Solicitation options for digital procurements

Get ready to make a digital purchase

Before you begin thinking about a digital purchase, you should be familiar with the basics of procurement. If you’re new to this, How to Buy is the place to start. Once you know the basic requirements of any procurement you can start learning about digital purchases.  

A digital purchase could include hardware, software, and any products and/or services with a technology component. To determine if your organization is ready to procure a digital product, use the Organizational Readiness Checklist (PDF, 83KB) for a New Application. Service and Content Design can also provide guidance on how to design new or existing services. It describes a process to understand what citizens and staff need, and to build products that will improve the service experience.

Before starting any digital procurement, consider the following: 

1. Review the latest information on the government’s new directives on purchasing technology 
2. Get funding for your procurement. Learn about funding your digital service through the digital investment process 
3. Consider whether you are buying the most up-to-date software 
4. When looking at SaaS tools, some may be similar to Microsoft 365 suite. Check the Microsoft products suite already under contract with the government before considering a new SaaS tool 
5. Be aware that you may not have control over the terms and conditions if suppliers are not willing to negotiate this  
6. Consider the additional benefits of your procurement,  such as social purchasing, Guidelines for Environmentally Responsible Procurement (GERP) and economic impacts 
7. If procuring applications that include artificial intelligence (AI), ensure that it allows others to use AI responsibly
8. Review Core Policy and Procedures Manual, Chapter 6: Procurement and Chapter 12: Information Management and Information Technology Management 

Solicitation options 

Digital goods     

Digital goods are tangible items that meet a functional need. This could include hardware (e.g. computers, keyboards, mice, external storage devices, and physical software that is not purchased in cloud format, etc.) or electronic products, such as ebooks, music files, digital images, website templates, or software components built into hardware (e.g. firewall appliances, Cariboo collars). 

If you need to purchase digital office products, speak to your supervisor and ministry procurement specialist, as you may be able to order them from existing corporate supply arrangements. Visit Solicitation Options for Goods for more information.  

These solicitation options may be available for your procurement depending on your budget, timeline, and business requirements. These options are for procurement of a single contract. If you want to purchase goods as, if and when needed, please contact the Procurement and Supply Division (PSD). 

Digital goods could include ebooks, music files, digital images, website template and electronic manuals or software components built into hardware (e.g. firewall appliances, Cariboo collars). 

• Non-binding request to quote  
• Invitation to quote  

Digital services              

Digital services enable organizations to create, manage, access, and optimize information and business processes. These services include IT-related design, project management, consulting, and training. 

Software-as-a-Services (SaaS) is also a digital service. If you need to purchase software, speak to your supervisor, ministry procurement specialist, or ministry service manager. 

These solicitation options may be applicable when you need to purchase digital services: 

• Non-Binding request to quote 
• Request for proposals 
• Negotiated request for proposals 
• Request for standing arrangement 

Note that your purchase could include both goods and services. For example, a contract for cell phones with a two-year plan includes digital goods (the cellphones) and a service (the data plan and support). 

Any maintenance component is considered a service when you’re purchasing software, even if the software is installed locally on a computer (which is considered a good). 

To determine whether your purchase is a good or a service, consider where most of the cost is going. In this example, as the cost of the phone is less than the cost of two years of service, it is considered a service. 

Digital Marketplace 

The Digital Marketplace is a platform that supports digital service procurements, such as Agile services, digital development, application creation, and technical expertise. There is a cost associated with using Digital Marketplace services.  

Services available: 

• Team with Us (TWU)  
• Sprint with Us (SWU) 
• Code with Us (CWU) 

Software contract terms and conditions – understanding the risk 

It is important to understand the terms and conditions of software licences as they can introduce risk to government. For example, the terms and conditions may change during the life of the licence. 

It can also be easy to overlook the terms and conditions when making a “Click-through” or “click-wrap” purchase (one that allow you to simply click to accept the contract terms and conditions), such as an online app. These are legally binding agreements just like any other contract.  

If you have questions about the risks associated with software licence terms and conditions, contact the Risk Management Branch (RMB). 

Are software licenses considered a good or service?  

• If the software license is a subscription, it needs to be renewed and paid every month or year, it is considered a service.  
• It is considered a service because the government doesn’t own the software.  
• Additionally, if cost of the maintenance is more than the cost of the good, the software is considered a service. 
• However, if the software is a perpetual, unchangeable license, the buyer performs the maintenance and does not pay for updates, the software is considered a good.  
• And, if the cost of software maintenance is less than the cost of the actual good, the software is considered a good.

Note: If the cost balance shifts over the course of a contract, it may affect your ability to extend or reprocure the product. 

Cloud software 

Many digital solutions are available as cloud software, which offers convenience, flexibility, and expandability. Learn more about cloud software.

Digital Resources 

Useful resources to help you learn more about procuring digital products and services.