Parliamentary Committee Notes: RCMP Procurement and Contracting Processes
2022-2023 INDU – Contract for a Telecommunications System for the RCMP
Date: January 20, 2023
Classification: Unclassified
Fully releasable (ATIP)? Yes
Branch / Agency: RCMP
Proposed Response:
- It is my expectation that the RCMP diligently apply its delegated contracting and procurement authorities and responsibilities, including working with other departments and agencies as needed to screen for national security concerns before procuring goods and services.
- The RCMP operates within its delegated contracting authority provided under the Public Works and Government Services Canada Act. Accordingly, the RCMP can issue contracts up to the departmental delegated contracting authority, which for competitive goods is up to $400K contract entry and $200K contract amendments, and for non-competitive goods up to $40K contract entry and $40K contract amendments.
- Public Services and Procurement Canada (PSPC) is engaged to contract on behalf of the RCMP when the estimated total value of the procurement exceeds the RCMP's contracting authority.
If pressed on RCMP role in the security review of contracts:
- The RCMP applies all Government of Canada security requirements when procuring goods and services.
If pressed on RCMP role in Standing Offers:
- A Standing Offer (SO) is an offer from a potential supplier to supply goods, services or both, under the terms and conditions stated in the standing offer. Standing Offers are not contracts. A separate contract is entered into each time a call-up is made against a Standing Offer There is no contractual obligation on either party until a call-up is made.
- For Standing Offer authorities apply to the call-up limitation not the estimated total usage. Therefore, provided that the call-up limitation is set at an appropriate level within RCMP authority, the file does not need to be processed at PSPC.
- If it is anticipated that individual call-ups may exceed the RCMP's contracting authority, the RCMP must request that PSPC establish the Standing Offer on its behalf. In addition, the RCMP may choose to submit requirements within its authority to PSPC to benefit from PSPC's expertise, which occurred with Sinclair Technologies.
Background:
Contracting approval limits are established under the Treasury Board Secretariat Directive on the Management of Procurement. The exclusive authority to procure goods for the federal government is given to the Minister of Public Services and Procurement Canada (PSPC) under section 6 of the Public Works and Government Services Canada Act. The Minister of PSPC is able to delegate some or all of this power to other Ministers pursuant to section 8 of the Act.
The current RCMP delegation of goods procurement authority from the Minister of PSPC to the Minister responsible for the RCMP was provided in 2010. RCMP has delegated authority for competitive goods up to $400K contract entry and $200K contract amendments. RCMP has delegated authority for non-competitive goods up to $40K contract entry and $40K contract amendments. RCMP can issue contracts up to the departmental delegated contracting authority. Where the estimated total value of the procurement exceeds departmental delegation, PSPC is engaged to contract on behalf of the RCMP.
For Standing Offers (SO), authorities apply to the call-up limitation, not the estimated total usage. A SO is an offer from a potential supplier to supply goods, services or both, on the pricing basis and under the terms and conditions stated in the standing offer. SO's are not contracts in the legal sense and either party may withdraw from a Standing Offer by notification to the other party.
Goods/services covered under a SO are ordered using a call-up document. A separate contract is entered into each time a call-up is made against a SO. There is no contractual obligation on either party until a call-up is made.
Therefore, provided that the call-up limitation is set within the RCMP's contracting authority, the file does not need to be processed at PSPC.
The RCMP applies all required Government of Canada security requirements when procuring equipment and services.
Introduced in 2015, the Government of Canada Integrity Regime ensures that the government does business with ethical suppliers in Canada and abroad. PSPC is the department that runs the regime on behalf of the Government. The Integrity Regime applies to all goods, services and construction contracts, subcontracts and real property agreements with a transaction value over $10,000 issued by a federal department and agency listed in schedule I, I.1 or II of the Federal Administration Act.
Contacts:
Prepared by: Christine Lamarche, Director General, Procurement and Material and Asset Management, 613-867-2472
Approved by: Samantha Hazen, Chief Financial Officer, 613-513-3847
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