Chapter 3 - Procurement strategy

3.1 Procurement strategy: introduction

Effective date: 2023-04-20

1. A procurement strategy defines in general terms how a good, service, or construction will be procured, and will include, at the highest level, the determination to proceed competitively or non-competitively and applicable details in support of industrial and regional benefits or other national objectives. The strategy could be quite straightforward, such as the decision to use a standing offer, or could be more detailed, which would be used for major projects.
2. The development of a procurement strategy begins with the first meeting between Public Works and Government Services Canada and the client, and often even before this point. It is the most important step in the procurement process as it influences the scope of the requirement and determines the extent of competition.
3. In developing the procurement strategy, the guiding principles described in 1.10.5 Guiding principles must be taken into consideration. Specifically, the procurement strategy must satisfy the client's operational requirements and comply with legal requirements, while achieving best value, and advancing national objectives.
4. The assessment of pricing considerations, options and potential risks and the alignment of pricing strategy to the procurement strategy is done early on and throughout the acquisition lifecycle. Refer to Sections 1, 2 and 3 of the Practitioner's Guide for Procurement Pricing for more information.

3.1.1 Planning the procurement

Effective date: 2024-04-19

1. A non-exhaustive list of some of the factors that the client and the contracting officer can take into account when developing the procurement strategy are listed as follows:
   1. the method of supply;
   2. total estimated cost including all options, as well as maintenance and storage costs, as applicable;
   3. contract period;
   4. delivery requirements;
   5. the procurement schedule;
   6. evaluation procedures and method of selection;
   7. environmental factors;
   8. commercial products versus customized solutions;
   9. risk factors;
   10. limitation of liability or indemnification;
   11. possible use of a fairness monitor;
   12. the participation of small and medium enterprises;
   13. Indigenous considerations;
   14. accessibility requirements;
   15. other national objectives;
   16. compatibility with existing solutions;
   17. the opportunity to consolidate requirements;
   18. disposal of the product, if applicable, and
   19. renewal (procurement of a replacement good or service and all transfer costs).
2. The contracting officer is required to engage the services of a Price Support Directorate advisor when a procurement presents any of the following characteristics, in accordance with the Directive on the Use of Cost and Price Analysis Services:
   1. Any potential sole-source procurement with a total estimated value of $7,500,000 or more, including applicable taxes, options and amendments.
   2. Any competitive procurement with a total estimated value of $7,500,000 or more, including applicable taxes and options, where only one compliant bid is received.
   3. Any competitive procurement with a total estimated value of $7,500,000 or more, including applicable taxes, with contract provisions for negotiated prices or where prices are likely to be negotiated as a result of a contract amendment.
   4. Any competitive procurement, with a total estimated value of $10,000,000 or more, including applicable taxes, options and amendments.
3. The approval authority must be given the opportunity to approve or reject the proposed procurement strategy as early as possible in the process, to avoid the situation where a contracting officer has done significant work following a strategy which may not be approved.
4. The procurement strategy must identify any deviations to contracting policies.
5. If events during the procurement process result in a significant change in the procurement strategy, a revised procurement plan must be approved before implementation or completion of the procurement process.
6. For related information, see 6.5 Procurement approval documents.

3.1.5 Procurement risk assessments for Complexity Level 1, 2 and 3 procurements

Effective date: 2014-09-25

1. As soon as the key elements of the procurement strategy have been determined, or when it is determined that Treasury Board approval is required, the contracting officer must complete a procurement risk assessment (PRA), prior to preparing an approval document. For further instructions on completing the approval documents refer to section 6.5 Procurement approval documents.
2. The procurement risk assessment process is applied in order to determine the level of risk the Government of Canada is exposed to when entering into contracts. The assessment process also provides the foundation for risk response strategies that will be employed to mitigate procurement risks and provide guidance to the contracting officer when high risks are identified.
3. The PRA process places an emphasis on:
   1. The early assessment of contract risk factors that may put a procurement at risk;
   2. Recording the risks and identifying the response strategies in the approval documents;
   3. Communicating these risks to management and clients, as necessary; and
   4. Ensuring that risks are re-assessed in the procurement when circumstances dictate, as part of monitoring and continuous improvement.
4. At any time during the procurement process, there may be a requirement to re-assess the complexity of the procurement or risk in the procurement because of changing factors in the procurement or its environment. If this occurs, a revised procurement risk assessment must be prepared to determine if any of the risk factors have changed.
5. For Complexity Levels 1 through 3 inclusive, the procurement risk assessments are available on the Procurement Corner page on The Source, Public Works and Government Services Canada's intranet site (accessible only on the Government of Canada network).
6. For Complexity Levels 4 and 5 inclusive, due to the high level of risk and uncertainty associated with these Complexity Levels, the contracting officer must contact the Risk Management Advisory Services (RMAS) who will work with the contracting officer in completing a custom risk assessment specific to the complexities of a Level 4 or 5 procurement.
7. For procurements that fall under Schedule 3 of PWGSC's Common Services Acquisitions Authorities (i.e., within Departmental Authority), contracting officers must identify the risks and the associated risk response measures for those risks identified as medium-high and high. Contracting officers are encouraged to discuss the issues associated with these risks with their supervisor, manager, or RMAS.
8. For procurements that require the approval of Treasury Board, contracting officers must consult RMAS and work collaboratively to ensure that all relevant medium, medium-high and high risks are identified appropriately within the Treasury Board submission document. For more information on seeking Treasury Board approval, refer to section 6.5.15.1 Procurement requiring a Treasury Board submission.
9. When approval is required to issue an amendment, a Procurement Risk Assessment for Amendments (PRAA) must be completed. See Annex 6.4.6 Contract amendment approval instructions for more detail.
10. For more information on the Risk Assessment Framework, see the Acquisition Program Risk Assessment Framework (accessible only on the Government of Canada network).

3.1.10 Addressing identified risks in the approval document

Effective date: 2014-09-25

1. The approval document should contain the following elements:
   1. Risk Statement: This statement describes what risk may occur, the harm it may cause, the likelihood of the harm occurring and the extent (or severity) of its impact.
   2. Risk Response: This describes the action that can be taken to reduce the level of risk. Risk response measures can take the form of risk reduction so that the impact of the risk is lowered. Alternatively, avoidance and prevention measures can also reduce the likelihood of occurrence.
   3. Residual Risk: The residual risk is what remains after risk response measures have been applied. In theory, no risk can be completely eliminated, and so there must be a description of the remaining level of risk involved in the procurement. The level of the residual risk can be a critical factor in determining how to proceed with the procurement because the residual may be at an unacceptable level.
2. A copy of the completed Procurement Risk Assessment (PRA) (see 3.1.5 Procurement risk assessments for Complexity Level 1, 2 and 3 procurements) must accompany the approval document and be kept on file.
3. The approval authority may direct the contracting officer to review the procurement strategy or risk factors; to seek review by Legal Services, Cost Analysts or other subject matter experts; or to repeat the complexity assessment or risk assessment.
4. In cases where the PRA is revised, a copy must be attached to the approval document indicating which version it is and the reason for the revised PRA.

3.1.15 Complex procurement

Effective date: 2014-09-25

With the promulgation PN105R1 - Procurement Complexity Levels, Risk Assessment and Approval Authorities, the content of this section was reviewed and incorporated in sections 3.1.5 Procurement risk assessments for Complexity Level 1, 2 and 3 procurements and 6.5.15.1 Complex procurements requiring a Treasury Board submission.

For reference purposes, section 3.1.15 is available in the Supply Manual Archive, Version 2014-3 (accessible only on the Government of Canada network).

3.5 Existing procurement instruments

Effective date: 2021-12-02

1. Before determining a new method of supply for the requirement, the contracting officer should first ensure that the good or service is not already available from an existing procurement instrument. Clients should be encouraged to use mandatory or non-mandatory standing offers/supply arrangements to satisfy their requirements, whenever possible. A list of standing offers and other instruments is available from the Standing Offers and Supply Arrangements Application (SOSA App). For additional information on SOSA App, refer to 3.205.5 Posting Standing Offer and Supply Arrangement information to the Standing Offers and Supply Arrangements Application (SOSA App).
2. Federal government employees who require additional information or assistance with locating standing offer information can email Buyandsell.gc.ca at the following address: achatsetventes.buyingandselling@tpsgc-pwgsc.gc.ca.
3. Suppliers requiring additional information on standing offers and supply arrangements can contact the Procurement Assistance Canada (PAC) InfoLine at 1-800-811-1148, or by email at: SAC-PAC-Client@tpsgc-pwgsc.gc.ca.

3.5.1 Mandatory standing offers and supply arrangements

Effective date: 2022-05-12

1. Public Works and Government Services Canada (PWGSC) has put in place a number of standing offers and supply arrangements that must be used before any new procurement is considered in accordance with the Treasury Board ARCHIVED - Policy Notice: Business Transformation Initiative - The Way Forward.
2. The use of standing offers and supply arrangements for the commodity groups listed below is mandatory and these mandatory commodities are listed in the Standing Offers and Supply Arrangements Application (SOSA App) (accessible only on the Government of Canada network).
   • N84: Clothing, Individual Equipment and Insignia
   • N58: Communication, Detection, and Coherent Radiation Equipment
   • N91: Fuels, Lubricants, Oils and Waxes
   • N71: Furniture
   • N70: General Purpose Automatic Data Processing Equipment (Including Firmware), Software, Supplies and Support Equipment
   • N23: Ground Effect Vehicles, Motor Vehicles, Trailers and Cycles
   • D3: Information Processing and Related Telecommunication Services
   • N74: Office Machines, Text Processing Systems and Visible Record Equipment
   • N75: Office Supplies and Devices
   • R: Professional, Administrative and Management Support Services
     Sub-categories:
     • RO: Professional Services
     • R1: Administrative and Management Support Services
     • R2 : Personnel Recruitment
3. These mandatory standing offer and supply arrangements apply to all departments, as defined in Section 2 of the Financial Administration Act, including the Canadian Forces, and to Crown procurement contracts subject to the Government Contracts Regulations and the Treasury Board Directive on the Management of Procurement.
4. Client departments and agencies continue to be able to acquire goods and services as they have in the past. However, they must first verify whether a mandatory standing offer or supply arrangement exists that meets their requirements. If one does, clients must use it.
5. On receipt of a requisition for any goods or services within these identified commodity groups, contracting officers must determine if an existing standing offer or supply arrangement can meet the requirement. If so, that standing offer or supply arrangement must be utilized.
6. The goods or services should not duplicate those already provided under an existing standing offer or supply arrangement at the national or regional level. If the required goods or services are similar, or identical, in nature to goods or services available under existing standing offers or supply arrangements, a full rationale must be provided to justify using another procurement instrument or method of supply. For the process on creating a new standing offer or supply arrangement, see 3.205 Review process for creation, renewal and extension of Standing Offers and Supply Arrangements.
7. It should be pointed out to clients that when they use a mandatory standing offer or supply arrangement (with the exception of Departmental Individual Standing Offers), they can receive the goods or services faster and with less administrative cost than by sending a requisition to PWGSC. The value of the acquisition will be limited to their Treasury Board Secretariat delegated purchasing authorities.
8. Mandatory procurement instruments, such as standing offers and supply arrangements, must be used by client departments acting on their own behalf, or by PWGSC handling a requisition, unless one of the following applies:
   1. the good or service available through the mandatory standing offer or supply arrangement does not meet justifiable operational requirements, including specifications or delivery dates.
   2. the value of the requirement exceeds the call-up limitation of the standing offer or the scope of the supply arrangement.
   3. an existing contract is in place, which guarantees the work to another supplier.
   4. the requirement is subject to contracting obligations under Comprehensive Land Claims Agreement(s) (CLCA), and no mandatory standing offer/supply arrangement exists which addresses the contracting obligations of the applicable CLCA(s);
   5. the requirement will be set aside under the Procurement Strategy for Indigenous Business (PSIB), and no mandatory procurement instrument exists for PSIB set-asides;
   6. the goods or services will be acquired from CORCAN as a stores transfer order.
9. If PWGSC is handling a requisition, and the contracting officer informs the client that a mandatory standing offer or supply arrangement exists for the client's requirement, and the client disputes the opinion, the contracting officer will seek a decision from the appropriate manager or director responsible for that standing offer or supply arrangement. If the client believes that the decision rendered is not appropriate, the client may refer the issue to their respective Acquisitions Account Manager in the Client Engagement Directorate in Procurement Assistance Canada (PAC). Although, the Account Managers do not make the final decision, they will carefully assess the issue with the director responsible for that standing offer or supply arrangement, in order to have a clear and timely resolution.
10. If a client department is handling its own procurement, and does not want to use a mandatory standing offer or supply arrangement, it must contact the contracting officer responsible for the appropriate standing offer or supply arrangement (the one that the client department does not want to use), and explain the reason(s).
11. If the reason(s) are disputed by the contracting offer, the contracting officer will discuss the issue with his manager and director, as required for a decision. If the client considers that the decision rendered is not appropriate, the client may refer the issue with their respective Acquisitions Account Manager in the Client Engagement Directorate. Although, the Account Managers do not make the final decision, they will carefully assess the issue with the director responsible for that standing offer or supply arrangement, in order to arrive at a clear and timely resolution.
12. The contracting officer should record all procurements where an applicable mandatory standing offer or supply arrangement was not used, and the associated reason(s).
    Note 1: Departments can not put their own standing offers or supply arrangements in place, so as to avoid having to use PWGSC standing offers or supply arrangements, as this would defeat the long term benefits and savings of the PWGSC government wide approach.
    Note 2: If a lower price is available for an equivalent good or service, by means other than the mandatory standing offer or supply arrangement, the client department is requested to inform the PWGSC contracting officer responsible for the appropriate standing offer or supply arrangement (the one that the client department does not want to use).

3.10 Competitive contracting process

Effective date: 2012-01-11

1. The Government Contracts Regulations (GCRs) require the solicitation of bids before any contract is entered into, though the GCRs do provide for exceptions to soliciting of bids.
2. Whenever possible, contractors must be selected using a competitive process. The flexibility to depart from this approach depends on the procurement framework being followed. The type of competitive solicitation that may be used will also depend on the procurement framework.
3. It is the contracting officer's responsibility to select the most effective process for notifying suppliers of an opportunity by taking into consideration the requirements of the trade agreements and the policies set out in the Supply Manual.
4. For procedures relative to public advertisement and for publication of a Notice of Proposed Procurement and posting solicitation documents, see 4.75.10 Public advertisement to 4.75.25 Procedures for posting solicitation documents on GETS. For procurements not publicly advertised, see 4.75.45 Use of source lists. For more information on trade agreements, see 3.5 Existing procurement instruments.

3.15 Non-competitive contracting process

Effective date: 2022-12-01

1. In all instances where bids are not solicited, the legal authority to use an exception to soliciting bids must be fully justified by the client department with a reference to the applicable exception to competitive bidding which may apply under the Government Contracts Regulations (GCRs) of the Financial Administration Act (FAA), and the limited tendering provisions of Canada's national and international trade agreements. Contracting officers are also reminded to take into account the procurement provisions under the Comprehensive Land Claims Agreements (CLCAs).
2. The GCRs require the solicitation of bids before any contract is entered into. However, contracts may be entered into without soliciting bids when:
   1. The need is one of pressing emergency in which delay would be injurious to the public interest (GCRs 6.(a));
      
      Note: A pressing emergency may be an actual or imminent life-threatening situation, a disaster which endangers the quality of life or has resulted in the loss of life, or one that may result in significant loss or damage to Crown property. See 3.22 Emergency requirements (Public Works and Government Services Canada as Contracting Authority) for further instructions on Emergency Requirements.
   2. The estimated expenditure does not exceed,
      1. $25,000 for goods, and $40,000 for services and construction contracts;
      2. $100,000 where the contract is for the acquisition of architectural, engineering and other services required in respect of the planning, design, preparation or supervision of the construction, repair, renovation or restoration of a work;
      3. $100,000 where the contract is to be entered into by the member of the King's Privy Council for Canada responsible for the Canadian International Development Agency and is for the acquisition of architectural, engineering or other services required in respect of the planning, design, preparation or supervision of an international development assistance program or project; GCRs 6.(b))
   3. the nature of the work is such that it would not be in the public interest to solicit bids; or GCRs 6.(c));
   4. only one person is capable of performing the contract GCRs 6.(d)).
   The exception should only be invoked where patents, copyright requirements, or technical compatibility factors and technological expertise suggest that only one contractor exists.
3. There is a need to provide more rigor when invoking exception 6.(d) of the Government Contracts Regulations (GCRs) where only one person is capable of performing the contract. When invoking exception 6.(d) for procurements above $25,000 for goods and $40,000 for services and construction, the questions found in Annex 3.1: Treasury Board questions for sole source must be answered by the contracting officer with the assistance of the client department. The answers to these questions must be appended to the approval documents and placed on the procurement file (see 6.5.5.1 CPAA instructions and Annex 6.2: Contract request instructions.
4. With respect to procurements subject to one or more trade agreements, contracting officers may award a contract without soliciting bids, only if one or more of the limited tendering reasons stated in each applicable trade agreement can be applied. See 3.25 Trade agreements tendering approaches for more information on limited tendering. Note that limited tendering does not necessarily result in a non-competitive process.

3.15.1 Justification of non-competitive process

Effective date: 2024-05-31

1. While the client department must provide the rationale for any exception to soliciting bids, it is the responsibility of the contracting officers to make sure that the rationale can be adequately supported. Contracting officers are also reminded to take into account the procurement provisions under the Comprehensive Land Claims Agreements.
2. If there is inadequate or no substantiation, the contracting officer should advise the client of alternative products or sources, if known, and attempt to reach agreement with the client on the most appropriate procurement strategy. When agreement cannot be reached by the contracting officer, the next level of management should be consulted.
3. Use of any of the GCRs exceptions must be fully justified by the contracting officer with appropriate documentation that sets out the procurement strategy as well as the rationale for the exception used, placed on the procurement file (see 3.15 Non-competitive contracting process and 6.5.1 Procurement Plan). The trade agreements also contain provisions to document on file the reasons for the use of limited tendering and the appropriate article must be provided as justification, where applicable. (See 3.15 Non-competitive contracting process, paragraph d. and 3.25 Trade agreements tendering approaches, paragraph b.).

4. For the issuance of non-competitive standing offers, a rationale must be provided to justify the use of a non-competitive process. In addition, if a standing offer is issued using a non-competitive procurement strategy or does not have a clear ranking methodology, resulting call-ups are considered non-competitive. For all of these situations, client departments must provide the non-competitive rationale in accordance with paragraph c. above.

   For example, a non-competitive standing offer is issued to ABC Inc. with a sole-source justification that the offeror has sole IP rights for a unique scientific process. Every subsequent call-up will require a distinct sole source justification clearly demonstrating why ABC Inc.’s unique scientific process is the only acceptable method to meet the requirement and, if applicable, why other similar scientific processes would not be acceptable. 

3.15.2 Code of Conduct (sole source of supply)

Effective date: 2024-05-31

The content of this section was reviewed and incorporated in sections 3.51 Office of Supplier Integrity and Compliance overview and 4.21 Ineligibility and Suspension Policy Clauses. For reference purposes, section 3.15.2 is available in the Supply Manual Archive, Version 2013-7 (accessible only on the Government of Canada network).

3.15.5 Advance Contract Award Notice

Effective date: 2013-06-01

1. An Advance Contract Award Notice (ACAN) is a public notice indicating to the supplier community that a department or agency intends to award a good, service or construction contract to a pre-identified supplier, believed to be the only one capable of performing the work, thereby allowing other suppliers to signal their interest in bidding by submitting a statement of capabilities. If no other supplier submits a statement of capabilities that meets the requirements set out in the ACAN, the contracting officer may then proceed with awarding the contract to the pre-identified supplier. It is important to note that an ACAN is not a "competitive" process. Also of note is that an ACAN process, even if conducted in accordance with the Policy, does not constitute a "competitive" process for the purposes of the trade agreements and any Canadian International Trade Tribunal (CITT) challenge. For the purposes of contract approval authorities only, a contract awarded after posting an ACAN for which no valid statement of capabilities is submitted within the notice period is a competitive (electronic) contract.
2. The objectives of the ACAN process are to:
   1. provide a procurement process that is efficient and cost effective while being fair, open and transparent;
   2. provide potential suppliers with the opportunity to demonstrate, by way of a statement of capabilities, that they are capable of satisfying the requirements set out in the ACAN; and
   3. respect the principles of government contracting by enhancing fairness, access and transparency.
3. To provide transparency to the procurement process, an ACAN can be used only when there is sufficient justification for not soliciting bids in accordance with the exceptions of the Government Contracts Regulations (GCRs) and, if applicable, in accordance with the limited tendering reasons set out in the applicable trade agreements. (See 3.15 Non-competitive contracting process and 3.15.1 Justification of non-competitive process)
4. The ACAN notice must be published on the Government Electronic Tendering Service (GETS) provided through the Buyandsell.gc.ca Tenders minisite. However, before initiating the ACAN, contracting officers must ensure that:
   1. the requirement is sufficiently defined so that industry can understand the government's high level requirements;
   2. a justification is on file to demonstrate compliance with one of the exceptions of the GCRs and, if applicable, one of the exclusions or limited tendering reasons of the applicable trade agreements;
   3. a procurement plan or Contract Plan and Advance Approval (CPAA), as applicable, is placed on the procurement file before an ACAN is posted;
   4. the pre-identified supplier meets the same criteria to be used for assessment of other suppliers who submit statements of capabilities; and
   5. the procedures provided in 3.15 Non-competitive contracting process to 3.15.5.20 Documenting the procurement file are followed.
5. Contracting officers must ensure that Canada is in a position to accept a statement of capabilities before publishing an ACAN For more information on the process relative to the statement of capabilities, see 3.15.5.10 Statement of capabilities (challenge process). In circumstances where there is no possibility of another supplier submitting a statement of capabilities or where Canada cannot, for program or policy reasons, accept a statement of capabilities from another supplier, an ACAN must not be published. Accordingly, the use of an ACAN for non-competitive requirements is not mandatory and there is no requirement to seek approval not to publish an ACAN for a requirement. In such cases where the ACAN process is not used, the non-competitive approval authorities apply to the procurement strategy and contract award notices will be issued after contract award. (See 3.15.5.15 Advance Contract Award Notice exceptions for ACAN exceptions and 7.30 Procurement reporting and posting of award notices for contract award notices).
6. ACANs are not to be used to circumvent electronic bidding or other bidding procedures when it is clear that more than one supplier exists that can perform the work.
7. ACANs are not to be structured in ways that discourage submissions of statements of capabilities. For example, the notice should not say: "This is not a competitive solicitation," or "This is a non-competitive requirement."

