Chapter 6 - Approvals and authorities

6.1 Approvals and authorities: General information

Effective date: 2024-11-08

1. This chapter addresses the various types of plans, reviews and approval processes associated with procurement based on the different authority levels. These forms and approval processes apply to contracts/standing offers and supply arrangements. It also contains the authorities for approving and signing procurement documents and details special approval considerations and exceptions to approval authorities. Contracting officers will also find information for interpreting and using the authorities.
2. Contracts are entered into by His Majesty the King as represented by a minister. The authority to enter into contracts is generally in the legislation constituting the department and conferring certain powers on the minister. The Department of Public Works and Government Services Act confers the Minister's contracting authority. The Minister's authority is delegated to officers throughout the Department in order to carry out the internal contract process.
3. The financial limits are established by Treasury Board pursuant to the Financial Administration Act and are set out in the Appendix A: Contracting Approvals of the Directive on the Management of Procurement.
4. Contracting officers are delegated authorities to enter into contracts and to sign and amend contracts in accordance with the level of responsibility of the position they occupy. Details of the delegated authorities and obligations are provided in 6.20 Contract approval and signing authorities.
5. Certain steps in the procurement process require approval, based on the enabling legislation and the policy framework. A valid approval must conform to the following two elements: 
   1. The identity of the individual exercising approval authority can be verified and authenticated before and after approval has been granted.
   2. Controls are in place to date stamp the approval and ensure the documents being approved cannot be altered once approval has been granted.
   In the case of electronic approval, it is important to ensure the integrity of the transaction by safeguarding the electronic authentications and authorizations against unauthorized access, authority or disclosure, and against repudiation, destruction, removal, modification, misuse, incompleteness or inaccuracy.
6. Contracting officers must ensure that all decisions related to the legitimate division of requirements into multiple smaller requirements are documented, and are not intended to avoid financial approval thresholds or policy requirements, such as contract entry limits, regulatory rules and trade agreement obligations.
7. It is essential that procurement files be fully documented to ensure an accurate and complete record of all procurement activities throughout the process. This includes records of justifications and approvals for any deviations to policies or procurement rules to ensure that decisions are documented and the integrity of the procurement process can be defended in the future

6.5 Procurement approval documents

Effective date: 2024-04-19

1. The commodity, the associated risks, the dollar value of a procurement and other factors such as an emergency or the stage in the procurement process will determine the level of approval that contracting officers will need to seek, as well as the associated process that will be followed. To determine the appropriate approval level and approval document required, contracting officers must refer to the approval authorities for various commodities and other considerations outlined in 6.20 Contract approval and signing authorities.
2. The different types of approval processes or forms are listed below:
   1. Procurement Plan;
   2. Contract Planning and Advance Approval (CPAA);
   3. CPAA Resubmission;
   4. Contract Summary;
   5. Contract Request;
   6. Treasury Board Submission;
   7. Contract Amendment Request.
3. The sections below describe these documents. The approval documents may require additional reviews as detailed in 6.10 Additional reviews.
4. Before the contracting officer takes any significant procurement actions, the procurement strategy must be approved. Significant procurement actions include, but are not limited to, publishing an Advance Contract Award Notice (ACAN), a Notice of Proposed Procurement (NPP), the solicitation or the commencement of negotiations.
5. When invoking 6.(d) of the Government Contracts Regulations (GCRs), all procurements must have appended to all approval documents, and documented on file, answers to the seven questions at Annex 3.1: Treasury Board questions for sole source.
6. Two parties serve as the primary and secondary controls on the procurement process – the contract approval authority and the contract signing authority respectively. The contract approval authority is the primary control on the procurement process. They are responsible for acceptance of the proposed terms and conditions of the contract documents, and must review the file to ensure compliance with all relevant legislation, regulations and policy. The contract signing authority is the secondary control on the procurement process. They must ensure that the terms and conditions of the contract documents reflect those approved by the approval authority.
7. Throughout the procurement process leading to award of a contract, new information or changes in the procurement strategy may have an impact on complexity level or risk assessment of the procurement. Contracting officers must ensure that the complexity level and risk assessments are aligned with any changes to the procurement strategy. They may need to perform these assessments again to account for changes. This may require resubmitting the approval document to the appropriate authority level. 

6.5.1 Procurement Plan

Effective date: 2024-04-19

1. The Procurement Plan is a document that sets out the intended strategy for how a procurement will be carried out before any significant procurement actions are performed, such as the posting of an ACAN or the commencement of negotiations. The procurement plan is a key point for discussing and reviewing such matters as competition or sole source and industrial and regional benefits.
2. Before issuing a solicitation for any procurement, contracting officers must obtain approval for the procurement plan at the appropriate level. The appropriate approval document must be used depending on the approval authority level required, as indicated in 6.5.1.1 Procurement Plan for procurements below Director General level and 6.5.1.5 Formal Procurement Plan for Procurements at or above the Assistant Deputy Minister level. Before issuance of the resulting contract, the contracting officer will also need to seek contract approval.
3. There are two forms available for procurement plans:
   1. the Procurement Plan for procurements at or below director general approval level; and,
   2. the Formal Procurement Plan template.

