HOMEIn the NewsArticles & ColumnsSummit Connects LinksCalendar of Events
Procurement TipsTool KitSubscribe to SummitAdvertise in SummitSearch

.

Tool Kit


Glossary of Procurement Terminology

Looking for a term 
we haven't defined?

Unless otherwise specified,
these terms are defined according to 
their common usage within the 
public procurement world in Canada.

see note

- A - B - C - D - E - F - G - H - I - J - K - L - M - N - O - P - Q - R - S - T - U - V - W - X - Y - Z -

.
- A -

ABC - Aboriginal Business Canada, a division of Industry Canada.

ACAN - acronym for Advanced Contract Award Notice, which is a notice of intent to solicit a bid and negotiate with a single firm. Other suppliers are not invited to bid on these opportunities but can forward letters of intent indicating their interest before the closing date. Notice of bidding requests will then be solicited from letters of interest that have been received.

Access to Information Office - a facility within governments for information regarding contract awards.

Access to Information Program (ATIP) - is mandated by the Access to Information Act and the Privacy Act, and gives any person in Canada the right to access information held in government records, subject to certain exceptions and limitations.

ACOL - Atlantic Canada On-Line is a public-private partnership between the Newfoundland, Nova Scotia, New Brunswick and Prince Edward Island governments and Unisys Canada Inc. It can be found at http://www.acol.ca

ADM - Assistant Deputy Minister

Administration and Control of Contracts and Regional Data (ACCORD) - a computer-assisted system, used by PWGSC, to register construction and maintenance service contractors.

Advanced Contract Award Notice (ACAN) - a notice of intent to solicit a bid and negotiate with a single firm. Other suppliers are not invited to bid on these opportunities but can forward letters of intent indicating their interest before the closing date. Notice of bidding requests will then be solicited from letters of interest that have been received.

AG - Auditor General

Agent - persons who act on behalf of another person (the principal) by their authority, express or implied, in dealings with third parties.

Agreement Type - refers to the agreement under which the opportunity is governed, such as the Agreement on Internal Trade (AIT), North American Free Trade Agreement (NAFTA), the World Trade Organization's Agreement on Government Procurement (WTO-AGP) or the General Agreement on Tariffs and Trade (GATT).

Agreement on Internal Trade (AIT) - signed by the federal and provincial governments, text of the agreement is at http://strategis.ic.gc.ca/epic/internet/inait-aci.nsf/en/h_il00034e.html.

AIT - Agreement on Internal Trade, signed by the federal and provincial governments. Text is at http://strategis.ic.gc.ca/epic/internet/inait-aci.nsf/en/h_il00034e.html.

Alternative Service Delivery (ASD) - also known as Alternate Service Delivery or Alternative Forms of Delivery, looks at new ways of delivering some of its services, frequently by contracting to suppliers for services that were previously provided in-house.

Alternative Forms of Delivery - also known as Alternative Service Delivery (ASD), looks at new ways of delivering some of its services, frequently by contracting to suppliers for services that were previously provided in-house.

Approved Source List - a list of suppliers that can supply specific goods and services and are approved on the basis of the suitability of their facilities and capabilities.

ASD - Alternative Service Delivery or Alternate Service Delivery, also known as Alternative Forms of Delivery, looks at new ways of delivering some of its services, frequently by contracting to suppliers for services that were previously provided in-house.

Assignment of a Contract - the transfer by the contractor of responsibility for performance of all or part of the contract from the contractor to a third party.

ATIP - the Access to Information Program is mandated by the Access to Information Act and the Privacy Act, and gives any person in Canada the right to access information held in government records, subject to certain exceptions and limitations.

Atlantic Canada On-Line (ACOL) - a public-private partnership between the Newfoundland, Nova Scotia, New Brunswick and Prince Edward Island governments and Unisys Canada Inc. It can be found at http://www.acol.ca.

Auditor General of Canada (AG) - audits government operations and provides the information that helps Parliament to hold the government to account for its stewardship of public funds. More information can be found at http://www.oag-bvg.gc.ca.

Award - the notification to a bidder or tenderer of acceptance of a bid or tender which brings a contract into existence.

- B -

BDP - Benefits Driven Procurement is an approach to procurement that stresses a focus on results and on the benefits that government and suppliers gain from the procurement. The supplier is asked to deliver certain agreed-upon results rather than follow a blueprint.

Benefits Driven Procurement (BDP) - is an approach to procurement that stresses a focus on results and on the benefits that government and suppliers gain from the procurement. The supplier is asked to deliver certain agreed-upon results rather than follow a blueprint.

