ARCHIVED Contracts with Task Authorizations

Introduction

The purpose of Policy Notification (PN)-75R1 is to provide new direction to procurement personnel regarding contracts with task authorizations. The revised approach introduces new tools and guidelines and includes changes to the Supply Manual(SM) and new clauses for the Standard Acquisitions Clauses and Conditions (SACC) Manual.

Background

In the last few years, several government audits have taken place that included reviews of contracts with task authorizations. These reviews raised issues relative to the application of financial controls, separation of duties, contract amendments, employer-employee relationships, and adherence to contractual conditions. The Acquisitions Branch has decided to update its procedures to improve the effectiveness and consistency with which contracts with task authorizations are used and managed.

Effective Date

This PN is effective immediately. However, for existing procurements where the Contract Planning and Advance Approval document or Procurement Plan has already been submitted for approval, the implementation of the new instructions within this PN is at the contracting officer's discretion, unless otherwise advised by management.

Revisions to the current policy

The following significant changes have been made to the current policy on contracts with task authorizations:

1. Additional instructions are provided to highlight the differences between contracts with task authorizations, standing offers and supply arrangements.
2. Previous information related to contracts with task authorizations is now organized more closely to the order of the steps involved in the procurement process.
3. The Supply Manual will no longer state that Directors General have to maintain an oversight of all contracting activity related to task authorizations within their sector/region.
4. Directors now may approve or prohibit classes of procurement in which task authorizations may be used.
5. There is no longer a minimum approval authority for contracts with task authorizations at the Director level. The approval authority for contracts with task authorizations and for their modifications is now in accordance with the approvals and authorities for contracts detailed in Chapter 6 of the Supply Manual.
6. Contracting officers who have been delegated services contract approval and signing authority now have no maximum limit on the dollar amount for authorizing individual task authorizations up to the total approved contract value, unless directed otherwise by management.
7. The pertinent definitions in the Glossary have been revised.
8. Procedural guidance is now provided for Public Works and Government Services Canada (PWGSC's) clients regarding contracts with task authorizations in the Guide to Preparing and Administering Task Authorizations – for PWGSC's clients.
9. A Record of Agreement template is included to help in establishing the roles and responsibilities between the contracting officers and the clients when contracts with task authorizations are issued by PWGSC.
10. A Task Authorization form PWGSC-TPSGC 572 is provided for clients other than the Department of National Defence (DND). The form DND 626 Task Authorization will still be used in contracts for DND.
11. New and revised SACC Manual clauses have been included.
12. PWGSC applies the principle of separation of duties to task authorizations issued for PWGSC's own needs; i.e. the PWGSC individual who signs the task authorization must not also certify the associated invoices. In its Guide to Preparing and Administering Task Authorizations - for PWGSC's Clients, PWGSC recommends this practice to all its clients.

Annex A contains all the changes to the Supply Manual. The previous procedures in 3.30, 3.35, 3.35.1, and Annex 3.4 have been replaced in their entirety. Procedures 3.40, 3.45, 8.70.20 and two definitions of the Glossary have been revised. Procedure 6.25.40 has been deleted.

Annex B includes new and revised SACC Manual clauses.

Contact Persons

For more information on the Supply Manual changes, contact Veronica  Nazareth, by phone at 819-956-5024, or by e-mail at: veronica.nazareth@tpsgc-pwgsc.gc.ca.

For more information on the new SACC Manual clauses, contact Anne Villeneuve by phone at 819-956-0458, or by e-mail at: anne.villeneuve@tpsgc-pwgsc.gc.ca.

Annex A - Changes to the Supply Manual

Chapter 3 - Procurement Strategy

3.30 Methods of Supply
(2011-01-11)

Public Works and Government Services Canada (PWGSC) uses a variety of approaches to meet procurement requirements. This spectrum ranges from specific contracts which precisely define the deliverables to be provided to a specific client by a specific date, to various procurement instruments for use by a single or many departments and agencies, for needs which are sometimes less well defined at the outset.

There are essentially three methods of supply for procuring goods and services, which are:

1. contracts (including contracts with task authorizations);
2. standing offers, and
3. supply arrangements.

The contracting officer, in consultation with the client, chooses the method of supply that best satisfies the client's requirements.

For additional information on when to use a contract (including contracts with task authorizations), a standing offer or a supply arrangement, see 3.35, 3.40 and 3.45. Contracting officers should also consult the comparison table in Annex 3.8 to assist them in determining which method of supply should be used when the precise nature, quantity and/or timing of the need cannot be set out in advance.

3.35 Contracts
(2011-01-11)

Contracts for goods, services and construction are generally used to meet unique, well-defined requirements for a single client but they may also be used to meet the requirements of more than one client. They are used where a standing offer or supply arrangement is not warranted.

For more information on the required content of a contract, see Chapter 4.

3.35.1 Contracts with Task Authorizations

3.35.1.1 Definition
(2011-01-11)

A contract with Task Authorizations (TAs) is a method of supply for services under which all of the work or a portion of the work will be performed on an "as and when requested basis" through predetermined conditions including an administrative process involving task authorizations. Contracts with TAs are used in service contracting situations when there is a defined need by a client to rapidly have access to one or more categories of service(s) that are expected to be needed on a repetitive basis during the period of the contract. Under contracts with TAs, the work to be carried out can be defined but the exact nature and timeframes of the required services, activities and deliverables will only be known as and when the service(s) will be required during the period of the contract. The contract with TAs must stipulate the conditions for issuing TAs. A TA is a structured administrative tool enabling PWGSC or a client to authorize work by a contractor on an "as and when requested" basis in accordance with the conditions of the contract. TAs are not individual contracts.

