Directive on the Management of Procurement

The directive ensures that procurement of goods, services and construction obtains the necessary assets and services that support the delivery of programs and services to Canadians, while ensuring best value to the Crown.
Date modified: 2021-07-06

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Note to reader

The requirements in the Directive on the Management of Procurement take effect on May 13, 2021; however, departments have 12 months to fully transition to the new directive.

The following instruments will remain in effect until May 13, 2022:

During the transition period, departments may adhere to the requirements described in either of the following:

1. Effective date

  • 1.1This directive takes effect on May 13, 2021.
  • 1.2This directive replaces the following Treasury Board policy instruments:
    • Contracting Policy (April 11, 2019)
    • Policy on Decision Making in Limiting Contractor Liability in Crown Procurement Contracts (September 1, 2003)
  • 1.3The requirements in Appendix A: Contracting Approvals of this directive will come into full effect immediately on May 13, 2021.
  • 1.4With the exception of Appendix A: Contracting Approvals, departments have 12 months to transition to this directive.
  • 1.5Subsection 4.5 is not applicable to procurements in solicitation or prior to contract award as of the date of approval of this directive.
  • 1.6Existing contracts or contractual arrangements in place prior to the date of approval of this directive, including option years established at the time of award, will be exempt from transitioning to this directive. For contractual arrangements with no explicit end date, consider transitioning to this directive upon regular review or renewal of the arrangements.

2. Authorities

3. Objectives and expected results

  • 3.1The objective of this directive is that procurement of goods, services and construction obtains the necessary assets and services that support the delivery of programs and services to Canadians, while ensuring best value to the Crown.
  • 3.2The expected results of this directive are as follows:
    • 3.2.1Procurements are managed in a manner that enables operational outcomes and demonstrates sound stewardship and best value consistent with the Government of Canada’s socio-economic and environmental objectives;
    • 3.2.2Procurement decisions are based on risk management practices, performance information and an assessment of full life-cycle costs whenever possible;
    • 3.2.3Effective governance and oversight mechanisms are in place to support the management of procurement;
    • 3.2.4Opportunities for collaboration are considered in procurement decisions;
    • 3.2.5Workforce capacity for the management of procurement is developed, maintained and commensurate with organizational need; and
    • 3.2.6Actions related to the management of procurement are fair, open and transparent, and meet public expectations in matters of prudence and probity.

4. Requirements

Senior designated officials for the management of procurement

  • 4.1Senior designated officials for the management of procurement are responsible for the following:
    • 4.1.1Establishing, implementing, and maintaining a departmental procurement management framework, consisting of processes, systems and controls;
    • 4.1.2Ensuring that the departmental procurement management framework:
      • 4.1.2.1Includes oversight, planning and reporting mechanisms;
      • 4.1.2.2Includes clearly defined roles, responsibilities and accountabilities for the various governance committees involved;
      • 4.1.2.3Incorporates performance results, lessons learned and best practices to inform procurement decision-making;
      • 4.1.2.4Maintains the integrity of the procurement process;
      • 4.1.2.5Contributes the procurement perspective to departmental planning functions and ensures that procurement strategies in the investment plan are in accordance with the Policy on the Planning and Management of Investments, Appendix B: Mandatory Procedures for Investment Plans;
      • 4.1.2.6Ensures that procurement-planning reflects a strategic approach to departmental procurements, including contractual arrangements;
      • 4.1.2.7Considers pricing strategies that enable coordinated asset management decisions;
      • 4.1.2.8Considers input from key stakeholders, including but not limited to real property, materiel, project management, information technology, finance, security, legal services and human resources;
      • 4.1.2.9Is commensurate to the value, risk and complexity of the procurement (or procurements) undertaken;
      • 4.1.2.10Promotes collaborative, innovative, iterative and outcomes-based procurement approaches where appropriate;
      • 4.1.2.11Facilitates compliance with all legal obligations such as those arising from modern treaties (such as Comprehensive Land Claim Agreements, see Appendix D: Requirements Included in Other Policies, Programs and Agreements That Impact Procurements, section D.1), trade agreements (see Appendix D: Requirements Included in Other Policies, Programs and Agreements That Impact Procurements, section D.2), official languages, accessibility, financial management, privacy, environmental sustainability and security legislation;
      • 4.1.2.12Gives precedence to competition in accordance with the Government Contracts Regulations and trade agreements; and
      • 4.1.2.13Facilitates the collection and publication on the Open Government portal of accurate, timely and complete data for corporate reporting on procurement as described in Appendix C: Mandatory Procedures for the Disclosure of Contracts and Reporting;
    • 4.1.3Facilitating collaboration between contracting authorities and business owners throughout the investment-planning process and procurement life cycle to enable informed procurement decisions;
    • 4.1.4Supporting improvement of government-wide procurement tools and practices by collaborating with Public Services and Procurement Canada, Shared Services Canada and the Treasury Board of Canada Secretariat;
    • 4.1.5Providing advice to the deputy head on:
      • 4.1.5.1The nature, structure and required resourcing for implementation of the department’s procurement management function;
      • 4.1.5.2Significant gaps in performance or issues of non-compliance with the requirements of this directive; and
      • 4.1.5.3Departmental procurement plans;
    • 4.1.6Identifying and addressing the department’s needs with respect to the necessary competencies, capacity and professional development in procurement management.

Business owners (client department or agency, technical authority)

  • 4.2Business owners are responsible for the following:
    • 4.2.1Clearly defining, to contracting authorities, the intended outcomes of the procurement, including the operational requirements, end user needs, expected benefits, alignment with the government’s strategic direction and total costs over the life cycle whenever possible;
    • 4.2.2Adhering to the Values and Ethics Code for the Public Sector and the Directive on Conflict of Interest when engaging with suppliers;
    • 4.2.3In collaboration with contracting authorities, supporting procurement-planning and decision-making by:
      • 4.2.3.1Conducting market analysis to better understand industry capacity and availability; and
      • 4.2.3.2Establishing and maintaining valid cost estimates;
    • 4.2.4Adhering to the required governance processes for projects, assets and procurement decisions, commensurate to the risk and complexity of the procurement and in accordance with the departmental procurement management framework;
    • 4.2.5Engaging with contracting authorities at the outset of planning investments, in order to integrate procurement considerations into the planning of programs, services and projects;
    • 4.2.6Building in sufficient lead time to ensure that procurement activities and program operational requirements are met;
    • 4.2.7Ensuring that the intended outcomes of the procurement are aligned with the departmental mandate and priorities, available funds, and key socio-economic and environmental benefits:
      • 4.2.7.1Where appropriate, including accessibility considerations when specifying requirements for goods, services and construction, and ensuring that deliverables incorporate accessibility features;
        • 4.2.7.1.1Ensuring clear justification is documented if it is determined that accessibility considerations are not consistent with modern treaties or trade agreements, or if it is not appropriate to include them as part of commodity specifications, or if it is not possible to obtain goods, services or construction that comply;
      • 4.2.7.2Where appropriate, including environmental considerations when specifying requirements for goods, services and construction and leveraging procurement practices in accordance with the Policy on Green Procurement and documenting files accordingly; and
      • 4.2.7.3Where appropriate, considering opportunities to support the participation of Indigenous peoples in matters related to procurement and documenting files accordingly;
    • 4.2.8In collaboration with contracting authorities, monitoring the delivery of the procurement and supporting any related reporting requirements;
    • 4.2.9Consulting with Treasury Board of Canada Secretariat (and other impacted government departments) to determine requirements for seeking Cabinet or Treasury Board approval when:
      • 4.2.9.1Developing or leading a program or policy that uses procurement to advance a government-wide socio-economic or environmental objective;
      • 4.2.9.2Imposing any mandatory requirements that involve changes to the administration of procurement by other departments; and
      • 4.2.9.3Ensuring that these requests include:
        • 4.2.9.3.1A clear alignment of intended outcomes with government priorities and other programs or policies; and
        • 4.2.9.3.2A sound business case, including a risk assessment, expected benefits indicators, and supporting guidance and tools for government-wide implementation.

