Directive on the Management of Procurement

Note to reader

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 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.

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 including mechanisms pertaining to contracts awarded to Indigenous businesses as stated in Appendix E: Mandatory Procedures for Contracts Awarded to Indigenous Businesses;
      • 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 A: 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, refer to Appendix D: Requirements Included in Other Policies, Programs and Agreements That Impact Procurements, section D.1), trade agreements (refer to 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;
      • 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 Proactive Publication of Contract Information and Reporting;
      • 4.1.2.14Integrates respect for human rights, the environment, and social and responsible corporate behaviour into procurements by including measures to identify, mitigate and disclose risk that human trafficking, forced or child labour, or any other unethical business practice is occurring in departmental supply chains;
      • 4.1.2.15Includes a risk-based system of internal controls that are maintained, monitored, and reviewed to provide reasonable assurance that procurement transactions are carried out in accordance with the framework, and applicable laws, regulations, and policies; and
      • 4.1.2.16Includes risk-based internal controls to ensure the accuracy, completeness and timely proactive publishing of information on contracts over $10,000.
    • 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.
    • 4.1.7When the department has awarded per diem–based professional service contracts for business services, informatic services, management consulting services, or temporary help services in the previous fiscal year totaling in excess of $5 million, provide a report to the deputy head twice a year that identifies:
      • 4.1.7.1The total current number of per diem–based professional service resources; and
      • 4.1.7.2The current number of per diem–based professional service resources that have been on contract with the department for a period greater than two years.

Business owners

  • 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 at all times during the procurement process, including but not limited to when engaging with suppliers, evaluating bids, awarding and managing contracts;
    • 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;
      • 4.2.3.3Identifying, mitigating and disclosing occurrences or risk that may have a negative impact on human rights, and environmental and social considerations;
      • 4.2.3.4Developing clear statements of work and technical evaluation criteria; and
      • 4.2.3.5Adhering to Appendix F: Mandatory Procedures for Business Owners When Procuring Professional Services if considering procuring professional services;
    • 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;
      • 4.2.7.4Where appropriate, including human rights considerations throughout the procurement process, to prevent and reduce risks of unethical business practices in markets where risks are the highest, and to ensure that suppliers that do business with the government operate in a socially responsible manner
    • 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;
    • 4.3.9Incorporating the Code of Conduct for Procurement into procurements (refer to Annex D6: Code of Conduct for Procurement).

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; and
      • 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 and bid 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 published; 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 (Emergency contracting limits);
    • 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:
    • 4.10.1Ensuring that accurate and comprehensive procurement records applicable to the contract file are created and maintained 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;
      • 4.10.1.4Justification for using a non-competitive process, in accordance with the Government Contracts Regulations (including the sole source exception invoked, the rationale for its use, and any associated documentation);
      • 4.10.1.5Documentation of risk management strategies, financial assessments and ongoing price validations throughout the procurement;
      • 4.10.1.6Any records related to the limitation of contractor liability or indemnification regardless of the dollar value of the contract;
      • 4.10.1.7Documentation of any criteria, considerations or plans that leverage procurement to provide socio-economic and environmental benefits, including any additional known costs and planned outcomes;
      • 4.10.1.8Justification 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;
      • 4.10.1.9A copy of the duly executed contract or contractual arrangement; and
      • 4.10.1.10The name and title of the individual assigned to the role of business owner.
    • 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; and
    • 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, in collaboration with 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;
    • 4.17.4Requiring that suppliers and subcontracted suppliers of goods and services apply ethical and sustainability standards across their supply chains and adhere to the Code of Conduct for Procurement (refer to Annex D6: Code of Conduct for Procurement).

