Direct awards, ACANs and notices of intent explained

Not every public contract is competed. Sometimes a buyer decides only one supplier can do the work: the firm that holds the software licence, the manufacturer's authorised service agent, or the only company with the equipment nearby. In those cases buyers can make a direct award, also called a sole-source or non-competitive award.

Trade agreements allow this in limited situations, often called limited tendering. But a good buyer still gives the market a chance to object. That is what an ACAN or notice of intent is for, and it is a part of public buying that many small firms never look at.

What is an ACAN?

An Advance Contract Award Notice is the federal government's way of announcing that it plans to award a contract to a named supplier. According to the federal ACAN guidance, the notice is posted on CanadaBuys for at least 15 calendar days. It describes the requirement, the minimum essential requirements a supplier must meet, the planned supplier, and the reason for the direct award.

During that period, any supplier that thinks it can meet the requirement can submit a statement of capabilities. If the statement shows that the supplier meets the minimum essential requirements, the department must open the work to a full competition. If no valid challenge comes in, the contract goes to the named supplier.

What about BC buyers?

Many BC municipalities, health authorities and Crown corporations post a Notice of Intent (NOI) before a direct award, often on BC Bid or their own website. Saanich, for example, publishes notices of intent to direct award on its bid opportunities page. The format varies, but most include:

• What the buyer plans to buy and from whom.
• Why it thinks only that supplier can do the work.
• A deadline, often a week or two, for other suppliers to respond.
• How to show you can meet the requirement.

If credible suppliers respond, the buyer usually has to rethink the direct award and may run a competition instead.

Why should a small firm care?

Most notices are legitimate. The named supplier really is the only one. But some are habits: "we have always used them" rather than "only they can do it." Those are worth challenging, politely, if you can genuinely do the work.

Notices also tell you what a buyer is spending on and with whom. Even if you cannot challenge this one, you learn the buyer's needs, budget and incumbent suppliers. That is useful for your pipeline. Read who's who in BC public buying.

How to respond to a notice

1. Read the minimum requirements closely. A response only works if you meet every one of them, not most.
2. Respond before the deadline, in the format asked for. Late responses usually do not count.
3. Write a statement of capabilities. Address each requirement with evidence: licences, equipment, staff qualifications, similar past work and references. See references and experience for tenders.
4. Be factual and courteous. The buyer is not your opponent. You are showing there is a market.
5. Ask what happens next. If your response is accepted, watch for the competition.

Watch for them

ACANs and notices of intent are posted alongside regular opportunities but are easy to miss, because they look like awards rather than bids. Make a habit of scanning them in your trade. If you see the same service being directly awarded year after year, ask the buyer how you could be considered next time. Often the answer is a pre-qualified list or a supplier registration. See standing offers and pre-qualified lists.