Contracting authorities

  • 4.3Contracting authorities are responsible for the following:
    • 4.3.1Conducting procurements on behalf of the department or agency, and establishing contracts and contractual arrangements based on sound procurement principles, including fairness, openness and transparency to obtain best value;
    • 4.3.2Ensuring that the integrity of the procurement process is maintained throughout by:
    • 4.3.3In collaboration with business owners, ensuring that pricing strategies are considered in procurement-planning and throughout the procurement life cycle;
    • 4.3.4Providing advice and recommending options to business owners on procurement strategies that meet operational requirements and have the intended results; the procurement strategies are based on risk, complexity and best value considerations, such as but not limited to:
      • 4.3.4.1Including outcomes-based, iterative approaches where appropriate;
      • 4.3.4.2Incorporating market analysis and supplier engagements;
      • 4.3.4.3Including an initial contract period with option years, off-ramps, phases, and gates to allow flexibility as appropriate;
      • 4.3.4.4Including supplier incentives, Crown payment credits, and adjustments to contracts, their duration or length, and their processes provided that compliance, safety, quality and other specified considerations within the contract are met;
      • 4.3.4.5Considering opportunities for the unbundling of requirements where applicable, and inviting bids by commodity to permit smaller and more specialized firms to bid;
      • 4.3.4.6Ensuring that all decisions related to the legitimate division of requirements into multiple smaller requirements are documented, and are not intended to avoid financial approval thresholds or policy requirements, such as contract entry limits, regulatory rules and trade agreement obligations;
      • 4.3.4.7Ensuring strategic category management, including socio-economic and environmental considerations;
      • 4.3.4.8Using pricing strategies, including the basis of payment, incentives and performance adjustments;
      • 4.3.4.9Considering input from relevant stakeholders responsible for investment management, project management, materiel management and real property management;
      • 4.3.4.10Including the life-cycle costs of the asset and all stages of the procurement;
      • 4.3.4.11Using common service providers;
      • 4.3.4.12Using Public Services and Procurement Canada’s published list of acquisition instruments, including the mandatory standing offers and supply arrangements as listed in Appendix A: Contracting Approvals, section A.6 (Standing offers and supply arrangements);
      • 4.3.4.13Considering non-mandatory Public Services Procurement Canada acquisition instruments, where practicable; and
      • 4.3.4.14Applying lessons learned from previous procurements and best practices;
    • 4.3.5Implementing the departmental procurement management framework established by senior designated officials while liaising horizontally across business lines to identify opportunities for efficiencies and achieve intended outcomes;
    • 4.3.6Collaborating with other government departments on joint procurements as appropriate;
    • 4.3.7In consultation with business owners, monitoring, documenting, investigating and discussing contractor performance issues as they arise over the course of the contract in order to select appropriate measures required to address documented issues; and
    • 4.3.8Ensuring that requirements included in other policies, programs and agreements are considered and met as described in Appendix D: Requirements Included in Other Policies, Programs and Agreements That Impact Procurements.

Industry engagement and market analysis

  • 4.4When conducting industry engagement, as appropriate, contracting authorities, in collaboration with business owners, are responsible for the following:
    • 4.4.1Assessing whether an outcomes-based procurement approach is appropriate, such as in situations where:
      • 4.4.1.1There is no existing solution on the market;
      • 4.4.1.2The business requirement needs cannot be met without significant modifications to existing solutions;
      • 4.4.1.3The business requirement is complex and involves multiple stakeholders;
      • 4.4.1.4Collaboration with suppliers in solution development may be required;
    • 4.4.2Developing industry engagement strategies that respect the principles of a fair, open and transparent procurement process;
    • 4.4.3Communicating the rules of that engagement with all stakeholders involved;
    • 4.4.4Conducting market analysis in the procurement-planning phase to better understand industry capacity and availability;
    • 4.4.5Developing performance-based evaluation criteria that are commensurate with the risk and complexity of the procurement, through the following measures, including but not limited to:
      • 4.4.5.1Requesting third-party reviews and analysis;
      • 4.4.5.2Organizing or participating in events, including bidders’ conferences, supplier or industry days and site visits; and
      • 4.4.5.3Issuing requests for information, request for expressions of interest, or advance contract award notices as required;
    • 4.4.6Ensuring that there are opportunities for suppliers to collaborate and develop solutions, including pilots and prototypes, where appropriate;
    • 4.4.7Leveraging market analysis and applying business acumen and negotiation skills to develop the terms of a contract; and
    • 4.4.8Revalidating the market analysis sufficiently in advance of negotiating the extension of non-competitive procurements to allow for the consideration of other options as appropriate.

Solicitation and bid evaluation

  • 4.5Contracting authorities are responsible for the following:
    • 4.5.1Ensuring that bids are solicited for contracts, except when one of the exceptions set out in the Government Contracts Regulations applies;
    • 4.5.2Publishing on the Government of Canada–approved electronic tendering system, except when publication is not in the public interest, the following as required by applicable trade agreements:
      • 4.5.2.1All notices, solicitations, invitations to tender andbid documents, unless otherwise permitted by each of the applicable trade agreements;
      • 4.5.2.2Advance contract award notices identifying the intended supplier for at least 15 calendar days;
    • 4.5.3Simplifying solicitation documents wherever possible to support streamlined processes;
    • 4.5.4To the extent possible, taking past performance into consideration when assessing a bidder’s ability to deliver, and managing the contract accordingly;
    • 4.5.5Including requirements for former public servants to self-identify in solicitations and in the resulting contract clauses of service contract documents, and informing suppliers that this information will be proactively disclosed; and
    • 4.5.6Collaborating with business owners to ensure that any appropriate socio-economic and environmental requirements are achievable and measurable;
    • 4.5.7Designing and conducting the bid evaluation process, financial assessment and due diligence;
    • 4.5.8Limiting the number of mandatory technical criteria to those determined to be essential requirements in order to achieve the desired outcomes and ensure that no bid is unnecessarily disqualified.

Contracting approvals

  • 4.6Contracting authorities are responsible for the following:
    • 4.6.1Seeking Treasury Board approval when the estimated value for a contract or contractual arrangement, including taxes, expected amendments, and follow-on contract or contractual arrangement, exceeds the limits in Appendix A: Contracting Approvals:
      • 4.6.1.1Prior to entering into or amending a contract or contractual arrangement;
      • 4.6.1.2Prior to amending a contract or contractual arrangement if the procurement deliverables or costs change after advance approval; and
      • 4.6.1.3Prior to entering or amending a contract issued against an acquisition instrument (for example, standing offer or supply arrangement) when the estimated value exceeds the limits specified in the Treasury Board–approved acquisition instrument;
    • 4.6.2Where appropriate, based on procurement strategies or plan, seeking advance Treasury Board approval to enter into a contract or contractual arrangement;
    • 4.6.3Ensuring that emergency conditions exist and seeking the appropriate approval prior to entering into an emergency contract or contractual arrangements in accordance with the requirements specified in Appendix A: Contracting Approvals, section A.3;
    • 4.6.4Seeking ministerial approval for contracts with former public servants in accordance with Appendix A: Contracting Approvals, section A.4 (Former public servants contract approvals);
    • 4.6.5Seeking Treasury Board approval to change an approval authority in accordance with Appendix A: Contracting Approvals, section A.5 (Requesting changes to contracting approval limits); and
    • 4.6.6Seeking Treasury Board approval to limit contractor liability or to indemnify in accordance with Appendix B: Mandatory Procedures for Limitation of Contractor Liability and Indemnification in Contracts.

Employer-employee relationships

  • 4.7Business owners are responsible for the following:
    • 4.7.1Ensuring that an employer-employee relationship does not form during the contract; and
    • 4.7.2Keeping their contracting authorities informed of the conditions or changes to the way in which the work must be performed that may create an employer-employee relationship.
  • 4.8Contracting authorities are responsible for the following:
    • 4.8.1Ensuring that business owners using contracted services are aware of the risks associated with the creation of employer-employee relationships, prior to and during the performance of the contract; and
    • 4.8.2Including terms and conditions that prevent the risk of creating employer-employee relationships in the contract.