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.
  • 5.2Department of Justice Canada is responsible for the following:
    • 5.2.1Procuring 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
    • 5.2.2Where the Government Contracts Regulations apply, contracts for 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.
  • 5.3The Canada Revenue Agency (CRA) is responsible for the following:
    • 5.3.1Administering 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:
  • 5.4The Office of the Procurement Ombudsman is responsible for the following:
    • 5.4.1Reviewing the procurement practices of organizations to assess their fairness, openness and transparency, and making recommendations for improvements;
    • 5.4.2Reviewing complaints from suppliers about the awarding of contracts that are valued below the monetary thresholds set out in applicable trade agreements; and
    • 5.4.3Ensuring 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.
  • 5.5The Canadian International Trade Tribunal is responsible for the following:
    • 5.5.1Conducting 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;
    • 5.5.2Determining 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
    • 5.5.3Recommending remedies to complaints, which may include the re-solicitation of the designated contract and the payment of damages.
  • 5.6Public Services and Procurement Canada is a common service provider and is responsible for the following:
    • 5.6.1Planning 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;
    • 5.6.2Investigating 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;
    • 5.6.3Procuring 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;
    • 5.6.4Acquiring 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;
    • 5.6.5Developing 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);
    • 5.6.6Providing advice on:
      • 5.6.6.1Methods and support approaches for early engagement with industry;
      • 5.6.6.2Procurement strategies and industry barrier reduction;
    • 5.6.7Administering 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
    • 5.6.8Advising contracting authorities and business owners on federal procurement activities in Comprehensive Land Claim Settlement Areas; and
    • 5.6.9Administering the Ineligibility and Suspension Policy (see Appendix D.7: Ineligibility and Suspension Policy).
  • 5.7Shared Services Canada is a common service provider and is responsible for the following:
    • 5.7.1Providing services related to email, data centres, networks and end-user information technology to federal departments and agencies; and
    • 5.7.2Planning, organizing, and acquiring related goods and services pursuant to section 7 of the Shared Services Canada Act.
  • 5.8Crown-Indigenous Relations and Northern Affairs Canada is responsible for the following:
    • 5.8.1Negotiating 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;
    • 5.8.2Leading 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
    • 5.8.3Advising on duty to consult.
  • 5.9Employment and Social Development Canada is responsible for the following:
  • 5.10Global Affairs Canada is responsible for the following:
    • 5.10.1In consultation with other government departments, agencies and Crown corporations, negotiating international trade agreements that include government procurement obligations; and
    • 5.10.2Procuring goods, services and construction in support of diplomatic and consular missions, and other departments and agencies operating outside Canada.
  • 5.11Indigenous Services Canada is responsible for the following:
    • 5.11.1Leading and administering the Procurement Strategy for Indigenous Business;
    • 5.11.2Administering the Directive on Government Contracts, Including Real Property Leases, in the Nunavut Settlement Area, in collaboration with the Treasury Board of Canada Secretariat and Public Services and Procurement Canada;
    • 5.11.3Advising on federal procurement activities in Comprehensive Land Claims Settlement Areas; and
    • 5.11.4Monitoring and reporting procurement activities, including quarterly and annual public disclosure of federal contracting activities covered by Modern Treaties (Comprehensive Land Claims Agreements and Self-Government Agreements).
  • 5.12Innovation, Science and Economic Development Canada is responsible for the following:
  • 5.13Natural Resources Canada is responsible for the following:
    • 5.13.1Assisting federal government departments under the NRCan Greening Government Services to improve the energy efficiency of their facilities without compromising the work environment of employees.

