Part I: Overview

Federal procurement can be complex, involving hundreds of thousands of transactions for a broad range of goods and services, valued at billions of dollars annually. The framework governing federal procurement comprises over 15 acts of Parliament and numerous regulations and policies. In conducting procurement activities, the government must at all times meet the highest standards of public scrutiny and demonstrate exemplary stewardship of the public resources with which it has been entrusted. Ensuring the accountability, transparency and integrity of federal procurement has been a key priority in the Government of Canada's accountability agenda. Over the years, numerous measures have been introduced to ensure that federal procurement is undertaken in an open, fair and transparent manner with due regard for economy and efficiency.

Accordingly, in April 2006, the Government introduced the Federal Accountability Act and its associated action plan, which included the appointment of a Procurement Ombudsman (the Ombudsman). The Office of the Procurement Ombudsman (the Office) was created through an amendment to the Department of Public Works and Government Services Act (the Act). The Office became fully operational in May 2008 with the passing of the Procurement Ombudsman Regulations (the Regulations), which provide specifics on how its authority is to be exercised. The Office's mandate and role are set out in the Act as follows:

• review the practices of departments for acquiring materiel and services to assess their fairness, openness and transparency and make any appropriate recommendations to the relevant department;
• review any complaint respecting the award of a contract for the acquisition of goods below the value of $25,000 and services below the value of $100,000 where the criteria of Canada's domestic Agreement on Internal Trade (AIT) would apply;
• review any complaint respecting the administration of a contract for the acquisition of materiel or services by a department or agency, regardless of dollar value; and
• ensure an alternative dispute resolution process is provided, upon the request of a party to a contract, should all parties to the contract agree to participate.

In addition, the Ombudsman may be directed by the Minister of Public Works and Government Services Canada (PWGSC) or the Governor in Council to perform reviews of the practices employed by departments and agencies for acquiring goods and services. In establishing this mandate, Parliament has provided the Office with the ability to act in an authoritative role, particularly with respect to complaints filed in writing by Canadian suppliers, as well as concerns arising in the procurement process.

The Ombudsman reports directly to the Minister of PWGSC and is required to submit an annual report, which the Minister tables in Parliament.

While the Office is part of the portfolio of the Minister of PWGSC, it operates at arm's length from PWGSC and other departments and agencies. To enhance the Office's independence, a memorandum of understanding was signed between the Deputy Minister of PWGSC and the Ombudsman setting out administrative arrangements and delineating specific roles and responsibilities.

Date modified:

2018-11-01