Monitoring and Oversight

In Canadian public procurement, monitoring and oversight describes two linked sets of activity. Monitoring means observing and documenting performance, deliverables, transactions and compliance. Oversight means the governance, review and control activities that make sure procurement rules, contract obligations and approved direction are followed.

Both activities run through the life of a purchase, from the planning and solicitation stages to contract administration and payment. Departments, central agencies and independent bodies each play a part, and suppliers deal with the results of this work whenever a deliverable is verified, an invoice is checked or a bid process is observed.

Monitoring performance after contract award

The Treasury Board Secretariat says that after award, responsible officials must monitor and document service delivery, verify compliance with contract terms and monitor deliverables. They must also check invoices against the work performed before approving payment. The guidance is set out in the Treasury Board procurement guidance.

The Canada Revenue Agency uses the term contract administration for the same ground. It defines it as monitoring performance, verifying deliverables, managing amendments and ensuring compliance with contract terms and applicable legislation. The CRA internal audit of contract administration sets out this definition.

Monitoring also covers transactions. An audit of Canadian Heritage procurement notes that procurement transactions and financial coding are monitored monthly, as described in its procurement and contracting operations audit.

Oversight mechanisms: reviews, evaluations and audits

Treasury Board guidance states that Government of Canada oversight mechanisms include reviews, evaluations and risk-based audits. Within departments, oversight often takes the form of challenge functions.

• The Office of the Procurement Ombudsman describes procurement challenge and oversight as part of the management controls that ensure sound management of government procurement. It notes that departments commonly use senior procurement review committees or boards for review and monitoring. See the Procurement Practice Review.
• Correctional Service Canada identifies contract review boards as formal governance and challenge mechanisms for contracts above a budget manager's contracting delegation. It pairs them with monitoring and reporting, which communicate and address monitoring results. See the CSC procurement and contracting audit.
• The Canadian Heritage audit states that formal challenge and oversight may be performed by a quality-assurance review team.

Fairness monitoring at Public Services and Procurement Canada

One formal oversight tool is the PSPC Fairness Monitoring Program. It provides independent assurance that departmental procurement activities are fair, open and transparent.

Fairness monitors are independent third parties. They observe all or part of a departmental procurement activity and report their observations, impartial opinions and professional attestations on fairness, openness and transparency. The program is described on the PSPC fairness monitoring page.

What monitoring and oversight mean for a supplier

For a supplier, monitoring shows up in contract delivery. Officials verify deliverables against contract terms and check each invoice against the work performed before payment is approved. Deliverables and invoices that match the contract and can be documented are the ones that move through this review.

Oversight shapes how a department handles the contract itself. Contracts above a budget manager's delegation can go to a contract review board, and a fairness monitor may observe part of a procurement process. Suppliers should expect these checks to be built into the process and plan their bid and delivery documentation accordingly.