Selling Goods and Services to Government in PEI
Each year, the Government of PEI purchases over $100 million of goods and services from the private sector in accordance with the Public Purchasing Act and Regulations and Interprovincial trade agreements. The Province operates on the premise that open competition will establish a fair market price and, whenever possible, seeks maximum competition through the tendering process.
A provincial tender may include PEI municipalities, academic institutions, school boards, and health regions.
What sort of goods does the government purchase?
The Province purchases everything from laundry soap to lab supplies. Purchases may include office equipment or supplies, vehicles or heavy equipment, construction materials or maintenance supplies, cleaning supplies, or food.
All the goods and services a provincial government department or agency needs are purchased through Procurement Services according to the following principles:
- Local and regional suppliers have equal access to opportunities.
- Fair and open competition among suppliers is maintained.
- Supplies are obtained at the best quality, service and price possible.
*Government departments and agencies directly administer their acquisition of most services and contracts for construction projects. In addition, there is a separate purchasing system for procurements for each health facility in the province.
Who can supply goods and services to the provincial government?
Any individual, company or organization with the ability to supply the required goods or services has the opportunity to compete for government business through the public tendering process.
What is my responsibility as a supplier to Government?
A supplier is obligated to meet the specifications of the tender or purchase agreement and comply with the terms and conditions for quality, pricing and delivery described below.
- Purchase Order: All goods acquired by the Province require a Purchase Order generated from a requisition originating in a government department or agency. Suppliers are discouraged from delivering items prior to receiving an Official Purchase Order or Purchase Order number.
In order to control the purchase of tendered items from a Standing Offer, numerous Purchase Orders may be issued for each requirement. Standing Offer contracts are generally at set pricing arrangements for specific periods of time.
In certain emergency or urgent situations, a Purchase Order may be assigned by telephone or facsimile which will be followed by the official Purchase Order stating "Confirmation Only". A Purchase Order should not be changed without prior approval from Procurement Services.
Departments and agencies throughout government are issued government purchase cards (p-cards) for low-dollar-value purchases.
- Quality of Goods Supplied: Unless otherwise specified, all goods must be supplied new and all electrical equipment must be C.S.A. approved. Goods must be supplied as ordered and in accordance with the terms and specifications shown on or accompanying a Purchase Order.
A tender request may identify a brand name, make and model to describe the character, quality or dimensions of a required item or component. This is not intended to be restrictive unless otherwise specified as “no substitute”.
When replying with a substitution for supplies other than those specified, the alternative must be clearly indicated and must be of equal or better quality than that originally tendered. Suppliers must be prepared to provide samples, data and literature to verify that items to be supplied are equal to items specified.
- Delivery and Receipt of Goods: In general, the invitation to tender will specify the date goods are required. The supplier must indicate the number of days after receipt of a Purchase Order that the goods will be delivered. All tenders are to be F.O.B. destination, freight prepaid, unless specified otherwise. Shipping charges, if any, must be shown on the tender form. Goods are to be shipped by the most economical means available to meet the specified delivery date, unless otherwise instructed.
It is your responsibility as a supplier to be familiar with local delivery situations and conditions.
Goods should be inspected upon delivery. The end-user is responsible to ensure that the right product was delivered to the right location at the right time.
- Standing-Offer Tender: In general, a tender requires the supply and delivery of specific goods to a specific location at a certain time; however tenders may be called for contracts or standing offers. Standing-offer tenders are issued for items to be purchased over a specified period of time on an "as-and-when-required" basis and could require delivery to various locations.
Standing-offer agreements enable departments to order supplies at pre-arranged prices and delivery conditions. Standing-offer tender invitations indicate the conditions of purchase, specifications, delivery schedules, closing dates, contact persons and all other necessary information.
- Tender Pricing: Tenders must quote net unit prices. Do not show HST. Extra charges must be itemized. All tenders must be extended and totalled. Discounts, if any, must be clearly defined. Do not quote on a lump-sum basis unless specifically requested. Cash discounts without limitations must be indicated and are considered when prices are compared.