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.
  • 6.4Senior 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:
    • 6.5.1Revenue-producing contracts (sales and concession contracts, leases of Crown property) and the like;
    • 6.5.2Contracts related to the acquisition of land (which are covered by separate statutes and regulations);
    • 6.5.3The transfer without payment of goods, services or real property between departments, Crown corporations, provinces, municipalities and the territories;
    • 6.5.4Grants and contributions and other transfer payments;
    • 6.5.5Shared cost programs in which the Government of Canada is not the contracting authority;
    • 6.5.6Any contract not funded by Parliament in which the Government of Canada acts as an agent for other parties;
    • 6.5.7Leases 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
    • 6.5.8Interchange Canada agreements.
  • 6.6Agents of Parliament:
    • 6.6.1The 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 4.3.4.12 (use of Public Services and Procurement Canada acquisition instruments);
      • 6.6.2.2All 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 reporting requirements for emergency contracts and contractual arrangements;
      • 6.6.2.5The requirement to use the Department of Justice Canada for legal services contracts; and
      • 6.6.2.6The 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.
  • 6.7In 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
DepartmentCompetitiveNon-competitive
Public Services and Procurement Canada$75,000,000$1,250,000
All other departments$750,000$100,000
Schedule 2: Goods
DepartmentCompetitiveNon-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
DepartmentCommodityCompetitiveNotes
Public Services and Procurement CanadaBulk fuel$75,000,000Applies to call-ups against a standing offer established by Public Services and Procurement Canada
All other departmentsBulk fuel$10,000,000
Schedule 3: Services
DepartmentCompetitiveNon-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
CommodityDepartmentCompetitiveNon-competitiveNotes
Architectural and engineering servicesPublic Services and Procurement Canada$7,500,000$200,000Where 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$60,000n/a
Transportation
services from common carriers		All departmentsUnlimitedn/aRates charged must not exceed the normal rates for such services.
Energy servicesAll departments$25,000,000$25,000,000Applies 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 servicesAll departmentsn/aUnlimitedServices 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 servicesPublic 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.
$100,000,000n/a
Shared Services Canada$300,000,000*n/a
National Defence$20,000,000n/a
National Research Council Canada$20,000,000n/a
All other departments$5,000,000n/a
Schedule 4: Contractual arrangements
DepartmentAll 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
  • Competitive contracts up to $4,500,000 to implement a Minister’s order under the Health of Animals Act and the Plant Protection Act in response to a threat to Canada’s food safety, animal health or plant health

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
  • 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 set out in section section 16 and section 81 of the Corrections and Conditional Release Act for which the Correctional Service Canada has, and where 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 Crown-Indigenous Relations:

  • Non-competitive contract for the services of federal negotiators and/or representatives for claims, litigation, rights-based negotiations, engagement and co-development processes on policy and legislative initiatives, and implementation of negotiated agreements up to $2,000,000
  • Non-competitive contract for the services of Crown deponents and expert witnesses for litigation up to $800,000
  • Amend contract with federal negotiators and/or representatives that were entered into under the exceptional contracting limits to extend the period of the explicit indemnification provisions

Exceptional limits previously approved for the Minister responsible for Northern Affairs:

  • Non-competitive contract for the services of federal negotiators and/or representatives for claims, litigation, rights-based negotiations, engagement and co-development processes on policy and legislative initiatives, and implementation of negotiated agreements up to $2,000,000
  • Amend contract with federal negotiators and/or representatives that were entered into under the exceptional contracting limits to extend the period of the explicit indemnification provisions

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

  • 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
  • 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

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:
    • $2,250,000 for staff quarters
    • $6,750,000 for an official residence
    • $22,500,000 for a chancery
    • $22,500,000 for multiple-unit facilities
  • Architectural and engineering services for:
    • competitive contract up to $3,000,000
    • non-competitive contract up to $225,000
  • 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 $11,000,000

Exceptional limits approved for the Minister of Foreign Affairs:

  • 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

  • Under the Counter-Terrorism Capacity Building Program (CTCPP) or the Anti-Crime Capacity Building Program (ACCBP), for international support or assistance for:
    • competitive goods contracts up to $1,500,000
    • non-competitive goods contracts up to $750,000
    • non-competitive services contracts up to $1,500,000

Indigenous Services Canada

  • Non-competitive contract for the services of Crown deponents and expert witnesses for litigation up to $800,000
  • Non-competitive contract for the delivery of health care services to Indigenous Peoples in Canada up to $3,000,000

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
  • For services of transportation of personnel and materiel:
    • competitive contract up to $20,000,000
    • non-competitive contract up to $5,000,000
  • 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 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