6.5.1.1 Procurement Plan for procurements at or below Director General level

Effective date: 2024-11-08

1. The procurement plan form is used for procurements estimated to be at or below director general level when there is insufficient information to obtain advance approval for contract entry.
2. For procurements within Departmental Delegation of Authority, contracting officers may use the procurement plan available in the Automated Buyer Environment, or a similar form. A procurement risk assessment must be performed prior to completing the procurement plan and be attached to it. The procurement plan must provide details surrounding the medium-high and high risks with proposed mitigation strategies, as necessary.
3. For procurements outside the Department’s authority, the procurement plan must be prepared as a memorandum from the Senior Director (or Director) to the Director General or Regional Director General. It must include the elements identified in Annex 6.1 Procurement Plan instructions.
4. The procurement plans are prepared for the approval by the appropriate approval authority. Contracting officers should refer to section 3.1.1 Planning the procurement for a list of some items that could be included in the procurement plan.
5. If there are significant changes to the original procurement plan, the complexity level must be reviewed, a new risk assessment must be performed, Risk Management Advisory Services consulted if required, and the procurement plan must be resubmitted.

6.5.1.5 Formal Procurement Plan for Procurements at or above the Assistant Deputy Minister level

Effective date: 2024-04-19

1. A formal procurement plan is required for the approval of the procurement strategy and is prepared for all procurements requiring contract entry approval at or above the Assistant Deputy Minister, Procurement Branch or Defence and Marine Procurement Branch.
2. The Assistant Deputy Minister will approve formal procurement plans for Complexity Levels 4 and 5 inclusive.
3. Contracting officers should prepare the formal procurement plan in accordance with the template at Annex 6.1 Procurement Plan instructions.
4. The formal procurement plan must provide details surrounding the medium, medium-high and high risks with proposed mitigation strategies, as determined by the risk assessment. The risk assessment must accompany the formal procurement plan.

6.5.5 Contract Planning and Advance Approval

Effective date: 2014-09-25

1. The Contract Planning and Advance Approval (CPAA) process allows for the approval of the Procurement Strategy and pre-approval for contract entry.
2. The CPAA is used for approvals up to and including director general and regional director general, unless a procurement plan applies to the procurement (see 6.5.1 Procurement Plan).
3. The CPAA should not be used if there is insufficient known information about the expected results of the procurement action.
4. A Procurement Risk Assessment must be performed prior to completing the CPAA and accompany the CPAA document when presented for approval. The CPAA must provide details surrounding the medium-high and high risks along with proposed mitigation strategies, as necessary.
5. The CPAA process allows contracting officers to issue contracts/standing offers/supply arrangements without further review by the approval authority when there are no significant changes to the procurement strategy in the approved CPAA. Following approval of the CPAA, the contracting officer will proceed with the procurement action until the contract is ready to be awarded. If the procurement action results in a significant change from the originally approved procurement strategy before the contract is awarded, a new procurement risk assessment must be performed and new approval sought, based on the outcome in accordance with 6.5.5.5 Contract Request or Contract Planning and Advance Approval (CPAA) resubmission.
6. Contracting officers must summarize actions taken between approval of procurement strategy and contract entry through the use of the Contract Summary as detailed in 6.5.5.10 Contract Summary.

6.5.5.1 Contract Planning and Advance Approval instructions

Effective date: 2024-04-19

1. Contracting officers must complete the Contract Planning and Advance Approval (CPAA) form and explain the procurement strategy.
2. Contracting officers should include the following information, as applicable:
   1. proposal/description: state the action proposed (e.g. to obtain approval to; to obtain advance approval) including all approvals being requested (e.g. approval to make advance payments, advance approval to firm up interim rates). Describe the requirement including options, if applicable;
   2. total estimated cost of the requirement (including all advance approvals, duties and taxes);
   3. under Remarks: address applicable issues such as:
      1. for competitive procurements, state whether Government Electronic Tendering Service (GETS) or other public advertising, source lists (i.e., one time, ongoing), etc. will be used. If GETS is not being utilized to compete the requirement, an explanation must be provided;
      2. when a non-competitive (sole source) procurement strategy is chosen, state the legal authority to use an exception to competitive bidding (see 3.15 Non-competitive contracting process);
      3. describe the risks and proposed risk mitigation strategies associated with the procurement, in accordance with current policies, procedures and practices.
   4. policy issues: identify any socio-economic and accessibility considerations or deviations from policy and recommended course of action;
   5. provide details surrounding the medium-high and high risks related to the procurement with proposed mitigation strategies;
   6. evaluation criteria: identify the evaluation criteria and the solicitation method to be used including the pricing basis, mandatory and/or point rating criteria;
   7. contractor selection method: selection method to be used;
   8. milestones: give target dates for important milestones (e.g. bid solicitation, contract award, delivery schedule);
   9. additional remarks: indicate any additional information that should be brought to the attention of the approval authority.
3. On receipt of the approval document, the approval authority will review it and either grant full approval to proceed or identify concerns and direct changes to the proposed strategy. The approval authority may also approve the procurement strategy but not grant advance approval to enter into contract, in which case an approval document must be prepared and submitted for approval prior to contract entry. (See Annex 6.4: Conditions imposed on the approval authority limits for Public Works and Government Services Canada personnel relative to conditions imposed on the approval authority limits).
4. Following approval of the CPAA, the contracting officer will proceed with the procurement action. If the procurement action results in a significant change from the originally approved plan before the contract is awarded, the CPAA must be resubmitted in accordance with 6.5.5.5 Contract request or Contract Planning and Advance Approval (CPAA) resubmission. If there is no significant change, the contracting officer will prepare the contract.

