Requisition Approval

Requisition approval is the approval of an internal requisition for goods or services before a department asks its procurement organization to proceed. In Government of Canada financial-management guidance, an approved requisition is one for which the requirement has been defined, the appropriate expenditure-initiation authority has been obtained, and the requisition has been submitted for procurement action. The Treasury Board Secretariat sets this out in its guidance on common financial management business processes.

A requisition is an internal request that identifies the goods or services required, the estimated cost, the financial coding, the quantity and the timing. Requisition approval is the step of securing the necessary approvals for that request. It belongs to the buyer's internal procurement and financial-control process. It is not normally an award term that suppliers see or act on.

What an approved requisition contains

The Treasury Board Secretariat guidance describes the information a requisition record can carry. It includes the required dates, the description and type of the good or service, the estimated cost, the financial coding, a requisition identifier and the quantity. The Treasury Board process guidance requires that the requirement be defined and approved by the appropriate expenditure-initiation authority, and that the requisition be approved before it is submitted for goods or services.

Where approval sits in the federal process

The same guidance lists "Submit Requisition for Goods/Services" as an activity that follows approval of the requisition. The responsibility centre manager for acquisitions is accountable for submitting the approved requisition. Asset and materiel management services may assist.

The CanadaBuys Supply Manual describes the same point from the procurement side. At requisition review, the requisition must be approved and the necessary approvals obtained before the client asks Public Works and Government Services Canada to acquire the goods or services. The guidance covers goods, services and construction.

Terms connected to requisition approval

• Requisition: the internal request to acquire goods or services.
• Expenditure initiation authority: the authority that approves the requirement and initiates the expenditure.
• Commitment control: confirmation that funds and financial coding are available before procurement proceeds.
• Requisition review and receipt: the procurement organization's review of the approved request.
• Purchase order or contract: the later instrument that creates the purchasing or contractual commitment.

A comparable defence procurement example

Other governments use a similar internal gate. A United Kingdom Ministry of Defence procurement guide states that a contract requisition is submitted for financial approval. Once it is approved, the suggested buyer is notified to progress the tender. This shows requisition approval working as an internal authorization stage in defence procurement. It is a UK process and not a Canadian rule.

What requisition approval means for a supplier

Requisition approval is an internal buyer-side prerequisite. A supplier does not approve the requisition. The supplier responds after the buyer has completed its internal approvals and issues a solicitation, request for quotation, standing-offer call-up, supply arrangement contract, purchase order or other procurement instrument.

For a bid team, a published opportunity on CanadaBuys means the buyer's requirement has already been defined and its internal approvals are in place. Suppliers who engage with departments early can help clarify a requirement, but the approval itself stays inside the buyer's organization. Treat the solicitation documents, not the requisition, as the controlling statement of what the buyer wants.