PURCHASING HANDBOOK:
A Guide to Acquiring Goods and Services
in the Government of British Columbia
January 2010
Shared Services BC
Procurement
CONTENTS
1
INTRODUCTION ...................................................................................................................... 1
2
CONTRACTING ENVIRONMENT ............................................................................................ 3
3
4
5
2.1
Agreement on Internal Trade (AIT) ......................................................................... 3
2.2
Contract Law................................................................................................................ 3
2.3
Environmental Issues ................................................................................................. 5
2.4
Fair Treatment of Vendors ......................................................................................... 5
ACQUIRING GOODS AND SERVICES ..................................................................................... 7
3.1
Procurement and Contract Management ................................................................ 7
3.2
Common Questions and Answers ............................................................................ 9
CORPORATE SUPPLY ARRANGEMENTS .............................................................................. 14
4.1
External Corporate Supply Arrangements (CSAs) .............................................. 14
4.2
Internal Corporate Supply Arrangements (CSAs) ............................................... 15
4.3
Accessing Corporate Supply Arrangements (CSAs)............................................ 17
4.4
Rentals and Leases .................................................................................................... 19
4.5
Vehicle Rentals, Acquisitions, Repairs, and Maintenance .................................. 19
PROCUREMENT PROCESSES AND TOOLS............................................................................ 20
5.1
Different Processes for Different Purposes............................................................ 20
5.2
Risk Assessment and the Procurement Process.................................................... 23
5.3
Request for Information (RFI) and Request for Expressions of Interest (RFEI) 26
5.4
Notices of Intent (NOI) and Direct Awards .......................................................... 28
5.5
Request for Qualifications (RFQ) ............................................................................ 29
5.6
Invitation to Quote (ITQ) ......................................................................................... 32
5.7
Request for Proposals (RFP) .................................................................................... 34
5.8
Choosing a Pre-Award Strategy ............................................................................. 41
5.9
Contract Templates ................................................................................................... 43
6
CONTACTS............................................................................................................................ 44
7
GLOSSARY AND DEFINITIONS ............................................................................................ 46
8
QUICK LINKS........................................................................................................................ 48
APPENDIX A – CONTRACT AND PROCUREMENT LAW .............................................................. 48
APPENDIX B – PROCUREMENT PROCESSES AND TOOLS ............................................................ 53
Copyright © 2005, Province of British Columbia
All rights reserved This material is owned by the Government of British Columbia and protected by copyright
law. It may not be reproduced or redistributed without the prior written permission of the Province of British
Columbia.
1 INTRODUCTION
This handbook has been designed to guide ministry employees in the
use of government’s procurement processes and tools such that:

the expectations of government procurement policy and trade
agreements are met as efficiently as possible;

the risks to the Province from inappropriate procurement
practices and decisions are minimized; and

the right goods and services are acquired with the best value for
money and made available at the right place in a timely manner.
Responsibility for procurement in government is shared between
program ministries, Ministry of Management Services – Procurement
and Supply Services (PSS), and the Ministry of Finance – Procurement
Governance Office. This handbook identifies:

who has the authority to purchase in specific circumstances;

the tools that are available to simplify the procurement process
and meet the expectations of policy, trade agreements, and
contract law;

the standard terminology for core government procurement
processes and tools; and

the resources available to provide assistance and advice.
Links to other tools and resources are included throughout this
document. In addition, there are quick links to contact numbers in PSS,
where staff are available to answer questions and provide both advice
and assistance with any government procurement process.
The best practices section of the Procurement Services Act identifies five
principles that balance the objectives of getting good value for money
with a process that is fair to both ministries and vendors. The
Province’s procurement framework is built around these five
principles.
Competition
Acquisitions of goods and services are competed, wherever
practical, and ministries engage in a competitive process only
with the full intent to award a contract at the end of that process.
Demand Aggregation
Government buying power is leveraged through ministry
participation in corporate supply arrangements and demand
aggregation, wherever possible.
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Value for Money
Government receives the best value for the money spent on
contracts. Also, the cost of the procurement process—to both
vendors and ministries—is appropriate to the value and
complexity of the contract for goods or services.
Transparency
Vendors have fair access to information on procurement
opportunities, processes, and results.
Accountability
Ministries are accountable for the results of their procurement
decisions and the appropriateness of the processes followed.
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2 CONTRACTING ENVIRONMENT
The Procurement Services Act provides the legal authority for
Procurement and Supply Services (PSS) to enter into contracts for
goods and services on behalf of ministries. In addition, ministryspecific statutes provide the authority for ministries to contract for
services in support of their programs. Regardless of who has the
authority to procure, the process of contracting for goods and services
must comply with government policy as set out in the Core Policy and
Procedures Manual, the Agreement on Internal Trade (AIT), and
contract law.
2.1 Agreement on Internal Trade (AIT)
The Province is party to the AIT, which regulates trade between the
provinces to ensure equal access to government procurement for all
Canadian suppliers. In British Columbia, the requirements of the AIT
have applied to ministries since it came into effect in July of 1995. As of
April 2002, municipalities, municipal organizations, school boards, and
publicly funded academic, health and social services entities (MASH
entities) have been covered by AIT Annex 502.4. Crown corporations in
British Columbia have been procuring in accordance with Annex 502.3
since April 2002, almost three years before it was officially
implemented in January 2005.
Under the terms of the AIT, all procurement opportunities meeting or
exceeding the following thresholds must be accessible to all Canadian
suppliers through the use of electronic tendering systems,
advertisements in daily papers, or the use of source lists.
Government
Ministries
MASH
Sector
Crown
Corporations
Goods
$25,000
$100,000
$500,000
Services
$100,000
$100,000
$500,000
Construction
$100,000
$250,000
$5 million
2.2 Contract Law
Effective procurement in the public sector is a balance between the
principles of fair, open, and transparent procurement, obligations
imposed by law, and business considerations. A completed ministry
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procurement cycle results in an agreement between government and a
supplier for the provision of goods, services, or construction in
exchange for some form of consideration. This agreement, which most
often takes the form of a service contract or a purchase order, is
referred to as the performance contract. The performance contract,
which is referred to as a Contract B, is between the successful bidder or
proponent and government.
Note:
In this handbook, the term bidder is used to describe
vendors submitting bids, quotes, or tenders in response to
an Invitation to Quote (ITQ) or an Invitation to Tender (ITT).
The term proponent is used to describe vendors submitting
proposals in response to a Request for Proposals (RFP).
When a competitive process is used to select the best supplier for the
performance contract, another type of contract is created: a bid contract.
In the Province of British Columbia, an ITT, an ITQ, and an RFP are all
types of solicitation documents used to invite submissions from which
a successful bidder or proponent is selected. These competitive
processes result in the establishment of a Contract A, or bid contract,
between the government and all bidders/proponents.
Common law with respect to contracts applies to both the final form of
the agreement and to the competitive process that led up to the
agreement. This is an important distinction for government employees
to understand as both contracts that result from a competitive
process—Contract A and Contract B—create legal obligations to
government. The guidance provided in this handbook supports a
procurement process that is both efficient and consistent with common
law.
Finally, contract law applies to any contract, regardless of whether it is
a written or verbal contract, for the supply of goods or services. A
contract results when there is the combination of an offer and an
acceptance of that offer. If ministry staff do or say anything to create a
verbal offer, acceptance of such an offer by a vendor can create a verbal
contract on behalf of government, without the protective language
found in standard contract templates. For this reason, government core
policy (Section 6.3.3 a 9) explicitly states that ministry staff must not do
or say anything to create a verbal contract on behalf of the government.
Appendix A provides more detailed information on the relationship
between contract law and procurement and, in particular, the law of
competitive processes. For specific legal advice, contact Legal Services
Branch, Ministry of Attorney General.
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2.3 Environmental Issues
The Procurement Governance Office (PGO) has established
procurement guidelines designed to encourage ministries to consider
environmentally responsible products and services as part of their
purchasing decisions. The objectives of these guidelines are:

to provide an environmental role model for government
procurement by making it a priority to use environmentally
responsible products and services, where feasible and cost
effective;

to increase demand for environmentally responsible products
and services, which may ultimately enhance their quality and
cost competitiveness; and

to continue to increase government's conservation of resources
through the use of more reusable products, and products and
services that require less energy and materials to produce or
use.
These guidelines are accessible through the Purchasing Services Branch
website.
2.4 Fair Treatment of Vendors
Vendor relationship management is an integral part of all phases in any
procurement process. Therefore, fair treatment of vendors is an
important consideration for ministries from the planning stage of a
procurement through to the post-contract evaluation. The following
points are issues that ministry staff should keep in mind to ensure that
all potential suppliers to government are treated in a fair and unbiased
manner.

In any procurement process, only one individual should be the
contact person. This can be a ministry employee or a contact at
PSS. This person will answer, or arrange to answer, all
questions from vendors and may distribute the answers to all
vendors who have expressed interest in the process. In this way,
all parties will receive identical information. Only questions in
writing should be accepted and answers should be given in
writing to maintain an accurate historical record. If verbal
questions are received by the contact person, both the question
received and the answer provided should be recorded in
writing.
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
If one of the potential suppliers has previously done the
required work for the ministry, the ministry should ensure that
the existence of an incumbent supplier is disclosed to all
potential suppliers. As well, all potential suppliers should
receive the same information that the incumbent supplier has
received. Fair and consistent disclosure of ministry information
related to the procurement process ensures a leveling of the
playing field for all potential suppliers. PSS is available to
provide assistance and advice throughout this process.

The requirements in the solicitation document should not be
drafted in such a way, or be so specific, that only one bidder or
proponent would be able to qualify.
Ministries are responsible for establishing and managing an accessible
and fair process for responding to vendor complaints. Vendors who
feel they have not been treated fairly must first raise their concerns
with the ministry responsible for the procurement. If the concern
cannot be resolved at the ministry level, the complaint is referred to the
Vendor Complaint Review Process managed by the Procurement
Governance Office. Information on the Vendor Complaint Review
Process is available in Chapter 6 – Core Policy and Procedures Manual
and from the Procurement Governance Office.
For advice on how you can ensure fair treatment of vendors, bidders,
proponents, and suppliers in your specific procurement process,
contact PSS.
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3 ACQUIRING GOODS AND SERVICES
3.1 Procurement and Contract Management
The procurement and contract management process, as presented in
Figure 1, consists of seven inter-related components that influence how
goods and services are acquired in government.
Figure 1: Procurement and Contract Management Process

Planning – identifying needs, identifying options, and
developing the business case.

Pre-Award and Solicitation – determining what is available to
meet identified needs, who is available to provide the goods or
services, and the appropriate solicitation process and strategies.

Contract Award – negotiating outstanding contract elements
with highest-ranking proponent.

Administration and Monitoring – ensuring deliverables are
received in accordance with the contract and any issues are
dealt with appropriately.
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
Post-Contract Evaluation – evaluating deliverables/outcomes,
evaluating contractor performance, and evaluating the internal
team and process.