3.15.5.1 Advance Contract Award Notice time limit

Effective date: 2012-01-11

1. Although ACANs are posted for a minimum of 15 calendar days on GETS, the contracting officer should consider a longer posting period based on the individual circumstances for each procurement. In determining the ACAN time limit, contracting officers must consider the complexity associated with the procurement.
2. Furthermore, while for reasons of timeliness and efficiency, contracting officers may enter into negotiations with the pre-identified supplier before the closing of the ACAN posting period, care should be exercised to ensure that any such negotiations do not put the pre-identified supplier at an advantage should a successful challenge take place before contract award. In addition, the pre-identified supplier must be cautioned not to commence any work or incur any costs before contract award.

3.15.5.5 Procedures for posting an Advance Contract Award Notice

Effective date: 2022-05-12

1. Contracting officers are responsible for preparing an ACAN for publication on GETS.
2. The ACAN notice must follow the model provided in Annex 3.3 Model content of an Advance Contract Award Notice and include the following information:
   1. An explanation of the purpose of the ACAN;
   2. A description of the requirement that is sufficiently defined so that industry can understand the government's high level requirements;
   3. The criteria against which all suppliers will be evaluated. Statements of capabilities submitted by potential suppliers will be assessed against these criteria. Information provided must be sufficient to allow other suppliers to determine if they possess the capabilities required to satisfy the requirement. The pre-identified supplier must also meet these criteria;
   4. The applicability of one or more trade agreements to the procurement for which the ACAN will be issued. See 1.25.3 Determining coverage under a trade agreement;
   5. A statement indicating if the procurement is set-aside under the Procurement Strategy for Indigenous Business;
   6. A statement indicating if the procurement is subject to one or more of the Comprehensive Land Claims Agreement;
   7. A justification for the pre-identified supplier;
   8. A statement indicating that the proposed procurement meets one or more exceptions to soliciting bids under the Government Contracts Regulations (GCRs). (see 3.15 b.);
   9. A statement indicating the exclusion(s) or the limited tendering reason(s) being invoked under the applicable trade agreement(s). Such exceptions must be fully and clearly justified in writing on the procurement file;
   10. A statement regarding ownership of intellectual property, if applicable;
   11. The period of the proposed contract or the delivery date(s), as applicable;
   12. A cost estimate of the proposed contract, where appropriate, provided that it will not prejudice negotiations with the pre-identified supplier, or compromise the supplier's competitive position if a decision is made to proceed with a competitive bidding process;
   13. The name and address of the pre-identified supplier;
   14. An explanation of how suppliers may proceed in responding to an ACAN;
   15. The closing date and time for a submission of a statement of capabilities; and
   16. The name and address of contact for inquiries and submission of statements of capabilities.
3. When significant information not specifically set out in the ACAN becomes available or a significant clarification is required, it must be provided equally to all interested parties to ensure fairness, openness and transparency. Such information should be provided in an amended ACAN with an extension to the closing date or a new ACAN should be issued, as applicable.

3.15.5.10 Statement of capabilities (challenge process)

Effective date: 2022-05-12

1. The Advance Contract Award Notice (ACAN) process provides suppliers with an opportunity to submit a statement of capabilities regarding work identified in an ACAN.
2. Statements of capabilities submitted by suppliers:
   1. should be provided in writing within the specified timeframe indicated on the ACAN; and
   2. include documentation demonstrating that the supplier meets the requirements and the criteria as set out in the ACAN.
3. Despite the timeframe indicated in the ACAN, there may be circumstances when a contracting officer could consider a statement of capabilities received after the specified date but before the award of the contract. Contracting officers should discuss this with their management and Legal Services.
4. Following receipt of a statement of capabilities, the process is as follows:
   1. All statements of capabilities received by the timeframe indicated in the ACAN are reviewed by the contracting officer in accordance with the criteria provided in the ACAN. The pre-identified supplier indicated in the ACAN is also assessed against those same criteria. The assessment must be kept on file.
   2. When a supplier's statement of capabilities provides sufficient information to indicate that it meets the requirements set out in the ACAN, the supplier is notified of the decision to compete the requirement before proceeding to a full bidding process.
   3. If a statement of capabilities is rejected, a separate review of the rejection is conducted at one level above the approval authority, but no higher than the following:
      1. Complexity Level 1: Manager
      2. Complexity Level 2: Director/Regional Director
      3. Complexity Level 3: Director General/Regional Director General
      4. Complexity Level 4 and 5: Assistant Deputy Minister, Acquisitions Branch
   4. With respect to statements of capabilities that are rejected, suppliers should be advised in writing of the decision to reject a statement of capabilities before a contract is awarded.
   5. The reasons for the decision to reject a statement of capabilities are included in the file.
   6. Suppliers that have submitted a statement of capabilities are given the reasons why their statement of capabilities was rejected.
   7. The request from a supplier to withdraw/cancel its statement of capabilities is documented on file, and should be provided in writing by the supplier.
5. If the procurement is being set aside under the Procurement Strategy for Indigenous Business, statements of capabilities must only be considered from Indigenous suppliers.
6. If the requirement subject to an ACAN is cancelled, suppliers that submitted statements of capabilities should be notified in a timely manner.
7. Contracting officers may request additional information from suppliers or third parties, as appropriate, to ensure that the interested supplier has the capability to meet the requirements set out in the ACAN.

3.15.5.15 Advance Contract Award Notice exceptions

Effective date: 2012-01-11

1. Contracting officers must ensure that Canada is in a position to accept a statement of capabilities before publishing an ACAN. In circumstances where there is no possibility of another supplier submitting a statement of capabilities or where Canada cannot, for program or policy reasons, accept a statement of capabilities from another supplier, then the contract should be awarded on a non-competitive basis with transparency achieved through a contract award notice. Examples of situations where an ACAN is not to be published include:
   1. when, for reasons of security or public interest, the information contained in an ACAN cannot be provided to the public;
   2. confirming orders;
   3. Corps of commissionaires, if right of first refusal applies;
   4. government direction, such as Munitions Supply Program;
   5. works of art;
   6. where, for reasons of extreme urgency brought about by events unforeseeable by the entity, the goods or services could not be obtained in time by means of open or selective tendering procedures;
   7. tobacco products purchased for inmates by Correctional Service Canada;
   8. regulatory body determined non-competitive service contracts (e.g., National Transportation Agency, Canadian Radio-Television and Telecommunications Commission);
   9. consolidated announcements that advertise a program consisting of several non-competitive standing offers/contracts (pharmaceutical and medical supplies are the only products currently eligible for this exclusion); and
   10. when an entity needs to procure consulting services regarding matters of a confidential nature, the disclosure of which could reasonably be expected to compromise government confidences, cause economic disruption or similarly be contrary to the public interest.
2. In such cases, the rationale underlying the decision not to publish an ACAN should be well documented on the procurement file.

3.15.5.20 Documenting the procurement file

Effective date: 2013-06-01

When the decision is made to proceed with an ACAN, contracting officers are required to document the procurement file with the actions taken in each phase of the ACAN process. Procurement files must include documentation of the following justifications, reasons and associated steps, as a minimum:

1. The rationale for the pre-identified supplier including the relevant exception to soliciting bids under the GCRs and, as applicable, the limited tendering reasons under the trade agreements (see 3.15 Non-competitive contracting process to 3.15.5 Advance Contract Award Notice).
2. The actions taken to determine if other suppliers may have been capable of performing the work. When an industry analysis is conducted to identify the possible companies that could perform the work and one company is identified but there is a doubt (or uncertainty) that there may be additional suppliers for this requirement, then an ACAN would be published. Justification of the only known supplier based on the industry analysis along with an approved procurement strategy must be put on the procurement file before an ACAN is posted; e.g. the identified supplier is the only known source based on the industry analysis. If an exhaustive industry analysis has been completed and there is no doubt that there is only one provider capable of performing this work, then a non-competitive process would be more appropriate and an ACAN would not be posted.
3. When invoking exception 6(d) of the GCRs for procurements above $25K, the responses to the questions contained in Annex 3.1: Treasury Board questions for sole source must also accompany the approval document and be on file (see 3.15 d.).
4. The assessment criteria and the assessment of the pre-identified supplier.
5. An approved procurement strategy (see 6.5.1 Procurement Plan).
6. The ACAN notice(s) posted on the Government Electronic Tendering Service (GETS) and, if applicable, the amended notice.
7. The process followed in either accepting or rejecting a statement of capabilities from another supplier or suppliers, including the independent review, if required, and the final assessment of the suppliers (see 3.15.5.10 d.).
8. Evidence that all suppliers that submitted a statement of capabilities were notified and were given the reasons why their statement of capabilities was rejected, if requested (see 3.15.5.10 Statement of capabilities (challenge process).
9. Details of any resulting competitive process, if conducted.

3.20 Procurement schedule

Effective date: 2020-05-04

1. Early in the process, contracting officers should develop a procurement schedule for the entire procurement cycle in consultation with the client. The following, as applicable, must be taken into consideration:
   1. review and analysis of the client's requirements;
   2. time for Request for Information process;
   3. assessment/approval for the use of a fairness monitor;
   4. approval of the Procurement Plan or the Contract Planning and Advance Approval;
   5. solicitation documents preparation;
   6. translation requirements;
   7. the time required for the preparation of and the receipt of bids, offers or arrangements, including site visits and bidders conference, if applicable;
   8. bidding period, and extensions;
   9. technical evaluation period;
   10. financial evaluation;
   11. benchmarking or other pre-award testing;
   12. recommendations from legal and financial reviews;
   13. the evaluation process;
   14. the requirement for negotiation;
   15. the obtaining of security clearances;
   16. the level of approval required;
   17. approval document preparation;
   18. any other item that might contribute to the time to complete the procurement.
2. In the normal course of events, final draft submissions must be received by the Treasury Board Secretariat (TBS) seven weeks before being scheduled on a Treasury Board (TB) agenda.
3. Overall, the contracting officer should expect at least 16 weeks process time for a qualified bid, offer or arrangement to obtain TB approval. The overall procurement process may take as much as six months to effect a major procurement for the client, assuming there are no challenges during the process. When it is reasonable to expect that a TB approval will be required, the validity period must be sufficient to ensure that bids, offers or arrangements are still valid when the TB approval is received.

3.21 Managing urgent acquisitions

Effective date: 2011-05-16

1. An urgent requirement (acquisition) is one that calls for immediate action and conveys a sense of urgency. The contracting officer will decide, in consultation with the client and PWGSC management as required, if the requirement is to be treated as an urgent acquisition. Defining an acquisition as urgent will depend on the current client department's priorities as well as government priorities as a whole. For example, an urgent requirement may be defined as those acquisitions where an undue delay could have a significant economic impact, an effect on health and safety programs, or a risk of not meeting an important project/program milestone.
2. In most cases, it is important that PWGSC be engaged early in the process, respecting roles and responsibilities, to ensure that a comprehensive procurement strategy is developed to meet the client's operational objectives.
3. When the requirement has been identified as urgent, the following strategies may be utilized:
   1. PWGSC and the client should use an integrated team approach with dedicated personnel working closely with the client's project team. Where there are multiple urgent requirements, consideration should be given to having a single point of contact in each department to coordinate all of the acquisitions.
   2. early development of sound communication channels is crucial, involving all stakeholders. Urgent requirements will be given priority attention, and concurrent review processes should be established and used whenever possible.
   3. contracting officers should provide information to the industry as early as possible in the process, using such pre-solicitation tools as Request for Information (RFI), Solicitation of Interest and Qualification (SOIQ), and Price and Availability Enquiries (P&A), where appropriate. For more information on the use of these tools, see 4.5.
   4. in cases where Treasury Board project approval is required but has not yet been obtained by the client, consideration must be given to developing a joint TB submission signed by both ministers that will seek (advance) contract approval at the same time. The TBS program sector analyst should always be contacted during the development of the TB submission for advice and guidance in regards to the content and on the approval process.

3.22 Emergency requirements

Effective date: 2022-12-01

3.22.1 Pressing emergency

Effective date: 2022-12-01

1. A pressing emergency is defined in accordance with the Treasury Board (TB) notice CPN 2007-4 - Non-Competitive Contracting and includes:
   1. an actual/imminent life-threatening situation;
   2. a disaster endangering quality of life or safety of Canadians;
   3. a disaster resulting in the loss of life; or
   4. a disaster resulting in significant loss/damage to Crown Property.
2. Not all contracts/contractual arrangements issued in response to a pressing emergency are considered emergency contracts/contractual arrangements in the context of the TB Directive on the Management of Procurement.
3. PWGSC may issue contracts/contractual arrangements in response to a pressing emergency in which a delay would be injurious to the public interest using basic contracting limits, exceptional contracting limits, or emergency contracting limits.

3.22.2 Emergency contracts and contractual arrangements

Effective date: 2022-12-01

1. Contracts/contractual arrangements issued in response to a pressing emergency that would normally require Treasury Board (TB) approval are considered emergency contracts/contractual arrangements in the context of the TB Directive on the Management of Procurement.
2. Contracts/contractual arrangements that would normally require TB approval include:
   1. when the total value exceeds basic and exceptional contracting limits;
   2. when limiting a contractors third-party liability with a substantive transfer of risk;
   3. when indemnifying a contractor from risk within their control.
3. Only emergency contracts/contractual arrangements are subject to the emergency contracting requirements of the TB Directive on the Management of Procurement.
4. Contracting authorities are responsible for ensuring that emergency conditions exist and for seeking the appropriate approval prior to entering into an emergency contract/contractual arrangement in accordance with the requirements specified in the TB Directive on the Management of Procurement: Appendix A.

3.22.3 Emergency contracting (Public Works and Government Services Canada as contracting authority)

Effective date: 2024-04-19

1. In accordance with the Treasury Board (TB) Directive on the Management of Procurement, Appendix A, subsection A.3.2 (Emergency contracting limits: applicable to specific departments), the Minister of Public Works and Government Services Canada (PWGSC) may enter into a non-competitive emergency contract/contractual arrangement on behalf of any department, including PWGSC, up to a total value of $15 million (Canadian Dollars, including all applicable taxes, fees and amendments).
2. The Minister of PWGSC has delegated this authority to the Assistant Deputy Minister, Procurement Branch, the Associate Assistant Deputy Minister, Procurement Branch, the Assistant Deputy Minister, Defence and Marine Procurement Branch, and the Associate Assistant Deputy Minister, Defence and Marine Procurement Branch.
3. PWGSC's Acquisitions Program emergency contracting limits can be used only if all of the following criteria are met:
   1. The extreme urgency provision of each applicable trade agreement has been applied or an exception to each applicable trade agreement applies;
   2. the requirement cannot be satisfied by normal contracting procedures due to the urgency of the situation; and
   3. the applicable department provides their Minister's (or their delegated authority) approval to use these special authorities for the initiation of the emergency requirement by PWGSC.
4. Emergency contracts/contractual arrangements must be approved in accordance with PWGSC's delegated Emergency contracting limits. Contracting officers must prepare a formal procurement plan (6.5.1. Procurement Plan) or a briefing note which should include the following:
   1. A description of the requirement and the total estimated value (including all applicable taxes and fees);
   2. An explanation of the urgency of the requirement and the rationale for using: a) the emergency contracting limits; and b) the Government Contracts Regulations (GCRs) pressing emergency exception to soliciting bids;
   3. Details on the extreme urgency provision of each applicable trade agreement that has been applied or the exception to each applicable trade agreement that applies; and
   4. Details on the non-competitive procurement strategy.
5. PWGSC contracting officers must ensure that the context and rationale to support the use of PWGSC's emergency contracting limits are well-documented.
6. In some emergency cases, PWGSC may have to consider limiting a contractors first- or third-party liability or provide indemnification. When limiting liability with a substantive transfer of risk or when indemnifying the contractor, departments must provide their Chief Financial Officers (CFO) approval, even when PWGSC is acting as the contracting authority.
7. In some emergency cases, PWGSC may have to include an advance payment in the contract/contractual arrangement. When a business rationale exists for negotiating advance payment clauses and issuing an advance payment to a supplier, the decision making must be completely and carefully documented. Contracting officers should contact the Price Support Directorate (PSD) at TPSGC.PASoutiendesprix-APPriceSupport.PWGSC@tpsgc-pwgsc.gc.ca to arrange for a financial capability assessment of the supplier to verify that the supplier has the financial capability to fulfil the contract/contractual arrangement requirements.
8. Contracting officers must assess all other procurement risks associated with the supplier (integrity, VPCM, etc.) and consult subject matter experts for their support and guidance.
9. Contracting officers must provide an emergency contracting report to the Treasury Board of Canada Secretariat within 60 calendar days of entering into or amending an emergency contract/contractual arrangement. This includes all emergency contracts/contractual arrangements issued on behalf of PWGSC under the Minister's delegated $1 million emergency contracting limits for corporate procurements (see the Delegation of Authority Instruments, under Schedule 1). As per Appendix C, section C.5 of the TB Directive on the Management of Procurement, the report must include:
   1. the justification for the pressing emergency and detailed information about the circumstances of the emergency situation;
   2. the type and total value of the awarded contract/contractual arrangement;
   3. the reason(s) why the bidding requirements were not practical or permissible;
   4. PWGSC's delegated contracting authority level at which the emergency contract/contractual arrangement entry was approved;
   5. information about limitation of liability or indemnification decisions for contracts/contractual arrangements entered without TB contracting approval regardless of the dollar value, where applicable.
10. Ratification of emergency contracts
    Treasury Board approval is required for any emergency contract/contractual arrangement over $15 million. If an emergency contract/contractual arrangement exceeding $15 million is entered into, ratification of the contract/contractual arrangement must be sought from the Treasury Board as soon as possible. If a contracting authority uses the emergency contracting authority in error, ratification would also be required when the contract/contractual arrangement value exceeds the departmental basic or exceptional limits. The Treasury Board submission for ratification is to be submitted in addition to the emergency contracting report.
11. For emergency contracts/contractual arrangement subject to Comprehensive Land Claims Agreements (CLCAs), contracting officers should contact Indigenous Procurement Advisory Services Division (IPASD) by email at tpsgc.rcndgaertgsaea-ncrabclcapsab.pwgsc@tpsgc-pwgsc.gc.ca for assistance with determining how a CLCA may affect the overall procurement strategy. See section 9.35 Modern treaties for additional information.

3.22.5 Exceptions to processes when an emergency

Effective date: 2024-05-31

1. With respect to the Vendor Performance Corrective Measure Policy (VPCMP), an exception may be made in accordance with section 8.180.25 Exceptions.
2. With respect to the Ineligibility and Suspension Policy Clauses (see section 3.51 Office of Supplier Integrity and Compliance overview), contracting officers must verify with the Registrar of ineligibility and suspension (the Registrar) that the offeror is not ineligible to be awarded a contract. Where an emergency occurs after hours and the Registrar is not available, contracting officers should make reasonable efforts to consult the public Ineligibility and Suspension List prior to awarding the contract and complete the verification process the following day. If a contract has been awarded to an ineligible offeror as a result of an emergency, contracting officers must contact the Acquisitions Program at tpsgc.papolitiques-appolicy.pwgsc@tpsgc-pwgsc.gc.ca for instructions on how to notify the Departmental Oversight Branch (DOB) that a contract was awarded to an ineligible supplier.

3.22.10 Emergency requirements (departments)

Effective date: 2022-12-01

1. Appendix A, section A.3.1.1 Emergency contracting limits of the Directive on the Management of Procurement allows any department to enter into and amend a contract/contractual arrangement up to a total value of $1 million (Canadian Dollars, including all applicable taxes, fees and amendments) in response to a pressing emergency. Contracting authorities are responsible for obtaining the approval of the most senior contracting authority available to enter into such contracts/contractual arrangements. It is important to verify each department's internal delegation and implementation policies before applying these instructions. Contracting authorities may refer to the Directive on the Management of Procurement for details on the additional emergency contracting limits applicable to specific departments and the reporting requirements.
2. The departments can only use their emergency contracting limits if all of the criteria listed at section 3.22.3 c. are met.
3. If the requirement is covered under a Standing Offer (SO), departments may issue a call-up in accordance with call-up limitations specified in the SO. If the requirement exceeds the call-up limitations, departments should contact PWGSC to handle the call-up on their behalf.
4. If the requirement is not covered under a SO, then the procurement may be handled by the department if it is within their emergency contracting limits. For a procurement that falls outside of the department's emergency contracting limits, the department must immediately contact PWGSC and then send a requisition to PWGSC for the procurement. The department must clearly specify the technical requirement and should provide, as soon as possible, the sourcing and availability information if they know it, and substantiation for the emergency requirement as per subsection 3.22.3 d. Departments must also provide their Minister's (or their delegated authority) approval to use these special authorities for the initiation of the emergency requirement by PWGSC.
5. Contracting officers must provide an emergency contracting report to the Treasury Board of Canada within 60 calendar days of entering into or amending an emergency contract/contractual arrangement, as per Appendix C, section C.5 of Treasury Board Directive on the Management of Procurement.
6. For ratification of emergency contracts/contractual arrangements see subsection 3.22.3 j.
7. For emergency procurements subject to Comprehensive Land Claims Agreements (CLCAs), see subsection 3.22.3 k.

3.22.15 Additional considerations on managing emergency requirements

Effective date: 2013-03-21

It is important to understand that one should not be too restrictive during an emergency and should let the requirement and timeline dictate the process to some degree. The following should be considered by contracting officers before an emergency occurs to help mitigate risk and loss during what may be a very stressful time, and to facilitate procurement when it is critical to be quick, calm and flexible.

