Procurement Guidelines

• 1. General Information
  • 1.1 Threshold
  • 1.2 MERX
• 2. Requirement Definition
  • 2.1 Statement of Work (SOW)
  • 2.2 Project Duration
  • 2.3 Intellectual Property Rights
  • 2.4 General Conditions Professional Services Medium Complexity
  • 2.5 Security
• 3. Sourcing
  • 3.1 PS Online Searches
  • 3.2 Search Results
• 4. Competitive versus Non-competitive Requirements
  • 4.1 Requirements not subject to Trade Agreements
  • 4.2 Requirements valued at less than $25,000
  • 4.3 Requirements valued at $25,000 or higher
• 5. Solicitation Preparation
  • 5.1 Technical or Project Authority
  • 5.2 Contracting Authority
  • 5.3 Bidding Period
  • 5.4 Deliverables
  • 5.5 Evaluation Criteria
  • 5.6 Evaluation Methodology
  • 5.7 Evaluation Team
  • 5.8 Method of Payment
• 6. Enquiries during Solicitation Period
  • 6.1 Documentation
  • 6.2 Requests for Clarification
  • 6.3 Requests for Information
• 7. Evaluation of Proposals
  • 7.1 Resource(s) Offered
  • 7.2 Alternate or Substitute Resources
  • 7.3 Additional Resources
  • 7.4 Evaluation of Mandatory Criteria
  • 7.5 Evaluation of Point Rated Criteria
• 8. Selection of Winning Proposal
  • 8.1 Ranking of Proposals
  • 8.2 Per Diem Rates
  • 8.3 Security
• 9. Negotiations
  • 9.1 Proposals
  • 9.2 Additional Costs
• 10. Re-Tendering
  • 10.1 No Bids Received
  • 10.2 No Responsive Bids Received
  • 10.3 Re-tendering a Solicitation
  • 10.4 Canceling a solicitation
• 11. Contract Preparation
  • 11.1 Contract Price
  • 11.2 Resource(s) Performing the Work
  • 11.3 Basis of Payment
  • 11.4 Limitation of Expenditure
  • 11.5 Method of Payment
• 12. Debriefings
• 13. Contract Administration
• 14. Other

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1. General Information

1.1 Threshold

The Professional Services (PS) Online threshold is $76,600 (effective 2010-01-01) which includes Goods and Services Tax (GST), Harmonized Sales Tax (HST), Travel and Living Expenses (if applicable). This threshold applies to the value of the entire requirement related to the project and includes the total value of all contracts awarded (in relation to the project) and the aggregate value of all subsequent amendments.

Note: Whenever reference is made to the value of a contract, amendment or requirement the value includes Goods and Services Tax (GST), Harmonized Sales Tax (HST) and Travel and Living Expenses (if applicable).

1.2 MERX

MERX is not applicable to PS Online. Therefore, posting of a Notice of Proposed Procurement (NPP) or Advance Contract Award Notice (ACAN) on MERX is not required.

2. Requirement Definition

2.1 Statement of Work (SOW)

In accordance with Treasury Board policy (section 16), the Statement of Work (SOW) or requirements description should clearly describe the work to be carried out, the objectives to be attained and the time frame. The SOW should identify the specific stages of the work, their sequence, and their relationship to the overall work in general and to each other in particular. The type, magnitude and complexity of the work will determine the degree of detail required.

A Statement of Work (SOW) or requirements definition is required for all procurements regardless of value. The SOW or requirements definition must be developed prior to conducting the PS Online search as it is used to determine the search criteria used (including skill and linguistic requirements, security clearance, etc.) to conduct the PS Online search.The SOW or requirements definition must, as a minimum:

1. Clearly describe the work required;
2. Clearly describe specific tasks, where necessary:
3. Clearly describe the deliverables;
4. Clearly state the milestone date associated with each deliverable, where necessary; and
5. Clearly state the expected contract completion date.

A copy of the SOW or requirements definition must be maintained on the contract file and must be signed and dated so that it is clear who the author was and when the document was created.

Note: The degree of detail required in the SOW or requirements definition is commensurate with the nature, sensitivity and complexity of the work required, the value of the work required, etc.

2.2 Project Duration

The "project period" or the "work schedule" for the requirement must be identified. Any deadlines by which deliverable items must be submitted or any phase of the work that must be completed by a given date must be stated.

Notwithstanding the specific approval requirements of the Department or Agency, approval of the project duration only (not the procurement) at the Director level or above is required for projects whose duration exceeds 100 working days. The requirement for approval at the Director level or above does not affect the signing authority level appropriate for the value of the contract in question.

Note: A project whose duration has an expected level of effort, from a single resource, in excess of 100 working days can possibly create an employer/employee relationship. Therefore, senior management must be made aware of such projects.

