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2014 Purchasing Activity Report

Introduction

Each year, the Government of Canada publishes statistics on purchases made and contracts entered into by federal departments and agencies.

The main objective of the Treasury Board Contracting Policy is for the Government of Canada to acquire goods and services and 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 to the Canadian people.

In addition, contracting is to be conducted in a manner that will

  • 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;
  • ensure the pre-eminence of operational requirements;
  • support long-term industrial and regional development and other appropriate national objectives; and
  • 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 continually strengthening and modernizing government procurement, and to ensuring government transparency, accountability, fiscal responsibility and ethical conduct.

In keeping with these objectives, since 2004, the government has required public notice of contracts of over $10,000. Lists of contracts and contract amendments for federal departments are available on the Proactive Disclosure website.

The government is also committed to ensuring that Canadians have appropriate information on government purchasing in a way that is cost-effective, efficient and transparent. Suppliers who wish to learn about doing business with the federal government should consult the Buyandsell.gc.ca website.

Overall Summary

Departments and Agencies Subject to the Government Contracts Regulations

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

Table 1. Contracts Above and Below $25,000: Total Number and Value, Including Net Amendments
Contract Type Number Per Cent of Total Number of Contracts Value (thousands) Per Cent of Total Value
Goods 198,931 58.3 4,502,706 15.8
Services 125,700 36.8 22,426,317 78.8
Construction 16,711 4.9 1,531,188 5.4
Total 341,342 100.0 28,460,211 100.0
Table 2. Contracts Under $25,000: Total Number and Value, Including Net Amendments
Contract Type Number Per Cent of Total Number Value (thousands) % Per Cent of Total Value
Goods 187,874 55.0 555,058 2.0
Services 112,654 33.0 655,454 2.3
Construction 14,915 4.4 72,727 0.3
Total 315,443 92.4 1,283,239 4.5
Table 3. Contracts $25,000 and Above: Total Number and Value, Including Net Amendments
Contract Type Number Per Cent of Total Number Value (thousands) Per Cent of Total Value
Goods 11,057 3.2 3,947,648 13.9
Services 13,046 3.8 21,770,863 76.5
Construction 1,796 0.5 1,458,461 5.1
Total 25,899 7.6 27,176,972 95.5

Detailed Summary

Departments and Agencies Subject to the Government Contracts Regulations

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

Table 4. Contracts Above $25,000: Total Number and Value, Including Net Amendments
Solicitation Procedure Number Per Cent of Total Number Value (thousands) Per Cent of Total Value

