Tips on Selling to the Federal

Government

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Office of Small and Medium

Enterprises

• OSME was created to support small

and medium enterprises through the

federal procurement process.

• Role is to engage, assist and inform

SMEs on how to sell goods and

services to the Government of

Canada.

• OSME will work to reduce barriers to

ensure fairness in the process.

Engage Assist

Inform Reduce Barriers

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Opportunities for SMEs

• One of the largest buyers of goods and

services in Canada.

• Buys billions of dollars of a wide range of

goods and services each year.

• Opportunities for contracts exist ranging

from hundreds to billions of dollars.

• Small and Medium Enterprises received

approximately three-quarters (more than

14,000 of the close to 18,000 contracts)

awarded annually to suppliers in Canada,

by PWGSC.

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Procurement Under $25,000 • Purchases under $25,000 are considered low-

dollar value.

• Many departments and agencies have the

authority to buy goods valued at $25,000 or less,

with higher values for services.

• Suppliers deal directly with end users. Suppliers

may be identified through networks and research

as well as various federal supplier registration

systems.

• Building relationships becomes increasingly

important

Access

Competition

Fairness

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Why Build Relationships?

• Connect with officials in departments

and agencies to learn about what

directions their department's

procurement may be heading.

• Let the PWGSC contracting authority

responsible for your particular good

or service know what you have to

offer.

• To distinguish yourself from the

crowd.

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Know Your Business and Know

Your Clients • What does your research tell you about your end user's

needs?

• What unique features can you

emphasize?

• Who are the appropriate points of contact outside and/or

inside government?

• Do you want to be the prime or

subcontractor?

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The Government Electronic

Directory Service (GEDS)

• The Government

Electronic Directory

Services provides a

directory of all federal

public servants across

Canada, except

employees of the

Department of

National Defence,

RCMP, the Canadian

Security Intelligence

Service.

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Competitive Procurement over $25,000

• Procurement of goods and services over

$25,000 is done through the solicitation of bids

and quotes from potential suppliers using a

variety of methods.

• Tenders on the Buyandsell.gc.ca website will

show what method of procurement is being

used and will outline the solicitation documents.

• The four most commonly used are:

• An Invitation to Tender (ITT)

• A Request for Proposal (RFP)

• A Request for Standing Offer (RFSO)

• A Request for Supply Arrangement (RFSA)

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Buyandsell.gc.ca

• Created as the authoritative source for federal

government procurement information, including:

• Procurement policies and guidelines;

• Past and current procurement data;

• Key procurement contacts in departments and

agencies;

• Government of Canada procurement

programs; and

• Information related to upcoming events and

seminars.

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Finding Opportunities

• Government of Canada departments and

agencies must use Tenders on

Buyandsell.gc.ca to advertise purchasing

requirements subject to trade agreements.

• Lists all current and past notices of

procurement.

• Suppliers do not need to register, data is able

to be browsed and searched through powerful

search capabilities.

• For suppliers, this means: how can I sell and

what can I sell?

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Trade Agreements Affecting Procurement

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$25,200 $80,400 $10,400,000

Goods Services Construction

$25,200 $100,000 $100,000

$200,900 $200,900 $7,700,000

North American Free Trade

Agreement (NAFTA)

Agreement on Internal Trade

(AIT)

World Trade Organization

Agreement on Government

Procurement (WTO-AGP)

Agreement

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Five Steps to Bidding

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Review the solicitation document

Decide whether to bid or not

Collect information about your bid

Prepare your bid document

Submit your bid

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Reviewing the Solicitation Document

• Follow the instructions and read all

the terms and conditions thoroughly.

• Ensure you address ALL of the

evaluation criteria: mandatory

requirements and point rated, as

applicable.

• Have a colleague review your

document before you submit it.

• Submit any questions to the

contracting authority prior to any

deadlines for questions.

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Decide Whether to Bid or Not

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?

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Decide Whether to Bid or Not

Should you partner with

another supplier?