2.3 Intellectual Property Rights

The Contracting Authority shall ensure that the Treasury Policy on ownership of Intellectual Property is met. The following is an excerpt from the Treasury Board Policy on Intellectual Property:

"The primary objective of Crown Procurement Contracts is to receive the deliverables contracted for, and to be able to use those deliverables, and any Intellectual Property arising by the virtue of such Crown Procurement Contracts for Government of Canada activities." The Government of Canada's Contracting Policy further states that officials are to achieve best value for money and to seek the optimal balance of benefits to the Crown and the Canadian people through its purchases. As part of this commitment, the Government of Canada has made specific provisions for social and economic development objectives to be pursued through procurement.

One of the socio-economic objectives pursued through Crown Procurement Contracts is the commercialization of Intellectual Property by the private sector to create jobs and generate economic growth. The revised policy on Title to Intellectual Property Arising Under Crown Procurement Contracts sets out a framework for the Intellectual Property arising by virtue of such Crown Procurement Contracts to be vested in the Contractor, while ensuring the Crown's ability to use the deliverables contracted for and the Intellectual Property for all Government of Canada activities, including future contracts and procurements, and to protect the broader public interest."

For additional information on the Intellectual Property visit the Treasury Board website.

2.4 General Conditions Professional Services Medium Complexity

The following clauses must be included in all solicitation and contract documents that result from using the PS Online tool:

The General Conditions Professional Services Medium Complexity, Supplemental General Conditions applicable to this requirement and Clauses of General application set-out in the Trading Partner Agreement shall form part of this Request for Proposal.

Note: The use of the above clauses is required regardless of whether or not the PS Online document template is used or departmental or agency specific document templates are used.

2.5 Security

As per the Treasury Board Security manual, when a contract is awarded for a period of more than 6 months, individuals who will have regular access to government premises must, as a minimum, hold a Reliability screening.

Should a specific level of security be required, the following information, in writing, must be obtained from the Contracting Authority's Departmental Unit Security Officer (USO):

• Company with whom the security clearance is with.
• Security clearance level.
• Expiry date for the security clearance (this is preferred) or date that it the security clearance was issued.

The Contracting Authority will be required to provide their Departmental USO with the following information:

• Name (first and last name) of the resource.
• Date of Birth.
• Security clearance number (if available).

Should the Contracting Authority not know who their Departmental USO is, this information can be obtained by contacting the Canadian and International Industrial Security Directorates (CIISD) Hotline at 613-948-4176 or by email at ncr.cissd@pwgsc-tpsgc.gc.ca.

Note: CIISD will only accept requests for security clearance information that originate from a Departmental USO.

3. Sourcing

3.1 PS Online Searches

PS Online search criteria used (experience required, security requirement, language requirements, skills selected, etc.) must be pertinent to the type, magnitude and complexity of work to be performed (as described in the Statement of Work). In addition, the search criteria used shall not be selected so as to unduly limit competition. That is, inclusion of search criteria (experience, language or security requirements, skills selected, etc.) that is not pertinent to the SOW but has been included in the PS Online search in order for the search results to return a single candidate is not allowed.

PS Online searches shall not be refined such that the process results in the return of a single candidate.

Note:

1. The conducting of a "competitive" search, using PS Online, does not constitute a competitive procurement. For a procurement to be deemed competitive, at least three suppliers must be invited to bid.
2. When performing a "competitive" or "general" search (a search conducted where the intent is for the search to return multiple potential resources) the Contracting Authority must use the highest number of years of experience deemed necessary for the requirement in their search criteria. For example, in order to perform the work described in a Statement of Work (SOW), the resource needs 3 years of experience in project management, 5 years of experience in business transformation and 10 years of experience in risk management, then the search should be based on the resource having 10 years of experience.

For example, In order to perform the work described in a SOW, if the resource requires 3 years of experience in Project Management, 5 years of experience in Business Transformation and 10 years of experience in Risk Management. The search should be based on the resource having 10 years of experience.

3.2 Search Results

When determining a list of resources and suppliers to invite, the Contracting Authority shall not bypass one or more suppliers, who can offer a resource at a lower per diem rate, in order to invite a supplier at a higher per diem rate, as this is considered to be a restriction of competition.

For example, if a PS Online search conducted results in ten (10) resources from ten (10) companies, and the Contracting Authority wishes to invite the eighth ranked resource, then the first through seventh ranked resources must also be invited.

In exceptional circumstances, the Contracting Authority may elect to not invite one or more lower cost suppliers that resulted from a PS Online search and invite one or more suppliers that have a higher per diem rate. As this is considered to be a restriction in competition and contravenes Treasury Board policy, a detailed justification must be documented and placed on the contract file.