1. Remain calm and focused on the issue. Refer to any departmental procedures established to facilitate emergency contracting.
2. Create a dedicated team for emergency contracting requirements, either on an "as needed" basis or on a more permanent scale.
3. To facilitate a speedy response, assign a liaison officer who will be the point of contact for assisting and coordinating an organization's resources.
4. Ensure that your team is equipped to handle an emergency by ensuring that they have the tools in place to facilitate their duties.
5. Be available and ensure that all the key players are at all critical meetings and briefings.
6. Engage PWGSC early in the process (client departments).
7. Maintain an open line of communication with all stakeholders.
8. Immediately identify the most senior official available to approve a contract when using the department's own $1 million emergency authority (client departments).
9. Brief senior management often and document any decisions and deviations to the process.
10. Identify specialists within your department who may be useful such as legal services, policy advisors, financial analysts, risk management advisors, commodity experts, etc.
11. Establish and collaborate with contacts in other government departments and other levels of government such as provincial and territorial.
12. Establish a process for quick buys including fast tracking approvals.
13. Consider new and innovative solutions.
14. Reduce the risk and be prepared.

3.25 Trade agreements tendering approaches

Effective date: 2021-05-20

1. There are three tendering approaches under trade agreements: open tendering, selective tendering, and limited tendering.

   1. Open Tendering: Where a Notice of Proposed Procurement (NPP) is published and any supplier may submit a bid;

      Open Tendering is the preferred approach.

   2. Selective Tendering: May involve the use of a one-time list of prequalified suppliers or the use of a permanent list of prequalified suppliers. When using selective tendering, all prequalified suppliers must be allowed to participate in a procurement, unless the procuring entity states in its request for prequalification any limitation on the number of suppliers that will be permitted to tender and the criteria for selecting the limited number of suppliers.

      
      Procedural obligations relating to prequalification that appear in trade agreements under the heading of "selective tendering" are applied at PWGSC as follows. Note that where a procurement is subject to any of the trade agreements, an NPP must be published at both stages of the process.

      Trade agreement obligations relating to prequalification are applied as set out below:

      1. Involving the use of a one-time list of prequalified suppliers:

         This is a two stage procurement process, where the first stage involves the publication of an NPP where potential interested suppliers meet predetermined qualifications for participation. In the second stage, tender documentation is issued to the prequalified suppliers determined during the first stage.

         For procurements subject to one or more international trade agreements, an NPP must be published at both stages of the procurement (it is also acceptable to amend the original NPP once the tender closing date has been determined);

      2. Involving the use of a permanent list of prequalified suppliers*:

         An NPP is published and potential interested suppliers meet predetermined qualifications for participation. A list of prequalified suppliers is then developed, maintained, and used for several different individual solicitation processes.

         For the individual solicitation processes done under the list, prequalified suppliers are issued the tender documentation. Any other potential supplier who requests tender documentation must be considered, as long as there is sufficient time to carry out the prequalification process. For lists subject to the CFTA and/or one or more international trade agreements, an annual notice of the existence of the permanent list of prequalified suppliers must be published on GETS (use the NPP form).

         At PWGSC, obligations regarding permanent lists of prequalified suppliers are operationalized as Supply Arrangements.

         *A permanent list of qualified suppliers may also be referred to as a "source list", and is also referred to in many trade agreements as a "multi-use list."

   3. Limited Tendering: A tendering approach where, in specific circumstances, a contracting officer may choose to deviate from certain procedural obligations of the applicable trade agreement(s) in a particular procurement.

      Limited tendering must not be used to avoid competition between suppliers, to discriminate against suppliers, or to protect domestic suppliers. Trade agreement rules regarding technical specifications must still be followed. The default approach when limited tendering is a competitive process; however, where appropriate, limited tendering may be non-competitive or used for sole sourcing. In all cases, it is recommended that contracting officers continue to follow the procedural obligations of the trade agreements to the greatest extent possible and only choose to deviate from procedural obligations as permitted and as needed.

      Where more than one trade agreement applies, an appropriate limited tendering justification must be found in the limited tendering provision of each agreement, and the reference to the procedural obligations the contracting officer may choose to deviate from must also be found in the limited tendering provision of each agreement.

      In general, by following the limited tendering obligations set out in the WTO-AGP and CETA, contracting officers will meet the requirements for the other trade agreements. However, for the greatest certainty, contracting officers should refer to the limited tendering provisions found in the applicable trade agreements. For examples of limited tendering provisions, see:

      1. Article 513: Limited Tendering of Chapter 5 of the CFTA;
      2. Article 19.12 - Limited tendering of Chapter 19 of CETA; and
      3. Article XIII - Limited Tendering of the WTO-AGP.

      A summary of the limited tendering reasons found in the trade agreements, as well as of the procedural obligations a contracting officer may choose to deviate from when using limited tendering can be found in Annex 3.2: Limited tendering reasons contained in the trade agreements.

2. For the procedure for publication on GETS, see 4.75.20 Procedure for posting of Notice of Proposed Procurement on Government Electronic Tendering Service.

3. In addition to the above tendering procedures, Crown corporations may use a notice of planned procurement to advertise potential procurements. This notice is normally published at the start of a fiscal year and lists potential procurements for the enterprise in the upcoming fiscal year.

   A response from potential suppliers to a notice of planned procurement is not required.

   For Crowns, the notice of planned procurement may also be used as a notice regarding a prequalification process. When used in this manner, a response from suppliers would be required. Tender documentation is issued to those suppliers meeting the prequalifications.

3.30 Methods of supply

Effective date: 2011-05-16

1. Public Works and Government Services Canada (PWGSC) uses a variety of approaches to meet procurement requirements. This spectrum ranges from specific contracts which precisely define the deliverables to be provided to a specific client by a specific date, to various procurement instruments for use by a single or many departments and agencies, for needs which are sometimes less well defined at the outset.
2. There are essentially three methods of supply for procuring goods and services, which are:
   1. contracts (including contracts with task authorizations);
   2. standing offers, and
   3. supply arrangements.
3. The contracting officer, in consultation with the client, chooses the method of supply that best satisfies the client's requirements.
4. For additional information on when to use a contract (including contracts with task authorizations), a standing offer or a supply arrangement, see 3.35 Contracts, 3.40 Standing offer method of supply and 3.45 Supply arrangement method of supply. Contracting officers should also consult the comparison table in Annex 3.8: Comparison of different methods of supply to assist them in determining which method of supply should be used when the precise nature, quantity and/or timing of the need cannot be set out in advance.

3.35 Contracts

Effective date: 2011-05-16

1. Contracts for goods, services and construction are generally used to meet unique, well defined requirements for a single client but they may also be used to meet the requirements of more than one client. They are used where a standing offer or supply arrangement is not warranted.
2. For more information on the required content of a contract, see Chapter 4 - Solicitation process.

3.35.1 Contracts with Task Authorizations

Section update on: 2010-01-11

3.35.1.1 Definition

Effective date: 2011-05-16

1. A contract with Task Authorizations (TA) is a method of supply for services under which all of the work or a portion of the work will be performed on an "as and when requested basis" through predetermined conditions including an administrative process involving task authorizations. Contracts with TAs are used in service contracting situations when there is a defined need by a client to rapidly have access to one or more categories of service(s) that are expected to be needed on a repetitive basis during the period of the contract. Under contracts with TAs, the work to be carried out can be defined but the exact nature and timeframes of the required services, activities and deliverables will only be known as and when the service(s) will be required during the period of the contract. The contract with TAs must stipulate the conditions for issuing TAs. A TA is a structured administrative tool enabling PWGSC or a client to authorize work by a contractor on an "as and when requested" basis in accordance with the conditions of the contract. TAs are not individual contracts.

3.35.1.5 Application

Effective date: 2011-05-16

1. Contracts with TAs may be used for service requirements such as:
   1. Professional Services;
   2. Informatics Professional Services;
   3. Technical Investigation and Engineering Studies;
   4. some types of Repair and Overhaul (R&O) services where work authorizations issued are considered task authorizations, i.e. Additional Work Requirements (AWR); Mobile Repair Party (MRP); Special Investigations and Technical Studies (SITS); Project Work Order (PWO).
2. Contracts with TAs are not to be used for shipbuilding or ship refits. Nor are they to be used for those R&O work authorizations that are not considered task authorizations, i.e. Selection Notice and Priority Summary (SNAPS); Repairable Materiel Request (RMR); Quartermaster Transfer Orders (QTO); and Vehicle Movement Orders (VMO).
3. Although TAs are used for service requirements, they may be used to purchase incidental goods that are related to a specific service requirement when these goods will later become the property of the government. When this incidental acquisition of goods will be necessary, the Contract Planning and Advance Approval (CPAA) form or procurement plan (see 3.35.1.15) and the solicitation and resulting contract must address the conditions for this incidental acquisition of goods, with appropriate limitations defined. TAs must not be used to have the contractor acquire goods on behalf of the client that are outside the scope of the work in order to circumvent the normal procurement process. For instance, a contract with TAs for engineering services cannot be used to purchase software unless this requirement was part of the original solicitation and the related payment provisions of the contract.
4. Directors may approve or prohibit classes of procurement in which TAs may be used.

3.35.1.10 Conditions of use

Effective date: 2024-04-19

1. Contracts with task authorizations that are improperly used can lead to major problems between the government and its suppliers, between PWGSC and its clients, and for the government in the eyes of the public. When a contract with TAs is being considered as a method of supply for a particular procurement, before seeking approval for the procurement strategy, the contracting officer must follow all the applicable procedures detailed in 3.35.1 Contracts with Task Authorizations. In instances when the TAs are issued only by PWGSC, some of these procedures may not apply (i.e. roles and responsibilities, setting client limits for issuing TAs, the guide for PWGSC's clients, the Record of Agreement, some reporting requirements).
2. As conditions of use of contracts with TAs, the contracting officer must:
   1. ensure the contract with TAs is the appropriate method of supply for these services. (Refer to 3.35.1.5 Application and Annex 3.8: Comparison of different methods of supply attached, and other sections relative to methods of supply included in the Supply Manual).
   2. decide whether to allow the client to issue TAs, and determine the financial limits for issuing TAs by clients. These decisions should be made by PWGSC in consultation with the client in accordance with 3.35.1.30 Setting financial limits on individual Task Authorizations.
   3. provide the client the Guide for Preparing and Administering Task Authorizations - for PWGSC's Clients (Annex 3.4.1: A guide to preparing and administering Task Authorization for PWGSC clients) with an explanation of its purpose and discuss as required.
   4. reach an agreement with the client regarding the roles and responsibilities of both organizations, including responsibilities for reporting. In this regard, the use of the Record of Agreement template pertaining to the use of Task Authorizations (Annex 3.4.2: Record of agreement template - for PWGSC clients) is strongly encouraged. The agreement must include the provision for timely receipt of documentation such as:
      1. copies of all TAs with their attachments;
      2. copies of all revisions to TAs with their attachments;
      3. copies of all claims/invoices, supported by reports.
   5. follow the procedures detailed in 3.35.1.15 Approval documents for contracts with Task Authorizations to 3.35.1.60 Reporting.
   6. discuss, as required, the use of contracts with TAs with the client, in particular the administrative process for authorizing and issuing TAs.
   7. ensure that clients provide completed resource assessment worksheets demonstrating the proposed resource meets the requirements for the applicable category and level when requesting PWGSC authorization of TA forms. This information must be kept on the procurement file.
   8. ensure that clients provide proof that security requirements were verified when requesting PWGSC authorization of TA forms. Clients must provide a copy of the security clearance confirmation for each proposed resource to be included in the TA. This information must be kept on the procurement file.

3.35.1.15 Approval documents for contracts with Task Authorizations

Effective date: 2011-05-16

1. For contracts with TAs, the Contract Planning and Advance Approval (CPAA) form or procurement plan for a contract with TAs must address the following, as applicable:
   1. the reasons why the services are deemed suitable for this method of supply.
   2. the justification for the proposed financial limits for issuing TAs by clients.
   3. a statement confirming that the Guide to preparing and administering Task Authorization for Public Works and Government Services Canada clients was provided, and discussed with the client, as required.
   4. a statement confirming that an agreement was reached with the client regarding roles and responsibilities of both organizations or a statement confirming the client's commitment to reaching such an agreement before issuance of the bid solicitation.
   5. a statement confirming that discussions took place with the client on the use of contracts with TAs, before the client authorizes the first task.
   6. a description of the contract monitoring process and activities to be implemented or carried out.
2. See Chapter 6 for additional instructions on the use and preparation of the CPAA form or procurement plan.
3. The approval authority for contracts with TAs, and for amendments which will amend the provisions of a contract with TAs, is in accordance with the approvals and authorities for contracts detailed in Chapter 6.

3.35.1.20 Bid solicitations and resulting contract documents

Effective date: 2024-02-16

1. Contracting officers must ensure that the bid solicitation and resulting contract document(s) that they issue and use to establish the subsequent contract with task authorizations follow the standard approach for issuing solicitations (refer to Chapters 3 and 4). For any portion of work to be performed on an "as and when requested" basis, the bid solicitation and the resulting contract document must include the following:
   1. a clear Statement of Work (SOW) describing, in broad terms, the scope of work that will be performed pursuant to issued TAs.
   2. a description of the administrative process for authorizing and issuing TAs and all applicable SACC Manual clauses relative to TAs. In the case of multiple contracts with TAs, the evaluation portion of the solicitation must include the contractors' order of ranking process (generally as part of the basis of selection clause) and, the resulting contract portion must include the contractors' order of ranking and the work allocation process (to be completed at the time of contract award). The following SACC Manual clauses relative to Task Authorizations (TA) must be used for all clients, as applicable: B9030C, B9031C, B9051C, B9053C, B9054C, B9056C, B9058C, C9010C and C9011C.
   3. the task authorization limits for authorizing and issuing TAs by the client in accordance with the guidance in 3.35.1.30 Setting financial limits on individual task authorizations.
   4. the applicable form for authorizing and issuing TAs. Refer to section 3.35.1.25 Forms for further guidance
   5. the payment provisions applicable to the TA such as basis or bases of payment (for example, SACC Manual clauses C0204C and C0209C) and method(s) of payment. Consult section 4.70.20 Basis of payment of the Supply Manual for more information.
   6. Canada's obligation and Canada's total liability:
      1. when all the work under a contract will be performed through TAs:
         1. the SACC Manual clause B9030C must be used to limit Canada's obligation for TAs and to provide a minimum work guarantee to the Contractor; and,
         2. the SACC Manual clause C9010C must be used when the contract with TAs is subject to a Limitation of Expenditure to limit Canada's total liability under the contract for all approved TAs. The "Total estimated cost" shown on the cover page of the contract document must equal the total of the limitation of expenditure stipulated under the clause.
      2. when only a portion of the Work will be performed through task authorizations:
         1. the SACC Manual clause B9031C must be used to limit Canada's obligation under the task authorizations; and,
         2. the SACC Manual clause C6001C must be used when the contract with TAs is subject to a Limitation of Expenditure to limit Canada's total liability under the contact. The "Total estimated cost" shown on the cover page of the contract document must equal the total of the limitation of expenditure stipulated under the clause.
2. Contracting officers are responsible for monitoring the use of TAs, they must also consider including a provision for reporting of usage of TAs by the contractor (i.e. SACC Manual clause B9056C). Also refer to section 8.70.20(b) Administration of contracts with Task Authorizations for details on administration of contracts with task authorizations.

3.35.1.25 Forms

Effective date: 2013-11-06

The contracting officer should use the form PWGSC-TPSGC 572 Task Authorization (accessible only on the Government of Canada network), for the authorization of tasks by both PWGSC and clients other than the Department of National Defence (DND). This form is available through the PWGSC Forms Catalogue Web site (accessible only on the Government of Canada network). Alternatively, any locally developed and approved task authorization forms may be used for non-DND contracts. The form DND 626 Task Authorization must be used in contracts for DND. Forms PWGSC-TPSGC 942 (Call-up against a Standing Offer)(accessible only on the Government of Canada network), PWGSC-TPSGC 1379 (Work Arising or New Work) (accessible only on the Government of Canada network), and GC 111 (Purchase Order) (accessible only on the Government of Canada network) must not be used as a task authorization form in a contract with TAs.

3.35.1.30 Setting financial limits on individual Task Authorizations

Effective date: 2013-01-28

1. Task authorizations may be authorized and issued by the client and/or PWGSC. PWGSC contracting officers who have been delegated services contract approval and signing authority have no maximum limit on the dollar amount for authorizing individual TAs up to the total approved contract value, unless directed otherwise by their management. The decision to allow TAs to be issued by a client is made by PWGSC in consultation with the client. When the client will be allowed to authorize TAs, the PWGSC contracting officers must establish a maximum limit on the dollar amount of a TA (including Goods and Services Tax (GST) or Harmonized Sales Tax (HST)) authorized by the client. In establishing such limits for individual TAs and any revisions to those TAs, contracting officers should seek to achieve a balance between operational effectiveness and contract risk management, and should consider the following when setting the client's TA limit:
   1. whether an agreement has been reached between the client and PWGSC on the conditions of use of TAs. (See 3.35.1.10 Conditions of use).
   2. the client and the industry's past performance history relative to the effective use of contracts with TAs, as experienced by the contracting officer and PWGSC colleagues/managers.
   3. the procurement/contract management expertise that exists in the client department:
      1. Whether training is available/required.
      2. Whether the client department policies and procedures are in place and whether these are enforced. For example, the internal procedure for the administration of TAs for the Department of National Defence (DND) is contained in article 3.3.2 of DND's Procurement Administration Manual (PAM).
   4. operational requirements, e.g., time sensitivity of tasks.
   5. contract scope and risk associated with individual tasks:
      1. The clarity and level of detail in the contract statement of work.
      2. Anticipated complexity and duration of individual tasks.
      3. Whether tasks can be easily priced.
      4. The average value of TAs, the frequency of tasks and the number of tasks anticipated during the period of the contract.
   6. as applicable, the total estimated value of work that will be carried out through the portion of the work that is not performed through TAs in relation to the total estimated value of work that will be performed through TAs.
   7. the frequency of reporting on task authorizations.
2. Furthermore, in setting the value at which PWGSC must authorize individual TAs, contracting officers must ensure that this PWGSC involvement will add value to the task authorization process while at the same time ensuring that PWGSC maintains adequate control over the TA process. Added value can be in several forms, such as financial oversight or comparisons with similar contracts for other clients to ensure value for money. Setting the client's TA limit should be subject to a department's experience in administering TAs and contracting officers may want to consider setting a limit such that PWGSC authorizes a representative amount of TAs.

3.35.1.35 Separation of duties

Effective date: 2011-05-16

The Treasury Board Directive on Delegation of Financial Authorities for Disbursements requires that the authority to enter into contract or amendment must be separate from the certification authority required under section 34 of the Financial Administration Act. In Chapter 3 of the 2008 December Report of the Auditor General of Canada, the Office of the Auditor General raised the issue of separation of duties with respect to task authorizations and stated that combining procurement and certification functions under the responsibility of one individual was not in keeping with the Treasury Board Policy on Delegation of Authorities. As a result, although task authorizations are not individual contracts, PWGSC applies the principle of separation of duties to task authorizations issued for PWGSC's own needs; i.e. the PWGSC individual who signs the task authorization must not also certify the associated invoices. In its Guide to preparing and administering task authorization for Public Works and Government Services Canada clients, PWGSC recommends this practice to all its clients. However, as specified in the above-mentioned TB Directive, where the client's current processes in place or other circumstances do not allow such separation of duties, alternate control measures may be implemented by the client. The client is responsible to ensure that its current processes or alternate control measures can withstand scrutiny under audit.

3.35.1.40 Authorizing and issuing Task Authorizations

Section update on: 2024-05-31

1. The client organization authorized to issue tasks to the contractor is responsible for authorizing and issuing TAs in accordance with the process detailed in the contract. As a minimum, the client organization is responsible for:
   1. ensuring the work requirement of the TA including the deliverables and the schedule, as applicable, is in accordance with the scope of the contract.
   2. providing the contractor with the task description, the payment provisions and obtaining the level of effort, as applicable.
      Setting dates or timeframes for completing tasks must take into consideration the expiry date of the contract. A task must be completed on or before the expiry date of the contract, however, if a task cannot be completed by such date, a contract amendment to extend the contract period to the task completion date must be issued by the contracting officer before the TA can be issued.
   3. finalizing the task authorization, including the total value of the TA (GST/HST extra), in accordance with the contract.
   4. obtaining all applicable signatures (client, or PWGSC, or both, as applicable; and contractor), and the date of these signatures on the TA.
2. Ineligibility and Suspension Policy Clauses
   1. Once verification is completed as per section 5.16 Integrity compliance, contracting officers should ensure that the integrity verification result is in the procurement file for any subsequent transaction with that offeror.
   2. During the contract period, where a contractor has been identified as not complying with the Integrity Clauses of the contract (see section 5.16), contracting officers must request direction from the Acquisitions Program, by email at tpsgc.papolitiques-appolicy.pwgsc@tpsgc-pwgsc.gc.ca.

3.35.1.45 Administration of the Task Authorizations by Public Works and Government Services Canada's clients

Effective date: 2011-05-16

For details, see Annex 3.4.1 Guide to preparing and administering Task Authorization for Public Works and Government Services Canada clients.

3.35.1.50 Revision of a Task Authorization by the client

Effective date: 2024-02-16

1. The client may revise a TA that it originally authorized subject to the work being within the scope and value of the contract as well as within the client authority limit set in the contract. Any revision to the TA is subject to concurrence by the contractor. A TA revision, which will bring the TA value above the client TA limit, must be referred to the contracting officer.
2. An authorized TA may be revised to either reduce an activity (or activities) or to cancel the task in its entirety. This must be done by issuing a revision to the TA. In situations when the contractor is in default or for the convenience of Canada, the termination provisions of the applicable general conditions will apply and the contract may be terminated either entirely or in part for default or for convenience. Such matters must be referred to the PWGSC contracting officer.

3.35.1.55 Monitoring and oversight

Effective date: 2011-05-16

1. Contracting officers must monitor issued TAs to ensure they comply with the contract conditions. They must also review progress reports to ensure the work is being performed in accordance with the contract and the issued TAs and to monitor the amount expended against the contract value.
2. If the monitoring of the authorized and issued TAs demonstrates that the TA process is not in accordance with the contract or the agreement with the client, the specific corrective measures must be implemented. This is addressed in the Record of Agreement template in Annex 3.4.2, paragraph 5. The contracting officer must notify the contractor when the limit of the client's authority specified in the contract is reduced or revoked. Furthermore, invoking penalty or termination provisions should not be undertaken without consultation with Legal services.

