Annexes for Chapter 6 - Approvals and authorities
Consult the annexes related to Chapter 6 – Approvals and authorities. This includes information on contracting limits for basic, standard and complex procurements.
Table of contents
- Chapter 6 main page
- 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
- 6.4.3 - 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
Annex 6.1: Procurement Plan instructions
Effective date: 2024-04-19
The Procurement Plan must be prepared as a memorandum from the Senior Director (or Director) to the Director General or Regional Director General -or- from the Director General or Regional Director General to the Assistant Deputy Minister (ADM) and must include the elements identified below.
Formal Procurement Plan
Description
Give a brief description of the requirement, including any options, advance approvals and set-aside amounts. Indicate the period of the proposed contract and options, where applicable.
Insert relevant information if procurement exceeds contract approval limit of director general/regional director general (DG/RDG) and is a non-competitive procurement (including non-competitive procurements where an advance contract award notice is used).
The ADM is to be notified by way of a copy of the signed procurement plan of non-competitive procurements (including non-competitive procurements where an Advance Contract Award Notice is used) within 48 hours after they are approved by the DG/RDG.
Background
Provide background information and overall context. Address any audit recommendations, Canadian International Trade Tribunal (CITT) determinations, Treasury Board decisions, etc. specific to the requirement.
Estimated cost and name of client
State the estimated cost, the Goods and Services Tax or Harmonized Sales Tax included, for the requirement. Include any options, set-aside amounts, etc., and state which client department it is chargeable to.
Anticipated contract (or standing offer or supply arrangement) approval authority required
Indicate the anticipated contract approval authority. Explain why this would be the approval authority, if not evident.
Sourcing
Identify applicable trade agreements (e.g. Canada-European Union Comprehensive Economic and Trade Agreement, World Trade Organization Agreement on Government Procurement, Canadian Free Trade Agreement, etc.), Comprehensive Land Claims Agreements, and any significant policies governing sourcing decisions (Procurement Strategy for Indigenous Business, Canadian Content Policy, Shipbuilding, Repair, Refit and Modernization, Policy on Green Procurement, etc.).
Explain the sourcing strategy, i.e., GETS, other public advertising, source lists (one time, permanent).
Substantiate any decision to use sole source.
For procurement plans for which Treasury Board (TB) submissions will be required, a substantiation as detailed in paragraph b.ii. of section 6.5.15 Treasury Board submission must be included.
Policy issues
Outline any special or unusual aspects of the procurement, for example, a deviation from policy.
Recommend a course of action to resolve or handle any problems involving potential major risks or deviations from sourcing policy or other PWGSC policy. Where there are major risks inherent in the proposed approach, they must be examined in consultation with PWGSC financial authorities and Legal Services.
Evaluation and contractor selection methodology
Identify the evaluation criteria and the selection method to be used with any bid solicitation, including pricing basis, point rating or mandatory/desirable criteria for the technical evaluation.
Anticipated basis of payment
Provide an indication of the anticipated basis of payment to be used in the contract, (e.g., firm price, fixed time rates, ceiling price, limitation of expenditure, etc.)
Use this section to substantiate the use of advance payments, and to indicate when financial security (e.g. surety bond, irrevocable standby letter of credit) will be required from the supplier/contractor. Address contract audit provisions.
Milestones
Give target dates for important milestones (for example, bid solicitation, contract award, delivery schedule) in the form of "early" May or "mid" August or "late" October, rather than specific dates.
Additional comments
Include any information that should be brought to the approval authority's attention, e.g. limitation of contractor's liability, fairness monitor, industrial security requirements, intellectual property, business line consultations, green procurement.
Contracting officer
State the name, sector/region, division and telephone number of the authority responsible for the project.
Comments
Leave two or three lines for comments by the approval authority.
Recommended by:
______________________
Senior Director or Regional Director OR
Director General/Regional Director General
Sector or Region
______________________
Date
Approved by:
______________________
Director General/Regional Director General OR
Assistant Deputy Minister
______________________
Date
Add the Sole Source Questions and Answers as Annex A
Annex 6.2: Contract Request instructions
Effective date: 2020-07-01
Contract Request
- General
- If contract entry was not pre-approved through the Contract Planning and Advance Approval (CPAA) process, or if a procurement plan was used at the procurement strategy phase, a contract request for approval to enter into a contract must be prepared prior to contract entry. Approval must be obtained before accepting any offer from a supplier or requesting a potential contractor to carry out specific work.
- Prior to preparing the contract request, contracting officers must review the risks identified in the procurement risk assessment and the original approval document (prepared at the time the procurement strategy was approved). If the risks have changed during the procurement process, the contracting officers must complete a new procurement risk assessment and identify the additional or new risks, provide an explanation as to why the risks have changed and what mitigation strategies will be put in place to reduce risk.
- The contract request must give an accurate description of the terms and conditions requiring approval, which must reflect and be supported by data contained in the applicable files. Each contract request must identify and explain any proposed deviations from applicable policies and procedures.
- Details of the proposed contract must be recorded clearly and concisely in the contract request.
- The contract request must be supported by a copy of the proposed contract and the applicable files.
- The approval authority will review the contract request and will either grant full approval to proceed, identify concerns and direct changes to the request or request additional steps before award.
- Responsibility of the Contracting Officer
- For procurements requiring approval of the ADM or above, the contracting officer must see to the preparation, recommendation and completion of the Contract Request on forms PWGSC-TPSGC 1151-1 (accessible only on the Government of Canada network) and PWGSC-TPSGC 1151-2 (accessible only on the Government of Canada network) in accordance with the following preparation instructions:
- certify that the information provided in the Contract Request is an accurate representation of information on file;
- submit the Contract Request to the appropriate approval authority and ensure that:
- the submission is forwarded and recommended by all line management officers between the contracting officer and the approval authority;
- sector or region resources such as legal counsel, contract quality control, cost analysts, and commodity teams review the submission, as required. See 6.10.10. Cost and price analysis services;
- obtain policy interpretations from the Acquisitions Program Policy Directorate and opinions from departmental specialists (e.g. Legal Services) on the consequences of any proposed deviations from general conditions, policies and regulations;
- obtain the client department's agreement for any deviations from specifications, standards and delivery requirements; and
- highlight, in the recommendation, the facts surrounding any proposed deviations and their negative consequences to Canada.
