Purpose
The purpose of Policy Notification (PN) 127 is to inform all Public Works and Government Services Canada (PWGSC) Acquisitions Program (AP) contracting officers of the revised National Joint Council Travel Directive. The revised National Joint Council (NJC) Travel Directive indicates that incidental expense allowances are to be paid to public service employees rather than to travellers. This PN is issued to address the NJC Travel Directive dated July 1, 2017 regarding the exclusion of payment of incidentals to contractors.
Effective date
This PN is effective immediately. The Supply Manual (SM) and Standard Acquisitions Clauses and Conditions (SACC) Manual have been updated to reflect the changes.
Background
Treasury Board (TB) Contracting Policy 4.2.16 states: “The National Joint Council Travel Directive applies to travel costs incurred by contractors when these costs are a specific element of the contract.”. Solicitation documents and contracts incorporate by reference, travel rates published in Appendices B, C and D of the NJC Travel Directive. The revised NJC Travel Directive replaces the archived version dated April 1, 2008, which stated that incidentals were allowed for government employees and travellers, which included contractors authorized to travel on government business.
The NJC Travel Directive specifically defines the following:
“Employee: a person employed in the public service.
Traveller: a person who is authorized to travel on federal government business."
Please refer to National Joint Council Travel Directive definitions for further information.
Overview
The revised NJC Travel Directive allows incidental expenses for public service employees and does not reference ‘travellers' in regard to payment of incidentals. The directive states that a public service employee who is required to travel on government business shall be paid an incidental expense allowance that covers a number of miscellaneous expenses. As a result of the revision, the Supply Manual (SM) and SACC Manual have been updated.
Policy
The change to the NJC Travel Directive dated July 1, 2017 has implications for three different scenarios regarding the payment of incidentals to contractors in contracts that are issued under a procurement vehicle under the responsibility of PWGSC AP:
- Existing contracts with reference to incidentals: Continue to respect the terms and conditions of these contracts. Incidentals pursuant to government-approved travel will continue to be paid in accordance to the terms and conditions of the contract.
- Existing contracts without reference to incidentals: The decision to stop paying incidentals to contractors pursuant to government-approved travel, will be a business decision on a case-by-case basis, in consultation with Legal Services. This includes future call-ups (contracts) against existing standing offers and future contracts against existing supply arrangements.
- New contracts: Incidentals are not to be paid to contractors pursuant to government-approved travel in new contracts. Incidentals are not to be included in the basis of payment regarding travel costs for contractors undertaking government-approved travel in new procurements, including contracts issued against standing offers and supply arrangements. PWGSC's Standard Acquisitions Clauses and Conditions (SACC) Manual clauses will be revised to remove the term “incidentals” in the basis of payment clauses.
Summary of changes
Changes to the SACC Manual involve deleting incidental expenses from applicable clauses. Changes to the Supply Manual involve updating links to reference the latest NJC Travel Directive and include references to the Treasury Board Special Travel Authorities.
Contact information
Please direct any enquiries by email to the following address: tpsgc.dppapublications-appdpublications.pwgsc@tpsgc-pwgsc.gc.ca.