2013 Purchasing Activity Report

Departments and Agencies Subject to the Government Contracts Regulations

Numbers in the following tables may not add due to rounding.

Departments and Agencies Subject to the Government Contracts Regulations

Numbers in the following tables may not add due to rounding.

1. Objective

The objective of the annual Purchasing Activity Report is to provide a snapshot of the Government of Canada's purchasing activities, based on the government's policy framework in effect in 2013.

It is important to note that there is no statutory requirement for such a report. This report complements information on contracting statistics on the Buyandsell.gc.ca website.

As mentioned in the introduction to this report, lists of contracts and contract amendments for federal departments are available on the Government-Wide Reporting — Proactive Disclosure website.

Information on the Procurement Strategy for Aboriginal Business can be found on the Procurement Strategy for Aboriginal Business (PSAB) website.

Figures in this report have been derived from data provided by federal reporting entities (see section 3). Because the data is not audited, no warranty or other legal assurance as to the accuracy or completeness of this information is stated or can be implied. Any person making use of this information for any purpose does so at his or her own risk, and the Crown shall have no liability. This report covers government purchasing for the period January 1 to December 31, 2013.

2. Procurement Policy Framework

The main features of the Government of Canada's procurement policy framework that pertain to this report are set out in the following.

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

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.

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

• the need is one of pressing emergency in which delay would be injurious to the public interest;
• the estimated expenditure does not exceed
  • $25,000,
  • $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
  • $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;
• the nature of the work is such that it would not be in the public interest to solicit bids; or
• only one person is capable of performing the contract.

3. Reporting Entities

The data in this report are from entities defined as 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 of 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.

Although 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 the Government Contracts Regulations

The Government Contracts Regulations state that they apply to all contracts except the following:

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. a contract for the performance of legal services;
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 that facilitates the Crown's receipt of best value by using:

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

Traditional competitive:

A method of procurement that gives 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 under "Competitive Awards" in the tables in this report.

6. Amendments

In 2013, the total value of positive amendments (i.e., those that increase the contract value) was $5,334,067,690. The total value of negative amendments (i.e., those that decrease the contract value) was $998,327,840. The total value of net amendments was $4,335,739,851.

7. Acquisition Cards

The data in this report do not include transactions made through acquisition cards. Such cards are normally used for low-dollar-value purchases. In 2013, there were 1,612,035 acquisition card transactions that had a total value of $852,537,538.

8. Other Excluded Items

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