Contracting

OLICY OBJECTIVES

1. To set out responsibilities and establish standard contracting procedures to ensure procurement is conducted in a manner that enhances access, competition, fairness and results in the optimal balance of overall benefits.
2. To ensure compliance with legislation and policies related to contracting.
3. To provide clarification of responsibilities to facilitate scrutiny over the procurement process.

AUTHORITIES

4. Treasury Board Contracting Policy
   
   Financial Administration Act
   
   Government Contracts Regulations

APPLICATION

5. This directive applies to contracting activities within the delegated authority of the Correctional Service of Canada (CSC).

CONTRACT REVIEW BOARDS

Background

6. The Treasury Board Contracting Policy encourages contracting authorities to establish adequate control frameworks for due diligence and effective stewardship of public funds and to establish and maintain a formal challenge mechanism for all contractual proposals. CSC has created Contract Review Boards as the review mechanism to meet this requirement.

Structure

7. There are three Contract Review Boards: two per region (the Regional Auxiliary Contract Review Board and the Regional Contract Review Board) and one national (the National Contract Review Board).
8. The Board members will meet in person on a regular basis to review contract requests.
9. A quorum of three members is required to make decisions.
10. Decisions will be recorded and disseminated to the appropriate managers.
11. Contracting and Materiel Services staff will perform the administrative duties for their respective Contract Review Board.
12. Managers may attend a Contract Review Board meeting in person to clarify their requirements or to appeal a decision that was not favourable.

Regional Auxiliary Contract Review Board

13. The Regional Auxiliary Contract Review Board will be chaired by the Regional Manager, Contracting and Materiel Services. His/her staff will be the remaining Board members.
14. Regional Auxiliary Contract Review Board decisions can be submitted for appeal to the Regional Contract Review Board.

Regional Contract Review Board

15. The Regional Contract Review Board will be chaired by the Assistant Deputy Commissioner, Corporate Services. Members of this RCRB will include, at a minimum, the Regional Manager, Contracting and Materiel Services, and the Regional Comptroller.
16. Regional Contract Review Board decisions can be submitted for appeal to the Regional Deputy Commissioner or Assistant Commissioner, Corporate Services, for final decision.

National Contract Review Board

17. The National Contract Review Board will be chaired by the Departmental Comptroller. Members will include, at a minimum, the Director, Financial Operations, the National Manager, Contracting and Materiel Services, and a Legal Advisor. In addition to its national responsibilities, the National Contract Review Board also serves as the Regional Contract Review Board for National Headquarters, and exercises regional responsibilities accordingly.
18. The National Contract Review Board will be responsible for sensitive or high risk regional procurement issues and for those that are national in scope.
19. Unfavourable decisions of the National Contract Review Board may be appealed to the Assistant Commissioner, Corporate Services.

RESPONSIBILITIES

Contractual Proposals and Agreements

20. Procurement and Contracting departmental Financial Signing Authorities are contained in Schedule 24.
21. Contracting responsibilities and CSC authorities are contained in Annex A - National Standard Delegation Instrument and Limits.
22. CSC agreements and delegated authorities are contained in Annex B - CSC Agreements.
23. Contract proposals and agreements must be submitted with sufficient time for review and approval.

Contract Review Boards

24. All Contract Review Boards will:
    1. review and approve submissions within the applicable Board's authority (see Annex A) to ensure adherence to government contracting legislation and policies;
    2. ensure contractual proposals and agreements achieve the best value for money (see criteria outlined in Annex C - Value for Money).

Contracting and Materiel Services

25. The National Headquarters (NHQ) Contracting and Materiel Services Division will:
    1. ensure that the policies generated by central agencies are explained and communicated to the regions;
    2. create and disseminate standard contract clauses to be used by the appropriate CSC personnel when entering into contractual agreements with suppliers;
    3. collect and provide all contract data required to meet CSC and central agency reporting requirements; and
    4. ensure the ongoing application of contract monitoring measures and initiatives to enhance probity and use of good contracting practices.
26. The Regional Headquarters (RHQ) Contracting and Materiel Services will:
    1. ensure that an arms-length relationship exists between the manager/project authority and the supplier, except where explicitly delegated;
    2. ensure that the policies generated by central agencies are implemented;
    3. ensure the adherence to CSC practices, and the use of standard contracts and clauses when entering into contractual agreements with suppliers;
    4. ensure the ongoing application of contract monitoring measures and initiatives to enhance probity and use of good contracting practices; and
    5. provide regional subject matter expertise for the community and liaise with NHQ personnel for all matters dealing with CSC Contracting and Materiel Services functions.

Manager or Project/Technical Authority

27. The manager, on the advice of Contracting and Materiel Services, will ensure:
    1. the requirements are clearly identified, as per Annex D - CSC Checklist for Goods and Service Contracts;
    2. the criteria for contractor selection have been documented prior to the publication of the tender documentation;
    3. the supplier proposals are evaluated using the criteria set out in the tender documentation;
    4. the final evaluation results are documented;
    5. a cost-effectiveness analysis (CEA) is provided, as requested by the Regional Contract Review Board members (see Annex E - Cost-Effectiveness Analyses for instructions on completing a CEA);
    6. the work provided for goods, services or construction contracts is evaluated and meets the stated requirements;
    7. the contractor(s) manage their contracts and monitor the work against such issues as:
       1. contract terms and conditions,
       2. statement of work and specifications,
       3. contract timelines, and
       4. authorization of payment of invoices as per section 34 of the Financial Administration Act.
28. The project authority must evaluate the completed work against the service contract using the Contract/Contractor Evaluation form (CSC/SCC 0996). For guidelines on completing this form, see Annex F - Contract/Contractor Evaluation Guidelines.

GREEN PROCUREMENT

29. Budget managers and technical and project authorities will, when operationally feasible, incorporate green procurement decision-making criteria into the value for money review of the procurement of goods or services. (Treasury Board Contracting Policy on Green Procurement)
30. At a minimum, the procurement request will include consideration of EcoLogo or Energy Star certified product options.

SECURITY IN CONTRACTS

Administrative Process

31. The completion of the Security Requirements Checklist (SRCL) (TBS/SCT 350-103) is mandatory for all CSC contracts when the project authority has identified a security requirement (Part 4) on the Request for Contract/Contract Amendment/Extension (CSC/SCC 0286). This process must be completed prior to presenting the contractual documentation to the Contract Review Board.

National Headquarters

32. The CSC project authority will complete and forward the SRCL along with the contractual documentation (request for proposal, statement of work, etc.) to NHQ Departmental Security Division, to the attention of Contract Security.

Regions

33. All contract requests originating from a region must be forwarded, with all the appropriate completed documentation, directly to the Regional Administrator, Security.
34. NHQ or RHQ Security will analyze the SRCL submission and interact directly with the CSC project authority should additional clarification be required.
35. Once the analysis is complete, the NHQ or RHQ Departmental Security Division will sign as the Organization Security Authority on the SRCL. The original SRCL will be returned (unless otherwise directed) to the individual whose signature appears as the project authority.
36. Should information technology security requirements be identified in the SRCL, the responsible information technology security specialist at RHQ or NHQ is required to sign off on the signature page of the SRCL (in the Contracting Security Authority signature box).
37. The SRCL form is to be completed as per attached guidelines in Annex H - Security Requirement Check List Completion Guide.

NON-COMPLIANCE WITH CONTRACTING PROCESSES AND DELEGATIONS

38. All managers are responsible and accountable for ensuring compliance of procurement activities. In particular, managers are required to:
    1. respect the contract review processes that have been established at CSC;
    2. adhere to the delegated contracting authorities that have been formalized; and
    3. exercise appropriate contract management of their procurement files.
39. The attached guidelines in Annex I - Process for Non Compliance with Contracting Processes and Delegations will apply to all managers who do not comply with contracting processes and delegated authorities.
40. Regional Managers, Contracting and Materiel Services, will be responsible for identifying and keeping records of all non-compliance incidents, as well as follow-up.

CORCAN

41. CORCAN personnel must abide by the guidelines contained throughout this document.

TRAINING

42. CSC Contracting and Materiel Services employees must complete the mandatory training as identified in the Treasury Board Directive on the Administration of Required Training.
43. These employees must also be given the opportunity to receive (optional) training as part of the Professional Development and Certification Program (PDCP). Employees may become certified federal specialists in procurement and/or materiel management.
44. For further information on the PDCP, employees may contact their regional Contracting and Materiel Services staff, who are the subject matter experts in this area.
45. Contracting and Materiel Services staff will provide contract training (guidelines, process and policies) to CSC Contract Review Board and Auxiliary Contract Review Board members, administrative staff, managers and senior managers on an as and when required basis.

