Canada's Proposals for the FTAA Agreement 
FTAA Negotiating Groups - Canadian Written Submissions 

1. Open Tendering
   
   A procurement is advertised (for example by a Notice of Proposed Procurement), and any individual, firm or other eligible supplier is free to submit a bid.
   
   
2. Selective Tendering
   
   A list of potential bidders is created and only some or all of those bidders are invited to submit a bid for a particular procurement. Such a list may be or not a permanent list of suppliers (source list).
   
   2.1. Selective Tendering not involving the use of a permanent list of suppliers
   
   This is a two stage procurement where potential bidders express an interest in participating and meet predetermined qualifications for participation publicized at the first stage. Bid documentation is issued to those bidders meeting the qualifications at the second stage.
   
   It is important to distinguish between such a qualification for a particular procurement or series of procurements and the qualification of suppliers to do business with the government or a procurement organization; a qualification which may apply regardless of what tendering procedure is used.
   
   2.2. Selective Tendering involving the use of a permanent list of suppliers
   
   In this case, a source list is developed and maintained and qualified suppliers for the product or service in question are issued the bid documentation. For some existing trade agreements, such as NAFTA and WTO-AGP, an annual notice of the existence of the source list must be published.
   
   
3. Single Sourcing/Direct Contracting or Limited Tendering
   
   Single Sourcing or Direct Contracting refers to a less competitive procurement process (less open and transparent than Open and Selective tendering) which allows the ability to contact a sole or single supplier or a number of suppliers individually. Single Sourcing or Direct Contracting procedures, often known as Limited Tendering procedures in existing trade agreements, such as NAFTA and WTO-AGP, may be used when:
   
   
   1. There is only one source capable of supplying the product or service (referred to as sole source); or
      
      
   2. Although a number of sources exist which are capable of supplying the product or service, it is decided for any reason to direct the purchase to one or more particular sources (referred to as source directed).
      
      

   This in fact means that it is possible to have a competitive procurement within such tendering procedures. Existing trade agreements specify circumstances under which procurement organizations are allowed to use Limited Tendering procedures, with a view to ensuring that they are not used to avoid maximum possible competition or in a manner that would constitute a means of discrimination between suppliers of the other Parties or protection of domestic suppliers.
   

Source: Canadian Department of Foreign Affairs and International Trade