- For procurements requiring approval of the ADM or above, the contracting officer must see to the preparation, recommendation and completion of the Contract Request on forms PWGSC-TPSGC 1151-1 (accessible only on the Government of Canada network) and PWGSC-TPSGC 1151-2 (accessible only on the Government of Canada network) in accordance with the following preparation instructions:
- Preparation of Contract Request
- Contracting officers must prepare the Contract Request as outlined below.
- Contract Request form PWGSC-TPSGC 1151-1 (accessible only on the Government of Canada network) is used for contracts requiring approval from the Assistant Deputy Minister, Deputy Minister or Minister. Information can be presented in either French or English.
Part 1 Submission data - Contract Request - form PWGSC-TPSGC 1151-1
- The key elements of a Contract Request include the following:
- the requirement and its end use;
- the supplier and the selection criteria;
- the cost, basis of payment and cash flow.
- The preparation should focus on these general key elements. The following sections provide additional considerations for the contracting officer's attention, when applicable.
- Priority Attention
If priority consideration is requested because of delivery requirements or for any reason, including expiry of price validity, state the consequences of not meeting the expiry date. - Subject
State whether this is a request for authority to enter into contract or authority to utilize a standing offer method of supply or supply arrangement. - Proposal
- State action proposed (e.g. authority to enter into contract with; to authorize the use of a standing offer or the use of a Master (Regional) standing offer). Identify the contractor by correct legal name and give its location (e.g. city, town or village; province; country if other than Canada). Briefly describe the goods or services being supplied and their end use; part numbers and specification numbers should be referred to in Part 2 of form PWGSC-TPSGC 1151-2 (accessible only on the Government of Canada network) only. State the delivery point (e.g. city, town, etc.). If there are numerous delivery points, state 'Delivery to various destinations' but do not list them in this section. Refer to an appendix.
- Specify any proposed deviations from Cabinet or TB contracting policies.
- When certain terms or certain deviations from departmental policies are being recommended in the Contract Request, creating a financial obligation for Canada, request authority for the monetary obligation in this section and, in the Remarks section, explain why it is recommended that Canada be responsible in this case.
- If any advance payments are being proposed, specify in this section and describe in the Basis of Payment section.
- If there is an option to be exercised by Canada by a specific date, and the method of pricing is known or pricing formula agreed upon and the funds for the option are available in the requisition (or expected to be provided in the future), request approval to exercise the option in this section. Provide the method of pricing for the option or pricing formula, and the final date for exercise of the option in the Basis of Payment section.
- Indicate in a separate paragraph when approval is being requested for an additional estimated amount so that provision may be made for unscheduled work such as work arising, design changes or escalation.
- In the case of a proposed contract for a specified term or period only, or of a proposed standing offer, state whether the expiry date is for ordering or delivery.
- Cost
- Show the total estimated cost to Canada to complete the proposed contract, Goods and Services Tax/Harmonized Sales Tax (GST/HST) included. When the price to be paid is in a foreign currency, the estimated Canadian equivalent, based on the conversion rate currently in effect, should follow in brackets. Identify the funding source (vote and requisition number) and name the certifying department or agency. For standing offers which are not funded, state that the amount is chargeable to the client.
- The total estimated cost, as mentioned in the first line of the preceding paragraph, refers to the total amount payable to the contractor, GST/HST included, under the contract, including payment for all goods or services, plus any options for which funds are available (or expected to be provided in the future) and any additional estimated amount for foreseeable subsequent amendments covering unscheduled work, etc., for which approval is being sought.
- Include a schedule of cash flow, providing a distribution by fiscal year of the funds expected to be disbursed during the course of the contract.
- Basis of Payment
- Summarize all factors which have a bearing on the proposed purchase, such as (details of major elements of cost should be provided in an appendix):
- price to be paid;
- method of pricing;
- firm lot price;
- firm unit price;
- target price, ceiling price and incentive fee formula;
- target price and incentive fee formula without ceiling price;
- fixed time rate; or
- price-to-be-negotiated (PTBN) - include a formula for determination of firm basis of payment, or provide an explanation as to why inclusion of a formula is not possible, and why PTBN is not a ceiling price, if this is the case.
- audit or verification provisions;
- customs duty;
- Goods and Services Tax:
- included,
- extra,
- exempt or zero-rated (indicate reason for exemption), or
- not applicable;
- other taxes;
- delivery terms, for example:
- FOB (free on board) destination,
- FAS (free alongside ship),
- FAF (free alongside flight),
- FOB common carrier, contractor's plant,
- CIF (cost, insurance and freight);
- exchange rate fluctuation provisions, if applicable. Identify the amount of foreign currency which is subject to the fluctuation and any special conditions;
- any escalation provisions except those provided for in the general conditions forming part of the contract (e.g. sales tax, excise tax, customs duties);
- option – method of pricing or pricing formula plus final date for exercise of option.
- Describe any advance payment requirements.
- Provide the proposed basis of payment for any unscheduled work (introduced in the "Proposal" section and included in the "Cost" section as an estimated amount).
-
If a large number of items and/or destinations are involved, insert the following statement under Basis of Payment:
"Unit (and/or Lot) prices totalling $ ________, sales tax ________, FOB ________, as detailed in the attached annex or in an annex attached to the proposed contract."
- Summarize all factors which have a bearing on the proposed purchase, such as (details of major elements of cost should be provided in an appendix):
-
Remarks
Ensure that source and price are adequately justified, by using the following criteria:
- Indicate how many suppliers were requested to bid and the method of soliciting bids. If a competitive process was followed, state the number of bids received and the relative standing of the recommended bidder with regard to price, e.g., the lowest being recommended. When a non-competitive (sole source) procurement strategy is chosen, the legal authority to use an exception to a competitive bidding process must be stated. (See 3.10 Competitive contracting process and 3.15 Non-competitive contracting process.)
- If other than the lowest-responsive bid is recommended, explain clearly why any lower bid is not acceptable.
- If a bid is considered non-responsive because it does not meet the mandatory requirements of the solicitation, but is lower in price than the lowest-responsive bid, concisely describe the major deficiencies.
- If two bids have an identical price and one of the two is recommended for acceptance, detail the governing selection criteria.
