Record of Agreement: A Comprehensive Guide

I. Introduction

What Is Record of Agreement, and Why Does It Matter?

• Purpose:

  The Record of Agreement is a formal document outlining roles, responsibilities, and terms between parties involved in government contracts, particularly for Task Authorizations.

• Context:

  In Canadian government contracting, the Record of Agreement clarifies expectations among Public Services and Procurement Canada and suppliers during phases such as the Notice of Proposed Procurement (NPP) and when engaging vendors listed on the Permanent List of Prequalified Suppliers, ensuring fair competition and transparency under Treasury Board policies.

• Overview:

  This guide examines core elements of the Record of Agreement, its role in compliance and efficiency, and how emerging tools such as AI-driven analytics improve tracking of obligations and milestones.

II. Definition

A. Clear and Concise Definition

• What it is: The Record of Agreement is a formal document outlining roles, responsibilities, and terms between parties involved in government contracts, particularly for Task Authorizations.

• Key Terms: Includes Task Authorizations, delegation of authority, deliverables-based payments, and references to the Treasury Board of Canada Secretariat.

B. Breakdown of Key Components

• Parties Involved: Identifies contracting authorities from departments like PSPC and approved suppliers under standing offers or supply arrangements.

• Terms and Conditions: Specifies deliverables, performance metrics, payment schedules, and reporting requirements incorporated into the master Contract.

• Signatures and Approvals: Requires sign-off by authorized officials in accordance with Delegation of authority and finance officers.

C. Illustrative Examples

• Example 1: When acquiring IT support services, PSPC uses a Record of Agreement alongside a Requisition to align supplier deliverables with departmental objectives, tracking milestones in a contract management system.

• Example 2: A regional health department issues a Record of Agreement under a Standing offer (SO) to define roles for emergency equipment maintenance, ensuring rapid response times.

III. Importance

A. Practical Applications

The Record of Agreement standardizes obligations in Canadian procurement. For instance, Supplier Relationship Management (SRM) teams reference it to monitor adherence to service levels and to initiate milestone-based payments.

B. Relevant Laws, Regulations, or Policies

This document supports compliance with the Government Contracts Regulations and aligns with trade commitments under the Canadian Free Trade Agreement (CFTA) and the Agreement on Internal Trade. It also reflects directives from the Treasury Board Secretariat on contract management.

C. Implications

By clearly defining expectations, the Record of Agreement reduces risk, enhances audit readiness, and promotes cost control. Departments can achieve better value and maintain transparent supplier performance records, contributing to strategic growth.

IV. Frequently Asked Questions (FAQs)

A. Common Questions

• Q: What does Record of Agreement mean? A: It is a binding document detailing roles and terms between government departments and suppliers.

• Q: Why is it important? A: It ensures clear communication, legal compliance, and efficient oversight of contract deliverables.

• Q: Who signs the Record of Agreement? A: Authorized representatives from the department and the supplier, following delegation rules.

• Q: Is the Record of Agreement legally enforceable? A: Yes, it forms part of the contract package and can be referenced in dispute resolution.

B. Clarifications of Misconceptions

• Misconception: "The Record of Agreement is overly complex." Truth: Templates provided by PSPC simplify preparation and align with standard procurement workflows.

• Misconception: "Only large departments use this document." Truth: Small agencies and project teams also leverage it to document supplier commitments.

V. Conclusion

A. Recap

This guide underscores how the Record of Agreement enhances clarity, compliance, and performance in Canadian government contracting.

B. Encouragement

Procurement professionals should integrate Records of Agreement into their processes to strengthen accountability and achieve better outcomes.

C. Suggested Next Steps

• Review the Treasury Board Secretariat's contract management policies on canada.ca.

• Explore training on contract governance and Procurement Strategy for Indigenous Business (PSIB).

• Consult with contract advisors to tailor templates for your department's needs.