3.35.1.5 Application
(2011-01-11)

Contracts with TAs may be used for service requirements such as:

1. Professional Services;
2. Informatics Professional Services;
3. Technical Investigation and Engineering Studies;
4. some types of Repair and Overhaul (R&O) services where work authorizations issued are considered task authorizations, i.e. Additional Work Requirements (AWR); Mobile Repair Party (MRP); Special Investigations and Technical Studies (SITS); Project Work Order (PWO).

Contracts with TAs are not to be used for shipbuilding or ship refits. Nor are they to be used for those R&O work authorizations that are not considered task authorizations, i.e. Selection Notice and Priority Summary (SNAPS); Repairable Materiel Request (RMR); Quartermaster Transfer Orders (QTO); and Vehicle Movement Orders (VMO).

Although TAs are used for service requirements, they may be used to purchase incidental goods that are related to a specific service requirement when these goods will later become the property of the government. When this incidental acquisition of goods will be necessary, the Contract Planning and Advanced Approval (CPAA) form or procurement plan (see 3.35.1.15) and the solicitation and resulting contract must address the conditions for this incidental acquisition of goods, with appropriate limitations defined. TAs must not be used to have the contractor acquire goods on behalf of the client that are outside the scope of the work in order to circumvent the normal procurement process. For instance, a contract with TAs for engineering services cannot be used to purchase software unless this requirement was part of the original solicitation and the related payment provisions of the contract.

Directors may approve or prohibit classes of procurement in which TAs may be used.

3.35.1.10 Conditions of Use
(2011-01-11)

Contracts with task authorizations that are improperly used can lead to major problems between the government and its suppliers, between PWGSC and its clients, and for the government in the eyes of the public. When a contract with TAs is being considered as a method of supply for a particular procurement, before seeking approval for the procurement strategy, the contracting officer must follow all the applicable procedures detailed in 3.35.1 In instances when the TAs are issued only by PWGSC, some of these procedures may not apply (i.e. roles and responsibilities, setting client limits for issuing TAs, the guide for PWGSC's clients, the Record of Agreement, some reporting requirements).

As conditions of use of contracts with TAs, the contracting officer must:

1. ensure the contract with TAs is the appropriate method of supply for these services. (Refer to 3.35.1.5 and Annex 3.8 attached, and other sections relative to methods of supply included in the Supply Manual).
2. decide whether to allow the client to issue TAs, and determine the financial limits for issuing TAs by clients. These decisions should be made by PWGSC in consultation with the client in accordance with 3.35.1.30.
3. provide the Guide for Preparing and Administering Task Authorizations – for PWGSC's Clients (Appendix A to Annex 3.4) to the client with an explanation of its purpose and discuss as required.
4. reach an agreement with the client regarding the roles and responsibilities of both organizations, including responsibilities for reporting. In this regard, the use of the Record of Agreement template pertaining to the use of Task Authorizations (Appendix B to Annex 3.4) is strongly encouraged. The agreement must include the provision for timely receipt of documentation such as:
   
   1. copies of all TAs with their attachments;
   2. copies of all revisions to TAs with their attachments;
   3. copies of all claims/invoices, supported by reports.
5. follow the procedures detailed in 3.35.1.15 to 3.35.1.60.
6. discuss, as required, the use of contracts with TAs with the client, in particular the administrative process for authorizing and issuing TAs.

3.35.1.15 Approval Documents for Contracts with Task Authorizations
(2011-01-11)

For contracts with TAs, the Contract Planning and Advanced Approval (CPAA) form or procurement plan for a contract with TAs must address the following, as applicable:

1. the reasons why the services are deemed suitable for this method of supply.
2. the justification for the proposed financial limits for issuing TAs by clients.
3. a statement confirming that the Guide for Preparing and Administering Task Authorizations – for PWGSC's Clients was provided, and discussed with the client, as required.
4. a statement confirming that an agreement was reached with the client regarding roles and responsibilities of both organizations or a statement confirming the client's commitment to reaching such an agreement before issuance of the bid solicitation.
5. a statement confirming that discussions took place with the client on the use of contracts with TAs, before the client authorizes the first task.
6. a description of the contract monitoring process and activities to be implemented or carried out.

See Chapter 6 for additional instructions on the use and preparation of the CPAA form or procurement plan.

The approval authority for contracts with TAs, and for amendments which will amend the provisions of a contract with TAs, is in accordance with the approvals and authorities for contracts detailed in Chapter 6.

3.35.1.20 Bid Solicitations and Resulting Contract Documents
(2011-01-11)

Contracting officers must ensure that the bid solicitation and resulting contract document(s) that they issue and use to establish the subsequent contract with task authorizations follows the standard approach for issuing solicitations (see Chapters 3 and 4). For any portion of work to be performed on an "as and when requested" basis, the bid solicitation and the resulting contract document must include the following:

1. a clear Statement of Work (SOW) describing, in broad terms, the scope of work that will be performed pursuant to issued TAs.
2. a description of the administrative process for authorizing and issuing TAs and the applicable SACC Manual clauses relative to TAs. In the case of multiple contracts with TAs, the evaluation portion of the solicitation must include the contractors' order of ranking process (generally as part of the basis of selection clause) and, the resulting contract portion must include the contractors' order of ranking and the work allocation process (to be completed at the time of contract award). The following SACC Manual clauses relative to TAs must be used, as applicable: B9051C, B9053C, B9054C, B9056C, and C9011C.
3. the task authorization limits for authorizing and issuing TAs by the client in accordance with the guidance in 3.35.1.30
4. the applicable form for authorizing and issuing TAs. See 3.35.1.25 for further guidance.
5. the payment provisions applicable to the TA such as basis or bases of payment (for example, SACC Manual clause C0206C) and method(s) of payment.
6. Canada's obligation and Canada's total liability:
   
   1. all the work under a contract will be performed through TAs:
      • the SACC Manual clause B9030C must be used to limit Canada's obligation for TAs and to provide a minimum work guarantee to the Contractor; and,
      • the SACC Manual clause C9010C must be used when the contract with TAs is subject to a Limitation of Expenditure to limit Canada's total liability under the contract for all approved TAs. The "Total estimated cost" shown on the cover page of the contract document must equal the total of the limitation of expenditure stipulated under the clause.
   2. when only a portion of the Work will be performed through task authorizations:
      • the SACC Manual clause B9031C must be used to limit Canada's obligation under the task authorizations; and,
      • the SACC Manual clause C6001C must be used when the contract with TAs is subject to a Limitation of Expenditure to limit Canada's total liability under the contact. The "Total estimated cost" shown on the cover page of the contract document must equal the total of the limitation of expenditure stipulated under the clause.