Contract management and documentation

  • 4.9Business owners are responsible for the following:
    • 4.9.1Monitoring, documenting and certifying the delivery of goods, services and construction to ensure that the delivery meets the provisions of the contract or contractual arrangement, including such criteria as quality, standards and service levels;
    • 4.9.2Monitoring and documenting costs, including confirming that the invoice is in accordance with the contract or contractual arrangement and reflects the work performed;
    • 4.9.3Informing contracting authorities of contractor performance, including both the challenges and achievement of key deliverables as they arise;
    • 4.9.4In collaboration with contracting authorities, communicating performance issues and consequences to the contractors as they arise, and providing contractors with an opportunity to address the issues as appropriate;
    • 4.9.5In collaboration with contracting authorities, reviewing complex procurements, where appropriate to:
      • 4.9.5.1Assess the appropriateness of the procurement strategy;
      • 4.9.5.2Determine whether best value and the intended outcomes are being achieved (including but not limited to socio-economic and environmental outcomes);
      • 4.9.5.3Identify opportunities for improvement or change where applicable;
      • 4.9.5.4Document, share, and apply lessons learned and best practices, where possible; and
      • 4.9.5.5Apply best practices in contract management in order to achieve the desired procurement outcomes over the acquisition life cycle;
    • 4.9.6In collaboration with contracting authorities, providing a justification for using any of the exceptions to soliciting bids in the Government Contracts Regulations.
  • 4.10Contracting authorities are responsible for the following:
    • 4.10.1Where applicable, ensuring that accurate and comprehensive procurement records are created and maintained on the contract file to facilitate management oversight and audit, including but not limited to:
      • 4.10.1.1A description of the requirement, the rationale for the procurement strategy options and the identification of decision-makers involved;
      • 4.10.1.2A record of individual assessments, consensus evaluation, relevant decisions, approvals, communications and dates;
      • 4.10.1.3Justification for using limited tendering, in accordance with each applicable trade agreement;
      • 4.10.1.4Documentation of risk management strategies, financial assessments and ongoing price validations throughout the procurement;
      • 4.10.1.5Any records related to the limitation of contractor liability or indemnification regardless of the dollar value of the contract;
      • 4.10.1.6Documentation of any criteria, considerations or plans that leverage procurement to provide socio-economic and environmental benefits, including any additional known costs and planned outcomes;
      • 4.10.1.7Justification for contracting with a former public servant that includes price substantiation, risk mitigation and cost control measures to adjust for pension or lump-sum payments;
    • 4.10.2Including a condition in complex procurements that prohibits the contractor from supplying goods to the government of Canada that is subject to economic sanctions imposed under the United Nations Act, the Special Economic Measures Act, or the Justice for Victims of Corrupt Foreign Officials Act and listed in Appendix D: Requirements Included in Other Policies, Programs and Agreements That Impact Procurements, section D.4 (International sanctions), subsection D.4.2;
    • 4.10.3Ensuring that the roles and responsibilities of stakeholders involved throughout the procurement process are well-defined and clearly communicated;
    • 4.10.4In collaboration with business owners, documenting contractor performance issues as they occur, in accordance with the escalation guidance;
    • 4.10.5Monitoring and managing the procurement risks identified in the planning stage and ensuring that updates are made to reflect evolving risks throughout the procurement process;
    • 4.10.6Seeking approval from the financial delegation holder prior to extending the duration of a contract or amending a contract where there is a financial impact throughout the procurement life cycle;
    • 4.10.7In collaboration with business owners, assessing whether to extend or re-solicit expiring long-term contracts or contractual arrangements at least two years in advance of their expiry; and
    • 4.10.8In consultation with legal services, ensuring that the contract includes appropriate cancellation or termination clauses, such as clauses that permit cancellation or termination at critical life-cycle stages for complex procurements.

Financial interests of the Crown

  • 4.11Contracting authorities are responsible for the following:
    • 4.11.1Considering whether to obtain a financial security from bidders and contractors that is commensurate with the risks involved, including the risk of a contractor’s failure or inability to perform the work under a contract;
    • 4.11.2Taking into account the standard industry practices in evaluating the type of financial security;
    • 4.11.3Ensuring that any company selected to provide that financial security is licensed to provide it in the jurisdiction of the eventual contract, in accordance with the Guidance on Source Lists of Companies Licensed to Provide Surety Within Canada;
    • 4.11.4In collaboration with business owners, ensuring that any financial security held by the Crown is redeemed, where appropriate, when a contractor or a bidder defaults on their obligations;
    • 4.11.5Including options for an exit strategy at key milestones, gates or phases, and monitoring that payment milestones are not missed to avoid additional costs to the Crown; and
    • 4.11.6Where there is knowledge of an insolvency and impending or actual bankruptcy of a contractor or bidder, ensuring that any proposed action by a business owner will not prejudice the Crown’s legal position, particularly when the bankrupt contractor resides outside Canada, and that any action taken be in accordance with the bankruptcy laws of the respective foreign country.

Limitation of contractor liability and indemnification

  • 4.12Business owners are responsible for the following:
    • 4.12.1Ensuring that a risk assessment is completed and consulting with key departmental stakeholders including legal services as appropriate prior to initiating a request to limit contractor liability and indemnification;
    • 4.12.2Assuming responsibility for procurement litigation costs, including in situations where the procurement is carried out on their behalf by a contracting authority and where responsibility for such costs has not been otherwise allocated.
  • 4.13Contracting authorities are responsible for the following:
    • 4.13.1Ensuring that the contract allows for each party to accept responsibility for risks under their control that they can manage or mitigate in accordance with authorities set out in Appendix B: Mandatory Procedures for Limitation of Contractor Liability and Indemnification in Contracts;
    • 4.13.2Advising business owners on the recommended strategy for limiting contractor liability, where applicable, in accordance with Appendix B: Mandatory Procedures for Limitation of Contractor Liability and Indemnification in Contracts;
    • 4.13.3Communicating the commodity groupings that they create in accordance with Appendix B: Mandatory Procedures for Limitation of Contractor Liability and Indemnification in Contracts, subsection B.1.2.1.2, and their associated financial caps, risk assessment and clauses to Public Services and Procurement Canada for publication and dissemination.

Official languages

Data management, reporting and disclosure

  • 4.15Contracting authorities are responsible for the following:
    • 4.15.1Collecting and publishing procurement data in accordance with the departmental procurement management framework; and
    • 4.15.2Ensuring that contracts comply with all applicable government-wide reporting requirements set out in legislation, policy, trade agreements, or other obligations in accordance with Appendix C: Mandatory Procedures for the Disclosure of Contracts and Reporting; this includes:
      • 4.15.2.1Ensuring that the information and data, including lessons learned from other procurements, are available to all key stakeholders and enable senior designated officials to make informed procurement recommendations and decisions.

Debriefings and disputes resolution

  • 4.16Contracting authorities are responsible for the following:
    • 4.16.1Ensuring that procurement documents outline dispute resolution procedures for bids and contracts;
    • 4.16.2Providing bidders with information on available alternative processes for dispute resolution, including but not limited to negotiation, mediation and arbitration, prior to awarding the contract;
    • 4.16.3Ensuring that bidders who request a debriefing receive one in a timely manner after a contract has been awarded; and
    • 4.16.4Dealing with bidder and contractor disputes fairly and promptly.

Disclosure of wrongdoing

  • 4.17Business owners and contracting authorities are responsible for the following:
    • 4.17.1Protecting government spending from fraud, corruption, unethical business practices and collusive behaviour;
    • 4.17.2Escalating and sharing information on potential wrongdoing regarding procurements and contractual arrangements; and
    • 4.17.3Making every reasonable effort to ensure that no direct benefits accrue to anyone who has an interest in the procurement or in the awarding of a contract to a successful bidder.