  • 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:

  • Subject to an approval and any associated conditions set by the President of the Treasury Board, competitive and non-competitive goods and services contracts and contractual arrangements of unlimited value that are part of a response to a sustained emergency of national importance
  • 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 or services contract for ammunition under the Munitions Supply Program up to $50,000,000
  • Goods and services contracts and contractual arrangements under the United States Foreign Military Sales Program up to $50,000,000. 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 three 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

  • Subject to an approval and any associated conditions set by the President of the Treasury Board, competitive and non-competitive goods and services contracts and contractual arrangements of unlimited value that are part of a response to a sustained emergency of national importance
  • Non-competitive contracts for up to $22.5 million to support IT operations for the Government of Canada where IP rights of the supplier prevent the contract from being completed.
  • Until December 31, 2024, non-competitive services contract for interim cloud application hosting services, specifically for Infrastructure-as-a-Service, Platform-as-a-Service, and Software-as-a-Service, under the current Government of Canada Cloud Framework Agreement to support existing IT applications currently hosted in the cloud for up to $26 million.
  • From January 1, 2025 to March 31, 2026, non-competitive services contract for interim cloud application hosting services, specifically for Infrastructure-as-a-Service, Platform-as-a-Service, and Software-as-a-Service, under the current Government of Canada Cloud Framework Agreement to support existing IT applications currently hosted in the cloud for up to $15 million

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 $3,000,000, 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 pressing emergencies caused by actual or potential marine pollution (including, but not limited to, response or prevention actions where there is an impending risk of a marine pollution incident, in relation to incidents involving hazardous vessels, cargo loss, oil spill and Hazardous and Noxious Substances up to $15,000,000

    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

    Non-competitive contract or contractual arrangement in response to major crises abroad (e.g., natural disasters, humanitarian and food crises, conflict, and political upheaval) where a delay would be injurious to the public interest up to $5,000,000

    Non-competitive contract or contractual arrangement related to national security-related threats or in response to major crises abroad affecting the health, safety and security of Canadians, permanent residents and their eligible family members up to $15,000,000

    Non-competitive contract or contractual arrangement related to national security-related threats to chanceries or 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

    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 $25,000,000

    Shared Services Canada

    Non-competitive contract up to $25,000,000

    All other departments

    Non-competitive or competitive contract up to $3,000,000 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 Mandatory goods and services

  • A.6.1Public 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.

A.7 Standing offers and supply arrangements

  • A.7.1Common 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.7.2The use of Public Services and Procurement Canada’s standing offers and supply arrangements is mandatory for the commodity classes listed in Table A7, 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 A7: Commodities for which standing offers and supply arrangements are mandatory
Commodity class codeDescription
DInformation Processing and Related Telecom Services
RProfessional, Administrative and Management Support Services
N23Ground Effect Vehicles, Motor Vehicles, Trailers and Cycles
N58Telecommunications Equipment and Accessories
N70General Purpose Automatic Data Processing Equipment (including Firmware), Software, Supplies and Support Equipment
N71Furniture
N74Office Machines, Text Processing Systems and Visible Recording Equipment
N75Office Supplies and Devices
N84Clothing, Accessories and Insignia
N91Fuels, Lubricants, Oils and Waxes