As contracting officers are responsible for monitoring the use of TAs, they must also consider including a provision for reporting of usage of TAs by the contractor (i.e. SACC Manual clause B9056C). Also see 8.70.20 (b) for details on administration of contracts with task authorizations.

3.35.1.25 Forms
(2011-01-11)

The contracting officer should use the form PWGSC-TPSGC 572 Task Authorization, for the authorization of tasks by both PWGSC and clients other than the Department of National Defence (DND). This form is available through the PWGSC Forms Catalogue Web site. Alternatively, any locally developed and approved task authorization forms may be used for non-DND contracts. The form DND 626 Task Authorization must be used in contracts for DND. Forms PWGSC-TPSGC 942 (Call-up against a Standing Offer), PWGSC-TPSGC 1379 (Work Arising or New Work), and GC 111 (Purchase Order) must not be used as a task authorization form in a contract with TAs. (NOTE: Only government employees have access to the above mentioned forms.)

3.35.1.30 Setting financial limits on Individual Task Authorizations
(2011-01-11)

Task authorizations may be authorized and issued by the client and/or PWGSC. PWGSC contracting officers who have been delegated services contract approval and signing authority have no maximum limit on the dollar amount for authorizing individual TAs up to the total approved contract value, unless directed otherwise by their management. The decision to allow TAs to be issued by a client is made by PWGSC in consultation with the client. When the client will be allowed to authorize TAs, the PWGSC contracting officers must establish a maximum limit on the dollar amount of a TA (excluding Goods and Services Tax (GST) or Harmonized Sales Tax (HST)) authorized by the client. In establishing such limits for individual TAs and any revisions to those TAs, contracting officers should seek to achieve a balance between operational effectiveness and contract risk management, and should consider the following when setting the client's TA limit:

1. whether an agreement has been reached between the client and PWGSC on the conditions of use of TAs. (See 3.35.1.10).
2. the client and the industry's past performance history relative to the effective use of contracts with TAs, as experienced by the contracting officer and PWGSC colleagues/managers.
3. the procurement/contract management expertise that exists in the client department:
   
   1. Whether training is available/required.
   2. Whether the client department policies and procedures are in place and whether these are enforced. For example, the internal procedure for the administration of TAs for the Department of National Defence (DND) is contained in article 3.3.2 of DND's Procurement Administration Manual (PAM).
4. operational requirements, e.g. time sensitivity of tasks.
5. contract scope and risk associated with individual tasks:
   
   1. The clarity and level of detail in the contract statement of work.
   2. Anticipated complexity and duration of individual tasks.
   3. Whether tasks can be easily priced.
   4. The average value of TAs, the frequency of tasks and the number of tasks anticipated during the period of the contract.
6. as applicable, the total estimated value of work that will be carried out through the portion of the work that is not performed through TAs in relation to the total estimated value of work that will be performed through TAs.
7. the frequency of reporting on task authorizations.

Furthermore, in setting the value at which PWGSC must authorize individual TAs, contracting officers must ensure that this PWGSC involvement will add value to the task authorization process while at the same time ensuring that PWGSC maintains adequate control over the TA process. Added value can be in several forms, such as financial oversight or comparisons with similar contracts for other clients to ensure value for money. Setting the client's TA limit should be subject to a department's experience in administering TAs and contracting officers may want to consider setting a limit such that PWGSC authorizes a representative amount of TAs.

3.35.1.35 Separation of Duties
(2011-01-11)

The Treasury Board Directive on Directive on Delegation of Financial Authorities for Disbursements requires that the authority to enter into contract or amendment must be separate from the certification authority required under section 34 of the Financial Administration Act. In Chapter 3 of the 2008 December Report of the Auditor General of Canada , the Office of the Auditor General raised the issue of separation of duties with respect to task authorizations and stated that combining procurement and certification functions under the responsibility of one individual was not in keeping with the Treasury Board Policy on Delegation. As a result, although task authorizations are not individual contracts, PWGSC applies the principle of separation of duties to task authorizations issued for PWGSC's own needs; i.e. the PWGSC individual who signs the task authorization must not also certify the associated invoices. In its Guide to Preparing and Administering Task Authorizations - for PWGSC's Clients, PWGSC recommends this practice to all its clients. However, as specified in the above-mentioned TB Directive, where the client's current processes in place or other circumstances do not allow such separation of duties, alternate control measures may be implemented by the client. The client is responsible to ensure that its current processes or alternate control measures can withstand scrutiny under audit.

3.35.1.40 Authorizing and Issuing Task Authorizations
(2011-01-11)

The client organization authorized to issue tasks to the contractor is responsible for authorizing and issuing TAs in accordance with the process detailed in the contract. As a minimum, the client organization is responsible for:

1. ensuring the work requirement of the TA including the deliverables and the schedule, as applicable, is in accordance with the scope of the contract.
2. providing the contractor with the task description, the payment provisions and obtaining the level of effort, as applicable.

   Setting dates or timeframes for completing tasks must take into consideration the expiry date of the contract. A task must be completed on or before the expiry date of the contract, however, if a task cannot be completed by such date, a contract amendment to extend the contract period to the task completion date must be issued by the contracting officer before the TA can be issued.