LEGAL SERVICES

46. Contracting and Materiel Services will request an opinion from Legal Services on contracting matters under the following circumstances:
    1. prior to changing CSC's procurement policies and practices;
    2. when a contract needs to be terminated;
    3. when standard contract terms and conditions need to be changed; and
    4. in all circumstances where CSC could be legally at risk (this includes agreements such as a Memorandum of Understanding).
47. RHQ Contracting and Materiel Services will submit their requests to obtain an opinion to Legal Services with a carbon copy to the National Manager, Contracting and Materiel Services.

TREASURY BOARD SUBMISSIONS

48. All requests for Treasury Board submissions pertaining to service contracts must be sent to the National Manager, Contracting and Materiel Services, for processing.

Assistant Commissioner,
Corporate Services

Original Signed by

Liette Dumas-Sluyter

ANNEX A : NATIONAL STANDARD DELEGATION INSTRUMENT AND LIMITS

DEPARTMENTAL CONTRACTING LIMITS

CSC NATIONAL STANDARD PROCUREMENT DELEGATIONS

For the National Standard Delegation Instrument, see Schedule 24 - Procurement and Contracting.

All purchases made within the appropriate delegations must respect the Treasury Board Contracting Policy recommendations on providing equal opportunity to suppliers whenever practical.

Budget Managers (Without CSC Contract Training)

Amounts listed include all applicable taxes.

1. Managers are authorized to process purchase orders for goods up to a total order of $10,000 by using ORACLE (i-PRO), subject to Treasury Board, PWGSC and CSC restrictions [purchases of software, software licenses and/or maintenance, upgrades and fixes, call-ups against Departmental Individual Standing Offers (DISOs) and Supply Arrangements (SAs)].
2. Managers are authorized to purchase goods using an acquisition card up to $10,000 per transaction, including all applicable charges and taxes.
3. Managers are authorized to process call-ups against a Standing Offer Agreement, for goods and/or services, by using ORACLE (i-PRO), subject to the limitations specified in the Standing Offer Agreement. This excludes DISOs and SAs, which must be sent to the Regional Auxiliary Contract Review Board for processing.
4. Managers are authorized to process purchase orders for printing up to $10,000 by using ORACLE (i-PRO).
5. Managers are authorized to process purchase orders up to $10,000 for service contracts for work such as repairs and maintenance of equipment, subject to Treasury Board, PWGSC and CSC restrictions.
6. Managers are authorized to purchase goods and services from CORCAN without any limitations using ORACLE (i-PRO).
7. Managers are authorized to amend goods contracts issued under their own delegation up to a total aggregate value (original contract plus amendments) of $10,000.
8. Managers can authorize petty cash transactions up to $200 per purchase.

Budget Managers (With CSC Contract Training Successfully Completed)

Amounts listed include all applicable taxes.

In addition to the above, budget managers having received the contract training offered by Contracting and Materiel Services are authorized to:

1. issue service contracts up to $10,000 using the CSC contract template, subject to Treasury Board, PWGSC and CSC restrictions (opinion surveys, videos, program development, software development, foreign suppliers and former public servants);
2. amend service contracts issued under their own delegation to change the name or address of the contractor or to extend the period of the contract;
3. amend service contracts issued under their own delegation up to a total aggregate value (original contract plus amendments) of $10,000.

Regional Auxiliary Contract Review Board

Note: All service contracts requiring the approval of the RACRB are to be submitted using the Request for Contract/Contract Amendment/Extension (CSC/SCC 0286). Requests for goods contracts are accompanied by a memorandum and must include a notation that funds are available as per section 32 of the Financial Administration Act (FAA).

Amounts listed include all applicable taxes.

1. Sole source service contracts less than or equal to $18,000.⁽¹⁾
2. Sole source service contracts less than or equal to $18,000 for former public servant not in receipt of a pension.
3. Tender service contracts less than or equal to $40,000.⁽¹⁾
4. Goods contracts between $10,000 and $25,000. Goods contracts excluded from the budget manager's delegations less than $25,000 (purchases of software, software licenses and/or maintenance, upgrades and fixes).
5. Travel and fee advances in any service contract.
6. Transfer of funds from fees to travel or travel to fees in any service contract.
7. Contract amendments that are administrative in nature, such as a change in the name of the firm or contract extensions in any service contract.⁽¹⁾
8. Contract amendments:
   • Service contracts, sole source: contract amendments up to a total aggregate value (original contract plus amendments) of not more than $18,000.⁽¹⁾
   • Service contracts, competitive process: contract amendments up to a total aggregate value (original contract plus amendments) of not more than $40,000.⁽¹⁾
   • Goods contracts: contract amendments of a total aggregate value (original contract plus amendments) greater than $10,000 and not more than $25,000.
9. Construction contracts [internally procured, not including Specific Service Agreement (SSA) with PWGSC]:
   • A construction contract is a contract for labour and materials to construct a product.
   • Construction contracts up to a value of $40,000 using the Construction and Maintenance Work Order (Contract) (CSC/SCC 1274-1) and the Request for Quotation (CSC/SCC 1274).
   • Amendments for construction contracts up to a total aggregate value (original contract plus amendments) of not more than $40,000 (using forms CSC/SCC 1274 and 1274-1).
10. All pay on strength (after the fact or fee for services) for goods and services of $1,000 or more must be sent to Contracting and Materiel Services, which reserves the right to submit any request to pay on strength to the approval of the Contract Review Board according to the nature of the request, with the following two exceptions:
    1. a request under $1,000 can be sent directly to Financial Operations for payment;
    2. outside hospital billing can be treated as a utility where there is no contract in place.

    All requests for payments (pay on strength) must be supported by the budget manager's written explanation of the circumstances leading to the submission of an invoice for a payment on strength (usually where no contract is in place) and an identification of the controls that will be put in place to ensure that the situation does not recur.

11. Call-ups against DISOs for goods (excluding vehicles) and/or services below the NAFTA dollar threshold.
12. Call-ups (contracts) against SAs for goods and/or services below the NAFTA dollar threshold.
13. Exercise of option years (a duly completed and signed post-contract evaluation form and request for contract form must be submitted for service contracts).

Contract Review Board

Amounts listed include all applicable taxes.

1. Sole source service contracts over $18,000.
2. Tender service contracts over $40,000.
3. All sole source service contracts with former public servants in receipt of a pension.
4. All requests for service contracts with public servants.
5. All construction contracts (internally procured, not including SSA with PWGSC) over $40,000.
6. All requests for goods over $25,000.
7. All requests for printing over $10,000 (excluding CORCAN).
8. Contract amendments that exceed the RACRB delegations.
9. All CSC agreements such as MOUs and Service Level Agreements.
10. Call-ups against DISOs for goods (excluding vehicles) and/or services above the NAFTA dollar threshold.
11. Call-ups (contracts) against SAs for goods and/or services above the NAFTA dollar threshold.

CORCAN

The preceding Departmental Contracting Limits and CSC National Standard Procurement Delegation Instrument apply to CORCAN unless specific requirements are identified in the CORCAN section set out below.

Amounts listed include all applicable taxes.

1. Goods contracts:
   • CORCAN has been provided a special contract delegation authority for purchasing goods.
     1. Goods contracts - Non-competitive
        1. Original $25,000
   • Regional Directors, the Chief Executive Officer, the Comptroller and the Director, Corporate Affairs, are authorized to approve purchases of goods for a maximum order total of $25,000 including contract amendments.
   • CORCAN is authorized to forward all requests for goods over $25,000 and all ensuing amendments directly to PWGSC without the Contract Review Board's approval.
2. Construction contracts (internally procured, not including SSA with PWGSC).

   A construction contract is defined as a contract for labour and material to construct a product.

   • Construction contracts up to a value of $40,000 using the Construction and Maintenance Work Order (Contract) (CSC/SCC 1274-1) and the Request for Quotation (CSC/SCC 1274).
   • Amendments for construction contracts up to a total aggregate value (original contract plus amendments) of not more than $40,000 (using forms CSC/SCC 1274 and 1274-1).
   • All requests for construction over $40,000 must be forwarded to Contracting and Materiel Services for the Contract Review Board's approval.
   • All requests to amend contracts for construction (internally procured, not including SSA with PWGSC) where the aggregate amendment value exceeds $40,000 must be forwarded to Contracting and Materiel Services for the Contract Review Board's approval.
3. Payments on the strength of an invoice (after the fact or fee for services) will be approved by:
   • the Regional Director, the Director, Corporate Affairs, or the Comptroller for payments on strength under $1,000; and
   • the Chief Executive Officer for payments on strength greater than or equal to $1,000.