Bid - a tender, proposal or quotation submitted in response to a solicitation from a contracting authority.

Bid Protest - a complaint that is made against the methods employed or decisions made by a contracting authority in the administration of a process leading to the award of a contract.

Bid-rigging - illegal collusion by tendering suppliers, where one or more bidders agree not to submit a bid, or two or more bidders agree to submit prearranged bids, to avoid competition in prices. Also referred to as Price Fixing.

Bid Set - a package of data which identifies the article to be purchased, the quantity and delivery, and which includes designs, specifications, quality requirements and general conditions which will govern the contract resulting from acceptance of a bid.

Bidders' Conference - a meeting to discuss with potential bidders, technical, operational and performance specifications, and/or the full extent of financial, security and other contractual obligations related to a bid solicitation.

Buyer Qualification Required - allows buyers to confirm the accuracy of the document they have received.

- C -

Call-up - a requisition or a request for delivery which is forwarded directly to a supplier to obtain delivery of materiel from a previously negotiated contract, or a standing offer, in accordance with their terms.

Canadian Council for Public-Private Partnerships (CCPPP) - is an organization promoting the benefits of joint ventures between government and business. The CCPPP can be found at http://home.inforamp.net/~partners/.

Canadian International Trade Tribunal (CITT) - deals with, among other issues, bid challenges on Canadian government contracts, arising under an international agreement. The CITT can be found at http://www.citt.gc.ca.

Canadian Public Procurement Council (CPPC) - an organization that represents public sector procurement professionals across Canada. Its members are the institutions that employ the procurement professionals. The CPPC can be found at http://www.ccmp-cppc.qc.ca.

CCPPP - the Canadian Council for Public-Private Partnerships is an organization promoting the benefits of joint ventures between government and business. The CCPPP can be found at http://home.inforamp.net/~partners/.

Certified Professional Purchaser (CPP) - a designation offered by the Purchasing Management Association of Canada to those who have achieved specified professional qualifications.

CI - competitive intelligence involves gathering and analyzing information about customers, competitors and the marketplace to support successful business decisions.

Client Agency - identifies the name and address of the organization on whose behalf the bid request has been submitted.

Closing Date - the deadline for all bid submissions.

Closing Time and Zone - indicates the exact time and time zone at which the bid submissions must be received.

Competitive Bidding - offers submitted by individuals or firms competing for a contract, privilege or right to supply specified services or merchandise.

Competitive Bid Solicitation - where two or more qualified sources are solicited.

Competitive Intelligence (CI) - involves gathering and analyzing information about customers, competitors and the marketplace to support successful business decisions.

Contract - a contract is an obligation, such as an accepted offer, between competent parties upon a legal consideration, to do or abstain from doing some act. The essential elements of a contract are: an offer and an acceptance of that offer; the capacity of the parties to contract; consideration to support the contract; a mutual identity of consent; legality of purpose; and sufficient certainty of terms. Under the Government Contracts Regulations, a contract means a construction contract, a goods contract, a service contract or a lease entered into by or on behalf of Her Majesty by a contracting authority.

Contract Amendment - an agreed addition to, deletion from, correction or modification of a contract.

Contracts Canada - an inter-departmental initiative to improve supplier and buyer awareness and simplify access to federal government purchasing information. Contracts Canada can be accessed at http://contractscanada.gc.ca.

Contract Claims Resolution Board (CCRB) - a part of PWGSC that resolves claims resulting from both contract terminations and disputes. Can be found at http://www.pwgsc.gc.ca/ccrb/index.html.

Contract Dispute - a matter of dispute in respect of a contract that cannot be resolved between the contractor or its authorized representative and the contracting officer designated in the said contract.

Contract Signing Authority - the authority delegated by the Minister to the person designated to occupy a position, that is, the incumbent of a position, to sign on his/her behalf contract, contract amendment or Standing Offer documents after ascertaining that the approval authority has been duly granted and ensuring that the terms and conditions written in the documents reflect those approved by the contract approval authority.

Contractor - one who contracts to perform work or furnish materiels in accordance with a contract.

Co-operative Supply - federal, provincial or local governments may, where it is advantageous for them to do so, provide goods and services to each other.

Copyright - an exclusive statutory right of those such as authors, publishers, composers, etc. to control the publication/ dispositions of their works of art, literature, music, films, pictures, etc., which is protected by the Copyright Act of Canada. Under the Geneva Convention of 1952 to which Canada became a party in 1962, international copyright is obtained without any formalities by placing on the work the symbol , identifying the name of the copyright holder in the year of the first publication.