- If selection is not made by competitive bid, provide sufficient support for the choice made. In the absence of competition, quote the price certification obtained and explain why the price is considered to be reasonable and justifiable. Include a brief summary of Part 2, Section F2, Previous Price, of form PWGSC-TPSGC 1151-2 (accessible only on the Government of Canada network).
- If deviations from Cabinet or TB contracting policies are recommended, quote opinions given by the functional branches, specifying any financial or other consequences, and give reasons for such recommendations. Whenever possible, express Canada's proposed obligations in monetary terms.
- If deviations from the provisions of Canada's trade agreements are recommended, provide reasons for the deviation.
- If approval is being requested for any estimated amount for unscheduled work arising, design changes or escalation, as introduced in the "Proposal" section, estimated in the "Cost" section and substantiated in the "Basis of Payment" section, provide support in this section.
- Describe any options in this section and include the criteria that will be used for determining whether the option should be exercised.
- If the proposed contract is of a value in excess of $2 million for goods and services or of any value with a socio-economic impact judged to be significant, include a section dealing with the socio-economic considerations, including any funding implications. Attach the recommendations of the dedicated management committee.
- If advance payments are recommended, explain why and state the benefits to Canada.
- Include a statement on the amount of Canadian content and the creation/maintenance of jobs in Canada and their location.
- Provide details surrounding the medium, medium-high and high risks with proposed mitigation strategies.
- Describe briefly the profit calculations.
- State the dates for commencement and completion of deliveries included in the bid being recommended for acceptance. Do not include all of the delivery details.
- Whenever possible, give the TB number which grants the client program approval.
- Expiry Date
State the expiry date of the bid.
Note: If genuine urgency exists, the reason should be stated in Part 1, "Priority Attention" section.
Part 2 Supporting data - Contract Request - form PWGSC-TPSGC 1151-2
In particular, note the information in sections A to F below.
When a non-competitive (sole source) procurement strategy is chosen based on exception 6.(d) of the Government Contracts Regulations, the responses to the questions found in Annex 3.1: Treasury Board questions for sole source must be attached to this Part 2.
Section A - Details of contract demand or requisition
- If all of the goods or services requisitioned by the client are not in the proposed contract for which approval is being sought and Part 1 of form PWGSC-TPSGC 1151-1 (accessible only on the Government of Canada network) did not make this clear, briefly summarize, for the understanding of the approval authority, the total number of items on the requisition and the number included in the proposed contract. If there is not enough space because of the size of the summary explanation, refer to the appendix or document on file which provides the details.
- If the goods and/or services requisitioned are the same as those being recommended for acceptance from the proposed supplier, describe them in this section or refer to the work specifications.
Section B - Special terms not included in part 1
- Detail any special terms which will have an effect on the proposed contract which are not included in Part 1 of form PWGSC-TPSGC 1151-1 (accessible only on the Government of Canada network), such as financial security, royalty payments, etc. Address conformance with the following policies (some sectors/regions may prefer to address these policies in Section F, either location is acceptable):
- International Sanctions,
- Federal Contractors Program for Employment Equity, and
- Conflict of Interest.
- It is not necessary to refer to normal escalation provisions contained in the general conditions.
Section C – Delivery
State the delivery requirements specified by the client and promised by the supplier and the acceptability of delivery if not in accordance with the delivery specified.
Section D - Type of contract document
State the type of contract document, e.g. "Your Tender is Accepted"; "You are Requested"; "Standing Offer"; "Your Proposal is Accepted"; "Formal Agreement".
Section E - Bids received
State if there was a public opening of bids.
Section F - Basis of recommendation
F1 - Price support for negotiated cases
In the absence of competition, detail the price support which has been obtained, if this was not provided in Part 1 of form PWGSC-TPSGC 1151-1 (accessible only on the Government of Canada network). State reasons why the various price elements are considered to be reasonable and justifiable. Substantiate the profit or mark-up factor being recommended.
F2 - Previous price
Provide details of previous prices for negotiated contracts when available, including the percentage of increase or decrease, and an explanation for any substantial increases. Provide this information also for competitive contracts unless the number of low dollar value items makes the comparison too complex to serve a useful purpose.
F3 - Discrepancies, if any, between bid solicitation and bid recommended
Provide details and reconcile amounts, when discrepancies occur between bid solicitation and bid recommended.
F4 - Support for deviations from departmental policy, changes or deletions in general conditions and supplemental general conditions
Support deviations from departmental policy in this section.
F5 - Acceptability of goods and/or services if not in accord with specifications
Support acceptability of supplies if not to specifications.
F6 - Method of payment
- Detail the method of payment. If progress payments are being proposed, fully describe them, including any holdbacks.
Note: If there are numerous items, and items and unit prices are not detailed in Part 1 of form PWGSC-TPSGC 1151-1 (accessible only on the Government of Canada network), or in an appendix to Part 1, make reference in Section F to the specific document on the file which details the information.
- Other data, if applicable, should be stated under Section F, such as:
- Add list of suppliers who were invited to bid and their ownership.
- Attach financial officer's opinion on supplier's financial status.
- Attach legal counsel's opinions on the legal nature of the case and on the contract submission, including its consistency with the contract.
- If not previously mentioned in Section B, address the contractor's compliance with:
- international sanctions;
- Federal Contractors Program for Employment Equity; and
- conflict of interest provisions.
Annex 6.3: Preparation of contract amendment approval documents
Effective date: 2024-04-19
1. Amendments requiring the approval of Directors General/Regional Directors General and below:
- The Contract Amendment Request (CAR) may be used.
- If a Procurement Risk Assessment for Amendments (PRAA) is required for the proposed amendment, it must be attached and the results discussed in the CAR.
- Contracting officers should include the following information, as applicable:
- Description/Proposal: Briefly describe the goods or services as provided in the original CPAA and state the purpose of the proposed amendment.
- Amendment Increase/Decrease: Show total cost of the proposed amendment in Canadian dollars or foreign currency, as applicable. If using foreign currency, give the equivalent in Canadian currency for the amendment only.
- Provide the name of the client involved.
- Approval Summary: Provide a table addressing the approval documents, the document value, the approval value of each approval documents, and the approval level.
- Proposed Basis of Payment: If any alteration in the basis of payment is proposed, provide justification and support. For more information on modifications to the basis of payment, refer to subsection 3 of Annex 6.4.8: Contract amendment approval instructions for all complexities.
- Risk: Provide a description of the risk response measures for those risks identified as medium-high and high, as applicable.