Corporate Reporting – collecting and analyzing data and
generating reports.

Vendor Relationship Management – communications and
information management, vendor complaint review process,
supplier development, and issues management.
Two key branches within Procurement and Supply Services (PSS) have
the authority to acquire goods and services on behalf of ministries: the
Purchasing Services Branch (PSB) and the Strategic Acquisitions and
Technology Procurement Branch (SATP).
The PSB is responsible for procuring goods valued at over $5,000,
establishing Corporate Supply Arrangements (CSAs), operating BC
Bid, and providing advice and support to ministry procurement efforts.
Section 6.0 includes PSB contact information.
The SATP is responsible for managing and delivering strategic
procurement planning, advice, and implementation services for major
and complex acquisitions across government. Section 6.0 includes
SATP contact information.
All procurement efforts, whether undertaken by ministries directly or
by PSS on behalf of ministries, are governed by the same rules.
Government’s procurement policy Chapter 6 – Core Policy and
Procedures Manual, which defines those rules, is designed to help
ministries follow procurement practices that:

achieve best value for government;

minimize the risks to government; and

treat vendors fairly.
Although all steps of the procurement process are important, the preaward phase normally involves the greatest effort and the greatest
risks. The pre-award phase involves a combination of information
gathering, pre-qualification, solicitation, and selection activities. This
phase of the procurement process can be the most complex, the most
variable, and—if not managed correctly—the most likely to result in
onerous obligations (e.g., legal and financial) on the part of the
Province. The solicitation activities (the competitive process)
undertaken during the pre-award phase create the greatest risks to the
Province as legal obligations result from the establishment of bid
contracts between government and interested vendors. Consequently,
most procurement rules, including those set out in the AIT and
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common law, govern solicitation processes. PSS can help ministries
successfully navigate these requirements.
Depending on the nature and circumstances of each procurement
opportunity, the pre-award phase can range from being a simple
process (e.g., issuing an Invitation to Quote for fire extinguishers) to a
complex process involving several stages (e.g., gathering background
information, pre-qualifying suppliers, and then issuing a Request for
Proposals). Procurement policy requires a pre-award process that
ensures a level of rigour and thoroughness necessary to match the
complexity of the business situation, as the associated risks increase
proportionately with the complexity of a procurement transaction.
Again, PSS has the experience to help ministries develop appropriate
procurement strategies to meet their business requirements.
PSS has worked with staff from Legal Services Branch, the Procurement
Governance Office, and Risk Management Branch to develop standard
procurement processes and tools to support pre-award activities that
are successful and consistent with the expectations of core policy.
Policy requires ministries to follow these processes, as they support a
fair and legal procurement process when used correctly. Section 5.0
describes these procurement processes and tools, including how and
when they should be used, and the risks of using them incorrectly.
Assistance is Available
The pre-award process is complex, so good advice on how to manage
your unique procurement can save time and effort for both you and the
vendor community, and it can help you avoid unnecessary risks.
Advice is available from experienced staff at PSB and SATP. These
procurement experts can answer questions, assist you with your
procurement process, and even manage it on your behalf. If you are
unsure of which branch to contact, call any branch in PSS and you will
be quickly forwarded to the appropriate area.
3.2 Common Questions and Answers
When can I buy goods
directly?
Government policy assigns responsibility and authority for acquiring
goods to PSS in the Ministry of Management Services. Consolidation of
this activity achieves best value to government through demand
aggregation.
However, to support ministry operational requirements, policy does
allow ministries to directly acquire goods valued at less than $5,000
through a pre-existing CSA (through Oracle iProcurement), or directly
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from suppliers through the use of a Purchase Order or purchasing
cards. Requests for goods valued at $5,000 or more, which are not
available through a pre-existing CSA, need to be directed to PSS.
When is my ability to
contract for services
limited?
Ministries have full authority to contract for services in a manner that
complies with applicable government policy. The legislation
administered by each ministry that provides the authority to deliver
programs also provides the authority to contract for the services
required to meet those program objectives. However, Section 6.3.2 of
Treasury Board’s core policy states that if services are available through
a CSA, ministries must acquire them through that arrangement.
The Procurement Services Act authorizes PSS to contract for services and
construction on behalf of ministries, when ministries request assistance.
What is a Corporate
Supply Arrangement
(CSA)?
A CSA is any arrangement where a supplier has offered to provide
goods or services to one or more government or public sector entities
for a defined period of time with pre-determined terms and conditions,
and at a negotiated price. There are two main categories of CSAs:
external and internal. External CSAs are arrangements established with
external suppliers, which can be accessed by one or many government
entities. Internal CSAs are arrangements where a branch internal to
government is identified as the supplier or coordinator of specific
goods or services for ministries. PSB is responsible for establishing
CSAs for commonly used goods and services for use by ministries and
other public sector organizations.
Why does government
use CSAs?
CSAs are used to aggregate the demand for certain goods and services
that can be used to leverage government’s buying power. CSAs
provide value to government as the pricing is typically much lower
than a supplier’s ‚list‛ pricing or lower than a single user could
negotiate on their own. CSAs also eliminate the need to conduct many
separate competitions for frequently acquired goods and services, and
streamline the procurement process for buyers and sellers.
Do I need to acquire
goods and services
through a CSA even
when I find a better
price elsewhere?
Yes. Core policy requires that ministries not use any procurement or
solicitation instrument to acquire goods or services that are available
through a CSA. CSAs must be used, where available, to maximize the
value achieved through demand aggregation.
Most CSAs are established for use by all ministries, regardless of their
location within the province. The best provincial price for all users may
not be the lowest price available in a particular region. For example, the
price may be very competitive for offices in rural areas but not as
competitive to users in urban centres. However, if urban-based users
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buy off-contract, it reduces the ability of government to negotiate best
overall prices (with lower volumes) and may result in an increased
total cost to government. In addition, goods available through CSAs
often include more support than ministries can purchase for the same
off-contract price, so a comparison based strictly on price is not valid.
If you have concerns or questions with respect to achieving best value
through a CSA, contact PSB.
How do I know if the
goods or services I
need are available
through a CSA?
PSB and Oracle iProcurement provide catalogues of current CSAs.
Directions on how to acquire goods and services available through a
CSA are included in Section 4.3.
When can I use my
corporate purchasing
card?
Ministries may use their corporate purchasing card to directly acquire
goods or services valued at less than $5,000, including goods and
services ordered through external CSAs. Detailed information on
purchasing cards is available in the Purchase Card Manual.
Government procurement policy applies to all purchasing transactions,
regardless of the method of payment. The corporate purchasing card is
simply an instrument that facilitates payment.
Can I use my corporate
purchasing card to
acquire goods and
services valued at
more than $5,000?
The standard transaction limit for the corporate purchasing card is
$5,000. A higher limit may be authorized for corporate card holders in
special circumstances, such as the limit negotiated for Ministry of
Forests’ staff during fire season. If ministries do not have a higher limit,
then their requests for goods valued at more than $5,000 must be
directed to PSB. The process for requisitioning goods through PSB is
described in Section 4.3.
What about emergency
purchases?
In an emergency situation (e.g., when there is not time to requisition
the goods through PSB or when a direct award is necessary), policy
allows ministries to directly acquire goods and services. Ministries are
responsible for supporting the emergency nature of any procurement
that does not comply with standard policy.
What are the dollar
thresholds for
competing service
contracts?
Treasury Board policy requires that all service contract opportunities
valued at $25,000 or more be awarded using a competitive process,
except where one of the conditions for directly awarding a contract is
met. For potential service contracts valued at over $100,000, the
opportunity must be competed using BC Bid and standard government
solicitation tools. For potential service contracts valued between
$25,000 and $100,000, ministries should are to obtain at least three
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quotes. Opportunities for service contracts valued between $25,000 and
$100,000 should also be posted on BC Bid.
For service contract opportunities valued at less than $25,000, policy
recommends a competitive process to the extent reasonable and costeffective.
What is a reasonable
and cost-effective
competitive process
for service contracts
under $25,000?
A reasonable and cost-effective competitive process is one that
supports the principles of fair and open procurement without creating
excessive effort and process for either the ministry or potential
contractors. This often means a less formal and less extensive process
and, in certain circumstances, a direct award may be appropriate.
The approach to competing small dollar contracts will be influenced by
the nature of the service required, the availability of potential
contractors, and timing. The process could range from obtaining phone
quotes from three potential contractors, to issuing a formal Request for
Proposals.
Section 5.0 provides guidance on when different approaches to
awarding contracts are appropriate. However, for quick advice on the
best approach in your circumstances, contact PSB.
When can I directly
award a contract for
services?
The specific conditions under which ministries can directly award a
contract of any value are listed in core policy. Contracts for services
valued at less than $25,000 may be directly awarded, but there is an
expectation that the opportunity be competed to the extent reasonable.
Section 5.4 provides additional guidance on directly awarding
contracts.
What if my situation
does not fit the direct
award criteria exactly?
If the opportunity is less than $25,000, a direct award is acceptable. If
the opportunity is valued at more than $25,000, ministries should get
advice from the Procurement Governance Office or from PSS.
How do I choose the
best procurement
process and tool for
my situation?
Your choice of procurement process and tools is dependent on a
number of factors:

the complexity of your needs;

the value of the opportunity;

your time horizon;

the availability of potential suppliers;

the interest of potential suppliers in competing for this
opportunity; and

the risk to government if something goes wrong during the preaward and award processes.
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Section 5.0 provides guidance on how you can assess which tool or
tools are most appropriate to your situation. In addition, PSB and SATP
have procurement specialists who can provide advice and assistance
tailored to your needs.
Where can I get advice
regarding the release,
maintenance, and
retention of records
that are generated in
the procurement
process?
Most ministries have procurement specialists who will consult with
Freedom of Information and Privacy staff and provide advice
regarding the release of procurement records pursuant to the
requirements of the Freedom of Information and Protection of Privacy Act.
If your ministry does not have procurement specialists, you can contact
your Director or Manager of Freedom of Information and Privacy
directly for advice.
The Corporate Information Management Branch is available for advice
on government policy for maintaining and retaining records related to
your procurement process
When should I contact
PSS for help?
PSS can provide advice and assistance at any stage of a ministry’s
procurement process. Their expertise and familiarity with procurement
tools can simplify the procurement process, making it more efficient for
ministries and for potential bidders or proponents.
Also, as PSS has the authority to acquire goods and services on behalf
of ministries, they can run the entire procurement process for
ministries. PSS contact numbers and quick links to relevant websites
are available in Section 6.0.
Does PSS charge for its
services?
As PSS operates on a cost recovery basis, there is generally a charge for
services provided. Contact PSB or SATP for specific information on
their fee structure for the procurement services they provide.
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4 CORPORATE SUPPLY ARRANGEMENTS
4.1 External Corporate Supply Arrangements (CSAs)
What is an external
Corporate Supply
Arrangement (CSA)?
An external CSA is an offer from a vendor to supply goods and/or
services at pre-arranged prices and under the terms and conditions
stated in the CSA. CSAs are not contracts and they do not necessarily
lead to one. A contract is formed only when an order—or drawdown—is issued against the CSA. The Province is under no obligation
at any time to actually make a draw-down.
Are all external CSAs
available to ministries?
Most external CSAs are available to all ministries. However, there are
occasions where external CSAs may be established for different user
groups. For example, there may be ministry-specific CSAs for
specialized goods or services. In addition, external CSAs are often
established for use by ministries and/or other public sector
organizations.
Catalogues of many of the goods and services available through
external CSAs are accessible through iProcurement. Information on
these external CSAs is also available through the Corporate Supply
Arrangement website.
How is a CSA with an
external supplier
established?
Purchasing Services Branch (PSB) uses a Request for Corporate Supply
Arrangement (RCSA) to compete an opportunity for a corporate supply
arrangement with an external supplier. These arrangements are
normally available to all ministries and are often made available to
other public sector organizations. The competitive process used to
establish CSAs meets the requirements of core policy.
PSB will issue an RCSA when:

there is a recurring need for a particular product or service,
however total demand is not known in advance;

consolidation of requirements would increase the Province’s
ability to negotiate discounts or improve contract terms;

the Province prefers not to carry an inventory of frequently
used items;

the Province would like to establish a list of qualified suppliers
with whom it can contract quickly; or

the procurement is complex and a consistent acquisition
opportunity for ministries will help ensure compliance with
cross-government policies or standards (e.g., standards for
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vehicles and desktop computers) and will ultimately benefit
government.
4.2 Internal Corporate Supply Arrangements (CSAs)
What is an internal
CSA?
A number of goods and services are either provided directly by or
coordinated through expert groups within the provincial government.
These internal CSAs exist because they provide best value to
government. Where internal CSAs exist, government policy requires
ministries to use them.
What internal CSAs
exist?
The following table lists the types of goods and services currently
available through internal CSAs and the office within government
responsible for providing these goods and services. Internal CSAs are
accessed directly through the responsible office. Refer to the
responsible office for instructions on how to access the goods and
services available. The following table provides contact information for
each office or a link to a relevant website.
Goods and Services
Available
Responsible Office
Advertising and
publications
Public Affairs Bureau is responsible for
advertising and publications:
Phone:
250 387-1337
Fax:
250 387-5594
Workplace Technology
Services, including
network services,
corporate applications,
and electronic messaging
https://workplacetechnologyservices.gov.bc.ca
Data and word processing
equipment not available
through an external CSA
Purchasing Services Branch (PSB)
Office Products,
Stationery, and
Government Forms
Distribution Centre – Victoria (DC-V)
Instructions on requisitioning procedures are
available in Section 4.3.
All products available are listed in the DC-V
Electronic Shopping Cart.
Medical and emergency
Product Distribution Centre (PDC)
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Goods and Services
Available
Responsible Office
supplies, pharmaceutical
supplies, uniforms, etc.
Instructions on requisitioning procedures are
available in Section 4.3.
All products available are listed in the PDC
Electronic Shopping Cart.
Why does government
operate distribution
centres as internal
CSAs rather than
establishing external
CSAs directly with
suppliers?
Insurance and risk
assessment services
Risk Management Branch & Government
Security Office
Legal services
Contact your Client Service Coordinator at the
Ministry of Attorney General to access Legal
Services Branch
Mail services
BC Mail Plus
Photocopying equipment,
supplies, and servicing
not available through an
external CSA
Contact Workplace Technology Services
Polling services
Public Affairs Bureau is responsible for polling
services:
Phone:
250 387-1337
Fax:
250 387-5594
Printing services
Queen’s Printer
Records storage,
micrographic and
electronic imaging
services
Corporate Information Management Branch
Statistical services
BC Stats
Travel and
accommodation services
Employee Travel
The volume buying that is possible for the specific items stocked by the
distribution centres provides better value to government than would be
possible through a variety of external CSAs. In addition, the Product
Distribution Centre (Coquitlam) and Distribution Centre – Victoria that
are operated by PSS:

achieve economies through bulk purchasing, opportunity buys,
and other potential discount opportunities;

provide a timely service through product availability and justin-time delivery (normally within 48 hours);
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How does the
distribution centre
price their stock?

meet emergency requirements by maintaining stock levels for
all priority requirements;

ensure quality control through a quality assurance program and
technical evaluation process; and

provide technical assistance including customized program
management services (e.g., uniforms, forms).
Distribution centre goods are priced for cost recovery, including PSS
overheads and delivery costs. Generally, stock is at a preferred price
compared to alternative sources and is priced uniformly throughout
the province.
If you have any questions on the pricing of distribution centre stock,
contact the Product Distribution Centre or Distribution Centre –
Victoria directly.
4.3 Accessing Corporate Supply Arrangements (CSAs)
How do I requisition
goods and services
available through
external CSAs?
To acquire goods or services through an external CSA, ministries
should initiate a requisition through Oracle iProcurement. The
requisition will be electronically routed to the appropriate Expense
Authority for approval. Once the requisition has been approved, a
purchase order will be generated that ministry staff must print and
forward directly to the supplier. The supplier will invoice the ministry
directly and a record of the draw-down against the external CSA will
be recorded by the system.
For CSA acquisitions that cannot be processed through iProcurement,
ministries are responsible for keeping records of the forms used.
How do I requisition
goods through
government’s
distribution centres?
Distribution Centre – Victoria accepts orders for office products,
stationery and government forms from government offices via fax or
electronic shopping cart ordering. Ministries will be able to initiate an
order for items available through the electronic catalogue through
iProcurement, once iProcurement is linked to the electronic shopping
cart. For information on how to order through Distribution Centre –
Victoria, or assistance on ordering through the electronic shopping cart,
contact the DC-V Customer Service Help Desk at 250-952-4460.
The Product Distribution Centre (PDC) printed catalogue includes a
wide variety of medical emergency, pharmaceutical, and maintenance
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products. The PDC website includes ordering instructions for all items
stocked. Uniform items are maintained electronically on the PDC
electronic shopping cart. Ministries will also be able to initiate an order
for items available through the PDC electronic catalogue through
iProcurement, once iProcurement is linked to the PDC electronic
shopping cart.
Emergency procurement requests for items stocked in the distribution
centres will be accepted by telephone but require immediate follow-up
with a customer order form. Where possible, a facsimile of the
customer order form should be forwarded to the appropriate
distribution centre: the Product Distribution Centre (fax 604 997-2025 or
1-800-373-2662) or the Distribution Centre – Victoria (fax 250 356-8545).
The Product and Service Catalogue, Customer Guide to Stationery &
Office Products, and Giftware Guide issued to all ministries contain a
complete listing of stock held in the distribution centres.
How do I requisition
PSS for goods valued
at over $5,000 that are
not available through
the distribution centres
or through an external
CSA?
To requisition goods through PSS, ministries are to submit a requisition
in iProcurement, specifying their requirements in generic terms. Use of
brand names is discouraged except where a match with existing
equipment is clearly essential. If brand names are used to suggest an
acceptable line of products, the request must indicate "or equivalent."
Requisitions for office furnishings should be submitted to PSS as early
in the process as possible, as PSS can provide advice on standards,
costs, availability, and supply options. An information sheet should be
included with each requisition to provide details on the intended use of
the furniture, standards, style, and special needs.
All requisitions for goods received by PSS will be reviewed to ascertain
that the requirement cannot be met through an existing CSA.
Are there options to
requisitioning new
assets or furnishings
through PSS?
Alternatives to requisitioning new assets or furnishings include
repairing an existing asset, trading-in an outdated asset, or obtaining
surplus furnishings from other ministries or from other public sector
organizations. The Asset Investment Recovery (AIR) Branch is
responsible for redistributing surplus assets in government.
Information on AIR’s procedures is available in the Disposal
Handbook.
In the case of stationery items not available through the distribution
centre, they may be available through Direct Access Standing Offer
Agreements. These agreements are established only for the purchase of
distribution centre non-catalogued items. Direct Access Standing Offer
Agreements are established by PSS for use by ministries as well as
other provincial public sector organizations.
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To access goods through a Direct Access Standing Offer Agreement,
send an approved draw-down form directly to the supplier listing the
goods required and referencing the appropriate Standing Offer
Agreement number. The supplier will send the requested goods
directly to ministries along with a copy of the invoice.
4.4 Rentals and Leases
Renting or leasing equipment is another form of acquiring goods. The
policy threshold of $5,000 still applies. Ministries have the authority to
rent or lease equipment up to $5,000 but any total rental or lease valued
at over $5,000 is to be requisitioned through PSS. A purchase
requisition should be completed with the details of the rental or leasing
request and forwarded to PSS.
Ministries are responsible for determining the most economical method
of acquisition to effectively support government operations. This could
be a choice between purchasing and leasing, or a choice between
renting and leasing. PSB can provide assistance to ministries with this
analysis and with advice on identifying the best method of acquiring
the necessary equipment.
Accounting for a rental transaction, which is considered an operating
lease, is different than accounting for a capital lease. Ministries are
encouraged to obtain advice from the Office of the Comptroller General
on whether they have entered into an operating or a capital lease, and
the relevant accounting requirements.
PSS will liaise with the Office of the Comptroller General on all capital
lease transactions entered into on behalf of ministries. Ministries are
responsible for obtaining a receipt from the lessor for the return of the
leased item when a lease expires and is not renewed.
4.5 Vehicle Rentals, Acquisitions, Repairs, and
Maintenance
PSB is responsible for managing the government’s vehicle fleet contract
and for coordinating vehicle rentals. For information on how to access
the vehicle fleet or rent a vehicle that is not available through an
external CSA, or requisition repairs and maintenance not available
through an external CSA, ministries should contact their ministry fleet
coordinator or contact PSB.
Additional information is available on the Employee Travel website
(http://pss.gov.bc.ca/csa/categories/accommodation/search/ ).
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5 PROCUREMENT PROCESSES AND TOOLS
5.1 Different Processes for Different Purposes
The pre-award phase can range from a simple process of deciding to
directly award a contract to a multi-stage process that involves
information gathering, pre-qualification, and solicitation activities. The
extent of the process and the tools used will depend on the complexity,
value, risk, and particular circumstances of each procurement
opportunity.
What are information
gathering activities?
Information gathering activities are processes used to obtain
information on the availability of goods or services, the availability of
potential suppliers, and the level of interest in the opportunity. These
activities are not competitive processes as they are not requesting
quotes or proposals. Consequently, if the available tools are used
correctly, information gathering activities will not result in a Contract
A (bid contract). However, if ministries deviate from standard
wording, there is a risk that the modified wording could result in a
competitive process.
The purpose of these activities is to obtain the information needed to
assess whether a competitive process will be necessary, or appropriate,
and to provide the information needed to define the requirements
before moving into the competitive phase.