The justification for bypassing a specific resource from a company must be based on specific, documented cases of past performance that, should a contract be awarded to that specific resource there would exist significant risk of non-performance. Examples include:

1. Termination of one or more contracts for default.
2. History of failing to meet deadlines in previous contracts.
3. History of producing unacceptable or marginally acceptable work.

In all cases, there must be objective evidence to support any or all of the above examples.

Note: All resources performing the work covered by any contract/amendment issued pursuant to PS Online must be registered with PS Online within the supplier's PS Online portfolio of resources prior to contract/amendment award.

4. Competitive versus Non-competitive Requirements

4.1 Requirements not subject to Trade Agreements

For requirements that are not subject to any of the trade agreements (AIT, NAFTA, WTO, etc.), competitive bids must be sought unless one of the four exceptions outlined below apply.

1. The need is one of pressing emergency in which delay would be injurious to the public interest;
2. The estimated expenditure is less than $25,000;
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 or firm is capable of performing the work.

4.2 Requirements valued at less than $25,000

In accordance with Contracting Policy Notice 2007-4 (http://publiservice.tbs-sct.gc.ca/pubs_pol/ dcgpubs/ContPolNotices/
2007/0920_e.asp), dated 2007-09-20, any use of the four GCR (Government Contract Regulations) exceptions to competitive bidding (including the second one above) should be fully justified by the contracting authority, with the appropriate documentation placed on the contract file.

The justification should not be solely based on the fact that the requirement is less than $25,000. It should also include the rationale for selecting a specific company and resource. This is especially important when a PS Online search is conducted that returns multiple potential resources and companies and other than the lowest resource is selected.

Note: For requirements where bids are not being solicited, the Contracting Authority MUST still require that the proposed Contractor submit a proposal. As a minimum, the proposal must state who the resource or resources are that are being offered, the per diem rate or rates applicable, dates for completion of the various tasks and any other information that is pertinent to the work required. The proposal from the proposed Contractor MUST be in writing and placed on the contract file.

4.3 Requirements valued at $25,000 or higher

If the estimated value of the requirement is $25,000 or higher and competitive bids are not being solicited, the rationale for not soliciting competitive bids must be adequately documented and on file.

1. The conducting of a "competitive" search, using PS Online, does NOT constitute a competitive procurement. For a procurement to be deemed competitive, at least three suppliers must be invited to bid.
2. The conducting of a search, using PS Online that results in the return of only a single resource that meets the search criteria can be used as a basis for substantiating a non-competitive procurement. Specifically, a search returning only a single candidate meets the requirements of Treasury Board policy 10.2.1d (i.e. only one person or firm is capable of performing the work).

Note: For requirements where bids are not being solicited, the Contracting Authority MUST still require that the proposed Contractor submit a proposal. As a minimum, the proposal must state who the resource or resources are that are being offered, the per diem rate or rates applicable, dates for completion of the various tasks and any other information that is pertinent to the work required. The proposal from the proposed Contractor MUST be in writing and placed on the contract file.

5. Solicitation Preparation

5.1 Technical or Project Authority

The Technical or Project Authority is the person responsible for all matters concerning the technical content of the work required under the contract. Any changes to the scope of work are to be discussed with the Technical or Project Authority, but any resulting change can only be confirmed by a contract amendment issued by the Contracting Authority.

5.2 Contracting Authority

The Contracting Authority is the person responsible for all matters related to the procurement and all contractual matters arising from any contracts issued.

5.3 Bidding Period

Solicitation documents sent to bidders electronically (by facsimile or by email) must have a minimum bidding period of five (5) working days. Solicitation documents sent to bidders by mail must have a minimum bidding period of ten (10) working days.

5.4 Deliverables

All deliverable items should be listed, including the required format and delivery dates. Required meetings, status reports, data or documents to be provided and the time frame that applies to them should be identified, if applicable.

The identification of format and deadlines will facilitate inspection at a later date as to whether the Contractor met the requirements within the predetermined time estimate.