3. finalizing the task authorization, including the total value of the TA (GST/HST extra), in accordance with the contract.
4. obtaining all applicable signatures (client, or PWGSC, or both, as applicable; and contractor), and the date of these signatures on the TA.

3.35.1.45 Administration of the Task Authorizations by PWGSC's Clients
(2011-01-11)

For details, see the Guide to Preparing and Administering Task Authorizations - for PWGSC's Clients at Appendix A to Annex 3.4.

3.35.1.50 Revision of a TA by the Client
(2011-01-11)

The client may revise a TA that it originally authorized subject to the work being within the scope and value of the contract as well as within the client authority limit set in the contract. Any revision to the TA is subject to concurrence by the contractor. A TA revision, which will bring the TA value above the client TA limit, must be referred to the contracting officer.

An authorized TA may be revised to either reduce an activity (or activities) or to cancel the task in its entirety, however a TA cannot be terminated for default or for convenience. In situations when the contractor is in default or for the convenience of Canada, the termination provisions of the applicable general conditions will apply and the contract may be terminated either entirely or in part for default or for convenience. Such matters must be referred to the PWGSC contracting officer.

3.35.1.55 Monitoring and Oversight
(2011-01-11)

Contracting officers must monitor issued TAs to ensure they comply with the contract conditions. They must also review progress reports to ensure the work is being performed in accordance with the contract and the issued TAs and to monitor the amount expended against the contract value.

If the monitoring of the authorized and issued TAs demonstrates that the TA process is not in accordance with the contract or the agreement with the client, the specific corrective measures must be implemented. This is addressed in the Record of Agreement template at Appendix B to Annex 3.4, paragraph 5. The contracting officer must notify the contractor when the limit of the client's authority specified in the contract is reduced or revoked. Furthermore, invoking penalty or termination provisions should not be undertaken without consultation with Legal services.

3.35.1.60 Reporting
(2011-01-11)

After issuing a contract with TAs or an amendment to this type of contract, contracting officers must report on the procurement as follows:

1. For Automated Buyer Environment (ABE) users: on the main page of the Procurement Summary, click on "Program ID", and select "Contract that allows Task Authorizations."
2. For Automated Data Capture (ADC) users: include the following statement when submitting the ADC procurement report, "Program ID: Contract that allows Task Authorizations."

3.40 Standing Offers
(2011-01-11)

(a) and (b) No change.

(c) This method of supply is used to satisfy the requirements of departments and agencies for a specified period, when precise details on expected quantities for the period are not known in advance. Standing offers may authorize one or more clients to issue call-ups for goods or services directly to offerors up to the maximum call-up limits indicated in the standing offer. If so stated in the standing offer, PWGSC may issue call-ups above the client call-up limit.

(d) to (q) No change

3.45 Supply Arrangements
(2011-01-11)

(a) and (b) No change.

(c) An SA may be used when:

1. the overall requirement cannot be clearly defined at the outset and it is proposed to establish a pool of screened suppliers from which clients and PWGSC solicit bids for individual requirements;
2. a commodity is procured on a regular basis (goods or services);
3. a standing offer is not suitable, due to variables in resulting call-ups (e.g. varying methods/basis of payment, or the statement of work or commodity cannot be adequately defined in advance);
4. a simplified solicitation, undertaken by users/clients, can be used to obtain competitive bids from the pre-qualified suppliers;
5. selection will be based on best value, as described in the SA and the subsequent solicitation; and
6. it is more efficient for PWGSC to operate as the provider of the framework on behalf of other users/clients and not necessarily as the contracting officer.

(d) to (f) No change

Annex 3.4: Contracts with Task Authorizations - Process
(2011-01-11)

This annex includes the following appendices related to contracts with task authorizations:

1. Appendix A: Guide to Preparing and Administering Task Authorizations – for PWGSC's Clients
2. Appendix B: Record of Agreement template

Appendix A (to Annex 3.4): A Guide to Preparing and Administering Task Authorizations - for PWGSC's Clients
(2011-01-11)

1.0 Purpose

The purpose of the Guide to Preparing and Administering Task Authorizations is to provide procedural guidance to Public Works and Government Services Canada's (PWGSC's) clients when contracts for services containing task authorizations are issued by PWGSC and the client is authorized to issue individual task authorizations (TAs). This guide incorporates advice on preparing and administering TAs. Many of the principles discussed in this document equally apply to other mechanisms by which goods or services are ordered under a contract on an “as and when requested” basis such as a service order. For the Department of National Defence (DND) requirements, this guide supplements the internal procedure for administering TAs documented in article 3.3.2 of DND's Procurement Administration Manual (PAM).

2.0 Definitions

2.1 Contracts with Task Authorizations

A contract with Task Authorizations (TAs) is a method of supply for services under which all of the work or a portion of the work will be performed on an "as and when requested basis" through predetermined conditions including an administrative process involving task authorizations.

2.2 Task Authorization

A TA is a structured administrative tool enabling PWGSC or a client, or both to authorize work, by a contractor on an "as and when requested" basis in accordance with the conditions of the contract.

