Directive on the Management of Materiel

These procedures replace the following Treasury Board policy instruments:

• Directive on Fleet Management: Light Duty Vehicles (November 1, 2006)
• Directive on Fleet Management: Executive Vehicles (August 9, 2018)

Mandatory procedures are as follows:

• A.2.3.1

  Materiel management practitioners are responsible for the following:

  Planning

  • A.2.3.1.1Taking appropriate action to identify, assess and minimize risks associated with the acquisition, operation and divestment of vehicles.
  • A.2.3.1.2Ensuring that a mechanism is in place to determine whether ongoing and new operational requirements can be met within the existing fleet or through the use of other options that are financially and environmentally responsible.
  • A.2.3.1.3

    Substantiating the requirement for the acquisition or replacement of government vehicles by:

    • A.2.3.1.3.1Aligning the vehicle’s function with program requirements;
    • A.2.3.1.3.2Assessing the need for a vehicle by taking into consideration the vehicle’s physical condition and financial, operational, environmental and accessibility criteria;
    • A.2.3.1.3.3Rationalizing departmental fleet size;
    • A.2.3.1.3.4Selecting the most appropriate and efficient vehicle class and type, with consideration for vehicle and engine size, that meets operational requirements, and
    • A.2.3.1.3.5Incorporating manufacturers’ production lead times into the planning and replacement cycle for vehicle acquisitions;
  • A.2.3.1.4Establishing internal policies and controls to prioritize the procurement and use of zero-emission (ZEV) vehicles in the light-duty fleet;
  • A.2.3.1.5For departments with a fleet of ten or more vehicles, developing and maintaining a long-term Strategic Fleet Greening Plan approved by the senior designated official that outlines the pathway to achieving the federal government’s targets for a green fleet. This plan must present multi-year costed projections for vehicle purchases, consider operational feasibility, and optimize fleet size and relevant supporting measures, policies or infrastructure. Departments must maintain rolling two-year purchase projections and budgets for vehicles;

  Acquisition

  • A.2.3.1.6In accordance with subsection A.6.1 of Appendix A of the Directive on the Management of Procurement, the use of Public Services and Procurement Canada’s (PSPC’s) standing offers and supply arrangement is mandatory for motor vehicles;
  • A.2.3.1.7Ensuring, when rentals or leases are used, that the classes, engines, options and minimum features are consistent with those contained in PSPC’s established methods of supply;
  • A.2.3.1.8

    When delays are expected in the delivery of a new vehicle or emergencies occur, considering temporary arrangements in the following order:

    • A.2.3.1.8.1Extending the use of the vehicle being replaced;
    • A.2.3.1.8.2Using another departmental vehicle; or
    • A.2.3.1.8.3Using a rental vehicle until the ordered vehicle is delivered by the manufacturer;

  Operation and maintenance

  • A.2.3.1.9Ensuring that government vehicles are used only for authorized government purposes and according to departmental policies;
  • A.2.3.1.10Taking measures to reduce greenhouse gas emissions and modernize the fleet based on government requirements;
  • A.2.3.1.11Purchasing premium fuel only when it is required by the vehicle manufacturer;
  • A.2.3.1.12Ensuring that employees who have access to government land vehicles understand that the Government of Canada self-underwrites the risks associated with the use of such vehicles. As such, there is no requirement to purchase commercial insurance coverage, with the exceptions outlined in subsection A.2.3.1.13;
  • A.2.3.1.13

    Ensuring that appropriate commercial insurance coverage is arranged through PSPC for:

    • A.2.3.1.13.1Land vehicles registered in Canada that are driven in the United States;
    • A.2.3.1.13.2Vehicles used for government programs by operators who are not Crown servants; and
    • A.2.3.1.13.3All executive vehicles;
  • A.2.3.1.14

    Tracking and maintaining required information about the fleet using a fleet management information system and a fleet card, as required. The fleet management system must:

    • A.2.3.1.14.1Capture all mandatory data fields outlined in subsection A.2.3.1.18 through manual entry, automatic population and the collection of data from the fleet card;
    • A.2.3.1.14.2Generate a single, coherent, department-wide view of all vehicle maintenance, operating and repair costs related to fleet management;
    • A.2.3.1.14.3Supply information to support planning and decision-making; and
    • A.2.3.1.14.4Be kept up to date, complete and accurate;
  • A.2.3.1.15

    Using the appropriate designated card for land vehicle fleets, where issued, to:

    • A.2.3.1.15.1Pay for all operations and maintenance expenses of government vehicles registered in Canada; and
    • A.2.3.1.15.2Ensure that expenses paid with a fleet card are limited to those needed for the operations and maintenance of the government vehicle or motorized equipment to which the fleet card is assigned, wherever possible;
  • A.2.3.1.16Reporting to the appropriate authority all expenditures on the operations and maintenance of government vehicles that were made without the use of a fleet card, for input into the fleet management database. Such expenditures include the use of other means of payment made to a vendor who refuses to accept the fleet card for payment; and
  • A.2.3.1.17Ensuring that designated fleet cards are not used to pay for the purchase and installation of decals and equipment add-ons acquired as aftermarket improvements.
  • A.2.3.1.18

    Mandatory data collection fields for fleet land vehicles are as follows:

    Administrative information and identification information

    • Department name (or client code)
    • Program name
    • Ownership (leased or owned)
    • Status of vehicle (active or inactive)
    • Government fleet vehicle number
    • Vehicle identification number (VIN)
    • Associated fleet card number(s)
    • Type of card (vehicle-specific, non-specific, dedicated second card, seasonal)
    • Fleet card on-system date (date that the card is first connected to the fleet information system)
    • Status of card (active or inactive)
    • Card limit
    • Cancellation date of card

    Vehicle tombstone data

    • Model year
    • Make
    • Model
    • Vehicle specification code used by PSPC (if available)
    • Number of cylinders in engine (two digits)
    • Size of engine by litres
    • Transmission: automatic (A) or manual (M) and the number of gears (3, 4 or 5) or variable (V)
    • Fuel type capability of the vehicle and grade requirement (where applicable)
    • Fuel system
    • Licence plate and province or territory
    • Vehicle category and subcategory
    • Assigned status (pooled, driver assigned, etc.)

    Vehicle location and billing information

    • Physical location: street address, city, province/territory and postal code
    • Billing address: street address, city, province/territory and postal code

    Utilization statistics

    • On-road or taken-on-strength date (including leased or rented vehicles)
    • On-system date (if different from taken-on-strength date)
    • Out-of-service or sale date of vehicle
    • Current odometer reading in kilometres
    • Current odometer date
    • Days of use

    Vehicle costing and life-cycle information

    • Capital cost of vehicle
    • Vehicle maintenance and repair costs (for both internal and external maintenance and repair, including warranty work if notified)
    • Vehicle maintenance and repair service dates (for both internal and external maintenance and repair, including warranty work if notified)

    Fuel

    • Bulk or retail fuel or electricity purchase
    • Date of purchase
    • Total units of purchase, by specific fuel type and grade
    • Name and location of supplier or owner of bulk facility, if applicable
    • Unit cost of fuel or electricity purchased
    • Total purchase cost
• A.2.3.2

  In addition to the above requirements, the following requirements apply only to executive fleet vehicles:

  • A.2.3.2.1Executive vehicles are authorized only for ministers and eligible senior officials. Authorized users of executive vehicles are Cabinet ministers, ministers of state, secretaries of state, deputy ministers of the Crown, and eligible senior officials who are entitled to make use of an executive vehicle.
  • A.2.3.2.2

    Eligible senior officials are those who meet all the following requirements:

    • Are Government in Council appointees;
    • Hold a full-time position with a personal classification equivalent to the DM 2 level (GC 9-10 or GCQ 9-10) or above;
    • Are deputy heads; and
    • Occupy the most senior position in the organization.
  • A.2.3.2.3The authorized maximum price limit for executive vehicles is established by the Comptroller General of Canada and communicated annually to PSPC and the Privy Council Office.
  • A.2.3.2.4The actual total price paid for an executive vehicle, excluding taxes and aftermarket equipment or accessories installed in an executive vehicle for reasons of security and efficient government business, must fall within the applicable limit and includes the cost of all factory-installed equipment and accessories and all preparation and delivery charges.
• A.2.3.3

  Authorities and exceptions are as follows:

  • A.2.3.3.1The Comptroller General of Canada has the authority to determine the most appropriate method of procurement for executive vehicles.
  • A.2.3.3.2The Treasury Board must approve exceptions to the authorized maximum price limit, executive vehicle standards and selection of executive vehicles.
• A.2.3.4Ministers, eligible senior officials, and persons related to these authorized users are allowed to make personal use of their assigned executive vehicles when these vehicles are not required for official use.
• A.2.3.5

  Personal use of executive vehicles is considered a taxable benefit under the Income Tax Act and must be reported as income in accordance with the Canada Revenue Agency’s guidance on taxable benefits.

