Directed contracts in ProServices

In this section

• Definition
• Steps required before issuing directed contracts below $40,000
• Use of ProServices for directed contracting
• Requirement to run a search in the ePortal if sole sourcing
• Amending directed contracts above $40,000
• Use of flex grids for a directed contracts

Definition

Directed contract:

A contract awarded to a pre-qualified supplier in circumstances where the contracting authority has justifiably set aside the requirement to solicit bids under the provision of 1 or more of the exceptions to competitive solicitation in Section 6 of the Government Contracts Regulations.

Steps required before issuing directed contracts below $40,000

You may issue a directed contract below $40,000 (includes all applicable taxes, travel expenses and amendments) under ProServices provided you conduct a search within the Centralized Professional Services System (CPSS) ePortal to determine the eligible suppliers for your requirement. You may approach any eligible supplier from the search list.

Use of ProServices for directed contracting

Treasury Board (TB) policy requires the use of mandatory tools for any procurements of mandatory good and services. This policy is understood to apply for all values, including those below $40,000. While the Government of Canada Contracting Policy also provides for exemptions up to $40,000, there is no clarification on the priority of these 2 policies; accordingly it has been understood that the tools are mandatory for the specified goods and services for all values.

Requirement to run a search in the ePortal if directing a contract

Even in the case of directed contracts, a search via CPSS is mandatory to make sure that a given supplier has been pre-qualified against the various criteria in your requirement.

Amending directed contracts above $40,000

Departments should not amend directed contracts (or competitive contracts) above the limits that are set by the method of supply. A directed contract should not be amended above the $40,000 threshold. If requirements run close to or have the potential to exceed the financial limitations established within ProServices for a directed contract, it may be of value to encourage the client to consider an alternate process (for example: competitive process vs. a directed process) as it will allow for more flexibility in terms of amending the contract, should it be required.

However, justification to proceed with amending such a contract is entirely up to the department/management, but does go against the established rules within the ProServices method of supply. This becomes an internal decision and depending on the departmental process, can sometimes be escalated to a procurement review committee to revise and make the decision to either proceed or not with the amendment based on the justification given. The risk or consequences if any, are then handled internally by management. The contracting file should include all the pertinent documentation to support this request for any future assessments that may be done on the file.

Use of flex grids for directed contracts

The flexible grid must be used for directed contracts. This information can then be put into the procurement file to assist in demonstrating that the selected supplier was able to perform the work and fulfill the requirement, should an assessment occur on that file in the future.

1. Requirements below $40,000

When using ProServices contracting officers from departments with appropriate delegated contracting authority may issue directed contract for requirements valued below $40,000 (all applicable taxes, travel and living expenses, anticipated amendments included).

Departments are expected to assess each situation to determine whether requirements should be competed when below $40,000.

This is possible following recently approved changes, to the Government Contracts Regulations by the Governor in Council, which came into effect on June 10, 2019. The changes are published in the Treasury Board of Canada Secretariat Contracting Policy under the Section 10.2, Exceptions. As part of this set of amendments, the $25,000 threshold for soliciting bids for services and construction contracts was increased to $40,000.

2. Conduct a search within the ePortal

You must conduct a search within the Centralized Professional Services System ePortal to determine the eligible suppliers for your requirement (for the specific category, security level, etc.). To conduct a search:

• Select “Existing user”, located at the top right corner of the screen
• Enter your user ID and password and then select “Submit”
• Select “Perform search”, located at the left-hand navigational menu
• From the drop-down menu, select ProServices and then select “Submit”
• Choose between information technology (IT) or non-IT procurement, then select “Below CKFTA” and then select “Submit”
• Select your category/categories
• On the ProServices Supply Arrangement (SA) search criteria page, enter the level of the category, the desired number of resources, and the various criteria of your requirement. At the end of the form, choose “Less than $40,000 (directed contract)” and then select “Search”
• Print this results page for inclusion in your procurement file
• You may approach any eligible supplier from the search list. Choose the supplier you wish to direct the contract to and select “Submit”
• Print this results page also for inclusion in your procurement file
• Select either the supplier legal name or the supplier email addresses link to obtain contact information for the supplier in question

3. Communicate with the supplier

You must communicate the following to the supplier:

• Minimum mandatory qualifications for the category
• Security requirements check list
• Statement of work
• Resulting contract clauses