6.5.5.5 Contract Request or Contract Planning and Advance Approval (CPAA) resubmission

Effective date: 2014-09-25

1. The Contract Request or Contract Planning and Advance Approval (CPAA) Resubmission is used when there is significant change to the procurement strategy (e.g. non-competitive requirement has changed to competitive, or vice versa).
2. The reasons why the procurement strategy has changed and the additional risks, or changes to the already identified risks associated with the procurement must be explained in details in the Contract Request/CPAA, together with the proposed mitigation strategies.
3. If there has been a change to the complexity or risks, the Procurement Complexity Assessment (PCA) must be updated and another version of the procurement risk assessment at the appropriate complexity level must be performed and accompany the procurement approval documents prior to completing the Contract Request/CPAA Resubmission.
4. Contracting officers must submit the Contract Request/CPAA Resubmission to the appropriate approval authority in accordance with sector and region procedures.
5. Once the approval is received, the contracting officer will proceed with the procurement action required.
6. See Annex 6.2 Contract Request instructions for instructions on the preparation of the contract request.

6.5.5.10 Contract Summary

Effective date: 2012-04-05

The Contract Summary is used pursuant to an approved CPAA to document the actions taken from the time the CPAA was approved and prior to the issuance of a contract/standing offer/supply arrangement (including the results of the bid evaluation and contractor selection).

6.5.10 Contract Request

Effective date: 2014-09-25

With the promulgation of PN105R1 - Procurement Complexity Levels, Risk Assessment and Approval Authorities, the content of this section was reviewed and incorporated in section 6.5.5.5 Contract request or Contract Planning and Advance Approval (CPAA) resubmission.

For reference purposes, section 6.5.10 is available in the Supply Manual Archive, (accessible only on the Government of Canada network) Version 2014-3.

6.5.15 Treasury Board submission

Effective date: 2024-04-19

1. A Treasury Board (TB) submission is an official document submitted by the Minister on behalf of a department and is used to seek approval from TB ministers when there is a requirement for TB approval. TB approval is required for any contract or contract amendment exceeding the limits outlined in Annex 6.4: Conditions imposed on the approval authority limits for Public Works and Government Services Canada personnel.
2. A TB submission can also be used to seek advance approval (e.g., at the stage when the procurement strategy has not been fully developed) with appropriate justification. TB ministers base their decision to approve, in this circumstance, on the information provided in the remarks section of the TB submission. Treasury Board Secretariat (TBS) analysts include in the analysis a risk assessment of the elements in the solicitation process outlined in the submission. If at any point during the bid solicitation process there is any deviation from what has been stated in the TB submission, the contracting officer must contact the TBS analyst to determine whether the change warrants further action, such as a letter to the TB President or a new TB submission. Contracting officers are to keep written advice from the TBS analyst on the procurement file.
3. When preparing TB submissions, it is recommended that contracting officers consult TB Submission Centre of Expertise Division of the Procurement Business Management Sector, Acquisition Program for further guidance. In addition, the following substantiation, as required, must be included in all TB submissions:
   1. submissions seeking approval of a non-competitive contract must provide an explicit and compelling rationale for not using a competitive process;
   2. submissions seeking approval for a competitive or non-competitive contract must provide an assessment of the extent to which TB approval of the proposals could limit, or encourage, the competitiveness of related procurement activities in the future; and
   3. submissions seeking Treasury Board approval of contracts should address compliance with the Federal Contractors Program (FCP) for employment equity. Consult Annex 5.1: Federal Contractors Program for Employment Equity for more information.
4. Proposed contracts and contract amendments, which require TB approval, must be approved by TB before they are entered into and before any work has begun.
5. Public Works and Government Services Canada (PWGSC) cannot enter into a contract, or make any contractual commitment (e.g., Letter of Intent), which constitutes the first step of a project that may subsequently require TB consideration and approval.
6. TB approval is also required for a number of areas described in the TB directives and circulars, as well as for the making of any "extra payment," i.e., a payment where a legal liability does not exist or has not been accepted by Canada, or where there is uncertainty that a legal liability exists under the contract.

6.5.15.1 Procurements requiring a Treasury Board submission

Effective date: 2014-09-25

1. For Complexity Levels 1 through 3 inclusive, the contracting officer must complete a procurement risk assessment at the procurement strategy stage, and contact Risk Management Advisory Services (RMAS) once completed to discuss the results of the procurement risk assessment.
2. For Complexity Levels 4 and 5, the contracting officer must contact RMAS who will work in cooperation at the procurement strategy stage in completing a custom risk assessment specific to the complexities of a Level 4 or 5 procurement.
3. The contracting officer and RMAS will collaborate on the preparation of the Risk and Mitigation Strategy section in the Treasury Board (TB) submission and select up to five key risks, scoring medium, medium high or high that summarize the risk assessment. Each risk in the TB submission narrative must contain the following elements:
   1. The risk statement, describing what harm may occur, the likelihood of it occurring and its impact on the procurement and/or the organization;
   2. The risk response strategy, summarizing the actions, or procurement factors, that may reduce the likelihood or severity of the risk; and,
   3. The residual or remaining level of risk to the procurement after taking into account the risk response measures.
4. Results of each TB submission risk assessment are maintained by the RMAS and are reported to Acquisitions Branch operational sectors and regions, summarizing assessment activity and key findings.

