Procurement Policy
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Procurement Policy
Version Number: 3.5
Version Date: January 14, 2016
Table of Contents
- Effective date
- Application
- Related policy instruments
- Introduction
- Objective and outcomes
- Requirements
- Responsibilities and accountabilities
- Assessment and review
- References
- Enquiries
- Appendix A – Trade Agreements and Financial Thresholds
1. Effective date
This policy was approved by the Board of Management, Decision # 2012/2013-23, December 12, 2012.
2. Application
This policy applies to all employees of the Canada Revenue Agency ("CRA" or "the Agency").
The Code of Ethics and Conduct highlights for all CRA employees the expected standard of conduct and the required adherence to CRA policy instruments. Compliance with CRA corporate policies is mandatory.
3. Related Policy Instruments
(also see References)
This policy flows from the CRA Policy Framework for the Management of Assets and Acquired Services.
This policy is supplemented by the following directives and procedures:
- Acquisition Card Directive
- Contracts Directive
- Directive on Alternative Dispute Resolution (ADR) for Procurement Contracts
- Directive on Contracting with Former Public Servants
- Limitation of Contractor Liability Directive
- Procurement and Corporate Social Responsibility (CSR) Directive
- Procurement Compliance Review Directive
- Procurement Planning and Administration Procedures
4. Introduction
Section 61 of the Canada Revenue Agency Act provides the Agency, within the limitations specified, with the authority to enter into contracts, agreements or other arrangements with governments, public or private organizations and agencies or any person in the name of Her Majesty in right of Canada or in its own name. Further, under Subsection 30(1) of the CRA Act, the CRA has authority over all matters relating to general administrative policy in the Agency, which would include the Agency's policies in respect of procurement and contracting.
The Procurement Policy provides direction on the guiding principles and objectives of Agency procurement, as well as the management and reporting obligations related to it.
5. Objective and outcomes
5.1 Objective: To ensure that the Agency's procurement regime is responsive, efficient, and cost-effective and that it meets the operational and management needs of the CRA.
5.2 Outcomes: The CRA's procurement processes and activities will be designed and conducted with due regard for the Agency's operational requirements, for efficiency and economy, and in accordance with both the law and the principles and obligations set out in this policy.
6. Requirements
Procurement Authority
6.1 The Canada Revenue Agency Act provides the Agency with full procurement authority for goods, services and construction (see Exceptions / Restrictions below).
6.2 Procurement authority is delegated by the Commissioner, subject to certain conditions and limitations, by means of the Delegation of Procurement Authorities instrument.
Principles
6.3 The CRA's procurement regime shall be designed, operated and maintained based on the following key principles:
6.3.1 The CRA shall ensure a fair, open, transparent and competition-based procurement regime; one that provides for some limited exceptions to the competitive bidding process where circumstances warrant such an approach (refer to the Contracts Directive).
6.3.2 Within the broad context of the CRA's Integrity Framework, employees who are authorized to exercise delegated procurement authority shall work to achieve a value-for-money outcome while satisfying the Agency's materiel requirements and operational needs. Furthermore, to the extent possible, the CRA will use its procurement processes to help ensure Agency contracts are only awarded to companies that respect the law and act with integrity.
6.3.3 The CRA procurement regime will be supported by a robust contract quality assurance program (see Procurement Compliance Review Directive).
6.3.4 Risk shall be a fundamental consideration when planning procurement activities. As well, any security issues associated with a given requirement shall be assessed and appropriately dealt with in the context of the procurement process and CRA's security policies.
6.3.5 CRA procurement transactions must comply with the requirements of applicable trade and land claim agreements as well as any other federal legislation, regulations and/or policies that may apply and must also withstand the test of public scrutiny in matters of prudence and probity.
6.3.6 Contracts with former public servants will only be entered into when it is in the public interest and fairness, value and transparency can be assured (refer to the Directive on Contracting with Former Public Servants).
6.3.7 Indemnification and limitation of liability issues shall be addressed in contracts and contractual arrangements as applicable, in accordance with the direction set out in the Limitation of Contractor Liability Directive.
6.3.8 Where appropriate, and to the extent possible, CRA procurements shall be used to leverage support for and help in furthering the CRA's objectives relating to the environment and sustainable development.
