Limited tendering (CFTA Art. 513)

Limited tendering is a procurement method defined in Canada’s trade agreements — CFTA Article 513, CETA Article 19.12 — whereby the procuring entity contacts a supplier or suppliers of its choice instead of running an open or selective process, and may drop specified procedural obligations. It is an exception with its own list of permitted circumstances, not a general fast lane.

What it is

The CFTA defines limited tendering as a procurement method whereby the procuring entity contacts a supplier or suppliers of its choice. Article 513 permits it only where the entity is not using it to avoid competition or to discriminate between suppliers. Circumstances include: after a prior call, no tenders or no conforming tenders were received, no suppliers met the conditions for participation, or the tenders received were collusive (provided the requirements are not substantially modified); goods or services only a particular supplier can provide — works of art, protection of patents and copyrights, absence of competition for technical reasons, statutory monopoly, compatibility with existing goods or specialized maintenance, warranty work, work on leased property that only the lessor can perform, or periodical subscriptions; and additional deliveries from the original supplier where switching would cause interchangeability problems or substantial duplication of cost. The CFTA alone adds consulting services on confidential or privileged matters.

What it lets the buyer skip — and what it does not

Where a valid exception exists, the entity may choose not to apply enumerated obligations: notices, conditions for participation, qualification procedures, tender documentation and time periods, treatment of tenders, and award rules. Technical-specification rules always continue to apply, and contract award notices must include information relating to the justification for using limited tendering. Federal buyers must also anchor the decision in the Government Contracts Regulations under the Financial Administration Act: section 6 sets out when contracts may be formed without soliciting offers, including pressing emergency, the low-value thresholds, and when only one entity is capable of performing the work. CanadaBuys notes limited tendering is typically still competitive and must never be used to avoid competition, discriminate, or protect domestic suppliers.

What it means for vendors

Award notices citing limited tendering tell you which exception the buyer relied on — worth reading before the window to challenge closes, because a weak justification is a standard ground for a complaint to the Canadian International Trade Tribunal. If you are the incumbent benefiting from an additional-deliveries exception, expect the buyer to test whether a change of supplier really is technically or economically impracticable.

Common questions

Is limited tendering the same as sole sourcing?

Sole sourcing is the common name for a non-competitive award; limited tendering is the trade-agreement mechanism that legalizes it above thresholds. A limited-tendering award can still involve several invited suppliers — the defining feature is that the buyer chooses who is contacted.

What happens if two trade agreements apply?

Both must be respected at once: only exceptions common to both are available, and where an exception exists in both, the one with the more rigorous requirements applies.

Related definitions

Sole-source procurement · Sole-source justification · CITT bid challenge · Open tendering · CFTA thresholds