Public Procurement Explained: Key Steps and Legal Requirements

Public procurement is more than buying goods and services — it’s a regulated process designed to deliver value while protecting fairness, transparency and accountability. For public organizations, following the right steps and legal rules reduces risk, speeds delivery and protects the public interest. Below is a concise, practical walkthrough of the typical procurement lifecycle and the key Canadian legal requirements you should keep in mind.

1. Plan and define need

Start with a clear business case: what problem are you solving, total budget, timeline and measurable outcomes. Early planning identifies whether procurement is necessary, whether existing contracts or cooperative purchasing frameworks can be used, and which procurement method is appropriate. Strong planning documentation also supports transparency and auditability later.

2. Select the procurement approach

Choose a procurement method that fits the value, complexity and market conditions—examples include invitational competition, open tender, request for proposals (RFP), sole source or pre-qualified lists. Your choice must comply with applicable policies, internal delegation limits, and (where relevant) trade agreements and thresholds. At the federal level, the Government of Canada provides an overview of required policies, directives and trade obligations that shape method selection. (canadabuys.canada.ca)

3. Comply with trade agreements and intergovernmental rules

Federal, provincial and territorial public buyers operate within trade agreements such as the Canadian Free Trade Agreement (CFTA) and other international commitments. These agreements affect thresholds, timelines, and non-discrimination rules — important when determining whether a procurement must be posted nationally/internally and how evaluation criteria can be structured. Make sure your procurement team checks applicable scopes and exemptions early. (cfta-alec.ca)

4. Draft clear solicitation documents

Solicitations must be complete, unambiguous and fair. Include scope of work, evaluation criteria, mandatory requirements, submission instructions, and contract terms (including intellectual property, security and payment). Clear documents reduce challenges from bidders and support defensible evaluation decisions.

5. Evaluate transparently and award

Use pre-published evaluation criteria and scoring matrices. Keep written records of scoring, clarifications and communications with bidders. Award decisions should balance legal defensibility and value-for-money outcomes. At the federal level, Public Services and Procurement Canada (PSPC) provides guidance and acts as the central purchasing authority for many federal procurements — consult PSPC rules when relevant. (Gouvernement du Canada)

6. Contract management and performance

Procurement doesn’t end at award. Active contract management (onboarding, performance monitoring, change control, invoices, dispute resolution) preserves value and mitigates risk. Ensure designated contract officers and officers responsible for enforcement are named, especially where local legislation requires it.

7. Follow provincial/territorial statutes and directives

Provinces and territories have their own procurement laws and directives that public bodies must follow. For example, Quebec’s Act respecting contracting by public bodies sets specific obligations for public tenders and contract conditions; Ontario’s Broader Public Sector Procurement Directive and recent Procurement Restriction Policy impose rules and buyer responsibilities for BPS organizations. Confirm and document which provincial rules apply to your entity and each procurement. (Légis Québec)

8. Integrity, transparency and record-keeping

Maintain complete records (needs analysis, approvals, solicitations, evaluations, contracts, amendments). Transparency protects your organization from bid challenges and supports public confidence. Many jurisdictions also require specific integrity measures (conflict-of-interest declarations, vendor debarment checks, and audit trails).

Practical tips for public organizations

• Build standard templates (RFPs, scoring matrices, contract clauses) and a central repository for past procurements.
  
• Train evaluation teams on unconscious bias, conflicts of interest and documentation expectations.
  
• Monitor changes in procurement law and trade agreements — rules and thresholds change and can affect tendering obligations.
  
• Consider software tools to automate workflows, secure documentation and reduce administrative risk.
  

Sources

• Government of Canada — Chapter 1: Public procurement (how procurement works). (canadabuys.canada.ca)
  
• Canadian Free Trade Agreement (CFTA) — overview and obligations. (cfta-alec.ca)
  
• Public Services and Procurement Canada (PSPC) — procurement guidance and central purchasing role. (Gouvernement du Canada)
  
• Quebec — Act respecting contracting by public bodies (C-65.1). (Légis Québec)
  
• Ontario — Broader Public Sector Procurement Directive and recent Procurement Restriction Policy. (Gouvernement de l’Ontario)