3. Application of Contracts with Task Authorizations

1. A contract with TAs may be used when there is a definite need for services but the exact nature, the timeframes of the required services, activities and deliverables will only be known when the service(s) will be required during the period of the contract. PWGSC determines when the client's needs would be best addressed by the use of a contract with TAs. If the client is authorized to issue TAs, the limit of this approval would be stipulated in the contract. All TAs in excess of this limit have to be forwarded to PWGSC for authorization. A contract with TAs can be set up to cover multiple years. This approach can eliminate the need to establish a new contract every year. Multiple contracts with task authorizations may be issued in certain circumstances when one contract would not be sufficient to fulfill all requirements. In such cases, the contractors' order of ranking, the specific work allocation process, Canada's total liability for all issued TAs and the authorization limit would be identified in the contracts.
2. Some examples of contracts with TAs are as follows:
   
   1. a requirement for translation where the work is generally defined and the specific tasks for translation (e.g. a required translation of 50,000 words) are on an as and when requested basis;
   2. a requirement for maintenance of equipment where the general maintenance work is defined in the contract and, when the equipment failure/issue occurs, the specific maintenance task is authorized on an as and when requested basis;
   3. a requirement for an informatics technology specialist over a defined period, but the specific activities and deliverables cannot be identified in advance nor the timing or level of effort predicted.
3. An advantage of using contracts with TAs is the mitigation of contractual risks as a result of better-defined tasks, the establishment of a level of effort on a per task basis and more precise pricing for each specific task thereby ensuring better management of the contract.
4. When they are properly used, contracts with TAs provide a structured framework offering operational speed and flexibility to clients. Contracts with TAs will be successful provided that there is a clear understanding and agreement between PWGSC and the client as to their respective roles and responsibilities relating to the management of the contract including for authorizing and issuing TAs and task authorization management.. The improper use of contracts with TAs can lead to major problems between the government and its suppliers, between PWGSC and its clients, and for the government in the eyes of the public.

4. Conditions of Use

1. As a condition of use of contracts with TAs, the PWGSC contracting officer will, as a minimum:
   
   1. ensure the contract with TAs is the appropriate method of supply for these required services in consultation with the client.
   2. decide whether the client will be allowed to authorize and issue TAs, and determine the financial limit of this authority. These decisions will be made in consultation with the client and the associated provisions will be detailed in the contract. All TAs in excess of the determined limit must be forwarded to PWGSC for authorization and issuance.
   3. consult with the client to reach an agreement on the roles and responsibilities of both organizations including the client's responsibilities for reporting.
   4. discuss, as required, the use of contracts with TAs with the client and in particular the administration of TAs.

5. Task Authorization Process and Administration

The client authorized to issue tasks to the contractor is responsible for issuing TAs in accordance with the TA process and administration of the TA detailed in the contract. If the task does not seem to be within the scope of the work, PWGSC must be consulted before any TA is contemplated.

The responsibilities of the client are detailed below:

1. TA Statement of Work (SOW) or task description
   
   1. ensure the task (or revised task) description of the work required (activities to be performed, deliverables to be submitted, completion dates for major activities or submission dates for deliverables or, as applicable, both) included in the TA is in accordance with the contract Statement of Work (SoW). This includes:
      
      • ensuring that the text of the TA does not have the potential to create employer-employee relationships. See the Canada Revenue Agency publication RC 4110 - Employee or Self-Employed?; and
      • Setting dates or timeframes for completing tasks taking into consideration the expiry date of the contract. A task must be completed on or before the expiry date of the contract; however, if a task cannot be completed by such date, a contract amendment to extend the contract period to the task completion date would have to be issued by PWGSC before the TA can be authorized and issued.
   2. provide to the contractor the task or description of the work , the schedule, the quantity, and the associated payment provisions, all in accordance with the conditions of the contract.
   3. facilitate knowledge transfer at the end of the work to reduce reliance on the same consultant or contractor.
   4. consult with the contractor and the contracting officer, as applicable.
2. Task Authorization Stage
   
   1. the response from the contractor must be reviewed by the client to ensure conformity with the conditions and payment provisions stipulated in the contract and its amendments, e.g. predetermined categories of resources and rates or pricing stipulated in the contract and its amendments are used by the contractor to quote on the level of effort for the specific task.
   2. if resources are named in the contract (i.e. specific individuals are identified for specific contract categories), replacement must be in accordance with the conditions of the contract or subsequent amendments and meet the criteria used in the selection of the individual. However, for contracts that do not contain named resources, then the client should complete and retain on file an evaluation of such new named resource. The evaluation must completely assess such resource ensuring he/she meets all qualifications as stipulated in the contract or its amendments.
   3. before authorizing a task, the client must ensure that:
      
      • the task is within the client's authority limit; if the value of the task exceeds the client authorization limit contained in the contract and contract amendments, the TA must be forwarded to PWGSC for authorization.
      • the task can be completed on or before the expiry date of the contract, and,
      • the authorization of the task will not result in the cumulative value of all task authorizations to exceed the limitation of expenditure for all TAs.
   4. the TA is finalized, including the total value of the TA task, in accordance with the conditions of the contract, and the client and/or PWGSC authorizes the TA by signing and dating the TA.
   5. the contractor signs and dates the TA authorized by the client and/or PWGSC and provides the signed original with their attachments and a copy as detailed in the contract.
3. Start of the work for a TA

   Work on a TA cannot commence until a contract allowing task authorizations has been awarded and the TA has been authorized and issued in accordance with the conditions of the contract. Contracts must never be awarded and TAs must never be authorized retroactively. The TA form must be authorized by the client and/or, if required, by PWGSC and signed by the contractor before the work starts.