5. Roles of other government organizations

  • 5.1This section identifies the roles of other key government organizations in relation to this directive. In and of itself, this section does not confer any authority.
  • 5.2Public Services and Procurement Canada is a common service provider and is responsible for the following:
    • 5.2.1Planning and organizing the provision of materiel and related services to departments and the acquisition of goods, services and construction for departments in accordance with section 6 of the Department of Public Works and Government Services Act;
    • 5.2.2Investigating and developing services for increasing the efficiency and economy of the federal public administration and for enhancing integrity and efficiency in the contracting process in accordance with section 7 of the Department of Public Works and Government Services Act;
    • 5.2.3 Procuring goods for the use of any department, except to the extent that the Minister of Public Services and Procurement Canada delegates the powers to another Minister, as stated in section 9 of the Department of Public Works and Government Services Act;
    • 5.2.4 Acquiring defence supplies and constructing defence projects as defined in the Defence Production Act with the exception of defence projects constructed by employees of Her Majesty, or purchasing defence supplies or constructing defence projects that the Minister of Public Services and Procurement Canada requests that another Minister undertake;
    • 5.2.5 Developing operational tools to support procurement undertaken on behalf of other government departments, such as guidance, templates, standard contract clauses, and an electronic tendering system (where appropriate, these tools will be made available to the procurement community);
    • 5.2.6Providing advice on:
      • 5.2.6.1Methods and support approaches for early engagement with industry;
      • 5.2.6.2Procurement strategies and industry barrier reduction;
    • 5.2.7Administering the Directive on Government Contracts, Including Real Property Leases, in the Nunavut Settlement Area, in collaboration with the Treasury Board of Canada Secretariat and Indigenous Services Canada; and
    • 5.2.8Advising contracting authorities and business owners on federal procurement activities in Comprehensive Land Claim Settlement Areas.
  • 5.3Shared Services Canada is a common service provider and is responsible for the following:
    • 5.3.1Providing services related to email, data centres, networks and end-user information technology to federal department and agencies; and
    • 5.3.2Planning, organizing, and acquiring related goods and services pursuant to section 7 of the Shared Services Canada Act.
  • 5.4The Canadian International Trade Tribunal is responsible for the following:
    • 5.4.1Conducting enquiries into complaints by potential suppliers regarding procurement processes for covered goods and services that are valued above the monetary thresholds set out in the applicable trade agreements;
    • 5.4.2Determining the merits of complaints, including whether procurement processes comply with the requirements of the trade agreements, and awarding a complainant reasonable costs incurred in relation to a complaint where appropriate; and
    • 5.4.3Recommending remedies to complaints, which may include the re-solicitation of the designated contract and the payment of damages.
  • 5.5Employment and Social Development Canada is responsible for the following:
  • 5.6The Office of the Procurement Ombudsman is responsible for the following:
    • 5.6.1Reviewing the procurement practices of organizations to assess their fairness, openness and transparency, and making recommendations for improvements;
    • 5.6.2Reviewing complaints from suppliers about the awarding of contracts that are valued below the monetary thresholds set out in applicable trade agreements; and
    • 5.6.3 Ensuring that an alternative dispute resolution process is provided, at the request of each party to the contract, for disputes related to the interpretation or application of a contract’s terms and conditions.
  • 5.7Global Affairs Canada is responsible for the following:
    • 5.7.1In consultation with other government departments, agencies and Crown corporations, negotiating international trade agreements that include government procurement obligations; and
    • 5.7.2Procuring goods, services and construction in support of diplomatic and consular missions, and other departments and agencies operating outside Canada.
  • 5.8Indigenous Services Canada is responsible for the following:
  • 5.9Innovation, Science and Economic Development Canada is responsible for the following:
  • 5.10Crown-Indigenous Relations and Northern Affairs Canada is responsible for the following:
    • 5.10.1Negotiating and implementing Modern Treaties (Comprehensive Land Claims Agreements and Self-Government Agreements), most of which contain chapters that may have a potential impact on federal procurement activities;
    • 5.10.2Leading consultations with the Designated Inuit Organization about the development and maintenance of the Directive on Government Contracts, Including Real Property Leases, in the Nunavut Settlement Area and the development of any amendments; and
    • 5.10.3Advising on duty to consult.
  • 5.11Department of Justice Canada is responsible for the following:
    • 5.11.1Procuring the services of arbitrators, mediators, experts, court reporters, stenographers, interpreters, translators, and other professionals where ordered by the court, mandated by court rules, or where agreement with adversarial parties is required in matters that may result in the commencement of legal proceedings or where legal proceedings have already commenced involving the Attorney General of Canada; and
    • 5.11.2The Government Contracts Regulations, which require that contracts for the performance of legal services may be entered into only by or under the authority of the Minister of Justice; this requirement does not apply to contracting authorities included in the schedule to the Government Contracts Regulations.
  • 5.12Natural Resources Canada is responsible for the following:
    • 5.12.1Assisting federal government departments under the NRCan Greening Government Services to improve the energy efficiency of their facilities without compromising the work environment of employees.
  • 5.13The Canada Revenue Agency (CRA) is responsible for the following:
    • 5.13.1Administering Canadian income tax and commodity tax (for example the Goods and Services Tax (GST) and Harmonized Sales Tax (HST)) legislation and regulations, and the related CRA policies and procedures, including with respect to:

6. Application

  • 6.1This directive applies to the organizations described in section 6 of the Policy on the Planning and Management of Investments.
  • 6.2This directive applies to all Government of Canada procurements as defined in the Policy on the Planning and Management of Investments.
  • 6.3This directive applies to all departments listed in Schedules I, I.1 and II of the Financial Administration Act (with the exception of the Canada Revenue Agency) and to any commissions established pursuant to the Inquiries Act and designated as a department for the purposes of the Financial Administration Act.
  • 6.4 Senior designated officials of the organizations specified in subsection 6.3 are solely responsible for monitoring and ensuring compliance with this directive within their respective organizations.
  • 6.5The following transactions are not covered in this directive:
    • 6.5.1 Revenue-producing contracts (sales and concession contracts, leases of Crown property) and the like;
    • 6.5.2 Contracts related to the acquisition of land (which are covered by separate statutes and regulations);
    • 6.5.3 The transfer without payment of goods, services or real property between departments, Crown corporations, provinces, municipalities and the territories;
    • 6.5.4 Grants and contributions and other transfer payments;
    • 6.5.5 Shared cost programs in which the Government of Canada is not the contracting authority;
    • 6.5.6 Any contract not funded by Parliament in which the Government of Canada acts as an agent for other parties;
    • 6.5.7 Leases and contracts for the fit-up of an office or residential accommodation pursuant to the Federal Real Property and Federal Immovables Act and its regulations; and
    • 6.5.8 Interchange Canada agreements.
  • 6.6Agents of Parliament:
    • 6.6.1 The following organizations are considered Agents of Parliament for the purposes of the directive:
      • Office of the Auditor General of Canada
      • Office of the Chief Electoral Officer
      • Office of the Commissioner of Lobbying of Canada
      • Office of the Commissioner of Official Languages
      • Office of the Information Commissioner of Canada
      • Office of the Privacy Commissioner of Canada
      • Office of the Public Sector Integrity Commissioner of Canada
    • 6.6.2With regard to Agents of Parliament, the following do not apply:
      • 6.6.2.1Subsections 4.1.4 (supporting government-wide tools), 4.3.4.11 (use of common service providers) and 4.5.1 (solicitation);
      • 6.6.2.2 All requirements to obtain approval from a Minister, the Treasury Board, or the Treasury Board of Canada Secretariat:
        • Subsection 4.2.9 (leveraging procurement for socio-economic benefits),
        • Subsection 4.6 (Contracting approvals), and
        • Appendix A: Contracting Approvals in its entirety;
      • 6.6.2.3Appendix B: Mandatory Procedures for Limitation of Contractor Liability and Indemnification in Contracts in its entirety;
      • 6.6.2.4Appendix C: Mandatory Procedures for the Disclosure of Contracts and Reporting, the requirement to use common service providers;
      • 6.6.2.5The requirement to use the Department of Justice Canada for legal services contracts; and
      • 6.6.2.6 The application of the Treasury Board of Canada Secretariat’s role in ensuring compliance with this directive;
    • 6.6.3In the event that any policy, procedure, process, guidance or best practice conflicts with a requirement or impedes on an Agent of Parliament’s independence or authority, the Agent of Parliament will have full discretion to make a determination of the applicability of the requirement.
  • 6.7 In the event of a conflict between a requirement in this directive and a requirement in any other departmental policy instrument for procurement management, with the exception of the Directive on Government Contracts, Including Real Property Leases, in the Nunavut Settlement Area, the requirement in the Directive on the Management of Procurement will apply. In the event of a conflict between a requirement in this directive and a legal obligation, including an obligation under a modern treaty, the legal obligation will apply.

7. References

The following instruments should be read in conjunction with this directive. While these instruments are considered most relevant to departments’ ability to comply with the requirements in this directive, the list should not be considered exhaustive.

8. Enquiries


Appendix A: Contracting Approvals

This appendix is mandatory as prescribed by the Treasury Board. It applies to contracting authorities as defined in the Government Contracts Regulations with the exception of contracting authorities in the Schedule to the Regulations and Commissions created pursuant to the Inquiries Act.

For the purposes of Appendix A: Contracting Approvals, the term “competitive” includes the publishing of an advance contract award notice.

A.1 Basic contracting limits

A contract or contractual arrangement may be entered into without the approval of the Treasury Board, if the amount payable, including all applicable taxes, fees and amendments, does not exceed the stated limit in Canadian dollars for the contracting authority identified in the basic limits schedules.

Contracting authority is subject to ministerial delegation and, except for delegations provided by common service providers, may not be delegated between ministers.

When an exceptional limit is lower than the basic limit for its corresponding schedule, the exceptional limit applies.

The tables below are subject to Public Services and Procurement Canada and Shared Services Canada delegation of goods, as applicable.