Creation or maintenance of mandatory standing offers and supply arrangements

  • A.7.3Common service providers must seek Treasury Board approval for changes to the overall approach used for mandatory commodities.
  • A.7.4Common 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.7.5Common 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.7.6The 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 strategyWithout Treasury Board approval table 1 note 1Departments 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)YesYesYesNo
Using an existing commodity groupingYesYesYesNo
In the absence of an existing viable commodity grouping, accepting industry standard commercial terms for low risk and low dollar valueYesYesYesNo
Establishing a commodity groupingYesYesNoYes (except PSPC and SSC)
Limiting first-party liabilitiesYesYesNo, except in a pressing emergency contracting situation with CFO approval table 1 note *Yes (except PSPC and SSC)
Limiting third-party liabilitiesYes, only where there is no substantive transfer of risksYes, only where there is no substantive transfer of risksNo, except in a pressing emergency contracting situation with CFO approval table 1 note *Yes (including PSPC and SSC where there is a substantive transfer of risks)
Indemnifying contractors from risk within their controlNo, except in a pressing emergency contracting situation with CFO approval table 1 note *No, except in a pressing emergency contracting situation with CFO approval table 1 note *No, except in a pressing emergency contracting situation with CFO approval table 1 note *Yes (including PSPC and SSC)

Appendix C: Mandatory Procedures for the Proactive Publication of Contract Information and Reporting

In order to support the deputy head in fulfilling proactive publication of contract information 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 publication of contract information

  • C.2Senior designated officials for the management of procurement are responsible for the following:
    • C.2.1Proactively publishing information on contracts in accordance with Part 2 of the Access to Information Act and any associated policies, directives or guidelines, including the Guide to the Proactive Publication of Contracts;
    • C.2.2Ensuring that the data included in the proactive publication of contract reports is materially accurate and complete;
    • C.2.3Establishing risk-based internal controls to ensure the accuracy, completeness and timely proactive publishing of information on contracts over $10,000;
    • C.2.4Ensuring that the contract data elements are reported as prescribed by the Treasury Board of Canada Secretariat,
    • C.2.5Proactively publishing the following contract information on a website designated by the Treasury Board of Canada Secretariat:
      • C.2.5.1Publishing 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.2.5.2Publishing 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.2.6Providing 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.2.7Providing quarterly reports to fulfill the legal obligations of modern treaties and the policy requirements;
      • C.2.7.1Contacting the Business Development Division of Indigenous Services Canada at aadnc.clcanet.aandc@canada.ca for enquiries on any of the following:
        • C.2.7.1.1How to report on Comprehensive Land Claims Agreements and planned procurements in the Nunavut Settlement Area;
        • C.2.7.1.2Market 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.

D.5 COVID-19 Vaccination Policy for Supplier Personnel

(Responsible department: Public Services and Procurement Canada)

The requirements in this section of Appendix D of the directive come into effect immediately on October 28, 2021.

  • D.5.0Effective June 20, 2022, departments are not required to follow the requirements under paragraphs 5.1, 5.2, and 5.3 of this section of Appendix D.
  • D.5.1Public Services and Procurement Canada is responsible for the following:
    • D.5.1.1Developing, maintaining, and implementing the COVID-19 Vaccination Policy for Supplier Personnel (the Policy), which sets out Public Services and Procurement Canada’s vaccination requirements for supplier personnel who access federal government workplaces;
    • D.5.1.2Developing and maintaining tools, such as guidance, templates and standard acquisition clauses and conditions for use by contracting authorities;
    • D.5.1.3Consulting with the Treasury Board of Canada Secretariat, and where feasible with other departments, on any amendments to the Policy; and
    • D.5.1.4Reassessing the duration of the Policy, which is time-limited to the COVID-19 pandemic, at a minimum of every six months, or as prescribed by the Treasury Board of Canada Secretariat.
  • D.5.2Senior designated officials are responsible for the following:
    • D.5.2.1Implementing the Policy in their department and ensuring the vaccination requirements for supplier personnel under the Policy are implemented in all new and existing solicitations and contracts where, to perform the work, supplier personnel require access to federal government workplaces;
    • D.5.2.2Ensuring that records regarding the application of the Policy are accurate and complete; and
    • D.5.2.3Implementing a control framework for ensuring compliance with the Policy.
  • D.5.3Contracting authorities are responsible for the following:
    • D.5.3.1Adhering to the processes set out in the Policy and implementing the vaccination requirements for supplier personnel in solicitations and contracts;
    • D.5.3.2Documenting the certifications, communications, and decisions regarding the application of the Policy;
    • D.5.3.3Advising the business owner (technical authority) of supplier certifications; and
    • D.5.3.4Reporting data on certifications including as requested by the Treasury Board of Canada Secretariat.