5.5 Evaluation Criteria

The evaluation criteria, used to evaluate proposals received, must be clearly indicated in the solicitation document. It must enable the evaluation team to measure the competence of the resources offered and the value of the bidder's proposal.

a) Mandatory Evaluation Criteria

Certain evaluation criterion may be designated as mandatory. Bidders will be obliged to meet each of these criterions in order for the proposal to be evaluated further. Should a bidder fail to meet one or more of the mandatory requirements, the Bidder must be declared non-responsive (regardless of whether or not they are the sole bidder) and the proposal submitted not be considered further.

b) Point Rated Evaluation Criteria

If point rated criteria are used in the evaluation of technical portion of the proposal, the Contracting Authority:

1. Must ensure that the criterion specified, are pertinent to the work described in the SOW or the skills used in the PS Online search or both as the case may be.
2. Must ensure that each criterion is clearly described and measurable by the evaluation team. When terms such as "significant" or "experience in", etc. are used, the criterion must describe what is meant by the term or how it will be measured.
3. Must ensure that the maximum score for each criterion is reasonable when compared to the other criterion and to the total maximum score.
4. Should exercise caution when stating a minimum score required for specific criterion as a high minimum score can be viewed as being restrictive. Rationale for each minimum score per criterion should be documented on the contract file.
5. Should state a minimum total score required. However, caution needs to be exercised when setting the minimum total score required as a high minimum score can be viewed as being restrictive. Rationale for the minimum total score should be documented.

5.6 Evaluation Methodology:

According to Treasury Board policy - "The objective of government procurement contracting is to acquire goods and services and to 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 the Canadian people."

The evaluation methodology specified in the solicitation document is used to determine which proposal represents best value to the Crown. The following are two examples of evaluation methodologies that meet TB policy:

a) Lowest Price Method

From the list of proposals that meet the mandatory requirements, the bidder offering the lowest price is awarded the contract.

b) Lowest Price per Point Method

From the list of proposals that meet the mandatory requirements, each evaluation team member assigns points for each of the point-rating criterion specified in the proposal document. Typically, proposals must meet a minimum score in order to be considered further. Proposals that fail to achieve the minimum score required are not considered further. The price quoted in proposals that meet the minimum required score, are divided by the number of points assigned to determine the price per point. The bidder that offered the lowest price per point is awarded the contract.

The Contracting Authority must include, in the solicitation document, an example that demonstrates how the price per point is calculated and how the winning bid will be selected. If minimum points are required per criterion or a minimum total score is required or both, the Contracting authority should consider providing an example or examples of how these requirements would be applied.

Note: If an evaluation methodology other than those described above, the rationale for how the Treasury Board policy is being met must be fully documented.

5.7 Evaluation Team

A team of at least three (3) individuals should evaluate proposals. They are responsible for the application of the evaluation criteria specified in the solicitation document. The Contracting Authority, should whenever possible, not be part of the evaluation team.

5.8 Method of Payment

The solicitation document must stipulate the method of payment to be used. The preferred method is based on payment upon receipt of the deliverables specified in the solicitation document. Other methods of payment, namely progress payments or advance payments, can be considered. Contracting Authorities should consider specifying progress payments or advance payments only if all the conditions specified in Treasury Policy section 12.2.4 apply.

6. Enquiries during Solicitation Period

6.1 Documentation

All inquires received from bidders must be in writing and maintained on the contract file.

6.2 Requests for Clarification

If the Contracting Authority receives a request for clarification during the bidding period, the request itself along with the response provided must be supplied to all bidders.

Note: The Contracting Authority must ensure that neither the question raised nor the answer provided impart information about the bidder who initiated the request.

6.3 Requests for Information

The Contracting Authority shall not provide information that could jeopardize the competitive bidding process. Examples of information that could jeopardize the competitive bidding process include:

• Providing the names of the other companies invited to bid.
• Providing the number of companies invited to bid.
• Providing estimated level of funding available for the project.
• Confirming that the work required is a follow-up to a previous project.

7. Evaluation of Proposals

7.1 Resource(s) Offered

All proposals received, regardless of whether or not the procurement is competitive or non-competitive, must clearly state the name of each resource offered.

7.2 Alternate or Substitute Resources

An alternate resource is defined as a resource that is being offered in a proposal from a supplier, who is not the same one that resulted from the original PS Online search. If a bidder offers an alternate resource in the proposal submitted, the alternate resource may be considered provided that:

• The resource is PS Online registered within the supplier's PS Online portfolio of resources prior to contract award.
• The per diem rate offered for the alternate resource must be equal to or lower than the per diem rate shown in the PS online system and be equal to or lower than the per diem rate for original resource specified in the solicitation document.

Note: The Contracting Authority is reminded that all resources offered must be evaluated in accordance with the requirements of the solicitation document.

A substitute resource is defined as a resource that is offered in place of the resource or resources that are specified in the contract. Substitute resources may only be considered if the resource(s):

• Have similar qualifications as the resource covered in the contract;
• Meet all mandatory and point rated requirements that were specified in the original solicitation document;
• Is offered at the same or lower rate than the original resource specified in the contract;
• Is registered on PS Online system within supplier's portfolio of resources.

