Approval Document

An approval document is a formal document that a Government of Canada buyer submits to an authorized decision-maker to obtain approval for a procurement action or strategy. The term is used by Public Services and Procurement Canada (PSPC) in its procurement approval process, and it covers several kinds of documents rather than one standard form.

CanadaBuys lists the types as a procurement plan, a Contract Planning and Advance Approval (CPAA) document, a CPAA resubmission, a contract summary, a contract request, a Treasury Board submission and a contract amendment request. Which ones a buyer must prepare depends on the value of the procurement, the product or service category, the risks, the complexity, the circumstances and the stage reached in the process. The details are set out in the CanadaBuys approval processes guidance.

Types of approval document buyers prepare

The procurement plan documents the buyer's strategy, the risks identified and the measures to mitigate them. The procurement plan guidance states that it must be approved at the appropriate level before a solicitation of offers is issued.

The CPAA records the proposed procurement strategy and supports approval to proceed with procurement activities. A contract request is a separate document used at the point of contract entry. A CPAA resubmission, a contract summary, a Treasury Board submission and a contract amendment request complete the list of approval documents named by CanadaBuys.

Actions that need approval first

Before significant procurement actions, the procurement strategy must be approved by the appropriate approval authority. These actions include issuing an Advance Contract Award Notice (ACAN), publishing a Notice of Proposed Procurement, issuing a solicitation and beginning negotiations.

Contract entry has its own rule. A contract request must be prepared before entering into a contract when the procurement strategy has changed significantly or when contract entry was not pre-approved through the CPAA process. Approval must be obtained before the buyer accepts a supplier's offer or asks a potential contractor to perform specific work. The contract request guidance sets out these requirements.

How the CPAA works

The buyer completes the CPAA and explains the procurement strategy. The approval authority may then grant full approval, identify concerns or require changes to the strategy. A CPAA can allow the buyer to issue contracts, standing offers and supply arrangements without further review, provided the approved strategy has not materially changed.

The approval authority can also approve the strategy while withholding approval to enter into a contract. In that case a subsequent or revised approval document must be submitted before contract award, as the CPAA guidance explains. A Government of Canada procurement practice review describes the CPAA as a record of information used for management oversight, including the requirement, estimated costs, procurement strategy, risks and proposed amendments.

Standing offers, task authorizations and amendments

• Standing offers and supply arrangements: CPAA or procurement-plan approval is used to create, renew and extend them, and the relevant category-review and evaluation documents must be included. See the standing offers and supply arrangements guidance.
• Task-authorized contracts: The CPAA or formal procurement plan must address why the services suit this method of supply and the proposed financial limits for client-issued task authorizations. See the task authorizations guidance.
• Contract amendments: The procurement practice review states that a CPAA is required for each contract amendment and records approval of key decisions, including the procurement strategy and amendments.

What an approval document means for a supplier

Approval documents are internal buyer-side records, and suppliers do not prepare or submit them. Their effect on a supplier is one of timing. A solicitation, an ACAN or a negotiation follows only after the buyer's strategy has been approved, and an offer cannot be accepted until the required approval is in place.

A supplier should therefore not start work, or treat an award as authorized, until the buyer has confirmed that the required approval has been obtained. CanadaBuys states that approval is required before a supplier's offer is accepted or a potential contractor is asked to perform specific work. Suppliers can also expect amendments, standing offer renewals and extensions to go through their own approval step before they take effect.