Supply Manual Update
Synopsis - Version 10-1

1. Overview

This version of the Supply Manual was developed and released under the Supply Manual Update Project. The main goals of this project were:

• Pertinence – include new subject matter and delete outdated material
• Organization – reorganize the Manual to follow the normal procurement process
• Correction – correct errors and discrepancies
• Precision – clarify the language by using standard terminology
• Utility – increase usefulness of the Manual by inserting more hyperlinks and improving the search engine.

2. Chapters

The new Supply Manual is divided into 10 chapters and a Glossary. Chapters and chapter text are now organized to more closely follow the chronological order of the steps in the procurement process. Chapter numbering has now been changed as well for ease of reference. Readers will note that the numbering will often jump by 5 which allows for future insertions.

The organization of the chapters is described as follows:

1. Chapter 1, Public Procurement, provides an overview of the context and the legal framework for public procurement for the acquisition of goods or services, including construction.
2. Chapter 2, Defining the Requirement and Requisition Receipt, defines the requirement for the bid solicitation. While this is often the responsibility of the client department, Public Works and Government Services Canada (PWGSC) involvement is still important.
3. Chapter 3, Procurement Strategy, describes what the procurement strategy is and how the requirement will be satisfied.
4. Chapter 4, Solicitation Process, outlines the actual bid solicitation preparation and process. The various methods of solicitation and items that need to be included in the bid solicitation are found in this chapter.
5. Chapter 5, Evaluation and Selecting the Contractor, explains how to evaluate and select the contractor based on the bid solicitation.
6. Chapter 6, Approvals and Authorities, provides the details of the approvals that need to be obtained before awarding a contract.
7. Chapter 7, Award of Contracts and Issuance of Standing Offers and Supply Arrangements, relates to the award of contracts, issuance of standing offers and supply arrangements, debriefings, notification to unsuccessful bidders, and other related matters.
8. Chapter 8, Contract Management, offers different information on contract management. Non-exhaustive examples of this information are vendor performance, progress payments, subcontracting, warranty work, disputes and terminations.
9. Chapter 9, Special Procurements, details procurements where PWGSC has implemented special procedures applicable to particular commodities, situations, or identified clients or projects.
10. Chapter 10, Cost and Profit, is generally used when a contract is to be awarded on a non-competitive basis for non-commercial goods or services, or in the case of a competitive process for such goods or services, only one responsive bid is received, so price negotiations with this bidder may be required.
11. The Glossary includes definitions, terminology, and concepts, used throughout the Manual.

3. Cross Reference Document

A cross reference document is provided to identify the sections in the previous Supply Manual and the sections they have now been moved to in the new version.

4. Highlights of Changes

As this is a complete new manual with revised or new text for all subjects, it is not feasible to highlight all changes so the following sections form a summary of the significant changes.

4.1 Significant Additions

Some of the significant additions are identified as follows:

1. Canadian Commercial Corporation procedures added to Chapter 9 and other relevant chapters.
2. Industrial security procedures revised and updated.
3. Green procurement procedures have now been added for the first time.
4. Commodity management is now addressed with a link to further information.
5. The role and function of the Office of Small and Medium Enterprises (OSME) is now addressed, along with links to PWGSC procurement tools promoted by OSME.
6. Instructions have been added for the procurement strategy and the procurement schedule to emphasize the importance of early planning in the procurement process.
7. Text has been added or updated to reference or incorporate policy notifications (e.g. Task Authorization Contracts; Advanced Contract Award Notices; Fairness Monitors; Security in Contracts; Approval and Signing Authorities). Policy notifications fully incorporated will be moved to the archive list in the future.
8. Guidelines for file organization have been added.

4.2 Significant Revisions

All sections of the Manual have undergone revisions with more significant changes to the following:

1. Delegation of authorities have been completely updated in accordance with Policy Notification 87, Contract Approval and Signing Authority Limits.
2. The text related to Contracts with Former Public Servants has been revised for clarity.
3. Procedures related to Comprehensive Land Claims Agreements (CLCAs) and Procurement Strategy for Aboriginal Business (PSAB) have been extensively revised.
4. Many references to appropriate Standard Acquisition Clauses and Conditions Manual clauses have been added/updated.
5. All other policies have been updated to accurately reflect Treasury Board Policy.
6. Wording with respect to Advanced Contract Award Notice (ACAN) procedures was restructured and corrected to reflect current policies and practices.
7. Debriefing practices have been revised and updated.

4.3 Deletions

The following topics have been deleted:

1. Allowable over-commitments - A review of Treasury Board policies revealed that this is not a supported practice and contravenes section 32 of the Financial Administration Act.
2. Just in Time Approval Process (JITAP).
3. Truck Haulage Rates.
4. Informal Audit.
5. Supplier Reporting - The Client Engagement Sector no longer collects supplier reports on standing offer usage.
6. Memorandum of Understanding with Canada Post Corporation.
7. Division of Responsibilities documents between PWGSC and Canadian International Development Agency, as well as between PWGSC and Transport Canada.
8. A number of other texts or sections have been deleted and identified for future review, and any portions of valid instructions will be included in the appropriate chapter in a future revision.