Ratification by Treasury Board

Ratification by Treasury Board means obtaining after-the-fact approval from the Treasury Board of Canada for a contracting action that a federal contracting authority took without first getting the Treasury Board authority required. It is a corrective step. It is not the ordinary advance approval that lets a department enter a contract in the first place. Treasury Board guidance says the request should be made as soon as possible, preferably within 60 days after the work was authorized or began (Treasury Board policy text).

The term comes from the federal contracting-control framework, in particular section 11.2.12, "Ratification of contracts," of the former Contracting Policy. Current buyer guidance on CanadaBuys describes the same situation: a client enters into a contract without Treasury Board approval when approval should have been obtained (CanadaBuys buyer's guide).

The two circumstances that lead to ratification

The former Contracting Policy identified two situations in which ratification could arise (Treasury Board policy text):

• Administrative error: an oversight meant the department did not obtain Treasury Board authority when it was needed.
• Pressing emergency: the applicable emergency authority was not used and reported within the required period.

In both cases the contract was entered into, or work began, before the approval was in place. Ratification is how the department brings the file back into compliance.

What a ratification submission must contain

CanadaBuys guidance lists what the buyer's submission has to cover (CanadaBuys buyer's guide):

• the circumstances that led to the action;
• the type and value of the contract awarded;
• whether it was possible to solicit offers;
• where work has already begun, the client's certification that it agreed with the contractor starting work; and
• the corrective measures taken to address the administrative oversight.

The former Contracting Policy added that the submission should indicate that the department's minister had been informed of the situation and had agreed to the start of work before ratification was sought (Treasury Board policy text).

The timing expectation

The request should be made as soon as possible. The preferred window is within 60 days of the work being authorized or initiated (Treasury Board policy text). The short window reflects the purpose of the process: Treasury Board sees the gap quickly, and the department documents what happened while the facts are fresh.

A documented example: Health Canada dental-services contracts

A Procurement Ombudsman follow-up report shows the process in practice. It identified Health Canada dental-services contracts awarded in fiscal years 2009-2010 through 2013-2014 as requiring consideration of Treasury Board ratification under section 11.2.12 of the Contracting Policy (Procurement Ombudsman follow-up report). The example shows that ratification applies to ordinary service contracts, not only to unusual or high-profile purchases.

What ratification means for a supplier

Ratification is the buyer's internal approval responsibility. Suppliers do not file it and there is no supplier application. A request to start work, or the fact that work has begun, does not by itself show that a contract was properly authorized. CanadaBuys guidance expressly contemplates contracts entered into before required approval, and it asks the client to document the circumstances and any pre-authorized work (CanadaBuys buyer's guide).

Before starting work, bid teams should confirm in writing that the contracting authority has issued a contract or amendment. If a client asks you to begin early, expect the client to certify its agreement to that start as part of any ratification request. Keep your own records of the instruction and the date.