Note: The requirement that the resource named in the solicitation document sent to a company be considered first before an alternate resource can be considered is no longer required. For example, previously, if the solicitation document states that the resource required is John Smith from ABC Company, and ABC Company offers Jane Jones, then Jane Jones could not be considered unless:

1. all other bids submitted, which offered the resource named in the solicitation document, were deemed to be no responsive; or
2. no other bids were submitted; or
3. all other bids submitted also offered alternate resources (as defined above).

All proposals may now be considered regardless of whether or not the resource named in the original solicitation document sent to a bidder is offered or an alternate one (as described above) is offered. The Contracting Authority is reminded that the rules governing the offering of alternate resources (as stated above) apply.

7.3 Additional Resources

The tasks described in the Statement of Work may be such that more than one resource would be required to perform the work. Similarly, potential contractors may determine that the most effective way to complete the work described in the solicitation document would be to offer more than one resource.

Contracting Authorities may consider proposals that offer multiple resources provided that:

• at least one of the resources offered was part of the original PS Online search conducted
• each additional resource is registered on PS Online

Note: The Contracting Authority is reminded that the total value of all contracts issued against a requirement cannot exceed the PS Online threshold specified in section 1.1 of this document.

7.4 Evaluation of Mandatory Criteria

The first step in the evaluation is to determine which proposals meet the mandatory criteria stated in the solicitation document. If a proposal offers resources in addition to the resource specifically named in the solicitation document, all resources offered must be evaluated to determine compliance with the mandatory criteria. Proposals that do not meet all the mandatory requirements must be deemed as being non-responsive and are not to be evaluated further. Whenever a proposal is considered to be non responsive, the reasons must be supportable and documented on the file.

Note: In the event that only one proposal is received as a result of a competitive bid solicitation, the proposal must still be evaluated to determine whether or not all of the mandatory requirements are met. Should not all the mandatory requirements be met, the proposal would be considered non-responsive and the requirement would need to be re-tendered

7.5 Evaluation of Point Rated Criteria

1. Each member of the evaluation team is required to evaluate all proposals that have met the mandatory requirements and assign points according to the criteria specified in the proposal document. If a proposal offers resources in addition to the resource specifically named in the solicitation document, all resources offered must be evaluated to in accordance with the point rated requirements. Upon completion of the evaluation, each evaluation member shall provide a signed and dated report, for each proposal submitted and for each resource where applicable, to the Contracting Authority that indicates the specific points assigned to each criterion, the rationale for the points assigned and any other pertinent comments.
   
   Note: It is recommended that if an individual evaluation report is modified as a result of an error being discovered either by the evaluator or the Contracting Authority, the evaluation report be corrected and initialed by the evaluator.
   
   
2. The Contracting Authority will review each evaluation report and resolve any issues (such as apparent errors in the evaluation report, major discrepancies between points assigned for specific criterion between evaluation team members, etc.). Once all issues have been addressed, the Contracting Authority should summarize the individual evaluation reports into a single document. The evaluation summary should include the score from each member of the evaluation team for each of the point rated criterion and either the average total score (for all point rated criterion) or the average score for each criterion and then the total score. The Contracting Authority shall sign and date the completed summary evaluation report.
   
   
3. Should the proposal document state that a minimum total score is required, the Contracting Authority will determine which proposals meet or do not meet this requirement. Proposals that do not meet the minimum required score are considered non-responsive and are not to be considered further.
   
   Note: In the event that only one proposal is received as a result of a competitive bid solicitation, the proposal must still be evaluated and assigned points if there is a minimum score required in order for a proposal to be considered responsive. If the proposal fails to meet the minimum score required, the proposal would be considered non-responsive and the requirement would need to be re-tendered.

8. Selection of Winning Proposal

8.1 Ranking of Proposals

Once the technical evaluation is completed all technically compliant bids are ranked from lowest to highest, based on the selection criteria specified in the request for proposal document.

8.2 Per Diem Rates

The per diem rate for ALL resources offered, by the proposed Contractor, must be verified as being the equal to or lower than the per diem rate shown in the PS Online system.

1. The per diem rate for the resource offered that was part of the original PS Online search must be equal to or less than that shown in the original PS Online search. If the per diem rate offered is higher than that found in the original PS Online search, then the Contracting Authority must determine when the per diem rate changed. If the per diem rate increased between the time of the original PS Online search but prior to the issuance of the proposal, then the higher rate is in effect. If the per diem rate increased after the proposal was issued, the bidder must revise their offer to reflect the lower per diem rate. In a competitive bidding situation, such negotiations can only be held with the lowest responsive bidder. Negotiations of per diem rates that would affect the bid ranking are not to take place.
2. If additional resources are being offered that are not part of the original PS Online search, then a PS Online search must be conducted to confirm what the rate for that resource is. This search must be printed and placed on the contract file.

