Contract with Task Authorizations

A Contract with Task Authorizations, usually called a TA contract, is a method of supply for services in which all or part of the work is performed "as and when requested" under predetermined contractual conditions and an administrative process involving task authorizations. The Government of Canada describes it in the Supply Manual as a way to procure services when the work is requested in stages rather than all at once.

A task authorization (TA) is the structured process by which the authorized client, or Public Services and Procurement Canada (PSPC), authorizes a contractor to perform specific work under the existing contract. Departments use this approach when they know they need a category of service but cannot establish the precise nature, timing, or volume of the work at contract award. It differs from a conventional fixed-price contract, where the complete requirement and deliverables are set at award.

How the umbrella contract and individual tasks fit together

A TA contract works in two layers. The umbrella contract sets the scope of services, the terms and conditions, the rates, the financial limits, and the process for issuing tasks. Individual task authorizations then authorize defined work, with deliverables, schedules, and prices for that piece of work.

The client authorized to issue tasks is responsible for issuing TAs according to the process and administration set out in the contract. That process is not improvised. Both the contractor and the client follow the steps written into the contract, as described in the Supply Manual annexes.

Where TA contracts are used

TA contracts appear across federal service procurement. Treasury Board procedures for professional-services contracts apply to contracts, amendments, and task authorizations exceeding $40,000, including applicable taxes and fees, as set out in the Treasury Board procedures.

Shared Services Canada has also used the structure for cloud services. Its prequalification for Infrastructure as a Service and Native Platform as a Service stated that Canada intended to establish a Task Authorization Contract, with individual TAs issued for cloud services.

Planning and approval of a TA contract

Before a TA contract is awarded, PSPC procurement planning must address why the services suit this method of supply. It must also cover the proposed financial limits for client-issued TAs, the responsibilities of the client and PSPC, and how the contract will be monitored. These requirements are laid out in the Buyer's Portal guidance on preparing approval documents for task authorizations.

How a task authorization is administered

Before authorizing a TA, the responsible organization must confirm that the task is within the contract's scope, financial limits, period, and total liability. It must also obtain the required approvals and signatures and keep a record of authorized tasks. The Buyer's Portal guidance on managing task authorizations sets out these checks.

Contract disclosure follows the same logic. Treasury Board guidance on proactive disclosure of contracts states that the realized value of a TA contract depends on the number of TAs issued and may be lower than the amount proactively disclosed, depending on the department's operational requirements.

What a TA contract means for a supplier

Winning the umbrella contract does not necessarily guarantee that all available work, or the full stated contract value, will be ordered. Revenue arrives only as tasks are issued, so a supplier should treat the contract value as a ceiling on what can be ordered rather than a promised amount.

• Follow the contract's TA procedure exactly, including who may issue a task and how it is approved.
• Be ready to submit or negotiate task-specific information when invited, such as the proposed level of effort, deliverables, schedule, and price.
• Do not start work until a TA has been properly authorized and signed, since the client must verify scope, limits, and approvals first.
• Track the financial limits and period of each task against the contract as a whole.