Pressing emergency

A pressing emergency is your legal justification for bypassing competitive bidding when lives are at stake or disasters threaten Canadian communities. Treasury Board Contracting Policy Notice 2007-4 defines it as an actual or imminent life-threatening situation, a disaster endangering quality of life or safety, one resulting in loss of life, or one causing significant loss or damage to Crown property. This isn't a workaround for poor planning—it's a specific exception reserved for genuine crises.

How It Works

When a pressing emergency hits, federal departments can act fast. Supply Manual Section 3.22.10 sets out the framework: departments can enter into emergency contracts up to $1 million (including amendments and all applicable taxes), while PSPC's Acquisitions Branch can go up to $15 million. The situation must genuinely preclude competitive bidding—you can't wait for a formal solicitation process when wildfire threatens a community or a pandemic demands immediate medical supplies.

Section 10.2.2 of the Treasury Board Contracting Policy reinforces that emergencies are normally unavoidable situations requiring immediate action. Here's what matters most: you need to document your justification carefully. Within 60 days of authorization or the beginning of work, you must report the emergency contract to Treasury Board Secretariat. This reporting requirement isn't bureaucratic busywork—it's accountability for using public funds without competition.

In practice, the Government encourages departments to establish standing offers for potential emergency scenarios. Pre-positioning these agreements minimizes response time and administrative costs when disaster strikes. Think of standing offers as your emergency preparedness kit for procurement—you hope you won't need them, but you'll be grateful they exist when crisis hits.

Key Considerations

• Failure to plan is not an emergency. If your department runs out of office supplies because nobody bothered to check inventory, that doesn't qualify. The Directive on the Management of Procurement makes this clear—poor planning on your part doesn't create a pressing emergency exception.

• Dollar thresholds matter. Know your limits before the emergency hits. Departments top out at $1 million; beyond that, you need PSPC involved. If PSPC is handling it and the value exceeds $15 million, additional approvals come into play.

• Documentation standards don't disappear. Even though you're skipping competitive bidding, you still need to justify the sole source award, demonstrate fair pricing where possible, and maintain proper contract files. The emergency nature explains the process deviation, not sloppy record-keeping.

• The 60-day reporting clock starts immediately. Don't wait until the emergency subsides or the contract wraps up. Treasury Board wants that report within 60 days of authorization or when work begins, whichever comes first.

Related Terms

Sole Source Contracting, Standing Offer, Limited Tendering, Non-Competitive Contracting

Sources

• Supply Manual - Section 3.22.10 Emergency Requirements

• Office of the Procurement Ombud - Emergency Procurement Knowledge Deepening

• Treasury Board Contracting Policy Section 10.2.2

Remember: this exception exists for genuine emergencies where competitive processes would cost lives or cause irreparable harm. Use it when you must, document it thoroughly, and report it promptly.