What Is a Tender

Definition

A tender is a formal, published invitation from a buyer asking qualified suppliers to submit competitive bids to provide goods or services. In everyday Canadian procurement language, tender is an umbrella term that covers several specific solicitation types, including the Request for Proposal, the Request for Quotation, the Request for Standing Offer, and the Request for Supply Arrangement. The word is also used for the supplier's submission itself, as in submitting a tender. The defining features of a tender are that it is competitive, that it is published to multiple potential suppliers, and that award follows published evaluation rules.

How it works in Canadian procurement

Federal tenders subject to trade agreements are published on CanadaBuys, the Government of Canada electronic tendering service. Provincial, municipal, and broader-public-sector tenders are spread across platforms such as MERX, Biddingo, Bids and Tenders, and individual buyer portals. A tender notice sets out the requirement, the mandatory qualifications, the evaluation criteria, the submission method, and the closing date. Suppliers prepare and submit a bid before the deadline; late bids are normally rejected automatically. The buyer evaluates compliant bids against the published criteria and awards accordingly, then often posts an award notice. Trade agreements such as the Canadian Free Trade Agreement and CETA require open, transparent tendering above defined value thresholds, which is why most significant government requirements are tendered rather than sole-sourced.

Common confusions

Tender, bid, and RFP are often used interchangeably, but they are not identical. A tender is the buyer's invitation; a bid is the supplier's response; an RFP is one specific kind of tender. A second confusion is assuming every government purchase is tendered. Low-dollar purchases, standing-offer call-ups, and qualifying sole-source contracts can proceed without a public tender. Finally, a tender that closes without an award is not necessarily cancelled: it may simply mean no submission met the mandatory requirements.

Frequently asked questions

Related terms

• Request for Proposal (RFP): A formal procurement notice used by Canadian government buyers to solicit competitive bids for goods or services of every kind, from professional services and construction to IT, facilities, and cleaning contracts.
• Request for Quotation (RFQ): A Canadian government procurement notice used to solicit competitive prices for a clearly defined, lower-complexity requirement.
• CanadaBuys: The Government of Canada's central electronic tendering service for federal goods and services procurement across all categories, from IT and consulting to construction, facilities, and cleaning.
• MERX: A commercial Canadian e-tendering platform, operated by Mediagrif, widely used by provincial governments, municipalities, school boards, and Crown corporations to post procurement notices across every industry.
• Standing Offer: A pre-arranged Canadian government procurement vehicle that lets buyers issue call-ups for goods or services on demand, at pre-negotiated rates, without re-running a full RFP each time.

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