4. Task Authorization Management
   
   1. before the contract is issued or the TA process implemented, the client must inform PWGSC when personnel other than the project or technical authority are involved in the TA process. The client must also confirm that appropriate training on the use of TAs has been provided to such personnel.
   2. the client must notify the PWGSC contracting authority when the client authority named in the contract is to be replaced so that the contract can be amended.
   3. the client must create and update a record of all tasks authorized under a contract and provide such a record to PWGSC as agreed between the two organizations.
   4. the client must monitor task performance, work delivered, conduct proper cost review and provide reports to the PWGSC contracting authority as agreed between both organizations.
   5. the client must have specific processes in place to ensure that billing rates and categories of resources or other payment provisions included in authorized and issued TAs are in accordance with the conditions of the contract.
   6. the client must provide complete and timely reporting of performance or arising issues under a TA to the PWGSC contracting authority.
   7. the client must ensure that the dollar value does not exceed the individual TA financial/dollar limit(s) specified in the contract with task authorizations or any limit placed on the cumulative value of TAs under the contract.
   8. before authorizing payment of an invoice in accordance with departmental procedures for an authorized and issued TA , the client must ensure that:
      
      • the timesheets are in accordance with the contract, where applicable;
      • the services have been performed, received and accepted; if applicable, an individual who has direct knowledge of the level of effort reported must verify the level of effort reported on the timesheet for the contractor resource;
      • the invoice is consistent with the conditions and payment provisions stipulated in the contract or subsequent amendments and all required substantiating documentation is completed, approved and on file. See paragraph 7 below relative to separation of duties.

6. Revising a TA authorized by the client

1. The client may revise a TA that it originally authorized subject to the work being within the scope and value of the contract as well as within the client authority limit set in the contract. Any revision to the TA is subject to concurrence by the contractor. A TA revision, which will bring the TA value above the client TA limit, must be referred to the PWGSC contracting officer.
2. An authorized TA may be revised to either reduce an activity (or activities) or to cancel the task in its entirety, however a TA cannot be terminated for default or for convenience. In situations when the contractor is in default or for the convenience of Canada, the termination provisions of the applicable general conditions will apply and the contract may be terminated either entirely or in part for default or for convenience. Such matters must be referred to the PWGSC Contracting Authority.

7. Separation of duties

The Treasury Board (TB) Directive on Delegation of Financial Authorities for Disbursements requires that the authority to enter into contract or amendment must be separate from the certification authority under section 34 of the Financial Administration Act. In Chapter 3 of the 2008 December Report of the Auditor General of Canada, the Office of the Auditor General raised issues relative to the application of separation of duties with respect to task authorizations and stated that combining procurement and certification functions under the responsibility of one individual was not in keeping with the TB Policy on Delegation. As a result, although task authorizations are not individual contracts, PWGSC applies the principle of separation of duties to task authorizations issued for PWGSC's own needs; i.e. the PWGSC individual who signs the task authorization must not also certify the associated invoices. PWGSC recommends this practice to all its clients. However, as specified in the above-mentioned TB Directive, where the client's current processes in place or other circumstances do not allow such separation of duties, the client may implement alternate control measures. The client is responsible to ensure that its current processes or alternate control measures can withstand scrutiny under audit.

8. Corrective measures

The PWGSC Contracting Authority may take corrective measures such as reducing or revoking the client's authority to issue TAs where there are indications that the TA process is not working in accordance with the contract and the agreement between the client and PWGSC.

9. Tips

9.1 Method of Supply Planning

1. Do not request that PWGSC establish more labour categories and contracts than are necessary.
2. Do not add new contract categories to engage specific individuals.

9.2 Employer-Employee Relationships:

1. Avoid using employment-type language in describing the work such as specifying the number of hours of work per day/week or the manner in which the work is to be conducted.
2. Avoid long-term assignments or a continuing relationship where a steady income stream from the department or agency is involved; state clearly the start and completion dates and ensure the contractor sets his or her hours of work.
3. Avoid controlling how the contractor carries out the work; work and results should only be overseen by the project/technical authority.
4. Avoid having the contractor work on government premises.

9.3 Administration of Task Authorizations

1. Do not split a requirement to get around the client authority limit stipulated in the contract.
2. Avoid task descriptions for TAs that could create a conflict of interest.
3. Ensure the price is fair and reasonable for the specific task and in accordance with the basis of payment in the contract.
4. Ensure there are sufficient funds.

Appendix B (to Annex 3.4): Record of Agreement Template - for PWGSC's Clients

Remarks to the PWGSC Contracting Authority:
(Delete the instructions before forwarding to the client the completed e-mail and Record of Agreement).

1. A Record of Agreement should be used when it has been determined that the needs of the client would be best met through a contract with a Task Authorization (TA) process subject to any sector/regional operating procedures regarding its use. To that effect, the following is a TA Record of Agreement template that would formalize the administrative procedures between the client and Public Works and Government Services Canada.
2. The completed template may be sent as an e-mail to the appropriate client and client acceptance should be received before submission of the Contract Plan and Approval (CPAA) or Procurement Plan approval.
3. An e-mail template is provided below:

Subject: Requisition No. ___________, e-mail TA Record of Agreement

Dear _________ (Insert client name)

We considered that your requirement contained under the above subject requisition would best be met through a contract with a Task Authorization (TA) process. To that effect, the following is the TA Record of Agreement that would formalize the administrative procedures between our organizations for this requirement. A copy of the Guide to Preparing and Administering Task Authorizations for PWGSC's clients is attached.

In order to proceed with Public Works and Government Services Canada's (PWGSC) internal approval of this proposed procurement strategy, we require your department's confirmation that it agrees to the TA Record of Agreement described below, namely that it understands its roles, responsibilities and reporting requirement with respect to the proposed TA process as well as PWGSC's right to implement corrective actions if PWGSC considers that necessary.

Please confirm your understanding of the TA process described herein, by return e-mail, preferably by close of business ________ (insert time and date), as a delay in responding could impact the planned solicitation release date.

Should you wish to discuss any of the items specified herein, please do not hesitate to contact me.

Yours truly,

______________ (Insert name of the PWGSC Contracting Authority)

1. Purpose

The purpose of this document is to formalize a Record of Agreement between PWGSC and the Authorized Client regarding their respective roles and responsibilities when using the contract with task authorizations identified above (refer to the “Matrix of Roles and Responsibilities” attached hereto). It is imperative that the Authorized Client and the PWGSC contracting authority work closely together at all times during the period of the contract.

2. Period of the Agreement

The conditions of this Record of Agreement will be in effect for the entire duration of the contract.

