Contracting Policy Notice 2024-2: Changes to emergency contracting limits

Overview

The government’s emergency contract limits have not been updated, in some cases, for over 35 years. In order to restore the government’s purchasing power when responding to pressing emergencies, the Treasury Board’s Directive on the Management of Procurement was amended to account for inflation by increasing departmental emergency contracting limits (Appendix A.3). These amendments include an increase in:

• departmental emergency contracting limits from $1 million to $3 million; and
• Public Services and Procurement Canada and Shared Services Canada’s emergency contracting limits from $15 million to $25 million.

Emergency contracting is to be used if a pressing emergency exists where a delay in approvals would be injurious to the public interest. Such an emergency may involve but is not limited to:

• an actual or imminent life-threatening situation;
• a disaster that endangers the quality of life or safety of Canadians;
• a disaster that results in the loss of life;
• a disaster that results in significant loss or damage to Crown property.

Requirements for invoking emergency contracting are outlined in Appendix A, section A.3 (“Emergency contracting limits”) of the directive. Note that there is a critical link between the use of the pressing emergency exception to solicit bids under the Government Contracts Regulations (6(a)) and emergency contracting. For more information on exceptions to competition, refer to Contracting Policy Notice 2007-4 Non-Competitive Contracting.

Departments are expected to use emergency contracting as a temporary mechanism to immediately respond to an emergency and to return to fair, open and transparent contracting as soon as possible, particularly if the emergency results in the requirement for a longer-term response.

For information on longer-term emergencies, refer to Contracting Policy Notice 2023-4: Exceptional Contracting Limit for Sustained Emergencies of National Importance for Public Services and Procurement Canada and Shared Services Canada.

Use of emergency contracting must be reported to the Treasury Board of Canada Secretariat within 60 days of the authorization or beginning of the work in accordance with the directive’s Appendix C: Mandatory Procedures for the Disclosure of Contracts and Reporting, section C.5.

Departments are reminded of their obligations to ensure that decisions related to procurement, including emergency contracting, are fully justified and documented. They must keep and maintain accurate and complete procurement documentation in the contract file.

As with any procurement, departments are required to ensure that proper controls, oversight and processes are in place for emergency contracting. Departments are advised to update their departmental procurement management framework to reflect these changes.

Enquiries

Questions about this policy notice should be directed to Public Enquiries.

Samantha Tattersall
Assistant Comptroller General, Acquired Services and Assets Sector
Treasury Board of Canada Secretariat