8.3 Security

Where a contract will require that each resource have a specific security level, the following information for each resource must be verified:

1. Current security clearance level;
2. Expiry date of security clearance level.

The contract file must contain objective evidence, such as an email or facsimile from either PWGSC or the Contracting Authority's departmental or agency security branch that provides the above information. Such objective evidence must be obtained PRIOR to award of the contract.

9. Negotiations

9.1 Proposals

After completion of the technical evaluation and the wining proposal has been selected, negotiations are permitted. When only one responsive proposal is received in response to a Request for Proposal, the Contracting Authority may, if it considers that it is obtaining fair value, award the contract to the single responsive bidder without conducting negotiations. Should the Contracting Authority consider that the single responsive proposal does not provide fair value, it should either negotiate with the potential contractor to obtain fair value or re-solicit bids for the requirement. If negotiations fail to result in fair value being obtained, then the requirement must be re-solicited.

9.2 Additional Costs

Proposals may include, as part of the pricing offered, provisions for additional costs. Additional costs may include items such as travel and living expenses, translation costs, etc. The Contracting Authority must determine whether or not each individual cost provision is pertinent to the work required. Provisions for costs that are not pertinent to the work required or that should already be built into the per diem rate charged must be excluded from the contract. Examples of additional cost provisions may include:

a) Travel and Living Expenses

If the work requires that the resource attend meetings or conferences in another city, conduct interviews or perform research in another city, etc. then inclusion of an estimated value for travel and living expenses is appropriate.

Including a provision for expenses related to the Contractor traveling back and forth to where the work is being conducted, where the Contractor and the work site are both local, is NOT appropriate. Such expenses are part of overhead costs that are built into the per diem rate. Negotiations must be held to remove such a provision.

b) Administrative Expenses

Including a provision for administrative expenses, except for translation costs, including but not restricted to long distance phone charges, costs to send documents by facsimile, courier costs, photocopying, etc. is NOT appropriate. Such expenses are part of overhead costs that are built into the per diem rate. Negotiations must be held to remove such a provision.

c) Translation Costs

Where the work clearly requires that documents developed be translated into another language (typically English to French), including a provision for this type of expense is appropriate.

10. Re-Tendering

10.1 No Bids Received

In the event that no bids are received as a result of a competitive solicitation, the Contracting Authority must contact each firm invited to bid to establish why a bid was not submitted. Based on the feedback received, the Contracting Authority must consider revising any or all of the following:

1. Specific elements of the Statement of Work (SOW) such as the contract period, dates for deliverables, etc; or
2. The evaluation criteria (both mandatory and point rated requirements);
3. The selection criteria; or
4. Any other aspect of the solicitation document.

10.2 No Responsive Bids Received

In the event that the evaluation of all bids received, as a result of a competitive solicitation, results in all bids received being declared non-responsive, the Contracting Authority must establish why each bid submitted was declared non-responsive. In addition, the Contracting Authority must contact each firm invited to bid and who did not submit a proposal, to establish why a bid was not submitted.

Based on the above results, the Contracting Authority must consider revising any or all of the following:

1. Specific elements of the Statement of Work (SOW) such as the contract period, dates for deliverables, etc; or
2. The evaluation criteria (both mandatory and point rated requirements);
3. The selection criteria; or
4. Any other aspect of the solicitation document.

10.3 Re-tendering a Solicitation

If the decision is made to re-tender the requirement, and substantial changes are made to the Statement of Work, then consideration should be given to conducting a new PS Online search. Should a new PS Online search not be performed, the rationale for not conducting a new search must be documented and placed on the contract file.

Changes made to a solicitation document or Statement of Work or both shall be done so as to NOT restrict competition or favor one potential bidder over another.

10.4 Canceling a solicitation

If during the bidding period or at any time prior to contract award, the Contracting Authority decides to cancel a solicitation, the rationale for the cancellation must be documented and placed on the contract file.

11. Contract Preparation

11.1 Contract Price

The contract must stipulate the total contract price, including GST or HST (as applicable) and all travel and living expenses (if applicable).

11.2 Resource(s) Performing the Work

The contract must name each of the resources that will be performing the work covered by the contract. Failure to do so could allow the Contractor to legally substitute a lower cost resource or resources other than that specified in its proposal without prior approval.

For example, the Contractor's original proposal offered Paul Smith at $1,000 per day. If the contract issued does not specifically name Paul Smith, then the Contract may be able to substitute Peter Jones who is paid a per diem rate of $300 per day. Since the contract does not specify who is obligated to perform the work (typically the contract will only state that the Contractor, ABC Company, will perform the work at a cost of $1,000 per day), the Contracting Authority would still be obligated to pay the Contractor $1,000 per day.

