Unlocking competition in public procurement: A guide for procurement authorities

On this page

• Introduction
• Six ways to boost competition in public procurement
  • Make bidding open and fair
  • Write tender specifications that invite real competition
  • Look at more than just price
  • Watch for cheating
  • Speed things up
  • Work together
• We are here to help
• Footnotes

Introduction

If you are involved in procurement or draft procurement policies at any level of government, this guide is for you. It sets out six ways you can use competition to get higher value from public procurement.

When procurement processes are truly competitive, more suppliers can participate. Organizations are more likely to get better quality, better prices, and more innovative solutions to meet public needs. This benefits both buyers and the market as a whole. Over time, it also helps build stronger, more resilient and more diverse supply chains and markets.

In Canada, all levels of government together spend about 13.4% of our gross domestic product (GDP)—or about $300 billion each year—on procurement. Even a 1% drop in prices through more competition could generate savings of about $3 billion each year. These savings can help reduce public spending or help fund other programs and services for Canadians.

This guide will help you make procompetitive decisions, whether you are working on a new procurement framework or planning a call for tenders. Factoring competition into procurement processes and frameworks can promote fairness, support strong supply chains, increase opportunities for small and medium-sized enterprises (SMEs), and maximize value for money.

Six ways to boost competition in public procurement

1. Make bidding open and fair

What this means

Open and fair bidding attracts participation from as many qualified suppliers as possible. It ensures all businesses are treated equally, with no unfair advantage given to any particular one.

Why it matters

When more suppliers can bid, competition increases. This means better prices, more innovative solutions and a wider range of options to meet organizations’ needs.

Over time, steady access to bidding opportunities also builds a stronger supplier community. Businesses are more likely to invest in improving their skills, services, and products when they see fair opportunities to compete for contracts. This creates a more stable, competitive environment for organizations to rely on in the future.

In addition, open and fair procurement supports healthy competition by encouraging broader participation, which lowers the risk of cheating and dependence on a few established suppliers.

How to do it

• Learn about the market and engage with suppliers early. This helps you understand their capabilities and identify barriers to participation. For example, you can combine tenders to reduce supplier costs or divide them into smaller lots so new or smaller suppliers can bid.^{Footnote 1}
• Allow participation from as many qualified suppliers as possible. Avoid unnecessary or overly restrictive requirements.
• Clearly communicate your requirements, timelines, and evaluation criteria to all potential suppliers. This transparency helps suppliers prepare strong and relevant bids. However, be careful not to share competitively sensitive bid information.
• Advertise tenders widely to reach a broad range of suppliers. Use multiple channels, such as government procurement websites, trade publications, social media, and industry associations.
• Provide equal access to information. Answer supplier questions promptly and share updates and clarifications with all interested suppliers at the same time.
• Review qualification and technical requirements regularly. Make sure they are reasonable and do not exclude capable suppliers. Avoid contract terms that make it difficult to switch suppliers in the future.
• Allow enough time for suppliers to prepare and submit bids. This supports greater participation, especially from small and medium-sized businesses.
• Offer debriefings to unsuccessful bidders. Clear and constructive feedback helps suppliers improve and encourages them to participate in future opportunities.

2. Write tender specifications that invite real competition

What this means

Specifications should invite competition by focusing on real needs, not on a particular brand, product, or supplier. Suppliers should have a fair chance to bid, and they should be able to propose different solutions.

Why it matters

Clear and well-designed specifications make it easier for suppliers to compete and for new suppliers to enter the market. If requirements are too narrow, unclear, or tailored to one specific supplier, capable businesses may choose not to bid. Too many requirements can also reduce the number of bidders and make the process more costly and complex. You may also miss the opportunity for new companies to compete that can provide real value, now and in the future, at different points in the supply chain.

How to do it

• Describe the results you want, not how suppliers must achieve them or which brand to use. Be specific only when there is a clear technical reason. For example, instead of saying “You must use Brand X equipment,” say “The equipment must safely lift 500 kilograms.”
• Use mandatory criteria only for essential requirements. For example, consider whether security clearances are truly necessary to complete the work.
• Avoid requiring experience with identical projects or technology unless they are truly needed.
• Use rated criteria to assess quality and value.^{Footnote 2}
• Consult a range of stakeholders, including end users and potential suppliers, before finalizing the specifications. This ensures that requirements are practical, realistic, and inclusive.
• Carefully review specifications internally.
• Allow suppliers to propose equivalent products or alternative approaches.
• Use plain language. This reduces misunderstandings and makes it easier for more suppliers to bid.
• Update templates and standard requirements regularly to keep pace with changes in the market and technology. This makes it easier for more suppliers to participate, especially innovators.
• Give suppliers a chance to comment on draft specifications before you publish the tender. Their feedback can help identify and remove barriers that may limit competition.

3. Look at more than just price

What this means

Value is not only about the lowest price. A balanced evaluation looks at both price and non-price factors, such as quality, service, sustainability, and supplier reliability.

Why it matters

If you assess bids on price alone, you may miss other factors that affect long-term value.

