bid preparation instructions completely, including submitting the correct number of copies of your bid and all of the required certifications
• Make sure to fill in and sign all required elements within your bid (e.g. certifications)
• Verify the method and deadline for submission.
  • tender opportunities posted to the electronic procurement solution require bid submission through SAP Ariba. Each procurement opportunity will clearly detail the delivery method to submit a bid. Learn about responding to opportunities on SAP Ariba
  • for some tenders, bids can be submitted using Canada Post's Connect online service. If this method is available and you plan to use it, be sure to create your Connect account in advance so you're ready to submit your bid on time
• Contact the contracting authority if you have any questions

What happens after you submit a bid?

• Watch for communications from the contracting authority and respond as soon as possible
• Follow the tender notice for amendments
• Learn about following a saved search or tender notice on CanadaBuys
• You can modify and re-submit your bid until the tender is closed

Dispute resolution

• If a dispute cannot be resolved through the contracting authority, there are other options
• Learn more about Procurement dispute management and complaint processes