- Remarks: Provide the following information, as a minimum:
- Give additional important information required for a proper assessment of the proposed amendment. For example, if the proposed amendment is for a substantial increase, state why this additional requirement did not form part of the original requirement.
- Provide a justification for the amendment.
2. Amendments requiring approval at the ADM level and above:
- Form PWGSC-TPSGC 1151-1 (accessible only on the Government of Canada network) Contract Request/Contract Amendment Request (Part 1 - Submission Data) and Form PWGSC-TPSGC 1151-4 (accessible only on the Government of Canada network) Contract Amendment Request (Part 2 - Supporting Data), must be used and presented in either French or English.
- Authority to amend contract or authority to revise a standing offer method of supply: Form PWGSC-TPSGC 1151-1, can be used to obtain approval to utilize a standing offer that has been revised by the bidder.
Part 1 - Submission data contract amendment request - form PWGSC-TPSGC 1151-1
The key elements that should be included in a Contract Amendment Request are:
- the purpose of the amendment; and
- the amendment cost.
The following sections provide additional considerations for the contracting officer's attention, when applicable.
- State the purpose of the proposed amendment and briefly describe the goods and/or services, as provided in the original contract request (for example, to amend the contract with ABC for the supply of 20 additional widgets). Include, in the case of goods or services being added, the prices, sales tax position, delivery points, etc.
- Identify any differences between funds previously authorized and contract commitments.
- If a large number of items are involved, state:
"Unit (and/or Lot) prices totalling $ ____________, sales tax ____________, FOB_____________, as detailed in the attached appendix or in an appendix attached to the proposed amendment." - If the proposed amendment involves any deviations from Cabinet or TB contracting policies, not included in the original approval, describe the deviations fully.
- Show total cost of the proposed amendment in Canadian dollars or foreign currency, as applicable. If using foreign currency, give the equivalent in Canadian currency.
- Show the proposed amended estimated cost of the contract. If the previously authorized total contains an amount for specific future work or foreseen yet unscheduled work (such as design changes or work arising), always include this amount in the total estimated cost. If not, authority for the amount set aside is lost.
- Provide the cash flow and other information, as explained under the "Cost" section of the contract request in Annex 6.2: Contract Request instructions.
- Provide a brief description of previous amendments and their cost.
- Give additional important information required for a proper assessment of the proposed amendment. For example, if the proposed amendment is for a substantial increase, state why this additional requirement did not form part of the original requirement. Refer to the Remarks section of the contract request in Annex 6.2: Contract Request instructions for a guide to the information, which should be provided, if applicable.
- When a Contract Amendment Request requires a higher approval level than originally authorized in the contract, detail the basis for the selection of the contractor and the Basis of Payment. It is not necessary to repeat in Part 1, the present Basis of Payment if it was previously approved at a higher level or by the contracting authority being approached now for approval of this amendment.
- If any alteration in the basis of payment is proposed, provide justification and support. Refer to subsection 3 of Annex 6.4.2: Contracting limits including exceptional authorities.
- If a difference exists between funds authorized and contractual commitments, explain why.
- Provide details surrounding the medium-high and high risks relating to the proposed amendment with proposed mitigation strategies.
- If items are being added, or when establishing a firm Basis of Payment for a contract, previously issued on a price-to-be-negotiated basis, provide price support.
Show the original authority for entry into the contract and the authority for each approved amendment. When Treasury Board (TB) authority has been obtained, give the TB number and date and when the Minister's approval has been obtained and state "ministerial authority." In all other cases, state "departmental authority." Do not show amounts in Part 1.
Part 2 - Supporting data contract amendment request - form PWGSC-TPSGC 1151-4
In completing this form, pay particular attention to providing all supporting information. In particular, note the following:
Section A - Physical progress to date
In this section, summarize the progress of the contract, such as quantities already delivered and the percentage completed; work in progress or completed; advance or progress payments made or any other preliminary expenses; and other matters of a similar nature.
Section B - Authorities for and status of contract, plus amount of proposed amendment
Give specific authorities and authorized amounts under the "Authority and Amount" column for the contract and each amendment (that is, TB, Minister, Deputy Minister, Director General, Director, etc.). Any differences between authorities (approvals) and commitments should be reconciled in Section B. Also, if the amount of the proposed amendment exceeds the funds available, it should be noted in this section.
Section C - Basis and method of payment as last amended
Describe briefly the Basis of Payment and Method of Payment as Last Amended, including sales tax position, delivery terms [for example, FOB], advance and progress payments) unless it is proposed to amend the Basis of Payment or Method of Payment. In this case, give a detailed description of the present Basis of Payment and Method of Payment for any portion of the work for which a new Basis of Payment or Method of Payment is being recommended. Refer to Annex 6.4.2: Contracting limits including exceptional authorities.
Section D - Basis of recommendation
- Support price and changes in terms or method of payment.
- Detail all price support for any items being added or when establishing a firm Basis of Payment for a contract, previously issued on a price-to-be-negotiated basis.
- Explain any discrepancies between: (a) the amount approved for the contract and amendments (if any), and (b) the total committed.
Note: If numerous items and unit prices have not been detailed in Part 1 of form PWGSC-TPSGC 1151-1 (accessible only on the Government of Canada network), or in an annex to Part 1, make reference in Section D to the specific document of the file that details the information.
3. Preparation of Treasury Board amendment submission
Treasury Board approval is required for any contract amendment exceeding the limits outlined in Annex 6.4.2: Contracting limits including exceptional authorities and subject to the exceptions detailed in Annex 6.4.1: Approval authorities and additional signing authorities in support of clients' programs only - other than for Canadian Commercial Corporation.
Annex 6.4: Conditions imposed on the approval authority limits for Public Works and Government Services Canada personnel
Effective date: 2014-09-25
The approval authority limits for Public Works and Government Services Canada (PWGSC) personnel are subject to the following conditions:
- that contracting authorities ensure that, for requirements and associated amendments requiring their approval, the conditions of the contract are consistent with the representations made to them as to the substantive nature of the transaction;
- that Legal Services be consulted when the contracting officer is considering a deviation from Standard Acquisition Clauses and Conditions Manual clauses, departmental standard procurement templates, or commodity or sector-based legally approved templates. Contracting officers may seek advice from Legal Services on sensitive requirements. For other situations requiring consultation with Legal Services, see section 3.110 Legal Services.