A Request for Information (RFI) is generally used to obtain
specific information about a product, service, or process, as well
as the availability and performance of the good or service.

A Request for Expressions of Interest (RFEI) is normally used
when ministries know that a good or service is available but are
not sure if the vendor community is available to compete on the
opportunity or whether the community is even interested in
providing the good or service.

A Notice of Intent (NOI) is a process used to advise the vendor
community of a ministry’s intention to directly award a contract
in a situation where they believe that only one contractor is
available and qualified to provide the goods or services. If the
NOI process identifies that there are other available, qualified,
and interested suppliers, a competitive process will result.
An RFI, RFEI, or NOI may or may not lead to a solicitation process. If
they do lead to a solicitation process, they exist independently of the
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solicitation process, as they are used only to obtain information.
Participation in an information gathering process does not guarantee
participation in the subsequent solicitation unless an RFEI is used to
pre-qualify suppliers (see 5.3 ‚Can an RFEI be used to pre-qualify
potential bidders or proponents?‛).
What are solicitation
activities?
Solicitation activities are competitive processes where ministries are
soliciting quotes or proposals on contracting opportunities and then
evaluating and comparing the responses received. When a vendor
submits a quote or proposal in response to a ministry or Procurement
and Supply Services (PSS) solicitation, a Contract A (bid contract) arises
between the Province and the bidder or proponent. Once a successful
bidder or proponent is chosen, a Contract B (the performance contract)
can be entered into. This results in contractual obligations on the part of
the successful bidder or proponent and the Province.
The standard solicitation processes can be viewed on a continuum of
increasing complexity that becomes more involved as the complexity of
the procurement opportunity increases. The following diagram
illustrates this relationship.
The Procurement Bar
ITQ
Request for Proposals
JSP
Increasing number and complexity
of evaluation criteria and/or project requirements

An Invitation to Quote (ITQ) solicitation method is a pricebased bidding process that is used when the solution(s),
specifications, performance standard(s), and timeframe(s) are
known. Potential bidders are provided with all project
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information—except price—and the evaluation of the bids is
based only on price. An ITQ is rarely a multiple step process.

A Request for Proposals (RFP) is a project-based process
involving solution, qualifications, and price as the main criteria
that define the winning proponent. The RFP solicitation method
is used mainly to acquire services when government wants to
review and implement different and new solutions to a
problem, project, or business process. An RFP can range from a
single-step process for straightforward procurement
opportunities to a multi-stage process for complex and
significant opportunities. A multi-stage process may involve the
use of an RFI or RFEI to obtain background information, as well
as the use of a Request for Qualifications (RFQ) process to prequalify vendors for the subsequent RFP.

PSS has developed the Joint Solution Procurement (JSP) process
for complex opportunities where a more collaborative process
than what can be achieved with a traditional RFP process may
be preferred or necessary. These opportunities include largescale, long term service contracts, as well as situations where
some form of business transformation is taking place. As with
the RFP process, a JSP involves multiple evaluation criteria and
the JSP is always a multi-stage process.
The JSP process supports the sharing of ideas between potential
suppliers and government through iterative and joint
development of the overall solution. In some situations, the JSP
process can lead to a partnering for the service delivery. This
process has been successfully applied to alternative service
delivery initiatives and complex information technology
procurements. For more information on this unique process,
contact SATP.
What are prequalification activities?
Pre-qualification activities use a Request for Qualifications (RFQ)
process to pre-qualify suppliers for a known or unknown opportunity.
The RFQ process can be used as the first stage in a multi-stage
solicitation process for a specific opportunity. Only those vendors who
successfully respond to the RFQ and meet the qualification criteria will
be included in the subsequent ITQ or RFP solicitation process. This
two-staged approach streamlines the solicitation process by screening
potential suppliers based on qualification criteria.
The RFQ process can also be used to pre-qualify vendors who are
interested in supplying goods or services in the future—if, as, and
when requested. A pre-qualified supplier list, which may be ranked,
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will normally be produced as a result of this process. However, there is
no obligation on the part of the Province to actually call on any supplier
on this list at any time to supply such goods or services. The terms and
conditions built into the RFQ template contain specific language to
disclaim any obligation on the part of the Province. Therefore, the
intention is that no Contract A (bid contract) or Contract B
(performance contract) will be formed between the Province and the
pre-qualified suppliers as part of this process. Government policy
thresholds for competing contracts still apply.
What is an Invitation
to Tender?
An Invitation to Tender (ITT) is very similar to an ITQ, as it solicits
tenders from interested vendors. It is used primarily for construction
opportunities, where industry practices are well established, and often
regulated, and the potential bidders are familiar with the tendering
process. A distinction in how ITQs and ITTs are used by the Province is
that ITTs involve the use of public openings. Use of ITTs is limited to
ministries involved in construction activities, and these ministries have
established their own processes and guidance with respect to the
tendering process.
5.2 Risk Assessment and the Procurement Process
What could go wrong?
Ministries spend about $2 billion annually to acquire the goods and
services required to deliver their mandated programs. If the
procurement process is flawed, government may not receive good
value for this significant expenditure or may find itself involved in
costly litigation processes with vendors who believe they have not been
treated fairly. In addition, it is important that the cost of the
procurement process itself be reasonable given the value of the
procurement.
The following table presents some potential risks within the
procurement process, the possible causes, and options to address these
risks.
Potential Risk
Possible Causes
Ways to Manage Risk
Process does not identify the
best good or service
 Requirements not specific or
Use an RFI to obtain information
needed to define requirements.
accurate enough
 Evaluation criteria not appropriate
or appropriately weighted
 Not competed broadly enough
Obtain assistance from PSS to define
requirements or establish evaluation
criteria and weightings.
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Potential Risk
Possible Causes
Ways to Manage Risk
 Ministries do not fully describe the
Accept the risk as a trade-off for a
timely and more streamlined
process.
opportunity sufficiently to attract
the interest of potential vendors
 Ministries do not allow enough
time for vendors to respond
Process does not select the
most qualified supplier
 Qualifications not specific enough
 Evaluation criteria flawed
 Not competed broadly enough or
competed too broadly
 Not enough time for all qualified
suppliers to respond
ITQ process does not award
the contract to the supplier
with the best price
Process is not efficient
 Evaluation criteria flawed
 Not competed broadly enough to
include suppliers with competitive
prices
 Process is too rigorous and costly
for the value and nature of the
opportunity
 Process allows unqualified
vendors to respond, thus time is
spent evaluating their responses
 Qualified vendors not responding
because process appears too
daunting given the value of the
opportunity
 Irrelevant evaluation criteria take
time to evaluate but add no value
Obtain advice or assistance from
PSS to define qualifications and
evaluation criteria.
Accept the risk as a trade-off for a
timely and more streamlined
process.
Obtain advice or assistance from
PSS to identify appropriate
evaluation criteria.
Accept the risk if the price
difference is less than the increased
cost of a more rigorous process.
Obtain advice from PSS on
alternative, stream-lined processes.
Use an RFEI or an RFQ to determine
the level of interest from qualified
vendors before issuing an ITQ or
RFP.
Use an RFQ in conjunction with an
ITQ or RFP to ensure all responses
will be from qualified vendors.
Obtain advice from PSS on
identifying critical and relevant
criteria.
Accept the risk of extra process to
demonstrate a visibly fair process in
situations where there is significant
competition or opportunity has a
high profile.
Only one vendor responds to
an ITQ or RFP
 Vendors not provided sufficient
time to respond
 Opportunity not adequately
advertised
 Process is too rigorous and costly
for the value and nature of the
opportunity
Provide adequate time for vendors
to respond to your solicitation
documents.
Post ITQs and RFPs on BC Bid.
Obtain advice from PSS on
alternative, stream-lined processes.
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Potential Risk
Possible Causes
Ways to Manage Risk
Process is not fair or legal
 Using the wrong procurement
Obtain advice or assistance from
PSS regarding which tools are best
for your circumstances and advice
on how to use these tools.
process and tool
 Using standard procurement
processes or tools incorrectly, such
as using an RFI or an RFEI to
solicit quotes or using an ITQ for a
process that is evaluating on more
than price
 Not enough time is allowed for
vendors to respond
 Process identified in procurement
documents is not followed by
ministries
 Goods or services contracted for
are substantially different from the
requirements included in the
solicitation documents
Provide adequate time for vendors
to respond to your solicitation
documents.
Do not deviate from your initial
requirements or the process as
presented to vendors in
procurement documents.
Ensure your process complies with
core policy, which reflects the
requirements of the Agreement on
Internal Trade (AIT) and contract
law.
 Policy regarding fair competition
is not complied with
What can ministries do
to minimize these risks
and achieve best
value?
Ministries are challenged to identify procurement strategies that
balance the objective of achieving best value with the objectives of a
fair, legal, and competitive process. The likelihood of a successful
procurement process can be enhanced by:

Completing a risk matrix as part of the planning process for
large and complex procurements. PSS and Risk Management
Branch can provide assistance with this step.

Sharing as much information with potential suppliers, as early
as possible, on the timing, requirements, and expectations of the
procurement process. This could include describing the
anticipated stages in a multi-stage procurement process or
including the terms and conditions of the intended contract so
that respondents know exactly what they are competing on.

Using standard government procurement processes and tools
consistently and correctly.

Not deviating from the procurement process that is
documented in information gathering, pre-qualification, and
solicitation documents.

Ensuring the performance contract awarded to the successful
supplier reflects the requirements included in the ITQ or RFP. If
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the performance contract deviates substantially from the
requirements competed against in the original ITQ or RFP,
unsuccessful bidders and proponents may challenge the process
and claim that they would have bid or proposed differently if
they had known what government was really looking for. In
addition, vendors who chose not to respond to the opportunity
may claim that they would have responded had they known the
requirements were different.

