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2016 Purchasing Activity Report

Introduction

The Government of Canada publishes statistics on purchases made and contracts entered into by federal departments and agencies. 2016 will be the last year for which the Purchasing Activity Report (PAR) is published. The Government of Canada has introduced new processes and promoted stronger transparency, accountability, and openness of contracting data that will replace this report. As of calendar year 2017, organizations have been required to publish their contracting activities over $10,000 and aggregate data on contracting activities below $10,000 on the Open Government Portal. The new process has merged the data elements of the PAR with those of the Proactive Disclosure of Contracts.

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 for the Crown and Canadians.

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 194,003 56.5 8,145,156 44.7
Services 133,663 38.9 7,759,816 42.6
Construction 15,795 4.6 2,302,825 12.6
Total 343,461 100.0 18,207,798 100.0
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 183,603 58.2 519,096 43.1
Services 118,637 37.6 604,973 50.3
Construction 13,095 4.2 79,200 6.6
Total 315,335 100.0 1,203,269 100.0
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 10,400 37.0 7,626,060 44.8
Services 15,026 53.4 7,154,844 42.1
Construction 2,700 9.6 2,223,625 13.1
Total 28,126 100.0 17,004,529 100.0

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 1 Note 1

ACAN: Advance Contract Award Notice

Return to table 1 note * referrer

Awards pursuant to public notice or invited competitive bids
Competitive awards
Electronic bidding 7,592 26.99 4,143,757 24.37
Traditional competitive 15,387 54.71 5,872,454 34.53
Total competitive awards 22,979 81.70 10,016,211 58.90
Net competitive amendments N/A N/A 3,836,011 22.56
Subtotal competitive awards, including amendments 22,980 81.70 13,852,222 81.46
ACANstable 1 note * 723 2.57 361,686 2.13
Net ACAN amendments N/A N/A 328,825 1.78
Subtotal competitive awards and ACANs, including amendments 23,702 84.27 14,360,063 84.45
Awards not pursuant to public notice or invited competitive bids
Non-competitive awards 4,424 15.73 1,291,436 7.59
Net amendments N/A N/A 1,353,029 7.96
Non-competitive awards, including amendments 4,424 15.73 2,644,465 15.55
Total contracts $25,000 and above 28,126 100.00 17,004,529 100.00
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 2,686 25.83 772,969 10.14
Traditional competitive 5,589 53.74 3,767,819 49.41
Total competitive awards 8,275 79.57 4,540,789 59.54
Net competitive amendments N/A N/A 798,049 10.46
Subtotal competitive awards, including amendments 8,275 79.57 5,338,837 70.01
ACANs 234 2.25 150,496 1.97
Net ACAN amendments N/A N/A 50,855 0.67
Subtotal competitive awards and ACANs, including amendments 8,509 81.82 5,540,189 72.65
Awards not pursuant to public notice or invited competitive bids
Non-competitive awards 1,891 18.18 895,135 11.74
Net amendments N/A N/A 1,190,736 15.61
Non-competitive awards, including amendments 1,891 18.18 2,085,871 27.35
Subtotal goods contracts $25,000 and above 10,400 100.00 7,626,060 100.00
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 3,824 25.45 2,091,601 29.23
Traditional competitive 8,470 56.37 1,490,540 20.83
Total competitive awards 12,294 81.82 3,582,141 50.07
Net competitive amendments N/A N/A 2,753,792 38.49
Subtotal competitive awards, including amendments 12,294 81.82 6,335,933 88.55
ACANs 482 3.21 208,308 2.91
Net ACAN amendments N/A N/A 94,876 1.33
Subtotal competitive awards and ACANs, including amendments 12,776 85.03 6,639,117 92.79
Awards not pursuant to public notice or invited competitive bids
Non-competitive awards 2,250 14.97 356,047 4.98
Net amendments N/A N/A 159,680 2.23
Non-competitive awards, including amendments 2,250 14.97 515,727 7.21
Subtotal services contracts $25,000 and above 15,026 100.00 7,154,844 100.00
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 1,082 40.07 1,279,187 57.53
Traditional competitive 1,328 49.19 614,094 27.62
Total competitive awards 2,410 89.26 1,893,281 85.14
Net competitive amendments N/A N/A 284,170 12.78
Subtotal competitive awards, including amendments 2,410 89.26 2,177,451 97.92
ACANs 7 0.26 2,883 0.13
Net ACAN amendments N/A N/A 424 0.02
Subtotal competitive awards and ACANs, including amendments 2,417 89.52 2,180,758 98.07
Awards not pursuant to public notice or invited competitive bids
Non-competitive awards 283 10.48 40,255 1.81
Net amendments N/A N/A 2,613 0.12
Non-competitive awards, including amendments 283 10.48 42,867 1.93
Subtotal construction contracts $25,000 and above 2,700 100.00 2,223,625 100.00

Notes to the 2016 Purchasing Activity Report

1. Objective

The objective of the 2016 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 at that time.

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.

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 .

This 2016 edition will be the final publication of the Purchasing Activity Report. For contracting activity data from 2017 onwards please refer to the Open Government Portal.

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 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 (i.e. the optimal balance of overall benefits to the Crown and to Canadians).

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 Financial Administration Act affirms Canada’s commitment to taking appropriate measures to promote fairness, openness, and transparency in the bidding process. The Act governs the spending of federal funds, and provides authority for the Treasury Board to set conditions on federal government contracting.

The Government Contracts Regulations (paragraphs 6(a) to 6(d)) permit a contracting authority to enter into a contract without soliciting bids under specific circumstances:

  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 policy requirements regarding annual reporting 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 2016, the total value of positive amendments (i.e., those that increased the contract value) was $5,851,103,016. The total value of negative amendments (i.e., those that decreased the contract value) was $428,520,133. The total value of net amendments was $5,422,582,883.

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 2016, there were 1,801,853 acquisition card transactions that had a total value of $878,570,259.82.

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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