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: 2024-03-27

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This directive replaces:

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The Directive on the Management of Procurement, which took effect on May 13, 2021, replaced the following instruments:

The directive has subsequently been amended:

  • Effective April 1, 2022, to include a new Appendix E: Mandatory Procedures for Contracts Awarded to Indigenous Businesses that describes procedures to address the Government of Canada’s requirement that a minimum of 5% of the total value of contracts is awarded to Indigenous businesses annually;
  • Effective April 1, 2023, to integrate human rights, the environment, social and corporate governance, supply chain transparency principles, and Public Services and Procurement Canada’s Code of Conduct for Procurement into all government procurements;
  • Effective June 30, 2023, to add requirements for risk-based systems of internal control, information management and proactive publication of contracts, and to reflect that the Guidelines on the Proactive Disclosure of Contracts have been updated and renamed Guide to the Proactive Publication of Contracts; and
  • Effective May 29, 2024, to include new requirements related to values and ethics, documentation and reporting, as set out in:
    • Subsections 4.1.7, 4.2.2, 4.2.3.4, 4.2.3.5, 4.3.2.2, 4.10.1.10 9 and 5.6.9
    • Appendix D.7: Ineligibility and Suspension Policy (Responsible department: Public Services and Procurement Canada); and
    • Appendix F: Mandatory Procedures for Business Owners When Procuring Professional Services.
  • The first report to deputy heads from senior designated officials for procurement on professional service resources in their departments (requirement found in subsection 4.1.7) is due no later than September 30, 2024.

Appendix F: Mandatory Procedures for Business Owners When Procuring Professional Service

  • F.1Effective date
    • F.1.1These procedures take effect on September 30, 2024.
  • F.2Procedures
    • F.2.1These procedures provide details on the responsibilities of business owners set out in Section 4: Requirements.
    • F.2.2These procedures apply to all professional service contracts, amendments and task authorizations that exceed $40,000 (including applicable taxes and fees).
    • F.2.3All requirements described in these procedures must be documented by the business owner and provided to the contracting authority, as specified below, to support the procurement file.

      Business decision to procure professional services

      Before initiating a procurement for professional services, business owners are to:

    • F.2.4Consider and document alternative approaches to procurement for achieving organizational goals as well as how the potential procurement approach aligns with their organization’s mandate, priorities and plans, including:
      • Where a procurement of professional services does not align with a resourcing strategy or plan developed in consultation with human resources, confirm with the departmental human resource advisors that the requirements cannot be met through staffing;
      • If the requirement involves digital talent, follow the Mandatory Procedures contained in the Directive on Digital Talent; and
      • Should a lack of salary funding be identified as a rationale for the use of professional services, confirmation should be obtained and documented from the appropriate departmental finance organization that there is an inability to convert operational budget dollars into salary dollars;
    • F.2.5Seek approval, in accordance with governance and accountabilities laid out in the departmental Investment Plan, including but not limited to the departmental:

      Structuring the procurement

    • F.2.6In developing statements of work and descriptions of tasks, business owners are to consider what knowledge is required to be transferred from the contractor to the organization and, if applicable, include such requirements in the contract or task authorization.
    • F.2.7Before awarding any contract or task authorization for a professional service, business owners are to provide contracting authorities with the following:
      • F.2.7.1Clear statements of work or a description of tasks that identify the specific initiative or project that the professional service resource(s) will be supporting; and
      • F.2.7.2Signed confirmation that they have reviewed the contract or task authorization and acknowledge the following:
        • The terms of the contract or task authorization;
        • Their ability to execute their responsibilities in managing the contract or task authorization, its requirements, the performance and the deliverables of the contractor;
        • That they have neither specified nor directed to the contractor which resources or firms should be working under the contract or task authorization;
        • That the contractor did not assist with or have unfair access to any part of the solicitation or evaluation process; and
        • That they do not have any potential, perceived or real conflicts of interest, and that should any develop they will immediately report it as required by the Directive on Conflict of Interest and notify the contracting authority.

      Managing a contract for professional services

    • F.2.8Business owners are to:
      • F.2.8.1Ensure the active monitoring of the day-to-day performance of the work of the contractor, including continued compliance with the security requirements of the contract, as required in the Directive on Security Management;
      • F.2.8.2Report in writing to the contracting authority:
        • Any concerns regarding performance of the contractor; and
        • As soon as they suspect or know that a supplier may not be in compliance with their obligations under the Code of Conduct for Procurement;
      • F.2.8.3Maintain, preserve and provide all documentation to support:
        • The contracting authority to enable accurate and comprehensive procurement records; and
        • The continuity of business owners, as applicable.
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