6.5.15.2 Translation

Effective date: 2011-10-04

1. Part 1 of the TB submissions must be prepared in both official languages, presented side by side.
2. When translation services are required for a technical or specialized document, it is helpful to send the translators a copy of an early draft so that any required terminology research may commence in order to expedite translation. Departmental standard procurement templates or other templates that have been translated and approved must be provided as a reference guide to the Translation Bureau to ensure consistency of terminology.
3. Contract amendment requests requiring TB approval must be prepared in a bilingual format using the form PWGSC-TPSGC 1151-1 (Contract Request/Contract Amendment Request) (PDF, 408 KB) (accessible only on the Government of Canada network).

6.5.15.5 Retroactive approval of contract

Effective date: 2010-01-11

TB ministers will entertain submissions requesting retroactive approval of a contract or contract amendment only under exceptional circumstances, e.g., urgent cases involving public safety or security, incidents or cost overruns. In such cases, TB requires certification that the minister concerned agreed to the commencement of the work before receiving TB approval including a full report on the reasons, the managerial responsibilities involved and corrective actions taken.

6.5.20 Contract amendment

Effective date: 2012-04-05

1. The contract amendment approval document is used to seek approval to amend a contract/standing offer/supply arrangement. The amendment approval authority required will determine the document to be used. The amendment approval documents are:
   1. the "Contract Amendment Request" form is used for director general and regional director general approval and below, at the sector's or region's discretion;
   2. the form PWGSC-TPSGC 1151-1 (Contract Request/Contract Amendment Request) (PDF, 408 KB) (accessible only on the Government of Canada network) must be used for assistant deputy minister approval;
   3. the TB submission form, available in the TB publication A Guide to Preparing Treasury Board Submissions, must be used for amendments requiring TB approvals;
   4. see Annex 6.3: Preparation of contract amendment approval documents for instructions on the preparation of contract amendment approval documents listed in (i) and (ii) above. For TB submissions, see 6.5.15 Treasury Board submission.

6.10 Additional reviews

Effective date: 2010-01-11

The contracting officer is responsible for ensuring that the procurement document(s) receive appropriate review and approval by the proper area or authority. Below are some of the reviewing authorities that must be consulted before or during the approval process.

6.10.1 Contract quality control review

Effective date: 2024-04-19

A review of the procurement documents by quality control team of the Specialized Services for Procurement Division (SSPD) or Regional Quality Assurance may be requested by the contracting officer or the approval authority. Procurement documents to be reviewed by SSPD must be recommended by the section Manager and sent to the following generic mailbox: pacontroledelaqualite.apqualitycontrol@tpsgc-pwgsc.gc.ca. The appropriate team will provide written feedback on the procurement documents submitted.

6.10.5 Legal Services review

Effective date: 2014-09-25

1. Legal Services must be consulted when the contracting officer is considering a deviation from Standard Acquisition Clauses and Conditions (SACC) Manual clauses or the departmental standard procurement templates or the departmental standard procurement templates, or commodity or sector-based legally approved templates.
2. Legal Services must review any requests for lessening Canada's full rights at law, a disclaimer, limitation of the contractor's liability, or decrease of the warranty time period. The proposed changes must also be acceptable to the client, and form part of the request for approval.
3. A review by Legal Services is within the discretion of the contracting officer or the approval authority, except in those instances that are mandated by policies and directives within the Acquisitions Program (for example, for sensitive requirements).
4. See section 3.110 Legal Services for other situations requiring consultation with Legal Services.

6.10.10 Cost and price analysis services

Effective date: 2024-04-19

When a procurement presents any of the conditions noted below and described in the Directive on the Use of Cost and Price Analysis Services (accessible only on the Government of Canada network), it is mandatory that the contracting officer consult a Price Support Directorate advisor and document the consultation and pricing decisions in the procurement file:

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.

Apart from the above mandatory conditions where they must be consulted, Price Support Directorate advisors are always available for consultation on any procurement on a discretionary basis. Refer to the Guideline on the Use of Cost and Price Analysis Services (accessible only on the Government of Canada network) for additional information.

6.10.15 Contract security

Effective date: 2022-05-02

Contracting officers must ensure that any contract security requirement is addressed in the approval documents and that the Contract Security Program (CSP) has been consulted, as appropriate. For more information on contract security, see 4.30.10 Security in contracts to 4.30.30 Foreign ownership, control or influence and 5.15 Verifying compliance with security requirements.

6.10.20 Client department review

Effective date: 2012-04-05

1. Client departments must review and provide their written concurrence that the client’s input into the solicitation document (e.g. Statement of Work, Statement of Requirement, specification, evaluation) is accurately reflected within the solicitation document and the TB submission, in accordance with Annex 1.1: Matrix of responsibilities between PWGSC and client departments for the Procurement of Goods and Services (generic) and Annex 1.2: Specific division of responsibilities agreements.
2. For the generic division of anticipated types of responsibilities between PWGSC and client departments, consult Annex 1.1: Matrix of responsibilities between PWGSC and client departments for the Procurement of Goods and Services (generic); for the two client-specific agreements with the Department of National Defence, consult Annex 1.2: Specific division of responsibilities agreements.
3. A specific procurement may require the modification or deletion of individual conditions. These changes must be discussed with the client before inclusion in the solicitation or contract/standing offer/supply arrangement, to ensure that complete understanding exists as to the extent of the client's rights and responsibilities. For the responsibilities of the client department with respect to the solicitation, see 4.75.1 Client department review of elements of a solicitation.

