Procurement Risk Assessment (PRA)

A Procurement Risk Assessment (PRA) is a risk assessment that identifies the risks of a procurement or a proposed contract amendment, evaluates their impact and likelihood, and determines the mitigation measures and approval requirements that apply. In the federal government, Public Services and Procurement Canada (PSPC) requires its buyers to complete one.

PSPC buyers complete the PRA according to the procurement's predetermined complexity level. They include it with the approval documentation and keep it on the procurement file. The PRA is a core part of PSPC's approval and governance process, as set out in the approval processes guidance on CanadaBuys.

Where the PRA fits in procurement planning

The PRA is performed during procurement planning and must be completed before the procurement plan. Doing it first lets the buyer identify risks and develop mitigation strategies for medium- and high-risk items before the plan is finalized. The procurement plan guidance sets out this sequence.

The PRA works alongside the complexity assessment. The complexity and procurement risk assessment page covers both steps, and the complexity level determines which kind of PRA the buyer completes.

How the PRA sets approval levels and contracting limits

PSPC's contracting limits depend on both the complexity assessment and the PRA. The PRA identifies the risks specific to a procurement or to a proposed amendment, and it helps determine the level of approval needed to enter into or amend a contract. The contracting limits guidance describes this link.

Treasury Board submissions follow the same logic. For complexity levels 1 to 3, PSPC requires a PRA and consultation with the Risk Management and Acquisition Services function. For complexity levels 4 and 5, it requires a custom risk assessment developed with that function, as set out in the Treasury Board submission guidance.

Amendments can trigger the process again. PSPC's contract planning and advance approval guidance notes that another PRA at the appropriate complexity level may be needed before approval documentation is resubmitted for an amendment or related contracting action.

PRA compared with the Project Complexity and Risk Assessment

The PRA is related to, but distinct from, the Project Complexity and Risk Assessment (PCRA) used by the Treasury Board Secretariat. The PCRA assesses broader project complexity and risk, including procurement-related risks. The PSPC PRA is used specifically for procurement approval, contracting authority and procurement governance. The Secretariat's guide to the project complexity and risk assessment tool explains the PCRA.

Similar tools in other federal organizations

Other organizations use their own risk assessment tools, reported by the Office of the Procurement Ombudsman:

• Shared Services Canada: procurement officers complete a Procurement Strategy and Risk Assessment (PSRA) for planned procurements. It records process risks, their probability and impact, mitigation strategies and key decisions for management review and approval. See the 2023 procurement practice review.
• Immigration, Refugees and Citizenship Canada: a Procurement Risk Assessment Tool is used with the Contract Planning and Advance Approval process. The risk rating determines the approval level, and high-risk procurements go to the Procurement and Contracting Oversight Committee. See the 2021 procurement practice review.
• Canada Border Services Agency: a Procurement Planning and Risk Assessment (PPRA) form replaced its Contract Planning and Advance Approval form. It sits alongside procurement-checklist and compliance-monitoring processes. See the 2025 follow-up review.

What the PRA means for suppliers

Suppliers do not complete the PRA. Buyers complete it and keep it on the procurement file. Its effect still reaches bidders, because the assessment shapes how a procurement is planned and who must approve the contract. A procurement with higher risk or complexity can involve a higher level of approval, and the same can apply to a later amendment.

Bid teams can use this to read a procurement more closely. Complex requirements, large contract values and planned amendments all feed into the risk and approval steps behind the solicitation. Clear, well-supported proposals that address delivery risks directly fit the way Canadian buyers already assess risk.