6.3.9 The CRA shall maximize the use its acquisition card program to achieve administrative efficiencies and cost-savings based on the direction set out in the Acquisition Card Directive.
6.3.10 In accordance with the Procurement and Corporate Social Responsibility (CSR) Directive, the CRA shall use Agency procurement to reflect its commitment to CSR.
6.3.11 To minimize time-consuming and costly reference to administrative tribunals or the courts, the CRA shall offer a structured alternative dispute resolution (ADR) process, as outlined in the Directive on ADR for Procurement Contracts.
6.3.12 The Corporate Administrative System (CAS), as the CRA's financial system of record, shall be used for the purpose of recording all applicable procurement-related transactions and facilitating the procurement reporting obligations of the CRA.
Exceptions / Restrictions
6.4 Sections 66 and 67 of the Canada Revenue Agency Act restrict the Agency's procurement authority as it relates to contracts for legal services. Contracts for legal services may only be entered into by or with the approval of the Minister of Justice.
6.5 With the exception of emergency contracts, procurement authority for construction requirements has not been delegated by the Commissioner to any positions within the CRA. Construction and other requirements that may have an impact on or touch any of the base building components (e.g. heating, ventilation, air conditioning, electricity, plumbing and mechanical) will be handled by Public Works and Government Services Canada (PWGSC).
7. Responsibilities and accountabilities
7.1 Commissioner and Chief Executive Officer is responsible for executive oversight for the functioning of the CRA's procurement regime and approving the delegation of procurement authority for Agency positions.
7.2 Chief Financial Officer and Assistant Commissioner, Finance and Administration Branch (FAB), exercises management oversight for the Agency's procurement function, participating in procurement reviews, the approval of contracts and the management of risk, and reports to the Commissioner of Revenue and the Board of Management on the overall effectiveness of the procurement system.
7.2.1 Director General, Administration Directorate (DG, AD) is the functional authority for procurement in the Agency with responsibility for the strategies, plans and management approaches needed to satisfy the Agency's procurement requirements as well as the management, administration and reporting obligations involved.
7.2.2 Director General, Security and Internal Affairs Directorate (DG, SIAD) is responsible for supporting the Agency's procurement process through the provision of advice and security screening services for procurement contracts having a security element.
7.2.3 Director General, Financial Administration Directorate (DG, FAD) is responsible for supporting the Agency's procurement process through the provision of relevant financial services, advice and functional direction.
7.3 Assistant Commissioners of branches and regions are responsible for supporting the efficient functioning of the Agency's procurement regime by ensuring careful management and prioritization of their procurement needs, the timely identification of procurement requirements and the provision of related funding, effective oversight for the exercise of procurement delegation within their organization (where applicable), and their organization's compliance with the requirements of this policy and its supporting instruments.
8. Assessment and review
The Finance and Administration Branch is responsible for the scheduled review of this policy every five years, as well as for any ad hoc reviews deemed necessary.
To support the review process, FAB is responsible for identifying and undertaking any monitoring and assessment activities that will help it determine whether the policy objective remains relevant and achievable and whether the policy requirements are being adhered to.
9. References
This policy must be administered and implemented in conjunction with the other references listed below:
Legislation
- Canada Revenue Agency (CRA) Act
Trade Agreements
See Appendix A – Trade Agreements and Financial Thresholds
CRA policy instruments
- Acquisition Card Directive
- CRA Code of Ethics and Conduct
- Contracts Directive
- Delegation of Procurement Authorities Instrument
- Directive on Alternative Dispute Resolution (ADR) for Procurement Contracts
- Directive on Contracting with Former Public Servants
- Limitation of Contractor Liability Directive
- Policy Framework for CRA Security and Emergency Management Programs
- Policy Framework for the Management of Assets and Acquired Services
- Procurement and Corporate Social Responsibility (CSR) Directive
- Procurement Compliance Review Directive
- Procurement Planning and Administration Procedures
10. Enquiries
Questions about this policy should be directed to:
Director, Contracting Division
Administration Directorate
Canada Revenue Agency
- Date modified:
- 2016-02-04