Approval

In Canadian public procurement, approval is the authorization required from the appropriate approval authority before the government initiates specified procurement actions, enters into or amends a contract, or accepts a supplier's offer. A contract request for approval must be prepared before the government enters into a contract, and approval must be obtained before it accepts an offer or asks a potential contractor to perform specific work. The CanadaBuys buyer's guide on the contract request sets out this requirement.

The term belongs to Government of Canada procurement governance. The level of approval required depends on the value of the procurement, the product or service category, the risks, the circumstances and the stage reached in the procurement process, as described in the CanadaBuys guidance on approval processes. Approval is therefore not a single sign-off. It is a series of internal checks that happen before key steps in a procurement.

Approval authority and contract signing authority

CanadaBuys separates two roles. The approval authority approves the procurement strategy and the proposed contract terms. Before doing so, it reviews whether the proposed terms comply with applicable legislation, regulations and policy.

The contract signing authority has a different job. It must ensure that the contract being executed reflects the terms the approval authority approved. Approving a deal and signing it are separate responsibilities, and a contract is not properly entered into until both have been carried out. The approval processes page describes both roles.

Procurement steps that require approval

Approval applies at several points in the procurement cycle:

• Before major solicitation activity: The procurement strategy must be approved before the government issues an Advance Contract Award Notice (ACAN), a Notice of Proposed Procurement or a solicitation of offers, and before it begins negotiations.
• Before accepting an offer or directing work: A contract request for approval must be prepared before contract entry. Approval must be obtained before the government accepts a supplier's offer or asks a potential contractor to perform specific work.
• Before contract award: Once negotiations are complete, the contract approval document is submitted to the appropriate approval level. The CanadaBuys guidance on elements to consider before award covers this step.

Treasury Board approval and contracting limits

Treasury Board policy uses the terms Treasury Board approval and contracting approvals for contracts and contractual arrangements that exceed applicable delegated-authority limits. Contracting authorities must seek Treasury Board approval before entering into or amending a contract when the estimated value exceeds the limits in the contracting-approval schedules. The Treasury Board contracting policy sets out these rules.

The limits account for the total amount payable, including applicable taxes, fees and amendments. In some cases they also account for follow-on contracts. Approval can also be required before the government enters into or amends a contract issued against a standing offer or supply arrangement, when the estimated value exceeds the limit specified in the Treasury Board-approved instrument. The same policy contains specific emergency-contracting approval rules, including for circumstances in which delay would harm the public interest.

What approval means for a supplier

A supplier cannot treat an offer as accepted just because the government has selected it, opened negotiations, asked for work or signalled intent. Approval must be obtained before the government accepts an offer or asks a potential contractor to perform specific work, and a contract must reflect the terms the approval authority approved.

• Follow the instructions in the solicitation and from the contracting authority.
• Do not begin work until the required government approval and contract execution have taken place.
• Expect that amendments to an existing contract, including those issued against standing offers or supply arrangements, can need their own approval.