Thresholds for contracting in the Government Contracts Regulations and in trade agreements must be adhered to, where applicable.

Schedule 1: Construction
Department Competitive Non-competitive
Public Services and Procurement Canada $75,000,000 $1,250,000
All other departments $750,000 $100,000
Schedule 2: Goods
Department Competitive Non-competitive
Public Services and Procurement Canada $75,000,000 $3,750,000
Shared Services Canada $75,000,000 $3,750,000
National Defence $7,500,000 $375,000
All other departments $750,000 $100,000
Schedule 2A: Specialized goods
Department Commodity Competitive Notes
Public Services and Procurement Canada Bulk fuel $75,000,000 Applies to call-ups against a standing offer established by Public Services and Procurement Canada
All other departments Bulk fuel $10,000,000
Schedule 3: Services
Department Competitive Non-competitive
Public Services and Procurement Canada $37,500,000 $5,750,000
Shared Services Canada

$37,500,000

$5,750,000

National Defence $7,500,000 $375,000
Transport Canada $7,500,000 $250,000
Fisheries and Oceans Canada $7,500,000 $200,000
All other departments $3,750,000 $200,000

Schedule 3A: Specialized services
Commodity Department Competitive Non-competitive Notes
Architectural and engineering services Public Services and Procurement Canada $7,500,000 $200,000 Where the Treasury Board has approved an increased amount of a competitive architectural and engineering services contract, the contract amounts stated can be amended by $250,000 for competitive contracts and $100,000 for non-competitive contracts.
All other departments $60,000 $60,000 n/a
Transportation
services from common carriers
All departments Unlimited n/a Rates charged must not exceed the normal rates for such services.
Energy services All departments $25,000,000 $25,000,000 Applies to service contracts issued pursuant to the Natural Resources Canada Federal Building Initiative for the acquisition of energy supply, energy efficiency improvements, energy management services, and energy management monitoring and training. Each custodian’s first energy management contract over $1,000,000 must be submitted for Treasury Board approval.
Regulated services All departments n/a Unlimited Services must be at regulated prices or at prices accepted by a regulatory mechanism, including electricity, gas, water, sewage disposal, heat, postage and telecommunications, and the contract does not involve negotiated installation or capital charges in excess of $200,000. Includes services with a railway, telegraph, telephone, or power company for permission to attach wires to poles belonging to the company. Rates or amounts must not exceed those normally charged.
Deregulated services Public Services and Procurement Canada $300,000,000* n/a *Applies to non-regulated telecommunications services. Deregulated telecommunications services are defined as services that are not regulated by the Canadian Radio-Television and Telecommunications Commission (CRTC).
Applies to services for procurement of electricity or natural gas. Services include deregulated portions, at rates or in amounts no greater than those normally charged.
$100,000,000 n/a
Shared Services Canada $300,000,000* n/a
National Defence $20,000,000 n/a
National Research Council Canada $20,000,000 n/a
All other departments $5,000,000 n/a
Schedule 4: Contractual arrangements
Department All commodities
Public Services and Procurement Canada $25,000,000
All other departments $500,000

A.2 Exceptional contracting limits: applicable to specific departments

In addition to the requirements of section A.1 (Basic contracting limits), Treasury Board approval is required when the Minister (or their delegated authority) enters into a contract (or contractual arrangement when stated) above the specified limit for the departments listed below, including all applicable taxes, fees and amendments, unless otherwise indicated.

When an exceptional limit is different from the basic contracting limit for its corresponding schedule, the exceptional limit applies.

The limits below are subject to the Public Services and Procurement Canada and Shared Services Canada delegation of goods as applicable.

Agriculture and Agri-Food Canada

Exceptional limits previously approved for the Minister responsible for Agriculture Canada:

Related to the Prairie Farm Rehabilitation Act:

  • Competitive architectural and engineering services contract up to $600,000
  • Non-competitive architectural and engineering services contract related to buildings or public works up to $100,000

Canadian Food Inspection Agency

  • Competitive construction contract up to $1,500,000
  • Architectural and engineering services contract up to $150,000

Canadian Security Intelligence Service

  • Competitive and non-competitive goods or services contract up to an amount approved by the Treasury Board to support sensitive operations

Correctional Service Canada

  • Non-competitive contract for provision of educational and health care services for inmates, and for the provision of residential and non-residential after-care services to conditionally released offenders up to $600,000

Until October 26, 2022:

  • Competitive health and social services contract up to $6,000,000
  • Non-competitive contractual arrangement with governmental and quasi-governmental entities, such as hospitals, universities and colleges, up to $5,000,000
  • Agreements for the statutory authority as per section 16 and section 81 of the Corrections and Conditional Release Act for which the Correctional Service Canada has, andwhere the total value over five years does not exceed $25,000,000

Crown-Indigenous Relations and Northern Affairs Canada

Exceptional limits previously approved for the Minister responsible for Indigenous and Northern Affairs Canada:

Until July 31, 2021:

  • Non-competitive contract for the services of federal negotiators/representatives for claims, litigation and self-government negotiations up to $2,000,000 per contract with:
    • entry-level limit up to $550,000
    • amendments up to $500,000 in a 12-month period, and
    • professional services up to $300,000
  • Non-competitive contract for the services of Crown deponents and expert witnesses for litigation up to $800,000
  • Non-competitive contract for the services of Crown deponents and expert witnesses for litigation who are former federal public servants in receipt of a pension, up to $225,000
  • Amend contract with federal negotiators/representatives that were entered into under the exceptional contracting limits to extend the period of the explicit indemnification provisions

Indigenous Services Canada

Exceptional limit previously approved for the Minister responsible for National Health and Welfare:

  • Until July 31, 2021, non-competitive health care services contract to Canadian Indigenous peoples and Inuit up to $3,000,000

Environment and Climate Change Canada

Exceptional limits previously approved for the Minister responsible for the Department of the Environment:

  • Non-competitive services contract for research and technology development in water and waste pollution control in support of federal programs up to $750,000

Fisheries and Oceans Canada

  • From March 31, 2020 to March 31, 2022, non-competitive services contract for the Salmonid Enhancement Program, for activities related to the joint response to the 2019 Big Bar Landslide in British Columbia, up to $1,000,000.
  • Competitive architectural and engineering services contract for the salmonid fish hatchery facilities up to $600,000
  • Non-competitive architectural and engineering services contract for the salmonid fish hatchery facilities up to $100,000
  • Until March 31, 2023, for the Small Craft Harbour program:
    • competitive construction contract up to $2,000,000
    • competitive architectural and engineering services contract up to $350,000

Global Affairs Canada

Until October 19, 2022, unless otherwise stated:

Exceptional limits previously approved for the Minister responsible for International Development:

  • Competitive services or construction contract for an international development assistance program or project, or to approve a recipient country’s entry into such a contract up to $30,000,000
  • Approve a recipient country’s entry into a goods contract for:
    • competitive contract up to $8,000,000
    • non-competitive contract up to $2,000,000

Exceptional limits previously approved for the Minister responsible for Foreign Affairs, Trade and Development:

  • Competitive construction contract for facilities up to:
    • $1,500,000 for staff quarters
    • $4,500,000 for an official residence
    • $15,000,000 for a chancery
    • $15,000,000 for multiple-unit facilities
  • Architectural and engineering services for:
    • competitive contract up to $2,000,000
    • non-competitive contract up to $150,000
  • Non-competitive services contract in support of an official visit to a foreign country by the Prime Minister of Canada and/or the Governor General of Canada up to $900,000
  • Competitive security services contract for the purpose of Canadian missions abroad up to $10,000,000

Exceptional limits approved for the Minister of Foreign Affairs:

  • Until June 6, 2023, under the Weapons Threat Reduction Program, for international support or assistance for:
    • competitive and non-competitive construction contract up to $5,000,000
    • competitive and non-competitive goods contract up to $6,500,000
    • non-competitive services contract up to $2,000,000

Library and Archives Canada

  • Non-competitive goods contract for historical material, books and other publications up to $150,000