There is no provision in the PEI Public Purchasing Act and Regulations for a price increase subsequent to a tender closing or a contract award. Therefore, tenders with firm prices may be preferred over those with condition and escalation prices.
- Price Change: Suppliers must submit written request with full details for any price change to awarded tenders. Procurement Services will determine if the solicitation is valid.
Any tender must clearly indicate the number of days that tender is effective, if accepted. "Prices firm for 30 days" means a Purchase Order issued within 30 days of the tender closing date will be for the tendered price.
Tender Cost Disclaimer: Tendering can be a highly competitive process and vendors should acquaint themselves with all aspects of the tender requirements. Once a tender is received and accepted, it is assumed that all costs are included and the supplier is expected to perform as indicated on the tender. Government is not responsible for omissions of compliance requirements or special conditions which could affect the price tendered. You are advised to check for accuracy and completeness and, if necessary, to contact Procurement Services for clarification before submitting a tender.
Does every purchase go through the tender process?
Provincial government departments are asked to follow a standard method for procurement with dollar limitations as follows:
- Less than $500: One written or phone quotation is required. Departments are issued a government purchasing card (P-card) for low-dollar purchases. An authorized department signing officer must approve each purchase requisition.
- $500 -$1,500: One –three written or telephone quotations must be provided with department purchase requisition.
- $1,500 - $5,000: Three written quotations must be provided with the requisition. At least two vendors are invited to submit written competitive bids (quotations).
- $5,000 and greater: Public tenders are posted to the provincial tenders site.
- $10,000: Atlantic Procurement Agreement (APA) applies.
- $25,000: Agreement on Internal Trade (AIT) applies.
- Less than $10,000: Three written or telephone quotations recommended; department issues contract.
- Over $10,000: Request for Proposal (RFP) recommended; department issues contract.
- Over $50,000: Atlantic Procurement Agreement (APA) and Agreement on Internal Trade (AIT) apply. Formal RFP publicly advertised; department issues contact.
- Over $100,000: Formal RFP publicly advertised to comply with Atlantic Procurement Agreement and Agreement on Internal Trade. Treasury Board approval is required.
- Over $100,000: Formal RFP publicly advertised to comply with Atlantic Procurement Agreement and Agreement on Internal Trade.
In certain situations, i.e. emergency or urgent requirements, tenders may be called by telephone or facsimile. These tenders must adhere to normal terms and conditions of formal tenders and require written confirmation from suppliers contacted.
In instances where only one acceptable tender is received, or when there is only one known source of supply, the price of goods to be purchased may be established by negotiation or by tendering to a "Single Source".
Public tenders are issued in accordance with the Atlantic Procurement Trade Agreement (APA) and the Canada Free Trade Agreement (CFTA). From time to time, the Province participates in joint tenders with other Atlantic Provinces. For more information, go to Trade Agreements on Procurement.
How do I find out what the PEI Government needs?
The Province advertises and distributes tenders for goods and services online. You can view and download tender information at View PEI Tenders and Procurement.
For tenders and procurement less than $5,000, contact Procurement Services for more information.
How do I get paid for the goods I provide to government?
You must be a registered government vendor to invoice and receive payment from the Government of PEI or any agency using the provincial government financial accounting system. Electronic payment service is the preferred system although other payment forms may be requested. All requests for alternative payment methods must be authorized by the Accounts Payable Supervisor.
Submit a completed Vendor Registration
Please note: Before you supply goods or services to the provincial government, you must have formal agreement or an Official Purchase Order (PO number) from the provincial government department or agency receiving the material. Follow the invoicing instructions described on the Purchase Order to avoid any unnecessary payment delay.
Once the specified goods are delivered in good condition to the receiving department and the invoice is processed, payment will be issued promptly.
Who do I contact about payment for supplies delivered to Government?
Direct your initial queries on payments to the government department or agency receiving the goods.