Source: https://buyandsell.gc.ca/policy-and-guidelines/supply-manual/section/6
Timestamp: 2019-07-21 13:05:51
Document Index: 744993622

Matched Legal Cases: ['art 1', 'art 1', 'art 2', 'art 2', 'art 1', 'art 2', 'art 2', 'art 1', 'art 1', 'art 1', 'art 1', 'art 1', 'art 1', 'art 1', 'art 2', 'art 1', 'art 1', 'art 1', 'art 2', 'art 1', 'art 1', 'art 1']

Chapter 6 - Approvals and Authorities - Buyandsell.gc.ca
6. Chapter 6 - Approvals and Authorities
6.1 - Approvals and authorities - General information
6.5 - Procurement Approval Documents
6.5.1 - Procurement Plan
6.5.5 - Contract Planning and Advance Approval
6.5.5.1 - Contract Planning and Advance Approval Instructions
6.5.5.5 - Contract Request or Contract Planning and Advance Approval (CPAA) Resubmission
6.5.5.10 - Contract Summary
6.5.10 - Contract Request
6.5.15 - Treasury Board Submission
6.5.15.1 - Procurements Requiring a Treasury Board Submission
6.5.15.2 - Translation
6.5.15.5 - Retroactive Approval of Contract:
6.5.20 - Contract Amendment
6.10 - Additional Reviews
6.10.1 - Contract Quality Control Review
6.10.5 - Legal Services Review
6.10.10 - Cost and price analysis services
6.10.15 - Industrial Security
6.10.20 - Client Department Review
6.20 - Contract Approval and Signing Authorities
6.20.1 - Delegated Authority to Incumbents
6.20.1.1 - Responsibilities
6.20.1.5 - Incumbent
6.20.1.10 - Acting Incumbent
6.25 - Special Approval Considerations
6.25.1 - Go-Ahead Letters
6.25.5 - Forgiveness of Debts
6.25.10 - Waive of Interest
6.25.15 - Per Diem Rates
6.25.20 - Nil Value Amendment
6.25.25 - Financial Evaluation of Bids/Offers/Arrangements
6.25.35 - Stop Work Orders and Notices of Termination
6.25.45 - Trade-ins
6.25.50 - Treasury Board Exceptional Contracting Limits
6.25.55 - Contracts for Legal Services
6.25.60 - Standing Offer
6.30 - Procurement Process Initiated by Client
6.30.1 - Ratification by Treasury Board
6.30.5 - Ratifications within Departmental Authorities
6.30.10 - Confirming Orders and Contracts Involving Pre-contractual Work
6.1 - Annex: Procurement Plan Instructions
6.2 - Annex: Contract request instructions
6.3 - Annex: Preparation of Contract Amendment Approval Documents
6.4 - Annex: Conditions Imposed on the Approval Authority Limits for Public Works and Government Services Canada Personnel
6.4.1 - Annex: Approval Authorities and Additional Signing Authorities in Support of Clients' Programs Only - Other than for Canadian Commercial Corporation
6.4.2 - Annex: Contracting Limits including Exceptional Authorities
6.4.2.1 - Annex: Contracting Limits for Basic and Standard Procurements
6.4.2.5 - Annex: Contracting Limits for Complex Procurements
6.4.3 - Annex: Exceptional Contracting Limits for Complex Procurements
6.4.4 - Annex: Notes to Exceptional Contracting Limits for Complex Procurements
6.4.5 - Annex: Table of Equivalent Positions
6.4.6 - Annex: Contract Amendment Approval Instructions for Complexity Levels 1, 2 and 3
6.4.7 - Annex: Complex Contract Amendment Approval Instructions
6.4.8 - Annex: Amendment Approval Instructions for all Complexities
6.1 Approvals and authorities - General information
This chapter addresses the various types of plans, reviews and approval processes associated with procurement based on the different authority levels. These forms and approval processes apply to contracts/standing offers and supply arrangements. It also contains the authorities for approving and signing procurement documents and details special approval considerations and exceptions to approval authorities. Contracting officers will also find information for interpreting and using the authorities.
Contracts are entered into by Her Majesty the Queen as represented by a minister. The authority to enter into contracts is generally in the legislation constituting the department and conferring certain powers on the minister. The Department of Public Works and Government Services Act confers the Minister's contracting authority. The Minister's authority is delegated to officers throughout the Department in order to carry out the internal contract process.
The financial limits are established by Treasury Board pursuant to the Financial Administration Act and are set out in the Treasury Board Contracts Directive.
Contracting officers are delegated authorities to enter into contracts and to sign and amend contracts in accordance with the level of responsibility of the position they occupy. Details of the delegated authorities and obligations are provided in 6.20 Contract Approval and Signing Authorities.
Contracting officers must not split contracts or contract amendments in order to avoid obtaining either the approval required by statute, the Treasury Board Contract Directives or appropriate management approval. Furthermore, contracts must not be split to avoid Canada's obligations under national or international trade agreements, or the application of Public Works and Government Services Canada (PWGSC) procurement policies.
6.5 Procurement Approval Documents
The commodity, the associated risks, the dollar value of a procurement and other factors such as an emergency or the stage in the procurement process will determine the level of approval that contracting officers will need to seek, as well as the associated process that will be followed. To determine the appropriate approval level and approval document required, contracting officers must refer to the approval authorities for various commodities and other considerations outlined in 6.20 Contract Approval and Signing Authorities.
The different types of approval processes or forms are listed below:
Contract Planning and Advance Approval (CPAA);
CPAA Resubmission;
Contract Summary;
Treasury Board Submission;
Contract Amendment Request.
The sections below describe these documents. The approval documents may require additional reviews as detailed in 6.10 Additional Reviews.
Before the contracting officer takes any significant procurement actions, the procurement strategy must be approved. Significant procurement actions include, but are not limited to, publishing an Advance Contract Award Notice (ACAN), a Notice of Proposed Procurement (NPP), the solicitation or the commencement of negotiations.
When invoking 6.(d) of the Government Contracts Regulations (GCRs), all procurements must have appended to all approval documents, and documented on file, answers to the seven questions at Annex 3.1: Treasury Board Questions for Sole Source.
6.5.1 Procurement Plan
6.5.5 Contract Planning and Advance Approval
The Contract Planning and Advance Approval (CPAA) process allows for the approval of the Procurement Strategy and pre-approval for contract entry.
The CPAA is used for approvals up to and including director general and regional director general, unless a procurement plan applies to the procurement (see 6.5.1 Procurement Plan).
The CPAA should not be used if there is insufficient known information about the expected results of the procurement action.
A Procurement Risk Assessment must be performed prior to completing the CPAA and accompany the CPAA document when presented for approval. The CPAA must provide details surrounding the medium-high and high risks along with proposed mitigation strategies, as necessary.
The CPAA process allows contracting officers to issue contracts/standing offers/supply arrangements without further review by the approval authority when there are no significant changes to the procurement strategy in the approved CPAA. Following approval of the CPAA, the contracting officer will proceed with the procurement action until the contract is ready to be awarded. If the procurement action results in a significant change from the originally approved procurement strategy before the contract is awarded, a new procurement risk assessment must be performed and new approval sought, based on the outcome in accordance with 6.5.5.5 Contract Request or Contract Planning and Advance Approval (CPAA) Resubmission.
Contracting officers must summarize actions taken between approval of procurement strategy and contract entry through the use of the Contract Summary as detailed in 6.5.5.10 Contract Summary.
6.5.5.1 Contract Planning and Advance Approval Instructions
Contracting officers must complete the Contract Planning and Advance Approval (CPAA) form and explain the procurement strategy.
Contracting officers should include the following information, as applicable:
proposal/description: state the action proposed (e.g. to obtain approval to; to obtain advance approval) including all approvals being requested (e.g. approval to make advance payments, advance approval to firm up interim rates). Describe the requirement including options, if applicable;
total estimated cost of the requirement (including all advance approvals, duties and taxes);
under Remarks: address applicable issues such as:
for competitive procurements, state whether Government Electronic Tendering Service (GETS) or other public advertising, source lists (i.e., one time, ongoing), etc. will be used. If GETS is not being utilized to compete the requirement, an explanation must be provided;
when a non-competitive (sole source) procurement strategy is chosen, state the legal authority to use an exception to competitive bidding (see 3.15 Non-competitive Contracting Process);
describe the risks and proposed risk mitigation strategies associated with the procurement, in accordance with current policies, procedures and practices.
policy issues: identify any socio-economic considerations or deviations from policy and recommended course of action;
provide details surrounding the medium-high and high risks related to the procurement with proposed mitigation strategies;
evaluation criteria: identify the evaluation criteria and the solicitation method to be used including the pricing basis, mandatory and/or point rating criteria;
contractor selection method: selection method to be used;
milestones: give target dates for important milestones (e.g. bid solicitation, contract award, delivery schedule);
additional remarks: indicate any additional information that should be brought to the attention of the approval authority .
On receipt of the submission, the approval authority will, within two working days, review it and either grant full approval to proceed or identify concerns and direct changes to the proposed strategy. The approval authority may also approve the procurement strategy but not grant advance approval to enter into contract, in which case a Contract Request must be prepared and submitted for approval prior to contract entry. (See Annex 6.4: Conditions Imposed on the Approval Authority Limits for Public Works and Government Services Canada Personnel relative to conditions imposed on the approval authority limits).
Following approval of the CPAA, the contracting officer will proceed with the procurement action. If the procurement action results in a significant change from the originally approved plan before the contract is awarded, the CPAA must be resubmitted in accordance with 6.5.5.5 Contract Request or Contract Planning and Advance Approval (CPAA) Resubmission. If there is no significant change, the contracting officer will prepare the contract.
6.5.5.5 Contract Request or Contract Planning and Advance Approval (CPAA) Resubmission
The Contract Request or Contract Planning and Advance Approval (CPAA) Resubmission is used when there is significant change to the procurement strategy (e.g. non-competitive requirement has changed to competitive, or vice versa).
The reasons why the procurement strategy has changed and the additional risks, or changes to the already identified risks associated with the procurement must be explained in details in the Contract Request/CPAA, together with the proposed mitigation strategies.
If there has been a change to the complexity or risks, the Procurement Complexity Assessment (PCA) must be updated and another version of the procurement risk assessment at the appropriate complexity level must be performed and accompany the procurement approval documents prior to completing the Contract Request/CPAA Resubmission.
Contracting officers must submit the Contract Request/CPAA Resubmission to the appropriate approval authority in accordance with sector and region procedures.
Once the approval is received, the contracting officer will proceed with the procurement action required.
See Annex 6.2 Contract Request Instructions for instructions on the preparation of the contract request.
6.5.5.10 Contract Summary
The Contract Summary is used pursuant to an approved CPAA to document the actions taken from the time the CPAA was approved and prior to the issuance of a contract/standing offer/supply arrangement (including the results of the bid evaluation and contractor selection).
6.5.10 Contract Request
With the promulgation of PN105R1 - Procurement Complexity Levels, Risk Assessment and Approval Authorities, the content of this section was reviewed and incorporated in section 6.5.5.5 Contract Request or Contract Planning and Advance Approval (CPAA) Resubmission.
For reference purposes, section 6.5.10 is available in the Supply Manual Archive , Version 2014-3.
6.5.15 Treasury Board Submission
A Treasury Board (TB) submission is an official document submitted by the Minister on behalf of a department and is used to seek approval from TB ministers when there is a requirement for TB approval. TB approval is required for any contract or contract amendment exceeding the limits outlined in Annex 6.4: Conditions Imposed on the Approval Authority Limits for Public Works and Government Services Canada Personnel.
A TB submission can also be used to seek advance approval (e.g., at the stage when the procurement strategy has not been fully developed) with appropriate justification. TB ministers base their decision to approve, in this circumstance, on the information provided in the remarks section of the TB submission. Treasury Board Secretariat (TBS) analysts include in the analysis a risk assessment of the elements in the solicitation process outlined in the submission. If at any point during the bid solicitation process there is any deviation from what has been stated in the TB submission, the contracting officer must contact the TBS analyst to determine whether the change warrants further action, such as a letter to the TB President or a new TB submission. Contracting officers are to keep written advice from the TBS analyst on the procurement file.
Contracting officers must prepare TB submissions in accordance with the following:
the TB guidelines found in its publication: ARCHIVED - A Guide to Preparing Treasury Board Submissions and supplemented by the Acquisitions Branch (AB) "Treasury Board Submission Guide for Goods or Services Contracting", which contains the most recent requirements provided by TBS. It is recommended that contracting officers consult TB Submission Division of the Business Management Sector, Acquisitions Branch for further guidance.
the following substantiation, as required, must be included in all TB submissions:
submissions seeking approval of a non-competitive contract must provide an explicit and compelling rationale for not using a competitive process;
submissions seeking approval for a competitive or non-competitive contract must provide an assessment of the extent to which TB approval of the proposals could limit, or encourage, the competitiveness of related procurement activities in the future; and
submissions seeking Treasury Board approval of contracts should address compliance with the Federal Contractors Program (FCP) for employment equity. Consult Annex 5.1: Federal Contractors Program for Employment Equity for more information.
Proposed contracts and contract amendments, which require TB approval, must be approved by TB before they are entered into and before any work has begun.
Public Works and Government Services Canada (PWGSC) cannot enter into a contract, or make any contractual commitment (e.g., Letter of Intent), which constitutes the first step of a project that may subsequently require TB consideration and approval.
When TB has approved an amendment, PWGSC may further amend the contract without TB approval if the cumulative value of the amendments after each issuance of an amendment pursuant to a TB approval does not exceed the non-competitive amendment level set out in Annex 6.4: Conditions Imposed on the Approval Authority Limits for Public Works and Government Services Canada Personnel.
TB approval is also required for a number of areas described in the TB directives and circulars, as well as for the making of any "extra payment," i.e., a payment where a legal liability does not exist or has not been accepted by Canada, or where there is uncertainty that a legal liability exists under the contract.
6.5.15.1 Procurements Requiring a Treasury Board Submission
For Complexity Levels 1 through 3 inclusive, the contracting officer must complete a procurement risk assessment at the procurement strategy stage, and contact Risk Management Advisory Services (RMAS) once completed to discuss the results of the procurement risk assessment.
For Complexity Levels 4 and 5, the contracting officer must contact RMAS who will work in cooperation at the procurement strategy stage in completing a custom risk assessment specific to the complexities of a Level 4 or 5 procurement.
The contracting officer and RMAS will collaborate on the preparation of the Risk and Mitigation Strategy section in the Treasury Board (TB) submission and select up to five key risks, scoring medium, medium high or high that summarize the risk assessment. Each risk in the TB submission narrative must contain the following elements:
The risk statement, describing what harm may occur, the likelihood of it occurring and its impact on the procurement and/or the organization;
The risk response strategy, summarizing the actions, or procurement factors, that may reduce the likelihood or severity of the risk; and,
The residual or remaining level of risk to the procurement after taking into account the risk response measures.
Results of each TB submission risk assessment are maintained by the Risk Management Advisory Services and are reported to Acquisitions Branch operational sectors and regions, summarizing assessment activity and key findings.
6.5.15.2 Translation
Part 1 of the TB submissions must be prepared in both official languages, presented side by side.
When translation services are required for a technical or specialized document, it is helpful to send the translators a copy of an early draft so that any required terminology research may commence in order to expedite translation. Departmental standard procurement templates or other templates that have been translated and approved must be provided as a reference guide to the Translation Bureau to ensure consistency of terminology.
Contract amendment requests requiring TB approval must be prepared in a bilingual format using the form PWGSC-TPSGC 1151-1 , Contract Request/Contract Amendment Request.
6.5.15.5 Retroactive Approval of Contract
TB ministers will entertain submissions requesting retroactive approval of a contract or contract amendment only under exceptional circumstances, e.g., urgent cases involving public safety or security, incidents or cost overruns. In such cases, TB requires certification that the minister concerned agreed to the commencement of the work before receiving TB approval including a full report on the reasons, the managerial responsibilities involved and corrective actions taken.
6.5.20 Contract Amendment
The contract amendment approval document is used to seek approval to amend a contract/standing offer/supply arrangement. The amendment approval authority required will determine the document to be used. The amendment approval documents are:
the "Contract Amendment Request" form is used for director general and regional director general approval and below, at the sector's or region's discretion;
the form PWGSC-TPSGC 1151-1 , Contract and Contract Amendment Request, must be used for assistant deputy minister approval;
the TB submission form, available in the TB publication A Guide to Preparing Treasury Board Submissions, must be used for amendments requiring TB approvals;
see Annex 6.3: Preparation of Contract Amendment Approval Documents for instructions on the preparation of contract amendment approval documents listed in (i) and (ii) above. For TB submissions, see 6.5.15 Treasury Board Submission.
6.10 Additional Reviews
The contracting officer is responsible for ensuring that the procurement document(s) receive appropriate review and approval by the proper area or authority. Below are some of the reviewing authorities that must be consulted before or during the approval process.
6.10.1 Contract Quality Control Review
A review of the procurement by Quality Control and Support Services Division or Regional Quality Assurance is within the discretion of the contracting officer or the approval authority. The appropriate review body will provide written comments regarding the accuracy and adequacy of the approval documents to the contracting officer.
6.10.5 Legal Services Review
Legal Services must be consulted when the contracting officer is considering a deviation from Standard Acquisition Clauses and Conditions (SACC) Manual clauses or the departmental standard procurement templates or the departmental standard procurement templates, or commodity or sector-based legally approved templates.
Legal Services must review any requests for lessening Canada's full rights at law, a disclaimer, limitation of the contractor's liability, or decrease of the warranty time period. The proposed changes must also be acceptable to the client, and form part of the request for approval.
A review by Legal Services is within the discretion of the contracting officer or the approval authority, except in those instances that are mandated by policies and directives within the Acquisitions Program (for example, for sensitive requirements).
See section 3.110 Legal Services for other situations requiring consultation with Legal Services.
6.10.10 Cost and price analysis services
Mandatory Use of Cost and Price Analysis Services
Contracting officers must contact a cost analyst for:
any Treasury Board submission;
a contract or contract amendment requests; or
Contract Planning and Advance Approval;
which meets any of the mandatory conditions set out in the Directive on the Use of Cost and Price Analysis Services (PDF). The cost analyst will determine if further analysis or review is required.
Refer to the Directive for specific conditions, process, contact information and roles and responsibilities.
Discretionary Use of Cost and Price Analysis Services
Apart from the mandatory conditions where they must be consulted, cost analysts are always available for consultation on any procurement on a discretionary basis. Refer to the Guideline on the Use of Cost and Price Analysis Services (PDF) for more information on available services.
6.10.15 Industrial Security
Contracting officers should ensure that any industrial security requirement is addressed in the approval documents and that the Canadian Industrial Security Directorate (CISD) has done a review as appropriate. For more information on industrial security, see 4.30.10 Industrial Security in Contracts to 4.30.30 Foreign Ownership, Control or Influence and 5.15 Verifying Compliance with Security Requirements.
6.10.20 Client Department Review
Client departments must review and provide their written concurrence that the client’s input into the solicitation document (e.g. Statement of Work, Statement of Requirement, specification, evaluation) is accurately reflected within the solicitation document and the TB submission, in accordance with Annex 1.1: Matrix of Responsibilities between PWGSC and Client Departments for the Procurement of Goods and Services (Generic) and Annex 1.2: Specific Division of Responsibilities Agreements.
For the generic division of anticipated types of responsibilities between PWGSC and client departments, consult Annex 1.1: Matrix of Responsibilities between PWGSC and Client Departments for the Procurement of Goods and Services (Generic); for the two client-specific agreements with the Department of National Defence, consult Annex 1.2: Specific Division of Responsibilities Agreements.
A specific procurement may require the modification or deletion of individual conditions. These changes must be discussed with the client before inclusion in the solicitation or contract/standing offer/supply arrangement, to ensure that complete understanding exists as to the extent of the client's rights and responsibilities. For the responsibilities of the client department with respect to the solicitation, see 4.75.1 Client Department Review of Elements of a Solicitation.
6.20 Contract Approval and Signing Authorities
The internal approval and signing authorities, the conditions imposed on the approval authority limits, the exceptions to the approval authority limits and other guidelines are contained in the annexes of this chapter.
Contract approval and signing authorities in support of clients' programs must be exercised in accordance with the applicable legislation and regulations, and within PWGSC policies and guidelines.
The contract approval and signing authorities detailed in Annex 6.4.2: Contracting Limits including Exceptional Authorities are applicable to procurement requirements from client departments including when Public Works and Government Services Canada (PWGSC) is a client.
The contract approval and signing authorities in support of clients' programs apply to all contractual documents and arrangements, including the following:
formal agreements and arrangements (e.g., Interdepartmental Memorandum of Understanding (MOU));
go-ahead letters and go-ahead messages;
Stores Transfer Orders;
Supply Transfer Orders;
written direction to the Agency of Record (e.g., work authorization);
consents to subcontract;
termination for convenience notices; and
amendments to any of the above.
Conditions and limits set out in Annex 6.4: Conditions Imposed on the Approval Authority Limits for Public Works and Government Services Canada Personnel will apply to the approval and signing of all contractual documents and arrangements, including those arrangements that are not subject to the Government Contracts Regulations and Treasury Board Contracts Directive, unless approval and signing limits are set out within an existing Memorandum of Understanding.
The Deputy Minister's approval is required when the value of transfer agreements between departments (e.g., transfer orders with CORCAN) exceeds the approval limits set out in Annex 6.4.
Treasury Board approval is required when the value of contractual arrangements with provincial or municipal governments, or provincial or federal Crown corporations exceeds the approval limits set out in Annex 6.4.
Approval of contracts that include options must be sought in accordance with the total estimated cost including any options for which funds are available or expected to be provided in the future (see Annex 6.4.6: Contract Amendment Approval Instructions).
More than one contractual document must not be issued, under any circumstance, in order to circumvent the necessity of obtaining the proper approval authority.
If an Advance Contract Award Notice (ACAN) is published when directing a requirement to a specific supplier or vendor for the purposes of contract approval authorities, the procurement is classified under the "electronic bidding" category.
The electronic bidding approval levels apply whenever an ACAN has been posted and no valid Statement of Capabilities was submitted. See Annex 6.4.2: Contracting Limits including Exceptional Authorities.
6.20.1 Delegated Authority to Incumbents
All the authorities granted to and exercised by contracting officers in PWGSC are provided subject to the following:
if a contracting officer's responsibilities do not require the officer to exercise a particular authority (for any type of authority or above a particular dollar level) then that contracting officer does not, in fact, have that authority. Any and all authority granted to an incumbent of a position must be commensurate with, but not greater than, the level required to carry out the responsibilities assigned to the incumbent; and
it is a requirement that the relationship between responsibilities and authorities for each designated contracting officer be recognized on individual delegation forms. See PWGSC Delegation of Authorities Manual .
6.20.1.5 Incumbent
Limits to the contract approval and signing authorities granted by the Minister and Deputy Minister to incumbents of designated positions are as set out in Annex 6.4: Conditions Imposed on the Approval Authority Limits for Public Works and Government Services Canada Personnel. These are maximum limits which may be reduced at the discretion of the appropriate managers.
A person is normally designated the incumbent of a position following staffing action. Supervisors must inform new incumbents of the levels of contract approval and signing authority to be exercised, by signing an individual delegation form PWGSC-TPSGC 524, Delegation of Common Service Acquisition Authorities – Schedule 3 (PDF 156 KB) - (Help on File Formats).
Contracting officers who have previously exercised contract approval and signing authorities in another position may exercise, upon promotion, the authorities delegated to incumbents at the new level once a new individual delegation form is completed and signed. General information on Delegation of Authority Instruments is available to PWGSC employees on-line at Delegation of Authorities. Further information on the principles of delegation of authority and proper use of the authorities is available at Delegation Principles.
Directors general must withhold full contract approval and signing authorities from anyone who has had no PWGSC purchasing/contracting experience until competence has been demonstrated at a lower level of authority for at least six months.
To facilitate audit requirements, the signed original of the individual delegation form must be forwarded to the Manager, Internal Delegations, Strategic Policy Sector (SPS), Strategic Policy Management and Interpretation Directorate. Regional offices are requested to send a copy of the signed form. A signed copy should be kept on file in the procurement area or central location.
6.20.1.10 Acting Incumbent
Designation of an acting incumbent for a position, to which a level of authority has been granted, must be made by an authority level no less than that of the incumbent's supervisor.
The acting incumbent should normally be given the full contract approval and signing authorities of the position. However, the acting incumbent must not exercise these authorities on a procurement file for which the acting incumbent was responsible in the incumbent's normal position.
If an incumbent is to perform the duties of a position in an acting capacity for an indeterminate period, then the incumbent's supervisor will delegate authorities by signing the individual delegation form PWGSC-TPSGC 524 (PDF 156 KB) - (Help on File Formats), indicating the period that these authorities are to be in effect.
In those situations where an incumbent must perform the duties of a position in an acting capacity for a short period (e.g. vacation replacement), then the incumbent's supervisor will delegate authorities by email, indicating the period that these authorities are to be in effect. An example of an email is as follows:
Objet/ Subject: Absence de______________ / Absence of ______________
Par la présente je vous avise que l'employé(e) sous nommé(e) sera absent(e) pendant la période spécifiée. Pour assurer la continuité des opérations, les pouvoirs contractuels seront délégués au(à la) candidat(e) nommé(e) ci-dessous.
Personne absente/
Person Absent: ___________________
Titre du poste comblé/
Position Title occupied: ___________________
Période/ Period: ___________________
Candidat(e) nommé(e)/
Appointee's name: ___________________
Approuvé par/
The e-mail must be sent to the acting incumbent, with a copy to all contracting officers reporting to that position, and the Senior Purchasing Assistant of the supervisor's immediate superior. In addition, a copy of the e-mail must be placed on the file of any contractual document approved/signed by the incumbent while exercising the acting authority.
6.25 Special Approval Considerations
6.25.1 Go-Ahead Letters
Go-ahead Letters may be issued after obtaining final approval of the contract submission, provided all appropriate terms and conditions of the proposed contract are known and acceptable to the potential contractor. Go-ahead Letters are subject to the appropriate signing authorities.
6.25.5 Forgiveness of Debts
No PWGSC employee, without the appropriate delegated authority, is authorized to forgive debts arising out of contractual actions and which are owed to Canada. For the authority to write-off debts refer to "Debt Write-Offs (Deletion of Debts) " in the departmental Delegation of Authorities Instrument. For more information regarding debt write-off, see Debt Write-off Regulations, 1994.
6.25.10 Waive of Interest
No PWGSC employee is authorized to waive interest owed to Canada without the appropriate delegated authority. For the authority to waive interest charges, refer to "Waive of Interest " in the departmental Delegation of Authorities Instrument. For more information regarding waive of interest, see TB Interest and Administrative Charges Regulations.
6.25.15 Per Diem Rates
This section of the Supply Manual has been removed as per ARCHIVED - Policy Notification 105 (PN-105).
6.25.20 Nil Value Amendment
Nil value amendments involving a simple administrative change are the responsibility of each procurement sector/region. For nil value amendments where risk or liability will be transferred to Canada, refer to Annex 6.4.8: Amendment Approval Instructions for all Complexities, section 11.
6.25.25 Financial Evaluation of Bids/Offers/Arrangements
For any competitive procurement requiring contract entry approval of the Assistant Deputy Minister or above, more than one employee of Public Works and Government Services Canada must be involved in the evaluation of the prices. For more information on financial evaluation of bids/offers/arrangements, see section 5.45 Financial Evaluation of Bids.
For competitive procurements under Complexity Levels 2 and 3, a peer review of the results of the bid (technical and financial) evaluation and contractor selection must be obtained if determined by the results of the procurement risk assessment.
For competitive procurements under Complexity Levels 4 and 5, a peer review is mandatory.
Refer to section 5.45.1 Formal Peer Review – Evaluation of Bids for instruction on performing a Formal Peer Review.
Although arrangements with CORCAN are not governed by the Government Contracts Regulationsand the Treasury Board Contracts Directive, all existing departmental limits governing the approval of entry into and signing of contracts apply.
6.25.35 Stop Work Orders and Notices of Termination
Stop work orders and notices of termination must be approved and signed by a contracting officer in accordance with the Procurement Risk Assessment for Amendments (PRAA). The contract value at the time of the termination is used in the value question of the PRAA.
6.25.45 Trade-ins
Contracts for which trade-ins have been approved through disposal operations procedures are subject to approval authorities as detailed in Annex 6.4: Conditions Imposed on the Approval Authority Limits for Public Works and Government Services Canada Personnel. (All trade-ins are disposal operations and, as such, are subject to disposal operations procedures.) The trade-in value will not be considered in determining the required level of authority.
6.25.50 Treasury Board Exceptional Contracting Limits
PWGSC may enter into any form of agreement used by a railway company for permission to construct or maintain a private crossing or a pipe or cable crossing over, across or under the property of the company at a rate or in an amount no greater than those normally charged for each permission.
PWGSC may enter into any agreement with a railway, telegraph, telephone or power company for permission to attach wire to poles belonging to the company at a rate or in an amount no greater than those normally charged for each permission.
PWGSC may enter into and amend contracts with the United States Government containing that government's usual terms dealing with indemnity and liability, subject to the limits of the TB Contracts Directive.
6.25.55 Contracts for Legal Services
Contracts for the performance of legal services may be entered into only by or under the authority of the Minister of Justice.
6.25.60 Standing Offer
The inclusion of a limitation of expenditure in standing offers is optional (see section 4.10.20.1 Standing Offer Procedures).
The approval authority to establish standing offers which do not contain a limitation of expenditure will be determined by the results of the procurement risk assessment using "standing offer" delegation.
When completing the risk assessment, contracting officers must enter the total estimated procurement value for the entire standing offer period.
For those standing offers which contain a limitation of expenditure, the approval authority required to revise the standing offer method of supply is in accordance with the appropriate contract amendment delegation of authority for the specific commodity (i.e. goods, services).
If advance approval was not sought or given to issue a standing offer, then approval to issue each resulting standing offer is required. The total estimated value of each resulting standing offer is used to determine the approval authority.
If advance approval for Public Works and Government Services Canada to issue call-ups on behalf of a client against a standing offer was not requested at the time of obtaining approval to establish the standing offer, the approval authority for each call-up will be determined by the procurement risk assessment using the appropriate commodity delegation (e.g. goods, services, construction).
For more information on standing offers, see 3.40 Standing offer method of supply and 4.10.20 Request for Standing Offers. For more information on supply arrangements, see 3.45 Supply arrangement method of supply and 4.10.25 Request for Supply Arrangements.
6.30 Procurement Process Initiated by Client
Public Works and Government Services (PWGSC) is sometimes asked to process requirements when the procurement process was initiated by client departments (e.g. sourcing, bidding, evaluation, selection). For details on how to process these types of requirements, refer to section 2.65 Procurement Process Initiated by Client..
6.30.1 Ratification by Treasury Board
As stated in the Treasury Board (TB) Contracting Policy, subsection 4.1.11:
"If a contracting authority enters into a contract without Treasury Board approval when such approval should have been obtained, ratification by the Treasury Board must be sought as soon as possible."
The request for TB approval must include information on the circumstances, the type and value of the contract awarded, and whether it was possible to seek bids.
In a case where contract approval is being sought for work already commenced, the contracting officer must include with the request the concerned client department's certification that it had agreed to the commencement of work before the receipt of TB approval.
Where ratification is required due to an administrative oversight, the corrective measures taken to minimize administrative oversights must be outlined in the request.
6.30.5 Ratifications within Departmental Authorities
For procurements that fall within Complexity Levels 1 through 3 inclusive, the approval authority for agreements which involve:
ratification of contractual commitments;
contracts/amendments which include pre-contractual work clauses; or
any other retroactive elements;
will be the appropriate non-competitive contract approval authority, as determined by the application of a procurement risk assessment and the non-competitive contract approval authority limits.
For procurements that fall within Complexity Levels 4 and 5, the approval of the Assistant Deputy Minister is required.
6.30.10 Confirming Orders and Contracts Involving Pre-contractual Work
Public Works and Government Services Canada (PWGSC) does not normally place contracts to confirm the actions of departments or agencies. The practice of providing such service to client departments should be discouraged to the maximum extent practical. However, it may be necessary for PWGSC to become involved because of its exclusive goods procurement authority. PWGSC may have some value to add in processing confirming orders when the work is complete, or contracts when the work has started.
Requests for confirming orders and contracts for pre-contractual work are considered non-competitive and must be evaluated and processed on the basis of the circumstances surrounding each instance. Where the request is the result of attempts to circumvent normal procurement procedures, return of the request to the client department should be a prime consideration.
Where the work has been completed, Legal Services will prepare a confirming order that will contain only the information necessary to document the transaction, which includes the parties, the work performed, the dates, the amount, a release and, if required, a transfer of intellectual property rights. The appropriate director or higher authority, as determined by the contract value and non-competitive contract approval authority limits, must approve the confirming orders processed by PWGSC.
Where the work has commenced, the contracting officer will prepare a contract. This contract should only include work that was not subject to a proper contract authorization. Even though the work started before a required contract authorization, the contract must not be backdated. The date in the Period of the Contract or Period of Performance clause must be the award date of the written contract. The contract cannot be backdated or retroactive under any circumstances. To ensure that the work done before the contract date will be covered by the contract, the pre-contractual work clause C0210C of the Standard Acquisition Clauses and Conditions Manual, indicating the date the work has started, must be included in the contract to pay the contractor for any work performed before the award of the written contract.
For procurements that fall within Complexity Levels 1 through 3 inclusive, the appropriate authority, as determined by the Procurement Risk Assessment and non-competitive contract approval authority limits, must approve the contracts processed by PWGSC.
For procurements that fall within Complexity Levels 4 and 5, the approval of the ADM is required.
Annex 6.1: Procurement Plan Instructions
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
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.
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.
Identify applicable trade agreements (North American Free Trade Agreement, 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 (Set-aside Program for Aboriginal 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.
Attach relevant Procurement Review Committee document. Identify any other relevant socio-economic or environmental considerations. For more information on the Industrial and Regional Benefits Program, see 3.70 Procurement Review.
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.
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.
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.
State the name, sector/region, division and telephone number of the authority responsible for the project.
Leave two or three lines for comments by the approval authority.
Senior Director or Regional Director OR
Director General/Regional Director General
Director General/Regional Director General OR
Add the Sole Source Questions and Answers as Annex A
Annex 6.2: Contract request instructions
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 and PWGSC-TPSGC 1151-2 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.
Preparation of Contract Request
Contracting officers must prepare the Contract Request as outlined below.
Contract Request form PWGSC-TPSGC 1151-1 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.
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.
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.
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 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.
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.
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):
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;
exempt or zero-rated (indicate reason for exemption), or
delivery terms, for example:
FOB (free on board) destination,
FAF (free alongside flight),
FOB common carrier, contractor's plant,
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."
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 .
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 the North American Free Trade Agreement, Canada-European Union Comprehensive Economic and Trade Agreement, the World Trade Organization Agreement on Government Procurement, or the Canadian Free Trade Agreement, 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 or of the Procurement Review 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.
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 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 , 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):
Federal Contractors Program for Employment Equity, and
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 . 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 , 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:
Federal Contractors Program for Employment Equity; and
Annex 6.3: Preparation of Contract Amendment Approval Documents
1. Amendments requiring the approval of Directors General/Regional Directors General and below:
The Contract Amendment Request (CAR), available in the Automated Buyers Environment (ABE), 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.
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: 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 Contract Request/Contract Amendment Request (Part 1 - Submission Data)and Form PWGSC-TPSGC 1151-4 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.
Additional Costs (or Reduction in Cost)
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 , 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
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.
Annex 6.4.1: Approval Authorities and Additional Signing Authorities in Support of Clients' Programs Only - Other than for Canadian Commercial Corporation
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.
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, does not exceed $100,000 (competitive) or $25,000 (non-competitive).
TB approval is required for 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 $100,000 (competitive) or $25,000 (non-competitive).
The fee component in any non-competitive contract must 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, subsection e.
TB approval is required for submissions granting approval to enter into or amend a contract with former public servants in receipt of a lump sum payment pursuant to the terms of a work force reduction program where the fee component will exceed $5,000 of either the individual contract or a combination of contracts, during the period covered by the lump sum payment. See section 3.90, subsection e.
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	Integrity Provisions
Public Interest Exception (PIE): A PIE must be invoked prior to entering into a contract, supply arrangement or standing offer with a bidder, offeror or supplier, 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 Assistant Deputy Minister (ADM) of Acquisitions Branch (AB) through the Acquisitions Program Integrity Secretariat (APIS), by e-mail at TPSGC.DGAIntegrite-ABIntegrity.PWGSC@tpsgc-pwgsc.gc.ca.
Integrity verification: When a response of “Caution Due Diligence Should be Applied” is received, approval must be sought at the level indicated on the response (i.e. ADM or Director General (DG) level).
All requests for ADM approval must be sent to APIS for processing, by e-mail at TPSGC.DGAIntegrite-ABIntegrity.PWGSC@tpsgc-pwgsc.gc.ca.
All requests for DG approval must be sent through the established processes within the sector or region. Contracting officers may seek assistance from APIS by e-mail at TPSGC.DGAIntegrite-ABIntegrity.PWGSC@tpsgc-pwgsc.gc.ca if required.
Heightened integrity approval is not required when issuing:
an amendment where the Integrity Provisions were not modified;
a call-up;
a contract subsequent to a supply arrangement; or
a task authorization.
Contracting officers may proceed with obtaining approval at the level determined for the contract through the Procurement Risk Assessment.
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 ADM/AB through APIS, by email at TPSGC.DGAIntegrite-ABIntegrity.PWGSC@tpsgc-pwgsc.gc.ca.
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 as follows:
in accordance with Annex 6.4.2: Contracting Limits including Exceptional Authorities;
and if under departmental seal, together with the Corporate Secretary.
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), as a prerequisite for client certification pursuant to section 34 of the Financial Administration Actis 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 , Settlement and Release) for terminations on behalf of the Minister is delegated as follows:
Arising from termination for convenience:
Director General, Policy, Risk, Integrity and Strategic Management Sector, Acquisitions Branch (PRISM/AB)
Director, Acquisition Program Integrity Secretariat, PRISM/AB
Chairman, Contracts Settlement Board
Other than for termination of convenience, authority is one of the following in the order listed:
Chairman, Contracts Settlement Board.
For assistance, contracting officers may consult the Specialized Support Services for Procurement Division, at 819-934-1382.
2.3 Industrial Security
The Director, Canadian Industrial Security Directorate, has the authority to provide instructions to contractors concerning industrial security requirements.
2.4 Certificates under departmental seal
The Assistant Deputy Minister, Corporate Services, Policy and Communications Branch, has the authority for certifying that documents under departmental seal are true copies.
Annex 6.4.2: Contracting Limits including Exceptional Authorities
The Delegation of Authorities Tables for Complexity Levels 1 through 3 inclusive for the Acquisitions Program can be found on the Contracting Limits and Related Notes page on GCpedia.
The limits shown in the Delegation of Authorities Tables 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, Acquisitions 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 Branch 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 "electronic bidding" category. The electronic bidding 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 for the same commodities for which the incumbent has delegation of authority, regardless of dollar value. 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.
By default, the delegation limits of individual officers are a percentage of the departmental authority:
Level 1 and 2 positions have 100% of the departmental authority;
Level 3 positions have 50% of the departmental authority; and
Level 4 positions have 5% of the departmental authority.
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 C – Treasury Board Contracts Directive.
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.
Approval and amendment authorities are set in the Exceptional Contracting Limits detailed on the Contracting Limits and Related Notes page on GCpedia.
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.
Manager Director Director General Assistant Deputy Minister Assistant Deputy Minister
Supply Team Leader Manager Senior Director/Regional Director/Director Assistant Deputy Minister Assistant Deputy Minister
Supply Specialist Supply Team Leader Manager Assistant Deputy Minister Assistant Deputy Minister
Supply Officer Supply Specialist Supply Team Leader Assistant Deputy Minister Assistant Deputy Minister
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
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 , Version 2014-3.
Annex 6.4.2.5: Contracting Limits for Complex Procurements
The obsolete content of Annex 6.4.2.5 has been deleted but can be viewed for reference only in the Supply Manual Archive , Version 2014-3.
Annex 6.4.3: Exceptional Contracting Limits for Complex Procurements
The obsolete content of Annex 6.4.3 has been deleted but can be viewed for reference only in the Supply Manual Archive , Version 2014-3.
Annex 6.4.4: Notes to Exceptional Contracting Limits for Complex Procurements
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 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 , Version 2014-3.
Annex 6.4.5: Table of Equivalent Positions
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.
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.
Table of Equivalent Positions
Assistant Deputy Minister, Acquisitions
Associate Assistant Deputy Minister, Acquisitions
Director General, Acquisitions
Senior Director, Crown Assets Distribution
Senior Director, Seized Property Management Directorate
Manager (Koblenz)
Senior Contracts Officer (Washington)
Marine Technical Inspector (when performing purchasing functions)
Export Transportation Officer
Intern Officer/Trainee
Sales Representative (Crown Assets Distribution)
Annex 6.4.6: Contract Amendment Approval Instructions for Complexity Levels 1, 2 and 3
With the exception of administrative amendments and pre-approved amendments, the approval authority level for a proposed amendment to a contract within Complexity Levels 1 through 3 inclusive is determined by completing a 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 amendments, both positive and negative (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.
Exceptional Authorities: Unless otherwise stated within the notes to contracting limits including exceptional authorities found on the Contracting Limits and Related Notes page on GCpedia, 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 page on GCpedia.
Annex 6.4.7: Complex Contract Amendment Approval Instructions
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 , Version 2014-3.
Annex 6.4.8: Amendment Approval Instructions for all Complexities
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.
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.
Approval Level: 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.
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.
Approval Level: 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.
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).
Contract amendments that propose changes to either the basis of payment, the method of payment or the contract conditions, so that additional risk or liability is transferred to Canada, must be authorized in accordance with the Procurement Risk Assessment for Amendments for that contract only if corresponding compensatory benefits accrue to Canada. In the absence of corresponding benefits, such changes would constitute extra payments for which only TB has approval authority.
The following are examples of changes that would constitute additional risk to Canada:
liberalizing the progress payments;
eliminating the requirement for a performance bond;
slippage, by the contractor, of firm delivery dates.
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
Document Type number 22, Contract Code for Pre-approved Amendments is available in the Automated Buyer Environment (ABE) and SELECT, and is used to identify all pre-approved amendments.
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 as determined by the Minister's delegation of amendment authorities.
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
All amendment approval authorities (for amendments not pre-approved) must be determined on the basis of the 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.
As a general principle, once an approval level has been reached, it can never be lowered. As an example, once the manager level for approval has been reached for Complexity Level 1 procurements, then every subsequent positive amendment reverts to the manager regardless of dollar value.
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.
Amendment Approved by Treasury Board
When TB has approved an amendment, PWGSC may further amend the contract without TB approval if the cumulative value of the amendments after each issuance of an amendment pursuant to a TB approval does not exceed the non-competitive contract amendment approval authority limits set out in Annex 6.4.2: Contracting Limits.