3.35.1.60 Reporting of contracts with Task Authorizations

Effective date: 2013-06-27

Contracting officers must report on contracts with Task Authorizations (TA), or amendments thereto. See 7.70.35 Contracts with Task Authorizations - coding for details.

3.40 Standing offer method of supply

Effective date: 2022-05-02

1. A standing offer (SO) is an offer from a supplier to Canada that allows Canada to purchase goods and/or services, or a combination of goods and services, as and when requested, during a specific period of time, through the use of a call-up process which incorporates the conditions and pricing of the standing offer.
2. A standing offer itself is not a contract. A separate contract is formed each time a call-up for the provision of goods and/or services is made against a standing offer. When a call-up is made, it constitutes an unconditional acceptance by Canada of the supplier's offer for the provision, to the extent specified, of the goods and/or services described in the standing offer. Canada's liability is limited to the actual value of the call-ups made by the identified user(s) within the period the standing offer is valid.
3. This method of supply is used to satisfy the requirements of departments and agencies for a specified period, when precise details on expected quantities for the period are not known in advance. Standing offers may authorize one or more clients to issue call-ups for goods or services directly to offerors up to the maximum call-up limits indicated in the standing offer. If so stated in the standing offer, PWGSC may issue call-ups above the client call-up limit.
4. For a description of the five types of standing offers that may be authorized, see 7.10.1 Standing offers.
5. A standing offer may be valid for one or more years. The selection of the appropriate time period is a process that varies significantly by individual commodity.
6. The quantity of goods and/or level of services specified in the Request for Standing Offers (RFSO) and the resulting standing offer(s) are only an approximation of the requirements given in good faith by Canada to the offerors.
7. All government policies, regulations and procedures related to contracting, including those required under the trade agreements, apply to the standing offer method of supply.
8. The total estimated expenditure of the requirement (the anticipated total value of all accumulated call-ups) proposed to be satisfied by the standing offer method of supply, Goods and Services Tax/Harmonized Sales Tax (GST/HST) included, must be used to determine the applicability of any procedures required by any trade agreement to which the Government of Canada is signatory. If it is intended to issue more than one standing offer against the RFSO, the sum of the total estimated value, GST/HST included, of all resulting standing offers must be used to obtain approval.
9. Contracting officers should consider using a standing offer where appropriate considering the advantages and disadvantages of the approach:
   1. Advantages of a standing offer method of supply may include:
      • 1. improved client service (with a standing offer in place, clients can place orders quickly);
        2. reducing the risk of overestimating the need.
   2. Disadvantages of a standing offer approach may include:
      • 1. supply that is not guaranteed at that price since the offeror may withdraw;
        2. prices that may be less competitive.
10. Standing offers may be either competitive (see Standard Acquisition Clauses and Conditions Manual standard instructions 2006) or non-competitive (see standard instructions 2007) in nature.
11. For more information on the competitive solicitation process for RFSO, see Chapter 4 - Solicitation process.
12. A standing offer may be directed on a non-competitive basis to one offeror for its full range of catalogue goods or services. The non-competitive approval authorities would then apply.
13. The standing offer is usually considered for goods and services when:
    1. One or more clients repetitively order(s) the same range of goods, services, or both, and the actual demand (for example, quantity, delivery date, delivery point) is not known in advance;
    2. Some of the following conditions are present:
       • 1. the goods, services, or both are well defined;
         2. pre-arranged prices or a prearranged pricing basis can be established at the outset, usually through competition, and there is no need nor any intention to negotiate them at the time of the call-up;
         3. the goods and services, or both are readily available and are to be ordered (requested through a call-up), if and when the requirements arise, and
         4. at the time of the call-up, there is no need, nor any intention to further negotiate contractual terms and conditions.
14. The standing offer method of supply cannot be used when:
    1. prices, pricing basis or conditions are not stated, or are subject to change at any time at the discretion of the supplier;
    2. the identified users of the standing offers intend to negotiate further the prearranged prices, pricing basis, or conditions of the standing offer, or
    3. it is intended to solicit bids each time goods or services are required. In these cases, another method of supply such as a supply arrangement should be considered.
15. Departments and agencies are authorized by PWGSC to make call-ups against each standing offer, as defined in the standing offer. See paragraph (a) under subsection 4.10.20.1 Standing offer procedures.
16. When procedural requirements of any trade agreement apply to a standing offer method of supply, the complete procurement process, including all standing offers authorized for use and the resulting call-ups, fall within the purview of the Canadian International Trade Tribunal.
17. If a Request for Standing Offers (RFSO) and the resulting call-ups include a security requirement, contracting officers should consider how the security requirements will be managed (i.e. what the base security requirements will be and how different security requirements such as Information Technology (IT), Production and/or COMSEC are managed). The contracting officer must ensure that a call-up issued against a Standing Offer contains the appropriate security requirements and that the client is aware of their responsibility to confirm the security status of the organization/personnel prior to issuing the call-up.
    
    Important: When security capabilities such as document safeguarding, IT (including cloud computing), Productions and/or COMSEC are required, seek assurance of these specific security types from the Contract Security Program (CSP) as they are contract-specific. Contracting officers must send copies of all such call-ups to the CSP at tpsgc.ssicontrats-isscontracts.pwgsc@tpsgc-pwgsc.gc.ca.
18. For information related to approval authorities when using a Standing Offer, refer to 4.10.20.5 Ranking and methodology for standing offers.

3.45 Supply arrangement method of supply

Effective date: 2022-05-02

1. A supply arrangement (SA) is a non-binding arrangement between Canada and a pre-qualified supplier that allows departments and agencies to award contracts and solicit bids from a pool of pre-qualified suppliers for specific requirements within the scope of the SA.
2. An SA is not a contract for the provision of the goods and services described in it and neither party is legally bound, as a result of signing a supply arrangement alone. The intent of a supply arrangement is to establish a framework to permit expeditious processing of individual bid solicitations, which result in legally binding contracts for the goods and services described in those bid solicitations.
3. An SA may be used when:
   1. the overall requirement cannot be clearly defined at the outset and it is proposed to establish a pool of screened suppliers from which clients and PWGSC solicit bids for individual requirements;
   2. a commodity is procured on a regular basis (goods or services);
   3. a standing offer is not suitable, due to variables in resulting call-ups (e.g. varying methods/basis of payment, or the statement of work or commodity cannot be adequately defined in advance);
   4. a simplified solicitation, undertaken by users/clients, can be used to obtain competitive bids from the pre-qualified suppliers;
   5. selection will be based on best value, as described in the SA and the subsequent solicitation; and
   6. it is more efficient for PWGSC to operate as the provider of the framework on behalf of other users/clients and not as the contracting authority.
4. Supply arrangements are generally put in place following a Request for Supply Arrangement (RFSA) process. For more information on the solicitation process, see Chapter 4 - Solicitation process. When developing the procurement strategy, contacting officers should consider the following:
   1. if national and international trade agreements apply to the solicitation (see 3.50 Procurements subject to trade agreements);
   2. whether or not ceiling prices will be included in the SA;
   3. If the Request for Supply Arrangement (RFSA) and any resulting contract include a security requirement, contracting officers should consider how security requirements will be managed (i.e. what the base security requirements will be and how different security requirements are managed). The contracting officer must ensure that a contract resulting from a SA contains the appropriate security requirements and that the client is aware of their responsibility to confirm the security status of the organization/personnel prior to issuing the contract;
      
      Important: When security capabilities such as document safeguarding, IT (including cloud computing), Production and/or COMSEC are required, seek assurance of these specific security types from the Contract Security Program (CSP) as they are contract-specific. Contracting officer must send copies of all such contracts to the CSP at tpsgc.ssicontrats-isscontracts.pwgsc@tpsgc-pwgsc.gc.ca.
   4. how the use of the SA will be monitored and reported.
5. Each SA should contain clear instructions on how to use the SA and identify which departments and agencies can use them.
6. A requirement that would normally be covered by the trade agreement is still covered when solicited or contracted through the use of a supply arrangement method of supply.
   1. The use of this method of supply is considered selective tendering under the international trade agreements. A Notice of Proposed Procurement (NPP) must be posted for each separate procurement under a supply arrangement (SA) that is equal to or over the relevant trade agreement threshold(s) and rules with respect to minimum solicitation periods must be followed. For more information, see 4.10.25.5 International trade agreements and use of supply arrangements and 4.75.5 Determining the solicitation period.
   2. The use of this method of supply is considered to be a standing arrangement under the Canadian Free Trade Agreement (CFTA). For standing arrangements under the CFTA, the procuring entity must indicate how subsequent purchases will be made from a supplier when issuing the call for the standing arrangement.

3.50 Procurements subject to trade agreements

Effective date: 2012-01-18

3.50.1 General procurement

Effective date: 2020-11-19

1. For procurements subject to one or more of Canada's trade agreements, public advertisement/notification provisions specified within the trade agreements must be followed. This includes any mini-tenders for procurements made against a supply arrangement. The procedures to be followed are generally consistent for all of the agreements. When there are inconsistencies, the contracting officer must select the provisions that demonstrate the highest example of openness, for example, the longer of two solicitation periods.
2. The provisions for public advertisement/notification are described in each of the trade agreements, including:
   1. Canada-European Union Comprehensive Economic and Trade Agreement, Article 19.6: Notices;
   2. World Trade Organization - Agreement on Government Procurement, Article VII: Notices;
   3. Canadian Free Trade Agreement, 'Tender Notices' Article.
3. For more information on determining when the trade agreements apply, see Section 1.25.3 Determining coverage under a trade agreement.
4. With certain exceptions, competitive procurements subject to trade agreements must be advertised on the Government Electronic Tendering Service (GETS) through the Buyandsell.gc.ca Tenders site. In appropriate circumstances, potential suppliers may be contacted directly after the notice has been posted, in accordance with the procedures outlined in 4.75.35 Contacting suppliers directly during the solicitation period.

3.50.5 Applicability of trade agreements to standing offers and supply arrangements

Effective date: 2019-11-28

1. Contracting officers must determine whether any or all of the trade agreements apply to each procurement.
2. The applicability of the trade agreements to standing offers and supply arrangements depends on three factors:
   1. if the department for which the standing offer or supply arrangement is intended is subject to the agreement(s);
   2. if the good or service is subject to the agreement(s); and,
   3. if the total estimated value of all the call-ups (contracts) against a standing offer or all contracts under a supply arrangement (which determines the total estimated value of the offer or arrangement) is at or above the trade agreement threshold.
3. The total estimated value is determined before tendering, at which time it is identified whether or not any of the trade agreements apply. If they do apply, SO and SA are solicited in accordance with the agreements.
4. Under a Standing Offer, call-ups do not constitute separate procurements for trade agreement purposes and can be made without reference to trade agreement procedures, provided the procedures set out in the SO for making call-ups is followed.
5. Under a Supply Arrangement, the subsequent individual contracts cannot be made under the SA without having considered, whether at the RFSA stage or at the point of placing an individual contract, trade agreement applicability and procedural obligations.
6. For more information on determining coverage, see Section 1.25.3 Determining coverage under a trade agreement.
7. For more information on trade agreements and the use of supply arrangements, see 4.10.25.5 International trade agreements and use of Supply Arrangements to 4.10.25.20 Ongoing qualification process.

3.51 Office of Supplier Integrity and Compliance overview

Effective date: 2024-05-31

1. To strengthen the integrity of procurement and to ensure that the Government does business with ethical suppliers in Canada and abroad, the Government of Canada implemented a government-wide Integrity Regime for procurement and real property transactions. With the implementation of an enhanced program and updated Ineligibility and Suspension Policy in 2024, the Regime has been replaced with the Office of Supplier Integrity and Compliance (OSIC). The Office fosters ethical business practices, ensures due process for offerors and contractors and upholds the public trust in the procurement process. It is transparent, rigorous and consistent with best practices in Canada and abroad, while supporting transparent competition and an ethical Canadian marketplace. Updates to the Ineligibility and Suspension Policy include new triggers that can lead to ineligibility or suspension; expanded consideration of business ethics and corporate social responsibility as grounds for suspension or ineligibility; and, greater flexibility to respond in a manner that is commensurate with the identified risk.
2. The OSIC is administered by Public Works and Government Services Canada (PWGSC) under the authority of the Department of Public Works and Government Services Act, the Financial Administration Act as well as through the operation of Memoranda of Understanding that have been concluded with other federal departments, agencies and certain crown corporations. The OSIC will administer the Ineligibility and Suspension Policy and requirements of the Ineligibility and Suspension Policy Clauses.
   
   Note: Contracting officers should become familiar with the content of the Ineligibility and Suspension Policy.
3. The Ineligibility and Suspension Policy applies to supply contracts, construction contracts, real property contracts, and service contracts. All offers and contracts, including those that will result in a pre-qualified list, must include the Ineligibility and Suspension Policy Clauses. As the Policy is incorporated by reference, all exceptions provided by the Policy will therefore apply. Specific exceptions are found in Section 2 Application of the Ineligibility and Suspension Policy.
4. The Government of Canada may enter into contracts with offerors that would otherwise be ineligible to be awarded a contract or suspended through mechanisms provided in the Ineligibility and Suspension Policy (i.e. Public Interest Exceptions and Administrative Agreements). Additional information regarding Administrative Agreements and Public Interest Exceptions are provided in Section 9 Public Interest Exceptions and Section 10 Administrative Agreements of the Ineligibility and Suspension Policy, as well as in Section 4.21.1 Administrative Agreements and 4.21.2 Public Interest Exception of the Supply Manual.
5. Details on the integrity process are described in the following sections:
   • 4.21 Ineligibility and Suspension Policy Clauses;
   • 4.45 Certifications and additional information;
   • 5.16 Integrity compliance;
   • 6.4.1. Annex: Approval authorities and additional signing authorities in support of clients' programs only - other than for Canadian Commercial Corporation;
   • 8.70.2 Compliance with the Ineligibility and Suspension Policy Clauses;
   • 8.70.5 Amending contracts; and
   • 8.90 Assignment of contracts.

3.55 Contract security requirements (personnel or organization)

Effective date: 2022-05-02

Contracting officers should take into account security requirements when developing the procurement strategy, or the project plan, and also when determining the procurement schedule as security screening timelines can influence these acquisition gates. Security requirements can be present throughout the entire project (from planning through execution) or at certain phases as the project is being executed. Procurement strategy and approval documents should identify the existence of any security requirements.

3.55.1 Security and timelines

Effective date: 2022-05-02

1. Procurement schedules must take into account that the organization, personnel, physical and IT security screening processes may take a considerable length of time. The contracting officer must provide as much lead time as possible to the Contract Security Program (CSP) to process organization or personnel security screenings, as well as to give time to bidders to implement security recommendations before contract award.
2. For all procurements with security screening requirements, contracting officers must include the Application for Registration (AFR) form (accessible only on the Government of Canada network) with their bid solicitation documents. Bidders are required to complete and submit the AFR form along with their bid. Contracting officers must submit the completed AFR forms to the CSP. For more information on the AFR process, please visit the CSP website.
   Note: If potential foreign-based suppliers are identified by the client when issuing the requisition, the client must contact the CSP's International Industrial Security Directorate (IISD) for the applicable clauses. PWGSC contracting officers must also contact the CSP prior to contract award for verification of security with foreign government partners, as appropriate. If security clearances are required for foreign-based suppliers, the timeframes required to provide them could have a significant impact on the procurement schedule. The CSP's IISD can be reached at tpsgc.dgsssiprojetintl-dobissintlproject.pwgsc@tpsgc-pwgsc.gc.ca.
3. Foreign ownership, control or influence (FOCI): When requested, the bidder has 30 days from the request date to submit all the required documents to the CSP. Timelines for processing FOCI evaluations depend on the complexity of the structure of the organization being evaluated and the timelines of other involved stakeholders in the FOCI evaluation process. Information discovered during the evaluation may impact the timelines for the completion of the FOCI evaluation.

3.60 Low dollar value procurements

Effective date: 2020-05-04

1. Requirements below $25,000 for goods and below $40,000 for services and construction, including all applicable taxes, are considered to be low dollar value (LDV) procurements.
2. All LDV procurements will be conducted in accordance with the provisions of the Directive on the Processing of Low Dollar Value Procurement (available on GCpedia - Acquisitions Program Policy Suite [accessible only on the Government of Canada network]).

3.60.1 Requirements

Effective date: 2020-05-04

1. When proceeding with a Low Dollar Value (LDV) requirement, contracting officers:
   1. must not split or artificially divide requirements to meet the LDV threshold (see 6.1 General);
   2. must use the most efficient and cost effective approach to select a contractor, either by soliciting bids or by directing the requirement to a sole supplier when it is not cost effective to solicit bids;
   3. must determine the most appropriate procurement strategy for each LDV requirement in order to obtain best value and ensure the timeliness and cost effectiveness of each contract, while respecting Public Works and Government Services Canada's guiding principles, which include client service, competition, accountability and equal treatment (see 1.10.5 Guiding principles);
   4. must complete a risk assessment (see 3.1.5 Procurement risk assessments for Complexity Level 1, 2 and 3 procurements);
   5. must document the procurement file with the rationale to support the procurement strategy, and the basis on which the estimated value of the contract, that is, below $25,000 for goods and below $40,000 for services and construction, was established.
2. Electronic tools are available for the identification and selection of a supplier on a competitive or a directed basis. Examples of such tools include:
   1. Supplier Registration Information (SRI) system;
   2. Automated Vendor Rotation System (AVRS);
   3. SELECT;
   4. Government Electronic Tendering Service (GETS);
   5. telephone and online trade directories.

3.60.5 Geographic factors and low dollar value

Effective date: 2013-04-25

This section has been removed as per ARCHIVED - Policy Notification 91R1 - Debriefings.

For reference purposes, section 3.60.5 is available in the Supply Manual Archive, Version 2013-3 (accessible only on the Government of Canada network).

3.65 Green procurement strategy

Effective date: 2021-12-02

1. Successful implementation of the Policy on Green Procurement requires the identification and implementation of environmental performance opportunities at both the strategic and operational levels, taking into consideration specific departmental buying patterns, sustainable development targets and other Government of Canada priorities.
2. In developing the procurement strategy, departments must consider opportunities to advance the protection of the environment and support sustainable development. Contracting officers must document the environmental considerations and decisions taken in relation to the integration of environmental requirements.
3. For commodities under the commodity management framework, contracting officers must develop a green procurement plan and procurements must be done in accordance with this plan. The completed plan serves as an example of green procurement best practices.
4. Contracting officers can refer to Annex 2.2: Green procurement: environmental factors and evaluation indicators to identify those factors which need to be addressed in the procurement strategy.

3.70 Procurement review

Effective date: 2020-05-04

This section has been removed as per Policy Notification 138 - Changes to the Procurement Review Policy.

For reference purposes, section 3.70 is available in the Supply Manual Archive, Version 2019-3 (accessible only on the Government of Canada network).

3.75 Procurement Assistance Canada

Effective date: 2021-12-02

3.75.1 Procurement Assistance Canada's role

Effective date: 2021-12-02

Procurement Assistant Canada (PAC), supports the participation of smaller and diverse businesses in the federal government procurement process by:

1. Working with a cross-country network of partner organizations that supports under-represented supplier communities;
2. Helping smaller and diverse businesses become aware of the opportunity to participate in federal procurement, learn how to find opportunities, and navigate the government procurement system;
3. Working to understand barriers and impacts to small and diverse business communities by collecting data about business communities to inform departmental policies, programs and services;
4. Identifying barriers and making recommendations to improve specific procurements, as well as the procurement process as a whole;
5. Providing advice to PWGSC procurement specialists on strategies to reduce barriers in procurement and industry engagement activities to support inclusive procurement opportunities;
6. Acting as a central point of contact for over 100 federal client departments, providing support and guidance for their procurement needs;
7. Engaging with provinces, territories and international partners to facilitate the sharing of best practices and potential collaboration on procurement modernization;
8. Maintaining the Buyandsell.gc.ca website that provides information on tendering opportunities, procurement policies, as well as procurement-related news and events.

For more information, visit the Procurement Assistance Canada website.

3.75.5 Public Works and Government Services Canada online tools/services and Procurement Assistance Canada's role

Effective date: 2021-12-02

Procurement Assistance Canada (PAC) offers the following demonstrations of online tools to individuals and groups:

1. The Government Electronic Tendering Service (GETS) is where the Government of Canada posts bid solicitations (or tenders) and allows suppliers to search for bid opportunities on line. GETS, on Buyandsell.gc.ca, is the central access point for federal government procurement information based on the principles of Open Data. Buyandsell.gc.ca makes it easier to find procurement information by enabling the simultaneous searching of multiple datasets. Government procurement professionals can find more information at the Tender Management Application minisite.
2. Supplier Registration Information (SRI) service: Directory of suppliers who want to do business with the federal government. This database is accessible to all federal government buyers and administrative authorities. It is important that suppliers register with SRI as this database is the start of the contracting process.
3. Use Contacts for GSIN Codes to find contact information for the division responsible for the procurement of your good or service. This service connects every active Goods and Services Identification Number (GSIN) code to a PWGSC contact with exception of IT infrastructure services related to email, data centres and telecommunications. The responsibility for the contracting of these commodities is with Shared Services Canada. For more information, visit the Contacts for GSIN Codes page.
4. The SOSA App is a secure, web-based application that allows federal government users and authorized provincial and territorial identified users to use and view federal standing offers and supply arrangements in one location. The SOSA App also improves searching and viewing agreements for all users, as well as enabling federal buyers to manage their own agreements. For more information visit the About the Standing Offers and Supply Arrangement Application (SOSA App ) page.
5. Procurement opportunities from the North Atlantic Treaty Organization (NATO) Support and Procurement Agency (NSPA) are available on Buyandsell.gc.ca. Canadian businesses can find the NSPA opportunities easily through the search function. Businesses can also subscribe to the Email Notification Services (ENS) to be notified of a new opportunity from the NSPA. To find out more about NSPA opportunities, visit the Tenders from the North Atlantic Treaty Organization (NATO) Support and Procurement Agency (NSPA) page.
6. Contract History Letter: a letter that a supplier may use as a reference when bidding on work. The letter lists the contracts that have been awarded to a business by Public Works and Government Services Canada (PWGSC). This is a useful service if a supplier requires proof of having done business with the Government of Canada, for example if a supplier wants to bid on international opportunities. For more information, visit the Request your own Supplier Contract History Letter page.

