Directive on the Management of Materiel

The directive ensures that materiel is planned, acquired, operated, maintained and divested in a manner that supports the delivery of programs and services to Canadians, while ensuring best value to the Crown.
Date modified: 2021-07-06

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The requirements in the Directive on the Management of Materiel take effect on May 13, 2021 and replace the following instruments:

Appendix A: Mandatory Procedures for Land Vehicle Fleet Management

A.1 Effective date

  • A.1.1These procedures take effect on .
  • A.1.2

    These procedures replace the following Treasury Board Policy instruments:

    • Directive on Fleet Management: Light Duty Vehicles ()
    • Directive on Fleet Management: Executive Vehicles ()

A.2 Procedures

  • A.2.1These procedures provide details on the requirements set out in section 4 of the Directive on the Management of Materiel.
  • A.2.2These procedures apply to Government of Canada land vehicles registered in Canada.
  • A.2.3

    Mandatory procedures are as follows:

    • A.2.3.1

      Materiel management practitioners are responsible for the following:


      • A. appropriate action to identify, assess and minimize risks associated with the acquisition, operation and divestment of vehicles.
      • A. that a mechanism is in place to determine whether ongoing and new operational requirements can be met within the existing fleet or through the use of other options that are financially and environmentally responsible.
      • A.

        Substantiating the requirement for the acquisition or replacement of government vehicles by:

        • A. the vehicle’s function with program requirements;
        • A. the need for a vehicle by taking into consideration the vehicle’s physical condition and financial, operational, environmental and accessibility criteria;
        • A. departmental fleet size;
        • A. the most appropriate and efficient vehicle class and type, with consideration for vehicle and engine size, that meets operational requirements, and
        • A. manufacturers’ production lead times into the planning and replacement cycle for vehicle acquisitions;


      • A. all purchases of land vehicles through Public Services and Procurement Canada’s (PSPC’s) established methods of supply;
      • A. that all light-duty vehicles are selected from the Government Motor Vehicle Ordering Guide (GMVOG) published by PSPC;
      • A. that vehicle leases or rentals are used only for temporary or peak/seasonal program-related operational requirements;
      • A. that when rentals or leases are used, that the classes, engines, options and minimum features are consistent with those contained in the GMVOG; and
      • A.

        When delays are expected in the delivery of a new vehicle or emergencies occur, considering temporary arrangements in the following order:

        • A. the use of the vehicle being replaced;
        • A. another departmental vehicle; or
        • A. a rental vehicle until the ordered vehicle is delivered by the manufacturer;

      Operation and maintenance

      • A. that government vehicles are used only for authorized government purposes and according to departmental policies;
      • A. measures to reduce greenhouse gas emissions and modernize the fleet based on government requirements;
      • A. premium fuel only when it is required by the vehicle manufacturer;
      • A. that employees who have access to government land vehicles understand that the Government of Canada self-underwrites the risks associated with the use of such vehicles. As such, there is no requirement to purchase commercial insurance coverage, with the exceptions outlined in subsection A.;
      • A.

        Ensuring that appropriate commercial insurance coverage is arranged through PSPC for:

        • A. vehicles registered in Canada that are driven in the United States;
        • A. used for government programs by operators who are not Crown servants; and
        • A. executive vehicles;
      • A.

        Tracking required information about the fleet using a fleet management information system and a fleet card, as required. The fleet management system must:

        • A. all mandatory data fields outlined in subsection A. through manual entry, automatic population and the collection of data from the fleet card;
        • A. a single, coherent, department-wide view of all vehicle maintenance, operating and repair costs related to fleet management;
        • A. information to support planning and decision-making; and
        • A. kept up to date, complete and accurate;
      • A.

        Using the appropriate designated card for land vehicle fleets, where issued, to:

        • A. for all operations and maintenance expenses of government vehicles registered in Canada; and
        • A. that expenses paid with a fleet card are limited to those needed for the operations and maintenance of the government vehicle or motorized equipment to which the fleet card is assigned, wherever possible;
      • A. to the appropriate authority all expenditures on the operations and maintenance of government vehicles that were made without the use of a fleet card, for input into the fleet management database. Such expenditures include the use of other means of payment made to a vendor who refuses to accept the fleet card for payment; and
      • A. that designated fleet cards are not used to pay for the purchase and installation of decals and equipment add-ons acquired as aftermarket improvements.
      • A.

        Mandatory data collection fields for fleet land vehicles are as follows:

        Administrative information and identification information
        • Department name (or client code)
        • Program name
        • Ownership (leased or owned)
        • Status of vehicle (active or inactive)
        • Government fleet vehicle number
        • Vehicle identification number (VIN)
        • Associated fleet card number(s)
        • Type of card (vehicle-specific, non-specific, dedicated second card, seasonal)
        • Fleet card on-system date (date that the card is first connected to the fleet information system)
        • Status of card (active or inactive)
        • Card limit
        • Cancellation date of card
        Vehicle tombstone data
        • Model year
        • Make
        • Model
        • Vehicle specification code used by PSPC (if available)
        • Number of cylinders in engine (two digits)
        • Size of engine by litres
        • Transmission: automatic (A) or manual (M) and the number of gears (3, 4 or 5) or variable (V)
        • Fuel type capability of the vehicle and grade requirement (where applicable)
        • Fuel system
        • Licence plate and province or territory
        • Vehicle category and subcategory
        • Assigned status (pooled, driver assigned, etc.)
        Vehicle location and billing information
        • Physical location: street address, city, province/territory and postal code
        • Billing address: street address, city, province/territory and postal code
        Utilization statistics
        • On-road or taken-on-strength date (including leased or rented vehicles)
        • On-system date (if different from taken-on-strength date)
        • Out-of-service or sale date of vehicle
        • Current odometer reading in kilometres
        • Current odometer date
        • Days of use
        Vehicle costing and life-cycle information
        • Capital cost of vehicle
        • Vehicle maintenance and repair costs (for both internal and external maintenance and repair, including warranty work if notified)
        • Vehicle maintenance and repair service dates (for both internal and external maintenance and repair, including warranty work if notified)
        • Bulk or retail fuel or electricity purchase
        • Date of purchase
        • Total units of purchase, by specific fuel type and grade
        • Name and location of supplier or owner of bulk facility, if applicable
        • Unit cost of fuel or electricity purchased
        • Total purchase cost
    • A.2.3.2

      In addition to the above requirements, the following requirements apply only to executive fleet vehicles:

      • A. vehicles are authorized only for ministers and eligible senior officials. Authorized users of executive vehicles are Cabinet ministers, ministers of state, secretaries of state, deputy ministers of the Crown, and eligible senior officials who are entitled to make use of an executive vehicle.
      • A.

        Eligible senior officials are those who meet all the following requirements:

        • Are Government in Council appointees;
        • Hold a full-time position with a personal classification equivalent to the DM 2 level (GC 9-10 or GCQ 9-10) or above;
        • Are deputy heads; and
        • Occupy the most senior position in the organization.
      • A. authorized maximum price limit for executive vehicles is established by the Comptroller General of Canada and communicated annually to PSPC and the Privy Council Office.
      • A. actual total price paid for an executive vehicle, excluding taxes and aftermarket equipment or accessories installed in an executive vehicle for reasons of security and efficient government business, must fall within the applicable limit and includes the cost of all factory-installed equipment and accessories and all preparation and delivery charges.
      • A.

        An executive vehicle is eligible for replacement if:

        • A. vehicle being replaced is an executive vehicle that was accepted after April 1, 2018, from the delivering dealer, and was kept more than six years, or that has travelled more than 150,000 kilometres; or
        • A. vehicle being replaced is an executive vehicle that was accepted from the delivering dealer more than three years before April 1, 2018 or has travelled more than 150,000 kilometres.
      • A. price limits will be reduced by 25% if these conditions are not met.
    • A.2.3.3

      Authorities and exceptions are as follows:

      • A. Comptroller General of Canada has the authority to determine the most appropriate method of procurement for executive vehicles.
      • A. Treasury Board must approve exceptions to the authorized maximum price limit, executive vehicle standards and selection of executive vehicles.
    • A.2.3.4Executive vehicle acquisitions must be zero-emission vehicles (ZEVs) or hybrid-electric vehicles (HEVs) and be selected exclusively from the Executive Vehicles Listing maintained by PSPC.
    • A.2.3.5

      An executive vehicle must meet executive business requirements, authorized user needs and, where possible, authorized user personal preference, and must fall within one of the following vehicle classes:

      • Intermediate, compact or subcompact four-door sedan;
      • Station wagon or hatchback;
      • Sport utility vehicle or crossover vehicle; or
      • Minivan.
    • A.2.3.6PSPC will ascertain the eligibility of the official for whom an executive vehicle or insurance coverage is requisitioned and will verify that the vehicle conforms to the requirements in subsections A.2.3.4 and A.2.3.5 as set out in these mandatory procedures.
    • A.2.3.7Departments must provide the appropriate PSPC contracting authority with the acceptance date of each executive vehicle acquired in order to ensure that vehicle insurance coverage is in place when the vehicle is put into service.
    • A.2.3.8Gasoline-powered executive vehicles can be replaced with ZEVs or HEVs at any time without incurring the penalty stipulated in subsection A.
    • A.2.3.9If it is cost-effective, an executive vehicle that is either six years old or that has travelled 150,000 kilometres can be transferred to another minister or eligible senior official in the department or agency, or it can be transferred to the departmental fleet.
    • A.2.3.10Temporary transfers of a departmental vehicle to the executive fleet must occur only while waiting for the delivery of an executive vehicle that is on order. The temporarily transferred vehicle must also be consistent with the classes listed in subsection A.2.3.5 and fall within the authorized maximum price limits.
    • A.2.3.11

      Ministers and eligible senior officials, and persons related to these authorized users are allowed to make personal use of their assigned executive vehicles when these vehicles are not required for official use.

      • A. use of executive vehicles is considered a taxable benefit under the Income Tax Act and must be reported as income in accordance with the Canada Revenue Agency’s guidance on taxable benefits.
    • A.2.3.12Executive vehicles must not bear external identification markings such as those identified in subsection 3.1 of the Federal Identity Program Manual.
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