Why Competitive Tendering Works: Evidence from McGill
As a public research institution, McGill University must demonstrate judicious use of all funds—whether public, private donations, or self-funded initiatives. Accordingly, the Sustainable Procurement Policy states that every acquisition needs to align with the University’s triple bottom line—social, environmental, and economic—while complying with relevant policies and regulations. Our goal is simple: to help you meet your teaching, research, and administrative needs under the fairest terms for all parties.
Better Pricing That Meets Our Needs
Fair competition drives the best results. When we present our requirements to the market, suppliers are motivated to offer their most competitive pricing to work with McGill. This not only secures cost savings (typically around 10% but with instances of around 60% off the budgeted amount); it also ensures suppliers tailor their solutions to meet the University’s specified needs.
As Adrienne Piggott, Associate Director of Procurement Services, explains:
“Competitive tendering gives us both value and fit. It’s not just about lowering costs. It’s about obtaining the contractual commitment from suppliers that their solutions will not just meet their sales specifications, but that it will meet the needs of our teaching, research, and administrative communities.”
In today’s context of pandemic-driven price increases, tariffs, and supply chain challenges, securing the best deal while still meeting our academic and operational requirements is critical. Our Procurement professionals are trained to navigate the market efficiently, so the University benefits fully on both fronts.
Faster Execution
Although it may seem counterintuitive, public calls for tenders (CFTs) are often completed more quickly than sole-source agreements. For example, Calls for tenders such as “lowest compliant price” tenders, can be published and awarded in as little as three weeks. By setting the terms upfront as part of the calls for tenders, we avoid lengthy contract negotiations between McGill, the supplier, and their respective legal teams. By investing time early to clearly define requirements and incorporate them directly into the contract, competitive tendering not only streamlines the process, but also ensures the outcome is aligned with the University’s priorities.
Access to the Unknown
Even subject-matter experts cannot always anticipate every possible solution. Public calls for tenders often surface innovative solutions or approaches that may not have been considered otherwise. Rather than defining a specific product or service we believe will meet our needs (as we often do in our private lives when shopping in a store or online), competitive tendering invites the market to respond directly to the needs we outline. This openness makes, it possible to discover solutions or approaches that were not previously on our radar sometimes offering a better fit for our needs than originally expected, including in terms of sustainability. In doing so this process not only broadens the range of possibilities available to the University community but also reinforces transparency and fairness.
Transparent and Equitable
Competitive tendering is the cornerstone of public procurement. Suppliers are evaluated on the merits of their proposals. This approach protects the integrity of McGill’s procurement process.
As Adrienne Piggot puts it:
“Transparency and fairness are at the heart of our mandate. Competitive tendering gives suppliers a fair chance, ensures our needs are met, and every member of our community benefits when this leads to the best possible outcome.”
To find your designated Procurement Services representative, please visit the Procurement Services Contact page under the Lead Buyer Portfolio Assignments.