3.80 Requisitions subject to Comprehensive Land Claims Agreements (CLCAs)

Effective date: 2015-09-24

Contracting officers who receive a requisition that may be subject to Comprehensive Land Claims Agreements (CLCAs) must consult 9.35 Comprehensive Land Claims Agreements (CLCAs) for information on the CLCA obligations that have to be addressed during the procurement process.

3.85 Procurement Strategy for Indigenous Business

Effective date: 2022-05-12

All federal government departments are encouraged to set-aside some procurements for competition by Indigenous suppliers provided operational requirements are fully met. For more information on the Procurement Strategy for Indigenous Business, see 9.40 Procurement Strategy for Indigenous Business.

3.90 Contracting with former public servants

Effective date: 2020-05-04

1. Contracts with former public servants in receipt of a pension or of a lump sum payment must bear the closest public scrutiny, and reflect fairness in the spending of public funds.
2. A former public servant is any former member of a department as defined in the Financial Administration Act, a former member of the Canadian Armed Forces or a former member of the Royal Canadian Mounted Police. A former public servant may be:
   1. an individual;
   2. an individual who has incorporated;
   3. a partnership made of Former Public Servants, or
   4. a sole proprietorship or entity where the affected individual has a controlling or major interest in the entity.
3. Retirement Waiting Period
   When contracting with a former public servant or a former public officer holder, the provisions of the Conflict of Interest Act, the Post-Employment Measures contained in the Values and Ethics Code for the Public Service, and the Conflict of Interest and Post-Employment Code for Public Office Holders apply. These codes provide information on the applicability of the retirement waiting period. The retirement waiting period does not apply to former members of the Canadian Forces or the Royal Canadian Mounted Police (RCMP).
4. Approval Authority
   Contracting officers must indicate in the approval document that a contract will be issued to a former public servant and provide a justification for contracting with the former public servant that includes price substantiation, risk mitigation and any cost control measures where applicable, to adjust for pension or lump sum payments.
5. Ministerial approval may be required for contracting with former public servants. For more information, see Annex 6.4.1: Approval authorities and additional signing authorities in support of clients' programs only - other than for Canadian Commercial Corporation, section 1.1.1.
6. When seeking the Minister's approval to enter into a contract with a former public servant, the request must document a justification for contracting with the former public servant that includes price substantiation, risk mitigation and any cost control measures where applicable, to adjust for pension or lump sum payments.
7. The use of the fee abatement formula is not mandatory, but remains an optional cost control measure that can be applied as needed for non-competitive contracts.
8. Fee Abatement
   1. For non-competitive service contracts with former public servants in receipt of a pension, the fee abatement formula has historically been applied in the determination of the maximum fee payable as part of a one-year fee abatement period.
   2. For former public servants that were subject to a workforce adjustment measure, the application of the fee abatement formula can be postponed to have it begin at the conclusion of the lump sum payment period for non-competitive service contracts with former public servants in receipt of a pension and a lump sum payment. See subsection i. below.
   3. Fee Abatement Formula
      
      where formula variables correspond to:

      D = maximum payable per diem rate;

      M = maximum salary of the former public servant, updated to the current level, or the estimated salary cost of having the work done by a qualified public servant;

      F = cost of usual fringe benefits, 30 percent;

      P = total annual pension in pay.

      Example:

      Maximum salary = $60,000; benefits are 30 percent of salary;
      Pension after 35 years of service = $42,000 ($60,000 x 0.7);
      Per Diem= (60,000 + 18,000)/260 - 42,000/260 = $138.46

      Note: A "pension" means a pension or annual allowance paid under the Public Service Superannuation Act (PSSA) and any increases paid pursuant to the Supplementary Retirement Benefits Act, as it affects the PSSA. It does not include pensions payable pursuant to the Canadian Forces Superannuation Act, the Defence Services Pension Continuation Act, the Royal Canadian Mounted Police Pension Continuation Act and the Royal Canadian Mounted Police Superannuation Act, the Members of Parliament Retiring Allowances Act and that portion of pension payable to the Canada Pension Plan Act.

9. Workforce Adjustment Directive
   1. In addition to the requirements of the contract fee abatement policy for former public servants in receipt of a pension, the amount payable for professional fees to former public servants, whether they are in receipt of a pension or not, members of the Canadian Forces, and members of the RCMP, who have received a lump sum payment for employment termination under a workforce reduction program or adjustment initiative, has been limited during the lump sum payment period.
   2. Contract fee limits should otherwise not apply if the contract is not specifically for the services of a former public servant.
   3. Historically, the "lump sum payment period" is defined as the period measured in weeks of salary, for which payment has been made to facilitate the transition to retirement or to other employment as a result of the implementation of various programs to reduce the size of the Public Service. The lump sum payment period did not include the period of severance pay, which is measured in a like manner.
   4. For non-competitive service contracts awarded to a former public servant during the lump sum payment period, the total amount of fees that may be paid, may be limited by the terms of a workforce adjustment made pursuant to the Directive, including applicable taxes. The contract fee limit policy applies to all former public servants, including former members of the Canadian Forces and the Royal Canadian Mounted Police, in receipt of a lump sum payment.
   5. Reasonable overhead costs, such as travel expenses must be excluded from any prescribed limit. Nevertheless, due to the sensitivity of these contracts, these costs should be strictly controlled. Minister approval must be sought prior to entering into a non-competitive contract with a former public servant, if they are in 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 Workforce Reduction Directive made pursuant to the Public Sector Compensation Act, or former members of the Canadian Armed Forces or 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.
   6. When a former public servant works as a salaried employee of, or a subcontractor to, an established supplier contracting with Canada, the contract fee limit policy does not apply.
10. Proactive Disclosure
    Departments are required to include information on service contracts and contract amendments awarded to a former public servant in receipt of a Public Service Superannuation Act (PSSA) pension on the Open Government portal. For further information, consult the Guidelines on the Proactive Disclosure of Contracts on the Treasury Board of Canada Secretariat website.

3.95 Intellectual Property (IP)

Effective date: 2023-06-08

1. Before issuing a solicitation or awarding a contract, the contracting officer must identify what Intellectual Property (IP) is already existing before contract award and, conversely, what Intellectual Property (IP) will be generated as a result of the contract. In addition to reducing future costs, disputes can be avoided by being clear upfront.
2. IP is anything resulting from a contract that can be copyrighted, trademarked, patented, licensed, etc. Potentially, any contract can have IP. The likelihood for IP is much greater where the goal of the contract is something new, or might incorporate new processes. IP considerations are most relevant to research and development contracts, software development, or where the production of new written material occurs. A definition of "Intellectual Property" and Intellectual Property Rights" can be found in Standard Acquisition Clauses and Conditions Manual general conditions 2040.
3. Contracting officers can find complete details on the IP policy as per following Treasury Board policies:
   1. Policy on Title to Intellectual Property Arising Under Crown Procurement Contracts
   2. Implementation Guide for the Policy: Title to Intellectual Property Arising Under Crown Procurement Contracts.
4. The default position of the government policy is to allow contractors to retain the rights to IP generated under government contracts. This is designed to promote the commercialization of new ideas, under the premise that the private sector has a greater capacity in this regard. Exceptions are described in the Policy references above.
5. The contracting officer must therefore determine at the planning stage, how IP will be handled, what IP is anticipated and how the IP will be identified and secured for the use of the client and Canada. Once again, this process can have very long timeframes and can have extremely complex processes. The greatest pitfall with IP is in not identifying what is the foreground information and the background information upfront and if left to the end of the contract, Canada is at a severe disadvantage.
6. The client department must decide to what extent IP rights are to be retained by Canada. However, the contracting officer should discuss with the client department their needs in order to ensure that the client department is aware of the extent to which PWGSC can obtain for them the rights they need to use the IP created under their contract, whether Canada or the contractor owns the IP. For instance, subject to industry practice, Canada may not be able to obtain IP ownership, even when desired. In such cases, Public Works and Government Services Canada (PWGSC) contract clauses are designed with the goal of ensuring that even where the contractor owns the IP, this does not affect the client department's ability to use the IP, except that such use would not extend to commercialization of the IP by Canada.
7. A summary of PWGSC's contractual options is shown in the table below.

Table 1: Contractual Options for Ownership of Intellectual Property

Intellectual Property Options	Research and Development (R&D)	Goods with Associated R&D	Goods with no R&D Expected	Services with no R&D Expected
Default	Contractor to Own IP	Contractor to Own IP	Canada to Own Copyright	Canada to Own Copyright
Option	Canada to Own IP	Canada to Own IP	Contractor to Own IP, including Copyright	Contractor to Own IP, including Copyright
Client Department says no IP	Not applicable	Not applicable	No IP Terms in the Contract	No IP Terms in the Contract

 

3.100 Vendor Performance Corrective Measures

Effective date: 2011-06-29

For more information on the Vendor Performance Corrective Measure Policy, contracting officers should consult section 8.180 Vendor Performance Corrective Measure Policy; For more information on rejection of bids/offers/arrangements based on Vendor Performance Corrective Measures, see section 5.55 Rejection of bids/offers/arrangements.

3.105 National Security Exceptions

Effective date: 2012-01-18

3.105.1 Trade agreements and invoking a national security exception

Effective date: 2018-12-06

The national security exception (NSE) provided for in all of Canada's trade agreements allow Canada to exclude a procurement from some or all of the obligations of the relevant trade agreement(s), where Canada considers it necessary to do so in order to protect its national security interests specified in the text of the NSE. The purpose of the NSE is to ensure that parties to the agreements are not required in any way to compromise their national security interests through application of the obligations of the trade agreements.

3.105.5 Texts of the national security exceptions

Effective date: 2021-12-02

1. The relevant text for each trade agreement can be found as follows:
   1. for CETA, Article 19.3: Security and general exceptions in Chapter 19;
   2. for WTO-AGP, Article III: Security and General Exceptions;
   3. for CPTPP, Article 29.2: Security Exceptions in Chapter 29;
   4. for the Canada-UK TCA, Article I;
   5. for the Canada-Chile Free Trade Agreement, Article Kbis-16: Exceptions;
   6. for the Canada-Colombia Free Trade Agreement, Article 1402: Security and General Exceptions in Chapter 14;
   7. for the Canada-Honduras Free Trade Agreement, Article 17.3: Security and General Exceptions in Chapter 17;
   8. for the Canada-Korea Free Trade Agreement, Article 22.2, National Security in Chapter 22
   9. for the Canada-Panama Free Trade Agreement, Article 16.03: Security and General Exceptions in Chapter 16;
   10. for the Canada-Peru Free Trade Agreement, Article 1402: Security and General Exceptions in Chapter 14.
   11. for the Canada-Ukraine Free Trade Agreement (CUFTA), Article 10.4: Security and General Exceptions in Chapter 10;
   12. for the CFTA, Article 801: National Security.
2. The Canadian International Trade Tribunal (CITT), in its decision PR-98-005, has found that "the most senior level of substantive policy formulation and advice to the department on all Acquisition Branch activities..." has the authority to invoke the use of the National Security Exception (NSE), to exclude a procurement from Canada's trade agreements. For Public Works and Government Services Canada (PWGSC), that authority rests with the Assistant Deputy Minister(s) of the Acquisitions Program (ADM/AP).
3. Furthermore, on the basis of the authority given to the Minister under section 6 of the Department of Public Works and Government Services Act, in conjunction with paragraph 24(2)(d) of the Interpretation Act, PWGSC has decided that this specific authority will not be delegated to a lower level official because of the nature of the exception. PWGSC has further decided that an NSE will not be invoked by anyone other than the ADM /AP, where PWGSC/Acquisitions Program is the contracting authority. See the procedures for invoking an NSE in section 3.105.10.
4. Invoking an NSE under the trade agreements does not affect the obligation to comply with the Government Contracts Regulations (GCRs), including such matters as sole source justifications, other sourcing strategy issues and contracting officer limits. Procurements for which an NSE is invoked and applied remain subject to other relevant regulations and governmental and departmental policies, which may include posting a Notice of Proposed Procurement (NPP) or an Advance Contract Award Notice (ACAN) on the Government Electronic Tendering Service (GETS) where appropriate, though the security requirements may, in some cases, preclude such actions.
5. If the NSE has been invoked and applied to a procurement, the contracting officers must insert the following statement in all notifications to suppliers and in all tender documents: "This procurement is subject to national security exception and is, therefore, excluded from all of the obligations of the trade agreements."

3.105.10 Procedures for invoking a national security exception

Effective date: 2021-04-01

1. All requests to invoke an NSE to exclude a procurement from a trade agreement, or any combination of the agreements, will normally be submitted by the client department to the ADM/AP for approval, regardless of dollar value, where PWGSC/AP is the contracting authority.
2. A request must be in the form of a letter from the responsible ADM level equivalent at the client department. The letter must explain the nature of the proposed procurement and, depending upon which trade agreement(s) applies, how it relates to:
   1. Canada's "national security interests" or, pursuant to Canada's international obligations, "the maintenance of international peace and security". (CFTA: Article 801); and/or
   2. Canada's "essential security interests relating to the procurement of arms, ammunition or war materials, or to procurement indispensable for national security or for national defence purposes". (CETA: Article 19.3 (1) / WTO-AGP: Article III (1) / CPTPP: Article 29.2 / Canada-Chile: Article Kbis-16 (1) / Canada-Colombia: Article 1402 (1) / Canada-Honduras: Article 17.3 (1) / Canada-Korea: Article 22.2 / Canada-Panama: Article 16.03 (1) / Canada-Peru: Article 1402 (1) / Canada-UK TCA: Article I / Canada-Ukraine: Article 10.4 (1)).
3. In reviewing requests to invoke the NSE, the ADM/AP will consider only the issue of whether or not to invoke the NSE and will not consider at that time, other matters such as procurement methods, procurement plans or authority to enter into the contract. Client departments should work with the PWGSC contracting officer to determine which method of procurement be used, in parallel with any request for approval of an NSE. In situations where the NSE is invoked and applied to the procurement, it remains government policy to compete the requirement, subject to the exceptions to competitive contracting provided in the Government Contracts Regulations(GCRs).
4. Requests for an NSE are reviewed by the Specialized Services for Procurement Group (SSPG) of the Procurement Support Services Sector (PSSS) before the approval of the ADM/AP is sought. Once the ADM/AP has made a decision whether or not to invoke an NSE, the ADM/AP will advise the client department in writing of the decision. For the approval process for NSE, see section 1.1.4 of Annex 6.4.1: Approval authorities and additional signing authorities in support of clients' programs only - other than for Canadian Commercial Corporation.
   Note: Contracting officers seeking advice to aid client departments in properly framing and requesting an NSE should contact SSPG via email at tpsgc.ersnceasns-nsensscc.pwgsc@tpsgc-pwgsc.gc.ca. It is strongly recommended that a draft of the NSE request letter be forwarded to SSPG for review before having it signed by the responsible ADM at the client department. For a template of the NSE request letter, contact SSPG.
5. Following the invocation of an NSE, the contracting officer must state in all procurement documents that an NSE has been invoked and is being applied to the requirement. The rationale for the invocation, and the specific trade agreements from which the procurement is being excluded, are to be identified in the procurement approval documents. A copy of the NSE approval letter must be kept on file.

3.110 Legal Services

Effective date: 2014-09-25

1. All Legal Services lawyers are officers of the Department of Justice. The role of the PWGSC Legal Services is to provide legal services to PWGSC. Legal services relating to procurement must be sought only from the PWGSC Legal Services or from a regional office of Justice Canada, when the latter has agreed along with PWGSC Legal Services to provide counsel to a particular region. Legal Services involvement in the review of proposed contractual documents is intended to:
   1. ensure that contracts are legally binding and enforceable and precisely reflect the intended relationship between Canada and the contractor;
   2. ensure that the respective obligations of the parties are expressed clearly and that the interest of Canada are protected;
   3. identify the consequences of any changes to standard general conditions in terms of the additional risk and liability being assumed by Canada.
2. Whenever legal involvement is required, contracting officers must provide the legal counsel involved with access to all required documents and files. Legal counsels should be given the opportunity to review procurement documents at an early stage in the procurement process to facilitate the making of informed business decisions and incorporation of any required changes. For the procurement of goods and services, this means before the issuance of bid solicitations and requests for standing offers or for supply arrangements. For anything related to the administration of the contract, standing offer or supply arrangement, Legal Services must be consulted before any binding action is taken by contracting officers.
3. Contracting officers must seek legal advice:
   1. if determined through the application of a procurement risk assessment;
   2. for contracts containing special conditions or deviations from PWGSC or Canadian Commercial Corporation general and supplemental conditions;
   3. in all situations where the work has been completed pursuant to a verbal request from a representative of a client and a confirming order has to be prepared;
   4. in all situations where a security must be obtained to ensure repayment of a debt or satisfaction of an obligation to Canada, particularly for all contracts under which payment is secured by means of a letter of credit;
   5. for all letters of comfort, letters of intent and go-ahead letters;
   6. for all contracts where questions may arise regarding conflict of interest issues or the post-employment code for former public servants;
   7. for all letters of credit;
   8. for any proposed assignment of a contract to a third party;
   9. for any case of receivership, insolvency or bankruptcy of a contractor;
   10. for all terminations for default, convenience and mutual consent;
   11. for all defence contracts where the provisions of section 20 of the Defence Production Act respecting title to any government issue or building may be applicable;
   12. for all memorandum of understanding and drafting of orders in council;
   13. for all conditional amendments (see 8.180 Vendor Performance Corrective Measure Policy).
4. Legal Services can also be contacted about any matter in respect of which a contracting officer believes legal advice would be appropriate or helpful. Some of these situations are identified below:
   1. any proposed contract for services involving the possible development of an employee-employer relationship;
   2. any proposed contract where a clause providing for liquidated damages must be included to cover late delivery or unsatisfactory performance of the work;
   3. disputes arising after the contract has been awarded;
   4. for discussions or communications with outside lawyers.
5. Solicitor-Client Privilege
   1. Communications between a client and its lawyer are protected by the solicitor-client privilege and exempt from disclosure under the Access to Information Act. The solicitor-client privilege allows clients to disclose all relevant information to their legal counsel knowing that such information will remain confidential. There are however three conditions for the privilege to apply:
      1. the communication must be with a practicing lawyer occupying a legal counsel position within government (it would also include a non-government lawyer hired by the Department of Justice to provide legal services in certain circumstances);
      2. the communication must be for the purpose of giving or receiving legal advice, as opposed to policy advice or non legal matters advice;
      3. the request for legal advice and any advice given must have been intended to be confidential. A notice "protected by solicitor-client privilege" may not be sufficient to prove that the parties intended that the communication be privileged. The proof will really be found from the actions of the client who must disclose the communication only to those persons who have a direct need to know depending on the circumstances of each case. Contracting officers must be particularly careful with e-mails containing legal advice and not forward them to persons who don't have a direct need to know.
   2. All three conditions must be met for the privilege to apply. If any one of those conditions is not met, all communications between the lawyer and the client relating to the subject matter will lose their privilege status.
   3. The solicitor-client privilege is the privilege of the client, who alone can waive it either intentionally or unintentionally. Intentional waiver occurs when a client, after consultation with its legal counsel, decides to disclose the privileged communications knowing the consequences of this action. Unintentional waiver occurs when, despite the fact that the parties still intend to keep the communication confidential, it is disclosed to a third party who does not have the need to know. Once the communication is revealed to a third party who does not have a need to know, the privilege is waived. This means that the legal advice is not protected anymore and is subject to disclosure under the Access to Information Act, if no other exception applies. This also means that all other communications between the legal counsel and the client relating to the same subject may lose their privilege and protection.
   4. Communications subject to solicitor-client privilege can be subject to mandatory statutory disclosure. For example, the Auditor General Act authorizes the Auditor General to review legal advice on matters relevant to her/his auditing function. The Auditor General however cannot disclose the legal advice. The disclosure to the Auditor General does not constitute a waiver of the privilege and the information remains confidential and is still protected by the privilege.
   5. Legal advice should not be disclosed without the knowledge and recommendation of legal counsel. All questions regarding solicitor-client privilege should be brought to the attention of Legal Services.

3.115 Bidders' conferences

Effective date: 2016-01-28

1. A bidders' conference is used to provide information to suppliers and to ensure that all suppliers receive the same information. A conference must be held only when such a meeting is required for suppliers to fully understand the proposed procurement.
2. Supplier's attendance is optional, as the purpose of a bidder's conference is to provide information and opportunities for bidders to ask questions about the project and the procurement process, which can easily be done via e-mail if an interested bidder does not attend the conference. Only the information that was shared with the attendees at the bidders' conference must be shared with bidders who did not attend.
3. Whenever there is a bidders' conference planned, the Notice of Proposed Procurement (NPP) and solicitation documents must clearly state that there will be a bidder's conference and indicate the location, date and time and the level of clearance required (if the location requires that participants hold a valid security clearance).
4. SACC Manual clause A9083T should be used when a bidders' conference will be held and to provide the necessary instructions for attendance. Clause A9083T must also be used to provide location, time and administrative arrangements of the bidders' conference in the solicitation document. For Request for Standing Offers, the equivalent SACC clause is M9083T. For Request for Supply Arrangements use S0026T.
5. The bidders' conference normally takes place at the Public Works and Government Services Canada (PWGSC) office that issues the solicitation, or at another suitable location arranged by that office. It is preferable to choose a location accessible to the public so the bidders are not required to hold a valid security clearance or be escorted by a government representative.
6. While a bidders' conference is normally held as one meeting, the scope of the solicitation may dictate the need for a series of cross-country regional conferences.
7. The conference should be scheduled on a date that will:
   1. allow suppliers time to obtain and review the solicitation;
   2. allow for the preparation and distribution of minutes in sufficient time for suppliers to prepare and submit bids before the solicitation closing date;
   3. allow for bidders to obtain the required security clearance.
8. The contracting officer should request in the solicitation document that suppliers identify, in writing, before the meeting date, the names of the representatives who will attend and a list of the issues they propose to raise.
9. Before the conference, the contracting officer must prepare an agenda outlining elements to be discussed, including questions raised by suppliers. PWGSC will chair all bidders' conferences and prepare the minutes, including any clarifications or specification changes that may result in a change to the requirement. Client departments are also expected to attend and be available to answer any questions relating to the requirement.
10. The minutes of the bidder's conference must be made available to all attendees in sufficient time to allow suppliers to prepare and submit responses before the solicitation closing date. For solicitation documents originally posted on the Government Electronic Tendering Service (GETS), the minutes must also be posted on GETS; for solicitations that are not posted on GETS, the minutes must be made available to all suppliers who have already requested a solicitation document or have been invited to respond to the solicitation. The sensitivity of the information included in the minutes has to be considered when choosing the proper way of making them available.
11. Any clarifications or changes to the solicitation resulting from the bidders' conference will be included as an amendment to the solicitation. A copy of the solicitation amendments must be made available on GETS or, if the solicitation has not been posted on GETS, to all suppliers who have already requested a solicitation document or have been invited to respond to the solicitation.
12. Where practical, the use of various technical means such as video conferencing, teleconferencing or web casting could be considered to allow suppliers to participate either directly or indirectly to the conference. Video or audio recordings of the conference could be made and distributed to suppliers who were not able to attend; it is however not recommended to permit suppliers to record the conference for their own purposes.
13. Suppliers that do not attend the bidder's conference are not precluded from submitting a bid.