   All requests for payments (pay on strength) must be supported by the budget manager's written explanation of the circumstances leading to the submission of an invoice for a payment on strength (usually where no contract is in place) and an identification of the controls that will be put in place to ensure that the situation does not recur.

4. Call-ups Against Standing Offer Agreements for goods, services and/or construction will be handled by CORCAN employees via ORACLE (IFMMS).

National Contract Review Board

The NHQ Contract Review Board becomes the National Contract Review Board to review items that are national in scope such as employer-employee relationships and limitation of liability in procurement contracts.

NOTES

Contract Review Board Members

Regional Auxiliary Contract Review Board - The Chair of the Board will be the Regional Manager, Contracting and Materiel Services; and at NHQ, the Chair will be the National Manager, Contracting and Materiel Services. Their staff will participate as the other Board members.

Regional Contract Review Board - The Chair of the Board in the regions will be the Assistant Deputy Commissioner, Corporate Services. Members will include at least the Regional Manager, Contracting and Materiel Services, and the Regional Comptroller.

NHQ Contract Review Board / National Contract Review Board - The board members are the same. They will both be chaired by the Departmental Comptroller. Members will include at least the Departmental Comptroller, the Director, Financial Operations, the National Manager, Contracting and Materiel Services, and a Legal Advisor.

For all review boards, a quorum of three members present is required to make decisions. Members acting in their position may attend, and possess the same authorities.

Correctional Service of Canada Agreements

CSC agreements, such as MOUs/MOAs and Service Level Agreements, are agreements with other government departments for the acquisition of goods or services. All agreements will be submitted to Contracting and Materiel Services, which will arrange for review and authorization by Legal Services, NHQ Financial Operations and NHQ Financial Management Services prior to approval by the Contract Review Board. All agreements must be submitted to the Contract Review Board with a duly completed request for contract form.

Pressing Emergency

A pressing emergency is a situation where delay in taking action would be injurious to the public interest. Emergencies are normally unforeseeable and unavoidable and require immediate action, which would preclude the solicitation of formal bids. An emergency may be an actual or imminent life-threatening situation, a disaster that endangers quality of life or has resulted in the loss of life, or one that may result in significant loss or damage to Crown property.

Managers have the responsibility to immediately contact their Regional Manager, Contracting and Materiel Services, to ensure that they take all necessary actions in emergency situations to protect life and public property. In addition, the National Manager, Contracting and Materiel Services, must send a report to the Treasury Board Secretariat within 60 days of the authorization of the work.

Note: All use of the authority to issue contracts under emergency circumstances must be discussed in advance with and reviewed by the Departmental Comptroller or the National Manager, Contracting and Materiel Services. Under exceptional circumstances (for instance, in the middle of the night), the invocation of the authority will be brought to the attention of the Departmental Comptroller or the National Manager, Contracting and Materiel Services, the following work day.

Mandatory Use of Standing Offers

Effective April 1, 2005, the use of standing offers is mandatory for certain goods and services. Contact your Procurement Officer for more information or consult the PWGSC standing offers Web site.

The delegation to budget managers to issue service contracts less than $10,000 does not include the following:

The following contracts are excluded from the delegation to budget managers since special rules apply. In all of these cases, a request for contract must therefore be sent to Contracting and Materiel Services.

• All contracts with foreign suppliers:
  • Any service contract with a vendor that does not reside in Canada (including United States vendors) requires special clauses, such as a 15% holdback applicable to the fees portion of the contract for work performed in Canada.
• All contracts for videos:
  • Under the Treasury Board policy, all contracts for video productions must be processed by PWGSC via Contracting and Materiel Services.
• All contracts for opinion surveys:
  • Under the Treasury Board policy, all contracts for surveys must be processed by PWGSC via Contracting and Materiel Services.
• All DISOs and SAs.
• All contracts with persons currently employed in the public service.
• All contracts with former public servants, whether or not they are receiving a government pension.
• All contracts involving program development (training, family violence, living skills, etc.).
• All contracts involving software development.
• All requests for an advance in fees or travel expenses.
• All requests to waive the pay on due date policy.
• All contracts with security requirements.
• All contract terminations:
  • There is a legal procedure to follow when terminating a contract in order to protect CSC from any future claims by the vendor. You must therefore inform Contracting and Materiel Services when a contract is to be terminated. They will perform the termination process.
• Employer-employee relationship:
  • Managers must ensure that an employer-employee relationship will not result when contracting for the services of individuals, in accordance with criteria established by the Canada Revenue Agency (CRA).

    To determine whether an employer-employee relationship may arise through a contract, please consult the CRA guide.

References

• Treasury Board - Contracting Policy
• Treasury Board - Contracting Policy - Appendix C - Contracting Limits
• Treasury Board - Policy Notices and TB Circulars - Contracting
• Treasury Board - Directive on Acquisition Cards
• Commissioner's Directive 350 - Materiel and Supply Management Services
• Guidelines 350-1 - Asset Management
• Financial Directive Fops 2006-5 - Commitment Control
• Financial Signing Authorities - Comptroller's Branch

(1) This requirement does not apply in cases where a budget manager has successfully completed CSC Contracting and Materiel Services training and is authorized to issue contracts up to $10,000, or amendments where the total aggregate value (original plus amendments) is less than $10,000.

ANNEX B: CORRECTIONAL SERVICE OF CANADA AGREEMENTS

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MEMORANDUM OF UNDERSTANDING (MOU)

Partnership Agreement, Interdepartmental Letter of Agreement (ILA), Service Agreement, and other cooperative arrangements for services, including:

• International/Province/City/Municipality
• Education Services
  • teachers,
  • skills training,
  • program delivery (literacy, Aboriginal programming, etc.),
  • clinical training
• Correctional Facilities/Probation
  • training,
  • IERT Protocol
• Police Services
  • cooperation arrangements,
  • security
• Health Services, Hospitals
  • Health Canada,
  • health care facilities
• Fire Services
  • fire services (equipment, personnel),
  • fire drills,
  • inspections

Definition

Written, approved, non-contractual, and non-legally binding arrangements whereby the CSC and other participants agree to cooperate in a project, program or similar undertaking. MOUs may be subject to Government Contracts Regulations where its main purpose is not the procurement of goods, services, or construction.

However, the procurement component of the MOU is still subject to Government Contracts Regulations and Treasury Board Contracting Policy.

Appropriate participants include departments of the federal, provincial and municipal governments, governments of other countries, Crown corporations or agencies.

MOUs should be used for any transfer of goods, services or real property where actual contracts may not be appropriate, as CSC cannot contract with other government departments, countries, etc. Although an MOU is non-legally binding, the government considers itself bound, as if it were under contract. Disputes are usually settled among participants or through mediation or arbitration.

Preparation Process

Drafted or developed at any level of CSC using a template prepared by CSC Legal Services or the other participant.

CSC Comptroller ensures financial authority and control. CORCAN only: CORCAN Comptroller ensures financial authority and control.

Legal Services ensures an MOU is the appropriate instrument for the type of obligation being undertaken and provides an MOU template or guidance.

CSC Legal Services Review

The draft MOU is submitted to Legal Services for review three weeks prior to CRB submission, if required.

Contract Review Board Approval

CRB approval is required for all CSC/CORCAN MOUs. Agreements must be filed in the central registry depository.

International agreements must be signed by the Commissioner. All others must be signed by the responsible Director or higher, in accordance with the CSC delegation of financial authorities.

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Glossary

Advance Contract Award Notice (ACAN) (préavis d'adjudication de contrat): An ACAN allows departments and agencies to post a notice, for no less than 15 calendar days, indicating to the supplier community that it intends to award a good, service or construction contract to a pre-identified contractor. If during the 15-calendar-day posting period no other supplier submits a statement of capabilities that meets the requirements set out in the ACAN, the competitive requirements of the government's contracting policy are considered met. Following notification to suppliers not successful in demonstrating that their statement of capabilities meets the requirements set out in the ACAN, the contract may be awarded using the Treasury Board's electronic bidding authorities.