Keep on the lookout for red flags.

Know your

competition.

Clarify any questions with the

contracting authority.

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Collect Information

• There may be times when you will need to

get hard-copy materials or samples.

• Check for bidder’s conference and site

visits.

• It is important to monitor the solicitation for

any amendments. You can bookmark the

webpage of the tender notice and return

to your bookmark to see the most current

information for the tender.

• You can also use web feeds to keep

yourself informed of amendments.

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Preparing Your Bid

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• When preparing your bid, be sure

to follow the format stipulated,

including signing that you have

accepted the Terms and

Conditions.

• This signature block is usually

found on the first page.

• You may be asked to provide

your bid in various separately

bound sections such as:

• a technical section;

• management section;

• financial section;

• and certifications.

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Asking Questions During the

Procurement Process

Once a statement of work is

being prepared, for fairness, you

may only communicate with the

contracting authority indicated in

the solicitation document.

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Submitting Your Bid

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Know when and where your bid is due. Check for

amendments to the deadline.

Sign the document and

include all required signed and completed certifications.

Ensure your proposal follows

the format requested.

Review your bid, then have

someone else review it too.

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Basis of Selection

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• Selection based on the lowest priced responsive bid

• Mandatory requirements must be met in order for the bid to be considered responsive

Lowest Priced

Responsive Bid

• 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

Best Overall Value

• 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

Highest Technical Bid

Within a Stipulated

Budget

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Best Practices for Bidding

• Read all terms and conditions thoroughly.

• Meet all mandatory criteria.

• Respond to all sections, regardless of point value.

• Provide the number of copies of your bid as

requested.

• Include all requested certifications.

• The contracting authority is your only point of

contact.

• Make sure to fill in and sign all required elements

within your bid.

• Follow the instructions completely and submit your

bid on time and to the right place. 21

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Best Practices for Bidding

• Organize your bid so that it is complete, concise and

precise.

• Include the following on the front page of your bid: The

reference number; Public Works and Government

Services Canada file number and the date; and the

name, address and phone number of your contact

person.

• Write an executive summary, paginate, and include a

table of contents.

• Pay attention to sections that may carry more points.

• Put your logo or business name on every page.

• Have fresh eyes do a quality review of your bid.

• After the contract has been awarded request a debrief.

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The Non-Competitive Approach

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• In cases such as copyright, licence or patent.

• For example: national security.

• Not considered cost effective to compete.

• Adjusted to $100,000 for architectural, engineering services as well as international development assistance projects.

• Delays could be injurious to public interest.

• Example: boats needed for an emergency evacuation.

Pressing Emergency

Cost not Exceeding $25,000

One Known Supplier

Not in Public Interest

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Build in Canada Innovation

Program (BCIP)

• Budget 2012 announcement made the Build in Canada Innovation Program permanent with the addition of a military procurement component.

• Is designed to assist Canadian businesses with innovative goods and services move their innovations from the laboratory to the marketplace.

• Suppliers can then use feedback provided to further refine their innovation as they move toward full commercialization.

• Supporting Canadian businesses. • Assisting in bridging the

“Pre-commercialization Gap”. • Providing real-world evaluations of

pre-commercial goods and services. • Improving the efficiency and

effectiveness of government operations.

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Calls for Proposals

MILITARY

• Through a competitive process, the government will procure pre-commercial innovative goods and services for testing and use in the federal government.

• Bidders are required to select either the Standard or Military component.

• Fully electronic submission process, supporting environment and national scope

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Include 80% Canadian content. Obtain minimum pass marks for “Advance on State of the Art”.

Be included in one of the 4 Standard Priority Areas.

• Calls for Proposals (CFP) tenders are posted on Buyandsell.gc.ca/tenders.

• All Proposals must meet the following Mandatory Criteria and pass the Screening Criteria of “Readiness” and “Commercialization Capacity”.

Calls for Proposals

Be included in one of the 6 Military Priority Areas.

Be valued at $500K or less (Applicable taxes and shipping extra).

