Basic Contracting Limits

Basic contracting limits define the maximum dollar value of contracts that procurement officers can award on their own authority, without escalating to senior management or central agencies. These thresholds—set out in the Treasury Board's Directive on the Management of Procurement—determine how much independence your department has when buying goods, services, or construction. Think of them as the ceiling of your procurement autonomy.

How It Works

The thresholds aren't one-size-fits-all. According to the Directive on the Management of Procurement, standard limits typically allow departments to procure goods up to $25,000, construction up to $750,000 (competitive) or $100,000 (non-competitive), and services up to $3.75 million. These figures appear consistently across departments like CBSA, though some agencies receive higher delegations based on their operational needs.

Here's the thing: whether you're running a competitive process or sole-sourcing matters significantly. The Office of the Procurement Ombud notes that construction contracts awarded competitively can reach $750,000 under basic limits, but that drops to just $100,000 for non-competitive awards. Why the difference? Treasury Board wants to encourage competition while keeping tighter control over sole-source arrangements.

When your contract value exceeds these limits, you'll need to escalate. For most departments, that means routing through Public Services and Procurement Canada (PSPC) or seeking Treasury Board approval for exceptionally large procurements. Some departments have negotiated Exceptional Contracting Limits Authority, which pushes their ceiling higher—sometimes to $1 million for emergency situations—but that's not automatic. As detailed in CIRNAC's audit reports, these enhanced authorities come with specific conditions and oversight requirements.

Key Considerations

• Electronic vs. traditional bidding affects your limits. Departments like Indigenous Services and Northern Affairs Canada have received different thresholds depending on whether they use electronic bidding systems or traditional paper-based competitive processes.

• Don't split contracts to avoid approval. If you're breaking what should be a single procurement into multiple smaller contracts just to stay under limits, auditors will notice. The intent of the work matters, not just the paper trail.

• Your departmental Financial Administration Act (FAA) delegation instrument is what actually matters. The Directive sets the framework, but your specific signing authority comes from your deputy head's delegation. Always verify your personal limits before committing funds.

• Time sensitivity doesn't automatically raise your limits. Even urgent procurements must follow your delegated authority unless your department has formal emergency contracting provisions in place.

Related Terms

Exceptional Contracting Limits, Contracting Authority, Sole Source Procurement

Sources

• Directive on the Management of Procurement - Treasury Board of Canada Secretariat

• Audit of Contracting and Procurement - Canada Border Services Agency

• Contract Administration in Construction Contracts - Office of the Procurement Ombud

Before you sign anything, confirm both the contract value and your specific delegation. When in doubt, escalate early—it's far easier to get approval upfront than to justify exceeding your authority after the fact.