Purpose
The purpose of Policy Notification (PN) 126 is to notify all Public Works and Government Services Canada (PWGSC) Acquisitions Program (AP) contracting officers and any other persons providing procurement services on behalf of AP about the ability to request price certification and audit services from foreign governments.
Effective date
PN-126 and related changes to the Supply Manual are effective immediately.
Background
As a reciprocal service between governments, Canada and several North Atlantic Treaty Organization (NATO) allied nations provide each other with price certification and audit services. Acquisitions Program (AP) contracting officers, involved in non-competitive procurements with foreign suppliers, either as the prime contractor or as significant subcontractor to the work, may wish to request such services from the government of the country in which the foreign supplier is located. The output of a price certification or audit request is generally a report which provides some high-level information or an opinion statement from an official of that foreign government.
Foreign price certification and audit service requests between Public Works and Government Services Canada (PWGSC) and allied foreign governments are coordinated by PWGSC's International Contract Support Group (ICSG), a division of the Price Support Directorate (PSD).
The services may include:
- price certifications: pre-award reviews of price proposals, or specific elements therein, including labour and overhead rates, level of effort, direct materials, other direct costs, profit, exchange rate, and price or rate escalation; and
- audits: post-award requests to conduct accounting system reviews, incurred cost audits, labour time system recording reviews, and termination audits.
Summary of changes
Supply Manual
- Section 9.56 Price Certifications and Audits with Foreign Suppliers and Subcontractors was added to the Supply Manual to inform contracting officers of the service by foreign governments to provide price certifications and audits of foreign suppliers and subcontractors, and provide procurement staff directions on how to access these services
- Section 4.70.35.15 Audit of Contract with a Foreign Contractor and sub-article (c) of section 5.70 One Responsive Bid were added to the Supply Manual to provide complementary information as well as a link to section 9.56
For more details, refer to the affected Supply Manual sections listed below.
Standard Acquisition Clauses and Conditions (SACC) Manual
There are no changes to the SACC Manual.
Standard Procurement Templates
There are no changes to the Standard Procurement Templates.
Contact Information
Please direct any enquiries to the PWGSC Price Certification Coordinator by email at the following address: TPSGC.pacertificationdeprix-appricecertification.PWGSC@tpsgc-pwgsc.gc.ca.