Note: All resources performing the work covered by any contract/amendment issued pursuant to PS Online must be registered with PS Online within the supplier's PS Online portfolio of resources prior to contract/amendment award.

11.3 Basis of Payment

There must be a Basis of Payment included in the contract for it to be considered legally enforceable. There are three different types of basis of payments that can be used for PS Online contracts:

1. The Contractor shall be paid a firm all-inclusive per diem rate of *(specify the rate)*, for the services provided in accordance to the Statement of Work contained herein, GST/HST extra.
2. The Contractor shall be paid a firm all inclusive per diem rate of *(specify the rate)*, on an as and when requested basis, for the services provided in accordance to the Statement of Work contained herein, GST/HST extra.
3. In consideration of the Contractor satisfactorily completing all of its obligations under this contract, the Contractor shall be paid the firm lot price of $ ___________, GST/HST extra.

11.4 Limitation of Expenditure

The contract must include a Limitation of Expenditure clause that indicates the total contract value including GST or HST (as applicable) and all travel and living expenses (if applicable).

11.5 Method of Payment

The contract document must stipulate the method of payment to be used. Contracts may not be amended to change the method of payment once they have been awarded.

a) Progress Payments

A Progress Payment is defined as a payment under the terms of a contract after the performance of the part of the contract in respect of which the payment is made but before the performance of the whole contract. Progress Payments should be based on pre-determined milestones.

b) Advance Payments

Advance payments are defined as a payment made by or on behalf of Her Majesty under the terms of a contract before the performance of that part of the contract in respect of which the payment is made.

Treasury Board policy (12.2.3) requires that:

"Advance payments should be considered only in extraordinary circumstances, that is, when they are considered essential to program objectives. Contractors are expected to finance their work from their reserves or through commercial financing based on the anticipated payments from the contracting authority for full or partial completion of the work. Contracting authorities should consider the financing and interest costs to the Crown, as well as the method of recovery, when negotiating advance payments and should evaluate these costs when comparing other alternatives."

12. Debriefings

Debriefings should be made available to unsuccessful bidders on request, but only after contract award. A debriefing should include an outline of the reasons the bid was not successful, making reference to the evaluation criteria. In addition, unsuccessful bidders must be informed of the recourse mechanisms available to them, if they feel that, despite the information provided during the debriefing, they are still dissatisfied with the handling of a particular procurement.

Note: Care must be taken to protect the confidentiality of information relating to other bids.

Debriefings are NOT to be held until the contract has been issued and accepted by the successful bidder.

13. Contract Administration

a) Contract Amendments - General

The rationale for amending a contract should be documented and placed on file. The Contracting Authority should note that the generation of numerous amendments to a contract might be interpreted as poor requirement planning.

b) Contract Amendments - Date

The date that a contract is legally amended is the date upon which both parties (the Contracting Authority and authorized representative of the Contractor) have signed and dated the amendment. Contract amendments that are signed by both parties are NOT valid. Contract amendments that have not been signed and dated by both parties BEFORE the contract has expired are NOT valid.

c) Contract Amendments - Changes to Contract Value

1. For non-competitive contracts whose original value is below $25,000.00, the aggregate value of all amendments may not exceed 50% of the original contract value and shall not increase the contract value above $25,000.00.
2. For non-competitive contracts whose original value is above $25,000.00, the aggregate value of all amendments shall not exceed 50% of the original contract value and shall not increase the contract value above $76,600.00.
3. For competitive contracts, the aggregate value of all amendments shall not exceed 50% of the original contract value and shall not increase the contract value above $76,600.00.

In all cases, the rationale for increasing the value of the contract should be documented and placed on the contract file.

For example, if the original requirement was competed and the contract awarded was valued at $20,000.00. The value of this contract may be amended by up to $10,000.00 for a revised value of $30,000.00.

The $25,000.00 limitation is only applicable to sole source contracts.

d) Substitute or Replacement Resource

If, after contract award, the contractor offers a resource other than the resource covered in the contract, the Contractor must provide the following information, in writing, for each proposed substitute or replacement resource:

• Reason(s) for offering the substitute or replacement resource.
• For competitive requirements, objective evidence must be submitted to the Contracting Authority that demonstrates that each proposed substitute or replacement resource meets the mandatory and point rated requirements specified in the original solicitation document.
• For competitive requirements, ensure that the proposed substitute or replacement resource has similar or better qualifications than the original resource(s) covered in the contract.
• For non-competitive or sole source requirements, objective evidence must be provided to the Contracting Authority that confirms that each proposed substitute or replacement resource has the equal or superior qualifications.