If other potential suppliers submit statements of capabilities during the 15-calendar-day posting period that meet the requirements set out in the ACAN, the department or agency must proceed to a full tendering process on either the government's electronic tendering service or through traditional means in order to award the contract.

amount (montant): The consideration to be given by the contracting authority under the terms of the contract, whether the consideration is fixed or estimated.

architectural and engineering service contract (marché de services d'architectes et d'ingénieurs): A contract for the provision of services in respect of the planning, design, preparation or supervision of the construction, repair, renovation or restoration of a work.

award (adjudication): The notification to a bidder that a bid or proposal has been accepted.

best value (meilleure valeur): The combination of price, technical merit and quality - as determined by the contracting authority prior to the invitation to tender and set out in the invitation to tender evaluation criteria - that forms the basis of evaluation and negotiation between buyers and sellers to arrive at an acceptable basis for a purchase and sale.

common service organization (CSO) (organisation de services communs): An agency whose activities are directed mainly toward serving other departments and agencies.

competitive contract (marché concurrentiel): A contract where the process used for the solicitation of bids enhances access, competition and fairness and guarantees that a reasonable and representative number of suppliers are given an opportunity to bid by:

consultant (consultant): An individual or firm that provides either advice or a professional service. (See also professional.)

consulting and professional services (services de conseil et services professionnels): Services provided by individuals with significant training, qualifications and expertise in a professional, scientific, technical or managerial field. For example, the term "professional" has legal connotations for certain professions; for other occupations it denotes an accepted as evident degree of competence. Consulting and professional usually include: research and scientific studies such as interpretation, architectural and engineering services, planning and development, data collection, auditing and certain aspects of electronic data processing. This list is not exhaustive, and contracting authorities should interpret each situation on a case-by-case basis.

contract (marché): 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.

contract amendment (modification d'un marché): An agreed addition to, deletion from, correction or modification of a contract.

contract costs (coût d'un marché): For purposes of the Treasury Board Contracting Policy, the Government Contracts Regulations and other related instruments or documents, the costs include all elements that are included in the consideration, to be paid by the Crown to a contractor under the terms of a contract; for greater certainty, these elements include all fees and taxes that are legally levied and become payable by the contractor as a result of the performance of the contract.

contract splitting (fractionnement d'un marché): The practice of unnecessarily dividing an aggregate requirement into a number of smaller contracts, thereby avoiding controls on the duration of assignments or contract approval authorities.

contractual arrangement (accord contractuel): An agreement between a contracting authority and entity of the Crown (e.g., Crown corporations, provincial governments or municipalities) to provide a good, perform a service, construct a work or lease real property for appropriate consideration. These types of agreements are not contracts in the true sense, but are still subject to certain limits or constraints imposed by Treasury Board.

cost plus fixed fee (or a percentage of cost) (coût plus honoraires fixes): A payment arrangement whereby the contractor receives costs reasonably and properly incurred as determined by an audit, plus an agreed fixed fee (or a percentage of cost) by way of profit.

directed contract (marché prescrit): A contract awarded to a preselected contractor in circumstances where the contracting authority has justifiably set aside the requirement to solicit bids under the provision of one or more of the exceptions to competitive solicitation in section 6 of the Government Contracts Regulations and any applicable trade agreement. Contracting authorities are strongly encouraged to provide public notification of these contracts through an Advance Contract Award Notice (ACAN) using electronic bidding. If this is done and if there are no valid challenges received to the ACAN within 15 days, the directed contract is deemed to be competitive and may be awarded using the higher electronic bidding contracting authority levels.

electronic bidding(invitation électronique à  soumissionner): A method of procurement that promotes suppliers' access to, and transparency in, the procurement process and facilitates the Crown's receipt of best value, by using:

1. public notice by means of an approved electronic information service of procurement opportunities (e.g., MERX);
2. public notice by means of an electronic information service of proposed directed procurements by means of an Advance Contract Award Notice;
3. public notice in the Government Business Opportunities publication; or
4. such other procurement methods as may be approved by Treasury Board.

emergency contract (marché d'urgence): A contract that would normally require Treasury Board authority but is initiated in response to a pressing emergency in which any delay would be injurious to the public interest. Treasury Board requires a report within 60 days of the work being initiated, explaining the circumstances, type, value and whether it was impossible to seek bids.

employee takeover (prise en charge de services de l'État par des fonctionnaires): An agreement entered into by the Government of Canada with an employee takeover company, comprising the former employee or group of former employees who have left the public service and provide for the government, from the private sector, the same or a similar service that he, she or they performed while working in the public service. This policy allows the employee or employee group to establish a private-sector entity to negotiate or compete for a government service-delivery contract. This contract may include a lease or license.

employee takeover company (entreprise créée aux fins de la prise en charge): A company legally incorporated by the employee or employee group, who leave the public service and provide for the government, from the private sector, the same or a similar service that he, she or they performed while working in the public service. In this context, irrespective of whether an employee takeover company has more than one employee-owner and/or offers shares to former employees, ownership is defined in terms of control and significant influence over the operations and management structure of the corporation. This company may be the same employee association incorporated to develop proposal(s). It is possible that the employee takeover company is controlled by the former employees collectively and that it does not necessarily have a principal owner.

fair value (juste valeur):

firm (fixed) price (prix ferme ou prix fixe): A method of pricing in which the total is a fixed lump sum or an amount made up of fixed unit prices. In such cases, both parties agree on the price to be paid before the contract is awarded.

firm price contract (marché à  prix ferme): A contract specifying the total payable or one in which the total payable can be calculated by multiplying identical units of work or items delivered by a fixed unit price.

fixed time rate (taux fixe au temps): A method of pricing in which the amount payable is determined by expressing the cost of labour, overhead and profit as a fixed amount by time period.

fixed unit price (prix fixe unitaire): A method of pricing in which the total payable is calculated by multiplying the number of identical units of work or items delivered by a fixed price per unit or item.

former public office holder (ancien titulaire de charge publique):

1. A former Minister of the Crown.
2. A former parliamentary secretary.
3. A former full-time Governor-in-Council appointee, other than a former Lieutenant-Governor of a province and a former judge who received a salary under the Judges Act.
4. A former employee of a department at a level of senior manager or above, or the equivalent, for whom Treasury Board represents the government as employer.
5. Every former member of ministerial exempt staff designated by the responsible minister to be subject to this part.
6. A former full time ministerial appointee designated by the responsible minister to be subject to the Conflict of Interest and Post Employment Code for Public Office Holders.
7. Every former member of the Canadian Armed Forces at a rank of, or above, colonel or equivalent.
8. A former commissioned officer of the Royal Canadian Mounted Police.
9. The former incumbents of any other positions designated by Treasury Board.

former public servant (ancien fonctionnaire): Any former member of a department as defined in the Financial Administration Act, a former member of the Canadian Armed Forces or a former member of the Royal Canadian Mounted Police.

GETS (SEAO): Government Electronic Tendering Service (see definition of MERX).

government pension (pension de l'État): Superannuation or pension benefits payable by the government or out of a pension plan established for employees of boards, commissions and corporations specified in Schedule I to the Public Service Superannuation Act, as indexed by the Supplementary Retirement Benefits Act.

holdback (retenue): The amount withheld under the terms and conditions of a contract.

lease (bail): A contract whereby Her Majesty acquires a leasehold interest in real property situated in or outside Canada and includes a tenancy agreement and a licence in respect of real property.