3. Task Authorization

As specified in the contract (once awarded), the Authorized Client's designated authority may authorize individual task authorizations up to a limit of $ ______ (insert amount), Goods and Services Tax (GST) or Harmonized Sales Tax (HST) extra, inclusive of any revisions to the authorized TAs. Any TA in excess of that limit or any revisions to the authorized TA that would increase the TA total value above that limit must be authorized by ________ (insert, as applicable, “the Authorized Client designated authority and the PWGSC Contracting Authority" or "the PWGSC Contracting Authority") before issuance.

4. Contract Amendment Process

The Authorized Client understands that it must not request the contractor to perform any work in excess of or outside the scope of the contract and it must not issue TAs where the cumulative value of all TAs would exceed the contract value. Any anticipated changes to the contract must be authorized, in writing, by the PWGSC contracting authority through the issuance of a contract amendment before any additional work or TA is authorized. At any time during the contract period, when there is a need to amend the contract, the Authorized Client must inform the PWGSC contracting authority accordingly, in writing (e-mail), and provide him/her the following:

1. a clear and accurate rationale for amending the contract; e.g. the reason why the work cannot be completed by the contract expiry date, why there is a shortfall of funds, etc.;
2. the cumulative value of all TAs (GST or HST extra) issued to date;
3. the total contract expenditures (GST or HST extra) to date;
4. the estimated price breakdown for any additional work required;
5. the consequences of not amending;
6. justification for the required amendment versus initiating a new procurement; and
7. the status of the replacement procurement in the case of on-going work.

If PWGSC determines that the contract will not be amended, the Authorized Client will be advised accordingly. If the contract can be amended, the Authorized Client will then forward to the PWGSC contracting authority a duly signed requisition amendment (PWGSC-TPSGC 9200).

5. Contract Management – Corrective Measures

If there are indications that the Authorized Client is not complying with the conditions of this agreement, the PWGSC contracting authority will discuss the matter with the Authorized Client's designated representative, the contractor or both and take any of the following corrective measures, deemed appropriate:

1. change the detail and/or frequency of the information reporting;
2. discuss with the Authorized Client's staff responsible for issuing TAs, or with the contractor if needed;
3. reduce any dollar limit that might have been placed on individual TAs and/or suspend or cancel the Authorized Client's authority limit for TA authorization.

Both parties agree to comply with the conditions of this Record of Agreement. Further, it is understood and agreed that this agreement may be amended from time to time, as necessary. Except for any change resulting from a corrective measure specified in 5 (a) to (c) above, amendments will not be implemented until an amended Record of Agreement has been formalized and accepted via e-mail by both parties.

Annex 3.8: Comparison of Different Methods of Supply
(2011-01-11)

The table below provides a comparison between the different methods of supply used when the precise nature, timing and/or quantity of the need cannot be set out in advance.

Chapter 6 - Approvals and Authorities

6.25.40 Contracts with Task Authorizations

Deleted in its entirety.

Chapter 8 - Contract Management

8.70.20 Administration of Contracts with Task Authorizations
(2010-XX-XX)

1. The following paragraphs highlight some considerations regarding the administration of task authorizations. (See 3.35.1 for information on issuing and monitoring contracts with task authorizations).
2. A detailed and current record of all authorized tasks must be kept for each contract with a task authorization process. The contractor or the client department is responsible to create and update this record, as established in consultation with the client department during the procurement planning stage. This record may contain but is not limited to:

For each authorized task:

1. the authorized task number and, as applicable, task revision number(s);
2. a title or brief description of each authorized task, as applicable;
3. the total estimated cost specified in the authorized TA of each task, GST or HST extra, as applicable;
4. the total amount, GST or HST extra, expended to date against each authorized task (as applicable);
5. as applicable, when a task is completed, the committed amount should be reduced to reflect the actual expenditure and the change should be reflected in the record of task authorizations;
6. the start and completion date for each authorized task,as applicable;
7. the active status of each authorized task.

For all authorized tasks:

1. the amount (GST or HST extra) specified in the contract (as last amended, as applicable) as Canada's total liability to the contractor for all authorized TAs; and
2. the total amount, GST or HST extra, expended to date against all authorized task authorizations

Before authorizing a task, the organization authorized to issue the task to the contractor (normally the client) must ensure that:

1. the task can be completed on or before the expiry date of the contract with task authorizations. If it cannot be, the task authorization cannot be issued until after the contracting officer amends the period of the contract with task authorizations;
2. the total estimated cost of the TA, GST or HST extra, is within the client's authority limit relative to individual task authorizations specified in the contract (If the total value exceeds that limit, the TA must be forwarded to PWGSC for authorization and issuance); and
3. the task authorization will not cause the exceeding of the amount (GST or HST extra) specified in the contract as Canada's total liability to the contractor for all authorized TAs.

When a task is completed, the committed amount may be reduced to reflect the actual expenditure, and such changes must be reflected in the record of task authorizations.

See 3.35.1.35 relative to the separation of duties in TAs.

Glossary

task authorization
A TA is a structured administrative tool enabling PWGSC or a client to authorize work by a contractor on an “as and when requested” basis in accordance with the conditions of the contract. TAs are not individual contracts. (2010-XX-XX) (autorisation de tâches)

task authorization contracts
A contract with task authorizations (TAs) is a method of supply for services under which all of the work or a portion of the work will be performed on an “as and when requested basis” through predetermined conditions including an administrative process involving task authorizations. Contracts with TAs are used in service contracting situations when there is a defined need by a client to rapidly have access to one or more category of service(s) that are expected to be needed on a repetitive basis during the period of the contract. Under contracts with TAs, the work to be carried out can be defined but the exact nature and timeframes of the required services, activities and deliverables will only be known as and when the service(s) will be required during the period of the contract. (2010-XX-XX) (contrat avec autorisation de tâches)

Annex B - Changes to the SACC Manual

(REVISED) B9030C Minimum Work Guarantee - All the Work - Task Authorizations

Remarks:

Use the following clause to limit Canada's obligation under the contract to the amount stated in the clause when all the work under a contract is to be performed through task authorizations. Use in conjunction with clause C9010C.

