Commissioner's directive 350: Contracting and materiel management

Financial Directive

1. The National Comptroller will ensure that:
   1. materiel management activities are appropriately monitored and respect the mandatory requirements specified in central agency and CSC policy framework documents
   2. policies, procedures and controls are in place to support employees in their contracting and materiel management responsibilities
   3. corrective actions are taken as required.
2. The Director, Contracting and Materiel Services, is the Departmental Functional Authority for all matters pertaining to contracting, asset, and acquisition card management. The Director will:
   1. develop and review national policies and procedures
   2. provide guidance and oversight to regional Contracting and Materiel Services
   3. promote staff compliance with these policies and procedures
   4. manage a national governance structure made up of regional and site Review Committees to provide the necessary oversight of these functions
   5. oversee completion of the mandatory training of relevant staff as identified in the Treasury Board Directive on the Administration of Required Training
   6. work closely with Internal Audit to periodically examine CSC activities and report to the Chief Financial Officer and other Senior Management members on findings.
3. Employees will:
   1. ensure awareness of CSC Materiel Management policies and procedures which impact on their duties
   2. ensure appropriate procurement methods are used, including appropriate use of acquisition cards
   3. ensure proper acquisition, management and disposal of assets in accordance with policies
   4. protect and safeguard asset investments.

4. CSC’s framework for contracting and materiel management is outlined in:
   1. Financial Directive 350-1 – Asset Management
   2. Financial Directive 350-3 – Contracting
   3. Financial Directive 350-4 – Acquisition Cards.
5. This directive is an overarching document for materiel management, excluding the financial control of capital assets which is governed by the Financial Directive FOps 2014-333 – Accounting for Capital Assets.
6. This directive is an overarching document for materiel management, excluding fleet management which is governed by the Internal Services Directive 335 – Fleet Management.
7. CORCAN will follow the policies and procedures outlined in this directive.
8. CSC will conduct asset management and contracting activities in a manner that:
   1. respects ministerial accountability
   2. embodies sound contracting, asset management, and overall finance practices
   3. demonstrates due diligence
   4. generates long-term economic advantage to the Government
   5. protects and preserves Canadian heritage and the environment
   6. is fair, transparent, and financially responsible
   7. is compliant with relevant legislations and policies.
9. CSC policies and procedures are applicable to:
   1. all assets valued at $1,000 or more in acquisition value and attractive items, as defined in Annex F of Financial Directive 350-1 – Asset Management
   2. all inventories managed and maintained by CSC
   3. all procurement and contracting activities within the delegated authority of CSC as well as non-public funds acquisitions conducted by CSC on behalf of inmates
   4. all procurement and contracting activities with CORCAN
   5. acquisition cards.
10. Individuals who have been delegated authority to carry out asset management, contracting, and acquisition card usage on behalf of CSC shall undertake those responsibilities in accordance with sound life-cycle asset management and contracting principles as defined below:
    1. Requirements Definition Phase
       1. individuals who have been delegated contracting and asset management authority by CSC for their own areas of responsibility must ensure that services and assets are acquired solely to support CSC’s needs and mandate
       2. the total cost of acquisitions, from asset commissioning to disposal, and all costs associated with contracting for services are considered
    2. Acquisitions Phase
       1. individuals who have been delegated authority to procure services and assets must commit to the procedures and processes pursuant to CSC policies and all applicable legislation and directives
    3. Operation and Maintenance Phase
       1. all asset custodians (management and employees) will manage and protect assets throughout their useful life, and will ensure that accurate asset records are maintained at all times
       2. all assets are departmental and Crown holdings and at no time will personal use be considered
    4. Disposal Phase
       1. individuals who have been delegated disposal authority shall dispose of assets at the end of their useful life in accordance with the disposal processes and procedures outlined in Financial Directive 350-1 – Asset Management.
11. Cases of non-compliance will be reviewed by the appropriate governance structure and corrective measures will be recommended, as required and applicable.

12. CSC Contracting and Materiel Services employees must complete the mandatory training as identified in the Treasury Board Directive on the Administration of Required Training.
13. CSC staff who have delegated authority to carry out and/or are involved in contracting, assets and/or acquisition card management must complete the appropriate CSC mandatory training, according to the applicable directives.

Acting Assistant Commissioner,
Corporate Services,

Original Signed by:
Denis Bombardier

• ISD 335 – Fleet Management
• FD 350-1 – Asset Management
• FD 350-3 – Contracting
• FD 350-4 – Acquisition Cards
• FD FOps 2014-333 – Accounting for Capital Assets

• Surplus Crown Assets Act

• Treasury Board Directive on Acquisition Cards
• Treasury Board Policy on Government Security
• Public Services and Procurement Canada Policy on Green Procurement
• Environment and Climate Change Canada Federal Sustainable Development Strategy

Acquisition card: a charge card issued under a contract between card issuers and the Government of Canada for the purchase and the payment of goods and services that are authorized official government business transactions.

Asset: tangible or intangible things of the Government of Canada. Assets include but are not limited to: information in all forms and media, networks, systems, material, real property, financial resources, employee trust, public confidence and international reputation.

Contract: an agreement between a contracting authority and a person or firm to provide a good, perform a service, construct a work, or lease real property for appropriate consideration.

Disposal: the removal of assets from a department, whether by transfer of ownership into new hands or through recycling as scrap.

Life cycle management: the effective and efficient management of assets along the entire continuum from the identification of a requirement to the disposal and replacement of the asset acquired to meet the requirement. The phases of life cycle management include assessing requirements; analyzing options; planning acquisition; acquiring; operating, using, and maintaining; and disposing and replacing.

Materiel: all movable assets, excluding money and records, acquired by Her Majesty in right of Canada.

Materiel management: all activities necessary to acquire, hold, use and dispose of materiel, including the notion of achieving the greatest possible efficiency throughout the life cycle of materiel assets.