Procurement Policy

Version Number: 4.3
Version Date: December 21, 2023

Upon request, this corporate policy instrument (CPI) is available in multiple formats for individuals with a visual impairment (email Multiple Media-PAB / Format Substitut-DGAP (CRA/ARC)).

Table of Contents

1. Effective date
2. Application
3. Related corporate policy instruments
4. Overview
5. Objective and outcomes
6. Requirements
7. Responsibilities and accountabilities
8. Review and assessment
9. References
10. Enquiries
11. Version history
12. Appendix A – Trade Agreements and Financial Thresholds

1. Effective date

The Procurement Policy received Board of Management (Board) approval and came into effect on February 9, 2021 (Board Resolution #2020-2021-18).

This policy replaces the 2012 Procurement Policy.

For the version history of this document, see section 11.

2. Application

This policy applies to employees of the Canada Revenue Agency (CRA) and to any other individuals required to follow CRA policy, and is mandatory to follow.

The Code of Integrity and Professional Conduct highlights the rules, and describes the values, that guide CRA employees in their work. The Code, along with the CRA Foundation Framework for Corporate Policy, sets out the requirement to follow CPIs.

Consequences of non-compliance: failure to comply with CPIs may result in corrective measures, including administrative and disciplinary actions.

To help interpret and implement this policy, key terms are defined in the Procurement and Assets Management Glossary.

3. Related Policy Instruments

This policy flows from the CRA Foundation Framework for Corporate Policy.

This policy is supplemented by the:

• Acquisition Card Directive
• Alternative Dispute Resolution for Procurement Contracts Directive
• Contracting with Former Public Servants Directive
• Contracts Directive
• Limitation of Contractor Liability Directive
• Procedures on the Procurement Strategy for Aboriginal Business
• Procurement and Corporate Social Responsibility (CSR) Directive
• Procurement Compliance Review Directive
• Supplier Integrity Directive

For any other related CPIs, see References.

4. Overview

Section 61 of the Canada Revenue Agency Act (CRA Act) provides the CRA, within the limitations specified, with the authority to enter into contracts, agreements or other arrangements with governments, public or private organizations and agencies or any person in the name of Her Majesty in right of Canada or in its own name. Further, under subsection 30(1) of the CRA Act, the CRA has authority over all matters relating to general administrative policy in the CRA, which would include the CRA's policies in respect of procurement and contracting.

The Procurement Policy provides direction on the guiding principles and objectives of CRA procurement, as well as the management and reporting obligations related to it.

Note: Although Public Works and Government Services Canada (PWGSC) has been renamed to Public Service and Procurement Canada (PSPC), PWGSC is used throughout the policy as it remains their legal name.

5. Objective and outcomes

5.1 Objective: To ensure that the CRA's procurement regime is responsive, efficient, and cost-effective and that it meets the operational and management needs of the CRA while considering sustainable development.

5.2 Outcome: The CRA's procurement processes and activities will be designed and conducted with due regard for the CRA's operational requirements, for efficiency and economy, and in accordance with both the law and the principles and obligations set out in this policy.

6. Requirements

Procurement Authority

6.1 The CRA Act provides the CRA with full procurement authority for goods, services, and construction (see Exceptions / Restrictions below).

6.2 Procurement authority is delegated by the Commissioner, subject to certain conditions and limitations, by means of the Delegation of Procurement Authorities instrument.

Exceptions / Restrictions

6.3 Sections 66 and 67 of the CRA Act restrict CRA's procurement authority as it relates to contracts for legal services. Contracts for legal services may only be entered into by or with the approval of the Attorney General of Canada.

6.4 With the exception of emergency contracts, procurement authority for construction requirements has not been delegated by the Commissioner to any positions within the CRA. Construction and other requirements that may have an impact on or touch any of the base building components (for example, heating, ventilation, air conditioning, electrical, plumbing and mechanical) will be coordinated through the respective regional Real Property Centre of Expertise and handled by PWGSC.