3.116 Site visits

Effective date: 2022-05-02

1. Attendance at site visits may be optional or mandatory. Mandatory site visits apply to all suppliers, even those who contend they are already familiar with the site in question.
2. Site visits must be arranged in conjunction with the client department. The contracting officer should always attend.
3. Whenever there is a site visit requirement, the Notice of Proposed Procurement (NPP) and solicitation documents must clearly state that there will be an optional or mandatory site visit and indicate the location, date and time, and the level of clearance required (if the location requires that participants hold a valid security clearance). To provide location, time and administrative arrangements of the site visit in the solicitation document, Standard Acquisition Clauses and Conditions (SACC) Manual clauses A9038T or A9040T must be used respectively for an optional or a mandatory site visit.
4. The need for a mandatory site visit should be carefully examined and documented on the procurement file as part of the procurement planning stage. Consideration should be given to the cost and relative hardship imposed on suppliers not in the immediate vicinity of the site when deciding if a site visit will be mandatory.
5. The requirement for holding a valid security clearance at the required level in order to access the site or have access to sensitive information or assets has to be considered when organizing a site visit as it affects the scheduling and may limit access to suppliers. SACC Manual clauses A9038T or A9040T, which must be used for optional or mandatory site visits respectively, offer options depending on whether or not security requirements are associated with the site visit.
   1. In order for the Canadian suppliers' representatives to receive personnel security clearance from the Contract Security Program (CSP), the Canadian suppliers must already have obtained organization security screening/clearance.
   2. Personnel security clearances may take time depending on the individual's history and the level of security clearance required.
   3. The contracting officer and client departments must consider alternatives if the security clearance cannot be obtained on time for the site visit. For example: Can the date of the site visit be changed? If holding a security clearance for access to sensitive information or assets is not required to access the site, can individuals simply be escorted by a government representative?
   4. Prior to the site visit, a Security Requirements Check List (SRCL) must be completed and submitted to the CSP. A Request for Private Sector Organization Screening (PSOS) and an Application for Registration (AFR) form (accessible only on the Government of Canada network) must also be submitted along with the SRCL to initiate the screening process of any suppliers that are not already registered with the CSP. Additional information on how to initiate the provisional screening clearance for bidders requiring access to sensitive information is available in section 4.30.15 Security in solicitations.
   5. The contracting officer has to confirm with the CSP that the proposed visiting suppliers or their representative(s) hold the required security clearance.
   6. It is the responsibility of the supplier's Company Security Officer to ensure that their representatives' security clearances are valid and at the required level for the site visits.
6. The site visit should be scheduled on a date that will:
   1. allow suppliers time to obtain and review the solicitation;
   2. allow suppliers time to obtain the required security clearance and for the CSP to confirm that the suppliers hold the required security clearance;
   3. allow for the preparation and distribution of minutes in sufficient time for suppliers to prepare and submit bids before the solicitation closing date.
7. In the event of a mandatory site visit, the NPP and solicitation documents must clearly state:
   1. that the site visit is mandatory;
   2. the level of clearance required (if holding a valid security clearance is required in order to access the site or to have access to sensitive information or assets); and
   3. that failure to attend will result in the bid being declared non-responsive.
8. In the event of an optional site visit, the NPP and solicitation documents must clearly state:
   1. that the visit is optional;
   2. the level of clearance required (if holding a valid security clearance is required in order to access the site or to have access to sensitive information or assets); and
   3. that suppliers who do not attend are not precluded from submitting a bid.
9. The contracting officer should request in the solicitation document that suppliers identify, in writing, before the meeting date, the names of the representatives who will attend and a list of the issues they propose to raise.
10. For solicitation documents originally posted on the Government Electronic Tendering Service (GETS), the minutes must also be posted on GETS; if the solicitation has not been posted on GETS, the minutes must be made available to all suppliers who have already requested a solicitation document or have been invited to respond to the solicitation. The sensitivity of the information included in the minutes has to be considered when choosing the proper way of making them available.
11. The client department must be instructed to advise PWGSC of any clarifications, or changes in specifications, resulting from the site visit. The original solicitation must then be amended to reflect these changes or clarifications.
12. A copy of the solicitation amendments must be made available on GETS or, if the solicitation has not been posted on GETS, to all suppliers who have already requested a solicitation document or have been invited to respond to the solicitation.

3.120 Roles and memorandum of understanding

Effective date: 2010-01-11

Contracting officers should consider client department memorandums of understanding (MOUs) when determining roles and responsibilities in the planning and management of procurements. Contracting officers should consult Annex 1.1: Matrix of responsibilities between PWGSC and client departments for the procurement of goods and services (generic) and Annex: Specific division of responsibilities agreements relative to the division of responsibilities between PWGSC and the client department, as well as 9.5.15 Memorandum of understanding with client department relative to Major Crown Projects.

3.125 Canadian Commercial Corporation

Effective date: 2017-04-27

For information on procurements on behalf of the Canadian Commercial Corporation (CCC), the roles and responsibilities of CCC and PWGSC as well as the pertinent Memorandum of Understanding (MOU), see 9.55 Canadian Commercial Corporation.

3.130 Canadian Content Policy

Effective date: 2020-11-19

1. The Canadian Content Policy is a Cabinet-mandated policy. It encourages industrial development in Canada by limiting, in specific circumstances, competition for government procurement opportunities to suppliers of Canadian goods and services.
2. Application
   1. The Policy applies to procurements carried out by Supply and Services Canada, which is now a part of Public Works and Government Services Canada (PWGSC). Therefore, this policy will normally apply to goods and services contracting carried out by PWGSC Acquisitions Branch, except for those categories of procurements which were not done by the former SSC. The Policy does not apply when another government department does its own contracting and would not normally apply to construction procurement that had been previously carried out by the former Public Works Canada.
      In addition, pursuant to a Cabinet decision, the Department of National Defence must apply the Canadian Content Policy to all applicable transactions or orders when buying or otherwise acquiring defence supplies.
   2. The Policy applies to competitive procurements with an estimated value of $25,000 or more, except for the following:
      1. government procurements subject to the international trade agreements;
      2. procurements made in furtherance of aid to developing countries, but does apply to purchases made by the Canadian International Development Agency (CIDA) on its own account;
      3. procurements made by PWGSC Acquisitions offices located outside Canada; and
      4. other Cabinet-mandated sourcing, including sourcing related to industrial and regional benefits, shipbuilding, ship repair, refit and mid-life modernization.
3. Canadian Goods and Services
   1. A good wholly manufactured or originating in Canada is considered a Canadian good. A product containing imported components may also be considered Canadian for the purpose of this policy when it has undergone sufficient change in Canada in a manner that satisfies the definition specified under the Canada-United States-Mexico Agreement (CUSMA) Rules of Origin. For the purposes of the Canadian Content Policy, the reference to "territory of one or more of the Parties" in the CUSMA Rules of Origin is to be replaced with "Canada".
   2. A service provided by an individual based in Canada is considered a Canadian service. Where a requirement consists of only one service, which is being provided by more than one individual, the service will be considered Canadian if a minimum of 80 percent of the total bid price for the service is provided by individuals based in Canada.
   3. Other Canadian Goods and Services: Textiles are considered to be Canadian goods according to a modified rule of origin, copies of which are available from the Clothing and Textiles Division, Commercial and Consumer Products Directorate (CCPD).
   4. For further information on the determination of origin of goods and/or services under the Canadian Content Policy, refer to Annex 3.6: Canadian Content Policy: rules of origin determination.
4. Preparing a Bid Solicitation
   1. When a requirement is covered by the Canadian Content Policy, the contracting officer must first determine whether there are two or more eligible suppliers in the marketplace. Eligible suppliers are those supplying Canadian goods and/or services that could potentially meet the requirement.
   2. Next, based on the number of eligible suppliers, the contracting officer must decide whether a requirement will be solely or conditionally limited to suppliers of Canadian goods and/or services, or whether the procurement will be open to all suppliers.
      1. Solely Limited: the bid solicitation or request for standing offers will be solely limited to suppliers who could offer Canadian goods and/or services when the contracting officer believes there exists, in the marketplace, two or more such suppliers.
         1. Certifications for competitive procurement solely limited to Canadian goods and/or services are provided in the Standard Acquisition Clauses and Conditions (SACC) Manual, under clause numbers: A3051T, A3052T, A3053T, A3055T, A3056T and A3059T for bid solicitations; and M3051T, M3052T, M3053T, M3055T, M3056T and M3059T for requests for standing offers.
         2. Except for bids that will be publicly opened, the contracting officer will determine whether:
            1. the bidder will be required to submit the completed certification of Canadian content with the bid, or
            2. the bidder should submit the completed certification with the bid, but it is not mandatory. If the certification is not completed or submitted with the bid, the contracting officer will contact the bidder and provide the bidder with a timeframe within which to submit the completed certification. The contracting officer will normally not require bidders to submit certifications with their bid unless the requirement is urgently needed by the client.
         3. For publicly opened bids, the bidder will be required to submit the completed certification with the bid.
      2. Conditionally Limited: the bid solicitation or request for standing offers will be conditionally limited when the contracting officer is uncertain whether two or more suppliers of Canadian goods and/or services exist.
         1. Certifications for competitive procurement conditionally limited to Canadian goods and/or services are provided in the SACC Manual, under clause numbers: A3061T, A3062T, A3063T, A3065T, A3066T and A3069T for bid solicitations; and M3061T, M3062T, M3063T, M3065T, M3066T and M3069T for requests for standing offers.
         2. The bidder will be required to submit the Canadian content certification with the bid.
      3. Open: when the contracting officer is of the opinion that two or more suppliers of Canadian goods and/or services do not exist, the bid solicitation or request for standing offers will be open to all suppliers. Bidders are not required to provide a certification.
   3. Once the sourcing strategy is determined, the contracting officer will prepare a Notice of Proposed Procurement (NPP). The procurement opportunity will be coded on the Government Electronic Tendering Service (GETS) as:
      1. Solely Limited, Code O-5;
      2. Conditionally Limited, Code O-4; or
      3. Open, Code O-1.
   4. Where a procurement is subject to the Canadian Content Policy, and the competition has been solely or conditionally limited, the bidder must certify the Canadian content by submitting a certification that the good or service offered meets the definition of Canadian goods and/or services.
      1. When requirements consist of more than one good and/or service, the contracting officer must decide, at the procurement planning stage, whether the Canadian content certification will be done on an aggregate or individual basis:
         1. aggregate: multi-item requirements will be certified on an aggregate basis. A minimum of 80 percent of the total bid price must consist of Canadian goods to meet the requirements of the Policy; or
         2. item by Item: multi-item requirements awarded on an item by item basis will be certified on an item-by-item basis. In these cases, suppliers will be asked to identify separately, each item that meets the definition of Canadian goods.
      2. For requirements consisting of more than one service, a minimum of 80 percent of the total bid price must be provided by individuals based in Canada.
      3. For requirements consisting of a mix of goods and services, 80 percent of the total bid price must consist of Canadian goods and Canadian services. See Annex 3.6: Canadian content policy: rules of origin determination for an example of how to determine whether a mix of goods and services meets the 80 percent rule.
      4. A bid can be accepted in part without resubmission of a certification.
5. Bid Handling
   1. The supplier is responsible to demonstrate that its bid meets the definition of Canadian goods and/or services and must submit a completed certification. When the SACC Manual clauses: A3052T and A3062T for bid solicitations; and M3052T and M3062T for requests for standing offers are used, the supplier must clearly identify the status of each individual product.
   2. Bids to which the Canadian Content Policy applies will be evaluated as follows:
      1. If the procurement process was solely limited to Canadian goods and/or services, and
         1. the bidder was required to submit the certification with the bid, only bids with a valid certification will be evaluated. The bid evaluation process can proceed where there is at least one bid with a valid certification otherwise the bid solicitation must be reissued; or
         2. the bidder was not required to submit the certification with the bid, the contracting officer will contact the bidder and provide the bidder with a timeframe within which to submit the completed certification. If the bidder does not comply by submitting the completed certification within the prescribed timeframe, the bid will be declared non-responsive. A bid will only be provided to the client department for evaluation once the completed certification is received. The bid evaluation process can continue as long as there is at least one bid with a valid certification otherwise the bid solicitation must be reissued.
      2. If the procurement process was conditionally limited to Canadian goods and/or services, the contracting officer will determine if there are two or more bids that come from two or more bidders that are not affiliated within the meaning used in the Competition Act, R.S.C., 1985, c. C-34, with a valid Canadian content certification. It is recommended that contracting officers make this determination as the first step in the evaluation process; however, contracting officers may conduct the validation of Canadian content certifications at any time in the evaluation process including concurrently with other steps.
         
         In the event two or more bids with a valid Canadian content certification have been received from two or more unaffiliated bidders, the evaluation will be limited to the bids with the certification, and only those bids with a valid certification will be eligible to be awarded the contract. If fewer than two bids from two unaffiliated bidders with a valid Canadian content certification are received, then all bids will be evaluated and are eligible to be awarded the contract. If at any point in the evaluation process it is found, whether by determination of invalidity of certifications, determination that bids are non-responsive or withdrawal of bids by bidders, that there are no longer two or more responsive bids coming from two or more unaffiliated suppliers with a valid certification, then all responsive bids will be eligible to be awarded a contract. (See SACC Manual clause A3070T.)
   3. PWGSC may verify the validity of the certification. If the certification is declared non-responsive, then the offered goods and/or services are deemed not to meet the definition of Canadian content. Verification of the certification must in no way alter the price quoted or any substantive element of the bid.
6. Contract Award
   Contracts awarded on the basis of the bid having met the definition of Canadian content under the Canadian Content Policy will include SACC Manual clause A3060C or M3060C, as applicable.
7. Canadian Content and CLCA or PSAB
   Please contact tpsgc.rcndgaertgsaea-ncrabclcapsab.pwgsc@tpsgc-pwgsc.gc.ca for guidance and advice on these situations.
8. Discretionary Audits and Reviews
   The authority for discretionary audits results from either the contractual terms, or statute (Defence Production Act, section 19). If a contracting officer has concerns about the certification of Canadian content under the Canadian Content Policy, the contracting officer should discuss the use of a discretionary audit or review with their management and with the Acquisitions Program Policy Directorate.
9. For more information on determining Rules of Origin under the Canadian Content Policy, see Annex 3.6: Canadian Content Policy: rules of origin determination.
10. For further information on the Canadian Content Policy, please contact the Trade Agreements Unit of the Strategic Policy Sector at tpsgc.paaccordscommerciaux-aptradeagreements.pwgsc@tpsgc-pwgsc.gc.ca.

3.135 Fairness monitors

Effective date: 2024-02-16

Contracting officers must formally assess the merits of using a fairness monitor at the procurement planning phase for all competitive procurements requiring Ministerial approval or above or when one of the following applies:

• Procurement Complexity Assessment is level 4 or 5; or
• Procurement Risk Assessment (PRA) level is 'medium high' or 'high'.

1. At the procurement planning phase, contracting officers may consider the option of using a fairness monitor where an enhanced assurance of fairness is desired (e.g. at the request of the client, previous litigation).
2. Contracting officers must complete the Fairness Monitoring Coverage Assessment and Recommendation Form PWGSC-TPSGC 587 (accessible only on the Government of Canada network) for both mandatory and optional fairness monitor assessments and then send the form to the Fairness Monitoring Program for consultation prior to submittal for signature.
3. Contracting officers then submit the form for signature to the Assistant Deputy Minister (ADM) of the Branch that is undertaking the procurement, or the Regional Director General (RDG) if the procurement is undertaken by a region.
4. The signed form is then forwarded to the Fairness Monitoring Program who will perform an independent assessment and provide a recommendation to the ADM, Departmental Oversight Branch (DOB).
5. The ADM/DOB reviews the request and recommendation and, if warranted, approves the use of a fairness monitor. If fairness monitoring is not recommended, the request will be sent to the Deputy Minister for final decision.
6. For more information, see the Policy on Fairness Monitoring (accessible only on the Government of Canada network) and the Fairness Monitoring intranet site (accessible only on the Government of Canada network). (See also 1.50 Fairness monitoring and 5.25 Use of fairness monitors.)

3.140 Life cycle costing

Effective date: 2010-01-11

Life cycle costing pertains to all four stages of the procurement process, from planning and acquisition to use and disposal. Currently, the Policy on Green Procurement applies to all federal government procurement activities. The Policy requires that environmental performance considerations be embedded into the procurement decision-making process in the same manner as price, performance, quality and availability. For more information and tools on the life cycle costing, see 2.20 Green procurement and defining the requirement.

3.140.1 General requirements

Effective date: 2010-01-11

1. The Policy on Green Procurement is aligned with the Treasury Board (TB) policies on assets and acquired services and reinforces the requirement to take into account both environmental performance and costs that occur throughout the life cycle of assets and acquired services, including planning, acquisition, use and disposal. Some cost elements related to environmental factors that could be taken into account in assessing value for money in the evaluation of bids, offers or arrangements include:
   1. operation costs, such as energy or water consumed by the product over its life;
   2. indirect costs (less energy efficient information technology equipment will produce more heat causing the building's air conditioning system to work harder, and increase electricity costs);
   3. administrative costs, such as complying to Workplace Hazardous Materials Information System (WHMIS);
   4. investing up front to save costs later, such as specifying higher levels of insulation where the extra expenditure can be recovered from lower energy costs;
   5. cost of disposal arrangements;
2. The application of total life cycle costing has traditionally meant the sum of the Product, Resource, Operating, and Contingent (PROC) costs relating to procurement. The PROC technique is essential for evaluating bids, offers or arrangements. Through the Policy on Green Procurement, Canada has strengthened environmental performance considerations into the procurement process. In this context, value for money includes the consideration of many factors such as cost, performance, availability, quality and environmental performance.
3. The PROC technique should be used for Major Crown Projects and in procurement in which operating costs are a major part of the total cost of the product, for example, major construction projects or motor vehicle purchases. (See Chapter 9 - Special procurements.)

3.145 Cost and profit

Effective date: 2023-04-20

1. Pricing is a fundamental enabler to the achievement of best possible value in a procurement. Effective pricing begins with the development of a pricing strategy that closely aligns with the overall procurement strategy to ensure pricing decisions are in accordance with the procurement's objectives and priorities.
2. In order to effectively manage a pricing strategy throughout the acquisition lifecycle and to ensure it successfully meets the procurement's objectives, contracting officers should consider the following key pricing considerations (Section 2.1 of the Practitioner's Guide for Procurement Pricing):
   1. managing pricing throughout the acquisition lifecycle: monitor, review and evaluate;
   2. engaging expert advice, as needed;
   3. documenting and justifying all key pricing decisions and incorporate them in the contract;
   4. developing a validation strategy; and
   5. capturing and tracking lessons learned.
3. As contracts are awarded competitively and non-competitively, contract pricing can be determined by Market Based Pricing, Commercial Pricing or Pricing Principles.
   1. For Market Based Pricing, the price is assessed and established when there exists sufficient competition to obtain more than one competitive bid and price comparison. Canada makes every effort to ensure that the price of goods and services is determined by the market through competition.
   2. Commercial Pricing is used by the contractor for the price of goods and services sold to the general public or entities for non-government purposes, in other words, the price in ordinary trade between buyers and sellers free of bargain. See 3.145.1 Commercial pricing for more information.
   3. Negotiated Pricing occurs when a contract requires any type of price negotiation, such as in the following situations: 1) pricing for a non-competitive contract; 2) price negotiations in a competitive contract subsequent to the award for specific pricing aspects not included in the initial financial bids (i.e. contract amendments, extensions); and 3) use of incentives involving costs. The Pricing Principles found in Section 5.0 of the Practitioner's Guide for Procurement Pricing should be applied to all scenarios requiring price negotiations.

      There are two main categories of Pricing Principles:

      • Cost-Based Pricing Principles is the approach most commonly used in the absence of competition in Canada and internationally in the negotiation of a price. The contract price consists of the following three components: 1) cost-base, based on actual or estimated costs; 2) profit, that is determined and layered on the cost-base; and 3) incentives, as applicable. See Section 5.0.1 of the Practitioner's Guide for Procurement Pricing and Chapter 10 Cost and profit of the Supply Manual for more information on cost and profit; and
      • Alternative Pricing Principles provides details on the process to follow for the implementation of alternatives to Cost-Based Pricing. This is used when justification exists that an alternative pricing method might generate better value than the application of the Cost-Based Pricing Principles. See Section 5.3 of the Practitioner's Guide for Procurement Pricing and Chapter 10.75 Alternative pricing strategies of the Supply Manual for more information.