Note: The Minister's approval authority is required for specific submissions described in Annex 6.4.1: Approval authorities and additional signing authorities in support of clients' programs only - other than for Canadian Commercial Corporation.
6.4.1: Approval authorities and additional signing authorities in support of clients' programs only - Other than for Canadian Commercial Corporation
Effective date: 2024-05-31
This annex describes the internal approval and signing authorities and exceptions to the internal approval authorities. It also addresses additional signing authorities such as for progress payments, certifications, etc.
Main content
1. Approval authorities
- Internal approval and signing authorities are in accordance with Annex 6.4.2: Contracting limits including exceptional authorities.
- Treasury Board (TB) approval is required for submissions exceeding the authority found in Annex 6.4.2.
- Exceptions to Annex 6.4.2 are described in 1.1 below.
1.1 Exceptions to internal approval authorities
1.1.1 Former public servants
- Contracting limits in Annex 6.4.2 apply to submissions granting approval to enter into a contract including amendments for the services of former public servants in receipt of a pension when the contract value, including amendments, exceeds $200,000 (non-competitive).
- Ministerial approval is required for submissions granting approval to enter into a non-competitive contract including amendments for the services of former public servants in receipt of a pension under the Public Service Superannuation Act (PSSA) when the contract value, including amendments, exceeds $200,000 (non-competitive).
- Minister approval is required prior to entering into a non-competitive service contract with a former public servant in receipt of a pension under the PSSA, when the annualized rate of remuneration exceeds $200,000 and the contract term exceed ninety (90) working days; The fee component in any non-competitive contract can be abated if the individual has been retired for less than one year and is in receipt of a pension. See section 3.90 Contracting with former public servants, subsections g and h. 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.
- Ministerial approval is required for submissions granting approval to enter into or amend a non-competitive service contract with former public servants 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 (WRD) 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 contract is involved. See section 3.90, subsection i.
Note: For more information on the definition of former public servants and pension, see section 3.90, subsection b.
1.1.2 Confirming orders
Submissions granting approval to issue a confirming order must be approved at the Director level or higher in accordance with the non-competitive contract approval authority limits in Annex 6.4.2: Contracting limits including exceptional authorities. The limitation to non-competitive contract approval authority limits apply to all positions below Assistant Deputy Minister. (See 6.30.10 Confirming orders and contracts involving pre-contractual work.)
1.1.3 Royalty payments
- For contracts subject to the Defence Production Act (DPA), when royalty payments exceed five percent, Deputy Minister approval is required before entering into a contract. (Approval of the Deputy Minister is not sought to enter into contract, but to permit Canada to pay the royalty.)
- 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.
- To obtain the approval of the Deputy Minister for royalties exceeding five percent, the following information is to be provided on Part 1 of the contract request:
- details of the royalties;
- a forecast of anticipated future purchases beyond the requirement in the present submission;
- the comments of Legal Services.
1.1.4 National Security Exception
- The Assistant Deputy Minister, Acquisitions Branch (ADM/AB) must have approved the National Security Exception (NSE) pursuant to a letter from the client ADM requesting the NSE before the document approval process takes place.
- Following NSE approval by the ADM/AB, the normal document approval process and authority apply.
- For complete details of the NSE process, see 3.105 National Security Exceptions.
1.1.5 Ineligibility and Suspension Policy Clauses
- Public Interest Exception (PIE): A PIE must be invoked prior to entering into a contract, supply arrangement or standing offer with an offeror, or assigning a contract to proposed assignee who has been determined to be ineligible or suspended under the Ineligibility and Suspension Policy.
A request for a PIE must be escalated to the Deputy Head or equivalent, and the Registrar of Ineligibility and Suspension must be notified of the request. - If a contractor wishes to enter into a first-tier subcontract with an ineligible or suspended subcontractor, contracting officers are to escalate this request to the appropriate Assistant Deputy Minister.
2. Additional signing authorities
Signing authorities for purchase orders, contracts, standing offers, supply arrangements, formal agreements and arrangements, stores and supply transfer orders, written direction to the Agency of Record, assignments, go-ahead letters and messages, letters of intent, consents to subcontract, termination for convenience notices, and amendments to any of the above, are in accordance with Annex 6.4.2: Contracting limits including exceptional authorities.
2.1 Advance, milestone and progress payments
The authority for certification of advance, milestone and progress payment claims (form PWGSC-TPSGC 1111 (accessible only on the Government of Canada network), Claim for Progress Payment), as a prerequisite for client certification pursuant to section 34 of the Financial Administration Act is as follows:
- For incumbents of positions listed in Annex 6.4.2, with the exception of Intern Officers/Trainees, Senior Purchasing Assistants and Procurement Assistants, unlimited certification authority applies;
- For Senior Purchasing Assistants:
- for contracts beyond their approval authority: certification authority for claims up to $40,000, with the exception of a final claim or of a release of a holdback;
- for contracts within approval authority: certification for all claims.
2.2 Settlement and release documents
- The authority to sign release and settlement documents (form PWGSC-TPSGC 9223-2 (accessible only on the Government of Canada network), Settlement and Release) for terminations on behalf of the Minister is delegated as follows:
- Arising from termination for convenience:
- Director General, Procurement Support Services Sector, Acquisitions Program (PSSS/AP)
- Director, Centralized Services Directorate, Acquisitions Program (CSD/AP)
- Other than for termination of convenience, contracting officers must consult with Finance Branch to determine the appropriate approval authority level.
- Arising from termination for convenience:
- For assistance, regarding terminations for convenience, contracting officers may consult the Specialized Services for Procurement Division (SSPD), at TPSGC.parrc-aptfc.PWGSC@tpsgc-pwgsc.gc.ca.
2.3 Contract security
The Contract Security Program (CSP), has the authority to provide instructions to contractors concerning compliance with contract security requirements.
Annex 6.4.2: Contracting limits including exceptional authorities
Effective date: 2024-04-19
Instructions
- The Delegation of Authorities Tables for the Acquisitions Program can be found on the Delegation of Authorities (accessible only on the Government of Canada network) page.