MERX or GETS: The Government Electronic Tendering Service (GETS) is an online system that advertises government contracting opportunities to potential bidders. GETS is being operated by Mediagrif Interactive Technologies Inc. as MERX „¢, providing the service to the federal government under contract. Departments must use MERX for requirements subject to any of the trade agreements. Some, including CSC, are using it for other purchases as well. CSC uses MERX to advertise its delegated authority service contracts above $25 000. PWGSC also uses MERX to advertise requirements for printing services estimated at $10 000 or above, and most goods and services estimated at $25 000 or above. It advertises requirements estimated at $100 000 or above for construction and leasing. It also advertises requirements estimated at $84 000 or above for architectural and engineering consulting and services related to real property.

non-competitive contract (marché non concurrentiel): Any contract for which bids were not solicited or, if bids were solicited, the conditions of a competitive contract were not met.

operating cost (coût d'exploitation): The cost of operating, maintaining and repairing an acquisition throughout its useful life, less its estimated residual value at the time of retirement.

overhead costs (frais généraux): The indirect costs associated with operating a business that, unless otherwise stated, are assumed to be included in a multiplying factor or percentage applied to payroll costs.

payrolling (embauchage obligatoire): The practice by which firms are instructed by a government department or agency to employ specified individuals who are then assigned to provide services to that department or agency under contract.

pressing emergency (extrême urgence) - A situation where delay in taking action would be injurious to the public interest.

procurement (acquisition): The function of obtaining goods and services and carrying out construction and leasing through contractual arrangements.

professional (professionnel): See "consulting and professional services" above.

professional services (services professionnels): See "consulting and professional services" above.

proposal (proposition): A tender, bid or offer, either unsolicited or submitted in response to an invitation from a contracting authority. A proposal is usually requested when a contractor is to be chosen on the basis of the performance offered rather than on price alone. Proposals may require details such as the firm's qualifications and experience and the identification of problems and proposed solutions.

public notice (avis public): An announcement on an approved electronic information service, in one or more newspapers, or by means of some other accepted media.

resource cost (coût de ressources): The indirect cost incurred by a requisitioning department and/or the common service agency.

standing offer (offre à  commandes): A standing offer is not a contract but an administrative means to provide for the supply of goods or services at prearranged prices with set terms and conditions, for specific periods of time on an as requested basis. No obligation exists until a call-up (order) is placed with the supplier. Each call-up is a separate contract between the Crown and the supplier. When a call-up is made against a standing offer, there are no negotiations and acceptance by the Crown of the supplier's offer is unconditional. Standing offers are categorized by geographic range and customer users. Standing offers for use across Canada are termed "national". Those restricted for use within a geographic region are termed "regional". Standing offers intended for the use of several customers are termed "master". Those restricted to one customer are termed "individual".
At present, there are five types of standing offers:

• A National Master Standing Offer (NMSO) is for the use of many departments or agencies throughout Canada. NMSOs are arranged by PWGSC without any requisitions from customer departments or agencies.
  
• A Regional Master Standing Offer (RMSO) is for the use of many departments or agencies within a specific geographic area. RMSOs are arranged by PWGSC without any requisitions from customer departments or agencies.
  
• A National Individual Standing Offer (NISO) is for the use of a specific department or agency throughout Canada. NISOs are arranged by PWGSC on receipt of a funded requisition.
  
• A Regional Individual Standing Offer (RISO) is for the use of a specific department or agency within a specific geographic area. RISOs are arranged by PWGSC on receipt of a funded requisition.
• A Departmental Individual Standing Offer (DISO) is used by PWGSC as a method of supply to analyze customer demand, determine quantities and quality, standardize products used by government, manage complex requirements and satisfy requirements for data collection for reports to Treasury Board and the Auditor General's Office. Only PWGSC may issue call-ups against a DISO upon receipt of a funded requisition from a customer department.

statement of work (énoncé des travaux): The specification of the work a contractor is required to do.

target price (fixed fee and incentive fee formula) (prix visé): A method of pricing in which the contractor is paid costs reasonably and properly incurred as determined by an audit, an agreed fixed fee as profit, and an incentive fee on any savings achieved between a prescribed target cost and the actual cost as established by an audit. A target price contract may also include a ceiling price.

temporary help services (services de travail temporaire): Services provided under contract to the government for assignments in which the employees of a firm are engaged to provide services to a department or agency on a temporary basis.

valid bid (soumission valide): A priced offer that is either unsolicited or is in response to a solicitation that meets all the requirements stipulated in that solicitation.

ANNEX C
VALUE FOR MONEY

Definition

To define the best combination of quality, service (including maintenance and repair) and time considerations, at the most economical/effective/efficient total cost, over the useful life of the acquisition.

Objective of Contracting Process

As stated in the Treasury Board Contracting Policy, the objective of government procurement contracting is to acquire goods and services and to carry out construction in a manner that enhances access, competition and fairness and results in best value or, if appropriate, the optimal balance of overall benefits to the Crown and Canadians. Inherent to procuring best value is the consideration of all relevant costs over the useful life of the acquisition, not solely the initial or basic contractual cost.

Contract Review Mechanism

The Treasury Board policy further states that contracting authorities are encouraged to establish and maintain a formal challenge mechanism for all contractual proposals.

The review methodology should address, but not be limited to, such basics as the following:

• Is the proposal within the contracting authority's legislative mandate?
  
• Are funds available?
  
• Are the competitive requirements of the regulations observed?
  
• Are the departmental signing authorities observed?
  
• Does the proposal have legal clearance when required?
  
• Is the proposal in line with government policies on bilingualism, employment equity, and conflict of interest?

The review mechanism should also be able to determine whether the proposed work is actually required and is a good investment.

The Government Contracts Regulations are clear: competitive bidding is required in all but exceptional circumstances.

Departments are to:

• confirm the assertion that a contract is required;
  
• ensure such requirement is appropriately documented; and
  
• heighten accountability.

CSC Contract Review Board members are to monitor the concept of value for money by:

• Step 1
• Introducing a challenge mechanism to raise questions openly and objectively to support the justification.
• Step 2
• Assisting (not replacing) managers in confirming the choice of using a contract and a specific procurement process with a good return on investment, including proposing alternatives and other options (e.g. make or buy).

Criteria

Value for money:

• is not confined to contractual process; and
  
• is the consideration of all relevant costs over the useful life of the acquisition and not solely the initial or contractual cost.

A cost-effectiveness analysis is a tool that can be used to assess quality and performance levels in relation to intended use.

However, the final decision rests with the manager accountable for the criteria.

ANNEX D
CSC CHECKLIST FOR GOODS AND SERVICES CONTRACTS

CORCAN

Has CORCAN been considered and given the opportunity to provide the goods and/or services?

PART 1: BASIC CONTRACT DATA

1. Is there a mandatory standing offer for this type of requirement? (CSC or PWGSC)
2. Requested start date and requested end date - Has the work already been started? Is it feasible within the suggested timeframe? How long is the contract for (excessive length of time)? Is this a retroactive approval with payment on strength of the invoice?
3. Proposed basis of payment - Is a breakdown of the cost proposal provided with the Request for Contract?
4. Estimated cost (fees) and estimated travel and administrative expenses - Is this an original requirement or an amendment?
   Is this a multi-year contract? Should it be multi-year?
   Is the cost reasonable?
   If an amendment is being requested, is it the first amendment? If not, how many amendments were previously done and what was their value?
   Is the amendment requested to exercise an option to renew? If it is an option, did we evaluate the performance?
5. Financial code - Is a complete financial code provided for all items?
6. GST/HST and total estimated cost of contract - Are the taxes and total values accurate?
7. Certified pursuant to section 32 of the Financial Administration Act that funds are available - Is section 32 signed by the appropriate delegated manager or authorized officer?
8. Former public servant: Is the individual a former public servant in receipt of a pension? Has the person been retired for less than one year?
9. Justification for sole source: Has a clear justification for the sole source been provided, consistent with Treasury Board policy? Is there an explanation as to why the proposed supplier was selected, whether other suppliers were considered and why they were not retained?

PART 2: JUSTIFICATION FOR A CONTRACT

Outline of needs and reasons why work cannot be done by CSC resources, and impact of not proceeding: Is there a clear justification why the work cannot be done in-house and what the impact of not proceeding will be?

Have we looked at the possibility of hiring casuals, terms, etc.?

Will this contract create a perception issue?

Is the contract raising any legal issues?

PART 3: CONTRACTOR HISTORY

Name of individual or firm: Have any contracts been awarded recently to this firm or individual? If so, when and how many?

Any potential of contract splitting?

PART 4: SECURITY REQUIREMENTS

Are there any security requirements for this contract? Is the completed SRCL included with the Request for Contract?

PART 5: CERTIFICATION

Has the certification been signed by the responsible manager and the appropriate sector head?

If the contract falls under another functional authority, has this functional authority provided sign-off? (For instance, if this contract is for software, Information Management Services need to sign off.)

PART 6: SCOPE OF WORK

Is a clear scope of work included? Does it provide realistic results and deliverables? Is the scope of work such as to create an employer-employee relationship?

Are the requirements such as to eliminate all applicants but one?

GENERAL

Is the information included on the Request for Contract consistent with the information (dates, deliverables, $ amounts, milestones, etc.) included in the attachments, if any?

Is the procurement method appropriate to the requirement?

Was a cost-benefit analysis prepared?

Is this a contract or a contribution? Is it within CSC's mandate?

ANNEX E
COST-EFFECTIVENESS ANALYSES

It is important to note that the intent of a cost-effectiveness analysis is to engage management in a process of investigation and assessment designed to assist the ultimate decision-maker to reach an informed and rational choice. The decision-maker could be both CSC management and Treasury Board.