3.145.1 Commercial pricing

Effective date: 2023-04-20

1. Commercial pricing is the price of goods and services customarily used by and sold to the general public or entities for non-government purposes, in other words the price in ordinary trade between buyers and sellers free of bargain. The commercial price includes both the contractor's costs and profit.
2. Commercial pricing is applied when there is a sufficient number of buyers existing to establish a relevant market price for the good and service. For example, published catalogue prices for powerful binoculars sold to many different customers such as individuals and companies for camping, hunting, recreational, and industrial purposes.
3. Commercial pricing can also apply to a procurement as a whole or to specific components of a procurement where commercial pricing is available. For example, there are two major components for a contract. The first component is for a radio communication device that is used and sold to many other customers such as individuals and companies for outdoor, recreational and industrial purposes. Whereas the second component is for the repair and maintenance of these devices which is not a normally offered service to this supplier's customers. The first component of this contract can be commercially priced, whereas the second component does not have a commercial price.
4. When establishing a commercial price, sufficient price support must be obtained to validate the price provided by a contractor.
5. See Section 5.0.2 Commercial Pricing of the Practitioner's Guide for Procurement Pricing for the detailed considerations of price support for commercial pricing and guidance on strategies when seeking price support through comparable invoices.

3.150 Standards and quality assurance

Effective date: 2012-01-18

3.150.1 Standards, specifications and purchase descriptions

Effective date: 2019-05-30

1. Recognized Canadian standards or specifications must be used in the procurement of goods and services, except when not warranted by the volume or specific nature of the procurement.
2. When Canadian national standards are not available, Canadian specifications produced by a recognized standards-writing organization must be used wherever possible. Where no such specification is available, directly relevant United States (U.S.)/foreign or international standards or specifications should be used when suitable.
3. In determining the suitability of U.S./foreign or international standards or specifications, the contracting officer should consult with the client, and may call on the assistance of the Canadian General Standards Board (CGSB). The determination to use such standards should also reflect the extent to which:
   1. Canadian views have been reflected in the standard or specification;
   2. products available in Canada are likely to conform to the standard or specification;
   3. the standard or specification is likely to discriminate against products.
4. Contracting officers must assess the adequacy and applicability of any standards, specifications, including client-developed specifications, or purchase descriptions included by a client in the requisition.
5. When a requisition does not include an existing standard, specification or purchase description, which the contracting officer considers appropriate, the contracting officer should recommend to the client that the requisition be amended to include it.
6. Contracting officers are also responsible for identifying the need for a new standard, specification or purchase description, if a suitable one is not available for a particular product or service.
7. Clients are responsible for stating their requirement for Government Quality Assurance (GQA), which includes quality assurance and quality control on their requisition or attached technical documentation.
8. The client statement should clearly and completely describe the technical requirements and the requirement for GQA, and must designate the inspection authority and the point of inspection.
9. The extent of GQA required will vary, depending on contract technical requirements and bidder performance history.
10. The GQA requirement may be specified in terms of:
    1. the quality standard against which verification will be conducted such as ISO 9001-2015, ISO 9001-2015 plus AQAP-2110, or equivalent;
    2. the requirement for the supplier to establish and maintain systems to assure quality;
    3. the requirement for the supplier to demonstrate conformance;
    4. what quality verification activity will be done by the government;
    5. consignee inspection;
    6. the requirement for the supplier to provide proof of compliance in accordance with an acceptable quality assurance standard or specification;
    7. the requirement for the supplier to submit samples for approval, such as pre-award samples, first-off units, pre-production, qualification or sealed samples;
    8. the requirement for the supplier to submit an inspection plan;
    9. the requirement for the inspection authority to verify that the product supplied:
       1. is equal in all respects to the product qualified during the Qualified Products List/Qualification Program List (QPL) or Certification Program List (CPL) process;
       2. is manufactured under the same conditions as the product qualified during the QPL/CPL process;
       3. the details of acceptance inspection, tests and trials.
11. As an alternative to items above, the supplier may be required to be listed in an acceptable qualifying program, such as ISO 9001-2015, ISO 9001-2015 plus AQAP-2110, or equivalent that provides for adequate audit and controls.
12. When the alternative above is specified, supplier surveillance must be undertaken, to assess the supplier's compliance with the specified standard. The contracting officer must inform clients of the availability of CGSB or other listing programs that, if used for procurement, would reduce the need for GQA. For example, CGSB Certification and Qualification Programs and the Qualified Products Lists are operated on a cost recovery basis with no direct expense or use of resources to the client.
13. If a requisition does not specify a GQA requirement, or includes an insufficient level, given the nature of the procurement, the contracting officer must work with the client to develop an appropriate GQA framework, and advise the client of the financial and operational implications of appropriate GQA, for the client, the supplier and PWGSC.
14. If a requisition does not specify a supplier quality system, the client should be requested to consider specifying such a stipulation if:
    1. non-conformance would produce significant effects relating to product safety, reliability or operational consequence; for example, arctic clothing, fire extinguishers and security equipment or services;
    2. the requirement is for a newly designed product being produced to government-generated specifications;
    3. the requirement is for a product or service where current bidders have a history of not conforming to specifications and/or previous similar requirements have resulted in chronic client complaints;
    4. the requirement is for a product of high technical complexity; a product that has stringent interchangeability requirement; or a "critical" product whose non-conformance would result in the failure of a system of which that product is a component;
    5. the requirement is for a product or service, which is being purchased for the first time and no history of performance is available; or
    6. at least one potential supplier has a weak quality system.

Note 1: This is required to provide adequate protection for both the client and PWGSC.

Note 2: The contracting officer may also consider a supplier quality system if a requirement has significant dollar value. However, issues relating to the nature of the requirement are usually more important than the dollar value.

3.150.5 Government Quality Assurance at source

Effective date: 2010-01-11

1. Government Quality Assurance (GQA) at source should be used when any of the following conditions apply:
   1. the requisitioning authority has designated an inspection authority other than the consignee;
   2. the costs of performing inspection at source are justified by the benefits received;
   3. conformance cannot be adequately determined on receipt because:
      1. the product contains critical characteristics not visible in the end item;
      2. the product has special safety or security characteristics;
      3. special packing and packaging would be destroyed;
      4. delivery is to multiple destinations; or
      5. conditions or capabilities are not adequate at destination.
   4. the bidder has a record of marginal performance or unsatisfactory quality history and conditions preclude procurement from other sources.
2. The GQA at source may be performed by a client-designated inspection authority or by an inspection authority commissioned by PWGSC on behalf of the client. As part of the inspection, supplier performance data respecting quality must be documented and copies of all inspection reports provided to the sector/region.
3. PWGSC has the authority to provide additional quality tasking for civilian marine services; for example, inspection and arranging for technical support. This authority is provided through TB Document No. 749386, May 5, 1977, Section VI, Recommendation 2.

3.150.10 Listing programs

Effective date: 2019-05-30

1. Listing programs are designed to expedite procurement by establishing, in advance and independent of any specific purchase, a listing of those products or services that comply with recognized performance standards or specifications. Listing/Qualification Programs are normally established in situations where:
   1. test requirements would adversely affect delivery;
   2. costs of acceptance inspection would be excessive;
   3. prior assurance of product conformance and/or supplier capability is necessary;
   4. complex test equipment and procedures are required; or
   5. for products purchased on a regular basis and in large quantities.

   Note: Before contracting, contracting officers should verify with the standards (listing) organization, which product or service offered has been approved. (See 3.150.10 (d).)

2. The inclusion of a product or service on a list implies only that the product or service complies with recognized performance standards or specifications. Listing does not relieve the supplier of contractual obligations to deliver items or services meeting all specified requirements, nor does it guarantee acceptance under a contract.
3. The CGSB and the Department of National Defence (DND) both develop and maintain lists. The responsible qualifying authority may discontinue the qualification and delete the product from an existing listing under the following conditions:
   1. Formula change. A change in the supplier's formulation of the product that impairs product quality.
   2. Process change. A change in the supplier's production process that impairs product quality.
   3. Field failure. Authenticated field failure in use, which is attributable to non-conformance of the product to the relevant standard or specification. Authentication of field failure generally requires extensive investigation and supporting laboratory tests. Perceived field failures should be reported by users to the qualifying authority.
   4. Verification failure. Failure to meet requirements in a verification test of the product and/or system, or failure to submit samples for testing, where requested, or to submit data for qualification maintenance when requested.
   5. Withdrawal for cause. Supplier has ceased operation, changed location, or has consistently failed to respond to requests for quotation.
   6. Changes to standard or specification. Listings may be cancelled by the responsible qualifying authority when the governing standards or specifications are cancelled, superseded or amended in such a manner as to affect existing qualification.
   7. Appeals. Discontinuance may be appealed by the supplier in accordance with appeal procedures established by the qualifying authority.

   Note: When there are indications of non-conformance, and if PWGSC and a client determine that a qualified bidder does not conform to the applicable standard, the contracting officer must notify the qualifying authority.

4. When a listing program is used for a procurement, contracting officers must state in the Notice of Proposed Procurement (NPP), bid solicitation and contract documents that the supplier and its product must be listed in the following appropriate listing:
   1. Qualification Program List (QPL):
      1. underlay;
      2. security guards;
      3. remanufactured toner cartridges;
      4. protective clothing;
      5. polyethelene vapour barrier;
      6. paints;
      7. office furniture;
      8. medical gloves;
      9. Laboratory Acceptance Program;
      10. Dockside Monitoring Company;
      11. carpets;
      12. Canadian Non-Destructive Testing Personnel Certification Program;
      13. Canadian Air Transport Security Authority screening contractors;
      14. breather type sheathing membrane.
   2. Certification Program List (CPL):
      1. polyethylene vapour barrier;
      2. surgical and patient examination rubber gloves;
      3. breather type sheathing membrane;
      4. firefighter's protective clothing, protecting against heat and flame;
      5. fireline workwear for forest firefighters;
      6. Laboratory Acceptance Program.
   3. Registered Quality Systems List ISO 9001 (ISO 9000 Quality Management Systems):
      This is a list of companies that are compliant with ISO 9001: 2015 models for quality systems.
      Note: ISO 9001: 2008 has completed the transition period, is cancelled and replaced by the fourth and latest standard version, ISO 9001:2015.
   4. Registered Environmental Management Systems List:
      This is a list of companies that are compliant with the ISO 14001:2015 standard for environmental management systems
   5. Certified Occupational Health and Safety Standards (OHSAS) List
      This is a list of companies that are compliant with the OHSAS 18001:1999 specification for health and safety management systems.
   6. Certified Food Safety Management Systems (Alberta and Ontario Hazard Analysis and Critical Control Point [HACCP] Advantage) List:
      1. The Alberta HACCP Advantage (AHA!) Certification Program is the formalized process whereby a food safety management system is assessed against the AHA! standard of the Alberta Ministry of Agriculture and Rural Development.
      2. The Ontario HACCP Advantage Certification Program is the formalized process whereby a food safety management system is assessed against the Advantage HACCP standard of the Ontario Ministry of Agriculture, Food and Rural Affairs.
   7. Certified Drinking Water Quality Systems (Ministry of Ontario) List:
      The purpose of the Registration Program is to recognize operating authorities of municipal residential drinking water systems that demonstrate, through accreditation by an independent third party, that their quality management systems meet the requirements of the Ontario Drinking Water Quality Standard, and to recognize operating authorities that are managing their drinking water systems in a planned and systematic manner.

3.150.15 Department of National Defence qualified products lists

Effective date: 2010-01-11

1. batteries;
2. decals, for military identification;
3. electronic components, active: electron tubes, electronic modules, discrete;
4. semiconductors, filters, microcircuits, piezoelectric crystals and oscillators;
5. electronic components, passive: capacitors, connectors, relays and resistors;
6. fire fighting agents and chemicals;
7. flux, liquid soldering, rosin base;
8. gaskets;
9. hose fittings;
10. hydraulics;
11. insulation and packing materials;
12. marine and industrial coatings and related products;
13. mechanical hardware;
14. panels, information, integrally illuminated;
15. petroleum products;
16. plastic sheet, laminated, metal-clad;
17. printed-wiring boards;
18. rubber hoses, tires and tubes;
19. solder, for electronic use;
20. wire and cable.

3.150.20 Canadian General Standard Board

Effective date: 2012-01-18

3.150.20.1 Overview of the Canadian General Standards Board

Effective date: 2023-06-08

1. The contracting officer must be aware of the Canadian General Standards Board (CGSB) and its responsibilities. CGSB is a federal government organization within PWGSC that offers client-centred, comprehensive standards development and conformity assessment services in support of the economic, regulatory, procurement, health, safety and environmental interests of our stakeholders -government, industry and consumers. In the procurement planning stages, the contractor may be required to meet the standards of CGSB for certain requirements and provide a reference in the solicitation and contract documents.
2. CGSB is accredited by the Standards Council of Canada as a standards development organization, as well as a quality and environmental management systems registration organization. It also provides advisory and training services related to standards and certification. It is PWGSC's independent, third party qualifying authority.
   Note: There are other accredited standards organizations in Canada, and contracting officer should contact CGSB for further information.
3. CGSB manages the development and maintenance of consensus standards as well as developing and maintaining qualification, certification and quality and environmental management systems registration, listing programs to support procurement, good business practice and trade.
4. CGSB also provides expertise and information on standardization, both nationally and internationally; the assessment of the suitability of standards; quality and environmental management systems registration; and qualification/certification of listing programs for specific products and services.
5. The CGSB Catalogue contains: a listing of over 60 standards and specifications in various subject areas, in both French and English, for products and services; listing programs for a selected number of these products and services; and other services offered by CGSB.
6. Government organizations, suppliers and the general public can obtain CGSB publications, information on the listing programs or documentation required to apply for a listing by contacting:

   Canadian General Standards Board

   Email: ONGC.CGSB@tpsgc-pwgsc.gc.ca

   OR

   By visiting the Canadian General Standards Board Web site.

3.150.20.5 New standards, specifications or listings

Effective date: 2023-06-08

1. When the need for a new standard, specification or listing program is identified, and no suitable document or listing is under development, the contracting officer should contact CGSB, or, since clients are responsible for defining technical requirements, suggest that the client do so.
2. If the need for a standard is limited to a single client or sector/region, a client/sector/region qualification program may be instituted. Procedures, which do not limit competition and equity of opportunity for all suppliers, should be established by the client/sector/region concerned, and distribution of listings should be restricted if criteria other than technical performance are applied. Where client/sector/region lists are distributed, the qualification criteria should be stated.

3.150.25 Electrical equipment

Effective date: 2010-01-11

1. The client is responsible for determining whether or not a requirement is subject to the Canadian Electrical Code, Part l, and for identifying circumstances where certification or approval in accordance with the Code is required.
2. Suppliers are responsible for complying with applicable building codes and standards, including the Canadian Electrical Code, Part 1.
3. If the required electrical equipment must be either certified or approved, bid solicitation documents must contain the appropriate clause specifying the applicable organization accredited by the Standards Council of Canada. The clauses are listed in the Standard Acquisition Clauses and Conditions Manual, subsection 5-B.
4. The equipment may be specially inspected by an organization acceptable to Chief Electrical Inspector in the province, territory or city where the electrical equipment is to be installed and operated.

3.155 Acquisition cards

Effective date: 2012-01-18

3.155.1 Acquisition cards in contracting

Effective date: 2017-06-21

1. Contracting officers must be aware of the use and application of "acquisition cards". The intent of acquisition cards is to provide a convenient and less burdensome method of procuring and paying for goods and services, while ensuring effective financial control. It is government policy to use acquisition cards for departmental procurement and payment of goods and services (within the levels of procurement authority delegated to departments) where it is efficient, economical and operationally feasible to do so. This policy applies to all organizations considered to be departments within the meaning of section 2 of the Financial Administration Act.
2. Contracting officers are invited to consult the Treasury Board (TB) Directive on Payments.

3.155.5 Acquisition card management

Effective date: 2010-01-11

1. The acquisition card has been in the forefront of most procurement and payment process improvements in client departments. The increasing use of acquisition cards has had an impact on the traditional paper based control framework. The Office of the Auditor General conducted a government-wide review of acquisition card usage, and the report stressed the need for better controls and better monitoring by departments.
2. "Corporate Acquisition Cards" are designed to help eliminate paper in the procurement process. These cards allow an employee to charge purchases for which full payment is made by the department to the applicable card provider. There is no fee for the cards and conditional discounts can be obtained in exchange for faster and/or electronic settlement.
3. Like a personal credit card:
   1. the cardholder receives a monthly statement listing purchases;
   2. each cardholder is assigned a credit limit; and
   3. suppliers receive 97 to 98.5 percent of the purchase price within two days of purchase.
4. Unlike a personal credit card:
   1. the department is obligated to pay either individual invoices for each card or one "consolidated" bill summarizing monthly purchases made by all cardholders;
   2. there is a defined maximum liability of $50 to the department in the event of fraudulent use;
   3. there is special application of financial authorities; and
   4. a department can obtain access to all card transactions.
5. The card is issued in the name of the employee designated to do the purchasing; however, the liability rests with the sponsoring department. Most important, the dollar amount of purchases and monthly limits associated with acquisition cards are controlled by the card-using organization.
6. The use of acquisition cards within federal government departments and agencies offers very significant opportunities for savings in the procurement through payment process. Client departments can reduce and simplify the procurement process of goods and services using acquisition cards. Local purchase orders and petty cash are eliminated and a single payment is made for multiple purchases. The ease and flexibility of using the cards provide an incentive to purchase only as the need arises rather than buying in bulk. By using an acquisition card to make the purchase and then settling these purchases electronically, departments can realize significant savings. Taken across government, this approach allows for major cost avoidance in the procurement process.

3.160 Royalty payments and license agreements

Effective date: 2010-01-11

1. If royalty payments, technical assistance agreements or manufacturing licenses are required or anticipated as being required, the contracting officer must plan for these events within the procurement strategy submitted for approval. Establishing these types of agreements can have very long timeframe and can be a very complex process.
2. In order to carry out certain contracts, primarily for defence, contractors may have to obtain technical assistance and/or manufacturing licenses from third parties.
3. The usual commercial practice is for the contractor to enter into a technical assistance and/or license agreement. However, there are cases where it may be more advantageous for Canada to enter, in its own name, into the license agreement with respect to inventions, patents, copyrights, trade secrets, trademarks, technical data, know-how and industrial designs.
4. In order to avoid paying for rights that the government already has, contracting officers should check that no license agreement in Canada's name exists, which could remove the need for royalty payments.
5. Contracting officers should minimize the use of patented products, by calling up performance specifications rather than product specifications. When there is no alternative, market-based processes for the supply of patented products through licensed production arrangements, royalties, etc., must be exhausted before using section 19 of the Patent Act or section 22 of the Defence Production Act.
6. Royalty payments of 5 percent or less of the selling price of the patented item require the Director approval. A royalty that exceeds 5 percent requires the Deputy Minister approval, before entry into a contract.
7. If there is an increase in the amount of the royalty to be paid, or if further items become subject to royalty payments during the life of a contract, the same guidelines for approval apply.
8. To obtain the approval of the Deputy Minister for royalties exceeding 5 percent, the following information must be provided on Part 2 of the Contract Request:
   1. details of the royalties;
   2. a forecast of anticipated future purchases beyond the requirement in the present submission;
   3. the comments of Legal Services.
9. In consultation with Legal Services, the contracting officer must consider the advantages and disadvantages before deciding that a license should be obtained in the name of Canada or the contractor. These advantages and disadvantages are to be considered in relation to the nature of the supplies to be manufactured, the expenditure by Canada, potential purchases by Canada and the relationship between the potential contractor and the licensor; for example, the contractor may be a subsidiary of the licensor.
10. Advantages- if the license agreement is in the name of Canada, Canada can:
    1. negotiate terms and ensure that no restrictions are placed on the use, sale, lease or exchange of supplies. Such restrictions, if imposed, might interfere with Canada's obligations under international defence arrangements;
    2. gave unrestricted choice of contractors; and
    3. control the manner in which required technical assistance must be furnished and used.
11. Disadvantages- if the license agreement is in the name of Canada, Canada may:
    1. become involved in contractual negotiations apart from the contract it is presently interested in;
    2. have to assume onerous burdens dealing with secrecy, non-disclosure and informing the licensor of improvements and developments;
    3. be bound by all terms of the agreement and be required to pay royalties at a set rate and assume other burdens for a long period.
12. Royalties required to be paid by contractors and their subcontractors to third parties, in the performance of a defence contract, will be paid if they are valid costs in the bid, and the amounts being charged are acceptable to Canada.
13. Where the license agreement must be in the name of the contractor, approval to enter into such an agreement may be obtained as part of the authority for the purchase of the goods and/or services.
14. Where the license must be in the name of Canada, the contracting officer, when negotiating the license agreement and the amount of the royalty payment, should take into consideration the following:
    1. manufacturing rights, including use of licensor's patents and designs;
    2. technical assistance, including:
       1. supply of plans, drawings, specifications, etc.;
       2. engineering person-days provided by the licensor both at its own plant and the plant of the manufacturer selected by Canada;
       3. travel and living expenses of the licensor's representatives;
    3. obtaining for Canada the right to modify or have modified the plans, drawings, etc., and, if required, the right to build or have built or to repair or have repaired the articles in question by a party other than the licensor.
15. Approval of the Assistant Deputy Minister is required before entry into any contractual agreement that exercises the rights of Canada under section 22 of the Defence Production Act or section 19 of the Patent Act. Exercising the rights granted to Canada under these acts must only be carried out in exceptional circumstances as warranted by consideration of the public interest, and after market-based processes have been exhausted. Note: Examples of these circumstances would include refusal by a patent holder to produce or license others to produce a product vital to the defence of Canada, or where monopoly power conferred by the patent is being abused to impose unconsciously high prices upon Canada. It would be very unusual to find these rights exercised for other than defence supplies.

3.165 Controlled goods

Effective date: 2022-05-02

1. As of April 30, 2001, no new controlled goods can be provided unless persons are registered, exempt or excluded by the Controlled Goods Program. Bill S-25 amended the Defence Production Act and established a new regime for regulating access to certain controlled military and military related goods, technical data and technology, referred to as controlled goods.
2. Even if there are no controlled goods in a bid solicitation, there may be situations where proposals submitted by bidders could contain controlled goods. Controlled goods cannot be released to persons that are not registered, exempt or excluded under the Controlled Goods Program.

3.170 Shipbuilding, repair, refit and modernization

Effective date: 2020-11-19

The PWGSC procedures for sourcing suppliers to work on Canadian government vessels derive from the government's Shipbuilding, Repair, Refit and Modernization Policy. The objective of the Policy is to encourage competition amongst Canadian shipyards. For all competitive shipbuilding requirements, as defined in the above-mentioned Policy, subject to the Canadian Free Trade Agreement, contracting officers must ensure that the details of the restrictions or practices are highlighted in the Notice of Proposed Procurement and the bid solicitation.

