Directive

A directive is an authoritative instruction that establishes required actions, controls, or procedures. Governments and international organizations use the term for binding or mandatory policy instruments, which set out what an organization must do rather than what it might consider doing.

In Canadian federal procurement, the best-known example is the Directive on the Management of Procurement, issued by the Treasury Board. It requires that procurement of goods, services, and construction obtain the assets and services needed to support government programs while ensuring best value to the Crown. Suppliers see its effects in how federal solicitations are planned, approved, and managed, even though the directive is addressed to government departments.

The Directive on the Management of Procurement

The Treasury Board of Canada Secretariat publishes this directive as a Government of Canada-wide instrument. It applies to all Government of Canada procurements covered by the Policy on the Planning and Management of Investments. Its stated objective, set out in the directive text on the Treasury Board site, is to obtain the assets and services that support government programs and services while delivering best value to the Crown.

The directive covers procurement planning, contracting authorities, approvals, risk management, governance, and stewardship. It applies to goods, services, and construction, so it is not limited to one type of solicitation. It also identifies contracting approval limits and provides that contracts or contractual arrangements within specified limits may be entered into without Treasury Board approval.

Legal basis and the policies it replaced

The procurement directive was established under section 7(1) of the Financial Administration Act. The CanadaBuys page on planning and management of procurement lists it among the policies and directives that guide federal buyers.

The directive replaced two earlier instruments: the Contracting Policy and the Policy on Decision Making in Limiting Contractor Liability in Crown Procurement Contracts. The Treasury Board announced the change in a contracting policy notice on the new directive. Suppliers who still see references to the Contracting Policy in older documents should know it has been superseded.

Expected results under the directive

CanadaBuys identifies the results the directive is meant to deliver. These are:

• fair, open, and transparent procurement
• risk-informed procurement decisions
• consideration of full life-cycle costs where possible
• effective governance and oversight
• sound stewardship and best value

These results explain why federal solicitations carry defined evaluation methods, documented approvals, and risk considerations. They describe the standard the government holds itself to when it buys.

How NATO uses the term

The word carries the same sense of mandatory force in international settings. NATO's Directive on the Security of NATO Classified Information is described as binding and mandatory in nature. The NATO archive copy shows that it covers security classifications and markings, control and handling, storage, reproduction, dissemination and transfer, records, disposal, destruction, and security incidents.

Suppliers working on defence or security contracts that involve NATO information may meet requirements drawn from an instrument of this kind.

What a directive means for a supplier bidding on Canadian public contracts

The Directive on the Management of Procurement is an internal government policy instrument. It is not normally a standalone bid form, and suppliers do not respond to it directly. Your obligations come from the specific solicitation, the contract clauses, and the instructions issued under the government's procurement framework.

Where a solicitation or contract incorporates a directive, or requirements derived from one, you must meet those stated requirements. These can include approval, security, risk, or performance-management requirements, along with any requested evidence or certifications. Read the solicitation documents closely, note which requirements are mandatory, and prepare the supporting documents before the bid closes.

Understanding the directive also helps you anticipate buyer behaviour. Knowing that federal buyers must plan carefully, document decisions, and weigh risk and life-cycle costs helps you position your offer around best value rather than price alone.