6.20 Contract approval and signing authorities

Effective date: 2024-04-19

1. The internal approval and signing authorities, the conditions imposed on the approval authority limits, the exceptions to the approval authority limits and other guidelines are contained in the annexes of this chapter.
2. Contract approval and signing authorities in support of clients' programs must be exercised in accordance with the applicable legislation and regulations, and within Public Works Government Services Canada (PWGSC) policies and guidelines.
3. The contract approval and signing authorities detailed in Annex 6.4.2: Contracting limits including exceptional authorities are applicable to procurement requirements from client departments including when PWGSC is a client.

4. The contract approval and signing authorities in support of clients' programs apply to all contractual documents and arrangements, including the following:

   • purchase orders;

   • contracts;

   • formal agreements and arrangements (e.g., Interdepartmental Memorandum of Understanding (MOU));

   • standing offers and supply arrangements;

   • letters of intent;

   • go-ahead letters and go-ahead messages;

   • Stores Transfer Orders;

   • Supply Transfer Orders;

   • written direction to the Agency of Record (e.g., work authorization);

   • assignments;

   • consents to subcontract;

   • termination for convenience notices; and

   • amendments to any of the above.

5. Conditions and limits set out in Annex 6.4: Conditions imposed on the approval authority limits for Public Works and Government Services Canada personnel will apply to the approval and signing of all contractual documents and arrangements, including those arrangements that are not subject to the Government Contracts Regulations and Treasury Board Contracts Directive, unless approval and signing limits are set out within an existing Memorandum of Understanding.
6. The Deputy Minister's approval is required when the value of transfer agreements between departments (e.g., transfer orders with CORCAN) exceeds the approval limits set out in Annex 6.4.
7. Treasury Board approval is required when the value of contractual arrangements with provincial or municipal governments, or provincial or federal Crown corporations exceeds the approval limits set out in Annex 6.4.
8. Approval of contracts that include options must be sought in accordance with the total estimated cost including any options for which funds are available or expected to be provided in the future (see Annex 6.4.6: Contract amendment approval instructions).
9. More than one contractual document must not be issued, under any circumstance, in order to circumvent the necessity of obtaining the proper approval authority.
10. If an Advance Contract Award Notice (ACAN) is published when directing a requirement to a specific supplier or vendor for the purposes of contract approval authorities, the procurement is classified under the "competitive" category. The competitive approval authority levels apply, whenever an ACAN has been posted and no valid Statement of Capabilities was submitted. See Annex 6.4.2: Contracting limits including exceptional authorities.

6.20.1 Delegated authority to incumbents

Effective date: 2010-01-11

6.20.1.1 Responsibilities

Effective date: 2015-09-24

All the authorities granted to and exercised by contracting officers in PWGSC are provided subject to the following:

1. if a contracting officer's responsibilities do not require the officer to exercise a particular authority (for any type of authority or above a particular dollar level) then that contracting officer does not, in fact, have that authority. Any and all authority granted to an incumbent of a position must be commensurate with, but not greater than, the level required to carry out the responsibilities assigned to the incumbent; and
2. it is a requirement that the relationship between responsibilities and authorities for each designated contracting officer be recognized on individual delegation forms. See PWGSC Delegation of Authorities Manual (accessible only on the Government of Canada network).

6.20.1.5 Incumbent

Effective date: 2022-12-01

1. Limits to the contract approval and signing authorities granted by the Minister and Deputy Minister to incumbents of designated positions are as set out in Annex 6.4: Conditions imposed on the approval authority limits for Public Works and Government Services Canada personnel. These are maximum limits which may be reduced at the discretion of the appropriate managers.
2. The Minister and Deputy Minister delegate authorities to position titles (generic or specific) and not to individuals by name. Supervisors must inform new incumbents of their levels of contract approval and signing authority to be exercised by completing and signing a schedule 3 delegation form (accessible only on the Government of Canada network). The authority is valid when the incumbent’s schedule 3 form is approved and signed. The authority can be limited to a certain period of time (e.g. during an acting period).
3. Contracting officers who have previously exercised contract approval and signing authorities in another position may exercise, upon promotion, the authorities delegated to incumbents at the new level once a new individual delegation form is completed and signed. General information on Delegation of Authority Instruments is available to PWGSC employees on-line at Delegation of Authorities. Further information on the principles of delegation of authority and proper use of the authorities is available at Delegation Principles.
4. Directors general must withhold full contract approval and signing authorities from anyone who has had no PWGSC purchasing/contracting experience until competence has been demonstrated at a lower level of authority for at least six months.
5. To facilitate audit requirements, a signed electronic copy of the individual delegation form must be forwarded to PA Politiques/AP Policy (TPSGC/PWGSC) at the following address: tpsgc.papolitiques-appolicy.pwgsc@tpsgc-pwgsc.gc.ca for record keeping purposes only. A signed copy is valid, ready to use, and must be kept on file by the incumbent for future reference.

