Contracting Policy Notice 2018-01: Update on Thresholds for Trade Agreements, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, and the Canada–United States–Mexico Agreement

Summary

Table 1 serves as a summary of the thresholds in effect from December 30, 2018, to December 31, 2019, for procurements that are subject to free trade agreements to which the federal government is a party. Table 1 has been updated to include the CPTPP.

Background

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) will enter into force on December 30, 2018. CPTPP is an international free trade agreement between Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam and includes government procurement obligations between these countries. Note that the CPTPP:

• developed out of the negotiation process for the Trans-Pacific Partnership Agreement (TPP)
• generally adopts by reference the provisions of the TPP

The CPTPP will coexist with Canada’s other trade agreements, and the obligations set out in Canada’s other trade agreements will continue to apply. The following chapters of the CPTPP should be consulted in order to understand Canada’s obligations and the exceptions that are available regarding potential contracts:

• Chapter 1: Initial Provisions and General Definitions
• Chapter 15: Government Procurement

Chapter 15 of the CPTPP addresses government procurement and consists of the following:

• the procedural rules to be followed when conducting a covered procurement
• Annex 15-A, which forms the Market Access Schedule of Canada

Note that CPTPP obligations commence with the beginning of the procurement process, which starts once an entity has decided on its requirement.

Entities covered in the CPTPP

Goods, services and construction services

• Unless otherwise specified, all goods are covered (see Section D: Goods in Annex 15-A: Schedule of Canada)
• Specified covered services are listed in Section E: Services in Annex 15-A: Schedule of Canada.
• Unless otherwise specified, construction services are covered, but dredging services and construction services procured by or on behalf of Transport Canada are not covered (see Section F: Construction Services in Annex 15-A: Schedule of Canada)
• The sections in Annex 15-A: Schedule of Canada should be reviewed for possible exceptions, including Section G: General Notes

Thresholds

The thresholds for procurements covered by the CPTPP are listed in Table 1.

Procedural obligations

Covered entities are advised to familiarize themselves with the procedural obligations set out in Chapter 15. Examples of what the procedural obligations cover are:

• posting periods for tender notices
• information that must be included in notices
• content of tender documentation
• circumstances for the use of limited tendering
• publication of award information

All entities listed in Section A: Central Government Entities of Annex 15-A: Schedule of Canada must publish their tender notices for covered procurement on the Government Electronic Tendering Service (Buyandsell.gc.ca).

Exceptions

For exceptions that may apply, both the main text and the annexes of Chapter 15 should be reviewed. In particular, officials may wish to consult:

• Article 15.2: Scope
• Article 15.3: Exceptions
• Article 15.10: Limited Tendering, which provides information on the circumstances where sole-sourcing is permitted
• Annex 15-A: Schedule of Canada, including Section G: General Notes

Maintenance of records requirements

Article 15.16: Post-Award Information describes requirements for maintaining records for covered entities.

References

• Text of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)
• Text of the Trans-Pacific Partnership Agreement

Enquiries

For questions about the content of the CPTPP’s chapter on government procurement, contact Global Affairs Canada at enqserv@international.gc.ca.