Cost Plus Fixed Fee - a basis of price in which the contractor is paid costs reasonably and properly incurred as determined by audit together with an agreed upon fixed fee (or a percentage of cost) by way of profit.

CPP - Certified Public Purchaser designation, offered by the Purchasing Management Association of Canada to those who have achieved specified professional qualifications.

CPPC - the Canadian Public Procurement Council is an organization that represents public sector procurement professionals across Canada. Its members are the institutions that employ the procurement professionals. The CPPC can be found at http://www.ccmp-cppc.qc.ca 

Crown Property - property to which title is vested in the Crown. This includes Crown-owned property usually in the care, custody and/or control of contractors. Examples of Crown property usually in the custody of contractors are: capital assistance assets, special production tooling, special test equipment, equipment undergoing repair and overhaul, contract issue materiels and equipment, work-in-process and finished work to which title is vested in the Crown as a result of progress payments, accountable advances or by any other means.

Cure period - When a contractee is in default of the deliveries in a contract, the cure period is the period of time that the contractor can give to the contractee to make good on the services required to be delivered, or additional time for the product contracted for to be delivered. The period of time is ultimately up to the contractor. The cure period would come before the contractor deems the contract to be terminated for reasons of default.

- D -

DFAIT - Department of Foreign Affairs and International Trade, conducts all consular and diplomatic relations on behalf of Canada, works to foster economic relations and international trade and manages international negotiations.

DG - Director General

DISO - Departmental Individual Standing Offer

Disposal - the removal of materiel from a supply system by sale, trade-in or destruction. Within the federal government, disposal is normally arranged through the PWGSC Crown Assets Distribution Directorate/Centre.

DM - Deputy Minister

- E -

ECP - the Environmental Choice Program is an ecolabelling program of Environment Canada that promotes the use of environmentally responsible goods and services, encouraging consumers, organizations and government to buy "green." More information is available at http://www.environmentalchoice.com.

EDI - Electronic Data Interchange

EDP - Electronic Data Processing

Electronic Service Delivery (ESD) - is the provision of services and the ability to access and exchange information electronically.

Environmental Choice Program (ECP) - is an ecolabelling program of Environment Canada that promotes the use of environmentally responsible goods and services, encouraging consumers, organizations and government to buy "green." More information is available at http://www.environmentalchoice.com.

ESD - Electronic Service Delivery is the provision of services and the ability to access and exchange information electronically.

Estimated Cost - the estimated cost to be used as the basis for the sourcing decision is that cost determined as being representative of all known work and expected unscheduled work arising out of the requirement, i.e. the total estimated contract value.

Estimated Value - indicates the approximate value of the contract.

- F -

Facility - a physical plant or installation, e.g. base, arsenal or building, used to make easier the performance of a function; or the materiel resources needed to facilitate any action or operation.

FCM - the Federation of Canadian Municipalities promotes strong, effective and accountable municipal governments. They can be found online at http://www.fcm.ca.

Federation of Canadian Municipalities (FCM) - promotes strong, effective and accountable municipal governments. They can be found online at http://www.fcm.ca.

- G -

GAAP - Generally Accepted Accounting Principles are those accounting principles which have been given formal recognition or authoritative support in any particular jurisdiction.

GATT - General Agreement on Tariffs and Trade

Generally Accepted Accounting Principles (GAAP) - those accounting principles which have been given formal recognition or authoritative support in any particular jurisdiction.

GMEF - the Green Municipal Enabling Fund provides grants to Canadian municipal governments to fund up to 50 percent of costs of feasibility studies into technological innovations that protect the climate and improve air, water and soil quality.

GMIF - the Green Municipal Investment Fund is a revolving fund providing financial services (including loan guarantees and interest-bearing loans) that allow Canadian municipalities to fund projects that protect the climate and improve air, water and soil quality.

GOL - Government On-Line is a federal government project aimed at building electronic services around its customers, or citizens.

Goods and Services Identification Number (GSIN) - a system of materiel and services categorization used within PWGSC. The system is used in conjunction with the Federal Supply Classification (FSC) code.

Government Business Opportunities (GBO) - a publication, available by subscription, that provides the details of procurement opportunities that are subject to any of the international trade agreements. The bid documents for each opportunity are available through MERX.

Government On-Line (GOL) - a federal government project aimed at building electronic services around its customers, or citizens.

Green Municipal Enabling Fund (GMEF) - the fund provides grants to Canadian municipal governments to fund up to 50 percent of costs of feasibility studies into technological innovations that protect the climate and improve air, water and soil quality.

Green Municipal Investment Fund (GMIF) - a revolving fund providing financial services (including loan guarantees and interest-bearing loans) that allow Canadian municipalities to fund projects that protect the climate and improve air, water and soil quality.

GTEC - Government Technology Exhibition run in conjunction with Technology in Government Week, generally held each fall in Ottawa. More info at http://www.techgov.com.

- I -

Independent Contractor - the test which distinguishes an independent contractor from an agent is the degree of control which the contractor is entitled to exercise, i.e. existence of the right of control over the agent in respect of the manner in which the work is done. An independent contractor is one who exercises discretion as to the mode and time of doing the work. The contractor is bound by its contract, not by the orders of the party for whom the contract is being performed.

Intellectual Property - includes inventions, patents, copyrights, trade secrets, trademarks, technical data, know-how (e. g., engineering, Technical Documentation, Technical Information and technical assistance and services) and industrial designs.

Invitation to Tender (ITT) - an ITT is sent out to bidders when the opportunity is worth $25,000 or more and has fairly straightforward requirements, such as a request for off-the-shelf goods. The lowest-priced responsive bid (the lowest bid that complies with all the mandatory requirements specified in the ITT document) will be awarded the contract.

ISO - the International Organization for Standardization is a worldwide federation of national standards groups that jointly establish process-based standards that companies and organizations can adhere to in order to become ISO-certified. ISO 9000 certifies quality management systems within any organization. ISO 14000 standards certify an organization's environmental performance. More information is available at http://www.iso.ch.

- J -

Joint Venture - an association of two or more parties who combine their money, property, knowledge, skills, experience, time or other resources in a joint business enterprise, agreeing to share the profits and the losses and each having some degree of control over the enterprise.

- L -

Letter of Interest (LOI) - an LOI or Request for Information (RFI) is not open for bidding. The buyer is interested in receiving feedback from suppliers and may re-open or re-issue an opportunity as an open tender at a later day. LOIs may include attached documents.

Liability - a broad legal term. In general, a debt owed. The condition of being actually or potentially subject to an obligation; a condition of being responsible for a possible or actual loss, penalty, evil, expense or burden; a condition which creates a duty to perform an act immediately or in the future.

Life cycle - a "crade to grave"approach to asset management that looks at products and services from initial concept through procurement, to disposal once the item is no longer usable or required.

- M -

Maintenance - the cost of keeping a property in efficient working condition; or all action to retain materiel in a serviceable condition or to restore it to serviceable condition or to restore it to serviceability. It includes inspection, testing, servicing, classification as to serviceability, repairs, rebuilding and reclamation.

MASH - the segment of the public sector that includes Municipalities, Academic Institutions, Schools and Hospitals, also referred to as MUSH.

Materiel and Supply Management Steering Committee (MSMSC) - a federal government interdepartmental body aiming to enhance the skills, professionalism and value-added contribution of procurement, materiel and supply managers in delivering programs and services.

Materiel Management Institute - the Materiel Management Institute (MMI) is a Canadian non-profit organization offering professional development in the field of public sector materiel and supply management. The MMI can be found at http://www.thewillowgroup.com/mmi.

MCP - Major Crown Project

MERX - a Canadian online service that advertises government contracting opportunities to potential bidders. MERX can be accessed at http://www.merx.com.

MMI - the Materiel Management Institute is a Canadian non-profit organization offering professional development in the field of public sector materiel and supply management. The MMI can be found at http://www.mmi-igm.ca.

MSMSC -the Materiel and Supply Management Steering Committee is a federal government interdepartmental body aiming to enhance the skills, professionalism and value-added contribution of procurement, materiel and supply managers in delivering programs and services.

MUSH - the segment of the public sector that includes Municipalities, Universities, Schools and Hospitals, also referred to as MASH.

NEXT PAGE N - Z


Additional sources of information:

PWGSC Glossary www.pwgsc.gc.ca/sos/text/sm/en/text/ch12a-01.html 


NOTE

This glossary is provided as a source of general information about terms commonly heard or found in procurement-related documents and is published on this website in good faith. We would caution, though, against making business decisions based exclusively on these definitions. 

Your interests are best served by also referring to other resources, including dictionaries, government websites and contractual documents, and by discussing the terms with the other parties involved in the business venture and with your lawyer.

 


  About Summit MagazinePrivacy PolicyContact UsThe Summit Group

HOME - SITE MAP - ARTICLES & COLUMNS - SUMMIT CONNECTS LINKS - CALENDAR