- The limits shown in the Delegation of Authorities Tables include both contract entry and amendment authority. These limits are maximums as defined by the application of both a Complexity Assessment and a Procurement Risk Assessment. The authority required for contract entry or amendments will be determined on a case-by-case basis through the application of a procurement risk assessment appropriate for the level of complexity. This assessment will identify the specific risks of a procurement or proposed amendment, and the appropriate level of approval required for contract entry or issuing a contract amendment.
- For Complexity Levels 4 and 5 inclusive, with the exception of administrative amendments, the approval authority for contract entry and non-administrative amendments is set at Assistant Deputy Minister, Procurement Branch or Defence and Marine Procurement Branch, regardless of the competitiveness of the requirement.
- The relevant limits for individual officers, which may be lower than the maximums identified in the Delegation of Authority Tables, are contingent upon Acquisitions Program policies and procedures. Contracting officers must ensure that any authorities they exercise are in accordance with their approved delegation form.
- For the purposes of contract approval authorities, an Advance Contract Award Notice (ACAN) is classified under the "competitive" category. The competitive approval levels apply whenever an ACAN has been posted and no valid Statement of Capabilities was submitted.
- Refer to Annex 6.4.5 Table of equivalent positions for position titles under each level.
- Any incumbent, under any level, who holds a valid delegation of approval authority for contract entry may sign a contractual document, regardless of its dollar value, providing that the incumbent has delegation of authority for the same type of authority that was exercised for the approval of the contractual document. For example, if the incumbent holds a valid delegation of approval authority for contract entry for goods and military repair and overhaul, then the incumbent has signing authority for goods and military repair and overhaul.
- For information on contract entry approval authorities for contracts requiring ratification, refer to section 6.30.5 Ratifications within department authorities.
- If the total cost of the procurement for approval purposes exceeds the limits set out in PWGSC’s Delegation of Authority Instrument, Treasury Board approval is required.
- The Delegation of Authority Tables outline PWGSC’s Departmental Contracting Limits in accordance with Appendix A: Contracting Approvals of the Directive on the Management of Procurement.
- Unless otherwise stated within the "Notes" accompanying the Delegation of Authorities Tables, the exceptional authorities include both contract entry and amendment authority. Once the departmental authority limit for the exceptional authority has been reached, any subsequent approvals require a Treasury Board submission.
- Standing Offers and Supply Arrangements
- Approval and amendment authorities are set in the Exceptional Contracting Limits detailed on the Delegation of Authorities (accessible only on the Government of Canada network) page.
- The Contract Planning and Advance Approval (CPAA) issued to seek advance approval to use the standing offer method of supply, or establish a supply arrangement (or the formal procurement plan to seek procurement strategy approval), must be approved based on the total estimated value (i.e. the entire project/program), Goods and Services Tax/Harmonized Sales Tax (GST/HST) included, of the requirement that is proposed to be satisfied by this method of supply.
- Therefore, if it is intended to issue more than one standing offer against a Request for a Standing Offer, the sum of the total estimated value (GST/HST included) of all resulting standing offers must be used to obtain CPAA or formal procurement plan approval.
Risk-based procurement delegation
This grid illustrates the delegation limits of individual officers based on the risk level and the complexity of the procurement. Row headers identify the risk level, moving down from high to low. Column headers identify complexity level, moving left to right from Level 1 through 5 inclusive. The characteristics applicable to the various levels of complexity are identified at Annex 2.4 Characteristics of Acquisitions Program Procurement Complexity Levels.
| COMPLEXITY LEVEL | ||||||
|---|---|---|---|---|---|---|
| Level 1 | Level 2 | Level 3 | Level 4 | Level 5 | ||
| Risk Level | High | Manager | Director | Director General | Assistant Deputy Minister | Assistant Deputy Minister |
| Medium-High | Supply Team Leader | Manager | Senior Director/Regional Director/Director | Assistant Deputy Minister | Assistant Deputy Minister | |
| Medium | Supply Specialist | Supply Team Leader | Manager | Assistant Deputy Minister | Assistant Deputy Minister | |
| Medium-Low | Supply Officer | Supply Specialist | Supply Team Leader | Assistant Deputy Minister | Assistant Deputy Minister | |
| Low | Intern Officer/Sr Purchasing Assistant/Procurement Assistant | Supply Officer | Supply Specialist | Assistant Deputy Minister | Assistant Deputy Minister | |
Annex 6.4.2.1: Contracting limits for basic and standard procurements
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 to Annex 6.4.2: Contracting limits including exceptional authorities.
The obsolete content of Annex 6.4.2.1 has been deleted but can be viewed for reference only in the Supply Manual Archive (accessible only on the Government of Canada network), Version 2014-3.
Annex 6.4.2.5: Contracting limits for complex procurements
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 to Annex 6.4.2: Contracting limits including exceptional authorities.
The obsolete content of Annex 6.4.2.5 has been deleted but can be viewed for reference only in the Supply Manual Archive (accessible only on the Government of Canada network), Version 2014-3.
Annex 6.4.3: Exceptional contracting limits for complex procurements
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 to Annex 6.4.2: Contracting limits including exceptional authorities.
The obsolete content of Annex 6.4.3 has been deleted but can be viewed for reference only in the Supply Manual Archive (accessible only on the Government of Canada network), Version 2014-3.
Annex 6.4.4: Notes to exceptional contracting limits for complex procurements
Effective date: 2014-09-25
With the promulgation of PN105R1 - Procurement Complexity Levels, Risk Assessment and Approval Authorities, the notes to contracting limits were reviewed and moved to the Contracting Limits and Related Notes (accessible only on the Government of Canada network) page on GCpedia.
The obsolete content of Annex 6.4.4 has been deleted but can be viewed for reference only in the Supply Manual Archive (accessible only on the Government of Canada network), Version 2014-3.
Annex 6.4.5: Table of equivalent positions
Effective date: 2020-05-04
Purpose
Unless otherwise specified, all positions in this table are in the Acquisitions Branch, located in either headquarters or at client locations, or in regional operations with responsibility for common service acquisition functions.
Remarks:
- Unless restricted by legislation, regulation, or policy, the Deputy Minister and the Associate Deputy Minister have the same authorities as the Minister.
