Emergency Contracts

When disaster strikes or an urgent national security situation unfolds, the usual procurement timelines simply won't cut it. Emergency contracts allow federal departments to bypass standard competitive processes and get what they need, fast—but they come with strict limits and reporting requirements that you need to understand before invoking them.

How It Works

The Treasury Board Contracting Policy and Government Contracts Regulations create specific thresholds for emergency procurement. Most federal departments can enter into emergency contracts up to $1 million (including all amendments and applicable taxes). PSPC gets a higher ceiling: $15 million. These limits exist in Part III of Appendix C—Contracts Directive of the Treasury Board Contracting Policy, designed to balance speed with accountability.

Here's the thing: you can't just declare something an emergency because your planning fell short. The Government of Canada Supply Manual outlines additional considerations that procurement officers must follow when managing emergency requirements. According to the Office of the Procurement Ombud, legitimate emergencies typically involve situations where a Minister invokes National Security or Extreme Urgency provisions under trade agreements, where normal competitive procurement procedures genuinely cannot meet the requirement, and where the departmental Minister has provided approval.

Once you've used this authority, the clock starts ticking. You must submit an emergency contracting report to Treasury Board Secretariat within 60 days of authorization or the beginning of work—whichever comes first. This isn't a suggestion. The reporting requirement ensures that emergency provisions aren't abused and that Parliament maintains oversight of these exceptional spending decisions.

Key Considerations

• Your emergency isn't always an emergency. Poor planning, budget delays, or someone's retirement don't qualify. The requirement must genuinely threaten public health, safety, security, or property—or involve circumstances truly beyond your control.

• The $1 million threshold includes everything. Amendments, extensions, taxes—it all counts. If you think you might exceed this limit, involve PSPC early or risk compliance issues down the road.

• Documentation matters more, not less. Because you're skipping competitive processes, you need to document your justification thoroughly. Why was this an emergency? Why couldn't you use advance contract award notices? What alternatives did you consider? Auditors and the Procurement Ombud will ask these questions later.

• Trade agreement obligations don't disappear. While emergency provisions exist in agreements like CUSMA and CETA, you still need to demonstrate that the emergency exception legitimately applies. Using emergency authority inappropriately can trigger trade challenges.

Related Terms

Non-Competitive Contracts, Sole Source Procurement, Limited Tendering, National Security Exception

Sources

• Government of Canada Supply Manual - Official federal procurement policy and procedures

• Emergency Procurement - Office of the Procurement Ombud - Analysis of emergency contracting provisions and considerations

• Emergency Procurement Report (PDF) - Detailed review of emergency contract limits and requirements

Emergency contracting authority is a necessary tool, but it's not a shortcut for poor planning. Use it when genuinely needed, document everything, and report on time.