Minister Centralizes Procurement Authority

Summary#

This Order fixes June 9, 2025 as the day Part 18 of the Budget Implementation Act, 2005 comes into force. Practically, it puts exclusive authority for government procurements of services and construction under the Minister of Public Works and Government Services, while the minister intends to delegate most of that authority back to departments.

What it does#

• Brings Part 18 of the Budget Implementation Act, 2005 into force on June 9, 2025.
• Gives the Minister of Public Works and Government Services exclusive legal authority over procurements of goods, services, and construction across most of the federal government.
• Allows that minister to set conditions on, and revoke, delegation of procurement authority if departments do not follow procurement rules.
• Puts day-to-day contracting limits in the context of the Treasury Board’s Directive on the Management of Procurement (the Directive).
• Says the minister (through Public Services and Procurement Canada (PSPC)) will generally delegate authorities back to departments, and will work to consolidate delegation instruments and standardize procurement tools and templates.
• Notes a small number of entities have legislated exceptions to this arrangement (the Order cites Canada Revenue Agency, Election Canada, National Research Council as examples).

Who's affected#

• Most federal departments and agencies that buy goods, services or construction work.
• Procurement teams inside those departments and the central procurement agency, Public Services and Procurement Canada (PSPC).
• Businesses and contractors that supply services, construction, or goods to the federal government — because who runs a procurement can affect timelines and procedures.
• A few bodies with statutory exceptions (the Order lists Canada Revenue Agency, Election Canada, National Research Council as examples).
• If unclear: the Order describes broad application to government organizations subject to the Department of Public Works and Government Services Act, but does not list every affected entity.

Why it matters#

• Centralizing authority aims to make procurement more consistent and easier to oversee across the whole federal government.
• The minister’s power to revoke delegations is meant to improve compliance with procurement rules and make enforcement easier.
• For most departments, PSPC plans to return delegated authority, so immediate day-to-day contracting may not change much.
• For suppliers, the change could matter if PSPC takes direct control of specific procurements or applies new standardized terms and templates.
• The government consulted with departments in 2023 and 2024 (surveyed 34 departments, had in-person talks with 26), which reportedly supported bringing the amendments into force as long as delegations would be restored.