• A.2.3.6The list of authorized executive vehicles is established annually by PSPC based on the Comptroller General of Canada’s authorized maximum price limit. PSPC’s established methods of supply are communicated to the Treasury Board of Canada Secretariat and the Privy Council Office and must be used by organizations when selecting their executive vehicles.
• A.2.3.7As of January 1, 2025, executive vehicle acquisitions must be ZEVs.
• A.2.3.8When transferring a vehicle from the light-duty fleet to the executive fleet, the vehicle must be consistent with the criteria for eligible executive vehicles according to the Directive on the Management of Materiel.
• A.2.3.9An executive vehicle must meet executive business requirements, authorized user needs and, where possible, the personal preference of the authorized user.
• A.2.3.10

  An executive vehicle is eligible for replacement once it has reached six years or 150,000 km. However, the vehicle may be replaced:

  • A.2.3.10.1at any time if a gasoline-powered or hybrid-electric executive vehicle is replaced with a ZEV; or
  • A.2.3.10.2at any time if the vehicle is transferred to the executive fleet of another department; or
  • A.2.3.10.3after three years if the vehicle is transferred to the light-duty fleet, provided there is a documented operational need for the vehicle in the light-duty fleet.
• A.2.3.11Authorized price limits will be reduced by 25% if these conditions are not met.
• A.2.3.12If it is cost-effective, a surplus zero-emission executive vehicle can be transferred to another minister or eligible senior official in the department or agency, or it can be transferred to the departmental fleet.
• A.2.3.13Executive vehicles must not bear external identification markings such as those identified in subsection 3.1 of the Federal Identity Program Manual.

Mandatory procedures are as follows:

• B.2.3.1

  When controlled goods are transferred from Canada or are divested outside Canada, departments must liaise with the following:

  • B.2.3.1.1Global Affairs Canada (GAC) to determine applicable export restrictions and/or additional export requirements; and/or
  • B.2.3.1.2The United States Department of State when goods are subject to the United States International Traffic in Arms Regulations (ITAR), to determine applicable export restrictions and/or other export requirements.
• B.2.3.2

  The senior designated official for the management of materiel, in cooperation with the chief security officer, is responsible for the following:

  Access to controlled goods

  • B.2.3.2.1

    Ensuring that, prior to accessing controlled goods in Canada, a person is registered with the Controlled Goods Program of Public Services and Procurement Canada unless:

    • B.2.3.2.1.1Excluded from registration, for example, the person occupies a position in the federal public administration, including a position in a federal Crown corporation, or is employed by Her Majesty in right of a province, a public officer as defined in subsection 117.07(2) of the Criminal Code, an elected or appointed official of the federal or a provincial government, or a member of a visiting force as defined in section 2 of the Visiting Forces Act, and acts in good faith in the course of their duties and employment (see section 36 of the Defence Production Act and section 1.1 of the Controlled Goods Regulations); or
    • B.2.3.2.1.2Exempted from registration by PSPC upon provision of evidence to the Controlled Goods Program registrant of the individual’s status as a director, an officer or an employee of a person registered to access controlled goods under the ITAR, or an officer, employee or elected or appointed official of the United States federal government or of a state or territorial government of the United States, or an application by the designated official of a registrant (for a temporary worker, international student or visitor) to the Controlled Goods Program;
  • B.2.3.2.2

    Ensuring that the department’s controlled goods are:

    • B.2.3.2.2.1Examined, possessed or transferred only by persons who are excluded, registered or exempted from registration with the Controlled Goods Program; and
    • B.2.3.2.2.2Addressed, as required, in their procurement, divestment and security plans;
  • B.2.3.2.3Ensuring that all federal government personnel in Canada and at Canadian government offices abroad, including personnel deployed overseas, have the appropriate security clearances for accessing controlled goods, and only on an as-required basis;

  Identification of controlled goods

  • B.2.3.2.4

    Identifying and/or defining potential controlled goods by consulting the following to determine whether materiel in their custody is considered controlled goods:

    • The Controlled Goods List in the Schedule to the Defence Production Act;
    • The accompanying Schedule Guide; and
    • GAC’s A Guide to Canada’s Export Controls;
  • B.2.3.2.5

    Consulting the following to determine the Schedule control of materiel that may be considered controlled goods:

    • B.2.3.2.5.1The Controlled Goods List in the Schedule to the Defence Production Act;
    • B.2.3.2.5.2The accompanying Schedule Guide; and
    • B.2.3.2.5.3GAC’s A Guide to Canada’s Export Control;
  • B.2.3.2.6Identifying whether the controlled goods are subject to the controls of other governments, such as the United States ITAR. Departments with controlled goods that are “defense articles” controlled by the ITAR must also adhere to the provisions of the ITAR, including those provisions relating to third-party transfers and re-transfers of United States defense articles; and
  • B.2.3.2.7Directing questions pertaining to the ITAR or to the ITAR control status of goods to the United States Department of State’s Directorate of Defense Trade Controls, Regional Security and Arms Transfers, or other foreign regulatory bodies, as appropriate;

  Security plans, procedures and breaches

  • B.2.3.2.8Developing procedures for proper handling, storage, access, security and responsibility structures for assets determined to be controlled goods, and the reporting and investigation of breaches thereof;
  • B.2.3.2.9

    Establishing and implementing a security plan for each place of business in Canada where controlled goods are kept. This security plan must set out the following in writing:

    • B.2.3.2.9.1The procedures used to control the examination, possession and transfer of controlled goods;
    • B.2.3.2.9.2The procedures for the full demilitarizationof controlled goods;
    • B.2.3.2.9.3The procedures for reporting and investigating security breaches in relation to controlled goods;
    • B.2.3.2.9.4The description of the responsibilities of the department’s security organization and the identity of the individuals who are responsible for the security of controlled goods; and
    • B.2.3.2.9.5The contents of security briefings and training programs given to employees and to registered or exempt contracted workers, as the case may be;
  • B.2.3.2.10Notifying the deputy head or their delegate of any breaches to controlled goods immediately after a security breach has occurred or been discovered; and
  • B.2.3.2.11Providing appropriate awareness training to all employees and contractors on the proper handling, storage, access, security and responsibility structures for controlled goods and breaches thereof;

  Records

  • B.2.3.2.12

    Keeping and maintaining records that contain:

    • B.2.3.2.12.1A description of any controlled goods in their custody, the date of their receipt, any applicable licences or restrictions, and identification of the person from whom they were transferred;
    • B.2.3.2.12.2A description of any controlled goods transferred by the department, the date of their transfer, and the identity and address of the person to whom they were transferred;
    • B.2.3.2.12.3A description of the manner and date of divestment of all controlled goods; and
    • B.2.3.2.12.4A separate description of ITAR “defense articles,” kept for a period of five years from the expiration of the licence or other approval;

  Acquisition

  • B.2.3.2.13Ensuring that, with respect to a procurement process, departments are responsible for determining the potential involvement of controlled goods, including any technical data, as early as possible;
  • B.2.3.2.14In the case of acquisition from Canadian business enterprises, allowing potential bidders or buyers in a procurement process that involves controlled goods sufficient time to seek registration with the Controlled Goods Program; and
  • B.2.3.2.15Ensuring that, where a department retains the services of a third party to aid or participate in the administration of a procurement process that involves controlled goods, that any third party with access to controlled goods is registered or exempted from the Controlled Goods Program and has the approval of any applicable foreign government’s office of primary interest, as appropriate;

  Divestment

  • B.2.3.2.16Ensuring, when divesting of controlled goods domestically, that such goods are transferred only to current registrants of the Controlled Goods Program or entities excluded from Controlled Goods Program registration, or that these items are fully demilitarized before divestiture;
  • B.2.3.2.17When divesting of controlled goods through GCSurplus, it is the responsibility of departments to notify GCSurplus that the items are controlled in order for GCSurplus to follow the appropriate procedures;
  • B.2.3.2.18Ensuring, when divesting of controlled goods through export, that the Export Control List, the Arms Trade Treaty and other applicable international treaties are consulted, end use assurances are provided and that all necessary export permits are obtained from GAC. When controlled goods are sold internationally through GCSurplus, GCSurplus will verify that the appropriate approvals are obtained on behalf of departments;
  • B.2.3.2.19Ensuring that potential bidders or buyers in a divestment process that involves controlled goods have sufficient time to obtain foreign and domestic authorization in the case of foreign business enterprises if their proposals contain reference to transfers, sales, donations, trade-ins or conversion to waste of controlled goods;
  • B.2.3.2.20Ensuring that, when divesting of controlled goods, the item is fully demilitarized unless it is being transferred to a current registrant of the Controlled Goods Program or entities excluded from Controlled Goods Program registration; and
  • B.2.3.2.21Before the divestment, re-transfer or re-export of any ITAR “defense article” to any end-user or destination, determining whether the department needs to obtain written approval from the United States Department of State’s Directorate of Defense Trade Controls or the Office of Regional Security and Arms Transfers, as appropriate. When selling controlled goods through GCSurplus, GCSurplus will verify that the appropriate approvals are obtained.