Contract Monitoring

Contract monitoring is the ongoing oversight of a contract's performance and compliance after award. It covers whether the contractor delivers the required goods or services, meets the contract's terms and security obligations, and provides evidence or corrective action where something falls short.

The Government of Canada describes post-award contract administration as ensuring that the parties fulfil their obligations by monitoring performance, verifying deliverables, managing amendments, and ensuring compliance with contract terms and applicable legislation, as set out in a Canada Revenue Agency internal audit on contract administration. Monitoring is the part of that work that keeps watch on the contractor once the work has started.

Contract monitoring within contract administration

Contract monitoring is one component of post-award contract administration. The Canada Border Services Agency separates contract management, which spans pre-contractual through post-contract activities, from contract administration. In its description, contract administration includes observing and monitoring contractor performance, managing changes, maintaining contract records, handling claims and disputes, and closing out the contract.

Monitoring therefore sits alongside amendments, record keeping and closeout. It is the activity that produces the evidence the other tasks rely on.

What Treasury Board guidance requires

Treasury Board guidance assigns monitoring duties to named officials. For professional services, the Treasury Board guidance on procuring professional services states that responsible officials must monitor and document service delivery and verify that the contract terms are being met.

Where a contract carries security requirements, the Treasury Board mandatory procedures require business owners to actively monitor day-to-day contractor performance. That includes confirming continued compliance with the applicable security requirements.

• Monitor contractor performance and verify deliverables.
• Document service delivery on professional-services contracts.
• Confirm ongoing compliance with contract security requirements.

How departments monitor contracts in practice

Departmental audits show several formal approaches. Fisheries and Oceans Canada identified a Procurement Contract Monitoring Framework as an improvement measure in its management response, recorded in a Treasury Board horizontal internal audit on procurement governance.

Correctional Service Canada monitored contracts over $10,000 monthly, in its regions and at national headquarters, to support proactive disclosure of contracts and amendments over $10,000, according to its audit of contracting and procurement processes.

Canadian Heritage's audit of procurement and contracting operations describes monthly monitoring of procurement transactions by its Contracting and Material Management Directorate, with required corrections communicated to stakeholders.

Contract monitoring versus procurement monitoring

Contract monitoring is distinct from procurement monitoring. Procurement monitoring examines procurement transactions, compliance, trends, risks and the effectiveness of procurement controls across a department, as discussed in the Environment and Climate Change Canada audit findings on procurement delivery. Contract monitoring looks at one contract and the contractor's performance against it.

What contract monitoring means for a supplier

A supplier under a federal contract should expect its work to be checked against the contract. The sources establish that the supplier must perform the work and provide deliverables in accordance with the contract, comply with applicable security requirements, support verification of performance, and address documented deficiencies or required corrections.

The exact evidence, reporting, inspection, acceptance and remedy requirements depend on the individual solicitation and the resulting contract. Bid teams should read those clauses closely and plan the records and reporting needed to show that terms are being met.