National Defence

  • Acquire logistics support, supplies and services from states allied or associated with Canada under a mutual logistic support arrangement during the execution of combined exercises, training, deployments, operations, or other cooperative efforts, provided all related transactions are executed within the approved resource envelope for the activity being supported and subject to a request and authorization from the Minister of Public Services and Procurement Canada when required. Logistic support, supplies and services are specifically defined as food, water billeting, transportation (including airlift), petroleum, oils, lubricants, clothing, communications services, medical services, ammunition, base support (and construction incident to base operations support), storage services, use of facilities, training services, spare parts and components, repair and maintenance services, calibration services, port and airport services, and the temporary use of general-purpose vehicles and other non-lethal items of military equipment to the extent that such use is permitted under the national laws of the signatories.
  • Non-competitive test and evaluation services against contractual arrangements with allied states up to $10,000,000
  • From July 1, 2017, to June 30, 2022, for services of transportation of personnel and materiel:
    • competitive contract up to $10,000,000
    • non-competitive contract up to $5,000,000
  • From July 1, 2017, to June 30, 2022, non-competitive services to provide transportation to the Canadian Armed Forces for certain non-domestic requirements against contractual arrangements with the North Atlantic Treaty Organization Support and Procurement Agency up to $10,000,000
  • Non-competitive services contract for flying and glider training for air cadets up to $3,000,000
  • Competitive and non-competitive goods and services contract or contractual arrangement up to an amount that has been approved by the Treasury Board in support of sensitive operations

National Film Board

  • Non-competitive services contract for producer services in the making of films up to $500,000

National Research Council of Canada

  • Contract for publications, renewals, and back sets
  • Competitive construction contract up to $6,000,000 and amendments to such contracts that are over $2,000,000 by up to 10% of the contract amount
  • Competitive architectural and engineering services contract up to $517,500

Office of the Superintendent of Financial Institutions

  • Non-competitive services contract, for urgent and highly confidential investigations of financial institutions as determined by the Minister up to $225,000

Parks Canada

  • Until March 31, 2023, to be applied to all Parks Canada funding sources, in support of capital investments:
    • competitive construction contracts up to $15,000,000
    • competitive architectural and engineering services contracts up to $3,750,000
  • Non-competitive architectural and engineering services contract up to $75,000

Public Services and Procurement Canada

Exceptional limits previously approved for the Minister responsible for the Department of Public Works and Government Services:

  • Goods agreement to supply edible agricultural products as part of a foreign aid program up to $10,000,000 under the following conditions:
    • bids are reasonable under prevailing market conditions, the lowest valid bid is accepted or when necessary to obtain the tonnage demanded, successive lowest valid bids are accepted; or
    • when bids include Freight Aboard Ship multiple ports, the lowest valid bid or, when necessary to obtain the tonnage demanded, successive lowest valid bids that result in the lowest total cost to the recipient country are accepted
  • Competitive and non-competitive agreement up to $5,000,000 to transport by ocean-going vessel any goods for Global Affairs Canada under the following conditions:
    • the price offered is considered by the contracting authority to be reasonable under prevailing market conditions; and
    • the lowest valid bid is accepted or, if it is necessary to accept more than one bid to accommodate the quantity of goods to be shipped, successive lowest valid bids are accepted
  • Services contract for repair and overhaul of military equipment up to $50,000,000
  • Goods contract for ammunition under the Munitions Supply Program up to $50,000,000
  • Goods and/or services contracts and contractual arrangements under the United States Foreign Military Sales Program up to $25,000,000. Note that Public Services and Procurement Canada is authorized to accept the usual terms dealing with indemnity and liability of the Government of the United States for contractual arrangements with that government.
  • Contract with the two selected shipyards for goods and services associated with large ships projects under the National Shipbuilding Strategy up to $115,000,000

Royal Canadian Mounted Police

  • Competitive construction contract up to $11,500,000
  • Architectural and engineering services for:
    • competitive contract up to $1,850,000
    • non-competitive contract up to $150,000
  • For housing and detachment projects:
    • competitive construction contract up to $23,000,000
    • competitive architectural and engineering services contract up to $3,700,000
  • Competitive and non-competitive goods and services contracts or arrangements up to an amount approved by the Treasury Board in support of sensitive operations

Shared Services Canada

  • Until March 31, 2025, the Minister responsible for Shared Services Canada may enter into and amend non-competitive contracts for up to $22.5 million to support IT operations for the GC where IP rights of the supplier prevent the contract from being competed.

A.3 Emergency contracting limits

Emergency contracting limits are supplementary to basic and exceptional limits.

Emergency contracting limits are subject to the goods delegations, including those for emergency provisions where specified, from Public Services and Procurement Canada and Shared Services Canada, as applicable.

  • A.3.1Contracting authorities are responsible for the following:
    • A.3.1.1Entering into or amending a contract or contractual arrangement in response to a pressing emergency where a delay in approval would be injurious to the public interest and when the expected value is up to $1,000,000, including applicable taxes and fees, provided that:
      • A.3.1.1.1the requirement cannot be satisfied by normal contracting procedures due to the urgency of the situation;
      • A.3.1.1.2the urgency provision of each applicable trade agreement has been invoked, or an exemption to applicable trade agreements applies;
      • A.3.1.1.3the Minister (or their delegated authority) approves the use of these special authorities;
      • A.3.1.1.4the most senior contracting authority available enters into the contract or contractual arrangement; and
      • A.3.1.1.5any limitation of liability or indemnification of the contractor is approved by the chief financial officer or the most senior designated official available;
    • A.3.1.2Seeking Treasury Board approval when the Minister (or their delegated authority) enters into or amends a contract or contractual arrangement above the specified limit for the departments listed below, including amendments, applicable taxes and fees.
  • A.3.2Emergency contracting limits: applicable to specific departments

    Department of Fisheries and Oceans

    Non-competitive contract in response to an oil spill up to $10,000,000

    Department of National Defence

    Non-competitive contract for fuel, food, water and transportation services during urgent deployments of Canadian Forces units, under authorized operational orders up to $5,000,000

    Global Affairs Canada

    Emergency limit previously approved for the Minister responsible for the Foreign Affairs:

    Non-competitive services contract related to chanceries or national security-related threats to Canadian missions abroad up to $15,000,000

    Emergency limit previously approved for the Minister responsible for International Development:

    Contract (including starter contracts) that is part of an international development assistance program or project up to $4,000,000

    Office of the Superintendent of Financial Institution Canada

    Until June 13, 2022, non-competitive services contracts in response to pressing emergencies for investigations and monitoring of financial institutions, or in the context of taking control of a financial institution, to act as an agent of the Superintendent up to $4,000,000

    Public Services and Procurement Canada

    Emergency limit previously approved for the Minister responsible for Public Works and Government Services Canada:

    Non-competitive contract on behalf of any department, including Public Services and Procurement Canada, up to $15,000,000

    Shared Services Canada

    Non-competitive contract up to $15,000,000

    All other departments

    Non-competitive or competitive contract up to $1,000,000 in response to a pressing emergency

A.4 Former public servants contract approvals

  • A.4.1Contracting authorities are responsible for the following:
    • A.4.1.1Obtaining the responsible Minister’s approval before entering into a non-competitive service contract with a former public servant:
      • A.4.1.1.1In receipt of a pension under the Public Service Superannuation Act when the estimated total contract exceeds $200,000, including all amendments, applicable taxes and fees, or
      • A.4.1.1.2In receipt of a pension under the Public Service Superannuation Act, when the annualized rate of remuneration exceeds $200,000, including all applicable taxes and fees, and the contract term exceeds 90 working days; or
      • A.4.1.1.3In receipt of a lump-sum payment when the total fees payable will exceed $5,000 during the lump-sum payment period as provided in the Work Force Adjustment Directive made pursuant to the Public Sector Compensation Act; or who are former members of the Canadian Armed Forces and the Royal Canadian Mounted Police in receipt of lump-sum payments through corresponding force reduction programs, regardless of whether one or more than one contract is involved.

A.5 Requesting changes to contracting approval limits

  • A.5.1Senior designated officials are responsible for the following:
    • A.5.1.1Seeking Treasury Board approval for amendments to departmental contracting approval limits supported by a business case that considers operational, financial, organizational, legal and reputational risks and including the following:
      • A.5.1.1.1A description of what the department plans to procure within the proposed contracting approval authority;
      • A.5.1.1.2A description of similar procurements by the department within its current contracting approval authority;
      • A.5.1.1.3The reason for not using a common service provider’s service, if applicable;
      • A.5.1.1.4The planned additional management controls that will be instituted to manage any increased risk, if required;
      • A.5.1.1.5The actions taken to address the recommendations of the most recent audits or reviews;
      • A.5.1.1.6The ratio of the proposed authority to the non-statutory allocation for the department;
      • A.5.1.1.7The expected future use of the proposed authority for procurement that is aligned with the departmental priorities identified in the departmental investment and procurement plans, as appropriate;
      • A.5.1.1.8The trend in the number and value of procurements by the department over the past two to seven years for the goods, services and construction covered by the request;
      • A.5.1.1.9The number and type of projected Treasury Board submissions that would be impacted by the changed authority; and
      • A.5.1.1.10The associated workload and the capacity of the department to undertake additional procurements.