Requesting advice and assistance from PSS with the overall
procurement strategy and/or individual steps in the process, as
necessary.
5.3 Request for Information (RFI) and Request for
Expressions of Interest (RFEI)
When should an RFI
and RFEI be used?
The RFI and RFEI processes are designed to gather information that can
help in the development of a future solicitation. They are not designed
to solicit bids or proposals; therefore, they do not lead directly to a
contract. However, they may lead to obligations on the part of
government.
A response to an RFI or an RFEI does not pre-qualify a potential
contractor and does not influence their chances of being the successful
bidder/proponent on any subsequent opportunity. To be fair to
vendors, the information requested should be non-proprietary and
therefore be available to anyone who requests it.
The information gathered will help ministries plan a fair and costeffective solicitation process, define the requirements for the solicitation
documents, or identify whether there are interested suppliers. For
example, if an RFEI identifies that only one contractor is interested or
capable of providing the service, a direct award may be the best process
as it does not exclude potential suppliers and it avoids the cost of
developing and issuing an RFP for one response. Alternatively, if a
significant level of interest is identified, ministries can use other tools to
pre-qualify potential bidders/proponents to streamline the solicitation
process, saving time and effort for both ministries and the vendor
community.
What can go wrong if
an RFI or an RFEI is
not used correctly?
If the RFI and RFEI processes are followed correctly, they will not
establish a legal contract: neither a Contract A (bid contract) nor a
Contract B (performance contract). However, if the processes are used
inappropriately to solicit quotes or proposals, there is the potential to
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create a liability to government. These tools are designed largely to
gather information. Consequently, they do not contain the language
that exists in solicitation tools to protect the interests of the Province
and vendors.
Are there standard RFI
and RFEI templates?
Government has not developed standard templates to be used in either
an RFI or an RFEI process as the documents need to be customized to
the unique information needs of each procurement opportunity.
Examples of RFI and RFEI documents, as well as advice on how to
develop a document to meet your needs, are available through the
Purchasing Services Branch (PSB).
At a minimum, an RFI or an RFEI should include:

a description of the RFI or RFEI process that vendors will be
engaging in, including key terms and conditions (the rules), the
anticipated schedule, and a statement that this process is
separate from any ensuing solicitation;

an explanation of why the requested information is of interest to
government;

a statement that the Province will not be under any obligation to
advise any respondent to the RFI/RFEI of the issuance of any
subsequent bidding documents, and that it is incumbent on all
vendors to monitor BC Bid to find out about the posting of any
subsequent bidding documents;

a description of the anticipated project scope if ministries are
seeking specific interest; and

a comment on the type of procurement process that may follow,
if possible. For example, if the pre-award process is expected to
include a pre-qualification process, potential suppliers could be
advised that once the RFQ process is complete, an RFP may be
issued to pre-qualified suppliers.
The type of information that may be requested through an RFI or an
RFEI includes:

a company profile, including business capabilities and
capacities; technical and project management capabilities; and
staff qualifications;

information on the types of goods or services available that may
meet your requirements; and

charge-out rates. (NOTE: Do not ask for a quote, offer, bid, or
proposal at this time. The information requested is standard
supplier rates.)
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How should an RFI or
an RFEI be advertised?
Can an RFEI be used
to pre-qualify potential
bidders or
proponents?
An RFI or RFEI add the greatest value as part of a multi-stage, preaward process for significant procurement opportunities. Therefore, in
most situations, these documents should be advertised on a sufficiently
wide geographic scale and be advertised often enough to ensure that all
potential suppliers have an opportunity to submit information. It is
government policy that the Agreement on Internal Trade (AIT)
thresholds for competing and advertising a procurement opportunity
also apply to RFI and RFEI documents based on the expected value of
the future contract. Posting the RFI or RFEI on BC Bid will give it the
widest distribution. In addition to posting on BC Bid, other acceptable
methods include:

advertising in the local press or trade publications;

posting a notice in provincial government buildings serving the
area where the work is to be undertaken (such as in the local
courthouse); or

making an announcement in the British Columbia Gazette.
The RFEI process is sometimes used in the marketplace to pre-qualify
potential or interested suppliers. However, ministries are encouraged
to use an RFQ for the pre-qualification process as it more clearly
communicates to potential bidders and proponents that the process is
looking for qualifications, not just expressions of interest. If an RFEI is
used to pre-qualify suppliers, the requirements of the AIT apply.
5.4 Notices of Intent (NOI) and Direct Awards
When can a contract be
directly awarded?
Government policy allows ministries to negotiate and award a contract
without a competition if:

the requirement is valued at under $25,000;

an emergency exists and requirements cannot be satisfied in
time by means of a competitive process;

a process delay would interfere with a ministry’s ability to
maintain security or order, or to protect human, animal, or plant
life or health;

the required service is confidential; or

it can be proven that only one contractor is qualified to provide
the service.
Ministries are responsible for doing research to prove that only one
vendor can provide the good or service. For large procurements, an
RFI, RFEI, or RFQ can be used to determine the extent of interest or
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availability of qualified suppliers. For small opportunities, ministries
can directly call various suppliers to determine if they meet the
requirements or are interested. Careful notes of the phone calls made
should be kept to demonstrate the effort undertaken to determine
whether or not there were alternative suppliers.
When a ministry is of the opinion that only one contractor is qualified
to provide the good or service, and the opportunity would otherwise
be competed, the ministry is required to issue a Notice of Intent (NOI).
An NOI is the method by which a ministry informs vendors that
negotiations with a specified contractor will take place without a
competitive process. This process is undertaken to ensure that other
potential suppliers have not been inadvertently missed. If additional
qualified and interested vendors are identified through the NOI
process, the opportunity must be competed.
When a contract for services valued at more than $50,000 is to be
directly awarded and it cannot be strictly proven that there is only one
qualified supplier, an NOI must be posted on BC Bid. An NOI is not
required when one of the direct award criteria are met. Although the
policy threshold for issuing an NOI is $50,000, ministries are
encouraged to post an NOI when an opportunity valued at $25,000 or
more is to be directly awarded and it cannot be strictly proven that
there is only one qualified supplier. The length of time that an NOI is
posted on BC Bid should reflect the timeframe that would have existed
had the opportunity been competed. An NOI should be posted for a
minimum of 8 calendar days.
Examples of NOI documents are available from Purchasing Services
Branch (PSB). Staff at PSB are available to help ministries prepare and
post NOI documents. An NOI should include:

a description of the project;

the amount of the proposed contract;

the reason for the proposed direct award;

the proposed contractor’s name; and

a statement giving the vendors an opportunity to object,
including details on where to file an objection.
5.5 Request for Qualifications (RFQ)
When should an RFQ
be used?
When there is the potential for significant interest in a specific contract
opportunity, the RFQ process can be used to pre-qualify suppliers who
will then compete on the opportunity. This can make the solicitation
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process more efficient as there will be fewer responses and all of them
will be from qualified suppliers. It is far easier, less time consuming,
and fairer to vendors to evaluate several proposals from qualified
proponents rather than dozens or hundreds of proposals from both
qualified and unqualified proponents.
An RFQ process can also be used to create a pre-qualified supplier list
for a future opportunity. This pre-qualification list can add value when
similar services will be required for multiple contracting opportunities
and the ministry wants to quickly select a qualified supplier when the
next opportunity arises. The process for selecting suppliers from this
list must be explained in the RFQ document.
What can go wrong if
an RFQ is not used
correctly?
The greatest risk associated with incorrect use of an RFQ process
incorrectly occurs when the pre-qualified supplier list is mismanaged.
If the process used to draw from a pre-qualified supplier list is not
consistent with the process explained in the RFQ document, legal
liability may be created. Pre-qualified suppliers who are not selected
for a contract opportunity may successfully challenge a ministry’s
decision to award the contract to another supplier if the stated process
is not followed.
If an RFQ process is inappropriately used to request proposals, a
Contract A (bid contract) may be created with every vendor who
responds and, without the protective legal language normally
contained in RFPs, the Province may find itself at risk. If used correctly,
the RFQ process does not create any commitment on the part of the
Province to enter into a contractual arrangement with any respondent.
The RFQ process is designed to pre-qualify a group of suppliers who
will be given an opportunity to compete on a specific opportunity or
who may share in a future opportunity.
Is there a standard
RFQ template?
An RFQ template is available from PSB. The template can help
ministries develop a document that:

provides enough information to allow potential suppliers to
understand the nature of the opportunity, as well as the
information and qualifications ministries are looking for;

explains the pre-qualification process that vendors will engage
in, including key terms and conditions, and the anticipated
schedule for the pre-qualification process;

explains whether the pre-qualification process is one stage in a
multi-stage solicitation process for a specific contract
opportunity or whether a pre-qualification list will result for use
in future opportunities;
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Are there
recommended
processes for selecting
a supplier from a prequalification list?

includes the project requirements, evaluation criteria,
mandatory selection criteria, and scoring system (which may
include pass/fail scores);

explains the method for selecting a contractor from a prequalification list or the method for establishing a short-list of
suppliers for a subsequent competition; and

specifies the period during which the pre-qualification list will
be valid and whether opportunities to be registered on the list
will be provided continuously or at regular intervals.
The process for selecting suppliers from a pre-qualification list must be
consistent with the process that is explained in the RFQ document used
to establish the list. The following selection methods are suggested
means by which contracts may be established with a supplier on a prequalification list.

If one of the provisions of government’s direct award policy is
met, a contract may be directly awarded to a supplier on the
pre-qualification list.

If the expected contract value is less than $5,000 for goods or
less than $25,000 for services or construction, a contractor can be
selected from the pre-qualification list. Suppliers on the prequalification list that meet criteria for specific projects (e.g.,
specialization or geographic location) should have a reasonable
opportunity to be selected. If there are several suppliers on the
list who meet the criteria for specific projects, they should be
rotated. Suppliers on the pre-qualification list may be removed
from consideration for a specific project if they do not meet the
required qualifications for the project.

If the expected contract value for services is between $5,000 and
$25,000 for goods, and $25,000 and $100,000 for services and
construction, the contractor may be selected through:
 a direct award if it can be verified that only one of the
suppliers on the pre-qualification list is available to
undertake the project;
 a project-specific assessment of the supplier
qualifications provided in the RFQ process to determine
the best qualified supplier to undertake the work; or
 a competitive process between a minimum of three
suppliers on the pre-qualification list that evaluates the
supplier’s proposed approach, pricing, or other elements
required for a specific project. Each supplier on the prequalification list who meets criteria for specific projects
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(e.g., specialization or geographic location) should have
a reasonable opportunity to compete.