D.6 Code of Conduct for Procurement (Responsible department: Public Services and Procurement Canada)

Canada expects vendors to operate lawfully and to conduct their activities in a socially and environmentally responsible manner by, at a minimum, meeting the expectations set out in the Code of Conduct for Procurement (the Code).

  • D.6.1Public Services and Procurement Canada (PSPC) is responsible for the following:
    • D.6.1.1Developing and maintaining standard acquisition clauses and conditions for use by contracting authorities; and
    • D.6.1.2Developing and maintaining updates to the Code in consultation with the Treasury Board of Canada Secretariat.

D.7 Ineligibility and Suspension Policy (Responsible department: Public Services and Procurement Canada)

Canada has an obligation to protect and safeguard the use and expenditure of public funds, to ensure stewardship and transparency, and to uphold the public trust in relation to Canada’s contracts. Unethical business behaviour undermines fair competition, threatens the integrity of markets, is a barrier to economic growth, increases the cost and risk of doing business, and undermines public confidence in government institutions.

  • D.7.1Public Services and Procurement Canada (PSPC) is responsible for the following:
    • D.7.1.1Developing, administering and maintaining the Ineligibility and Suspension Policy;
    • D.7.1.2Declaring a supplier either ineligible to be, or suspended from being, awarded a contract with Canada in accordance with the Ineligibility and Suspension Policy; and
    • D.7.1.3Negotiating, entering into and maintaining administrative agreements with affected suppliers.

Appendix E: Mandatory Procedures for Contracts Awarded to Indigenous Businesses

The Government of Canada is committed to economic reconciliation with Indigenous peoples and will contribute to improved socio-economic outcomes by increasing opportunities for First Nations, Inuit and Métis businesses through the federal procurement process.

These mandatory procedures describe:

  • procedures to address the Government of Canada’s commitment that a mandatory minimum target of 5% of the total value of contracts is awarded to Indigenous businesses (“5% target”) annually;
  • procedures for:
    • public disclosure of contracts awarded to Indigenous businesses,
    • reporting on procurement planning and performance against the 5% target

Requirements for verifying Indigenous businesses for the purposes of these procedures are available from Indigenous Services Canada: Mandatory minimum 5% Indigenous procurement target (sac-isc.gc.ca).

This commitment also supports the requirements set out in subsection 4.1.3.6 of the Treasury Board Policy on the Planning and Management of Investments to uphold the obligations of the Crown with respect to Indigenous peoples. These obligations include Canada’s procurement obligations arising from multiple comprehensive land claims agreements (CLCAs). In the event of a conflict between a requirement in these mandatory procedures and a legal obligation, including an obligation under a CLCA, the legal obligation will apply.

These procedures should also be read in conjunction with the Treasury Board Directive on Government Contracts, Including Real Property Leases, in the Nunavut Settlement Area. In the event of a conflict between a requirement in these mandatory procedures and a requirement in the Directive on Government Contracts, Including Real Property Leases, in the Nunavut Settlement Area , the requirement in the directive will apply.

Departments are to meet or exceed the 5% target no later than the fiscal year-end of 2024–25, as set out in the schedule prescribed by Indigenous Services Canada for when departments are required to meet the 5% target. This schedule is based on an assessment of departments’ levels of readiness to meet the 5% target using prior departmental procurement plans related to the Procurement Strategy for Indigenous Business.

E.1 Effective date

  • E.1.1These procedures take effect on April 1, 2022.

