Effective April 1, 2021, the Government of the Northwest Territories (GNWT) has reduced the threshold for requiring a formal tender process from $25,000 to $10,000 for general goods and services. This change will stay in effect until July 31, 2021.

The Departments of Finance and Industry, Tourism, and Investment (ITI) are implementing this short-term procurement policy change in response to feedback received from business development staff on-the-ground in communities and the NWT business community.

The change is part of GWNT efforts to ensure that more northern businesses have a fair and equal opportunity to compete for GNWT contracts by increasing transparency, and awareness of government procurement opportunities. To that end, this change will be evaluated and assessed – along with all other existing procurement policies – as part of the current GNWT procurement and contracting review. 

Under this temporary change, all GNWT purchasing above $10,000 will now go through the formal GNWT public procurement process. GNWT departments or employees seeking goods and services estimated to be $10,000 and over will use a public competitive procurement request such as a Request for Proposal (RFP), or a tender.

Purchases of General Goods and Services under $10,000 will continue to follow the order/hierarchy for purchasing:

• Local BIP Registered Businesses (first priority)
• NWT, BIP Registered Business (second priority)
• Local businesses (third priority)
• NWT businesses (fourth priority)
• Non-NWT based businesses (fifth priority)

The process and limits for professional, architectural, and engineering services are unchanged.

Quote

“GNWT procurement is a significant contributor to the NWT’s economy and to businesses all across our territory. This change to the GNWT’s procurement process is being enacted to ensure that more northern businesses feel they have a fair and equal opportunity to compete for GNWT contracts.”

 - Caroline Wawzonek, Minister of Finance

Quick Facts

• One of the Mandate commitments of the 19th Legislative Assembly is to ensure government procurement and contracting maximizes benefits to residents and businesses.
• The GNWT is one of the largest purchasers of construction, goods, and services in the NWT.
• The GNWT launched the procurement review on January 27, 2021 with the announcement of an independent panel.

Related Links

• https://www.gov.nt.ca/en/newsroom/review-government-procurement-launched
• https://www.fin.gov.nt.ca/en/services/procurement-shared-services
• GNWT Procurement Guidelines
• Financial Administration Manual
• https://www.eia.gov.nt.ca/en/gnwt-mandate-2020-2023/ensure-government-procurement-and-contracting-maximizes-benefits-residents
• https://www.iti.gov.nt.ca/en/services/business-incentive-policy

Media Inquires

Todd Sasaki
Senior Communications Officer
Department of the Finance
Government of the Northwest Territories
5003 49 St Yellowknife NT X1A 1P5
Tel: (867) 767-9168 ext. 15015
Fax: (867) 873-0235
Email: todd_sasaki@gov.nt.ca
Web: www.gov.nt.ca