Approval Authority

An approval authority is the position or body that an organization's delegation framework authorizes to approve contracts and contract amendments. In Canadian federal procurement, the Public Services and Procurement Canada (PSPC) Supply Manual defines contract approval authority as the authority delegated by the Minister of Public Works and Government Services to the occupant of a designated position. That person approves submissions to enter into or amend contracts, or to issue standing offers, up to specified dollar limits. The definition is in the Supply Manual glossary.

The term describes an internal government control. It is not the supplier's authority, and it does not necessarily belong to the person who administers the contract. The Supply Manual separates it from the Contracting Authority, the official authorized to enter into and sign contractual documents on behalf of the department. The approval authority decides whether a contract action may go ahead. The Contracting Authority is the official who signs it and who deals with suppliers.

How PSPC links approval authority to procurement complexity

PSPC ties approval authority for entering into contracts and making non-administrative amendments to the complexity of the procurement. For complexity levels 4 and 5, CanadaBuys states that the authority is assigned to the Assistant Deputy Minister (ADM) of the Procurement Branch or of the Defence and Marine Procurement Branch, subject to stated exceptions. The full rules are set out in PSPC's contracting limits and exceptional authorities.

An approved Contract Planning and Advance Approval document can also change how often the approval authority reviews individual actions. PSPC states that, when there are no significant changes to the approved procurement strategy, contracting officers can issue contracts, standing offers or supply arrangements without further review by the approval authority. See the PSPC internal audit of land, aerospace and marine equipment procurement.

Approval authority for ratifications and retroactive elements

PSPC requires approval at the applicable authority level for ratifications of contractual commitments. The same applies to contracts or amendments that contain pre-contractual-work clauses and to other retroactive elements. For complexity levels 4 and 5, the approval authority in these cases is the relevant Assistant Deputy Minister. The requirement appears in PSPC's guidance on procurement processes initiated by a client.

Approval authority in defence procurement

The Department of National Defence (DND) describes a sequence of approvals before contracted goods or services are delivered. They are financial or commitment authority, procurement-initiation authority, and the Contracting Authority's authority to enter into and sign contractual documents. This sequence is described in the DND audit of contract amendments.

DND's DAOD 3000-0 names the Assistant Deputy Minister (Materiel) as the approval authority for that directive. It also assigns that official responsibilities as the senior designated official for procurement and materiel management.

Major projects add central oversight. For high-risk, high-complexity defence projects, DND seeks Project Approval Authority and Expenditure Authority from Treasury Board. PSPC may require Treasury Board contracting approval before contract award when value or risk exceeds its limits. The Office of the Procurement Ombudsman summarizes this process on its Treasury Board contracting page.

How CATSA defines Approval Authority

Federal organizations outside PSPC use the term in their own policies. The Canadian Air Transport Security Authority (CATSA) defines Approval Authority as the position or body authorized to approve contracts under its Procurement and Contracting Policy and Procedures. Contracts and amendments must be approved in accordance with CATSA's Delegation Chart. The definition is in the CATSA Procurement and Contracting Policy.

What approval authority means for suppliers

Suppliers do not obtain or exercise approval authority. Follow the solicitation's submission instructions and deal with the designated Contracting Authority. CanadaBuys tender notices, for example, state that bids sent to an address other than the one specified will not be accepted.

Internal approvals can still shape your timeline. High-value, complex, amended, retroactive and defence procurements need approvals at higher levels. Those approvals can affect when a contract is awarded and whether proposed work may begin. Build that into your delivery planning, and do not start work before the Contracting Authority confirms a contract is in place.