- For any position titles not listed in this Table of Equivalent Positions, the equivalent positions as recognized by the Chief Financial Officer will apply.
| Level 1 – Senior Departmental Manager |
|
|---|---|
| Level 2 – Director General |
|
| Level 3 – Senior Director |
|
| Level 4 – Director |
|
| Level 5 – Manager |
|
| Level 6 – Supervisor |
|
| Level 7 – Officer |
|
6.4.6: Contract amendment approval instructions for Complexity Levels 1, 2 and 3
Effective date: 2024-04-19
- With the exception of administrative amendments and pre-approved amendments, 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 authority level. The appropriate approval authority level for a proposed contract amendment (not previously approved) within Complexity Levels 1 through 3 inclusive is determined by completing a Procurement Risk Assessment for Amendments (RAA).
- When answering the "Value" question within the RAA, consideration must be given not only to the value of the proposed amendment but also to the cumulative value (or aggregate) of all positive amendments (previous and proposed). Therefore, the dollar value to be used in that question must be the aggregate amendment value (previous and proposed) excluding pre-approved amendments that were identified and approved in the original approval documents.
- Exceptional authorities: Unless otherwise stated within the notes to contracting limits including exceptional authorities found on the Delegation of Authorities (accessible only on the Government of Canada network) page, the exceptional authorities include both contract entry and amendment authority. When answering the "Value" question within the RAA, consideration must be given not only to the value of the proposed amendment but also to the cumulative value (or aggregate) of all amendments, both positive and negative (previous and proposed) and the original contract value. Therefore, the dollar value to be used in that question must be a combination of the original contract value and the aggregate amendment value (previous and proposed).
- Examples showing when a RAA is required for a Complexity Level 1 through 3 contract awarded on an electronically competed basis can be found on the Determining the Amendment Approval Authority (accessible only on the Government of Canada network) page on GCpedia.
6.4.7: Complex contract amendment approval instructions
Effective date: 2014-09-25
With the promulgation of PN105R1 - Procurement Complexity Levels, Risk Assessment and Approval Authorities, the content of this annex was reviewed and incorporated in Annex 6.4.6: Contract amendment approval instructions for Complexity Levels 1, 2 and 3.
For reference purposes, Annex 6.4.7 is available in the Supply Manual Archive (accessible only on the Government of Canada network), Version 2014-3.
Annex 6.4.8: Contract amendment approval instructions for all complexities
Effective date: 2024-04-19
- Reductions in Contract Value
- Situation: The client reduces the quantity required and the supplier/contractor agrees to the reduced quantity with no increase in the unit price.
Amendment Type: Administrative
Risk Assessment for Amendments (RAA) required: No
Approval Level: The contracting authority, designated as such in the contract, may approve the amendment that reduces the value of the contract (when the amendment is administrative in nature). - Situation: The client reduces the quantity required but the supplier/contractor wants to increase the price because of the reduced quantity. Renegotiation is necessary.
Amendment Type: Reduction in Contract Value Amendment involving Additional Risk to Canada
RAA required: Yes
Approval Level: To be determined by completing the RAA. The approval level for the contract amendment is that required for the revised unit price multiplied by the new quantity. Aggregate amendment approval authorities apply. - Situation: The client wishes to disencumber funds allocated to a repair and overhaul contract in the last quarter of the fiscal year, because no more work arising will be forthcoming during that period.
Amendment Type: Administrative
RAA required: no
Approval Level: The contracting authority, designated as such in the contract, may approve an amendment to reduce the value of the contract (considered an administrative amendment). - Situation: The client requires a work package to be removed from a research and development contract. There is no clear relationship between the reduced cost and the reduced work package.
Amendment Type: Reduction in Contract Value Amendment involving Additional Risk to Canada
RAA required: Yes
Approval Level: To be determined by completing the RAA. The amendment will be approved at a level equal to the value of the proposed cost reduction. Aggregate amendment approval authorities apply. Nil value amendment is not appropriate as there is no link between the value of the work package and the reduction.
- Situation: The client reduces the quantity required and the supplier/contractor agrees to the reduced quantity with no increase in the unit price.
- Substitute Item (or work package)
If a client requests the contracting authority to amend a contract by deleting an item (or work package) and substituting a different item (or work package), the value of the substitute item (or work package) will determine the contract amendment approval level. A Risk Assessment for Amendments must be performed to determine the appropriate approval authority required to add the substitute item (or work package). - Advance Approval for Amount Set Aside
- If the original authority to enter into a contract also included advance approval for an amount to be set aside for unscheduled work, design changes or work arising, then any amount set aside used must be approved by the appropriate non-competitive contract entry approval authority, not to exceed the Director level. The Risk Assessment for Amendments will determine the appropriate approval authority. When completing the "Value" question of the RAA, contracting officers are to select "set aside amount".
- If an amendment to use the remainder of the amount set aside for a specific purpose exceeds the amount set aside, the approval authority for the excess amount will revert back to the appropriate aggregate amendment approval authority in accordance with Annex 6.4.2: Contracting limits including exceptional authorities. Aggregate amendment values of set asides, previously approved, are separate from the aggregate amendment values of either options or normal amendments. If required, set-asides can be exercised to the maximum value in one amendment.
- If a condition of the original approval requires other levels of approval for encumbering amounts set aside, the levels established in the original contract approval will take precedence.
- The amount of the set aside should be based on sound front-end planning and preparation. The better the planning and preparation the better the ability to predict additional quantities or unforeseen work arising, and the more accurate the assigned dollars values. A procurement plan that is thoroughly justified as to the purpose of each planned expenditure, is more likely to be approved.
- Some examples of the vehicles used to utilize the amount of the set-aside are Contract amendment, work authorization form, form DND 626 Requisition on a Contract, or a Pre-Approved Amount for Anticipated Amendments (PAAA).
- Advance Approval for Options
- Once approval has been obtained to exercise an option, the contract amendment to exercise the option requires only the signature of an incumbent, under any level, who holds a valid delegation of approval authority for contract entry for the same categories for which the incumbent has delegation of authority. For example, if an incumbent holds delegation of authority for contract entry for goods and military repair and overhaul, then that incumbent would have signing authority for goods and military repair and overhaul. Aggregate values of options, previously approved, are separate from the aggregate amendment values of either set-asides or normal amendments. If required, options can be exercised to the maximum value in one amendment.
- Funds and approval received for an option can only be used for the specific purpose stated in the approval document. For example, if approval was obtained for a 1 year services contract valued at $200,000, with an option year also valued at $200,000, the contracting officer cannot use the approval and funding related to the option year to cover an increase in the services required during the first year.
