Policy Update: Management of Procurement, Directive on the

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Title: Management of Procurement, Directive on the
Link: http://www.tbs-sct.canada.ca/pol/doc-eng.aspx?id=32692
Category: Directive
GUID: 32692_2025-12-17

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Current Version (Markdown)

Directive on the Management of Procurement

Note to reader

The Directive on the Management of Procurement, which took effect on May 13, 2021, replaced the following instruments:

• Contracting Policy
• Policy on Decision Making in Limiting Contractor Liability in Crown Procurement Contracts

The directive has subsequently been amended:

• Effective April 1, 2022, to include a new Appendix E: Mandatory Procedures for Contracts Awarded to Indigenous Businesses that describes procedures to address the Government of Canada’s requirement that a minimum of 5% of the total value of contracts is awarded to Indigenous businesses annually;
• Effective April 1, 2023, to integrate human rights, the environment, social and corporate governance, supply chain transparency principles, and Public Services and Procurement Canada’s Code of Conduct for Procurement into all government procurements;
• Effective June 30, 2023, to add requirements for risk-based systems of internal control, information management and proactive publication of contracts, and to reflect that the Guidelines on the Proactive Disclosure of Contracts have been updated and renamed Guide to the Proactive Publication of Contracts;
• Effective May 29, 2024, to include new requirements related to values and ethics, documentation and reporting, as set out in:
  • Subsections 4.1.7, 4.2.2, 4.2.3.4, 4.2.3.5, 4.3.2.2, 4.10.1.10 and 5.6.9
  • Appendix D.6: Ineligibility and Suspension Policy (Responsible department: Public Services and Procurement Canada); and
  • Appendix F: Mandatory Procedures for Business Owners When Procuring Professional Services.
• Effective December 15, 2025, to increase most contracting limits in "Appendix A: Contracting Approvals" to reflect inflation;
• Effective December 16, 2025, to reflect:
  • The Buy Canadian Procurement Policy Framework, under the responsibility of Public Services and Procurement Canada.

1. Effective date

• 1.1This directive takes effect on May 13, 2021.
• 1.2This directive replaces the following Treasury Board policy instruments:
  • Contracting Policy (April 11, 2019)
  • Policy on Decision Making in Limiting Contractor Liability in Crown Procurement Contracts (September 1, 2003)
• 1.3The requirements in Appendix A: Contracting Approvals of this directive will come into full effect immediately on May 13, 2021.
• 1.4With the exception of Appendix A: Contracting Approvals, departments have 12 months to transition to this directive.
• 1.5Subsection 4.5 is not applicable to procurements in solicitation or prior to contract award as of the date of approval of this directive.
• 1.6Existing contracts or contractual arrangements in place prior to the date of approval of this directive, including option years established at the time of award, will be exempt from transitioning to this directive. For contractual arrangements with no explicit end date, consider transitioning to this directive upon regular review or renewal of the arrangements.

2. Authorities

• 2.1This directive is issued pursuant to the same authorities indicated in section 2 of the Policy on the Planning and Management of Investments.

3. Objectives and expected results

• 3.1The objective of this directive is that procurement of goods, services and construction obtains the necessary assets and services that support the delivery of programs and services to Canadians, while ensuring best value to the Crown.
• 3.2The expected results of this directive are as follows:
  • 3.2.1Procurements are managed in a manner that enables operational outcomes and demonstrates sound stewardship and best value consistent with the Government of Canada’s socio-economic and environmental objectives;
  • 3.2.2Procurement decisions are based on risk management practices, performance information and an assessment of full life-cycle costs whenever possible;
  • 3.2.3Effective governance and oversight mechanisms are in place to support the management of procurement;
  • 3.2.4Opportunities for collaboration are considered in procurement decisions;
  • 3.2.5Workforce capacity for the management of procurement is developed, maintained and commensurate with organizational need; and
  • 3.2.6Actions related to the management of procurement are fair, open and transparent, and meet public expectations in matters of prudence and probity.

4. Requirements

Senior designated officials for the management of procurement

• 4.1Senior designated officials for the management of procurement are responsible for the following:
  • 4.1.1Establishing, implementing, and maintaining a departmental procurement management framework, consisting of processes, systems and controls;
  • 4.1.2Ensuring that the departmental procurement management framework:
    • 4.1.2.1Includes oversight, planning and reporting mechanisms including mechanisms pertaining to contracts awarded to Indigenous businesses as stated in Appendix E: Mandatory Procedures for Contracts Awarded to Indigenous Businesses;
    • 4.1.2.2Includes clearly defined roles, responsibilities and accountabilities for the various governance committees involved;
    • 4.1.2.3Incorporates performance results, lessons learned and best practices to inform procurement decision-making;
    • 4.1.2.4Maintains the integrity of the procurement process;
    • 4.1.2.5Contributes the procurement perspective to departmental planning functions and ensures that procurement strategies in the investment plan are in accordance with the Policy on the Planning and Management of Investments, Appendix A: Mandatory Procedures for Investment Plans;
    • 4.1.2.6Ensures that procurement-planning reflects a strategic approach to departmental procurements, including contractual arrangements;
    • 4.1.2.7Considers pricing strategies that enable coordinated asset management decisions;
    • 4.1.2.8Considers input from key stakeholders, including but not limited to real property, materiel, project management, information technology, finance, security, legal services and human resources;
    • 4.1.2.9Is commensurate to the value, risk and complexity of the procurement (or procurements) undertaken;
    • 4.1.2.10Promotes collaborative, innovative, iterative and outcomes-based procurement approaches where appropriate;
    • 4.1.2.11Facilitates compliance with all legal obligations such as those arising from modern treaties (such as Comprehensive Land Claim Agreements, refer to Appendix D: Requirements Included in Other Policies, Programs and Agreements That Impact Procurements, section D.1), trade agreements (refer to Appendix D: Requirements Included in Other Policies, Programs and Agreements That Impact Procurements, section D.2), official languages, accessibility, financial management, privacy, environmental sustainability and security legislation;
    • 4.1.2.12Gives precedence to competition in accordance with the Government Contracts Regulations and trade agreements;
    • 4.1.2.13Facilitates the collection and publication on the Open Government portal of accurate, timely and complete data for corporate reporting on procurement as described in Appendix C: Mandatory Procedures for the Proactive Publication of Contract Information and Reporting;
    • 4.1.2.14Integrates respect for human rights, the environment, and social and responsible corporate behaviour into procurements by including measures to identify, mitigate and disclose risk that human trafficking, forced or child labour, or any other unethical business practice is occurring in departmental supply chains;
    • 4.1.2.15Includes a risk-based system of internal controls that are maintained, monitored, and reviewed to provide reasonable assurance that procurement transactions are carried out in accordance with the framework, and applicable laws, regulations, and policies; and
    • 4.1.2.16Includes risk-based internal controls to ensure the accuracy, completeness and timely proactive publishing of information on contracts over $10,000.
  • 4.1.3Facilitating collaboration between contracting authorities and business owners throughout the investment-planning process and procurement life cycle to enable informed procurement decisions;
  • 4.1.4Supporting improvement of government-wide procurement tools and practices by collaborating with Public Services and Procurement Canada, Shared Services Canada and the Treasury Board of Canada Secretariat;
  • 4.1.5Providing advice to the deputy head on:
    • 4.1.5.1The nature, structure and required resourcing for implementation of the department’s procurement management function;
    • 4.1.5.2Significant gaps in performance or issues of non-compliance with the requirements of this directive; and
    • 4.1.5.3Departmental procurement plans;
  • 4.1.6Identifying and addressing the department’s needs with respect to the necessary competencies, capacity and professional development in procurement management.
  • 4.1.7When the department has awarded per diem–based professional service contracts for business services, informatic services, management consulting services, or temporary help services in the previous fiscal year totaling in excess of $5 million, provide a report to the deputy head twice a year that identifies:
    • 4.1.7.1The total current number of per diem–based professional service resources; and
    • 4.1.7.2The current number of per diem–based professional service resources that have been on contract with the department for a period greater than two years.

Business owners

• 4.2Business owners are responsible for the following:
  • 4.2.1Clearly defining, to contracting authorities, the intended outcomes of the procurement, including the operational requirements, end user needs, expected benefits, alignment with the government’s strategic direction and total costs over the life cycle whenever possible;
  • 4.2.2Adhering to the Values and Ethics Code for the Public Sector and the Directive on Conflict of Interest at all times during the procurement process, including but not limited to when engaging with suppliers, evaluating bids, awarding and managing contracts;
  • 4.2.3In collaboration with contracting authorities, supporting procurement-planning and decision-making by:
    • 4.2.3.1Conducting market analysis to better understand industry capacity and availability; and
    • 4.2.3.2Establishing and maintaining valid cost estimates;
    • 4.2.3.3Identifying, mitigating and disclosing occurrences or risk that may have a negative impact on human rights, and environmental and social considerations;
    • 4.2.3.4Developing clear statements of work and technical evaluation criteria; and
    • 4.2.3.5Adhering to Appendix F: Mandatory Procedures for Business Owners When Procuring Professional Services if considering procuring professional services;
  • 4.2.4Adhering to the required governance processes for projects, assets and procurement decisions, commensurate to the risk and complexity of the procurement and in accordance with the departmental procurement management framework;
  • 4.2.5Engaging with contracting authorities at the outset of planning investments, in order to integrate procurement considerations into the planning of programs, services and projects;
  • 4.2.6Building in sufficient lead time to ensure that procurement activities and program operational requirements are met;
  • 4.2.7Ensuring that the intended outcomes of the procurement are aligned with the departmental mandate and government priorities, available funds, and key socio-economic and environmental benefits:
    • 4.2.7.1Where appropriate, including accessibility considerations when specifying requirements for goods, services and construction, and ensuring that deliverables incorporate accessibility features;
      • 4.2.7.1.1Ensuring clear justification is documented if it is determined that accessibility considerations are not consistent with modern treaties or trade agreements, or if it is not appropriate to include them as part of commodity specifications, or if it is not possible to obtain goods, services or construction that comply;
    • 4.2.7.2Where appropriate, including environmental considerations when specifying requirements for goods, services and construction and leveraging procurement practices in accordance with the Policy on Green Procurement and documenting files accordingly;
    • 4.2.7.3Where appropriate, considering opportunities to support the participation of Indigenous peoples in matters related to procurement and documenting files accordingly;
    • 4.2.7.4Where appropriate, including human rights considerations throughout the procurement process, to prevent and reduce risks of unethical business practices in markets where risks are the highest, and to ensure that suppliers that do business with the government operate in a socially responsible manner; and
    • 4.2.7.5Where required and as appropriate, considering opportunities to support Canadian economic interests, and documenting this accordingly.
  • 4.2.8In collaboration with contracting authorities, monitoring the delivery of the procurement and supporting any related reporting requirements;
  • 4.2.9Consulting with Treasury Board of Canada Secretariat (and other impacted government departments) to determine requirements for seeking Cabinet or Treasury Board approval when:
    • 4.2.9.1Developing or leading a program or policy that uses procurement to advance a government-wide socio-economic or environmental objective;
    • 4.2.9.2Imposing any mandatory requirements that involve changes to the administration of procurement by other departments; and
    • 4.2.9.3Ensuring that these requests include:
      • 4.2.9.3.1A clear alignment of intended outcomes with government priorities and other programs or policies; and
      • 4.2.9.3.2A sound business case, including a risk assessment, expected benefits indicators, and supporting guidance and tools for government-wide implementation.

Contracting authorities

• 4.3Contracting authorities are responsible for the following:
  • 4.3.1Conducting procurements on behalf of the department or agency, and establishing contracts and contractual arrangements based on sound procurement principles, including fairness, openness and transparency to obtain best value;
  • 4.3.2Ensuring that the integrity of the procurement process is maintained throughout by:
    • 4.3.2.1Adhering to the Values and Ethics Code for the Public Sector and the Directive on Conflict of Interest; and
    • 4.3.2.2Monitoring, preventing, identifying and reporting any conflict of interest that may exist and taking appropriate mitigating action as required;
  • 4.3.3In collaboration with business owners, ensuring that pricing strategies are considered in procurement-planning and throughout the procurement life cycle;
  • 4.3.4Providing advice and recommending options to business owners on procurement strategies that meet operational requirements and have the intended results; the procurement strategies are based on risk, complexity and best value considerations, such as but not limited to:
    • 4.3.4.1Including outcomes-based, iterative approaches where appropriate;
    • 4.3.4.2Incorporating market analysis and supplier engagements;
    • 4.3.4.3Including an initial contract period with option years, off-ramps, phases, and gates to allow flexibility as appropriate;
    • 4.3.4.4Including supplier incentives, Crown payment credits, and adjustments to contracts, their duration or length, and their processes provided that compliance, safety, quality and other specified considerations within the contract are met;
    • 4.3.4.5Considering opportunities for the unbundling of requirements where applicable, and inviting bids by commodity to permit smaller and more specialized firms to bid;
    • 4.3.4.6Ensuring that all decisions related to the legitimate division of requirements into multiple smaller requirements are documented, and are not intended to avoid financial approval thresholds or policy requirements, such as contract entry limits, regulatory rules and trade agreement obligations;
    • 4.3.4.7Ensuring strategic category management, including socio-economic and environmental considerations;
    • 4.3.4.8Using pricing strategies, including the basis of payment, incentives and performance adjustments;
    • 4.3.4.9Considering input from relevant stakeholders responsible for investment management, project management, materiel management and real property management;
    • 4.3.4.10Including the life-cycle costs of the asset and all stages of the procurement;
    • 4.3.4.11Using common service providers;
    • 4.3.4.12Using Public Services and Procurement Canada’s published list of acquisition instruments, including the mandatory standing offers and supply arrangements as listed in Appendix A: Contracting Approvals, section A.6 (Standing offers and supply arrangements);
    • 4.3.4.13Considering non-mandatory Public Services Procurement Canada acquisition instruments, where practicable;
    • 4.3.4.14Applying lessons learned from previous procurements and best practices; and
    • 4.3.4.15Leveraging procurement to support Canadian economic interests.
  • 4.3.5Implementing the departmental procurement management framework established by senior designated officials while liaising horizontally across business lines to identify opportunities for efficiencies and achieve intended outcomes;
  • 4.3.6Collaborating with other government departments on joint procurements as appropriate;
  • 4.3.7In consultation with business owners, monitoring, documenting, investigating and discussing contractor performance issues as they arise over the course of the contract in order to select appropriate measures required to address documented issues; and
  • 4.3.8Ensuring that requirements included in other policies, programs and agreements are considered and met as described in Appendix D: Requirements Included in Other Policies, Programs and Agreements That Impact Procurements;
  • 4.3.9Incorporating the Code of Conduct for Procurement into procurements (refer to Annex D6: Code of Conduct for Procurement).

Industry engagement and market analysis

• 4.4When conducting industry engagement, as appropriate, contracting authorities, in collaboration with business owners, are responsible for the following:
  • 4.4.1Assessing whether an outcomes-based procurement approach is appropriate, such as in situations where:
    • 4.4.1.1There is no existing solution on the market;
    • 4.4.1.2The business requirement needs cannot be met without significant modifications to existing solutions;
    • 4.4.1.3The business requirement is complex and involves multiple stakeholders; and
    • 4.4.1.4Collaboration with suppliers in solution development may be required;
  • 4.4.2Developing industry engagement strategies that respect the principles of a fair, open and transparent procurement process;
  • 4.4.3Communicating the rules of that engagement with all stakeholders involved;
  • 4.4.4Conducting market analysis in the procurement-planning phase to better understand industry capacity and availability;
  • 4.4.5Developing performance-based evaluation criteria that are commensurate with the risk and complexity of the procurement, through the following measures, including but not limited to:
    • 4.4.5.1Requesting third-party reviews and analysis;
    • 4.4.5.2Organizing or participating in events, including bidders’ conferences, supplier or industry days and site visits; and
    • 4.4.5.3Issuing requests for information, request for expressions of interest, or advance contract award notices as required;
  • 4.4.6Ensuring that there are opportunities for suppliers to collaborate and develop solutions, including pilots and prototypes, where appropriate;
  • 4.4.7Leveraging market analysis and applying business acumen and negotiation skills to develop the terms of a contract; and
  • 4.4.8Revalidating the market analysis sufficiently in advance of negotiating the extension of non-competitive procurements to allow for the consideration of other options as appropriate.

Solicitation and bid evaluation

• 4.5Contracting authorities are responsible for the following:
  • 4.5.1Ensuring that bids are solicited for contracts, except when one of the exceptions set out in the Government Contracts Regulations applies;
  • 4.5.2Publishing on the Government of Canada–approved electronic tendering system, except when publication is not in the public interest, the following as required by applicable trade agreements:
    • 4.5.2.1All notices, solicitations, invitations to tender and bid documents, unless otherwise permitted by each of the applicable trade agreements;
    • 4.5.2.2Advance contract award notices identifying the intended supplier for at least 15 calendar days;
  • 4.5.3Simplifying solicitation documents wherever possible to support streamlined processes;
  • 4.5.4To the extent possible, taking past performance into consideration when assessing a bidder’s ability to deliver, and managing the contract accordingly;
  • 4.5.5Including requirements for former public servants to self-identify in solicitations and in the resulting contract clauses of service contract documents, and informing suppliers that this information will be proactively published; and
  • 4.5.6Collaborating with business owners to ensure that any appropriate socio-economic and environmental requirements are achievable and measurable;
  • 4.5.7Designing and conducting the bid evaluation process, financial assessment and due diligence;
  • 4.5.8Limiting the number of mandatory technical criteria to those determined to be essential requirements in order to achieve the desired outcomes and ensure that no bid is unnecessarily disqualified.

Contracting approvals

• 4.6Contracting authorities are responsible for the following:
  • 4.6.1Seeking Treasury Board approval when the estimated value for a contract or contractual arrangement, including taxes, expected amendments, and follow-on contract or contractual arrangement, exceeds the limits in Appendix A: Contracting Approvals:
    • 4.6.1.1Prior to entering into or amending a contract or contractual arrangement;
    • 4.6.1.2Prior to amending a contract or contractual arrangement if the procurement deliverables or costs change after advance approval; and
    • 4.6.1.3Prior to entering or amending a contract issued against an acquisition instrument (for example, standing offer or supply arrangement) when the estimated value exceeds the limits specified in the Treasury Board–approved acquisition instrument;
  • 4.6.2Where appropriate, based on procurement strategies or plan, seeking advance Treasury Board approval to enter into a contract or contractual arrangement;
  • 4.6.3Ensuring that emergency conditions exist and seeking the appropriate approval prior to entering into an emergency contract or contractual arrangements in accordance with the requirements specified in Appendix A: Contracting Approvals, section A.3 (Emergency contracting limits);
  • 4.6.4Seeking ministerial approval for contracts with former public servants in accordance with Appendix A: Contracting Approvals, section A.4 (Former public servants contract approvals);
  • 4.6.5Seeking Treasury Board approval to change an approval authority in accordance with Appendix A: Contracting Approvals, section A.5 (Requesting changes to contracting approval limits); and
  • 4.6.6Seeking Treasury Board approval to limit contractor liability or to indemnify in accordance with Appendix B: Mandatory Procedures for Limitation of Contractor Liability and Indemnification in Contracts.

Employer-employee relationships

• 4.7Business owners are responsible for the following:
  • 4.7.1Ensuring that an employer-employee relationship does not form during the contract; and
  • 4.7.2Keeping their contracting authorities informed of the conditions or changes to the way in which the work must be performed that may create an employer-employee relationship.
• 4.8Contracting authorities are responsible for the following:
  • 4.8.1Ensuring that business owners using contracted services are aware of the risks associated with the creation of employer-employee relationships, prior to and during the performance of the contract; and
  • 4.8.2Including terms and conditions that prevent the risk of creating employer-employee relationships in the contract.

Contract management and documentation

• 4.9Business owners are responsible for the following:
  • 4.9.1Monitoring, documenting and certifying the delivery of goods, services and construction to ensure that the delivery meets the provisions of the contract or contractual arrangement, including such criteria as quality, standards and service levels;
  • 4.9.2Monitoring and documenting costs, including confirming that the invoice is in accordance with the contract or contractual arrangement and reflects the work performed;
  • 4.9.3Informing contracting authorities of contractor performance, including both the challenges and achievement of key deliverables as they arise;
  • 4.9.4In collaboration with contracting authorities, communicating performance issues and consequences to the contractors as they arise, and providing contractors with an opportunity to address the issues as appropriate;
  • 4.9.5In collaboration with contracting authorities, reviewing complex procurements, where appropriate to:
    • 4.9.5.1Assess the appropriateness of the procurement strategy;
    • 4.9.5.2Determine whether best value and the intended outcomes are being achieved (including but not limited to socio-economic and environmental outcomes);
    • 4.9.5.3Identify opportunities for improvement or change where applicable;
    • 4.9.5.4Document, share, and apply lessons learned and best practices, where possible; and
    • 4.9.5.5Apply best practices in contract management in order to achieve the desired procurement outcomes over the acquisition life cycle;
  • 4.9.6In collaboration with contracting authorities, providing a justification for using any of the exceptions to soliciting bids in the Government Contracts Regulations.
• 4.10Contracting authorities are responsible for the following:
  • 4.10.1Ensuring that accurate and comprehensive procurement records applicable to the contract file are created and maintained to facilitate management oversight and audit, including but not limited to:
    • 4.10.1.1A description of the requirement, the rationale for the procurement strategy options and the identification of decision-makers involved;
    • 4.10.1.2A record of individual assessments, consensus evaluation, relevant decisions, approvals, communications and dates;
    • 4.10.1.3Justification for using limited tendering, in accordance with each applicable trade agreement;
    • 4.10.1.4Justification for using a non-competitive process, in accordance with the Government Contracts Regulations (including the sole source exception invoked, the rationale for its use, and any associated documentation);
    • 4.10.1.5Documentation of risk management strategies, financial assessments and ongoing price validations throughout the procurement;
    • 4.10.1.6Any records related to the limitation of contractor liability or indemnification regardless of the dollar value of the contract;
    • 4.10.1.7Documentation of any criteria, considerations or plans that leverage procurement to provide socio-economic and environmental benefits, including any additional known costs and planned outcomes;
    • 4.10.1.8Justification for contracting with a former public servant that includes price substantiation, risk mitigation and cost control measures to adjust for pension or lump-sum payments;
    • 4.10.1.9A copy of the duly executed contract or contractual arrangement;
    • 4.10.1.10The name and title of the individual assigned to the role of business owner; and
    • 4.10.1.11Documentation of the invocation of a national security exception, including the approval letter signed by the appropriate assistant deputy minister, the rationale for the invocation of the national security exception, and the justification for the selected procurement strategy.
  • 4.10.2Including a condition in complex procurements that prohibits the contractor from supplying goods to the government of Canada that is subject to economic sanctions imposed under the United Nations Act, the Special Economic Measures Act, or the Justice for Victims of Corrupt Foreign Officials Act and listed in Appendix D: Requirements Included in Other Policies, Programs and Agreements That Impact Procurements, section D.4 (International sanctions), subsection D.4.2;
  • 4.10.3Ensuring that the roles and responsibilities of stakeholders involved throughout the procurement process are well-defined and clearly communicated;
  • 4.10.4In collaboration with business owners, documenting contractor performance issues as they occur, in accordance with the escalation guidance;
  • 4.10.5Monitoring and managing the procurement risks identified in the planning stage and ensuring that updates are made to reflect evolving risks throughout the procurement process;
  • 4.10.6Seeking approval from the financial delegation holder prior to extending the duration of a contract or amending a contract where there is a financial impact throughout the procurement life cycle;
  • 4.10.7In collaboration with business owners, assessing whether to extend or re-solicit expiring long-term contracts or contractual arrangements at least two years in advance of their expiry; and
  • 4.10.8In consultation with legal services, ensuring that the contract includes appropriate cancellation or termination clauses, such as clauses that permit cancellation or termination at critical life-cycle stages for complex procurements.

Financial interests of the Crown

• 4.11Contracting authorities are responsible for the following:
  • 4.11.1Considering whether to obtain a financial security from bidders and contractors that is commensurate with the risks involved, including the risk of a contractor’s failure or inability to perform the work under a contract;
  • 4.11.2Taking into account the standard industry practices in evaluating the type of financial security;
  • 4.11.3Ensuring that any company selected to provide that financial security is licensed to provide it in the jurisdiction of the eventual contract, in accordance with the Guidance on Source Lists of Companies Licensed to Provide Surety Within Canada;
  • 4.11.4In collaboration with business owners, ensuring that any financial security held by the Crown is redeemed, where appropriate, when a contractor or a bidder defaults on their obligations;
  • 4.11.5Including options for an exit strategy at key milestones, gates or phases, and monitoring that payment milestones are not missed to avoid additional costs to the Crown; and
  • 4.11.6Where there is knowledge of an insolvency and impending or actual bankruptcy of a contractor or bidder, ensuring that any proposed action by a business owner will not prejudice the Crown’s legal position, particularly when the bankrupt contractor resides outside Canada, and that any action taken be in accordance with the bankruptcy laws of the respective foreign country.

Limitation of contractor liability and indemnification

• 4.12Business owners are responsible for the following:
  • 4.12.1Ensuring that a risk assessment is completed and consulting with key departmental stakeholders including legal services as appropriate prior to initiating a request to limit contractor liability and indemnification;
  • 4.12.2Assuming responsibility for procurement litigation costs, including in situations where the procurement is carried out on their behalf by a contracting authority and where responsibility for such costs has not been otherwise allocated.
• 4.13Contracting authorities are responsible for the following:
  • 4.13.1Ensuring that the contract allows for each party to accept responsibility for risks under their control that they can manage or mitigate in accordance with authorities set out in Appendix B: Mandatory Procedures for Limitation of Contractor Liability and Indemnification in Contracts;
  • 4.13.2Advising business owners on the recommended strategy for limiting contractor liability, where applicable, in accordance with Appendix B: Mandatory Procedures for Limitation of Contractor Liability and Indemnification in Contracts; and
  • 4.13.3Communicating the commodity groupings that they create in accordance with Appendix B: Mandatory Procedures for Limitation of Contractor Liability and Indemnification in Contracts, subsection B.1.2.1.2, and their associated financial caps, risk assessment and clauses to Public Services and Procurement Canada for publication and dissemination.

Official languages

• 4.14In accordance with the Official Languages Act and the Official Languages (Communications with and Services to the Public) Regulations, contracting authorities are responsible for the following:
  • 4.14.1Publishing all information and documentation related to a solicitation or a contract in both official languages; and
  • 4.14.2Communicating with suppliers and contractors and providing them with access to information related to procurement in both official languages.

Data management, reporting and disclosure

• 4.15Contracting authorities are responsible for the following:
  • 4.15.1Collecting and publishing procurement data in accordance with the departmental procurement management framework; and
  • 4.15.2Ensuring that contracts comply with all applicable government-wide reporting requirements set out in legislation, policy, trade agreements, or other obligations in accordance with Appendix C: Mandatory Procedures for the Disclosure of Contracts and Reporting; this includes:
    • 4.15.2.1Ensuring that the information and data, including lessons learned from other procurements, are available to all key stakeholders and enable senior designated officials to make informed procurement recommendations and decisions.

Debriefings and disputes resolution

• 4.16Contracting authorities are responsible for the following:
  • 4.16.1Ensuring that procurement documents outline dispute resolution procedures for bids and contracts;
  • 4.16.2Providing bidders with information on available alternative processes for dispute resolution, including but not limited to negotiation, mediation and arbitration, prior to awarding the contract;
  • 4.16.3Ensuring that bidders who request a debriefing receive one in a timely manner after a contract has been awarded; and
  • 4.16.4Dealing with bidder and contractor disputes fairly and promptly.

Disclosure of wrongdoing

• 4.17Business owners, in collaboration with contracting authorities are responsible for the following:
  • 4.17.1Protecting government spending from fraud, corruption, unethical business practices and collusive behaviour;
  • 4.17.2Escalating and sharing information on potential wrongdoing regarding procurements and contractual arrangements; and
  • 4.17.3Making every reasonable effort to ensure that no direct benefits accrue to anyone who has an interest in the procurement or in the awarding of a contract to a successful bidder;
  • 4.17.4Requiring that suppliers and subcontracted suppliers of goods and services apply ethical and sustainability standards across their supply chains and adhere to the Code of Conduct for Procurement (refer to Annex D6: Code of Conduct for Procurement).

5. Roles of other government organizations

• 5.1This section identifies the roles of other key government organizations in relation to this directive. In and of itself, this section does not confer any authority.
• 5.2Department of Justice Canada is responsible for the following:
  • 5.2.1Procuring the services of arbitrators, mediators, experts, court reporters, stenographers, interpreters, translators, and other professionals where ordered by the court, mandated by court rules, or where agreement with adversarial parties is required in matters that may result in the commencement of legal proceedings or where legal proceedings have already commenced involving the Attorney General of Canada; and
  • 5.2.2Where the Government Contracts Regulations apply, contracts for legal services may be entered into only by or under the authority of the Minister of Justice; this requirement does not apply to contracting authorities included in the schedule to the Government Contracts Regulations.
• 5.3The Canada Revenue Agency (CRA) is responsible for the following:
  • 5.3.1Administering Canadian income tax and commodity tax (for example the Goods and Services Tax (GST) and Harmonized Sales Tax (HST)) legislation and regulations, and the related CRA policies and procedures, including with respect to:
    • 5.3.1.1Required withholding from amounts paid to non-residents providing services in Canada, other than amounts paid in respect of an office of employment;
    • 5.3.1.2Reporting payments for services provided in Canada;
    • 5.3.1.3Determining if an employment relationship exists for income tax purposes; and
    • 5.3.1.4The application of GST or HST (except with respect to importations and in Quebec).
• 5.4The Office of the Procurement Ombudsman is responsible for the following:
  • 5.4.1Reviewing the procurement practices of organizations to assess their fairness, openness and transparency, and making recommendations for improvements;
  • 5.4.2Reviewing complaints from suppliers about the awarding of contracts that are valued below the monetary thresholds set out in applicable trade agreements; and
  • 5.4.3Ensuring that an alternative dispute resolution process is provided, at the request of each party to the contract, for disputes related to the interpretation or application of a contract’s terms and conditions.
• 5.5The Canadian International Trade Tribunal is responsible for the following:
  • 5.5.1Conducting enquiries into complaints by potential suppliers regarding procurement processes for covered goods and services that are valued above the monetary thresholds set out in the applicable trade agreements;
  • 5.5.2Determining the merits of complaints, including whether procurement processes comply with the requirements of the trade agreements, and awarding a complainant reasonable costs incurred in relation to a complaint where appropriate; and
  • 5.5.3Recommending remedies to complaints, which may include the re-solicitation of the designated contract and the payment of damages.
• 5.6Public Services and Procurement Canada is a common service provider and is responsible for the following:
  • 5.6.1Planning and organizing the provision of materiel and related services to departments and the acquisition of goods, services and construction for departments in accordance with section 6 of the Department of Public Works and Government Services Act;
  • 5.6.2Investigating and developing services for increasing the efficiency and economy of the federal public administration and for enhancing integrity and efficiency in the contracting process in accordance with section 7 of the Department of Public Works and Government Services Act;
  • 5.6.3Procuring goods for the use of any department, except to the extent that the Minister of Public Services and Procurement Canada delegates the powers to another Minister, as stated in section 9 of the Department of Public Works and Government Services Act;
  • 5.6.4Acquiring defence supplies and constructing defence projects as defined in the Defence Production Act with the exception of defence projects constructed by employees of Her Majesty, or purchasing defence supplies or constructing defence projects that the Minister of Public Services and Procurement Canada requests that another Minister undertake;
  • 5.6.5Developing operational tools to support procurement undertaken on behalf of other government departments, such as guidance, templates, standard contract clauses, and an electronic tendering system (where appropriate, these tools will be made available to the procurement community);
  • 5.6.6Providing advice on:
    • 5.6.6.1Methods and support approaches for early engagement with industry;
    • 5.6.6.2Procurement strategies and industry barrier reduction;
  • 5.6.7Administering the Directive on Government Contracts, Including Real Property Leases, in the Nunavut Settlement Area, in collaboration with the Treasury Board of Canada Secretariat and Indigenous Services Canada; and
  • 5.6.8Advising contracting authorities and business owners on federal procurement activities in Comprehensive Land Claim Settlement Areas; and
  • 5.6.9Administering the Ineligibility and Suspension Policy (see Appendix D.6: Ineligibility and Suspension Policy).
• 5.7Shared Services Canada is a common service provider and is responsible for the following:
  • 5.7.1Providing services related to email, data centres, networks and end-user information technology to federal departments and agencies; and
  • 5.7.2Planning, organizing, and acquiring related goods and services pursuant to section 7 of the Shared Services Canada Act.
• 5.8Crown-Indigenous Relations and Northern Affairs Canada is responsible for the following:
  • 5.8.1Negotiating and implementing Modern Treaties (Comprehensive Land Claims Agreements and Self-Government Agreements), most of which contain chapters that may have a potential impact on federal procurement activities;
  • 5.8.2Leading consultations with the Designated Inuit Organization about the development and maintenance of the Directive on Government Contracts, Including Real Property Leases, in the Nunavut Settlement Area and the development of any amendments; and
  • 5.8.3Advising on duty to consult.
• 5.9Employment and Social Development Canada is responsible for the following:
  • 5.9.1Leading and administering the Federal Contractors Program.
• 5.10Global Affairs Canada is responsible for the following:
  • 5.10.1In consultation with other government departments, agencies and Crown corporations, negotiating international trade agreements that include government procurement obligations; and
  • 5.10.2Procuring goods, services and construction in support of diplomatic and consular missions, and other departments and agencies operating outside Canada.
• 5.11Indigenous Services Canada is responsible for the following:
  • 5.11.1Leading and administering the Procurement Strategy for Indigenous Business;
  • 5.11.2Administering the Directive on Government Contracts, Including Real Property Leases, in the Nunavut Settlement Area, in collaboration with the Treasury Board of Canada Secretariat and Public Services and Procurement Canada;
  • 5.11.3Advising on federal procurement activities in Comprehensive Land Claims Settlement Areas; and
  • 5.11.4Monitoring and reporting procurement activities, including quarterly and annual public disclosure of federal contracting activities covered by Modern Treaties (Comprehensive Land Claims Agreements and Self-Government Agreements).
• 5.12Innovation, Science and Economic Development Canada is responsible for the following:
  • 5.12.1Leading and administering the Industrial and Technological Benefits Policy;
  • 5.12.2Negotiating the government procurement chapter of the Canadian Free Trade Agreement; and
  • 5.12.3Leading and administering the Policy on Title to Intellectual Property Arising Under Crown Procurement Contracts.
• 5.13Natural Resources Canada is responsible for the following:
  • 5.13.1Assisting federal government departments under the NRCan Greening Government Services to improve the energy efficiency of their facilities without compromising the work environment of employees.

6. Application

• 6.1This directive applies to the organizations described in section 6 of the Policy on the Planning and Management of Investments.
• 6.2This directive applies to all Government of Canada procurements as defined in the Policy on the Planning and Management of Investments.
• 6.3This directive applies to all departments listed in Schedules I, I.1 and II of the Financial Administration Act (with the exception of the Canada Revenue Agency) and to any commissions established pursuant to the Inquiries Act and designated as a department for the purposes of the Financial Administration Act.
  • 6.3.1The National Research Council is not subject to:
    • 6.3.1.1Contracting limits outlined in Appendix A: Contracting Approvals; and
    • 6.3.1.2Appendix B: Mandatory Procedures for Limitation of Contractor Liability and Indemnification in Contracts.
• 6.4Senior designated officials of the organizations specified in subsection 6.3 are solely responsible for monitoring and ensuring compliance with this directive within their respective organizations.
• 6.5The following transactions are not covered in this directive:
  • 6.5.1Revenue-producing contracts (sales and concession contracts, leases of Crown property) and the like;
  • 6.5.2Contracts related to the acquisition of land (which are covered by separate statutes and regulations);
  • 6.5.3The transfer without payment of goods, services or real property between departments, Crown corporations, provinces, municipalities and the territories;
  • 6.5.4Grants and contributions and other transfer payments;
  • 6.5.5Shared cost programs in which the Government of Canada is not the contracting authority;
  • 6.5.6Any contract not funded by Parliament in which the Government of Canada acts as an agent for other parties;
  • 6.5.7Leases and contracts for the fit-up of an office or residential accommodation pursuant to the Federal Real Property and Federal Immovables Act and its regulations; and
  • 6.5.8Interchange Canada agreements.
• 6.6Agents of Parliament:
  • 6.6.1The following organizations are considered Agents of Parliament for the purposes of the directive:
    • Office of the Auditor General of Canada
    • Office of the Chief Electoral Officer
    • Office of the Commissioner of Lobbying of Canada
    • Office of the Commissioner of Official Languages
    • Office of the Information Commissioner of Canada
    • Office of the Privacy Commissioner of Canada
    • Office of the Public Sector Integrity Commissioner of Canada
  • 6.6.2With regard to Agents of Parliament, the following do not apply:
    • 6.6.2.1Subsections 4.1.4 (supporting government-wide tools), 4.3.4.11 (use of common service providers) and 4.3.4.12 (use of Public Services and Procurement Canada acquisition instruments);
    • 6.6.2.2All requirements to obtain approval from a Minister, the Treasury Board, or the Treasury Board of Canada Secretariat:
      • Subsection 4.2.9 (leveraging procurement for socio-economic benefits),
      • Subsection 4.6 (Contracting approvals), and
      • Appendix A: Contracting Approvals in its entirety;
    • 6.6.2.3Appendix B: Mandatory Procedures for Limitation of Contractor Liability and Indemnification in Contracts in its entirety;
    • 6.6.2.4Appendix C: Mandatory Procedures for the Disclosure of Contracts and Reporting, the reporting requirements for emergency contracts and contractual arrangements;
    • 6.6.2.5The requirement to use the Department of Justice Canada for legal services contracts; and
    • 6.6.2.6The application of the Treasury Board of Canada Secretariat’s role in ensuring compliance with this directive;
  • 6.6.3In the event that any policy, procedure, process, guidance or best practice conflicts with a requirement or impedes on an Agent of Parliament’s independence or authority, the Agent of Parliament will have full discretion to make a determination of the applicability of the requirement.
• 6.7In the event of a conflict between a requirement in this directive and a requirement in any other departmental policy instrument for procurement management, with the exception of the Directive on Government Contracts, Including Real Property Leases, in the Nunavut Settlement Area, the requirement in the Directive on the Management of Procurement will apply. In the event of a conflict between a requirement in this directive and a legal obligation, including an obligation under a modern treaty, the legal obligation will apply.

7. References

The following instruments should be read in conjunction with this directive. While these instruments are considered most relevant to departments’ ability to comply with the requirements in this directive, the list should not be considered exhaustive.

• 7.1Legislation and regulations
  • Access to Information Act
  • Accessible Canada Act
  • Customs Act
  • Customs Tariff
  • Defence Production Act
  • Department of Public Works and Government Services Act
  • Employment Equity Act
  • Excise Tax Act
  • Export and Import Permits Act
  • Federal Sustainable Development Act
  • Financial Administration Act
  • Government Contracts Regulations
  • Income Tax Act
  • Income Tax Regulations
  • Justice for Victims of Corrupt Foreign Officials Act
  • Official Languages Act
  • Privacy Act
  • Shared Services Canada Act
  • Special Economic Measures Act
  • United Nations Act
• 7.2Related policy instruments
  • Accessibility Strategy for the Public Service of Canada
  • Data Standard on Classification of Procurement Items
  • Directive on Government Contracts, Including Real Property Leases, in the Nunavut Settlement Area
  • Directive on Security Management
  • Directive on Service and Digital
  • Directive on the Management of Communications
  • Directive on the Management of Materiel
  • Directive on the Management of Projects and Programmes
  • Directive on the Management of Real Property
  • Government of Canada Digital Standards
  • Government of Canada’s Integrity Regime
  • Greening Government Strategy
  • Policy on Access to Information
  • Policy on Communications and Federal Identity
  • Policy on Financial Management
  • Policy on Government Security
  • Policy on Green Procurement
  • Policy on Results
  • Policy on Service and Digital
  • Policy on the Planning and Management of Investments
  • Policy on Title to Intellectual Property Arising Under Crown Procurement Contracts
  • Policy on Transfer Payments

8. Enquiries

• 8.1For interpretation of any aspect of this directive, contact Treasury Board of Canada Secretariat Public Enquiries.
• 8.2Individuals from departments should contact their departmental procurement policy group for information about this directive.
• 8.3Individuals from the departmental procurement policy group may contact Procurement Management Enquiries for interpretations.

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Appendix A: Contracting Approvals

This appendix is mandatory as prescribed by the Treasury Board. It applies to contracting authorities as defined in the Government Contracts Regulations with the exception of contracting authorities in the Schedule to the Regulations and Commissions created pursuant to the Inquiries Act.

For the purposes of Appendix A: Contracting Approvals, the term “competitive” includes the publishing of an advance contract award notice.

The contracting limits outlined in the subsections below do not confer a legal authority to contract. Contracting authorities must ensure they have the legal authority to enter into or amend a contract or contractual arrangement, such as a valid delegation under the Department of Public Works and Government Services Act, the Shared Services Act, or as conferred or required by other legislation, as applicable.

All references to Public Services and Procurement Canada in this Appendix include the Defence Investment Agency.

A.1 Basic contracting limits

A contract or contractual arrangement may be entered into without the approval of the Treasury Board, if the amount payable, including all applicable taxes, fees and amendments, does not exceed the stated limit in Canadian dollars for the contracting authority identified in the basic limits schedules.

Contracting authority is subject to ministerial delegation and, except for delegations provided by common service providers, may not be delegated between ministers.

When an exceptional limit is lower than the basic limit for its corresponding schedule, the exceptional limit applies.

Thresholds for contracting in the Government Contracts Regulations and in trade agreements must be adhered to, where applicable.

All references to Public Services and Procurement Canada in this Appendix include the Defence Investment Agency.

Schedule 1: Construction

| Department | Competitive | Non-competitive |
| Public Services and Procurement Canada | $100,000,000 | $1,750,000 |
| All other departments | $1,000,000 | $140,000 |

Schedule 2: Goods

| Department | Competitive | Non-competitive |
| Public Services and Procurement Canada | $90,000,000 | $4,500,000 |
| Shared Services Canada | $90,000,000 | $4,500,000 |
| National Defence | $9,000,000 | $450,000 |
| All other departments | $900,000 | $120,000 |

Schedule 2A: Specialized goods

| Department | Commodity | Competitive | Notes |
| Public Services and Procurement Canada | Bulk fuel | $90,000,000 | Applies to call-ups against a standing offer established by Public Services and Procurement Canada |
| All other departments | Bulk fuel | $30,000,000 |

Schedule 3: Services

| Department | Competitive | Non-competitive |
| Public Services and Procurement Canada | $45,000,000 | $7,000,000 |
| Shared Services Canada | $45,000,000 | $7,000,000 |
| National Defence | $9,000,000 | $450,000 |
| Transport Canada | $9,000,000 | $300,000 |
| Fisheries and Oceans Canada | $9,000,000 | $250,000 |
| All other departments | $4,500,000

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