A.6 Standing offers and supply arrangements

  • A.6.1Common service providers must publish and maintain a list of standing offers and supply arrangements that is available to departments.

Mandatory standing offers and supply arrangements

  • A.6.2The use of Public Services and Procurement Canada’s standing offers and supply arrangements is mandatory for the commodity classes listed in Table A6, unless the procurement is subject to a Comprehensive Land Claims Agreement and the mandatory standing offers and supply arrangements does not address the applicable Comprehensive Land Claims Agreement contracting obligations.
Table A6: Commodities for which standing offers and supply arrangements are mandatory
Commodity class code Description
D Information Processing and Related Telecom Services
R Professional, Administrative and Management Support Services
N23 Ground Effect Vehicles, Motor Vehicles, Trailers and Cycles
N58 Telecommunications Equipment and Accessories
N70 General Purpose Automatic Data Processing Equipment (including Firmware), Software, Supplies and Support Equipment
N71 Furniture
N74 Office Machines, Text Processing Systems and Visible Recording Equipment
N75 Office Supplies and Devices
N84 Clothing, Accessories and Insignia
N91 Fuels, Lubricants, Oils and Waxes

Mandatory goods and services

  • A.6.3Public Service and Procurement Canada is responsible for procuring goods and services relating to mission-oriented science and technology requirements in the natural sciences and the human science fields of urban, regional and transportation studies.

Creation or maintenance of mandatory standing offers and supply arrangements

  • A.6.4Common service providers must seek Treasury Board approval for changes to the overall approach used for mandatory commodities.
  • A.6.5Common service providers are responsible for submitting a business case to the Treasury Board of Canada Secretariat for the review and concurrence of changes to the list of mandatory commodities.
  • A.6.6Common service providers are responsible for monitoring and data collection to ensure the relevancy of mandatory commodities in accordance with Appendix C: Mandatory Procedures for the Disclosure of Contracts and Reporting, subsection C.1.2.
  • A.6.7The Treasury Board of Canada Secretariat reserves the right to request a revalidation or review of the current mandatory standing offers and supply arrangements on a set timeframe following the effective date of the Directive on the Management of Procurement.

Appendix B: Mandatory Procedures for Limitation of Contractor Liability and Indemnification in Contracts

B.1 Limitation of contractor liability

  • B.1.1Contracting authorities, in consultation with business owners, are responsible for the following:
    • B.1.1.1Confirming that the contract includes standard legal language that states that each party is responsible for risks under its control and accepts responsibility for risks that it can manage or mitigate;
    • B.1.1.2Where appropriate, remaining silent in the contract by not including limitation of liability or indemnification clauses in the contract and accepting that the determination of liability will be subject to common or civil law;
    • B.1.1.3Using a commodity grouping established and managed by Public Services and Procurement Canada or Shared Services Canada, without seeking Treasury Board approval, provided no changes or substitutions are required to the approved predetermined clauses, risk assessments and financial caps;
    • B.1.1.4In the absence of a viable existing commodity grouping, where appropriate, accepting standard commercial terms and conditions related to the limitation of contractor liability associated with low-risk and low-dollar-value goods and services, including subscriptions, software, mobile applications, cloud services and open source software.
  • B.1.2If there is no existing commodity grouping available for a frequently procured good or service, contracting authorities are responsible for the following:
    • B.1.2.1Ensuring that a risk assessment is undertaken to determine whether there is a substantive transfer of risk from the contractor to the Crown and consulting with legal services prior to pursuing alternatives in the following order:
      • B.1.2.1.1Requesting that Public Services and Procurement Canada, or Shared Services Canada for commodities related to information management or information technology, establish a new commodity grouping or limit a contractor’s first- and third-party liability on their behalf; and
      • B.1.2.1.2In cases where Public Services and Procurement Canada or Shared Services Canada are unable to create the commodity grouping when there is a substantive transfer of risk to the Crown, seeking Treasury Board approval for creating a commodity grouping;
    • B.1.2.2Seeking Treasury Board approval to limit first- and third-party contractor liability or to indemnify the contractor from risks under the contractor’s control.
  • B.1.3Contracting authorities must include the following for all requests for approval, whether the request is to establish a new commodity grouping, to obtain Treasury Board approval to limit first- or third-party contractor liability in the absence of a commodity grouping, or to indemnify the contractor:
    • B.1.3.1The business owner’s risk assessment approved by their chief financial officer and senior designated officials;
    • B.1.3.2The recommended clauses for the limitation of liability or indemnification clauses that have been reviewed by legal services, with supporting documentation;
    • B.1.3.3A record of all consultations with legal services, key stakeholders (where appropriate), Public Services and Procurement Canada, industry, and Shared Services Canada for information management and information technology contracts; and
    • B.1.3.4The recommended financial caps with supporting documentation.

B.2 Common service providers

In accordance with Table B.1: Summary of authorities for limitation of liability and indemnification:

  • B.2.1Public Services and Procurement Canada and Shared Services Canada are authorized to negotiate first- and third-party contractor liability, whether a commodity grouping exists or not, except when there is a substantive transfer of risk or when indemnifying the contractor, in which case they must seek Treasury Board approval.
  • B.2.2Public Services and Procurement Canada and Shared Services Canada are responsible for creating new commodity groupings within their respective mandate; Shared Services Canada is authorized to create commodity groupings for information management and information technology only.
  • B.2.3Public Services and Procurement Canada and Shared Services Canada are responsible for publishing all commodity groupings that they create and manage; Public Services and Procurement Canada is authorized to maintain a repository of all commodity groupings.
  • B.2.4Public Services and Procurement Canada and Shared Services Canada are responsible for reviewing existing commodity groupings that they manage, respectively and in collaboration with each other; for those that are related to information management and information technology, at least once every five years or at the request of senior designated officials, to ensure that the risk assessments, liability clauses and financial caps are appropriate.
Table B.1: Summary of authorities for limitation of liability and indemnification
Risk allocation strategy Without Treasury Board approvaltable 1 note 1 Departments require Treasury Board approval
Public Services and Procurement Canada (PSPC) Shared Services Canada (SSC) All other departments

Table 1 Notes

Table 1 Note *

Notes * Requires an emergency contracting report to Treasury Board of Canada Secretariat within 60 calendar days. CFO stands for chief financial officer.

Return to table 1 note * referrer

Table 1 Note 1

Basic and exceptional limits apply. Subject to the goods delegations, including those for emergency provisions where specified, from Public Services and Procurement Canada and Shared Services Canada, as applicable.

Return to table 1 note 1 referrer

Silence in the contract (not having a specific limitation clause) Yes Yes Yes No
Using an existing commodity grouping Yes Yes Yes No
In the absence of an existing viable commodity grouping, accepting industry standard commercial terms for low risk and low dollar value Yes Yes Yes No
Establishing a commodity grouping Yes Yes No Yes (except PSPC and SSC)
Limiting first-party liabilities Yes Yes No, except in a pressing emergency contracting situation with CFO approvaltable 1 note * Yes (except PSPC and SSC)
Limiting third-party liabilities Yes, only where there is no substantive transfer of risks Yes, only where there is no substantive transfer of risks No, except in a pressing emergency contracting situation with CFO approvaltable 1 note * Yes (including PSPC and SSC where there is a substantive transfer of risks)
Indemnifying contractors from risk within their control No, except in a pressing emergency contracting situation with CFO approvaltable 1 note * No, except in a pressing emergency contracting situation with CFO approvaltable 1 note * No, except in a pressing emergency contracting situation with CFO approvaltable 1 note * Yes (including PSPC and SSC)

Appendix C: Mandatory Procedures for the Disclosure of Contracts and Reporting

In order to support the deputy head in fulfilling disclosure and reporting requirements:

  • C.1Contracting authorities are responsible for the following:
    • C.1.1Ensuring that accurate information and data on contracts are entered in the department’s designated financial and contracting systems of record;
    • C.1.2Reporting to business owners when procuring on their behalf at the time of contract award or amendments by:
      • C.1.2.1Providing a copy of the contract or amendments; and
      • C.1.2.2Reporting the procurement strategy associated with any disclosure of the contract or amendments;
    • C.1.3Ensuring that contracts with former public servants are identified as such in the department’s financial and contracting system.

