Annexes for Chapter 6 - Approvals and authorities

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

1. Support price and changes in terms or method of payment.
2. 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.
3. 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 (PDF, 408 KB) (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:

1. 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;
2. 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.

Annex 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

1. Internal approval and signing authorities are in accordance with Annex 6.4.2: Contracting limits including exceptional authorities.
2. Treasury Board (TB) approval is required for submissions exceeding the authority found in Annex 6.4.2.
3. 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

1. 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).
2. 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).
3. 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.
4. 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

1. 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.)
2. 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.
3. 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:
   1. details of the royalties;
   2. a forecast of anticipated future purchases beyond the requirement in the present submission;
   3. the comments of Legal Services.

1.1.4 National Security Exception

1. 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.
2. Following NSE approval by the ADM/AB, the normal document approval process and authority apply.
3. For complete details of the NSE process, see 3.105 National Security Exceptions.

1.1.5 Ineligibility and Suspension Policy Clauses

1. 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.
2. 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 (Claim for Progress Payment) (PDF, 215 KB) (accessible only on the Government of Canada network) is a prerequisite for client certification pursuant to section 34 of the Financial Administration Act is as follows:

1. 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;
2. For Senior Purchasing Assistants:
   1. 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;
   2. for contracts within approval authority: certification for all claims.

2.2 Settlement and release documents

1. The authority to sign release and settlement documents (form PWGSC-TPSGC 9223-2 (Settlement and Release) (PDF, 432 KB) (accessible only on the Government of Canada network)) for terminations on behalf of the Minister is delegated as follows:
   1. Arising from termination for convenience:
      1. Director General, Procurement Support Services Sector, Acquisitions Program (PSSS/AP)
      2. Director, Centralized Services Directorate, Acquisitions Program (CSD/AP)
   2. Other than for termination of convenience, contracting officers must consult with Finance Branch to determine the appropriate approval authority level.
2. 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: 2024-11-08

Instructions

1. 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.
2. 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.
3. 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.
4. 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.
5. 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.
6. Refer to Annex 6.4.5 Table of equivalent positions for position titles under each level.
7. 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.
8. For information on contract entry approval authorities for contracts requiring ratification, refer to section 6.30.5 Ratifications within department authorities.
9. 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.
10. 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.
11. 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.
12. Standing Offers and Supply Arrangements
    1. 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. 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. However, the issuance and renewal of all non-competitive Standing Offers for professional services requires approval at the Procurement Branch Assistant Deputy Minister (ADM) level.
    2. 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.
    3. 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.

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:

1. Unless restricted by legislation, regulation, or policy, the Deputy Minister and the Associate Deputy Minister have the same authorities as the Minister.
2. For any position titles not listed in this Table of Equivalent Positions, the equivalent positions as recognized by the Chief Financial Officer will apply.

6.4.6: Contract amendment approval instructions for Complexity Levels 1, 2 and 3

Effective date: 2024-04-19

1. 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).
2. 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.
3. 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).
4. 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

1. Reductions in Contract Value
   1. 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).
   2. 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.
   3. 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).
   4. 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.
2. 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).
3. Advance Approval for Amount Set Aside
   1. 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".
   2. 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.
   3. 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.
   4. 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.
   5. 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).
4. Advance Approval for Options
   1. 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.
   2. 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.
5. Contract Code for Pre-approved Amendments (in SELECT)
   1. Document Type number 22, Contract Code for Pre-approved Amendments is available in SELECT, and is used to identify all pre-approved amendments.
   2. 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; and,
      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.
   3. 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. 
6. 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):
   1. Contracting authority, only if the firm rates (or prices) are equal to or less than the interim rates (or prices); or
   2. For Level 1, 2 and 3 procurements, a Procurement Risk Assessment for Amendments is required to determine the appropriate approval authority; or
   3. Director General, if the contract was approved by the Assistant Deputy Minister, the Minister or TB.
7. 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.
8. 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.
9. Interpretation of Aggregate Amendment Value
   1. 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.
   2. 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.
   3. 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.
10. Extension of the time element of contracts or contractual arrangements approved by Treasury Board
    1. 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:
       1. 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);
       2. 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;
       3. The end date included in the original TB submission was not considered a critical part of the TB approval; and
       4. The contract/contractual arrangement period in the original TB submission was indicated to be approximate or non-specific.
    2. ‘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.
    3. 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.
    4. 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:
       1. Is there supporting justification for the decision to proceed with the contract/contractual arrangement extension?
       2. How does the extension meet all of the above identified TB conditions for amending the contract/contractual arrangement without returning to TB for approval?
       3. The scope of the contract/contractual arrangement:
          1. 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?
          2. Are the deliverables different?
          3. Are the terms and conditions being compromised?
          4. Is the contract/contractual arrangement substantively changing from how it was initially presented, and would TB Ministers have an interest?
          5. Was the delivery/time frame a key element of the TB approval?
          6. In the case of services contracts/contractual arrangements, what were industry expectations?
          7. When was the period of service expected to be up for renewal and for tender?
          8. Are there new suppliers in the market that would question the fairness of the extension?
    5. 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?
    6. 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:
       1. For Complexity Levels 1, 2 and 3 - the Risk Assessment for Amendments (RAA) must be used to determine the approval authority.
       2. 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.