Government Contracts Regulations Amendments

Summary#

This is a proposed set of changes called the Regulations Amending the Government Contracts Regulations. Published June 18, 2022, it would cut some Treasury Board approval steps for advance payments, change a named office title, and exempt certain legal and settlement-related contracts from bid-solicitation rules. People can comment for 30 days after publication.

What it does#

• Removes the legal requirement that Treasury Board approve the timing and amounts of advance payments when Treasury Board approval is needed to enter a contract. It also removes the related rules and the definition of progress payment.
• Replaces the name Commissioner of the Communications Security Establishment with Intelligence Commissioner in the Regulations’ schedule.
• Excludes from the requirement to solicit public bids:
  • service contracts for expert advice or testimony that would be used to inform or advance Her Majesty’s legal position in litigation, potential litigation, or dispute resolution; and
  • contracts needed to implement a settlement agreement, or a court order or judgment, in a class proceeding to which Her Majesty is a party.
• The proposal says departments would still follow the Treasury Board Directive on Payments for advance payments even after these changes.

Who's affected#

• Federal departments and agencies that enter contracts and sometimes make advance or progress payments.
• Contractors who provide specialist services, especially expert witnesses and technical experts.
• Parties and administrators involved in class-action settlements where the Crown must hire third parties.
• The office now called the Intelligence Commissioner (name change).
• The proposal says it does not apply directly to businesses generally, and it notes it would not change the Crown’s legal obligations under modern treaties or trade agreements. It also notes the impact on Indigenous people offering expert services is possible but not fully clear.

Why it matters#

• It aims to reduce paperwork and delay inside government by removing a step that departments must currently take when the timing or amount of an advance payment changes. That could speed up contract administration.
• Exempting expert testimony and settlement-implementation contracts from open bidding is meant to protect legal strategy and help the Crown hire or appoint specialists quickly without risking disclosure.
• The change could mean fewer competitive procurement opportunities for some types of contracts, but the proposal says it should not increase contracting risk and will not remove other legal obligations.
• This is a proposed change (not yet in force). The public had 30 days from June 18, 2022 to submit comments on the proposal.