Extreme urgency provision

When standard procurement timelines would leave your department unable to respond to an unforeseeable crisis, the extreme urgency provision in Canada's trade agreements gives you a legal off-ramp from competitive tendering. This isn't about convenience or poor planning—it's a narrow exception that lets contracting authorities act immediately when events beyond their control demand it.

How It Works

The provision appears across multiple trade agreements Canada has signed. Article 13.9 of the United States, Mexico, and Canada Agreement (USMCA) allows limited tendering "in so far as is strictly necessary if, for reasons of extreme urgency brought about by events unforeseeable by the procuring entity, the goods or services could not be obtained in time by means of open tendering or selective tendering." You'll find parallel language in Article 513 of the Canadian Free Trade Agreement and Article XIII of the WTO Agreement on Government Procurement.

Here's the thing: invoking this provision requires ministerial involvement and creates significant reporting obligations. According to guidance from the Office of the Procurement Ombudsman, when the Minister invokes National Security or Extreme Urgency provisions, your department gains access to exceptional delegations. But there are hard limits. Emergency contracts are capped at $1 million (including amendments and taxes) for any federal department, and $15 million when the Minister of Public Services and Procurement Canada exercises authority directly.

The administrative burden doesn't end with contract signing. Your department must submit an emergency contracting report to Treasury Board Secretariat within 60 calendar days. This isn't optional—it's part of the accountability framework that prevents abuse of these exceptions. The Supply Manual and Treasury Board Contracting Policy Section 10.2.2 provide the procedural framework, though the extreme urgency provision itself lives in the trade agreements rather than domestic policy documents.

Key Considerations

• Unforeseeability is the critical test. You can't claim extreme urgency for situations your department should have anticipated. Poor planning or letting an existing contract lapse doesn't qualify, no matter how urgent your need feels right now.

• The time element must be genuine. You need to demonstrate that competitive processes—even expedited ones—would have made it impossible to obtain the goods or services when needed. If you could have run a shortened tender, you probably should have.

• Documentation matters. A lot. You'll need to justify the ministerial invocation and prove the connection between the unforeseeable event and your procurement need. Treasury Board Secretariat examines these reports, and the Procurement Ombudsman can review them during investigations.

• Trade agreement compliance isn't optional. These provisions exist to balance emergency response with Canada's international obligations. Misuse can expose the government to trade disputes or supplier challenges under CETA, USMCA, or other agreements.

Related Terms

Emergency contracting limits, Limited tendering, Non-competitive procurement

Sources

• Emergency procurement - Office of the Procurement Ombudsman

• USMCA Chapter 13 – Government Procurement

• Government of Canada Supply Manual

In practice, most federal departments will go their entire fiscal year without needing this provision. When you do need it, make sure you can clearly articulate both the unforeseeable event and why normal procurement timelines—even compressed ones—would have failed to meet the need.