WHAT IS A COST-EFFECTIVENESS ANALYSIS?

When the outcome(s) of a project cannot be defined in monetary terms, a cost-benefit analysis (CBA) has limited applicability. A cost-effectiveness analysis (CEA) is used to select a project that would yield the least cost production of a given output. For example, in the case of offender accommodation, the least costly solution is sought to meet existing or projected accommodation requirements and population needs.

CONDUCTING A CEA

The methodology in conducting a CEA is similar to a CBA, with the exception that benefits are not assigned a monetary value, as it is difficult if not impossible to do so.

For example, if it is proposed that an institution be constructed in a community that does not have a significant or skilled labour pool from which to recruit qualified staff, it is difficult to quantify the absence of individuals that would meet basic recruitment criteria. While difficult to quantify, this issue remains part of the analysis in a CEA.

The basic framework of a CEA includes the following:

1. Issue Identification
2. Background/Situation Analysis
3. Decision Criteria (including constraints and assumptions)
4. Identification of Options
5. Option Analysis
   1. Assessment Against Decision Criteria
   2. Advantages and Disadvantages
   3. Cost Comparison/Analysis
6. Recommendation

1. Issue Identification

Concisely indicate to the reader why the analysis is being conducted.

2. Background/Situation Analysis

Inclusion of background information provides the reader with a historical context often revealing how the current issue emerged. A situation analysis provides additional context by describing the current environment and factors related to the issue.

Depending on the issue at hand, the background and situation analysis of an issue may be dealt with together or as separate sections. However, how you as the author organize the information is subjective. For some analyses, an additional section that provides relevant contextual information may be required. Information under these sections may include the following:

• government or departmental policies or standards;
  
• impact on stakeholders/stakeholders' positions;
  
• information regarding past/present/future capacities and/or population, including population profiles;
  
• level of urgency;
  
• relevant supporting research.

3. Assumptions and Decision Criteria

Assumptions - Planning assumptions are hypotheses. In the absence of empirical evidence, assumptions must be made to anticipate various events/outcomes. For example, an assumption regarding an increase or decrease in the offender population from a particular community is required if historical criminal justice trend data is lacking or altogether non-existent. Such assumptions may be based on specific demographics or social conditions within the community. Future experience may lead to altering this assumption if at a later date this assumption is found to be invalid. Population projections are a standard planning assumption.

Planning assumptions may also be restrictions imposed by policy, accepted resourcing standards or specific rules that require compliance.

Decision Criteria - Any relevant criteria that help the decision-maker assess the appropriateness or feasibility of an option should be listed. Decision criteria may include mandatory or desirable considerations required by legislation or policy, articulated by internal or external stakeholders, or deemed standard or essential to effective corrections. Specifically they may address the following issues: human resources, social and economic impacts, community capacity, program factors, time requirements (deadlines), operational disruption, etc. They often include both constraints and assumptions. When listing decision criteria, it may be helpful to list them in order of priority and/or to assign a value to each criterion or constraint. This may prove beneficial in later determining a preferred option.

Constraints - Any mandatory requirement or limit that will impact the analysis should be identified. Constraints are considered mandatory requirements in decision-making (an option is not feasible if it does not meet an identified constraint). For example, a legal constraint in section 28 of the CCRA outlines a number of legislated requirements for the provision of correctional services or accommodation. Additional categories of constraints may include:

Physical Constraints - Limitations on the availability of certain inputs required for a project.

Technological Constraints - What is possible within the present and predicted levels of technology?

Legal Constraints - These could include a variety of elements such as employer-employee relations, other conflict of interest, official languages, and the CCRA and Regulations.

Geographical Constraints - Arising from the location of institutions.

Political Constraints - This could include a change in the government, rendering some alternatives unacceptable (i.e., they may be inconsistent with the general thrust of government policy).

Financial Constraints - There may be constraints upon total capital or operating expenditures. The financial situation of contractors may also be a factor.

Social Constraints - Limitations as to the effects and costs society as a whole is willing to bear.

Target Constraints - Arising from commitments to achieve particular goals or targets (e.g. Creating Choices or corporate objectives).

Imaginary Constraints - Some feasible alternatives may not be thought of because of people's unwillingness or inability to contemplate the unfamiliar. Habits, standard operating procedures and rules of thumb often act as mental barriers.

Attitudinal Constraints - Reduction in overall staff morale resulting from fear of job loss, relocation and/or redeployment, stakeholder or community responses.

4. Identification of Options

Briefly list the proposed options that will be considered in the analysis.

5. Option Analysis

Provide a brief description and bottom-line of the costs associated with each option.

In describing each option, ensure that differences between the options are clearly articulated for the reader. Detailed costs and costing methodology will be included in the Cost Comparison/Analysis section (see below).

1. a) Assessment Against Decision Criteria
   This section provides the reader with an assessment of how well or to what degree each option meets the principles of the organization and/or issue at hand.
   Using a table format, list the decision criteria and evaluate the options against the criteria. After the table, further illustrate how the options either meet or do not meet the decision criteria.
2. b) Advantages and Disadvantages
   Using a table format, point out key advantages and disadvantages of each option. This section should be concise. It should not present any new information, but summarize or highlight what has already been presented in the previous sections.
3. c) Cost Comparison/Analysis
   Illustrate the costs associated with each option in a table format. Discuss cost variances within and between the options. If the methodology used to estimate the costs is not clear or is complex, a separate annex to detail the costing methodology may be required.

6. Recommendation

After all possible factors, including costs, have been illustrated, assessed and/or quantified, you need to balance intangible effects/results (e.g. public and political factors) against substantive quantitative and/or qualitative effects/results in order to reach a fitting recommendation. In other words, you will have to "weigh" your criteria and determine the value of an option's adherence, or lack thereof, to one criterion over another. Through a process of elimination, the recommended option should become evident.

ANNEX F
CONTRACT/CONTRACTOR EVALUATION GUIDELINES

This evaluation is to be performed by the appropriate manager (project authority) using the Contract/Contractor Evaluation form (CSC/SCC 0996). The completed evaluation form must be sent to Finance together with the last invoice (final payment) for each service contract. A copy of the form must also be sent to Contracting and Materiel Services for their contract file.

In the case of multi-year contracts or contracts with option years, the evaluation form must also be completed and sent to both Finance and Contracting and Materiel Services with the first submission of payment for each option year.

Managers should further be reminded that they should not wait until the contract is over to identify any problems with the services or goods provided by a supplier. The managers' concerns must be brought to the attention of the contracting authority early on in the contracting process and no payment should be made of any invoices for services or goods that have not been rendered as per the contract.

National and Regional Contracting and Materiel Services Managers will maintain a log of vendors or service providers with whom CSC has experienced difficulties. Although past performance is not necessarily an indicator of future performance, this knowledge can be used to address any potential risk factors, such as modifying standard contracting templates, or adding additional specific clauses to contracts as the circumstances warrant.

ANNEX G
GREEN PROCUREMENT

Objective

To adhere to the Government of Canada's Policy on Green Procurement by utilizing procurement decision-making processes that minimize the consumption of resources, waste generation, risks (environmental, health and financial), and operational costs in order to reduce the environmental impacts of CSC operations and support sustainable development principles. à‚  In addition, this policy sets out the requirements for training and responsibilities of key stakeholders, and establishes the requirements to be compliant with this policy.à‚  

Application

This directive applies to all CSC employees.

Background

As a significant purchaser of goods and services, the federal government has a leadership role to play in the market for environmentally preferred goods and services. CSC is committed to responsible government operations that will reduce environmental impact and promote environmental stewardship, in accordance with the government-wide Policy on Green Procurement, issued by Public Works and Government Services Canada (PWGSC) in April 2006, and with the Office of Greening Government Operations (OGGO) government-wide approach to the greening of government activities.

CSC has developed this directive to ensure that green procurement is part of its business procurement practices, and thus considers environmental performance along with other procurement considerations, such as a lifecycle approach'cost, performance, quality and availability. CSC seeks to stimulate innovation and market development of, and demand for, environmentally preferred goods and services. By strengthening greener markets and industries, CSC will create awareness and understanding of environmentally responsible procurement opportunities and contribute to reducing government costs.

This directive provides CSC the opportunity to green operations by considering not only what and how it purchases, but also how it uses, maintains and disposes of acquired goods and services. The directive is in line with the overall procurement policy framework of the Government of Canada, which includes utilizing procurement to achieve other social, economic and environmental outcomes.

