Extreme urgency provision

The extreme urgency provision is a limited-tendering ground in Canadian public procurement. It allows a buyer to award a contract without a full open competition, but only where this is strictly necessary. CanadaBuys guidance on determining a sourcing strategy sets out the ground and its limits.

Two conditions define it. The urgency must result from events the procuring entity could not foresee, and the goods or services must not be obtainable in time through open or selective tendering. The Supply Manual annexes on CanadaBuys repeat both conditions.

The two conditions a buyer must meet

The first condition is unforeseeability. The urgent need has to come from an event the buying organization could not have anticipated. A requirement that is urgent only because of late planning does not satisfy this test.

The second condition is timing. The buyer must show that an open or selective tendering process could not deliver the goods or services in time. Both conditions must be met together, and the provision applies only where it is strictly necessary. The buyer is expected to document the unforeseeable event, the urgency, and the reason ordinary procedures cannot meet the requirement.

How it differs from the pressing emergency exception

The extreme urgency provision is not the same as the pressing emergency exception under the Government Contracts Regulations. The pressing emergency exception concerns situations where delay would injure the public interest. Examples include life-threatening situations, disasters affecting safety or quality of life, loss of life, and significant damage to Crown property. PSPC describes these emergency requirements on its emergency requirements page.

The extreme urgency provision is the term used in the exceptions to competitive tendering in applicable trade agreements. In practice the two ideas work together when PSPC uses its emergency contracting authority.

Where the provision appears in federal procurement

Extreme urgency is recorded as a "Limited Tendering Reason" in federal contract-disclosure data. Published contract records show it on awards by the Department of National Defence (example record), Global Affairs Canada (example record), Parks Canada (example record) and the Public Health Agency of Canada (example record).

It also connects to Advanced Contract Award Notices. CanadaBuys guidance on the ACAN states that an ACAN may be used where unforeseeable extreme urgency means the requirement cannot be obtained in time through open or selective tendering.

Crown corporations have their own versions. The CMHC procurement policy allows emergency procurement for extreme urgency caused by unforeseen events where life, personal safety or security is in immediate peril and the goods or services cannot be obtained in time through ordinary means.

PSPC emergency contracting and the CAD 25 million limit

PSPC may issue emergency contracts or contractual arrangements when delay would injure the public interest. According to its emergency requirements guidance, the Minister of PSPC may enter into a non-competitive emergency contract or contractual arrangement on behalf of a client, including PSPC, up to CAD 25 million. That amount includes applicable taxes, fees and amendments, and it is subject to the stated conditions.

To use these emergency contracting limits, PSPC must apply the extreme urgency provision of each applicable trade agreement, or an exception to that agreement must apply. The requirement must also be one that normal contracting procedures cannot meet because of the urgency.

What it means for a supplier bidding on Canadian public contracts

A requirement under this provision may be competed through a shortened or limited process, or awarded without normal open competition. Suppliers should expect little or no advance notice. Watch the contract-disclosure data to see which departments have used the ground, and keep capability statements and pricing ready so you can respond quickly if a buyer contacts you.