E.2 Mandatory procedures

  • E.2.1These procedures provide details on the requirements set out in subsection 4.1.2.1 of the Treasury Board Directive on the Management of Procurement for departmental senior designated officials for the management of procurement to establish oversight, planning and reporting mechanisms of departmental procurement management frameworks that support the Government of Canada commitment for a mandatory minimum target for contracts awarded to Indigenous businesses as a proportion of the total value of contracts awarded (“mandatory minimum target”).
  • E.2.2Mandatory procedures are as follows:

    Planning for contracts awarded to Indigenous businesses

    • E.2.2.1Departmental procurement management frameworks are to include oversight, planning and reporting mechanisms that:
      • E.2.2.1.1Examine planned procurements within their organizations to identify opportunities for Indigenous businesses;
      • E.2.2.1.2Respond to Indigenous Services Canada’s annual call letter (refer to subsection E.3.5.2) by submitting a deputy head–approved procurement plan for meeting the mandatory minimum target, including deputy head–approved exceptions, the contents of which are prescribed by Indigenous Services Canada, by March 31 for the following fiscal year, unless otherwise specified by Indigenous Services Canada; and
      • E.2.2.1.3Identify to common service providers, as defined in the Treasury Board Policy on the Planning and Management of Investments, the procurement tools required of them to support achievement of procurement plans for meeting the mandatory minimum target, as appropriate.

    Providing opportunities for Indigenous businesses

    • E.2.2.2Departmental procurement management frameworks are to include oversight, planning and reporting mechanisms that:
      • E.2.2.2.1Support the participation of Indigenous businesses to compete for contract awards;
      • E.2.2.2.2Support the participation of Indigenous businesses to compete for subcontracting arising from a contract;
      • E.2.2.2.3Maintain a process for seeking deputy head–approved exceptions to exclude the value of contracts from the calculation of the mandatory minimum target (refer to subsection E.2.2.3.2.1); such approvals may not be delegated;
      • E.2.2.2.4Maintain a process that requires Indigenous Services Canada’s verification of an Indigenous business in accordance with the Indigenous Business Directory, for the purposes of these procedures;
      • E.2.2.2.5Ensure fulfillment of the requirements of the Procurement Strategy for Indigenous Business; and
      • E.2.2.2.6Ensure the recording of timely, accurate and complete contracting information on contracts awarded to Indigenous businesses in conjunction with Appendix C.2 of this directive and when reporting to Parliament, in the format specified by the Treasury Board of Canada Secretariat and Indigenous Services Canada.

    Reporting on contracts awarded to Indigenous businesses

    • E.2.2.3Departmental procurement management frameworks are to include oversight, planning and reporting mechanisms that ensure the following:
      • E.2.2.3.1The total value of contracts awarded to Indigenous businesses annually is calculated so that:
        • E.2.2.3.1.1The value amount includes the total value of contracts awarded to Indigenous businesses, including contract amendments, during the fiscal year, and includes contracts that were entered into by acquisition cards valued over $10,000;
        • E.2.2.3.1.2The value amount may include the total value of subcontracting to Indigenous businesses that was committed to by non-Indigenous contractors at the time of contract award or contract amendment during the fiscal year; and
        • E.2.2.3.1.3The value amount may include the total value of contracts awarded to Indigenous businesses, including contract amendments, during the fiscal year that were entered into by acquisition cards valued at $10,000 or less;
      • E.2.2.3.2When determining the proportion of contracts awarded to Indigenous businesses:
        • E.2.2.3.2.1The proportion is to be calculated as an amount of the total value of contracts awarded, including contract amendments, during the fiscal year, excluding exceptions that were deputy-approved; this calculation may exclude the total value of contracts awarded, including contract amendments, during the fiscal year that were entered into by acquisition cards valued at $10,000 or less;
      • E.2.2.3.3Calculations in subsections E.2.2.3.1 and E.2.2.3.2 apply to contracts, as defined in the Treasury Board Policy on the Planning and Management of Investments, and the mandatory minimum target is not to be applied to each individual contract;
      • E.2.2.3.4Responses to Indigenous Services Canada’s annual call letter (refer to subsection E.3.5.3) indicate that reports on performance against the mandatory minimum target have been approved by the department’s deputy head and submitted to Indigenous Services Canada within six months after fiscal year-end for the purpose of inclusion in government-wide reporting; such approvals may not be delegated; and
      • E.2.2.3.5Information on departmental performance is validated against the mandatory minimum target and is published within 12 months after fiscal year-end, in coordination with Indigenous Services Canada’s publication on government-wide performance (refer to subsection E.3.5.4).

