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Contract Fee Limit Policy
The duration, measured in weeks of salary, during which a former public servant receives a lump sum payment to aid in their transition to retirement or new employment following workforce reduction initiatives, crucial for determining eligibility and compliance with contract fee limits.
Here's the thing: the term "Contract Fee Limit Policy" as defined here doesn't actually exist in Canadian government procurement. The definition provided—describing severance payments to former public servants in weeks of salary—has been confused with something entirely different. What you're looking for is information about contracting authority limits, which determine how much individual departments can spend on contracts without additional approvals.
How It Works
Under the Treasury Board Contracting Policy, departments operate within specific dollar thresholds that govern their procurement authority. The basic framework breaks down into three tiers: up to $100,000 for non-competitive contracts, up to $400,000 for traditional competitive processes, and up to $2 million for services advertised through electronic bidding on the Government Electronic Tendering Service (GETS). These aren't arbitrary numbers. They're tied to trade agreement thresholds—particularly the Canada Free Trade Agreement (CFTA) Chapter Five—and risk management principles embedded in the Financial Administration Act.
In practice, PSPC and individual departments navigate these limits differently. A supply arrangement using the "right-fit" competitive method, for example, caps individual contracts at $105,700 according to the Contract Assessor Guidance Document. Anything over $1 million triggers additional review requirements. The Treasury Board Contracting Policy sections 2(a) and 10.8.19 provide the authority framework, while subsection 34 of the Financial Administration Act ensures proper financial control and approval processes are followed before commitments are made.
What doesn't appear anywhere in the Supply Manual—the authoritative reference for federal procurement procedures—is anything matching the definition of payments to former public servants related to workforce reductions. That's a human resources or compensation matter. Not procurement.
Key Considerations
Contracting limits haven't remained static. The $400,000 and $2 million thresholds referenced in the 2009-2010 Procurement Review may have been adjusted since then, so verify current limits in the latest Treasury Board policy documents.
Trade agreement thresholds matter. CFTA sets a $100,000 baseline for services, which is why the non-competitive limit sits at that level—it's not just an internal government decision.
Call-up limits under PWGSC supply arrangements depend on risk assessment and which trade agreements apply to your specific procurement, so don't assume one size fits all.
Exceeding your contracting authority without proper approval isn't just a procedural error—it's a potential violation of the Financial Administration Act.
Related Terms
Contracting Authority, Competitive Requirements, Trade Agreement Thresholds, Treasury Board Contracting Policy
Sources
If you're researching actual contract fee limits, focus on Treasury Board policy documents and trade agreement thresholds. The term as originally defined simply doesn't match procurement terminology used anywhere in the federal system.
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