6.20.1.10 Acting incumbent

Effective date: 2023-06-08

1. Designation of an acting incumbent for a position, to which a level of authority has been granted, must be made by an authority level no less than that of the incumbent's supervisor.
2. The acting incumbent should normally be given the full contract approval and signing authorities of the position. However, the acting incumbent must not exercise these authorities on a procurement file for which the acting incumbent was responsible in the incumbent's normal position.
3. If an incumbent is to perform the duties of a position in an acting capacity for a period of four months or longer, then the incumbent's supervisor will delegate authorities by signing the Schedule 3 Specimen Signature Card (accessible only on the Government of Canada network) indicating the period that these authorities are to be in effect.
4. In those situations where an incumbent is to perform the duties of a position in an acting capacity for a period of less than four months (e.g. vacation replacement), then the incumbent's supervisor will delegate authorities by email, indicating the period that these authorities are to be in effect. An example of an email is as follows:
   Objet/Subject: Absence de______________ /Absence of ______________
   Par la présente je vous avise que l'employé(e) sous nommé(e) sera absent(e) pendant la période spécifiée. Pour assurer la continuité des opérations, les pouvoirs contractuels seront délégués au(à la) candidat(e) nommé(e) ci-dessous.
   This is to advise that the individual named below will be absent for the specified period. To ensure continuity of operations, acting contractual authorities have been delegated to the following appointee.
   Personne absente/
   Person Absent: ___________________
   Titre du poste comblé/
   Position Title occupied: ___________________
   Période/Period: ___________________
   Candidat(e) nommé(e)/
   Appointee's name: ___________________
   Approuvé par/
   Approved by: ___________________
5. The e-mail must be sent to the acting incumbent, with a copy to all contracting officers reporting to that position, and the Senior Purchasing Assistant of the supervisor's immediate superior. In addition, a copy of the e-mail must be placed on the file of any contractual document approved/signed by the incumbent while exercising the acting authority.

6.25 Special approval considerations

Effective date: 2010-01-11

6.25.1 Go-ahead Letters

Effective date: 2010-01-11

Go-ahead Letters may be issued after obtaining final approval of the contract submission, provided all appropriate terms and conditions of the proposed contract are known and acceptable to the potential contractor. Go-ahead Letters are subject to the appropriate signing authorities.

6.25.5 Forgiveness of debts

Effective date: 2010-01-11

No PWGSC employee, without the appropriate delegated authority, is authorized to forgive debts arising out of contractual actions and which are owed to Canada. For the authority to write-off debts refer to "Debt Write-Offs (Deletion of Debts)" (accessible only on the Government of Canada network) in the departmental Delegation of Authorities Instrument. For more information regarding debt write-off, see Debt Write-off Regulations, 1994.

6.25.10 Waive of interest

Effective date: 2010-01-11

No PWGSC employee is authorized to waive interest owed to Canada without the appropriate delegated authority. For the authority to waive interest charges, refer to "Waive of Interest" (accessible only on the Government of Canada network) in the departmental Delegation of Authorities Instrument. For more information regarding waive of interest, see TB Interest and Administrative Charges Regulations.

6.25.15 Per Diem rates

Effective date: 2012-04-05

This section of the Supply Manual has been removed as per ARCHIVED - Policy Notification 105 (PN-105).

6.25.20 Contract amendment

Effective date: 2024-04-19

The appropriate approval authority for contract amendments is determined by the type of contract amendment. The different types of contract amendments are listed in the subsections below. 

6.25.20.1 Administrative contract amendments

Effective date: 2024-04-19

Administrative contract amendments are used to make contract changes that do not create additional risk or liability to Canada and do not increase the contract value (that is nil or reduction in contract value amendment). This type of amendment is appropriate for changing contract details such as contact information (for the contractor or the client or the contracting authority), or to reduce the contract value for work no longer required under the contract. A Risk Assessment for Amendments (RAA) is not required for administrative contract amendments because there is no impact to the approval value and no additional risk or liability to Canada. An incumbent, under any level, who holds a valid delegation of approval authority for contract entry for the applicable commodities may approve and sign administrative contract amendments. For more on administrative contract amendments, refer to Annex 6.4.8: Amendment approval instructions for all complexities. 

6.25.20.2 Nil or reduction in contract value amendments involving additional risk to Canada

Effective date: 2024-04-19

Nil or negative value contract amendments that propose changes to either the basis of payment, the method of payment or the contract conditions, so that additional risk or liability is transferred to Canada, must be authorized in accordance with the Risk Assessment for Amendments (RAA). For more on nil or negative value amendments where risk or liability will be transferred to Canada, refer to Annex 6.4.8: Amendment approval instructions for all complexities.

6.25.20.3 Pre-approved contract amendments

Effective date: 2024-04-19

Pre-approved contract amendments are used to exercise options or authorize work that was identified and approved in the original approval documents. These include, but are not limited to:

1. amendments issued to exercise an option for additional quantities or years that formed part of the original bid solicitation and approved as part of the original contract approval submission;
2. amendments which use amounts set-aside for anticipated, but not yet clearly defined, changes (e.g., unscheduled work, design changes, work arising), which were approved as part of the original contract approval submission.