Expected Results

This directive is expected to help CSC contribute to environmental objectives, such as:

• reducing greenhouse gas emissions and air contaminants;
• improving energy, water and other resource efficiency;
• reducing ozone-depleting substances;
• reducing waste and supporting reuse and recycling;
• reducing hazardous waste; and
• reducing toxic and hazardous chemicals and substances.

Other expected results shall include:

• level the purchasing power of the federal government to achieve economies of scale in the acquisition of environmentally preferable goods and services, thereby reducing the cost for government and strengthening greener markets and industries;
• bring about more environmentally responsible planning, acquisition, use and disposal practices in the federal government; and
• support a healthier working environment for employees and for citizens in general through the purchase of environmentally preferable goods and services.

Definitions

Definitions applicable to this directive are as follows:

Environmental impact:

any change to the environment that includes, but is not limited to, change to wildlife species and habitat, health and socio-economic conditions, physical and cultural heritage, and the current use of land and resources.

Environmentally preferred (sound) products and services:

those which are less harmful to the environment and human health over the life cycle of the good or service, when compared with competing goods and services that serve the same purpose. They are those which are designed to minimize negative impact on the environment over their full life cycle.

Environmental performance considerations:

any features of a purchase that is expected to have a positive environmental impact, including, but not limited to: reducing greenhouse gas emissions and air contaminants; improving energy, water and other resource efficiency; reducing ozone-depleting substances; reducing waste and supporting reuse and recycling (including the use of renewable resources); reducing hazardous waste; and reducing toxic and hazardous substances.

Environmental risk:

the risk of an action resulting in a negative environmental impact considering both the likelihood and the severity of the possible impact.

Environmentally responsible:

a practice that has and maintains a lesser or reduced impact on human health and the environment.

Greenhouse gas emissions:

The total mass of any of the atmospheric gases that contribute to the greenhouse effect, a cause of global warming, released over a specified time period

Hazardous waste (hazardous material):

waste considered to be dangerous to human health and the environment and requires special disposal techniques. The Workplace Hazardous Materials Information System and the Hazardous Products Act offer important information in reference to this subject.

Life cycle:

an analysis used to examine the environmental impact and financial cost of a good or service, including the effective and efficient management of assets along the entire continuum from the identification of a requirement to the disposal and replacement of the good acquired to meet the requirement: analyzing options; planning acquisition; acquisition; operating; using and maintaining; and finally disposing and replacing.à‚  

A life cycle assessment considers:

• the air, water and solid waste pollution generated when raw materials are extracted;
• the energy used in the extraction of raw materials;
• the pollution that results from manufacturing and transporting the good to its point of usage;
• the environmental harm that might occur during the distribution and use;
• and the solid and liquid wastes that remain at the end of useful life of the good.

Ozone-depleting substances:

substances that contain chemicals, typically halocarbons (i.e. chloridofluoridocarbons and hydridochloridofluoridocarbons), which damage the ozone layer and should be avoided whenever possible. Refer to the Canadian Environmental Protection Act - Ozone-depleting Substances Regulationsfor more on which substances are considered ozone depleting. The United States Environmental Protection Agency also maintains a list of ozone-depleting substances.

Sustainable development:

development that meets the needs of the present without compromising the ability of future generations to meet their own needs.

Useful life:

how long an asset is expected to be in good operational or service order before major modifications or upgrades will have to be made to the asset.

Directive Requirements

1. CSC employees are required to ensure that the green procurement objectives are attained while maintaining compliance with all legislative, regulatory, strategy and policy obligations.
2. Consistent with the overall value for money objectives in procurement, CSC employees are accountable to ensure their management control framework in support of procurement incorporates environmental performance considerations, from planning, identification and definition of requirements, acquisition, operation and maintenance to disposal of goods or closure activities of acquired services.à‚   Compliance reviews will be undertaken by Contracting and Materiel Services.à‚  
3. CSC Contracting and Materiel Services to implement an effective approach to procurement planning and requirement definition that incorporates environmental performance considerations.
4. Establish management processes and controls relative to procurement to identify environmental risks and mitigation considerations, as appropriate.
5. Meet green procurement targets, which will be established through the annual Report on Plans and Priorities and the Departmental Performance Reports. These can be achieved through a combination of initiatives, including government-wide commodity management programs; procurement services of PWGSC in its more general role as a common service organization; and measures taken by CSC when it conducts contracting under its own authority.
6. Training:
   • Ensure that officials in key management, procurement services delivery and oversight positions have the necessary training to support the objectives of the policy.
   • Employees responsible for the procurement of goods and services (i.e., Contracting Officers and acquisition cardholders) must complete the online, self-paced mandatory Green Procurement (C215) course provided by the Canada School of Public Service.
     • A copy of the Green Procurement (C215) training certificate must be sent to the Contracting and Materiel Services Directorate at CSC National Headquarters.
   • Employees in Budget Manager positions, administrative functions, as well as those who are responsible for managing the greening of CSC's operations, are encouraged to complete the online Green Procurement training.
7. Include the contribution and support for the green procurement policy objectives in the performance evaluations of managers and functional heads of procurement and materiel, as appropriate.
8. CSC's employees must ensure that environmental performance considerations and impacts are incorporated into the procurement process of goods and services from planning, identification and definition of requirements, to acquisition, use/maintenance and disposal, while obtaining the best value for the Crown.

Scope

All CSC staff involved in procurement are required, where operationally feasible, to incorporate Green Procurement practices for, in particular, the following goods and services:

• Ammunition
• Clothing and textiles
• Construction materials and services
• Electrical and electronic supplies and components
• Fuels and lubricants
• Fine paper
• Fleet (vehicles and other mobile equipment)
• Janitorial/cleaning products and services
• Lighting
• Professional services
• Office supplies
• Furniture
• Flooring materials
• Office products
• Packaging
• Plumbing fixtures
• Remediation products and services
• Telephony and communications
• Travel

Other identified goods and services may be considered as applicable.

Roles and Responsibilities

Contracting and Materiel Services, Regional and National Headquarters are responsible for:

• providing guidance on green procurement practices to CSC employees, in accordance with the organization's procurement policies, directives and guidelines; and
• establishing an approach to procurement that incorporates environmental performance, including the addition of green performance measures into evaluation criteria.

Contracting and Materiel Services at National Headquarters, in addition to the above, are responsible for:

• establishing management processes and controls with regard to procurement to identify environmental risks and mitigation considerations, as appropriate;
• setting green procurement targets as appropriate. These targets are to be tailored to reflect mandates, departmental buying patterns, as well as the nature and risks associated with the assets and services used to support the achievement of program objectives;
• ensuring that CSC contributes to meeting government-wide green procurement targets, as designated by PWGSC;
• ensuring that all CSC green procurement targets are met, as set in the Reports on Plans and Priorities;
• ensuring that officials in key management, procurement services delivery and oversight positions have the necessary training to support the objectives of the policy;
• monitoring and reporting on green procurement performance activities and statistics to the Treasury Board Secretariat and PWGSC, respectively where they are applicable;
• interacting with other government organizations, including PWGSC, OGGO, Environment Canada, Natural Resources Canada and the Treasury Board Secretariat, on green procurement issues to advance shared and common green procurement objectives; and
• ensuring adherence to this policy through reviews to ensure green procurement compliance.

The Environmental Protection Programs Directorate, Technical Services, is responsible for:

• providing environmental and sustainable development guidance and recommendations, as applicable, to all CSC employees, and
• monitoring and reporting on green procurement performance in the annual Report on Plans and Priorities, the Departmental Performance Report or, if applicable, the Sustainable Development Section of the annual Departmental Performance Report.

References

Legislation:

• Department of Environment Act
• Department of Natural Resources Act
• Canadian Environmental Assessment Act and its Regulations
• Canadian Environmental Protection Act and its Regulations
• Federal Sustainable Development Act
• Fisheries Act
• Hazardous Products Act
• Transportation of Dangerous Goods Act

Related Treasury Board Secretariat policy instrument:

• Guide to Management of Materiel

Related PWGSC policy instruments:

• Government of Canada's Policy on Green Procurement
• Federal Sustainable Development Strategy
• Federal Electronic Waste Strategy

Related CSC materiel:

• Correctional Service Canada's Sustainable Development Strategy

ANNEX H
SECURITY REQUIREMENTS CHECK LIST COMPLETION GUIDE

The following guide will assist in the completion of the Security Requirements Check List (SRCL) (TBS/SCT  350”‘103). Although a variety of possible scenarios may be encountered, a basic definition of each block appears below. Specific questions or concerns relating to this process may be directed via email to GEN”‘NHQ Departmental Security.