Table 1 Notes

Table Note 1

ACAN: Advance Contract Award Notice

Return to table note 1 * referrer

Awards Pursuant to Public Notice or Invited Competitive Bids
Competitive Awards
Electronic bidding 6,077 23.46 13,182,025 48.50
Traditional competitive 14,893 57.50 2,171,920 7.99
Total of competitive awards 20,970 80.97 15,353,945 56.50
Net competitive amendments N/A N/A 5,864,705 21.58
Subtotal of competitive awards, including amendments 20,970 80.97 21,218,650 78.08
ACANstable note 1 * 628 2.42 3,052,998 11.23
Net ACAN amendments N/A N/A 190,407 0.70
Subtotal of competitive awards and ACANs, including amendments 21,598 83.39 24,462,054 90.01
Awards Not Pursuant to Public Notice or Invited Competitive Bids
Non-competitive awards 4,301 16.61 2,238,699 8.24
Net amendments N/A N/A 476,218 1.75
Non-competitive awards, including amendments 4,301 16.61 2,714,918 9.99
Total of contracts $25,000 and above 25,899 100.00 27,176,972 100.00
Table 5. Goods Contracts Above $25,000: Total Number and Value, Including Net Amendments
Solicitation Procedure Number Per Cent of Total Number Value (thousands) Per Cent of Total Value
Awards Pursuant to Public Notice or Invited Competitive Bids
Competitive Awards
Electronic bidding 2,328 21.05 660,430 16.73
Traditional competitive 6,478 58.59 996,402 25.24
Total of competitive awards 8,806 79.64 1,656,832 41.97
Net competitive amendments N/A N/A 589,903 14.94
Subtotal of competitive awards, including amendments 8,806 79.64 2,246,735 56.91
ACANs 206 1.86 98,161 2.49
Net ACAN amendments N/A N/A 98,873 2.50
Subtotal of competitive awards and ACANs, including amendments 9,012 81.50 2,443,769 61.90
Awards Not Pursuant to Public Notice or Invited Competitive Bids
Non-competitive awards 2,045 18.50 1,274,440 32.28
Net amendments N/A N/A 229,438 5.81
Non-competitive awards, including amendments 2,045 18.50 1,503,878 38.10
Subtotal of goods contracts $25,000 and above 11,057 100.00 3,947,648 100.00
Table 6. Services Contracts Above $25,000: Total Number and Value, Including Net Amendments
Solicitation Procedure Number Per Cent of Total Number Value (thousands) Per Cent of Total Value
Awards Pursuant to Public Notice or Invited Competitive Bids
Competitive Awards
Electronic bidding 3,090 23.69 11,760,839 54.02
Traditional competitive 7,478 57.32 1,052,945 4.84
Total of competitive awards 10,568 81.01 12,813,785 58.86
Net competitive amendments N/A N/A 4,716,908 21.67
Subtotal of competitive awards, including amendments 10,568 81.01 17,530,693 80.52
ACANs 420 3.22 2,954,707 13.57
Net ACAN amendments N/A N/A 91,164 0.42
Subtotal of competitive awards and ACANs, including amendments 10,988 84.23 20,576,565 94.51
Awards Not Pursuant to Public Notice or Invited Competitive Bids
Non-competitive awards 2,058 15.77 950,346 4.37
Net amendments N/A N/A 243,952 1.12
Non-competitive awards, including amendments 2,058 15.77 1,194,298 5.49
Subtotal of services contracts $25,000 and above 13,046 100.00 21,770,863 100.00
Table 7. Construction Contracts Above $25,000: Total Number and Value, Including Net Amendments
Solicitation Procedure Number Per Cent of Total Number Value (thousands) Per Cent of Total Value
Awards Pursuant to Public Notice or Invited Competitive Bids
Competitive Awards
Electronic bidding 659 36.69 760,756 52.16
Traditional competitive 937 52.17 122,573 8.40
Total of competitive awards 1,596 88.86 883,329 60.57
Net competitive amendments N/A N/A 557,893 38.25
Subtotal of competitive awards, including amendments 1,596 88.86 1,441,222 98.82
ACANs 2 0.11 129 0.01
Net ACAN amendments N/A N/A 369 0.03
Subtotal of competitive awards and ACANs, including amendments 1,598 88.98 1,441,720 98.85
Awards Not Pursuant to Public Notice or Invited Competitive Bids
Non-competitive awards 198 11.02 13,913 0.95
Net amendments N/A N/A 2,828 0.19
Non-competitive awards, including amendments 198 11.02 16,741 1.15
Subtotal of construction contracts $25,000 and above 1,796 100.00 1,458,461 100.00

Notes to the 2014 Purchasing Activity Report

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 2014.

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

Lists of contracts and contract amendments for federal departments are available on the 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 the authorized federal reporting entities (see section 3). Because the data is unaudited, 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 to .

2. Procurement Policy Framework

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

As stated in the Treasury Board Contracting Policy, 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 to the Canadian people.

The 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 (paragraphs 6(a) to 6(d)) state 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 data in this report are from federal entities defined as contracting authorities in the Financial Administration Act and in the Government Contracts Regulations:

  1. the appropriate Minister, as defined in paragraph (a), (a.1) or (b) of the definition of appropriate Minister in section 2 of the Financial Administration Act;
  2. a department within the meaning of paragraph (a.1) of the definition of "department" in section 2 of the Financial Administration Act that has the legal authority to enter into a contract;
  3. a departmental corporation named in Schedule II to the Financial Administration Act;
  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. 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 of a call for bids for a proposed contract, using traditional bidding procedures in a manner that is consistent with generally accepted trade practices.
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 the Treasury Board's electronic bidding authority limits. For this reason, ACANs are grouped under "competitive awards" in the tables of this report.

5. Amendments

In 2014, the total value of positive amendments (i.e., those that increase the contract value) was $7,048,953,185. The total value of negative amendments (i.e., those that decrease the contract value) was $347,343,223. The total value of net amendments was $6,701,609,961.

6. 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 2014, there were 1,705,455 acquisition card transactions that had a total value of $776,548,181.

7. Other Excluded Items

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

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