5. Goods and Services

What Does the GNWT Buy?

General Goods

Goods purchased by the GNWT include raw materials, products, equipment and other physical objects of every kind and description. This may include (but is not limited to) computer equipment, vehicles, office supplies, medical supplies, fuel, and safety equipment.

There are special rules for goods manufactured in the North. To learn more, read about the NWT Manufactured Products Policy.

In general, the GNWT buys goods using four methods:

  1. From Standing Offer Agreements (SOAs).
  2. Less than $25,000: Departments buy directly from suppliers, following the Order of Preference. 
  3. $25,000 or greater: Departments work with Procurement Shared Services to have a formal, competitive procurement process like a tender or Request for Tender (RFT). 
  4. $25,000 or greater: By sole source, only in special circumstances. Regulations require that all contracts be issued through a competitive process unless they meet the strict regulatory requirements for sole source contracting.

General Services

The GNWT buys services like accommodations, transportation, rentals, insurance, permits, printing, consulting, and custodial.

There are special rules for professional services (like legal and accounting) and for architectural and engineering services. 

In general, the GNWT buys services using four methods:

  1.   From Standing Offer Agreements (SOAs) or Supply Service Agreements (SSAs).
  2. Less than $25,000: Departments buy directly from suppliers, following the Order of Preference. 
  3. $25,000 or greater: Departments work with Procurement Shared Services to have a formal, competitive procurement process like a Request for Proposal (RFP). 
  4. $25,000 or greater: By sole source, only in special circumstances. Regulations require that all contracts be issued through a competitive process, unless they meet the strict regulatory requirements for sole source contracting.

Construction

The GNWT makes major capital purchases for construction projects like bridges, schools, hospitals, offices, and housing. The GNWT usually uses two forms of construction contracting methods: 

  1. The design-bid-build model (Construction Tender/Contract), and 
  2. The design-build model (Design-Build RFP/Contract).

Professional Services

These are services provided by a person or persons holding a professional designation/certification under a legislated profession in the Northwest Territories, like a lawyer or accountant.  

In general, the GNWT buys professional services using these methods:

  1. From Standing Offer Agreements (SOAs) or Supply Service Agreements (SSAs).
  2. Less than $10,000: Departments buy directly from suppliers, following the Order of Preference. 
  3. Between $10,000 and less than $50,000: Departments work with Procurement Shared Services to enter a contract with a vendor. Departments follow the Order of Preference and should get at least two quotes. 
  4. $50,000 and greater: Departments work with Procurement Shared Services to have a formal, competitive procurement process like a Request for Proposal (RFP). 
  5. $50,000 and greater: By sole source, only in special circumstances. Regulations require that all contracts be issued through a competitive process unless they meet the strict regulatory requirements for sole source contracting.

Architectural and Engineering Services

In general, the GNWT buys architectural and engineering services using these methods:

  1. From Standing Offer Agreements (SOAs) or Supply Service Agreements (SSAs).
  2. Less than $10,000, departments buy directly from suppliers, following the Order of Preference. 
  3. Between $10,000 and less than $100,000: Departments work with Procurement Shared Services to enter a contract with a vendor. Departments follow the Order of Preference and should get at least two quotes. 
  4. $100,000 and greater: Departments work with Procurement Shared Services to have a formal, competitive procurement process like a Request for Proposal (RFP). 
  5. $100,000 and greater: By sole source, only in special circumstances. Regulations require that all contracts be issued through a competitive process unless they meet the strict regulatory requirements for sole source contracting.

Order of Preference

Whenever possible, the GNWT uses Standing Offer Agreements (SOAs) to purchase goods and services. If there is no SOA, the GNWT follows the Order of Preference. When purchasing any general goods or services less than $25,000, professional services less than$50,000, or architectural and engineering services less than $100,000, the GNWT usually seeks two or more bids from businesses in this order:

  1. Local BIP-Registered business
  2. NWT BIP-Registered business
  3. Local non-BIP business
  4. NWT non-BIP business
  5. Non-NWT business