If the expected contract value for goods or services is over the
AIT thresholds of $25,000 for goods and $100,000 for services,
the contractor is to be selected through a competitive process
between all suppliers on the pre-qualification list who meet the
criteria for a specific project (e.g., specialized skill set). The
competitive process will evaluate each supplier's proposed
approach, pricing, or other elements required for the project. In
addition, the process to identify pre-qualified suppliers for
goods, services, and construction opportunities, which may be
over the associated threshold, must be advertised annually on
BC Bid.
When undertaking a further competitive process to select from the prequalification list, valid bids or proposals submitted by a supplier who
is on the pre-qualification list but who wasn't selected from the list and
invited to submit on the particular opportunity should be considered.
To the extent possible, pre-qualified suppliers’ lists should contain the
names of at least three potential suppliers.
5.6 Invitation to Quote (ITQ)
When should an ITQ
be used?
An ITQ is used in government when the opportunity can be defined
specifically such that the only competing factor is price. ITQs have
historically been used to acquire goods. However, where required
services can be defined to the extent that price is the only variable, an
ITQ can be used to solicit quotes on service opportunities. Examples of
where this is possible include security services and maintenance
services.
By bidding, the vendor agrees to supply the goods or services exactly
as they are described in the ITQ. If a response does not meet all of the
mandatory terms and conditions, it is rejected and the lowest qualified
quote is normally awarded the contract. If you have concerns with the
lowest quote received, such as the vendor’s ability to deliver at that
price, contact PSB for assistance.
What can go wrong if
an ITQ is used
incorrectly?
Using an ITQ to evaluate on more than price creates a risk to
government as the protective language normally found in RFPs is
missing from the ITQ template. Therefore, to evaluate on multiple
criteria, ministries are required to use the RFP template, as it includes
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the appropriate language to limit liability in the context of relevant case
law.
ITQs can be used to request additional information from bidders, as
long as the information is not used to evaluate and compare the bids.
This additional information is often requested to confirm that the
bidder meets the required terms and conditions needed to be a
qualified bid. All bids that meet the mandatory requirements are then
evaluated solely on price. As an example, if an ITQ is used to solicit
quotes on the provision of courier services, mandatory qualification
criteria may include the availability of trucks and the existence of
criminal records checks.
It is also important to use the ITQ for Services document in conjunction
with standard contract templates, as the ITQ is designed to build on the
terms and conditions included in standard government contracts.
Does an ITQ create a
contractual obligation?
Yes, a Contract A (bid contract) is created between the Province and
any vendor who submits a compliant quote or bid in response to an
ITQ. At the end of the solicitation process, a Contract B (performance
contract) is established between the Province and the successful bidder.
Is there a standard ITQ
template?
Yes, there are two standard ITQ templates. One ITQ template is used
exclusively by PSB to acquire goods on behalf of ministries. A second
ITQ template has been developed for use when acquiring services,
where the required service can be defined to a point that price is the
only variable. The extent of information provided in an ITQ document
will be a function of the value and complexity of the contracting
opportunity.
The standard ITQ for Services template may be used for opportunities
valued at $25,000 or more and should include:

background to the requested project;

a summary of the required service, including location, and both
administrative and logistical requirements;

specific timeframes or milestones;

mandatory qualifications, experience, skills, and abilities of the
contractor;

any requirements for references;

submission/response format, deadline, and location;

pricing and/or costing requirements/rationale; and

a copy of the contract document, including all terms and
conditions.
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For opportunities valued at less than $25,000, ministries should
consider using the ITQ for Services template. However, it is possible to
provide the information verbally, such as by phone, in those situations
where timelines are tight, the opportunity is small, and the potential
suppliers are few.
Phone quotes or other forms of comparison shopping may also be used
to acquire goods valued at less than $5,000 and services valued at less
than $25,000. At least three vendors should be contacted and ministries
are expected to keep a record of the information discussed with the
vendor over the phone, including:

a description of goods or services ministries are looking for;

the preferred schedule;

dates the contractor is available or delivery of goods is required;

insurance or WCB requirements; and

pricing, including unit prices, lump sum, and hourly/daily rate
and/or estimated project hours/days and/or total estimated
project price.
When can I use an ITQ
for Services instead of
an RFP?
The ITQ for Services template can be used only when the required
service can be defined to a point that price is the only variable. If the
evaluation process will include more evaluation criteria than price, the
RFP is the appropriate tool.
How should an ITQ be
advertised?
An ITQ for potential service contracts valued at $100,000 or more must
be posted on BC Bid. As BC Bid is easily accessible by both ministries
and vendors, it is recommended that all ITQs for services with a value
of more than $25,000 be posted on BC Bid. When a pre-qualified list of
bidders has been established, the ITQ can be forwarded directly to
these bidders, rather than being posted on BC Bid. For opportunities
valued at less than $25,000, the ITQ can be forwarded to known
potential bidders or phone quotes (or quotes via e-mail) can be
obtained from a minimum of three vendors.
If ministries would like to solicit quotes through BC Bid’s electronic
bidding service, contact PSB or check the BC Bid website.
5.7 Request for Proposals (RFP)
When should an RFP
be used?
The RFP solicitation method is used when government wants to review
and implement different and new solutions to a problem, project, or
business process. The RFP document provides proponents with an
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overview of the perceived or expected requirements. It does not give a
detailed project plan, as it is expected that this is what the proponent
will develop and explain in their response to the RFP. The proposal will
then be evaluated to determine if the proponent has the necessary
understanding of government’s needs so as to deliver a completed
project in accordance with such needs. The evaluation will be based on
several criteria, including price. Other criteria will be used to evaluate
additional aspects of the proposal, such as the quality of the proposed
solution and the qualifications of the proposed team.
In recognition of the substantial investment that proponents often make
in preparing their responses to RFPs, ministries should not issue RFPs
unless they have established a clear intent to issue a contract and a
funding source exists.
Preparing a proposal may be expensive for a vendor, so it is important
to ensure that the cost of preparing a submission is not excessive in
relation to the business opportunity. If vendors view the process as too
costly in relation to the potential contract, the RFP may not result in
identifying a qualified supplier. In addition, vendors interested in
submitting a proposal need to know that they all have an equal
opportunity to win the business.
What can go wrong
with an RFP process?
If a proponent challenges the legality of an RFP process, government
must rely on the terms and conditions built into the RFP template as
part of the response to the proponent. Therefore, changing the wording
in these templates may remove some of the protective language
developed by Legal Services Branch, and create risk and potential
liability to government. If ministries believe that something in the
templates is not applicable to their project, advice should be sought
from Legal Services Branch or PSS before changes are made.
In addition, ministries should avoid taking any actions or making any
decisions during an RFP process that could be construed as providing
an unfair advantage to any proponent, as legal proceedings could
result.
If the evaluation process stated in the RFP document is not followed,
the ministry responsible may find itself being challenged by
unsuccessful proponents.
Does an RFP create a
contractual obligation?
Yes, a Contract A (bid contract) is created between the Province and
any proponent who submits a compliant proposal in response to an
RFP. At the end of the solicitation process, a Contract B (performance
contract) is established between the Province and the successful
proponent.
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Is there a standard RFP
template?
Yes, a Request for Proposals (RFP) Template has been developed to
accommodate a wide range of projects, usually of significant value,
complexity, and risk. The terms and conditions included in this
template reflect the common law of contracts as it applies to an RFP.
The RFP template is colour-coded to allow ministries choices and
options when completing it. The RFP template is available on the
Purchasing Services Branch website (http://www.pss.gov.bc.ca ).
The RFP template has been designed for use with various formats of
the General Service Agreement and with custom contracts. The
template provides for following three contracting format options.

The General Service Agreement, without additional schedules.
In this situation, the RFP template will reference the standard
agreement.

The General Service Agreement, with additional schedules. In
this situation, the General Service Agreement and any included
schedules, will be included as part of the RFP document.
(Completion instructions for the General Service Agreement are
available at http://pss.gov.bc.ca/psb/gsa/gsa_index.html.)

A custom contract, with necessary advice from Risk
Management Branch, Legal Services and Privacy Protection. In
this situation, applicable contract clauses will be included in the
RFP document.
It is important to remember that an RFP process normally results in the
establishment of a Contract A (bid contract) between the Province and
any proponent who submits a compliant proposal, and that the RFP
document defines the terms and conditions for the bid contract. The
extent of information required by the current RFP templates is
necessary to clearly define and limit the obligations of the Province and
define the obligations of any proponents.
Although RFP templates may appear long and technical, they are not
difficult to complete. The challenge is to develop an RFP document that
clearly defines ministry requirements while ensuring that the effort to
respond is not too costly in comparison to the value of the contracting
opportunity. For example, if an opportunity is not complex and of
small value, requesting a short written proposal, supplemented by
interviews or presentations from proponents, may be more efficient
and just as effective as a lengthy, written proposal.
Purchasing Services Branch (PSB) and Strategic Acquisitions and
Technology Procurement Branch (SATP) can advise ministries on how
to streamline their RFP process to make it easier for vendors to respond
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while still maintaining an effective process that protects the interest of
the Province.
What information
should be included in
an RFP?
The scope and detail included in an RFP should reflect the complexity,
significance, and risk of the procurement opportunity. An RFP
describes the program or requirement for which the ministry would
like proposals and it lays out the criteria that will be applied to the
submission and evaluation of proposals. An RFP will become more
detailed and complex, and the level of detail required in responses will
increase, as the opportunity increases in value and complexity.
Proponents should be provided with all information relevant to the
requirement, including:

location of ministry or client site(s);

restrictions on the scope of work;

deliverables or outcomes;

risk and critical success factors;

performance standards;

governing legislation;

