Amendment

In Canadian government contracting, an amendment is a formal change to an existing contract. It is used to delete, modify or add conditions to the original contract, and once it is issued it becomes part of that contract. The term is used by Public Services and Procurement Canada (PSPC) and other federal contracting authorities. PSPC contracting guidance sets out this meaning.

The word also applies earlier in the process. A bid solicitation amendment is a change to the solicitation document made while suppliers are still preparing responses. Examples include a new closing date, a revised statement of work or changed evaluation criteria. Both kinds of amendment alter the terms suppliers work under, so each one needs close attention.

Contract amendments and solicitation amendments

A contract amendment changes an agreement that has already been awarded. A solicitation amendment changes the request for bids before the contract exists. The tools are similar, but the effects differ. A contract amendment binds the supplier and the Crown once it is formally issued. A solicitation amendment changes what every bidder must respond to.

Related terms describe the direction of a contract change. A positive amendment increases the contract value. A negative amendment decreases it. Both are amendments, and both can trigger approval and reporting requirements.

How PSPC handles amendments to a bid solicitation

PSPC states in its guidance on bid solicitation preparation that a contracting authority may amend a bid solicitation during the response period. In the Centralized Professional Services System, the amendment can revise the response closing date, the statement of work, or the mandatory or point-rated evaluation criteria.

• The amendment must be provided to all suppliers invited to respond.
• That includes suppliers that previously said they would not bid.
• It also includes qualified suppliers that requested the solicitation after a Notice of Proposed Procurement (NPP) was posted.
• The amendment cannot change elements of the original solicitation in a way that invalidates the underlying supplier search. Those elements include the categories, levels, security requirement, and region or metropolitan area.

Approval and disclosure rules for contract amendments

Federal rules treat amendments as part of a contract's overall value. Under the Treasury Board Directive on the Management of Procurement, departments must consider expected amendments when they decide whether Treasury Board approval is required. Contracting authorities must also obtain the required approval before entering into or amending a contract or contractual arrangement where the applicable approval limit is exceeded.

Amendments are also subject to proactive disclosure. Treasury Board proactive-disclosure guidance identifies positive and negative contract amendments over $10,000 as reportable, along with positive amendments that raise the amended contract value above $10,000. These items are reported subject to the applicable disclosure rules.

What an amendment means for a supplier bidding on Canadian public contracts

Treat every amendment as part of the solicitation or contract. Suppliers should take these steps:

• Review every amendment issued for a solicitation, not only the original document.
• Incorporate the amended requirements, dates, terms and evaluation criteria into the bid response.
• Follow any revised response deadline and submission instructions.
• Acknowledge receipt of the amendment where the procurement process requires it. The solicitation determines the acknowledgement method.

For an awarded contract, perform the work according to the amended contract only after the amendment has been formally issued and incorporated into the contract. Missing a solicitation amendment can leave a bid answering outdated requirements, so bid teams should track amendments from the first notice to the closing date.