New Act respecting contracting by municipal bodies: How to Secure Your Bids

What Are the New Pre-Tender Processes for Municipal Contracts? 

The ACMB provides municipal bodies with three optional pre-tender processes: 

• Call for expression of interest : This process allows a municipality to better understand the market before launching a call for tenders, particularly to assess the available solutions. It must be carried out through the electronic tendering system, known as the Système électronique d’appel d’offres (SEAO). 
• Certification of goods : This process is used to verify whether certain goods meet the municipality’s technical requirements. Based on this, a list of preapproved goods is created for a limited period prior to their purchase. 
• Qualification of enterprises : This approach allows for the preselection, for a limited period, of contractors deemed capable of carrying out future contracts. It thus helps mitigate the risk of selecting an unsuitable supplier. Applications must be assessed by a selection committee. 

The End of the “Lowest Tenderer” as the Default Award Procedure 

Under the previous system, contracts were awarded by default to the lowest tenderer, unless another procedure was specified. 

The ACMB changes this approach by requiring municipal bodies to now choose, from among eight award procedures, the one to be used for awarding a contract.  

This change also introduces a new award method: awarding the contract following a request for prices directed at qualified enterprises. Contractors and suppliers should pay close attention to the preliminary qualification processes that municipal bodies may initiate, since some calls for tenders may be reserved exclusively for prequalified enterprises, which will be the only ones invited to submit tenders. 

New Criteria for Evaluating Tenders: What’s Really Changing 

One of the most significant changes introduced by the ACMB is greater flexibility in the rules governing tender evaluation criteria. 

A criterion is now considered valid as long as it has a logical connection to the subject matter of the contract, without necessarily relating exclusively to the intrinsic characteristics of the good or service. Furthermore, the law recognizes that municipal bodies may consider the entire life cycle of the good, service or construction work, which includes: 

• the research and development stages; 
• the design and construction phases; 
• use or maintenance, which may include issues related to upkeep and durability; and 
• end of life. 

In practice, this development allows municipalities to incorporate broader requirements into their tender documents, including those related to sustainable development or environmental performance. For example, a municipal agency could establish criteria in its tender documents related to the project’s life cycle and award higher scores to tenderers who are able to use more environmentally responsible materials or who provide recycling solutions for demolition materials. 

Moreover, responsible procurement policies are becoming a mandatory component of the contract management regulations that municipal bodies must adopt. 

For contractors and suppliers, it means that: 

• the quality of a tender is no longer limited solely to technical compliance; 
• the ability to demonstrate added value becomes a decisive factor; and 
• internal structure (certifications, practices, ESG policies) can constitute a competitive advantage. 

In this context, ensuring tender compliance requires more attention than ever from tenderers, who must satisfy eligibility and compliance criteria while also meeting new requirements that may involve detailed and innovative demonstrations. 

New Tools That Promote a Qualitative Evaluation of Tenders 

The ACMB introduces or formalizes several measures that may directly influence how tenders are evaluated. 

The Preferential Margin  

This method allows a municipal body to grant a premium of up to 10% when evaluating tenders based on predetermined criteria. This margin serves as an important tool for promoting certain characteristics, including the quality of goods or work, environmental practices and compliance with recognized standards. 

Total Acquisition Cost  

The law also allows municipal bodies to specify in their calls for tenders that they will consider some additional costs associated with the acquisition of the good, which must be borne over its useful life. Accordingly, when analyzing the most advantageous tender, the municipal body may consider the total cost of acquiring a good, which is the sum of the initial quoted price plus the anticipated quantifiable additional costs, such as installation, maintenance, support, training and associated technology costs. 

The Increased Importance of Contract History  

The ACMB provides new grounds for rejecting a tender based on an enterprise’s past conduct. A municipal body may therefore reject a tender if the enterprise, within the preceding two years: 

• has failed to follow through on a tender or contract; 
• was terminated for breach of contract; or 
• received an unsatisfactory performance evaluation. 

This development strengthens both the strategic importance of contract management and the need to document relationships with public contracting authorities. Considering the prior termination of a contract is a new development in municipal law that previously existed only under provincial law. The grounds for terminating a contract are, therefore, significant, as they can result in ineligibility to tender on municipal contracts for two years. 

How Can Contractors Better Prepare Their Tenders ? 

The ACMB subtly but significantly alters municipal contract law by changing the way contractors must approach calls for tenders, given the new criteria that municipalities may consider and incorporate into their tender documents. 

From now on, the success of a tender will depend on striking a balance between:  

• strict compliance with administrative requirements; 
• a thorough understanding of the next-generation evaluation criteria to capitalize on elements that may result in a higher score or preferential treatment; and 
• the ability to demonstrate added value tailored to the municipal body’s goals. 
• In this context, enterprises able to incorporate a strategic approach into their tender process will be better positioned to capitalize on the opportunities offered by this new legislative framework. 

Whether you wish to review your tender strategy, ensure the compliance of your documents or better understand the new requirements of the ACMB, BCF’s professionals specializing in public procurement law and municipal law can assist you every step of the way. Reach out to Audrey-Anne Béland or our Public contracts and integrity team for support suited to your specific situation and to optimize your tender processes. 

This article is part of our comprehensive public procurement law series, bringing together the insights of our professionals to help organizations navigate the evolving legal framework governing public contracts, anticipate legislative changes, and strengthen their public tendering strategies.