Overall, the contract amendments reviewed were processed in accordance with contracting policy and regulations. The governance and controls for contract amendments could be strengthened by clarifying and communicating DND/CAF policy requirements and guidelines. A risk-based approach to monitoring contract amendments would also help to mitigate contract management risks and allow DND/CAF to adequately demonstrate fairness and transparency and the achievement of best interests of the Crown.
Good Practices
The ADM(Mat) internal procedures have been recently updated to require risk assessments be revised when amending a contract, for procurements over $25,000.
ADM(RS) Recommendation (Moderate)
ADM(RS) Recommendation (High)
Table 1. Summary of Key Procurement Roles and Responsibilities. This table provides the roles and responsibilities of key designated staff.
Where applicable, PIA to approve the requisition documents (for example, PSPC 9200 requisition form).
Develop procurement plan with target cost and cash flow plan.
Develop procurement documents.
The PA and the TA must consider the possibility of establishing a multi-year contract when it is an economic advantage to the department, such as including option years in the initial contract.
Obtain approval of procurement plan.
Action the requisition.
Procurement Planning – risk management
TA plays a consultation role.
Develop and implement a procurement risk management strategy including the completion of the Procurement Risk Assessment and Strategy form for each new procurement valued greater than $25,000.
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Procurement Execution
TA to evaluate proposals and bids.
Participates in the bid evaluation process.
Manages bid evaluation process.
Draft and award contract.
Report the contract (and the associated amendments) in the CDMS.
Procurement Control – monitoring and management
TA to identify changes in requirements to the PA.
Monitor and manage contract cash flow and to ensure the contracted work does not exceed the authorized value of the contract.
Ensure Crown commitments in the contract are met.
Inform CA if the contract amount requires adjustment (see Procurement Control – contract amendment).
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Procurement Control – contract amendment
TA to identify and request changes to the PA.
Ensure that the request is for a change and not a new requirement.
Communicate the change to the concerned parties (may include the contractor).
Draft the amendment documents (for example, PSPC 9200 requisition amendment if applicable).
Ensure amendment documents are processed and approved at the appropriate level.
Submit amendment documents to the CA.
Ensure that the request is for a change and not a new requirement.
Action the contract amendment request, including obtaining contractor’s consent to the change.
Award contract amendment.
Procurement Control – risk management
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Continue to track and implement the current risk management strategy.
Document any amendments that result in an increase of 30 percent or more of the original value of the 9200 requisition for a special annual reporting.
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Procurement Control – file management
See PA’s responsibilities.
The CA/PA is responsible to create and maintain the contract / procurement file with all pertinent information (i.e. documents associated with the requirement, financial information, correspondence, signed 9200 requisitions and associated amendments, signed contract documents and associated amendments, and supporting documentation and justification).
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Table 1 Details - Summary of Key Procurement Roles and Responsibilities
