Changes to Government Contracts Rules

Summary#

These are final amendments to the Government Contracts Regulations (SOR/2023-82). The changes came into force on April 28, 2023 and mostly reduce some federal contracting rules about advance payments, bidding, and certain contract wording.

What it does#

• Removes the requirement for the Treasury Board to approve the timing and amounts of advance payments when Treasury Board approval for a contract was already required. This means departments can adjust dates or amounts of advance payments without asking Treasury Board again.
• Removes the general regulatory provisions about making advance and progress payments and repeals the definition of progress payment.
• Replaces the English wording in one part of the rules about returning a negotiable security deposit to a contractor when there is no Crown claim and the contract was either satisfactorily performed or terminated for reasons not the contractor’s fault.
• Exempts two types of contracts from the Regulations’ normal bid-solicitation requirement:
  • service contracts for expert advice or testimony used to develop or protect His Majesty’s legal position in litigation, potential litigation, or dispute resolution; and
  • contracts needed to implement a settlement agreement, court order, or judgment in a class proceeding where His Majesty is a party.
• Updates a name in the schedule: the title Commissioner of the Communications Security Establishment is replaced by Intelligence Commissioner in the Regulations’ list.
• Updates English wording from “Her Majesty” to “His Majesty” where needed.

Who's affected#

• Federal contracting authorities and departments. They will do less paperwork when advance-payment timing or amounts change.
• Contractors who receive advance payments or security deposits. They may see faster adjustments and clearer rules on returning deposits.
• Lawyers, expert witnesses, and firms that provide expert testimony or legal-advice services to the Crown. These contracts can now be awarded without the usual public bid process in order to protect legal strategy.
• Service providers who implement settlement agreements or court orders in class proceedings. These contracts can also be arranged without normal bid solicitations.
• The Intelligence Commissioner, because the Regulations’ schedule now uses that official title.
• The government analysis says there is no expected impact on small businesses, Indigenous governing bodies, or Canada’s trade obligations.

Why it matters#

• It reduces administrative red tape inside government. Departments can respond faster when contract payment dates or amounts need small fixes.
• It protects legal strategy and settlement processes by allowing the government to hire experts or implementation services without public solicitations that might reveal sensitive information.
• It clarifies who holds certain responsibilities and updates a title to reflect current law (the Intelligence Commissioner).
• The change could slightly increase the number of non-competitive contracts, but the government expects this to be small and limited to sensitive legal or settlement work.