The Contracting Authority shall:

• Perform a PS Online search to confirm that each proposed substitute or replacement resource is registered on PS Online;
• Confirm that the rate offered for each proposed substitute or replacement resource is the same or lower than the rate shown in the PS Online system
• Confirm that the rate offered for each proposed substitute or replacement resource is the same or lower than the rate of the original resource covered under the contract.
• For competitive requirements, evaluate each proposed substitute or replacement resource in accordance with the evaluation criteria specified in the original solicitation document.
• For competitive requirements, ensure that the proposed substitute or replacement resource has similar or better qualifications than the original resource(s) covered in the contract.

Care must be taken when accepting a replacement resource especially if one or more potential bidders declined to bid based on not having the required resource available.

Documentation noted above shall be placed on the contract file.

e) Additional Resources

If, after contract award, an additional resource is required to assist in the performance of the contract, the following information must be documented on file for each additional resource:

• Reason(s) for the requirement for each additional resource.

The Contracting Authority shall:

• Perform a PS Online search to confirm that each additional resource is registered on PS Online;
• Confirm that the rate offered for each additional resource is the same or lower than the rate shown in the PS Online system;
• For competitive requirements, evaluate each proposed additional resource in accordance with the evaluation criteria specified in the original solicitation document.

f) Changes to Statement of Work (SOW)

Contract amendments that result in significant revisions to the original SOW must be justified and the documentation placed on the contract file. Included in the justification shall be a rationale for not re-tendering the original solicitation.

g) Changes to the Duration of the Contract

Extending the duration of a contract such that the 100 working day threshold is exceeded requires approval at the Director level or above. Approval, in writing, must be placed on the contract file. The requirement for approval at the Director level or above does not affect the signing authority level appropriate for the value of the contract in question.

Note: A project whose duration has an expected level of effort, from a single resource, in excess of 100 working days can possibly create an employer/employee relationship. Therefore, senior management must be made aware of such projects.

h) Changes to the Commencement Date of the Contract

The Contracting Authority should carefully assess the potential ramifications of delaying the start of a project, especially where the procurement was competitive. The Contracting Authority must determine whether or not potential bidders failed to submit a proposal because the requested resource was not available to start on the original date specified. If there is a reasonable chance that this occurred, then consideration should be given to re-tendering the requirement.

The rationale for changing the commencement date of the contract must be documented and placed on the contract file.

i) Contractor Name Change

If a Contractor advises that the name of its organization has changed, the Contractor must confirm the new name in writing and also confirm the reason for the name change. If the name change is the result of the creation of a new legal entity, the Contracting Authority must consult with its legal advisors to determine the steps necessary to effect such a change.

Should the name change not be a result of the creation of a new legal entity, an amendment to the contract may be sufficient. The Contracting Authority must consult with its legal advisors to confirm the steps necessary to effect such a change.

All steps taken to resolve this situation must be documented and placed on file.

j) Assignment of Contract

If a contractor wishes to transfer a contract or contracts to another legal entity, an Assignment is required. The Contracting Authority must consult with its legal department to determine the steps necessary to effect such an assignment. The contract file must be fully documented

All steps taken to resolve this situation must be documented and placed on file.

k) Amalgamating, Merging of Companies

An amalgamation or a merger usually results in a new legal entity. In such instances an assignment of the contract may be required from the original Contractor to the new legal entity. The Contracting Authority must consult with its legal department to determine the steps necessary to effect such an assignment.

All steps taken to resolve this situation must be documented and placed on file.

l) Changing the Method of Payment

Amendments to change the method of payment are NOT allowed.

14. Other

a) Contract Splitting

Contract splitting is defined as a subdivision of a project or task into multiple phases/contracts to avoid exceeding the applicable limits of PS Online. Contract splitting is a breach of the Government Contract Regulations.

Examples of practices that could be considered contract splitting would include, but are not limited to:

1. Awarding multiple contracts to the same contractor either simultaneously or at regular intervals that each contain a Statement of Work that represent or could be interpreted as being individual phases of a larger project.
   
   
2. Awarding contracts to different contractors for the same work.
   
   Contracting authorities must not split contracts or contract amendments in order to avoid obtaining either the approval required by statute, the Treasury Board (TB) Contracts Directive or appropriate management approval within the department/agency. Furthermore, contracts must not be split to avoid obligations under international trade agreements, or the application of the Federal Government procurement policies.
   
   
3. Awarding contract for the same resource with another supplier for the same work.

b) Follow-up Contracts

Follow-up contracts is defined as the practice of awarding a new contract for the services of a specific resource shortly after the expiry of another contract, to the same resource, that includes a Statement of Work (SOW) that is identical to or very similar to that contained in the first contract.

c) Contracts for the same Work

The Contracting Authority should consider the issuance of a single multi year contract in cases where it becomes clear that the same need exists periodically during a single or several fiscal years.