Contract Amendment Request (CAR)

A Contract Amendment Request (CAR) is the document a Canadian federal contracting authority prepares to get approval before changing an existing contract, standing offer (SO) or supply arrangement (SA). The CanadaBuys Buyer's Guide describes the contract-amendment approval document as the one used "to seek approval to amend a contract, SO or SA." It sets out what is changing, what the change is worth and who must sign off.

The CAR is mainly a contract administration and internal approval tool, not a supplier-facing bid document. Suppliers rarely complete one, but they feel its effects: scope, price, schedule or basis of payment cannot change until the amendment has been approved and issued in writing. Read the CanadaBuys guidance on contract amendments for the buyer-side view.

What a Contract Amendment Request contains

According to CanadaBuys, a CAR should generally include:

• A description of the original goods or services and the purpose of the proposed amendment
• The total value of the amendment, including any increases or decreases
• The client's name and other relevant information
• A summary of approval documents and approval levels
• The proposed basis of payment, or a justification for changing it
• Identified risks and mitigation measures
• The Risk and Assurance Assessment (RAA), where required

Before proceeding with an amendment, the contracting authority should complete an RAA to identify risks and determine the appropriate approval authority. Administrative amendments and pre-approved options are the exceptions. Public Services and Procurement Canada (PSPC) names two forms for this purpose, PWGSC-TPSGC 1151-1 (Contract Request/Contract Amendment Request, Part 1: Submission Data) and PWGSC-TPSGC 1151-4 (Contract Amendment Request, Part 2: Supporting Data). Sectors and regions may use them at their discretion.

Treasury Board approval and the CAR

The federal Directive on the Management of Procurement requires contracting authorities to seek Treasury Board approval before entering into or amending certain contracts. The requirement applies when the estimated value, including expected amendments and follow-on arrangements, exceeds the applicable approval limits. The directive is published by the Treasury Board of Canada Secretariat.

The archived federal Supply Manual adds that a CAR requiring Treasury Board approval must be prepared bilingually using form PWGSC-TPSGC 1151-1.

How CARs appear in defence and temporary-help contracts

A Department of National Defence audit template describes the amendment process as preparing and approving the amendment documents, submitting them to the contracting authority, and actioning the request. Actioning includes obtaining the contractor's consent where required. The term also appears in major acquisitions. PSPC published a briefing-note record titled "Contract Amendment Request for Arctic & Offshore Patrol Ships (AOPS) 7 & 8 (Canadian Coast Guard Variant)."

Temporary-help contracts show a practical use. PSPC's temporary-help guidance allows a contract to be amended on an exceptional basis for up to 24 additional consecutive weeks beyond the normal 48-week limit.

NATO uses the related term contract amendment or modification. Its Procurement Manual defines it as a written record of changes to the original contractual terms and conditions, and requires amendments to be made in writing.

A different CAR: Compliance Assessment Report

The acronym CAR is also used for Compliance Assessment Report, a separate term from bid evaluation. It appears in PSPC fairness monitoring reports such as the 2023 integration support services report. It has no connection to contract amendments.

What a CAR means for a supplier bidding on Canadian public contracts

You will not usually file a CAR yourself, but you will be asked to support one. Expect requests for information that justifies the change, and expect to review and accept the revised scope, price, schedule or basis of payment. Where consent is required, give it formally. Perform only the amended requirement once the amendment is approved and issued in writing. Work done on the strength of an informal instruction, before approval, falls outside the contract.

When you price a bid, remember that larger contracts, including their expected amendments, can trigger higher approval levels. A realistic scope at the outset reduces the need for later amendments and the approvals that come with them.