Principles

6.5 The CRA's procurement regime is designed, operated and maintained based on the following key principles:

• 6.5.1 Procurement processes are fair, open, transparent, and competition-based, meet public expectations in matters of prudence and probity and provide for some limited exceptions to competitive bidding when circumstances warrant such an approach (refer to the Contracts Directive).
• 6.5.2 Best value is ensured when procuring assets and services necessary for supporting the CRA's operational needs.
• 6.5.3 Effective governance and oversight is achieved and supported by a robust contract quality assurance program (see the Procurement Compliance Review Directive).
• 6.5.4 Procurement activities are planned using a risk-based approach.
• 6.5.5 Procurement-related security issues are assessed and appropriately dealt with in accordance with CRA's security policies (see the Security Program Policy Framework).
• 6.5.6 Requirements of applicable trade and land claim agreements as well as any other federal legislation, regulations, or policies that may apply are met.
• 6.5.7 Contracts with former public servants are only entered into when it is in the public interest and fairness, value and transparency can be assured (see the Contracting with Former Public Servants Directive).
• 6.5.8 Indemnification and limitation of liability issues are addressed in accordance with the Limitation of Contractor Liability Directive.
• 6.5.9 When appropriate and to the extent possible, environmental stewardship and life-cycle principles are considered in CRA procurements to support and further CRA's objectives relating to the environment and sustainable development as outlined in CRA’s Sustainable Development Strategy.
• 6.5.10 Use of electronic ordering and payment methods are maximized to achieve administrative efficiencies and cost-savings.
• 6.5.11 Commitment to corporate social responsibility is reflected as outlined in the Procurement and Corporate Social Responsibility (CSR) Directive.
• 6.5.12 A structured alternative dispute resolution (ADR) process is offered to minimize time-consuming and costly reference to administrative tribunals or the courts, as outlined in the Alternative Dispute Resolution for Procurement Contracts.
• 6.5.13 Corporate Administrative Systems (CAS), as the CRA's financial system of record, is used for the purpose of recording all applicable procurement-related transactions and facilitating procurement reporting obligations.
• 6.5.14 Opportunities for collaboration in procurement decisions are considered.
• 6.5.15 To the extent possible, CRA contracts are awarded only to companies that respect the law and act with integrity (see the Supplier Integrity Directive).
• 6.5.16 Reporting obligations are met in accordance with proactive disclosure and trade agreement requirements, as well as any other federal legislation, regulations, or policies that apply.
• 6.5.17 Accessibility is considered in accordance with any federal legislation, regulations, or policies that apply.

7. Responsibilities and accountabilities

7.1 Board of Management

• oversees the organization and administration of the CRA and the management of its resources, real property, moveable assets, and contracts; and
• approves this policy.

7.2 Commissioner

• provides executive oversight for the functioning of CRA's procurement regime; and
• approves the delegation of procurement authority for CRA positions.

7.3 Chief Financial Officer and Assistant Commissioner, Finance and Administration Branch

• exercises management oversight for the CRA's procurement function;
• participates in procurement reviews, the approval of contracts and the management of risk; and
• reports to the Commissioner and the Board on the overall effectiveness of the procurement system.

7.4 Chief Risk Officer and Assistant Commissioner, Audit, Evaluation and Risk Branch

• Provides advice and guidance on risk management methodologies and practices related to management of procurement in order to ensure alignment with the Enterprise Risk Management framework.

7.5 Assistant Commissioners of branches and regions

• support the efficiency and effectiveness of the CRA's procurement regime by ensuring careful management and prioritization of their procurement needs, the timely identification of procurement requirements, and the provision of related funding; and
• provide effective oversight for their organization's compliance with the requirements of this policy and its supporting instruments.

7.6 Director General, Administration Directorate

• is the functional authority for procurement in the CRA with responsibility for the strategies, plans and management approaches needed to satisfy the CRA's procurement requirements as well as the management, administration and reporting obligations involved.

7.7 Director General, Security and Internal Affairs Directorate

• supports the CRA procurements through the provision of advice and security screening services for procurement contracts having a security element.

7.8 Director General, Financial Administration Directorate

• supports the CRA procurements through the provision of relevant financial services, advice and functional direction.

7.9 Functional authorities

• Provide functional direction with respect to the acquisition and management of those commodities falling within their scope of responsibility; and
• Ensure that their functional direction and processes comply with procurement policy direction and processes.