For more on pre-approved contract amendments refer to Annex 6.4.8: Amendment approval instructions for all complexities.

6.25.20.4 Unforeseen contract amendments not pre-approved

Effective date: 2024-04-19

Unforeseen contract amendments are often required to incorporate unforeseen work or unanticipated contract changes that were not preapproved. These include but are not limited to:

1. amendments to purchase an additional quantity of the same item under the contract requirement not previously anticipated and not pre-approved;
2. amendments to add an additional requirement to the contract not previously anticipated and not pre-approved;
3. amendments to extend the period of contract due to unforeseen delays (outside of the contractor's control) to allow all work under contract to be completed; or
4. amendments to increase the contract value beyond the original approval.

Unforeseen contract amendments that do not fit within the description of the original approval or go beyond the scope or value of the original approval must be approved at the appropriate level. The appropriate approval authority level for an unforeseen contract amendment (not previously approved) within Complexity Levels 1 through 3 inclusive is determined by completing a RAA. For unforeseen contract amendments (not previously approved) that fall within Complexity Levels 4 and 5, the approval of the Assistant Deputy Minister - Procurement Branch or Defence and Marine Procurement Branch is required. For more on unforeseen contract amendments not pre-approved refer to Annex 6.4.8: Amendment approval instructions for all complexities.

6.25.25 Financial evaluation of bids/offers/arrangements

Effective date: 2014-09-25

1. For any competitive procurement requiring contract entry approval of the Assistant Deputy Minister or above, more than one employee of Public Works and Government Services Canada must be involved in the evaluation of the prices. For more information on financial evaluation of bids/offers/arrangements, see section 5.45 Financial evaluation of bids.
2. For competitive procurements under Complexity Levels 2 and 3, a peer review of the results of the bid (technical and financial) evaluation and contractor selection must be obtained if determined by the results of the procurement risk assessment.
3. For competitive procurements under Complexity Levels 4 and 5, a peer review is mandatory.
4. Refer to section 5.45.1 Formal Peer Review – evaluation of bids for instruction on performing a Formal Peer Review.

6.25.30 CORCAN

Effective date: 2010-01-11

Although arrangements with CORCAN are not governed by the Government Contracts Regulations and the Treasury Board Contracts Directive, all existing departmental limits governing the approval of entry into and signing of contracts apply.

6.25.35 Stop work orders and notices of termination

Effective date: 2014-09-25

Stop work orders and notices of termination must be approved and signed by a contracting officer in accordance with the Procurement Risk Assessment for Amendments (PRAA). The contract value at the time of the termination is used in the value question of the PRAA.

6.25.45 Trade-ins

Effective date: 2012-04-05

Contracts for which trade-ins have been approved through disposal operations procedures are subject to approval authorities as detailed in Annex 6.4: Conditions imposed on the approval authority limits for Public Works and Government Services Canada personnel. (All trade-ins are disposal operations and, as such, are subject to disposal operations procedures.) The trade-in value will not be considered in determining the required level of authority.

6.25.50 Treasury Board exceptional contracting limits

Effective date: 2012-04-05

1. PWGSC may enter into any form of agreement used by a railway company for permission to construct or maintain a private crossing or a pipe or cable crossing over, across or under the property of the company at a rate or in an amount no greater than those normally charged for each permission.
2. PWGSC may enter into any agreement with a railway, telegraph, telephone or power company for permission to attach wire to poles belonging to the company at a rate or in an amount no greater than those normally charged for each permission.
3. PWGSC may enter into and amend contracts with the United States Government containing that government's usual terms dealing with indemnity and liability, subject to the limits of the TB Contracts Directive.

6.25.55 Contracts for Legal Services

Effective date: 2024-02-16

Contracts for the performance of legal services may be entered into only by or under the authority of the Minister of Justice. However, the following organizations are exempted from this provision:

• Members of the Military Police Complaints Commission of Canada
• Members of the Military Grievances External Review Committee
• The Chief Administrator of the Courts Administration Service
• Members of the Canadian Nuclear Safety Commission
• The Director of Defence Counsel Services
• The Auditor General of Canada
• The Chief Electoral Officer of Canada
• The Commissioner of Lobbying
• The Commissioner of Official Languages
• The Director of Public Prosecutions 
• The Information Commissioner of Canada
• The Intelligence Commissioner
• The Privacy Commissioner of Canada and
• The Public Sector Integrity Commissioner of Canada

6.25.60 Standing offer

Effective date: 2014-09-25

1. The inclusion of a limitation of expenditure in standing offers is optional (see section 4.10.20.1 Standing offer procedures).
2. The approval authority to establish standing offers which do not contain a limitation of expenditure will be determined by the results of the procurement risk assessment using "standing offer" delegation.
3. When completing the risk assessment, contracting officers must enter the total estimated procurement value for the entire standing offer period.
4. For those standing offers which contain a limitation of expenditure, the approval authority required to revise the standing offer method of supply is in accordance with the appropriate contract amendment delegation of authority for the specific commodity (i.e. goods, services).
5. If advance approval was not sought or given to issue a standing offer, then approval to issue each resulting standing offer is required. The total estimated value of each resulting standing offer is used to determine the approval authority.
6. If advance approval for Public Works and Government Services Canada to issue call-ups on behalf of a client against a standing offer was not requested at the time of obtaining approval to establish the standing offer, the approval authority for each call-up will be determined by the procurement risk assessment using the appropriate commodity delegation (e.g. goods, services, construction).
7. For more information on standing offers, see 3.40 Standing offer method of supply and 4.10.20 Request for standing offers. For more information on supply arrangements, see 3.45 Supply arrangement method of supply and 4.10.25 Request for supply arrangements.