- Contract Code for Pre-approved Amendments (in SELECT)
- Document Type number 22, Contract Code for Pre-approved Amendments is available in SELECT, and is used to identify all pre-approved amendments.
- These include, but are not limited to:
- 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; and,
- 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.
- Amendments that do not fit within the description of the original approval or go beyond the scope or value of the approval will be coded as "Normal Amendments" and must be approved at the appropriate level. The appropriate approval authority level for procurements within Complexity Levels 1 through 3 inclusive is determined by completing a Risk Assessment for Amendments (RAA). For procurements within Complexity Levels 4 and 5, the approval of the Assistant Deputy Minister - Procurement Branch or Defence and Marine Procurement Branch is required.
- Rates (or prices-to-be-negotiated)/Interim Rates (or prices)
If the basis of payment in a contract includes interim rates (or prices) and it is proposed to amend the contract to provide for firm rates (or prices) in lieu, then the amendment approval authority level will be as follows (unless otherwise instructed by the contract approval authority):- Contracting authority, only if the firm rates (or prices) are equal to or less than the interim rates (or prices); or
- For Level 1, 2 and 3 procurements, a Procurement Risk Assessment for Amendments is required to determine the appropriate approval authority; or
- Director General, if the contract was approved by the Assistant Deputy Minister, the Minister or TB.
- Combining Several Types of Contract Changes in One Amendment
When a contract amendment is raised to incorporate several types of changes enumerated above (i.e., firming up price-to-be-negotiated items, using a portion of an amount set aside, addition of items/quantities, etc.), the highest approval level must apply for any one type of these changes or combinations being incorporated into the contract by that amendment. - Amendments to Contracts with Former Public Servants
Treasury Board (TB) must approve all amendments to service contracts with former public servants in receipt of a pension pursuant to the Public Service Superannuation Act when these amendments exceed the limits specified in section 1.1.1 of Annex 6.4.1: Approval authorities and additional signing authorities in support of clients' programs only - other than for Canadian Commercial Corporation. - Interpretation of Aggregate Amendment Value
- Aggregate amendment value means the sum total of the amendments to a contract, including positive and negative amendments. It applies only to amendments requiring TB approval. For internal purposes and to ensure adequate control measures are in place, the aggregate amount for amendments not pre-approved will be calculated using only positive amendments.
- Nil value amendments where no further risk or liability accrued to Canada are administrative in nature and can be approved and signed by the Contracting Authority. For nil value amendments where further risk or liability will be Canada's responsibility, the completion of a Risk Assessment for Amendments is required to determine the appropriate approval authority.
- Extending the period of a contract with a specific end date (i.e. a contract, task authorization contract, standing offer or supply arrangement, etc.) cannot be treated as administrative in nature. Adding additional time to the contract represents additional liability for Canada regardless of whether or not additional funding is required. For example, if a contract has been awarded for a two (2) year period ending March 31st, in the amount of $10M and there is $4M left over on April 1st, that $4M cannot be used for an extension of the contract without obtaining the appropriate approval, even though the original approval to contract was for $10M.
- Extension of the time element of contracts or contractual arrangements approved by Treasury Board
- As per TBS Contracting Policy Notice 2000-3, the time element of TB approved contracts/contractual arrangements may be extended without further Treasury Board (TB) approval only when all of the following conditions are met:
- The extension’s maximum duration is the lesser of two years or 50 percent of the duration of the contract/contractual arrangement (including pre-approved amendments);
- There is no financial implication to an end date amendment or the financial impact is within the contracting limits specified in the TB Directive on the Management of Procurement;
- The end date included in the original TB submission was not considered a critical part of the TB approval; and
- The contract/contractual arrangement period in the original TB submission was indicated to be approximate or non-specific.
- ‘No financial implication’ does not mean that there can be no spending in the extension period. It means the spending during the time extension must remain within scope and value of the TB approved contract/contractual arrangement.
- Considering that the end date is contingent on various factors, delivery/time frame in the TB submission is provided as an estimate using project planning tools, assumptions and a best case scenario. For instance, the precise time frame may vary based on factors such as the actual start date, uncontrollable delays that impacted the delivery/time frame, nature and complexity of the work itself or the work environment. Therefore, this date may not have been a critical piece of the requirement or TB submission and will need to be determined on a case by case basis and explained.
- Contracting officers must carefully assess the circumstances and reasons that warrant extending the time element of a TB approved contract/contractual arrangement. This assessment must be documented on file and should address the following:
- Is there supporting justification for the decision to proceed with the contract/contractual arrangement extension?
- How does the extension meet all of the above identified TB conditions for amending the contract/contractual arrangement without returning to TB for approval?
- The scope of the contract/contractual arrangement:
- Are contractual expenditures still within the scope of the TB approval? Are the projected expenditures in the proposed extension reasonable or supported by historical spend on the contract/contractual arrangement?
- Are the deliverables different?
- Are the terms and conditions being compromised?
- Is the contract/contractual arrangement substantively changing from how it was initially presented, and would TB Ministers have an interest?
- Was the delivery/time frame a key element of the TB approval?
- In the case of services contracts/contractual arrangements, what were industry expectations?
- When was the period of service expected to be up for renewal and for tender?
- Are there new suppliers in the market that would question the fairness of the extension?
- If the contractor is responsible for the work delay but the extension can be justified (such as insufficient time to recompete or other exceptional circumstances), what Vendor Performance Corrective Measures have been taken against the contractor to mitigate the procurement risk for the remainder of the contract/contractual arrangement?
- Adding additional time to a contract/contractual arrangement (outside of pre-approved amendments for pre-approved option years) represents additional liability for Canada and therefore, must not be treated as an administrative amendment. Contracting officers must obtain the appropriate internal approval for the contract/contractual arrangement extension amendment. The approval authority for the time extension amendment will depend on the complexity and risk levels as follows:
- For Complexity Levels 1, 2 and 3 - the Risk Assessment for Amendments (RAA) must be used to determine the approval authority.
- For Complexity Levels 4 and 5, the approval authority is the Acquisitions Program(AP) Assistant Deputy Minister (ADM) - Defence and Marine Procurement Branch or Procurement Branch.
- As per TBS Contracting Policy Notice 2000-3, the time element of TB approved contracts/contractual arrangements may be extended without further Treasury Board (TB) approval only when all of the following conditions are met: