Approval Authorities

When you're tracking procurement activity across government departments, understanding who can actually say "yes" to a contract is fundamental. These designated individuals—whether they're contracting officers at PSPC or departmental managers—operate within carefully defined limits that determine what they can approve without escalating up the chain.

How It Works

The framework starts with Treasury Board, which sets the overarching contracting approval limits that departments must follow. According to the Supply Manual Annex 6.1, these limits aren't just about dollar amounts—they come with specific conditions that personnel must meet before they can exercise their authority. Most departments operate with standard thresholds of up to $2M for services advertised on GETS (now MERX™), $400K for traditional competitive processes, and $100K for non-competitive contracts.

Here's where it gets interesting. Your approval authority depends on several factors beyond just your title. The Supply Manual describes how PSPC manages these delegations, but individual departments like DND or SSC establish their own internal levels within TB's broader framework. A contracting officer must secure proper approval before committing funds. The system includes checks to prevent contract splitting—where someone might break up a larger procurement into smaller pieces to stay within their limits.

The approval process involves multiple layers, and financial signing authority differs from contracting authority. Both may be required depending on the procurement's nature and value. PSPC provides the overall coordination, but departments retain significant autonomy in establishing their internal hierarchies, which means a procurement officer at one department might have different limits than someone with an equivalent title elsewhere.

Key Considerations

• Authority limits are conditional, not automatic. Meeting Annex 6.1's conditions is mandatory—you can't exercise approval authority just because you hold a certain position. Training requirements, certification levels, and adherence to specific procurement methods all factor in.

• Competitive vs. non-competitive makes a huge difference. That $100K threshold for non-competitive contracts is significantly lower than the $2M available for competitive processes on GETS. This differential reflects the additional scrutiny required when sole-sourcing or using limited tendering.

• Contract amendments require fresh approval. When modifications push the total value beyond your original authority level, you need to escalate. This catches people off guard when they're managing long-term arrangements with variable requirements.

• Departmental variations matter for market intelligence. If you're tracking opportunities across multiple departments, remember that internal approval structures differ. What requires ADM sign-off at one department might be delegated lower elsewhere, affecting timelines and decision-making patterns.

Related Terms

Procurement Complexity Levels, Contracting Authority, Standing Offers and Supply Arrangements

Sources

• Supply Manual - Annex 6.1: Conditions Imposed on the Approval Authority Limits for Departmental Personnel

• Supply Manual - Section 1.001 Procurement Activities

• Procurement Process Approval Form - Approval and Signing Authorities

When analyzing procurement patterns or advising clients, always verify the specific approval thresholds applicable to the department you're dealing with. Generic assumptions about authority levels will lead you astray.