3.170.1 Information to be included in Notice of Proposed Procurement and Contract Award Notice

Effective date: 2010-08-16

The NPP or bid solicitation must contain the following statement:

"The sourcing strategy relating to this procurement will be limited to suppliers in the Province or Territory or Origin (as applicable) or the Area of Origin (as applicable) in accordance with the Shipbuilding, Repair Refit and Modernization Policy."

For procurements below $2 million subject to the Shipbuilding, Repair Refit and Modernization Policy, the Contract Award Notice must also contain these details.

3.170.5 Shipbuilding procurement

Effective date: 2024-02-16

Note: The following procedures apply only when the procurement is not subject to any of the international trade agreements. "Shipbuilding and repair" is not covered by any of the international trade agreements.

1. Terms specific to the sourcing strategy of shipbuilding, ship repair, refit and mid-life modernization procurements are as follows:
   1. Origin of the vessel - the operational home port of the vessel.
   2. Area of Origin - the following Areas of Origin are recognized: Eastern Canada: Atlantic Canada (Newfoundland and Labrador, Prince Edward Island, Nova Scotia and New Brunswick), Quebec and Ontario. Western Canada: All shipyards west of Ontario and those in the Yukon, Nunavut and Northwest Territories.
   3. Province or Territory of Origin - All Provinces or Territories of Origin are recognized.
2. For procurements $25,000 and below, competitions may be limited to the Province or Territory of Origin of the vessel.
3. For new construction requirements over $25,000, competitions are to be conducted on a nation-wide basis when the following conditions are present:
   1. The statement of requirement is sufficiently defined to permit assessment of competing bids by common standards.
   2. Available shipyards, both in Eastern Canada and in Western Canada, have the technical capability to perform the work.
   3. The vessel being procured is of a type that can be transferred and for which contingency costs (see 3.170.10 (c)) are not unrealistic in relation to the total price.
4. For new construction requirements over $25,000, competitions are to be conducted within the Area of Origin when all conditions, except c.iii. above, are present.

3.170.10 Ship repair, refit and modernization

Effective date: 2010-08-16

1. For ship repair, refit and mid-life modernization requirements over $25,000, competitions are to be conducted within the Region of Origin of the vessel, provided adequate competition exists.
2. If adequate competition (two or more bidders) does not exist, the requirement may still remain in the Area of Origin provided a satisfactory contractual agreement can be reached with the one available capable shipyard. If a satisfactory contractual agreement cannot be reached, the competition is to be extended on a nation-wide basis.
3. Contingency costs for ship repair, refit and modernization requirements shall be only those costs which are directly related with the transfer of the vessel as defined below:
   1. For vessels that can be transported unmanned: Solicitation documents will specify the pick-up point and the delivery point. Bidders will be required to provide a cost to transport the vessel from the pick-up point and once the work is completed, a cost to transport the vessel to the delivery point. In cases where the Government will retain responsibility for delivery of the vessel to and from the shipyard/ship repair facility and the vessel's home port, using commercial towing, railway, highway transportation or other suitable means, solicitation documents will identify the cost of such transportation as the vessel transfer cost that will be added to the evaluation price. (See SACC Manual clause A0240T)
   2. For vessels that are manned for transport: Solicitation documents will identify the contingency cost that will be added to the evaluation price for the transfer of the vessel and its minimum delivery crew based on the geographical distance to and from the vessel's home port location and the shipyard/ship repair facility where the work will be undertaken, and:
      1. The fuel cost based on the current market price for fuel and the vessel's fuel consumption at its most economical speed.
      2. For unmanned refits, transportation costs for the minimum delivery crew base on the latest Treasury Board directives. (See SACC Manual clause A0240T)
      3. For manned refits, contingency costs shall only include the fuel costs for transferring the vessel and shall not include any costs for transporting the crew. (See SACC Manual clause A0240T)
4. Procurements by direct allocation of contracts to specific shipyards are to be made only in cases where the conditions permitting nation-wide, area and Province or Territory competitions are not present. Such cases will arise when one or more of the following conditions exist:
   1. Only one shipyard is capable of performing the work.
   2. Performance of the work necessitates access to particular facilities that are adjacent to one shipyard.
   3. The statement of requirement is not sufficiently defined to permit assessment of competitive bids by common standards.
   4. Emergency requirements necessitate use of the nearest yard capable of performing the work.
   5. Special operational considerations of the client limit movement of the vessel beyond a specified location.

3.175 United States Defense related procurement

Effective date: 2010-01-11

1. Procurements by Canada for military goods and services are often related and technically integrated for the same or similar goods and services as United States (U.S.) military procurements. As a result, Canada and U.S. have agreed to share or permit access to technical data and material that may not be readily accessible for the advancement of a procurement.
2. The contracting officer must be aware that in the procurement planning and strategy development that agreements and processes exist between Canada and U.S. to facilitate access to technical data and material. For more information, see Chapter 9 - Special procurements.
3. There are three areas of concern to the contracting officer in procurement planning as it applies to military procurements as part of the Canada/U.S joint procurement efforts:
   1. Joint Certification Program
   2. Foreign Military Sales; and
   3. U.S. Defense Priorities and Allocations System.

3.176 Public Works and Government Services Canada Europe Office procurement - Germany

Effective date: 2014-06-26

Based on Canada's obligations under the North Atlantic Treaty Organization (NATO) - Status of Forces Agreement, all solicitations, contracts, and procurements initiated by the Public Works and Government Services Canada Europe Office (PWGSC Europe) in Koblenz Germany must adhere to German law. That being said, all PWGSC Europe procurements must still respect the Acquisitions Program procedures and policies to the greatest extent possible.

3.180 Joint Certification Program

Effective date: 2010-01-11

A Memorandum of Understanding (MOU) between the Minister of National Defence and the U.S. Secretary of Defense established a Joint Certification Program, which allows certified contractors of each country access, on an equally favourable basis, to unclassified technical data of both countries. It also ensures that effective and appropriate controls and enforcement mechanisms are in place in each country to protect such technical data. The Technical Data Control Regulations are the authority for implementing this program.

3.185 Foreign Military Sales

Effective date: 2016-01-28

1. The Foreign Military Sales (FMS) program is a mutually beneficial government-to-government method for the procurement of United States (U.S.) defence articles and services.
2. Sole sourcing through the FMS program may be considered as a method of procurement when the goods or services required relate to military equipment of U.S. origin and when, on the basis of the information available at the time, those goods and services are available or can be made available from the U.S. Department of Defense.
3. When Public Works and Government Services Canada Headquarters (PWGSC) determines that a requirement will be sole-sourced through the FMS program, the requisition is reallocated to PWGSC Washington. The decisions to sole source requirements through the FMS program must be adequately documented.
4. More information on the FMS program is provided in section 9.15 United States foreign military sales.

3.190 U.S. Defense Priorities and Allocations System

Effective date: 2021-12-02

1. The U.S. Defense Priorities and Allocations System (DPAS) is intended to assure the timely availability of industrial resources to meet current national defence and emergency preparedness program requirements and provide an operating system to support rapid industrial response in a national emergency. Priority ratings are intended to support approved defence programs with some exceptions.
2. Contracting officers should seek assistance from the Defence Priorities Officer at tpsgc.dgaprioritesdedefense-acqbdefencepriorities.pwgsc@tpsgc-pwgsc.gc.ca, to determine whether the system may be utilized for U.S. procurements when dealing with a contract with a defence requirement. Before contract award, and with consideration of the foregoing, contracting officers must insert the appropriate Standard Acquisition Clauses and Conditions Manual clause in all Canadian defence contracts placed with U.S.-based suppliers and in all Canadian defence contracts placed with Canadian-based suppliers.
3. For a variety of reasons, U.S.-based suppliers may be unable to deliver material to Canadian-based contractors, within the timeframes specified, despite the prompt application for and the timely issuance of a priority rating.

3.195 Risk management

Effective date: 2012-01-18

3.195.1 Treasury Board Secretariat Risk Management Policy

Effective date: 2017-08-17

1. The Treasury Board (TB) Risk Management Policy provides the framework for managing risks within the Government of Canada.
2. The objective of the Policy is to safeguard the government's property and interests, and the interests of its employees as they do government work. TB is responsible for monitoring the effectiveness of the Policy in assisting department's risk management programs.
3. The Policy mandates that it is the responsibility of each department to effectively manage its own risks. Departments are responsible for adequate and timely compensation, restoration, and recovery of losses in the event of harmful or damaging incidents arising within their department. Departments must comply with the following TB policies: Policy on Legal Assistance and Indemnification; and Directive on Payments. For more information on claims for extra payment, see 8.55 Claims for extra payment.
4. Public Works and Government Services Canada (PWGSC) manages risks linked to the procurement process by applying sound procurement plans and contract structure that reduce Canada's loss exposure. PWGSC works with client departments during the contracting process to facilitate clients' understanding of the risk management process relating to their responsibilities.

3.195.5 Risk management process for limiting a contractor's liability

Effective date: 2011-10-04

3.195.5.1 Risk management process for limiting a contractor's liability - General information

Effective date: 2015-09-24

The risk management process, simply put, is a management process that applies to risk and it involves the following steps:

1. risk identification and analysis;
2. examination of the risk management techniques;
3. selection of the appropriate technique(s);
4. implementation of the selected technique(s); and
5. monitoring of the results.

3.195.5.5 Risk assessment

Effective date: 2010-01-11

1. Risk assessment is the process whereby risks and their potential outcomes are identified and measured according to their probability of occurrence and degree of severity. The outcome of the risk assessment is a report on the quantified value of the risks and it is used to guide decision-making in the contracting process. The risk assessment is an important tool because it forms the basis of risk-based decision-making.
2. Risk assessments are conducted by client organizations, as the requisitioning authorities, and they can vary in depth and complexity. Risk assessments can be performed by contracted firms under a standing offer or directly by a client organization. The decision as to who conducts the risk assessment will take into account technical capacity, resources and funding.
3. Each risk assessment will examine and measure the sources of potential loss (exposures) over which a contractor has control. The risk assessment can also identify and segregate the exposures over which the client department has control. Examples of general exposures include property, assets, legal liability, personnel and reputation.
4. The risk assessment will draw on the various risks that the client organization identifies. Information on risks can come from a variety of sources, such as records and data; questionnaires; surveys and exploratory testing; and process maps.

3.195.5.10 Risk control

Effective date: 2010-01-11

Risk control comprises risk treatment that requires taking action to avoid, prevent, reduce or transfer losses. Risk control can occur before, or after, a loss event. The various methods of loss control usually require on organization to develop, implement and maintain various processes and procedures to ensure the effectiveness and success of the risk control program.

1. Loss avoidance is the technique by which an organization will refrain from various activities because of the severe nature of the risk. For example, a contractor can exit a certain line of business because losses incurred by that business threaten the viability of the firm. For example, a food services firm may sell off its tobacco business line due to the potential for costly class action lawsuits.
2. Loss prevention is the technique used to prevent losses from occurring, or to reduce their likelihood of occurrence. Loss prevention measures are often found in engineered or automated processes, such as intrusion detection and access control. In their simpler form, loss prevention measures can include elements such as wide-angle mirrors on vehicles to prevent collisions while reversing.
3. Loss reduction is the technique used to reduce the impact of a loss once it has occurred. Loss reduction measures can include engineered systems, such as automatic fire suppression systems (e.g. sprinklers). They can be found in business applications process, such as business continuity plans or crisis management programs.
4. Contractual transfer for risk control is a risk control measure that uses contract conditions to transfer the risk of loss and/or the obligation to control loss to a contractor. The most notable form is the contractual requirement for indemnification, which requires the contractor to make good losses it causes. In addition to indemnification, a contract may contain other conditions, such as liability for loss, which can be specifically targeted to certain types of loss and the amount of financial obligation. In addition, the contractor may be required to manage and monitor losses it incurs in the delivery of the contract and report to the clients.

3.195.5.15 Risk financing

Effective date: 2010-01-11

1. Risk financing is the technique through which organizations provide funding for potential losses. Although the most commonly known form of risk financing is insurance, there are other methods that are frequently used. Canada uses the "self-underwriting" option in the management risks to which it is exposed and over which it has control.
2. Canada uses the self-underwriting option as a default approach for its own risk financing because it has the legislative authority and capacity as a sovereign entity to raise funds directly to pay for losses.
3. Contractors are responsible for financing the risks under their control. Contractors will most often use commercial insurance to finance their risks, although other risk financing options are available. Contractors use the commercial insurance market to obtain insurance and within the marketplace, insurance policies are underwritten and financed by insurers, with insurance brokers fulfilling the roles of marketing and distribution.
4. Contractors can manage risk financing on a variety of models:
   1. Insurance transfer, where the contractor purchases commercial insurance with standard deductibles, transferring most of the financial risk to the insurer in exchange for premium.
   2. Self Insured retention, where the contractor assumes financial responsibility to a certain level and transfers risk above that level to insurers. This differs from a deductible because the contractor will manage the retained risk through risk control and self-funding measures.
   3. Alternative risk financing, which involves other forms of risk financing sources, such as capital and bond markets and "captive" insurance.
5. Canada can exercise the following risk financing options in contracting to ensure an appropriate level of financial protection from contractors:
   1. contractor controlled insurance, wherein Canada self-underwrites its own risks and relies upon the judgement of the contractor to determine its own insurance requirements;
   2. government specified insurance, where Canada self-underwrites its own risks and specifies the types and minimum coverage limits of insurance that the contractor must maintain;
   3. government controlled insurance, where Canada purchases and controls the insurance as a way of obtaining economies of scale in project involving multiple parties.

3.200 Contractor liability

Effective date: 2012-01-18

3.200.1 Contractor liability: general information

Effective date: 2022-10-20

The Policy on the Planning and Management of Investments defines limitation of liability as an establishment by contract of a predetermined financial cap to limit the responsibility of the contractor.

1. The Treasury Board (TB) Directive on the Management of Procurement governs the process for limiting contractor liability. Contracting officers are required to understand the application of the Directive in order to ensure compliance and to protect the interests of Canada.
2. The Directive forms the framework for risk-based decision-making, enabling the appropriate application and apportionment of liability risk in contracts. The Directive details the steps and necessary approvals that must be followed, when limiting contractor liability, in order to ensure effective program management and service delivery for the benefit of Canadians. A key element of risk-based decision-making is the requirement for risk assessments to be performed by departments.
3. For information related to limiting contractor's liability you may refer to Appendix B: Mandatory procedures for limitation of liability and indemnification in contracts of the Directive on the Management of Procurement and section 4.70.90 Limitation of liability of the Supply Manual. Questions regarding limitation of contractor liability and indemnification may be sent to the Strategic Policy Interpretation Centre of Expertise within the Strategic Policy Sector at the following email: tpsgc.papolitiques-appolicy.pwgsc@tpsgc-pwgsc.gc.ca.

3.200.5 Indemnification

Effective date: 2022-10-20

Indemnification is the requirement for one party to a contract to make the other whole when the latter has suffered a loss. The current default position of Canada on indemnification in procurement contracts is to remain silent. This enables both the parties to rely on their respective rights at law in the event of a loss. Exceptions to this position are where:

1. It may not be in Canada's financial interest to rely on Common Law or the Civil Code.
2. Canada agrees to indemnify the contractor due to exceptional circumstances or where the procurement falls under the terms of a Foreign Military Sale. Under this condition, the department must assume financial responsibility for the substantive transfer of risk to Canada, as determined by a risk assessment. Under this condition, the Business owner must provide its chief financial officer's approval for indemnifying Contractors from risk within their control.

3.205 Review process for creation, renewal and extension of Standing Offers and Supply Arrangements

Effective date: 2018-11-08

1. The Office of Primary Interest (OPI) for specific goods or services is referred to as the Category Management Team and each team has a Category Reviewer responsible for endorsing the creation, extension or renewal of all Standing Offers (SOs) and Supply Arrangements (SAs).
2. Contracting officers are encouraged to engage a Category Reviewer early in and throughout the procurement planning phase to obtain input, with a view to expediting the endorsement process.
3. Before creating, renewing or extending an SO or SA, contracting officers must submit a Category Management Request for Category Reviewer Endorsement form (MSWord Version 105 KB) (accessible only on the Government of Canada network) - (Help on File Formats) to the appropriate Category Reviewer, who will evaluate the request and subsequently:
   1. endorse the request without comment or recommendations;
   2. endorse the request with comments, recommendations, or conditions (conditional endorsement); or
   3. decline the request and provide supporting rationale.
4. Should a required product or service not appear under a specific category, the contracting officer must seek endorsement of the SO or SA from:
   1. the supervisor or manager in the National Capital Area (NCA); or
   2. the Regional Category Reviewer outside the NCA.
5. Supporting rationale from the Category Reviewer must be included in the approval documentation, should the creation, renewal or extension of an existing SO or SA require the duplication an existing SO or SA.
6. Should the Category Reviewer conditionally endorse or decline the request, it may be resubmitted upon its revision.
7. Contracting officers must include the Category Reviewer's final decision and evaluation documents in the Contract Planning and Advance Approval (CPAA) or Procurement Plan.
8. For details, consult the Decision Tree for Creation, Renewal and Extension of Standing Offers and Supply Arrangements (PDF Version 60.45 KB) (accessible only on the Government of Canada network) - (Help on File Formats).
9. To contact a Category Reviewer consult the Category Management List of Category Reviewers (PDF Version 50.27 KB) (accessible only on the Government of Canada network) - (Help on File Formats).

3.205.1 Review process

Effective date: 2015-07-29

In support of PN-72R2 Review Process for Creation, Renewal and/or Extension of Standing Offers and Supply Arrangements, the content of this section was reviewed and moved to section 3.205 Review process for creation, renewal and extension of Standing Offers and Supply Arrangements.

For reference purposes, section 3.205.1 is available in the Supply Manual Archive, Version 2015-1 (accessible only on the Government of Canada network).

3.205.5 Posting Standing Offer and Supply Arrangement information to the Standing Offers and Supply Arrangements Application (SOSA App)

Effective date: 2023-03-30

1. The SOSA App is a secure, web based application that allows known and trusted users to manage and view federal SOs and SAs.
2. Contracting officers must take the following actions to post their standing offers and supply arrangements to the SOSA App:
   1. Obtain a secure BuyandSell.gc.ca account: Contracting officers require a secure account on BuyandSell.gc.ca to be able to modify information on the SOSA App web application. To obtain a Buyandsell.gc.ca account, a contracting officer must first have a Government of Canada (GC) approved digital identity such as myKEY. A contracting officer may then obtain the necessary permissions to access SOSA App by sending a request to achatsetventes.buyingandselling@tpsgc-pwgsc.gc.ca.
   2. Read the SOSA App user guide: As the following steps are a summary only, please consult the SOSA App user guide for complete instructions. Contracting officers can view the SOSA App user guide online, once they receive the necessary permissions.
   3. Review and edit the information regarding the standing offer or supply arrangement:
      1. Once logged into the SOSA App, review the tombstone information for the SO or SA. See section 2.1 of the SOSA App user guide for more information.
      2. Review all other information, adding or editing information as necessary directly within the SOSA App. Relevant documents (e.g. price lists) can be attached, and pertinent web-links can be added.
      3. Ensure that the standing offer or supply arrangement information in the SOSA App is in both official languages and complies with Canada's Official Languages Act. Specific attention must be given to the SO or SA description.
   4. Post the SO or SA to SOSA App as detailed in the user guide.

3.205.5.1 Security markings for documents posted on the Standing Offers and Supply Arrangements Application (SOSA App)

Effective date: 2022-07-21

Contracting officers able to publish documents on the SOSA App must ensure that all documentation is marked with the appropriate security marking as indicated in the departmental guide on levels of security (accessible only on the Government of Canada network).

Only documentation containing information classified up to and including the Protected B level can be published on the SOSA App.

In particular, documents containing supplier price lists, unit price(s)/labour rate(s) of a Standing Offer, or (where applicable) the firm/ceiling unit price(s) or labour rate(s) of a Supply Arrangement, must be treated as protected information and marked accordingly as Protected B.

3.205.10 Use of Departmental Standard Procurement Documents

Effective date: 2015-07-29

1. To issue a Request for Standing Offers (RFSO) or a Request for Supply Arrangement (RFSA), contracting officers must use the appropriate Standard Procurement Template.
2. Standard Acquisition Clauses and Conditions (SACC) must be used when preparing procurement documents. Alternative clauses may be used under special circumstances, subject to approval by Legal Services.
3. Should a non-standard clause become a repetitive requirement, a request to include it in the SACC Manual must be submitted to the Procurement Process Tools Division, Acquisition Policy and Process Directorate at the following address: Outilsd'approvisionnement.ProcurementTools@tpsgc-pwgsc.gc.ca.

3.205.15 Reporting usage data

Effective date: 2018-11-08

To ensure effective management and monitoring of Standing Offers and Supply Arrangements (SOs/SAs), contracting officers must give advanced consideration to the associated reporting requirements and how best to meet them. Data sources for SOs/SAs include, but are not limited to the following:

1. Standing Offers and Supply Arrangements Application (SOSA App)(accessible only on the Government of Canada network);
2. client departments;
3. in-house tracking systems;
4. Category Management Teams;
5. Business Analytics Services Directorate (BASD); and
6. offerors or suppliers.

Annexes

Consult the list of annexes below related to Chapter 3 - Procurement Strategy.

• 3.1 - Annex: Treasury Board questions for sole source
• 3.2 - Annex: Limited tendering reasons contained in the trade agreements
• 3.3 - Annex: Model content of an Advance Contract Award Notice
• 3.4 - Annex: Task Authorization
  • 3.4.1 - Annex: A guide to preparing and administering task authorization for Public Works and Government Services Canada clients
  • 3.4.2 - Annex: Record of Agreement Template for Public Works and Government Services Canada Clients
• 3.5 - Annex: Procurement Review Committee Requirements and Approval Process
• 3.6 - Annex: Canadian Content Policy: Rules of Origin determination
• 3.7 - Annex: National Security Exception request letter: Template
• 3.8 - Annex: Comparison of different methods of supply