Treasury Board Directive

A Treasury Board Directive is a mandatory Government of Canada policy instrument established by the Treasury Board under its authority in the Financial Administration Act. It sets rules, requirements, roles and responsibilities for a specific area of federal administration, and federal departments and agencies subject to Treasury Board policies must follow it.

In procurement, the relevant instrument is the Directive on the Management of Procurement. Its objective is to ensure that the procurement of goods, services and construction obtains the assets and services needed to support government programs while delivering best value to the Crown. The full text is published by the Treasury Board of Canada Secretariat in its policy suite.

What the Directive on the Management of Procurement requires

The directive applies to the procurement of goods, services and construction. It expects procurement to demonstrate sound stewardship and best value, and to remain consistent with the government's socio-economic and environmental objectives.

• Procurement decisions must use risk-management practices, performance information and full life-cycle-cost assessment where possible.
• Federal procurement management must include governance and oversight mechanisms.
• Procurement actions must be fair, open and transparent.

These expected results are set out on the CanadaBuys page on planning and management of procurement.

Where the directive's authority comes from

The directive is established under section 7(1) of the Financial Administration Act. That is the source of the Treasury Board's power to issue mandatory policy instruments of this kind. A directive is therefore not guidance that buyers may choose to follow. It is a binding internal requirement for the federal organizations it covers.

CanadaBuys groups the procurement directive with other federal policies and directives that govern how departments buy.

The former Treasury Board Contracts Directive

Earlier procurement policy included a Contracting Policy and an appendix known as the Treasury Board Contracts Directive. That instrument prescribed monetary limits above which Treasury Board approval was required. Approval was needed when the amount payable under a contract or contractual arrangement exceeded the applicable limit for the contracting authority, and the amount counted included taxes, fees and amendments.

The former directive covered conventional contracts and also contractual arrangements, including arrangements for which bids were typically not sought. The archived text remains available in the Treasury Board policy library. The current Directive on the Management of Procurement is the instrument to read for today's requirements.

Standing offers, supply arrangements and accessibility

The directive shapes how federal buyers choose a procurement method. Public Services and Procurement Canada states that standing offers and supply arrangements must be used before a new procurement is considered, where the applicable federal process requires that approach. The method of supply guidance explains this step for buyers.

The directive also requires departments to consider accessibility requirements in federal procurement. See the CanadaBuys page on accessible procurement.

What it means for a supplier

The directive is principally an internal control framework for federal organizations, so it creates requirements for suppliers indirectly. The buying department or PSPC must obtain the required authority, use the correct procurement method, and include the applicable requirements in the solicitation or resulting contract.

A supplier must then comply with the solicitation and contract terms. In practice, this means reading each bid document closely, because accessibility, socio-economic and environmental requirements reach you through those terms. It also helps to know that buyers weigh life-cycle cost and risk, not only price, and that existing standing offers and supply arrangements may be used before a new competition is launched.