Not have been sold commercially.

Be provided by Canadian bidders.

Show IP ownership or rights.

Be valued at $1 million or less (Applicable taxes and shipping extra).

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How Will a Proposal Be Evaluated?

INNOVATION Must demonstrate that the innovation is an advance on the state of the art.

Must demonstrate that the innovation provides financial and non-financial benefits to

Canadian society or the testing department.

BENEFITS

COMMERCIALIZATION

Must demonstrate that there is sufficient market potential for the innovation to sustain profitability. TEST PLAN

Must demonstrate that the test plan is well thought out with clear objectives, risk mitigation strategy and realistic timelines.

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Pre-qualified Innovations

• Top ranked proposals, by score, are pre-qualified until funding is exhausted.

• All bidders receive debriefings with evaluators’ comments and scores.

Example Rankings

Funding exhausted

Pre-qualified

Bid No. Score Financial Cost

from Proposal

Bid 63 180 $ $

Bid 210 180 $ $

Bid 151 177 $

Bid 311 172 $ $

Bid 3 168 $ $ $ $ $

Bid 451 167 $

Bid 397 162 $ $ $ $ $

Bid 117 157 $ $

Bid 297 147 $ $

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Contracting and Testing

A Defence Validation Committee, comprised of DND/CF personnel, will assist in matching innovations from the Military component only, by helping to identify potential testers within DND/CF.

• An Innovation Management team connects pre-qualified bidders with potential testing departments.

• Departments can express interest to test and provide feedback to suppliers.

• A contract for testing is negotiated and awarded once match is confirmed with testing department, and an acceptable test plan is determined

• Pre-qualified bidders are not guaranteed contracts.

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The BCIP Approach Multi-stage review process, including

private sector experts

All bidders receive

debriefings on their evaluation

Outreach raises

awareness

Contracting

and Testing

Debriefing /

Top-ranked

Pre-qualified

Businesses

participate in a

Call for Proposals

Fair, open and

transparent

evaluation Fully electronic process, supporting

environment and national scope

Supported by a national outreach

strategy

Feedback from testing is provided

to bidders

Outreach proactively supports matchmaking

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Contact Information for Questions

OSME Pacific

osme-bpme-pac@pwgsc.gc.ca

1-866-602-0403

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Mailing list

Want to hear from OSME, join our mailing list:

http://tpsgc-pwgsc1.fluidsurveys.com/s/ContactInfo/

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BCIP Contact Information

Program E-mail

Send inquiries to:

Innovation@pwgsc.gc.ca

Update List Subscribe to the BCIP update mailing list (on home page of program website)

Program Site For more information visit:

www.buyandsell.gc.ca/ innovation

Buy and Sell

Learn more on how to sell to the government at

www.buyandsell.gc.ca/

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OSME Contact Information Buyandsell.gc.ca National Infoline: 1-800-811-1148

Atlantic Region – Halifax

Telephone: 902-426-5677

Facsimile: 902-426-7969

osme-bpme-atl@pwgsc-tpsgc.gc.ca

Ontario Region – Toronto

Telephone: 416-512-5577

Toll free: 1-800-668-5378

Facsimile: 416-512-5200

ont.bpme-osme@pwgsc-tpsgc.gc.ca

Québec Region – Montréal

Telephone: 514-496-3525

Facsimile: 514-496-5891

QueBPME.QueOSME@tpsgc-pwgsc.gc.ca

National Capital Region – Gatineau

Telephone: 819-953-7878

Facsimile: 819-956-6123

RCNBPME.NCROSME@tpsgc-pwgsc.gc.ca

Western Region – Edmonton

Telephone: 780-497-3601

Toll free: 1-855-281-6763

Facsimile: 780-497-3506

osme-bpme-wst@pwgsc-tpsgc.gc.ca

Pacific Region – Vancouver

Toll free: 1-866-602-0403

Facsimile: 604-775-7395

osme-bpme-pac@pwgsc-tpsgc.gc.ca