Reporting requirements for proactive disclosure of contracts

  • C.2Senior designated officials for the management of procurement are responsible for the following:
    • C.2.1Proactively disclosing contract information in accordance with Part 2 of the Access to Information Act;
    • C.2.2Ensuring that the data included in the proactive disclosure reports is materially accurate and complete;
    • C.2.3Ensuring that the contract data elements are reported in the data format prescribed by the Treasury Board of Canada Secretariat;
    • C.2.4Proactively disclosing the following contract information on a website designated by the Treasury Board of Canada Secretariat:
      • C.2.4.1Publishing quarterly, within 30 days after the end of the first three quarters of a fiscal year (April to June, July to September and October to December) and 60 days after the end of the fourth quarter (January to March), each contract entered into by or for the department that is valued over $10,000, positive and negative amendments valued over $10,000, and any positive amendments that modify the initial value of a contract to an amended contract value that is over $10,000; and
      • C.2.4.2Publishing for each calendar year, by May 30th of the following calendar year, the aggregate total value of all contracts valued at $10,000 and under, the aggregate total value of all positive or negative amendments valued at $10,000 and under, and all acquisition card transactions;
    • C.2.5Providing an annual report to Public Services and Procurement Canada and the Treasury Board of Canada Secretariat, by May 30 of the following calendar year, on each contract entered into by or for the department valued at $10,000 and under, and on positive or negative contract amendments valued at $10,000 and under;

    Reporting requirements for Comprehensive Land Claims Agreements

    • C.2.6Providing quarterly reports to fulfill the legal obligations of modern treaties and the policy requirements;
      • C.2.6.1Contacting the Business Development Division of Indigenous Services Canada at aadnc.clcanet.aandc@canada.ca for enquiries on any of the following:
        • C.2.6.1.1How to report on Comprehensive Land Claims Agreements and planned procurements in the Nunavut Settlement Area;
        • C.2.6.1.2Market research and engagement with Inuit firms or the Nunavut Tunngavik Incorporated.

Reporting requirements for trade agreements

  • C.3Public Services and Procurement Canada is responsible for providing contract statistics to the Privy Council Office, Innovation, Science and Economic Development Canada and Global Affairs Canada on procurement contracts awarded by the Government of Canada and federal Crown Corporations to meet the reporting requirements of trade agreements.

Reporting requirements for contracts with former public servants in receipt of a pension under the Public Service Superannuation Act

  • C.4Senior designated officials for the management of procurement are responsible for the following:
    • C.4.1Ensuring that a quarterly report is provided to the Minister on all such contracts; and
    • C.4.2Providing ministers, at the outset of each fiscal year, with an overview of the types of such contracts that may be issued for the year.

Reporting requirements for emergency contracts and contractual arrangements

  • C.5Contracting authorities are responsible for the following:
    • C.5.1Providing a report to the Treasury Board of Canada Secretariat, within 60 calendar days of entering into or amending a contract or contractual arrangement issued in accordance with Appendix A: Contracting Approvals, section A.3 (Emergency contracting limits), that includes:
      • C.5.1.1The justification for the pressing emergency and detailed information about the circumstances of the emergency situation;
      • C.5.1.2The type and total value of the awarded contract;
      • C.5.1.3The reason or reasons why the bidding requirements were not practical or permissible;
      • C.5.1.4The department or agency’s delegated contracting authority level at which the emergency contract entry was approved; and
      • C.5.1.5Information about limitation of liability or indemnification decisions for contracts or contractual arrangements entered without Treasury Board contracting approval regardless of the dollar value, where applicable;
    • C.5.2Ensuring that the context and rationale to support departmental decision-making are well-documented. 

Appendix D: Requirements Included in Other Policies, Programs and Agreements That Impact Procurements

D.1 Modern Treaties including Comprehensive Land Claims Agreements

(Sponsoring department: Crown-Indigenous Relations and Northern Affairs Canada)

  • D.1.1Senior designated officials are responsible for supporting deputy head compliance with reporting obligations by:
    • D.1.1.1Ensuring that the information about contracts entered into, by or for the department, in a Comprehensive Land Claims Area, or that are reserved for Indigenous businesses (including when there have been no such contracts), is accurate and complete, and:
      • D.1.1.1.1Is reported to the Deputy Minister of Indigenous Services Canada within 45 calendar days after each quarter of the fiscal year; and
      • D.1.1.1.2Is reviewed to ensure that it does not include information whose public disclosure would be contrary to the public interest.
  • D.1.2Contracting authorities are responsible for the following:
    • D.1.2.1Developing and maintaining a detailed understanding of the contracting requirements in modern treaties (Comprehensive Land Claims Agreements);
    • D.1.2.2Complying with specific legal obligations related to economic and social development benefits that affect procurements in the geographic areas that are subject to certain modern treaties (Comprehensive Land Claims Agreements), in a manner that recognizes the following:
      • D.1.2.2.1Both trade agreements and modern treaties (Comprehensive Land Claims Agreements) may be relevant to procurements; however, trade agreements do not apply to any measures for Indigenous peoples and businesses, including set-asides for Indigenous businesses;
      • D.1.2.2.2If a modern treaty (Comprehensive Land Claims Agreements) provides a right of first refusal for a procurement, the procurement may not be subject to trade agreements or may be set aside from trade agreements; this does not eliminate the requirement to solicit bids from those designated as having a right of first refusal under a modern treaty;
    • D.1.2.3Determining which obligations apply by consulting the list of Final Agreements relating to Comprehensive Land Claims and Self-Government and the Aboriginal and Treaty Rights Information System relating to potential or established Aboriginal or treaty rights; and
    • D.1.2.4Documenting their assessment of the applicable procurement-related requirements in modern treaty.
  • D.1.3In addition to modern treaties, the Directive on Government Contracts, Including Real Property Leases, in the Nunavut Settlement Area sets out the administrative requirements regarding government contracts and leases in the Nunavut Settlement Area stemming from the obligations in Article 24 of the Nunavut Agreement (Agreement Between the Inuit of the Nunavut Settlement Area and Her Majesty the Queen in Right of Canada).

D.2 Trade agreements

(Responsible departments: Global Affairs Canada for international agreements, and Innovation, Science and Economic Development Canada and the Privy Council Office for the Canadian Free Trade Agreement)

  • D.2.1Contracting authorities are responsible for:
    • D.2.1.1Developing and maintaining an understanding of trade agreements including procedural obligations for the procurement of good, services and construction;
    • D.2.1.2Determining which trade agreements apply to a procurement; and
    • D.2.1.3Consulting the Policy Notices and Treasury Board Circulars–Contracting page for up-to-date information about trade agreements that Canada is party to, including government procurement obligations and current trade agreements thresholds in Canadian funds.

D.3 Federal Contractors Program

(Responsible department: Employment and Social Development Canada)

  • D.3.1Contracting authorities are responsible for the following:
    • D.3.1.1Ensuring that suppliers that have a resident workforce in Canada of 100 or more employees and that are awarded federal contracts of $1,000,000 or more for goods and services comply with employment equity obligations;
    • D.3.1.2Ensuring that a supplier with a resident workforce in Canada of 100 or more employees has a valid agreement to implement employment equity under the Federal Contractors Program before entering into a contract valued at $1,000,000 or more. The list of certified employers is available on the Federal Contractors Program GCpedia page (accessible only on the Government of Canada network);
    • D.3.1.3Ensuring that a supplier who qualifies for the Federal Contractors Program enters into a separate agreement to implement employment equity when bidding on goods and services contracts of $1,000,000 or more, and continues to honour this agreement as an ongoing obligation once contracts are awarded; failure to honour a commitment made to the government under the program or withdrawal from the program can result in the supplier being prevented from being considered for any further federal contracts for goods and services.

D.4 International sanctions

(Responsible department: Global Affairs Canada)

  • D.4.1Persons and companies in Canada are bound by the regulations passed in Canada pursuant to any legislation that imposes economic sanctions against certain foreign countries or entities. Consequently, Canada cannot accept the delivery of goods, services or construction that originate, either directly or indirectly, from countries, entities or persons subject to economic sanctions.
  • D.4.2For the list of countries or groups that are subject to Canadian economic sanctions, refer to current sanctions imposed by Canada.

Appendix E: Definitions

Definitions to be used in the interpretation of this directive can be found in Appendix C of the Policy on the Planning and Management of Investments.

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