Navigating the world of government procurement can be complex, especially when you're faced with unfamiliar acronyms and varying processes. If you're bidding on federal opportunities, it’s critical to understand the procurement methods the Government of Canada uses. Each method has specific requirements, timelines, and levels of competition.
In this guide, we’ll break down the most common procurement methods you’ll encounter and what each means for you as a supplier.
1. Request for Proposal (RFP)
An RFP is used when the government needs a solution to a problem or a complex good or service. It often involves multiple evaluation criteria, including price, experience, methodology, and innovation.
Key Features:
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Competitive process
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Weighted evaluation criteria
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May involve interviews or presentations
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Usually includes a Statement of Work (SOW)
When to Bid:
RFPs are best for suppliers who can differentiate themselves based on expertise, approach, and value—not just low price.
2. Request for Quotation (RFQ)
An RFQ is typically used when the government needs to buy well-defined products or services, and price is the main deciding factor.
Key Features:
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Low complexity
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Focus on price and compliance
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Shorter timelines
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Often under a certain dollar threshold
When to Bid:
Submit quotes if your offering clearly meets the specs and you can be cost-competitive.
3. Request for Standing Offer (RFSO)
An RFSO establishes a pre-qualified list of suppliers who can provide goods/services as needed. It’s not a contract, but it gives you a pathway to future contracts without re-bidding.
Key Features:
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No guaranteed work
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Valid for a set term (e.g., 2 years + extensions)
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Departments “call up” suppliers as needed
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Often used for recurring or regional needs
When to Bid:
If you offer ongoing services or commodities (e.g., translation, temporary staffing, IT services), RFSOs are a strategic way to build long-term work.
4. Request for Supply Arrangement (RFSA)
Like an RFSO, a Supply Arrangement (SA) is used to pre-qualify suppliers. The key difference is that SAs allow for further competitive processes among the qualified group.
Key Features:
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Non-binding arrangement
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Subsequent solicitations happen within the SA pool
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Often used for professional services and complex needs
When to Bid:
Getting into an SA is a must if you want to compete in restricted solicitations in sectors like IT consulting, engineering, and management services.
5. Advance Contract Award Notice (ACAN)
An ACAN is a public notice that the government intends to award a contract to a specific supplier, but it’s offering others a chance to prove they can do the job too.
Key Features:
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Posted for transparency
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Other suppliers can challenge within a set period (usually 15 days)
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Rarely leads to actual competition, but not impossible
When to Respond:
If you legitimately can meet all requirements, submitting a response may force a competitive process.
6. Sole Source / Non-Competitive Contracts
Used only under strict conditions defined in trade agreements (e.g., urgency, only one supplier, or interoperability), these contracts do not involve competition.
Key Features:
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Must be justified in writing
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Often audited
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Still visible in contract award reports
Tip:
While rare, networking and unique capabilities can put you in a position to receive sole-source consideration.
Final Thoughts: Why It Matters
Understanding procurement methods helps you:
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Focus on the right opportunities
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Prepare compliant and competitive bids
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Improve your success rate over time
At BidWatch, we help suppliers decode procurement processes and respond effectively. Knowing how the government buys—and why—can be the difference between winning and wasting time.
✅ Need Help?
Our team at BidWatch can support your success with:
Supplier registration
Compliance with procurement rules
Proposal writing and bid strategy
👉 Contact us today if you want one-on-one guidance or to explore our bidding support packages.
- BidWatch Canada Team