6.30 Procurement process initiated by client

Effective date: 2012-04-05

Public Works and Government Services (PWGSC) is sometimes asked to process requirements when the procurement process was initiated by client departments (e.g. sourcing, bidding, evaluation, selection). For details on how to process these types of requirements, refer to section 2.65 Procurement process initiated by client.

6.30.1 Ratification by Treasury Board

Effective date: 2022-05-12

1. If a contracting authority enters into a contract without Treasury Board approval when such approval should have been obtained, ratification by the Treasury Board must be sought as soon as possible.
2. The request for TB approval must include information on the circumstances, the type and value of the contract awarded, and whether it was possible to seek bids.
3. In a case where contract approval is being sought for work already commenced, the contracting officer must include with the request the concerned client department's certification that it had agreed to the commencement of work before the receipt of TB approval.
4. Where ratification is required due to an administrative oversight, the corrective measures taken to minimize administrative oversights must be outlined in the request.

6.30.5 Ratifications within departmental authorities

Effective date: 2014-09-25

1. For procurements that fall within Complexity Levels 1 through 3 inclusive, the approval authority for agreements which involve:

   1. ratification of contractual commitments;
   2. contracts/amendments which include pre-contractual work clauses; or
   3. any other retroactive elements;

   will be the appropriate non-competitive contract approval authority, as determined by the application of a procurement risk assessment and the non-competitive contract approval authority limits.

2. For procurements that fall within Complexity Levels 4 and 5, the approval of the Assistant Deputy Minister is required.

6.30.10 Confirming orders and contracts involving pre-contractual work

Effective date: 2024-04-19

1. Public Works and Government Services Canada (PWGSC) does not normally place contracts to confirm the actions of departments or agencies. The practice of providing such service to client departments should be discouraged to the maximum extent practical. However, it may be necessary for PWGSC to become involved because of its exclusive goods procurement authority. PWGSC may have some value to add in processing confirming orders when the work is complete, or contracts when the work has started.
2. Requests for confirming orders and contracts for pre-contractual work are considered non-competitive and must be evaluated and processed on the basis of the circumstances surrounding each instance. Where the request is the result of attempts to circumvent normal procurement procedures, return of the request to the client department should be a prime consideration.
3. Where the work has been completed, Legal Services will prepare a confirming order that will contain only the information necessary to document the transaction, which includes the parties, the work performed, the dates, the amount, a release and, if required, a transfer of intellectual property rights. The appropriate director or higher authority, as determined by the contract value and non-competitive contract approval authority limits, must approve the confirming orders processed by PWGSC.
4. Where the work has commenced, the contracting officer will prepare a contract. This contract should only include work that was not subject to a proper contract authorization. Even though the work started before a required contract authorization, the contract must not be backdated. The date in the Period of the Contract or Period of Performance clause must be the award date of the written contract. The contract cannot be backdated or retroactive under any circumstances. To ensure that the work done before the contract date will be covered by the contract, the pre-contractual work clause C0210C of the Standard Acquisition Clauses and Conditions Manual, indicating the date the work has started, must be included in the contract to pay the contractor for any work performed before the award of the written contract. For procurements involving pre-contractual work where work has commenced but not yet completed, the appropriate approval authority will be determined as follows:
   1. For procurements that fall within Complexity Levels 1 through 3 inclusive, the appropriate authority, as determined by the Procurement Risk Assessment and non-competitive contract approval authority limits, must approve the contracts processed by PWGSC.
   2. For procurements that fall within Complexity Levels 4 and 5, the approval of the Assistant Deputy Minister - Procurement Branch or Defence and Marine Procurement Branch, is required.
5. The client department will remain liable for any complaints resulting from their actions.

Annexes

Consult the list of annexes below related to Chapter 6 - Approvals and authorities.

• 6.1 - Annex: Procurement Plan instructions
• 6.2 - Annex: Contract Request instructions
• 6.3 - Annex: Preparation of contract amendment approval documents
• 6.4 - Annex: Conditions imposed on the approval authority limits for Public Works and Government Services Canada personnel
  • 6.4.1 - Annex: Approval authorities and additional signing authorities in support of clients' programs only - other than for Canadian Commercial Corporation
  • 6.4.2 - Annex: Contracting limits including exceptional authorities
    • 6.4.2.1 - Annex: Contracting limits for basic and standard procurements
    • 6.4.2.5 - Annex: Contracting limits for complex procurements
  • 6.4.3 - Annex: Exceptional contracting limits for complex procurements
  • 6.4.4 - Annex: Notes to exceptional contracting limits for complex procurements
  • 6.4.5 - Annex: Table of equivalent positions
  • 6.4.6 - Annex: Contract amendment approval instructions for Complexity Levels 1, 2 and 3
  • 6.4.7 - Annex: Complex contract amendment approval instructions
  • 6.4.8 - Annex: Contract amendment approval instructions for all complexities