If you know the contract number, please indicate it in the box for this purpose in the top right-hand corner.

PART A

BLOCK 1:CSC or Correctional Service Canada.

BLOCK 2: Your branch, division or section (e.g., Departmental Security Division).

BLOCK 3. a): N/A

BLOCK 3. b): N/A

BLOCK 4: Please provide a summary of the work to be performed.

BLOCK 5. a): The Controlled Goods Program (CGP) is a United States initiative that is designed to safeguard information/assets that have been modified for military use. Like written documentation, some controlled goods are classified while others are unclassified. Although some information is unclassified, it still requires a degree of safeguarding (personnel must be registered in the CGP and have at least Reliability Status to have access to controlled goods; in specified areas, a personnel security screening of SECRET is required). This is not applicable toCSC contracts.

BLOCK 5. b): Unclassified military data differs somewhat from the CGP. Contractors must be registered in the Joint Certification Program. This is not applicable toCSC contracts.

BLOCK 6. a): If the contractor or its employees will require access to information and/or assets that are protected or classified, this block must be checked "YES". Note that unescorted access to a CSC facility requires the contractor to hold at least Reliability Status.

BLOCK 6. b): This block must be marked "YES" if contractor personnel must work in areas that may have access restrictions (require a clearance for access) but will NOT need to have access to any protected or classified information.

BLOCK 6. c): This block refers to in-town couriers (bike couriers, hand messengers). These companies are not cleared to safeguard protected or classified information. Overnight storage is therefore not permitted. The package must be returned to the originator if it is undeliverable.

BLOCK 7. a): You must indicate all types of information that contractor personnel will have access to (Canadian, NATO, foreign).

BLOCK 7. b): Some information has restrictions as to its release. In this block, you would indicate if the information has:

BLOCK 7. c): Indicate the levels for each country's information to be released to the contractor. Please indicate ALL levels and not just the highest.

BLOCK 8: COMSEC (Communications Security) Information - Measures and controls are taken to deny unauthorized persons information derived from telecommunications and to ensure the authenticity of such telecommunications. Communications security includes crypto security, transmission security, emission security, traffic flow security and physical security of COMSEC material. It has certain restrictions concerning release and safeguarding; you must therefore indicate "YES" and list all the levels (Confidential/Secret, etc.) if the Contractor will require access to COMSEC information.

BLOCK 9: INFOSEC is a special category of classified Communications Electronic Security (COMSEC) information.

PART B

BLOCK 10. a): In this block, you must indicate the levels of clearance required by the contractor. If the work can be separated by classification (e.g., certain work is only CONFIDENTIAL, while other work is only SECRET), then each contractor must hold a clearance commensurate with the information he or she will work on. If the work cannot be separated in this manner, the contractor must have a security clearance commensurate with the highest level of information to be accessed.

BLOCK 10. b): Occasionally, the contractor will use staff for administrative purposes where none of the work is of a protected/classified nature. In an instance such as this, "YES" would be indicated. If every person working on the contract will have access to protected/classified information/assets, "NO" would be checked. If you have indicated "YES," and the contractor will be required to work on a CSC site, an escort must be provided at all times.

PART C

BLOCK 11. a): If a contractor will be required to safeguard protected/classified information/assets at his or her own site, he or she must have a Document Safeguarding Capability (DSC) commensurate with the highest level of information to be retained. Indicating "YES" will ensure that the Canadian and International Industrial Security Division (CIISD) of PWGSC has cleared the contractor to safeguard this type of information.

BLOCK 11. b): Same as above.

BLOCK 11. c): Production means production of equipment as opposed to paper production (e.g., Correctional Officer uniforms and badges). Documentation to be processed, originated or modified on the contractor's own information technology systems comes under 11. d).

BLOCK 11. d): Should the contractor be required to use his or her own information technology systems to electronically process protected/classified information, "YES" must be checked. This will ensure that PWGSC/CIISD (or CSC) has verified that the information technology systems meet the requirements for processing protected/classified information.

BLOCK 11. e): A link to CSC's LAN/WAN system requires the contractor to follow the guidelines (Connectivity Criteria) issued by CSC Information Technology Security Division. The Connectivity Criteria is to be attached to the SRCL by the project authority when submitting it to the Departmental Security Division for approval.

NOTE: When completing this form online, a pop-up window will appear for blocks 11. a) to 11. e). This pop-up window will ask for the various levels of information to be safeguarded at the contractor's facility. When using a printed copy of this form, the chart on page three of the SRCL must be completed by hand. You may complete the form electronically; however, a hard copy with the original signature must be forwarded to the Departmental Security Division. This division cannot, at this time, accept electronic versions of the SRCL.

BLOCK 12. a): You must indicate "YES" if any of the information provided on the SRCL is of a protected/classified nature (e.g., work description in block 4).

BLOCK 12. b): You must indicate "YES" if any of the supporting contractual documentation (statement of work, request for proposal, etc.) is of a protected/classified nature. The SRCL must also be marked with the highest level of classification on the supporting documentation [e.g., SECRET (Unclassified Less Attachments)].

BLOCK 13: To be signed by project authority.

BLOCK 14: The Regional Administrator, Security, will sign in this block when the contract is issued by the region. An NHQ Departmental Security Division representative will sign if the contract is issued by NHQ.

BLOCK 15: If there are special security requirements above and beyond those in the the Policy on Government Security, "YES" would be indicated.

BLOCK 16: For contracts where PWGSC is the signing/contract authority, the PWGSC Procurement Officer signs here. For contracts where CSC has the delegated signing authority, the appropriate CSC procurement/contracting authority will sign.

BLOCK 17: A PWGSC Industrial Security representative will sign here when PWGSC takes responsibility for the security requirements of the contact. Otherwise, it is left blank.

ANNEX I
PROCESS FOR NON-COMPLIANCE WITH CONTRACTING PROCESSES AND DELEGATIONS

The following three-step process will generally apply to managers found to be non-compliant with contracting processes and delegated authorities:

• First incident - Coaching
  
• Second incident - Letter to manager's superior
  
• Third incident - Suspension of both financial and contract signing authorities, with recommendations for disciplinary action if warranted

Note that the above steps do not preclude the immediate elevation to the second or final step should the severity of the incident give cause for such action. A description of such incidents and recommendations for corrective action will be sent by the Regional or Departmental Comptroller to the Regional Deputy Commissioner, Corporate Services, or Assistant Commissioner, Corporate Services, as applicable for adjudication. Should regional authorities become aware of a transfer of a manager with a non-compliance issue, action will be taken to inform the receiving regional authorities accordingly.

FIRST INCIDENT - COACHING

• The manager will be provided an opportunity for learning, coaching and training.
  
• The coaching method will be determined by the applicable Manager, Contracting and Materiel Services (i.e., verbal, email or memo).
  
• A copy of correspondence/documentation of the non-compliance is to be filed on a permanent file and tracked by the National or Regional Manager, Contracting and Materiel Services (as applicable).

SECOND INCIDENT - LETTER TO SUPERIOR

• A letter describing the circumstances will be sent from the National or Regional Manager, Contracting and Materiel Services (as applicable) to the manager's superior, with an information copy to the manager.
  
• The manager's superior is to submit a briefing note, supporting documentation if required, and an action plan outlining corrective action taken to the National or Regional Manager, Contracting and Materiel Services.
  
• A copy of correspondence/documentation will be filed on a permanent file by the National or Regional Manager, Contracting and Materiel Services, and follow-up action will be taken to ensure the incident is properly concluded.

THIRD INCIDENT - SUSPENSION OF SIGNING AUTHORITY

• The chair of the National or Regional Contract Review Board will discuss the specifics of all incidents where suspension of authorities is warranted with the Regional Deputy Commissioner or Assistant Commissioner, Corporate Services (as applicable), provide recommendations as to the length of any suspension and the circumstances under which a suspension should be lifted, and draft correspondence accordingly. Once appropriate corrective action has been taken and the period of suspension has elapsed, as monitored by the originating chair, a letter of re-instatement will be sent by the suspending authority to re-instate authorities.
  
• A copy of correspondence/documentation will be filed on a permanent file and tracked by National or Regional Manager, Contracting and Materiel Services (as applicable).