Focusing only on price can also discourage suppliers who offer higher quality, more innovative, or more sustainable solutions. As a result, fewer suppliers may choose to bid. This can reduce choice and limit long-term value for money.

In contrast, when you consider a wider range of evaluation criteria, you encourage more suppliers to participate. This supports competition and leads to better outcomes for buyers.

How to do it

• Set clear evaluation criteria that balance price with key non-price factors, such as technical quality, sustainability, and after-sales support. Assign weights to each criterion, so suppliers understand what matters most.
• Include supplier performance as a non-price criterion. This can include both qualitative and quantitative performance indicators, such as past results, reliability, and service quality. Highlighting performance shows that both price and performance matter.^{Footnote 3}
• Involve relevant stakeholders when deciding which non‑price factors are most important to the project’s success.
• Clearly explain the evaluation criteria in tender documents, so suppliers understand how bids will be assessed.
• Use simple and transparent scoring tools, such as tables or evaluation grids. This helps compare bids fairly and consistently across all criteria.
• Review and update evaluation methods regularly. This helps reflect changing needs, priorities, and market conditions, and keeps competition strong and fair.

4. Watch for cheating

What this means

Cheating can happen in different ways during a bidding process. For example, it may involve suppliers rigging bids or giving false information about their qualifications or prices.

Staying alert to these behaviours helps protect the integrity of the procurement. It also helps ensure contracts are awarded in a fair and transparent way.

Why it matters

When cheating is not addressed, trust in the process can decline. Honest suppliers may feel they do not have a fair chance to compete. Over time, this can lead to fewer bidders and weaker competition.

Cheating can also increase costs and lead to lower-quality goods or services. A fair process builds supplier confidence, supports healthy competition, and leads to better results for buyers and the market.

How to do it

• Set clear rules and procedures to prevent and detect fraud. This can include conflict-of-interest declarations, bid monitoring, and clear consequences for non-compliance.
• Look for warning signs in bids. Use technology and data analysis to identify patterns such as identical bids or unusual pricing. With paper bids, watch for telltale signs, such as bids sent from the same address or submitted together.
• Train procurement teams and others involved in the process to recognize signs of collusion or bid manipulation. Regular training helps keep skills and knowledge up to date and supports a clear understanding of relevant policies, regulations and risks.
• Encourage people to speak up about concerns, including through whistleblowing. Provide safe and confidential ways to report unethical behaviour without fear of retaliation.
• Audit procurement processes and results regularly. This helps confirm compliance, identify weaknesses, and make improvements.
• Give suppliers information from the Competition Bureau so they know what bid-rigging is and understand that your agency is serious about detecting and preventing it.
• Require bidders to submit a Certificate of Independent Bid Determination.

5. Speed things up

What this means

A faster procurement process helps award contracts more quickly. It reduces delays and unnecessary administrative work.

This can include removing unnecessary steps, simplifying documents, using digital tools for repetitive tasks, and setting clear timelines for each stage.

Why it matters

Long procurement processes can discourage suppliers from bidding. This is especially true for small and medium-sized businesses, which are more likely to have limited resources

Faster processes attract more suppliers and increase competition. They also help buyers access the best solutions sooner, which benefits the market as a whole.

How to do it

• Review procurement procedures and remove steps or paperwork that do not add value. Do this regularly for recurring tenders or standing offers.
• Use digital tools to automate repetitive tasks in the procurement process, such as parts of bid submissions, evaluations, and supplier communications. Ensure that tools are used responsibly and with proper human oversight.
• Set clear deadlines for each stage of the process. Share them with suppliers and track progress.
• Provide ongoing training for procurement teams on how to streamline or expedite processes. This helps improve efficiency while maintaining fairness and transparency.
• Ask for feedback from suppliers, stakeholders, and your own team. Use it to identify what works, what does not, and where changes are needed.

6. Work together

What this means

Tendering authorities should share information and best practices. This supports fair treatment of suppliers and helps prevent cheating. It also improves awareness of typical prices for similar goods and services.

Why it matters

When tendering authorities work together, the process is more likely to be fair and trusted. Sharing information helps teams spot unusual prices or behaviours that may signal cheating. It also helps departments learn from each other and see what reasonable costs look like for similar work. This makes it harder for dishonest suppliers to take advantage of the system, which helps protect public funds.

How to do it

• Talk to other departments or levels of government about what has worked well and what challenges they have faced in past procurements.
• Promote the use of a Vendor Performance Management (VPM) system.^{Footnote 4} A VPM can help share supplier performance information across governments and jurisdictions.
• Ask others what they typically pay for similar goods or services.
• Share concerns when you notice something unusual in a bid so others can watch for similar issues.
• Stay in regular contact with other teams. Take part in working groups or meetings with other government teams to discuss procurement practices, risks, market trends and ways to prevent cheating.
• Look for guides, templates, or training materials developed by other organizations.
• When dealing with complex procurements, ask for help early on by reaching out to teams with relevant experience.

We are here to help

The Competition Bureau offers free information sessions for public-sector procurement officers and tendering authorities. These sessions help participants recognize and prevent bid-rigging.

Fill out our online form to request a bid-rigging information session.