Directive on the Management of Procurement

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

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

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

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

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

Schedule 1: Construction

Department	Competitive	Non-competitive
Public Services and Procurement Canada	$75,000,000	$1,250,000
All other departments	$750,000	$100,000

Schedule 2: Goods

Department	Competitive	Non-competitive
Public Services and Procurement Canada	$75,000,000	$3,750,000
Shared Services Canada	$75,000,000	$3,750,000
National Defence	$7,500,000	$375,000
All other departments	$750,000	$100,000

Schedule 2A: Specialized goods

Department	Commodity	Competitive	Notes
Public Services and Procurement Canada	Bulk fuel	$75,000,000	Applies to call-ups against a standing offer established by Public Services and Procurement Canada
All other departments	Bulk fuel	$10,000,000

Schedule 3: Services

Department	Competitive	Non-competitive
Public Services and Procurement Canada	$37,500,000	$5,750,000
Shared Services Canada	$37,500,000	$5,750,000
National Defence	$7,500,000	$375,000
Transport Canada	$7,500,000	$250,000
Fisheries and Oceans Canada	$7,500,000	$200,000
All other departments	$3,750,000	$200,000

 

Schedule 3A: Specialized services

Commodity	Department	Competitive	Non-competitive	Notes
Architectural and engineering services	Public Services and Procurement Canada	$7,500,000	$200,000	Where the Treasury Board has approved an increased amount of a competitive architectural and engineering services contract, the contract amounts stated can be amended by $250,000 for competitive contracts and $100,000 for non-competitive contracts.
	All other departments	$60,000	$60,000	n/a
Transportation services from common carriers	All departments	Unlimited	n/a	Rates charged must not exceed the normal rates for such services.
Energy services	All departments	$25,000,000	$25,000,000	Applies to service contracts issued pursuant to the Natural Resources Canada Federal Building Initiative for the acquisition of energy supply, energy efficiency improvements, energy management services, and energy management monitoring and training. Each custodian’s first energy management contract over $1,000,000 must be submitted for Treasury Board approval.
Regulated services	All departments	n/a	Unlimited	Services must be at regulated prices or at prices accepted by a regulatory mechanism, including electricity, gas, water, sewage disposal, heat, postage and telecommunications, and the contract does not involve negotiated installation or capital charges in excess of $200,000. Includes services with a railway, telegraph, telephone, or power company for permission to attach wires to poles belonging to the company. Rates or amounts must not exceed those normally charged.
Deregulated services	Public Services and Procurement Canada	$300,000,000*	n/a	*Applies to non-regulated telecommunications services. Deregulated telecommunications services are defined as services that are not regulated by the Canadian Radio-Television and Telecommunications Commission (CRTC). Applies to services for procurement of electricity or natural gas. Services include deregulated portions, at rates or in amounts no greater than those normally charged.
		$100,000,000	n/a
	Shared Services Canada	$300,000,000*	n/a
	National Defence	$20,000,000	n/a
	All other departments	$5,000,000	n/a

Schedule 4: Contractual arrangements

Department	All commodities
Public Services and Procurement Canada	$25,000,000
All other departments	$500,000

In addition to the requirements of section A.1 (Basic contracting limits), Treasury Board approval is required when the Minister (or their delegated authority) enters into a contract (or contractual arrangement when stated) above the specified limit for the departments listed below, including all applicable taxes, fees and amendments, unless otherwise indicated.

When an exceptional limit is different from the basic contracting limit for its corresponding schedule, the exceptional limit applies.

Agriculture and Agri-Food Canada

Exceptional limits previously approved for the Minister responsible for Agriculture Canada:

Related to the Prairie Farm Rehabilitation Act:

• Competitive architectural and engineering services contract up to $600,000
• Non-competitive architectural and engineering services contract related to buildings or public works up to $100,000

Canadian Food Inspection Agency

• Competitive construction contract up to $1,500,000
• Architectural and engineering services contract up to $150,000
• Competitive contracts up to $4,500,000 to implement a Minister’s order under the Health of Animals Act and the Plant Protection Act in response to a threat to Canada’s food safety, animal health or plant health

Canadian Security Intelligence Service

• Competitive and non-competitive goods or services contract up to an amount approved by the Treasury Board to support sensitive operations

Correctional Service Canada

• Non-competitive contract for provision of educational and health care services for inmates, and for the provision of residential and non-residential after-care services to conditionally released offenders up to $600,000
• Competitive health and social services contract up to $10,000,000
• Non-competitive contractual arrangements with other levels of government and quasi-governmental entities, such as hospitals, universities and colleges, up to $5,000,000
• Non-competitive service contracts and contractual arrangements, where the total value does not exceed $40,000,000 and for which the Correctional Service of Canada already has the statutory authority as per sections 16 and 81 of the Corrections and Conditional Release Act

Crown-Indigenous Relations and Northern Affairs Canada

Exceptional limits previously approved for the Minister responsible for Crown-Indigenous Relations:

• Non-competitive contract for the services of federal negotiators and/or representatives for claims, litigation, rights-based negotiations, engagement and co-development processes on policy and legislative initiatives, and implementation of negotiated agreements up to $2,000,000
• Non-competitive contract for the services of Crown deponents and expert witnesses for litigation up to $800,000
• Amend contract with federal negotiators and/or representatives that were entered into under the exceptional contracting limits to extend the period of the explicit indemnification provisions

Exceptional limits previously approved for the Minister responsible for Northern Affairs:

• Non-competitive contract for the services of federal negotiators and/or representatives for claims, litigation, rights-based negotiations, engagement and co-development processes on policy and legislative initiatives, and implementation of negotiated agreements up to $2,000,000
• Amend contract with federal negotiators and/or representatives that were entered into under the exceptional contracting limits to extend the period of the explicit indemnification provisions

Environment and Climate Change Canada

Exceptional limits previously approved for the Minister responsible for the Department of the Environment:

• Non-competitive services contract for research and technology development in water and waste pollution control in support of federal programs up to $750,000

Fisheries and Oceans Canada

• Competitive architectural and engineering services contract for the salmonid fish hatchery facilities up to $600,000
  
• Non-competitive architectural and engineering services contract for the salmonid fish hatchery facilities up to $100,000
  
• For the Small Craft Harbour program:
  • competitive construction contract up to $2,000,000
  • competitive architectural and engineering services contract up to $350,000

Global Affairs Canada

Exceptional limits previously approved for the Minister responsible for International Development:

• Competitive services or construction contract for an international development assistance program or project, or to approve a recipient country’s entry into such a contract up to $30,000,000
• Approve a recipient country’s entry into a goods contract for:
  • competitive contract up to $8,000,000
  • non-competitive contract up to $2,000,000

Exceptional limits previously approved for the Minister responsible for Foreign Affairs, Trade and Development:

• Competitive construction contract for facilities up to:
  • $2,250,000 for staff quarters
  • $6,750,000 for an official residence
  • $22,500,000 for a chancery
  • $22,500,000 for multiple-unit facilities
• Architectural and engineering services for:
  • competitive contract up to $3,000,000
  • non-competitive contract up to $225,000
• Non-competitive services contract in support of an official visit to a foreign country by the Prime Minister of Canada and/or the Governor General of Canada up to $900,000
  
• Competitive security services contract for the purpose of Canadian missions abroad up to $11,000,000

Exceptional limits approved for the Minister of Foreign Affairs:

• Under the Weapons Threat Reduction Program, for international support or assistance for:
  • competitive and non-competitive construction contract up to $5,000,000
  • competitive and non-competitive goods contract up to $6,500,000
  • non-competitive services contract up to $2,000,000
  
  
• Under the Counter-Terrorism Capacity Building Program (CTCPP) or the Anti-Crime Capacity Building Program (ACCBP), for international support or assistance for:
  • competitive goods contracts up to $1,500,000
  • non-competitive goods contracts up to $750,000
  • non-competitive services contracts up to $1,500,000

Indigenous Services Canada

• Non-competitive contract for the services of Crown deponents and expert witnesses for litigation up to $800,000
  
• Non-competitive contract for the delivery of health care services to Indigenous Peoples in Canada up to $3,000,000

Library and Archives Canada

• Non-competitive goods contract for historical material, books and other publications up to $150,000

National Defence

• Acquire logistics support, supplies and services from states allied or associated with Canada under a mutual logistic support arrangement during the execution of combined exercises, training, deployments, operations, or other cooperative efforts, provided all related transactions are executed within the approved resource envelope for the activity being supported and subject to a request and authorization from the Minister of Public Services and Procurement Canada when required. Logistic support, supplies and services are specifically defined as food, water billeting, transportation (including airlift), petroleum, oils, lubricants, clothing, communications services, medical services, ammunition, base support (and construction incident to base operations support), storage services, use of facilities, training services, spare parts and components, repair and maintenance services, calibration services, port and airport services, and the temporary use of general-purpose vehicles and other non-lethal items of military equipment to the extent that such use is permitted under the national laws of the signatories.
  
• Non-competitive test and evaluation services against contractual arrangements with allied states up to $10,000,000
  
• For services of transportation of personnel and materiel:
  • competitive contract up to $20,000,000
  • non-competitive contract up to $5,000,000
• Non-competitive services to provide transportation to the Canadian Armed Forces for certain non-domestic requirements against contractual arrangements with the North Atlantic Treaty Organization Support and Procurement Agency up to $10,000,000
  
• Non-competitive services contract for flying and glider training for air cadets up to $3,000,000
  
• Competitive and non-competitive goods and services contract or contractual arrangement up to an amount that has been approved by the Treasury Board in support of sensitive operations

National Film Board

• Non-competitive services contract for producer services in the making of films up to $500,000

Office of the Superintendent of Financial Institutions

• Non-competitive services contract, for urgent and highly confidential investigations of financial institutions as determined by the Minister up to $225,000

Parks Canada

• To be applied to all Parks Canada funding sources, in support of capital investments:
  • competitive construction contracts up to $15,000,000
  • competitive architectural and engineering services contracts up to $3,750,000
• Non-competitive architectural and engineering services contract up to $75,000

Public Services and Procurement Canada (including the Defence Investment Agency)

• Contracts and contractual arrangements on behalf of the Department of National Defence and the Canadian Coast Guard and approved by the appropriate governance committee that:
  1. Have a low or medium complexity and an overall low or medium risk according to a risk analysis undertaken by a departmental official who is not otherwise involved in the procurement,
  2. Are structured to allow for future competition for the good or service, where possible, and
  3. Demonstrate that sufficient planning was undertaken, to the extent possible, to avoid the need for urgent approval.

  Treasury Board Secretariat concurrence is required for non-competitive contracts and contractual arrangements with overall medium-risk.

  Treasury Board Secretariat may direct proposals under this risk-based approach to Treasury Board for approval.

• Subject to approval of a procurement and negotiating strategy by Treasury Board in advance of proceeding with any solicitation activities or negotiations, all high-risk defence contracts and contractual arrangements conducted by the Defence Investment Agency for an unlimited dollar value. All exceptional limits for the Defence Investment Agency apply exclusively to procurements that directly support the military acquisitions for the Canadian Armed Forces. These limits do not extend to IT equipment or systems for internal use by the Department of National Defence.
• Subject to an approval and any associated conditions set by the President of the Treasury Board, competitive and non-competitive goods and services contracts and contractual arrangements of unlimited value that are part of a response to a sustained emergency of national importance
• Goods agreement to supply edible agricultural products as part of a foreign aid program up to $10,000,000 under the following conditions:
  • bids are reasonable under prevailing market conditions, the lowest valid bid is accepted or when necessary to obtain the tonnage demanded, successive lowest valid bids are accepted; or
  • when bids include Freight Aboard Ship multiple ports, the lowest valid bid or, when necessary to obtain the tonnage demanded, successive lowest valid bids that result in the lowest total cost to the recipient country are accepted
    
• Competitive and non-competitive agreement up to $5,000,000 to transport by ocean-going vessel any goods for Global Affairs Canada under the following conditions:
  • the price offered is considered by the contracting authority to be reasonable under prevailing market conditions; and
  • the lowest valid bid is accepted or, if it is necessary to accept more than one bid to accommodate the quantity of goods to be shipped, successive lowest valid bids are accepted
    
• Services contract for repair and overhaul of military equipment up to $50,000,000
  
• Goods or services contract for ammunition under the Munitions Supply Program up to $50,000,000
  
• Goods and services contracts and contractual arrangements under the United States Foreign Military Sales Program up to $50,000,000 United States Dollars (USD). Note that Public Services and Procurement Canada is authorized to accept the usual terms dealing with indemnity and liability of the Government of the United States for contractual arrangements with that government.
  
• Contract with the three selected shipyards for goods and services associated with large ships projects under the National Shipbuilding Strategy up to $115,000,000

Royal Canadian Mounted Police

• Competitive construction contract up to $11,500,000
  
• Architectural and engineering services for:
  • competitive contract up to $1,850,000
  • non-competitive contract up to $150,000
• For housing and detachment projects:
  • competitive construction contract up to $23,000,000
  • competitive architectural and engineering services contract up to $3,700,000
• Competitive and non-competitive goods and services contracts or arrangements up to an amount approved by the Treasury Board in support of sensitive operations

Shared Services Canada

• Subject to an approval and any associated conditions set by the President of the Treasury Board, competitive and non-competitive goods and services contracts and contractual arrangements of unlimited value that are part of a response to a sustained emergency of national importance
• Non-competitive contracts for up to $22.5 million to support IT operations for the Government of Canada where IP rights of the supplier prevent the contract from being completed.
• Until December 31, 2024, non-competitive services contract for interim cloud application hosting services, specifically for Infrastructure-as-a-Service, Platform-as-a-Service, and Software-as-a-Service, under the current Government of Canada Cloud Framework Agreement to support existing IT applications currently hosted in the cloud for up to $26 million.
• From January 1, 2025 to March 31, 2026, non-competitive services contract for interim cloud application hosting services, specifically for Infrastructure-as-a-Service, Platform-as-a-Service, and Software-as-a-Service, under the current Government of Canada Cloud Framework Agreement to support existing IT applications currently hosted in the cloud for up to $15 million

Emergency contracting limits are supplementary to basic and exceptional limits.

Emergency contracting limits are subject to the goods delegations, including those for emergency provisions where specified, from Public Services and Procurement Canada and Shared Services Canada, as applicable.

• A.3.1Contracting authorities are responsible for the following:
  • A.3.1.1Entering into or amending a contract or contractual arrangement in response to a pressing emergency where a delay in approval would be injurious to the public interest and when the expected value is up to $3,000,000, including applicable taxes and fees, provided that:
    • A.3.1.1.1the requirement cannot be satisfied by normal contracting procedures due to the urgency of the situation;
    • A.3.1.1.2the urgency provision of each applicable trade agreement has been invoked, or an exemption to applicable trade agreements applies;
    • A.3.1.1.3the Minister (or their delegated authority) approves the use of these special authorities;
    • A.3.1.1.4the most senior contracting authority available enters into the contract or contractual arrangement; and
    • A.3.1.1.5any limitation of liability or indemnification of the contractor is approved by the chief financial officer or the most senior designated official available;
  • A.3.1.2Seeking Treasury Board approval when the Minister (or their delegated authority) enters into or amends a contract or contractual arrangement above the specified limit for the departments listed below, including amendments, applicable taxes and fees.
• A.3.2 Emergency contracting limits: applicable to specific departments

  Department of Fisheries and Oceans

  Non-competitive contract in response to pressing emergencies caused by actual or potential marine pollution (including, but not limited to, response or prevention actions where there is an impending risk of a marine pollution incident, in relation to incidents involving hazardous vessels, cargo loss, oil spill and Hazardous and Noxious Substances up to $15,000,000

  Department of National Defence

  Non-competitive contract for fuel, food, water and transportation services during urgent deployments of Canadian Forces units, under authorized operational orders up to $5,000,000

  Global Affairs Canada

  Non-competitive contract or contractual arrangement in response to major crises abroad (e.g., natural disasters, humanitarian and food crises, conflict, and political upheaval) where a delay would be injurious to the public interest up to $5,000,000

  Non-competitive contract or contractual arrangement related to national security-related threats or in response to major crises abroad affecting the health, safety and security of Canadians, permanent residents and their eligible family members up to $15,000,000

  Non-competitive contract or contractual arrangement related to national security-related threats to chanceries or Canadian missions abroad up to $15,000,000

  Emergency limit previously approved for the Minister responsible for International Development:

  Contract (including starter contracts) that is part of an international development assistance program or project up to $4,000,000

  Office of the Superintendent of Financial Institution Canada

  Non-competitive services contracts in response to pressing emergencies for investigations and monitoring of financial institutions, or in the context of taking control of a financial institution, to act as an agent of the Superintendent up to $4,000,000

  Public Services and Procurement Canada

  Emergency limit previously approved for the Minister responsible for Public Works and Government Services Canada:

  Non-competitive contract on behalf of any department, including Public Services and Procurement Canada, up to $25,000,000

  Shared Services Canada

  Non-competitive contract up to $25,000,000

  All other departments

  Non-competitive or competitive contract up to $3,000,000 in response to a pressing emergency

• A.4.1Contracting authorities are responsible for the following:
  • A.4.1.1Obtaining the responsible Minister’s approval before entering into a non-competitive service contract with a former public servant:
    • A.4.1.1.1In receipt of a pension under the Public Service Superannuation Act when the estimated total contract exceeds $200,000, including all amendments, applicable taxes and fees, or
    • A.4.1.1.2In receipt of a pension under the Public Service Superannuation Act, when the annualized rate of remuneration exceeds $200,000, including all applicable taxes and fees, and the contract term exceeds 90 working days; or
    • A.4.1.1.3In receipt of a lump-sum payment when the total fees payable will exceed $5,000 during the lump-sum payment period as provided in the Work Force Adjustment Directive made pursuant to the Public Sector Compensation Act; or who are former members of the Canadian Armed Forces and the Royal Canadian Mounted Police in receipt of lump-sum payments through corresponding force reduction programs, regardless of whether one or more than one contract is involved.

• A.5.1Senior designated officials are responsible for the following:
  • A.5.1.1Seeking Treasury Board approval for amendments to departmental contracting approval limits supported by a business case that considers operational, financial, organizational, legal and reputational risks and including the following:
    • A.5.1.1.1A description of what the department plans to procure within the proposed contracting approval authority;
    • A.5.1.1.2A description of similar procurements by the department within its current contracting approval authority;
    • A.5.1.1.3The reason for not using a common service provider’s service, if applicable;
    • A.5.1.1.4The planned additional management controls that will be instituted to manage any increased risk, if required;
    • A.5.1.1.5The actions taken to address the recommendations of the most recent audits or reviews;
    • A.5.1.1.6The ratio of the proposed authority to the non-statutory allocation for the department;
    • A.5.1.1.7The expected future use of the proposed authority for procurement that is aligned with the departmental priorities identified in the departmental investment and procurement plans, as appropriate;
    • A.5.1.1.8The trend in the number and value of procurements by the department over the past two to seven years for the goods, services and construction covered by the request;
    • A.5.1.1.9The number and type of projected Treasury Board submissions that would be impacted by the changed authority; and
    • A.5.1.1.10The associated workload and the capacity of the department to undertake additional procurements.

• A.6.1Public Service and Procurement Canada is responsible for procuring goods and services relating to mission-oriented science and technology requirements in the natural sciences and the human science fields of urban, regional and transportation studies.

• A.7.1Common service providers must publish and maintain a list of standing offers and supply arrangements that is available to departments.

Mandatory standing offers and supply arrangements

• A.7.2The use of Public Services and Procurement Canada’s standing offers and supply arrangements is mandatory for the commodity classes listed in Table A7, unless the procurement is subject to a Comprehensive Land Claims Agreement and the mandatory standing offers and supply arrangements does not address the applicable Comprehensive Land Claims Agreement contracting obligations.

Table A7: Commodities for which standing offers and supply arrangements are mandatory

Commodity class code	Description
D	Information Processing and Related Telecom Services
R	Professional, Administrative and Management Support Services
N23	Ground Effect Vehicles, Motor Vehicles, Trailers and Cycles
N58	Telecommunications Equipment and Accessories
N70	General Purpose Automatic Data Processing Equipment (including Firmware), Software, Supplies and Support Equipment
N71	Furniture
N74	Office Machines, Text Processing Systems and Visible Recording Equipment
N75	Office Supplies and Devices
N84	Clothing, Accessories and Insignia
N91	Fuels, Lubricants, Oils and Waxes

Creation or maintenance of mandatory standing offers and supply arrangements

• A.7.3Common service providers must seek Treasury Board approval for changes to the overall approach used for mandatory commodities.
• A.7.4Common service providers are responsible for submitting a business case to the Treasury Board of Canada Secretariat for the review and concurrence of changes to the list of mandatory commodities.
• A.7.5Common service providers are responsible for monitoring and data collection to ensure the relevancy of mandatory commodities in accordance with Appendix C: Mandatory Procedures for the Disclosure of Contracts and Reporting, subsection C.1.2.
• A.7.6The Treasury Board of Canada Secretariat reserves the right to request a revalidation or review of the current mandatory standing offers and supply arrangements on a set timeframe following the effective date of the Directive on the Management of Procurement.