Letter of Interest (LOI)

A Letter of Interest (LOI) is a preliminary notice a Canadian public buyer publishes before a procurement to announce the intended requirement and invite supplier feedback. In federal practice it is posted as a tender notice on CanadaBuys with standard language: the LOI "constitutes a preliminary phase to an intended procurement process," suppliers are invited to help refine the requirements, and "suppliers are not required to submit a response to this request for information (RFI) in order to participate in any later phases of the procurement process."

What the standard LOI language actually says

Federal LOIs issued through CanadaBuys repeat a consistent set of protections, in the buyer's own words: "This is not a bid solicitation. This LOI will not result in the awarding of any contract, nor will it result in the creation of any source list. Therefore, should a supplier not respond to this LOI, it will not preclude that supplier from participating in any future procurement(s)." Buyers also reserve the right to "cancel or modify any of the preliminary requirements" — the later procurement "will not necessarily follow this LOI."

What buyers use LOIs for

Three recurring uses appear in real federal notices. PSPC has issued LOIs as "a first step to inform all interested parties" of planned National Master Supply Arrangements, previewing engagement activities such as an RFI on industry capacity, an industry day, and one-on-ones with suppliers. Elections Canada used an LOI to launch a broader supplier engagement program — submission forms, supplier engagement days, RFI opportunities, and pilots — before any solicitation. Transport Canada issued an LOI for medical physician consultation services that laid out a timeline from LOI through RFP issue to contract award, stating plainly that the LOI "is neither a call for tender nor a Request for Proposal (RFP)" and that "no agreement or contract will be entered into based on this LOI."

How an LOI fits the pre-solicitation toolkit

An LOI overlaps with the other market-sounding instruments: an RFI asks structured questions, an expression of interest sounds out who could deliver, and an ACAN signals an intended sole-source award so other suppliers can challenge it. The LOI is the earlier, looser cousin — its stated purpose is to make the market aware of anticipated areas of interest and to collect input that shapes the requirement before tender documents are written. Under CFTA Article 506 a covered procurement still needs a formal tender notice; an LOI is not that notice, which is exactly why its boilerplate promises nothing.

Common questions

Can I win a contract from an LOI?

No. The federal boilerplate is explicit that an LOI "will not result in the awarding of any contract" and is "not to be considered in any way as a commitment by Canada" to issue a subsequent solicitation. Treat it as influence, not revenue.

Is responding to an LOI worth the effort?

Usually, yes — cheaply. Responding puts your input into the requirement while it is still being shaped, and because a non-response "will not preclude" you later, the only real cost is a few pages of feedback. Skipping it risks a solicitation written around someone else's comments.

Does an LOI create a source list or shortlist?

No — the standard language states the LOI "will not result in the creation of any source list," and PSPC's notices add that the LOI "is not a pre-selection process" with "no short listing of firms." If a buyer ever shortlists from market engagement, that is a design choice they must disclose, not something an LOI does by default.

Related definitions

Expression of interest · Request for information (RFI) · ACAN · Notice of intended procurement