reporting requirements; and

information that some proponents may have already had access
to.
An RFP must also describe the terms and conditions of the RFP
process, including the mandatory and desirable criteria that will be
applied to evaluate the submissions received.
What are mandatory
criteria?
Mandatory criteria are requirements that a proposal must meet in order
for it to be considered. In an RFP process, generally, mandatory criteria
are either met or not—there is no grey area. Therefore, mandatory
criteria should be objective and are normally answered with a ‘yes’ or a
‘no’.
Mandatory requirements can be both project-related (e.g., academic
qualifications, specific type of equipment or technology) or
administrative (e.g., specific number of proposal copies submitted by a
specific time, to a specific location, in a specific format). The more
mandatory requirements there are, the more likely an otherwise
satisfactory, and possibly winning, proposal will fail the mandatory
test and be disqualified. Therefore, the number of mandatory
requirements should be kept, whenever possible, to the bare minimum.
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What are desirable
criteria?
The desirable criteria reflect what the proposals are being evaluated
and compared against. Desirable criteria can usually be broken down
into three key areas: solution, proponent capability, and price. An RFP
should describe the desirable criteria, including relative weightings,
which will be applied in evaluating responses.
The evaluation criteria will be different for each RFP document,
reflecting the individual needs and priorities of each project. When it
comes to evaluating submissions, these stated criteria are the only
criteria upon which ministries can base their decision (i.e., it is
important not to have any hidden criteria). Although a detailed point
breakdown need not be included in your RFP, it is advisable to include
it and, at a minimum, it should be prepared before ministries look at
any submissions received.
If ministries have gone through a pre-qualification process and issued
the RFP only to pre-qualified suppliers, ministries may choose not to
include proponent qualifications as part of evaluation criteria.
Alternatively, they may assign it a lower weighting.
Before developing evaluation criteria, ministries need to decide how to
evaluate price. PSB and SATP are available for advice on options for
evaluating price, including whether or not to include a budget amount
in the RFP.
What are minimum
scores?
Minimum scores, which may also be called upset scores, are set out in
the RFP for all or a subset of the desirable criteria.
Note:
As a general guideline, pricing criteria does not have a
minimum score.
If a proposal does not achieve any of the minimum scores defined in
the RFP, the proposal can no longer be considered. The use of
minimum scores prevents a situation where the best overall score has
actually failed in a critical component of the desirable criteria.
How should responses
be evaluated to ensure
fairness?
During the evaluation process, it is important to treat all proponents
fairly and to evaluate their proposals in accordance with the process
described in the RFP document. Ministries should keep notes
explaining each score assigned during the evaluation process. Only the
information provided in the proposal may be included in the
evaluation process. Consideration of additional information that is
known to the evaluators, but not presented in the proposal, would be
unfair to the other proponents.
The first step is to evaluate each proposal for compliance with the
mandatory criteria. Any proposal not fully meeting every one of the
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mandatory criteria must be rejected without further consideration.
After the mandatory criteria have been evaluated, those proposals that
meet all mandatory criteria are assessed against the desirable criteria.
The proposal that demonstrates the best overall project solution,
qualifications, and price (the aggregate highest score) wins the contract
subject to negotiation of outstanding issues. The following table
presents a format that can be used to evaluate proposals, and
accumulate and compare scores.
Mandatory Criteria
Weighting
Available
Points
0%
0
Required number of
copies
Yes/No
Project team lead has
required professional
credentials
Yes/No
Desirable Criteria
100%
200
Suitability of solution
40%
80
Consistency of
solution with
program goals
30
Creativity of proposal
25
Implementation plan
25
Price
35%
70
25%
50
Proponent
A
Proponent
B
Score = (lowest
proposed price/this
price x total marks)
Company Background
Experience
25
Team skills
25
TOTALS
100%
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Ideally, everything from the proposal can be written into a standard
government contract and the proponent will readily sign. However, if
the best proposal is deficient in terms of the desirable criteria or it is not
a workable solution, ministries should announce that the RFP process
has concluded and no suitable proposal was received. If, however, the
details that have to be worked out are relatively minor (e.g., fine-tuning
the scope, schedule, or project plan), ministries can proceed to
negotiation of a contract with the proponent. The requirements as
stated in the RFP should not change significantly during the contract
negotiation stage or unsuccessful proponents could reasonably claim
they would have submitted a different proposal had they known this
was what the ministry really wanted.
Is a debriefing
required?
A vendor debriefing for unsuccessful proponents should be offered as a
last step in the RFP process. The purpose of a debriefing is to provide
feedback to proponents on where they did well, where their proposal
was weak, and how they could improve future proposals.
A debriefing process is not an opportunity for unsuccessful proponents
to provide additional information, request a second evaluation process,
or find out how their proposal compared to others. It is also not an
appeal process, although it may be the first step in the Vendor
Complaint Review Process. Information on this process is available in
Chapter 6 – Core Policy and Procedures Manual and from the
Procurement Governance Office.
The debriefing process should take place as soon as possible after the
RFP process has concluded. Materials may be prepared for the
debriefing. These materials are accessible under the Freedom of
Information and Protection of Privacy Act and should be developed with
the knowledge that they are likely to be released. The individual
conducting the debriefing process should be someone who was
involved in the evaluation process; most often, this is the evaluation
committee chair. For specific guidance on what can and cannot be
released during a debriefing, contact your ministry procurement
specialist or PSS staff (at either PSB or SATP).
Debriefings should be conducted with one vendor at a time to ensure
the privacy of their information and proposal. At the beginning of each
debriefing, the purpose and limitations to the debriefing process
should be explained to the proponent. Rather than the ministry
presenting reasons and rationale to vendors, the debriefing process
should be led by questions from the vendor that the ministry answers
to the extent that it does not compromise other vendor information. On
occasion, the successful proponent may also request a debriefing as an
opportunity to learn from the process.
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Is additional
information on
preparing RFPs
available?
PSS has developed a document, Ministry Guide to the Request for
Proposals Process, which provides step-by-step guidance on preparing
an RFP and includes examples of related documents, including: a
release of information checklist; a sample letter to an unsuccessful
proponent; a draft agenda for the Proponents’ Meeting; and a sample
newspaper ad.
5.8 Choosing a Pre-Award Strategy
Information Gathering Tools
The following table provides general guidance on when an RFI, an
RFEI, or an RFQ should be used to obtain information needed to
develop a solicitation strategy.
RFI
RFEI
RFQ
Information Required
General vendor or product
information
X
Information on vendor
interest in opportunity
X
Information on vendor
capability/qualifications
X
Pre-qualified suppliers' list
desired
X
X
Price-Based Solicitation Tools
The ITQ is the standard tool used by government for solicitations that
are evaluating only on price. The following table summarizes when the
standard ITQ template should be used and when an informal ITQ
process (verbal request for quotes) is appropriate. The table also
identifies when posting on BC Bid or an NOI is mandatory,
recommended, or optional.
Evaluation is based
only on price
Services/Construction
> $100,000
Services/Construction
> $25,000 and <$100,000
ITQ
Template
R
R
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ITQ
Informal
Post on
BC Bid
NOI if
direct
award
M
M
R
M>$50K,
R>$25K
41
Evaluation is based
only on price
Services/Construction
< $25,000
ITQ
Template
ITQ
Informal
Post on
BC Bid
NOI if
direct
award
O
R
R
O
Goods < $5,000
R
O
Goods > $5,000*
R
R
O
Goods > $25,000*
R
M
M
Note:
M = Mandatory; R = Recommended; O = Optional;
* = PSB Only
Solution-Based Solicitation Tools
The following table provides general guidance on the most appropriate
RFP tool to use when soliciting responses which will be evaluated
against multiple criteria. The table also identifies when posting on BC
Bid or an NOI is mandatory, recommended, or optional.
The JSP (Joint Solutions Procurement) process is not reflected in this
table due to its uniqueness. For information on whether the JSP process
is appropriate for your procurement opportunity, contact SATP.
Evaluation based on multiple
criteria (may include solution,
price, and vendor capability)
RFP
IT
Services
RFP
Post on
BC Bid
NOI if direct
award
Services/Construction
> $100,000
R
M
M
Services/Construction
> $25,000 to <$100,000
R
R
M>$50K,
R>$25K
Services/Construction
R
R
O
Goods < $5,000
R
O
O
Goods > $5,000*
R
R
O
Goods < $25,000*
R
M
M
< $25,000
Information Technology
< $100,000
R
R
M>$50K,
R>$25K
Information Technology
> $100,000 not complex
R
M
M
M
M
Information Tech
> $100,000 and complex
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Evaluation based on multiple
criteria (may include solution,
price, and vendor capability)
Alternative Service Delivery
Opportunity
Note:
RFP
IT
Services
RFP
Post on
BC Bid
NOI if direct
award
O
O
M
M
M = Mandatory; R = Recommended; O = Optional;
* = PSB Only
5.9 Contract Template
This General Service Agreement (GSA) is the standard contract
template used by government. The GSA replaced both the Service
Contract (General) and the Service Contract (General) IT effective
October 2005. The General Service Agreement, and appropriate
schedules, contains the detailed terms and conditions necessary to
protect the interests of the province. The contract form and related
schedules are updated from time to time, so it is important to access the
most current version of the GSA which is available at
http://.gov.bc.ca/psb/gsa/gsa_index.html.
The standard RFP template has been designed to work in conjunction
with the GSA. If the most current version of the contract template is not
used, there is a risk that the terms and conditions will not reflect the
expectations of the most current case law.
The language in the GSA and Schedules addresses issues of liability
and indemnity, risk management, and ownership of intellectual
property. If ministries have questions on any complex contracting
issues, ministries should contact PSS, Legal Services Branch, Risk
Management Branch, or the Intellectual Property Program (IPP), as
appropriate. Refer to Section 6.0 for contact information.
Legal Services Branch has developed the General Service Agreement
for use with service opportunities under $100,000. Ministries are
required by policy to use this template for service opportunities under
$100,000. If this standard contract is not appropriate, ministries are
required to work with Legal Services Branch to develop appropriate
contract language, terms, and conditions. Ministries are also required to
work with Legal Services Branch to develop specialized contracts for
any contract opportunity valued at $100,000 or more.
Use of the contractor’s contract form should be avoided as it is unlikely
to contain the terms and conditions needed to protect the interests of
the Province and to limit potential damages, should a problem arise.
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6 CONTACTS
The main branches within Procurement and Supply Services with
responsibility for supporting government procurement activity are:
Purchasing Services Branch, Strategic Acquisitions and Technology
Procurement Branch, and IT Procurement Branch. Any branch can be
contacted for advice and assistance related to the procurement process.
The Procurement Governance Office is available to provide advice on
the expectations of government procurement policy.
Purchasing Services Branch (PSB)
Phone:
250 387-7300 (Victoria)
Email:
purchasing.gov.bc.ca
Website:
http://www.pc.gov.bc.ca/
Strategic Acquisitions and Technology Procurement Branch (SATP)
Phone:
250 387-1457
Email:
[email protected]
Website:
http://www.saip.gov.bc.ca/satp/contacts.htm
IT Procurement Branch
Phone:
250 387-8545
Fax:
250 356-0303
E-mail:
[email protected]
Procurement Governance Office
Phone:
250 356-8331
Fax:
250 356-6164
E-mail:
[email protected]
Website:
http://www.fin.gov.bc.ca/ocg/pgo/pgo.htm
In competing procurement opportunities and entering into contracts
with vendors, ministries may want to obtain specific advice from staff
at Legal Services Branch or staff at Risk Management Branch. The
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Intellectual Property Branch is available for advice with respect to
intellectual property rights that arise through many service contracts.
Legal Services Branch,
Ministry of Attorney General
Contact your Client
Service Coordinator
Risk Management Branch,
Ministry of Finance
250 356-1794
Procurement Governance Office,
Ministry of Finance
250 356-8331
Intellectual Property Branch,
Ministry of Management Services
250 356-5055
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7 GLOSSARY AND DEFINITIONS
Bidder
A vendor who responds to an Invitation to Quote (ITQ) by
submitting a bid is referred to as a bidder. The vendor who is
awarded the contract is referred to as the successful bidder.
Contractor
A contractor is a supplier to government who is providing goods
or services subject to the terms and conditions of a contract with
the Province. Most often, the term contractor is used to refer to a
supplier of services.
Corporate Supply Arrangement (CSA)
A corporate supply arrangement (CSA) is an arrangement in
which a supplier has offered to provide goods or services to one
or more government or public sector entities for a specified
period of time in accordance with agreed terms and conditions.
The supplier can be external to government or the supplier can be
a government program or office.
Invitation to Quote (ITQ)
Invitation to Quote (ITQ) refers to the process and document
used in government to solicit bids or quotes from vendors for the
provision of clearly specified goods or services. The bids received
in response to an ITQ are evaluated on price only.
Pre-qualification List
A pre-qualification list is a list of potential suppliers who have
been pre-qualified for a specific or future procurement
opportunity.
Proponent
The term proponent refers to a vendor who responds to a Request
for Proposals (RFP) by submitting a proposal. The successful
proponent is the vendor who is selected from the competitive
process to supply government with the goods or services
required.
Request for Expressions of Interest (RFEI)
Request for Expressions of Interest (RFEI) refers to a process and
document used in government to obtain information on the level
of interest in a planned solicitation opportunity and may be used
to pre-qualify vendors for an opportunity. It is often used when
ministries know that a good or service is available but are not
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sure if the vendor community is interested or available to
compete on the opportunity.
Request for Information (RFI)
Request for Information (RFI) refers to a process and document
used in government to obtain information to be used in
developing a future solicitation opportunity. It is often used to
obtain specific information about a product, service, or process,
as well as the availability and performance of the goods or
services.
Request for Proposals (RFP)
Request for Proposals (RFP) refers to the process and document
used in government to solicit proposals from vendors which will
be evaluated on price as well as other criteria, including vendor
qualifications and the proposed solution.
Request for Qualifications (RFQ)
Request for Qualifications (RFQ) refers to the process used to prequalify suppliers who are interested in a current opportunity or
for pre-qualifying suppliers who are interested in supplying
goods or services in the future on an if, as, and when requested
basis.
Solicitation
The act of obtaining bids, quotes, offers, or proposals.
Supplier
The term supplier is often used interchangeably with the term
vendor. However, in the context of government procurement, a
supplier is a vendor who has been selected through a
procurement process to supply government with goods or
services.
Vendor
In the context of government procurement, any party that is in
the position of being able to sell goods or services to government
(i.e., a potential supplier) is a vendor. Solicitation processes are
designed to solicit bids and proposals from many vendors.
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8 QUICK LINKS
Agreement on Internal Trade (AIT)
http://strategis.ic.gc.ca/epic/internet/inait-aci.nsf/en/Home
BC Bid website
http://www.bcbid.gov.bc.ca/open.dll/welcome
BC Mail Plus website
http://www..gov.bc.ca/bcmp/home.html
BC Stats website
http://www.bcstats.gov.bc.ca/
Workplace Technology Services (WITS) website
https://workplacetechnologyservices.gov.bc.ca/
Core Policy and Procedures Manual
http://www.fin.gov.bc.ca/ocg/fmb/manuals/CPM/06_Procurement.htm
Corporate Information Management Branch website
http://www.cio.gov.bc.ca/services/records/
Corporate Supply Arrangement website
http://.gov.bc.ca/csa/csa.html
Disposal Handbook
http://www..gov.bc.ca/psb/pdfs/disposal_handbook.pdf
Distribution Centre – Victoria (DC-V) Electronic Catalogue
http://.online.gov.bc.ca/DCV/
Direct Access Standing Offer Agreement
http://www..gov.bc.ca/dcv/corporate-supply.html
Distribution Centre – Victoria website
http://.gov.bc.ca/dcv/
Employee Travel website
http://.gov.bc.ca/csa/categories/accommodation/search/
Financial Reporting and Advisory Services, Office of the Comptroller
General
http://www.fin.gov.bc.ca/ocg/fras/fras_contacts.htm
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Freedom of Information and Protection of Privacy Act
http://www.qp.gov.bc.ca/statreg/stat/F/96165_01.htm
General Service Agreement
http://.gov.bc.ca/psb/gsa/gsa_index.html
iProcurement website
http://www.cas.gov.bc.ca/Services/iProcurement/iProcurement.htm
Ministry Fleet Coordinators
http://www..gov.bc.ca/csa/categories/vehicle_service_centre_listings/fleet
_coordinators.html
Ministry Guide to the Request for Proposals Process
http://www.pc.gov.bc.ca/data/docs/ministrguiderfpNov2005.doc
Procurement Governance Office
http://www.fin.gov.bc.ca/ocg/pgo/pgo.htm
Procurement Services Act
http://www.qp.gov.bc.ca/statreg/stat/P/03022_01.htm
Product Distribution Centre (PDC) Electronic Shopping Cart
http://.online.gov.bc.ca/pdc/
Product Distribution Centre (PDC) website
http://.gov.bc.ca/pdc/
Purchase Card Manual
http://www.fin.gov.bc.ca/ocg/fmb/manuals/PurchaseCard/manual/Table_
of_Contents.htm
Purchasing Services Branch (PSB) website
http://www..gov.bc.ca/psb/
Queen’s Printer website
http://.gov.bc.ca/qp/
Request for Proposals Template
http://www..gov.bc.ca/psb/docs/RFP.doc
Risk Management Branch & Government Security Office website
http://www.fin.gov.bc.ca/PT/rmb/contactus.shtml
Strategic Acquisitions and Technology Procurement Branch (SATP)
website
http://www.saip.gov.bc.ca/satp/contacts.htm
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APPENDIX A – CONTRACT AND PROCUREMENT LAW
Contract law is complex. This appendix provides a brief summary of
certain aspects of contract and procurement law.
Five elements must be present for there to be an enforceable contract:
1. There is an OFFER and an ACCEPTANCE;
2. Both parties have the CAPACITY to contract;
3. CONSIDERATION (value) has been agreed upon;
4. There is INTENT by both parties to enter into a legally binding
contract; and
5. The purpose of the contract is LEGAL.
Effective procurement in the public sector is a balance between the
principles of fair, open, and transparent procurement, business
considerations, and the obligations imposed by law. A completed
ministry procurement cycle results in an agreement between
government and a third party for the provision of goods, services, or
construction in exchange for some form of consideration. Common law
with respect to contracts applies to both the final agreement and the
competitive processes that led up to the final agreement. There has
been a long series of legal cases, including Supreme Court of Canada
cases, that have provided guidance on the basic contractual
relationships created between a proponent and the Province. These
relationships have been called the Contract A/Contract B situation.
In the Province of British Columbia, a Tender (generally referred to as
an Invitation to Tender (ITT)), an Invitation to Quote (ITQ), and a
Request for Proposals (RFP) are all types of solicitation documents used
to invite submissions from which a successful bidder, or successful
proponent, is selected. The submission/receipt of a compliant tender,
quote, or proposal creates a binding Contract A between the Province
and every bidder. The only exception is where a bid/proposal is
noncompliant or withdrawn prior to closing.
The compliant bid/proposal submitted is an acceptance to the
purchaser’s offer (solicitation) to enter into a Contract A (the bid
contract) and it is also an offer by the bidder/proponent to enter into
Contract B (which will be the actual performance contract; i.e., a service
contract awarded to the winner).
The existence of a Contract A means that the bidders/proponents have
accepted the terms contained within the solicitation document and the
rules cannot be changed without advising all potential
bidders/proponents. Once the solicitation has closed, nothing can be
added, deleted, or changed by either party (bids and proposals are
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normally irrevocable after closing), except as may occasionally be
provided for in the terms of the solicitation. If a change of any kind
occurs after this time, it could be considered a breach of the Contract A
(for example, a bid or proposal fails to address a particular mandatory
selection criterion and the owner or purchaser disregards that omission
and awards the contract to that bidder). There have been numerous
cases over the years involving breaches of a Contract A by both the
organization issuing the solicitation and the proponent.
This legal process is designed to protect all parties (the purchaser and
the bidders/proponents). Once the purchasing organization issues the
solicitation with their particular rules on how the bidding process will
be managed, they have to abide by these rules, as do the
bidders/proponents. If a rule needs to be changed for some reason, this
can be done prior to the solicitation process closing date with an
amendment being issued to all bidders/proponents.
The Contract B is the actual performance contract. This is the document
that specifies that the contractor will perform the services or provide
the goods; the payment process and amount; other specific schedules,
such as risk management (insurance) and subcontracting; and the
contract terms and conditions.
Law of Competitive Processes
The law of competitive bidding, which is also referred to as the law of
tender, applies to tenders (which result in bids or quotes). It has also
been extended to apply to the RFP process. In Canada, our law of
competitive bidding has arisen from a series of provincial and Supreme
Court of Canada decisions, which have defined the following
principles:

Upon the close of the solicitation, a Contract A generally arises
between the Owner (the purchasing organization) and each of
the bidders submitting a compliant bid or quote.

The terms of a Contract A are to be found in the solicitation
documents, including the instructions, the form (e.g., Tender,
ITT, or RFP), and customs of trade.

If an Owner deviates from the mandatory requirements of the
solicitation documents, then the Owner may be liable in breach
of contract (i.e., breach of Contract A) to the bidders (including
the unsuccessful bidders).

An Owner should accept only compliant bids. A compliant bid
is one that meets the requirements specified in the Tender or
ITQ, or the mandatory requirements in an RFP. If a bid does not
strictly meet a requirement, Legal Services Branch should be
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consulted to determine if it is a requirement that can be met by
substantial compliance.
In a Tender or ITQ, the requirements are clearly defined with price
being the only variable, although work schedule and delivery may also
be considerations. An RFP is used to seek a solution to a problem,
where price will not be the only consideration, and may not be a
consideration at all. An RFP will include both mandatory and desirable
criteria, and each proposal that meets all of the mandatory criteria will
result in the establishment of a Contract A (bid contract).
Regardless of the form of solicitation document, unless the process is
formally and properly amended, government is legally required to
comply with the process, particularly the selection process, as defined
in the solicitation documents. Therefore, government must comply
with the selection criteria, including weightings, which are described in
the solicitation documents.
Requests for Information (RFI) and Requests for Expressions of Interest
(RFEI) are generally not designed to result in the establishment of a
Contract A, as there is usually no intention that these information
gathering processes will lead to the awarding of a Contract B
(performance contract). Requests for Qualifications (RFQ) can be used
either to gather information or to establish a pre-qualified list of
vendors, which may be used to directly award a performance contract.
A Request for Corporate Supply Arrangement is another type of
solicitation. It results in a standing supply arrangement offer provided
by a supplier, which can be accessed by ministries and other public
sector agencies, to acquire specified goods or services directly from a
supplier on an 'as and when' requested basis at a pre-determined price.
When government accesses the standing supply arrangement offer, it
constitutes the contract (i.e., there is no bid contract, only a
performance contract).
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Planning Phase
APPENDIX B – PROCUREMENT PROCESSES AND TOOLS
Program identifies a need for
goods or services to support
program delivery.
Can the goods or services be sourced
through an established Corporate
Supply Arrangement (CSA)?
Yes
Access External CSAs through
iProcurement and Internal CSAs
through appropriate office.
Yes
Issue a Request for Information (RFI)
or a Request for Expressions of
Interest (RFEI).
Yes
Issue a Request for Qualifications
(RFQ).
No
Undertake a solicitation process that
ensures fair and open competition, is
appropriate to the results desired, and
reflects the risks/complexity of the
procurement transaction.
No
Select the supplier best meeting the
criteria defined in the solicitation
documents.
Pre-Award Phase
No
Is more information required on the
types and availability of required goods
or services?
No
Will it be efficient to pre-qualify
suppliers before competing the
opportunity?
No
Can the contract be directly awarded?
(e.g., under policy thresholds for
competitive process, emergency situation,
sole supplier).
Yes
Is a Notice of Intent (NOI) Required?
Yes
Yes
Does the Notice of Intent result in a
challenge?
No
Award the contract.
Award Phase
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