Contracting authorities

A contracting authority is the delegated authority to procure goods and services and sign the related contracts. In Canadian federal procurement, a Government of Canada agency defines the term this way, and the authority is exercised by authorized departmental or common-service-provider officials within limits set by legislation, Treasury Board policy and delegated authorities.

The term also points to a person. In a solicitation, the contracting authority is the official named in the document, and that person is the supplier's point of contact for the procurement. NATO bodies use the same term for an official or organization authorized to enter into, administer or terminate a contract or purchase order.

Where federal contracting authority comes from

Government contracts are entered into by His Majesty the King as represented by a minister. Under the Department of Public Works and Government Services Act, the Minister of Public Works and Government Services holds contracting authority and delegates it to buyers who conduct the contracting process. CanadaBuys explains this delegation of procurement authority for government buyers.

Treasury Board sets the boundaries. Its Directive on the Management of Procurement establishes contracting limits and requires compliance with the Financial Administration Act, the Government Contracts Regulations and applicable trade-agreement thresholds. Contracting authority is subject to ministerial delegation. It generally cannot be delegated between ministers, except for delegations provided by common service providers.

Delegated authority covers more than one-off tenders. It includes the authority to enter into contracts for goods or services under a standing offer or supply arrangement.

Which organization acts as the contracting authority

• Public Services and Procurement Canada (PSPC): PSPC is the Government of Canada's main procurement arm. Its buyers act under delegated contracting authority and are identified in solicitation documents.
• Departments and agencies: Each may use its own delegated authorities for procurements within applicable limits.
• PSPC on behalf of another organization: When a requirement exceeds an organization's delegated procurement authority, PSPC may act as contracting authority and issue and administer contracts and amendments for that organization.
• Shared Services Canada (SSC): For certain information-technology requirements, SSC may act as the contracting authority.

A contracting authority is not the same as an approval authority or spending authority. In Canadian procurement, approvals and signatures can involve separate functions.

The contracting authority in a solicitation and contract

PSPC tells suppliers that their only point of contact during a solicitation is the contracting authority identified in the solicitation document. Its guidance for bidders directs questions to that person and asks suppliers to follow the communications procedures in the solicitation. The same applies to security requirements: questions about a specific opportunity go to the contracting authority named in the solicitation.

After award, the contracting authority manages the resulting contract and any changes to it. NATO solicitation language uses the term in a similar way, for the official responsible for executing the solicitation and for awarding and administering the resulting contract.

Contracting authority in NATO procurement

NATO documents use a few related terms. A contracting authority is an authorized official or organization that executes or administers a contract or purchase order. A contracting officer is the person who executes and manages a contract consistent with their delegated authority. NATO's procurement policy separately defines procurement authorities as NATO or national bodies procuring goods, works and services with NATO common funding. These can include NATO bodies, national authorities, host nations, user nations, NATO budget holders and NATO agencies.

Canadian suppliers can meet the term in NATO solicitations and purchase-order terms, where it names the official authorized to award, administer or terminate the requirement.

What it means for a supplier

• Treat the named contracting authority as your official procurement contact.
• Send questions, clarifications and other communications only by the method and before the deadlines the solicitation specifies.
• Follow the solicitation's instructions for bids, amendments and security information.
• Do not assume a technical or program representative can change the solicitation or contract unless the documents give that person such authority.
• After award, direct administration, change and performance matters to the contracting authority or other official designated in the contract.