Directive on awarding of contracts, subcontracts and real property transactions below $10,000

1. Effective date

The directive takes effect on November 27, 2015.

2. Application

This directive applies to all government departments and agencies that have a signed Memorandum of Understanding (MOU) to implement the Ineligibility and Suspension Policy and the Integrity Provisions.

3. Context

To ensure operational requirements continue to be met, it will be necessary to exempt certain transactions from the application of the Integrity Regime and to exclude different classes of transactions from the application of the Ineligibility and Suspension Policy.

4. Directive statement

4.1 Objective

All contracts, subcontracts and real property transactions below $10,000 are excluded from the application of the Integrity Regime. Procurement and real property authorities are no longer required to perform an integrity verification for any contracts or real property transactions below this threshold. Suppliers are also no longer required to perform an integrity verification for subcontracts below $10,000.

5. Definitions

5.1 Contracts and real property transactions

This directive applies to supply contracts, construction contracts, real property contracts and transactions, service contracts, and subcontracts below $10,000.

5.2 Contract Value

The amount of the hard commitment recorded in the departmental or supplier's financial system at the time of contract award. The contract value must be shown in Canadian currency and include all applicable taxes. For a multi-year contract it must be the total amount of the contract for all years.

6. Expected results

This risk-based approach to exclude these low risk, low dollar value transactions will reduce administrative burden while improving the ability to monitor compliance by targeting higher risk, higher value contracts.

7. Requirements

The Ineligibility and Suspension Policy and Integrity Provisions are not required to be applied to contracts, subcontracts and real property transactions below $10,000.

8. Inquiries

If you have questions related to this Directive, please contact the Integrity Regime Team:

Toll free:

1-844-705-2084

Email:

pwgsc.o.integrity-tpsgc.o.integrite@pwgsc-tpsgc.gc.ca

From: Public Services and Procurement Canada