E.3 Roles of other government organizations

  • E.3.1This section identifies other key government organizations in relation to these mandatory procedures. In and of itself, this section does not confer any authority.
  • E.3.2The Treasury Board of Canada Secretariat is responsible for the following:
    • E.3.2.1Ensuring that government-wide training and guidance are developed and maintained, in collaboration with Indigenous Services Canada, Public Services and Procurement Canada, and the Canada School of Public Service, to support departments in meeting these procedures’ requirements; and
    • E.3.2.2Ensuring that departments’ results achieved are reported to parliamentarians.
  • E.3.3Public Services and Procurement Canada is responsible for the following:
    • E.3.3.1Developing and evolving procurement tools as part of its mandate, including standing offers, supply arrangements, standard clauses and templates, that pertain to the participation of Indigenous businesses; and
    • E.3.3.2Providing guidance to the functional procurement community to support departments in meeting these procedures’ requirements.
  • E.3.4Shared Services Canada is responsible for the following:
    • E.3.4.1Providing services as described in subsection 5.3.1 of the Treasury Board Directive on the Management of Procurement; and
    • E.3.4.2Developing and evolving procurement tools, such as standing offers, supply arrangements, and other tools that pertain to the participation of Indigenous businesses when implementing activities pursuant to section 7 of the Shared Services Canada Act , as described in subsection 5.3.2 of the Treasury Board Directive on the Management of Procurement.
  • E.3.5Indigenous Services Canada is responsible for the following:
    • E.3.5.1Prescribing the schedule for when departments are to meet the mandatory minimum target based on an assessment of departmental level of readiness to meet the mandatory minimum target using prior departmental procurement plans related to the Procurement Strategy for Indigenous Business;
    • E.3.5.2Issuing an annual call letter by the end of the calendar year, unless otherwise specified by Indigenous Services Canada, that requires deputy heads to submit procurement plans for meeting the mandatory minimum target for the following fiscal year;
    • E.3.5.3Issuing an annual call letter by no later than two months after fiscal year-end, unless otherwise specified by Indigenous Services Canada, for deputy heads to submit reports on performance against the mandatory minimum target;
    • E.3.5.4Publishing information on government-wide performance against the mandatory minimum target within 12 months after fiscal year-end;
    • E.3.5.5Implementing and advising on the Procurement Strategy for Indigenous Business; and
    • E.3.5.6Assisting in identifying and building Indigenous business capacity and supporting coordinated government-wide outreach and assistance to Indigenous businesses.
  • E.3.6Common service providers are responsible for the following:
    • E.3.6.1Ensuring that information on contracts awarded to Indigenous business is shared with requisitioning departments no later than three months after fiscal year-end in order to ensure that requisitioning departments report on contracts awarded on their behalf by common service providers.

E.4 Enquiries

For interpretation of any aspect of these mandatory procedures, contact the Treasury Board of Canada Secretariat.

For information regarding the Government of Canada’s Indigenous Business Directory and Procurement Strategy for Indigenous Businesses, contact Indigenous Services Canada at indigenousprocurement@sac-isc.gc.ca.

For information regarding the Government of Canada’s procurement processes and practices, contact Public Services and Procurement Canada at TPSGC.PAApprovisionAutochtone-APIndigenousProc.PWGSC@tpsgc-pwgsc.gc.ca.

For information regarding services provided by Shared Services Canada, contact Shared Services Canada at SSC.pvr-arf.SPC@Canada.ca.

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

  • 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.

Appendix G: 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 and section 2 of the Government Contracts Regulations.