7.10 Project authorities

• Ensure that procurement requirements and activities are consistent with procurement policy and process requirements; and
• Ensure that contract management is consistent with procurement policy and processes as well as functional direction and processes.

8. Review and assessment

The FAB is responsible for the scheduled review of this policy every five years, as well as any unscheduled reviews when necessary.

To support the review process, the Finance and Administration Branch will identify and undertake any monitoring and assessment activities to help it determine if the policy is effective and being followed.

9. References

The Procurement Policy is based on the authorities set out in the legislation listed below.

Legislation

• Canada Revenue Agency Act
• Trade Agreements (see Appendix A - Trade Agreements and Financial Thresholds)

Related instruments and information:

• Alternative Dispute Resolution for Procurement Contracts Directive
• Code of Integrity and Professional Conduct
• Contracting with Former Public Servants Directive
•  Contracts Directive
• CRA Foundation Framework for Corporate Policy
• Delegation of Procurement Authorities
• Limitation of Contractor Liability Directive
• Procurement and Corporate Social Responsibility (CSR) Directive
• Procurement Compliance Review Directive
• Security Program Policy Framework
• Supplier Integrity Directive

10. Enquiries

Direct any questions about this policy to the Director, Compliance, Policy, and Issues Management Division, AD, FAB.

11. Version history

Revision 01 (Version 2.0) Highlights:

Incorporated the following revisions:

• In Section 3 (Introduction), inserted new para 3.1 reflecting the content originally included under the heading Functional Authority – Procurement in para 7.3 and re-numbered original paras 3.1 and 3.2 as 3.2 and 3.3 respectively.
• In Section 7 (Policy Requirements):
  • Deleted section 7.3 (Functional Authority – Procurement) in its entirety and renumbered original para 7.4 as 7.3.
  • Inserted new sub-para 7.3.9 adding a new key principle regarding procurement and Corporate Social Responsibility (CSR).
• In Section 11 (References), added new reference item – Procurement and Corporate Social Responsibility (CSR) Directive.

Revision 03 (Version 2.2) Highlights:

Administrative changes to incorporate the Canada-Peru Free Trade Agreement (CPFTA) and to add paragraph 4 to Appendix A to clarify the application of the extended transparency commitments of the Canada-Chile Free Trade Agreement (CCFTA).

Version Number 2.4 Highlights:

Administrative changes to:

• modify Appendix A to incorporate the Canada-Colombia Free Trade Agreement (CCoFTA), which came into effect August 15, 2011; and
• address the Board's approval of the Policy Framework for the Management of Assets and Acquired Services (Board Resolution 2011/2012-04, June 8, 2011) and the revocation of the Materiel Management Program Framework Policy and Materiel Management Lifecycle Policy.

Version Number 3.0 Highlights:

Incorporated the following revisions:

• Modifications to identify relevant linkage between the CRA's new Integrity Framework and the CRA's procurement activities; and, to ensure CRA's policy is aligned with changes recently made by Public Works and Government Services Canada in respect of only awarding contracts to companies that respect the law and act with integrity.
• Addition of a new principle to strengthen and enhance the management of procurement contracts with former public servants in receipt of a pension, in line with the new direction issued by the Treasury Board Secretariat on October 31, 2012.
• Clarification regarding emergency contracting authority; that is, such authority may involve the procurement of construction-related services.
• Modifications to the content and layout to conform with the CRA's corporate template requirements.

Version Number 4.0 Highlights:

Incorporated the following revisions:

• in section 6, added principles relating to collaboration, reporting, and accessibility;
• in section 7, added the Board, the Assistant Commissioner of the Audit, Evaluation and Risk Branch, functional authorities, project authorities, and their roles and accountabilities;
• streamlined the content and updated the format to conform with CRA corporate template requirements.

Version Number 4.1 Highlights:

Administrative changes to:

• modified Appendix A to incorporate the Canada-United Kingdom Trade Continuity Agreement (Canada-UKTCA), which came into effect April 1, 2021, and the updated trade agreement thresholds effective January 1, 2022.

Version Number 4.2 Highlights:

Administrative change to:

• modify Appendix A to add that the United Kingdom joined the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) on July 16, 2023.

12. Appendix A – Trade Agreements and Financial Thresholds

Refer to Appendix A – Trade Agreements and Financial Thresholds