Government Operations committee  Actually I think it's quite complementary, because as part of the mandate of the procurement ombudsman, he will look at and review some of the complaints for procurement that are under the threshold of the NAFTA.

Government Operations committee  Let's take the example of the $60,000 pump. That purchase is subject to and covered by the free trade agreements. Consequently, we have a legal obligation to issue a call to tender to all businesses in the countries that have signed a free trade agreement.

Government Operations committee  For all purchases that are not covered by free trade agreements, so low-value purchases like purchases of goods under $32,000, we strongly encourage the use of credit cards, which enables the departments and regional government offices to buy directly in the region. That in itself stimulates local procurement.

Government Operations committee  I don't have the exact amount of the total contract value, if you wish, of procurement that we did last year related to set-asides. Having said that, I think it's very important to understand what a set-aside does. As soon as we start a procurement process by which we identify a set-aside, such as the aboriginal, this allows us to remove that procurement from the trade agreements, which will allow us to procure in Canada.

Government Operations committee  I'd like to say that I don't know all the details, although I do have an expert we could call. Having said that, ITARs are very important because we are also responsible for large military procurements on which ITARs have quite an impact.

Government Operations committee  First, the Federal Accountability Act is a piece of legislation that has quite an impact on my world in acquisitions because it reconfirms our openness and fairness, which is the foundation of what we do. At the same time, when you look at the FAA provisions, a procurement ombudsman needs to be appointed to review the procurement practices of the government and also to respond to vendor complaints.

Government Operations committee  Thank you for the question. One of our first considerations, when we plan a purchase, is to identify needs. There is a major difference between the goods that we can buy and services. Once we've established needs, we manage to determine whether it is a product that we can buy at the lowest price, thus at the lowest cost, or whether we need a product of this quality, but at that price.

Government Operations committee  When we receive requests, apart from specifications—pumps, in this case—we have to check to see whether the good that we have to purchase is subject to a free trade agreement or not. It depends on the nature of the good and its value.

Government Operations committee  Thank you, Mr. Chairman, and good afternoon, everyone. First I would like to thank committee members for this opportunity to share with you information about PWGSC's procurement activities. George Butts will provide an overview of procurement activities, the constraints involved, and the impact of trade agreements.