Corporate Acquisition Cards

Corporate acquisition cards are charge or credit cards issued to authorized government employees for procuring and paying for approved goods and services on official government business. In Canadian federal terminology the established forms are "acquisition cards" and "government acquisition cards (GACs)," and those are the terms you will see in departmental policies and audits.

Departments use acquisition cards to simplify the purchase and payment of low-value goods and services while keeping financial controls in place. The card is a payment method. It does not replace the contracting policies, legislation and trade agreements that govern the underlying purchase, as described in a federal departmental audit of acquisition cards.

How the Government of Canada defines an acquisition card

Public Services and Procurement Canada's directive on acquisition card purchases defines an acquisition card as a charge card issued under a contract between card issuers and the Government of Canada. The card is for procuring and paying for goods and services that are authorized official government business transactions.

The directive applies to government departments and agencies that have signed the relevant memorandum of understanding on the Ineligibility and Suspension Policy and its integrity provisions. It covers purchases made with acquisition cards regardless of monetary amount.

What acquisition cards are used for, and what is excluded

Treasury Board guidance strongly encourages acquisition card use when a purchase is within delegated transaction authority and when using the card is efficient and economical. The Treasury Board guidance recommends cards for day-to-day maintenance, repair and operational goods and services.

The same guidance excludes or limits card use for several categories:

• Large-dollar purchases
• Complex transactions
• Fleet operating expenses
• Travel
• Capital assets

Transaction limits set by individual departments

Dollar thresholds are set at the department or agency level, so they differ across the federal government. Two examples show the range:

• The Canada Border Services Agency issues cards for authorized, business-related, low-dollar purchases and states a general limit of under $9,900, according to its audit material.
• Public Safety Canada's acquisition card policy covers approved purchases below $10,000 per transaction. It also covers contracts of $10,000 or more, including call-ups against a PSPC standing offer, when the acquisition card is identified as the preferred payment method.

Rules that still apply when a card is used

Acquisition card purchases must comply with contracting policies and with the financial authorities under the Financial Administration Act. They also remain subject to applicable legislation, regulations, trade agreements and comprehensive land-claim agreements.

Accessibility requirements apply as well. CanadaBuys states that they cover procurements made with an acquisition card on behalf of the Government of Canada. Integrity requirements under the PSPC directive also apply to these purchases.

What it means for a supplier bidding on Canadian public contracts

If a solicitation, standing offer, contract or call-up names the acquisition card as the payment method, plan to accept card payment. Using a card does not remove normal procurement, contracting or trade-agreement requirements, so deliver to the terms of the solicitation or contract as you would for any other payment method.

Expect to provide an invoice or receipt and the information the department's payment process requires. Cardholders reconcile their statements against supporting documentation as an internal control, so clear and accurate paperwork helps the buyer close out the purchase. Accessibility and other mandatory requirements still apply when payment is made by card.

When you read bid documents, look for the payment clause and for any department-specific limits. Thresholds such as those at CBSA and Public Safety Canada show that card eligibility depends on the buying organization's own policy.