Alternatively, use clause B9031C to limit Canada's obligation when only a portion of the work is to be performed through task authorizations.

For more information, consult 3.35.1.20 (a) (vi) of the Supply Manual.

Text:

1. In this clause,

   "Maximum Contract Value" means the amount specified in the "Limitation of Expenditure" clause set out in the Contract; and

   "Minimum Contract Value" means ____ (insert the applicable percentage of the Maximum Contract Value or a fixed dollar amount).

2. Canada's obligation under the Contract is to request Work in the amount of the Minimum Contract Value or, at Canada's option, to pay the Contractor at the end of the Contract in accordance with paragraph 3. In consideration of such obligation, the Contractor agrees to stand in readiness throughout the Contract period to perform the Work described in the Contract. Canada's maximum liability for work performed under the Contract must not exceed the Maximum Contract Value, unless an increase is authorized in writing by the Contracting Authority.
3. In the event that Canada does not request work in the amount of the Minimum Contract Value during the period of the Contract, Canada must pay the Contractor the difference between the Minimum Contract Value and the total cost of the Work requested.
4. Canada will have no obligation to the Contractor under this clause if Canada terminates the Contract in whole or in part for default.

(NEW) B9031C Canada's Obligation - Portion of the Work - Task Authorizations

Remarks:

Use the following clause when a portion of the work under a contract is to be performed through task authorizations to limit Canada's obligation for the work that is performed through task authorizations.

Alternatively, use clause B9030C when all the work is to be performed through task authorizations.

Use this clause in conjunction with C6001C.

For more information, consult 3.35.1.20 (a) (vi) of the Supply Manual.

Text:

Canada's obligation with respect to the portion of the Work under the Contract that is performed through task authorizations is limited to the total amount of the actual tasks performed by the Contractor.

(NEW) B9051C Task Authorization - Department of National Defence

Remarks:

Use the following clause in Department of National Defence contracts with task authorizations.

For more information, consult 3.35.1 of the Supply Manual.

Text:

The administration of the Task Authorization process will be carried out by  _____________ (insert: the applicable Department of National Defence designation, i.e. D MAR P 4-6-8). This process includes monitoring, controlling and reporting on expenditures of the contract with task authorizations to the Contracting Authority.

(NEW) B9053C Task Authorization - Order of Ranking

Remarks:

Use the following clause in contracts with task authorizations when two or more contracts will be awarded.

Use this clause in conjunction with B9054C.

For more information, consult 3.35.1 of the Supply Manual.

Text:
___ (insert number) contracts were awarded as a result of Public Works and Government Services Canada bid solicitation number: ___ (insert number). The contractors' order of ranking is as follows:

Ranked first:____________
Ranked second: ___________
(Insert as many lines as there are contractors)

(NEW) B9054C Task Authorization Process

Remarks:
Use the following clause in contracts with task authorizations.

Contracting officers may need to modify the text of this clause to address their specific requirement. For Department of National Defence (DND) contracts with task authorizations, contracting officers may need to delete the reference to Project and Technical Authority and insert the name, address and DND designation, as applicable.

For more information, consult 3.35.1 of the Supply Manual.

Text:

Task Authorization:
The Work or a portion of the Work to be performed under the Contract will be on an "as and when requested basis" using a Task Authorization (TA). The Work described in the TA must be in accordance with the scope of the Contract.

Instructions to contracting officers: Insert the following paragraph when more than one contract will be awarded.
As more than one contract has been awarded for this requirement, a request to perform a task will be sent to the first ranked contractor. If that contractor confirms in writing that it is unable to perform the task as a result of previous commitments under a TA, the request to perform a task will then be forwarded to the contractor ranked second. This process will continue until the task can be performed by another contractor. If no contractor can perform the task, Canada reserves the right to acquire the required Work by other means. A contractor may advise the __________ (insert "Project" or "Technical" Authority") and the Contracting Authority in writing that it is unable to carry out additional tasks as a result of previous commitments under a TA and no request to perform a task will be sent to that contractor until that contractor has given notice in writing to the __________ (insert "Project" or "Technical" Authority") and the Contracting Authority that it is available to perform additional tasks.

Task Authorization Process:

1. The __________ (insert "Project" or "Technical" Authority) will provide the Contractor with a description of the task using the "Task Authorization Form for non-DND clients" or "DND 626, Task Authorization Form" or "Task Authorization" form specified in Annex __.
2. The Task Authorization (TA) will contain the details of the activities to be performed, a description of the deliverables, and a schedule indicating completion dates for the major activities or submission dates for the deliverables. The TA will also include the applicable basis(bases) and methods of payment as specified in the Contract.
3. The Contractor must provide the __________ (insert "Project" or "Technical" Authority), within __ calendar days of its receipt, the proposed total estimated cost for performing the task and a breakdown of that cost, established in accordance with the Basis of Payment specified in the Contract.
4. The Contractor must not commence work until a TA, authorized by the __________ (insert"Project" or "Technical" Authority) has been received by the Contractor. The Contractor acknowledges that any work performed before a TA has been received will be done at the Contractor's own risk.

(NEW) B9056C Periodic Usage Reports - Contracts with Task Authorization

Remarks:
Use the following clause in contracts with task authorizations when periodic usage reports are required from the contractor.

The reporting periods and the number of calendar days by which each report must be submitted after the reporting period must be indicated in the clause.

The contracting officer must ensure that the contractor fulfills all the reporting requirements detailed in
the contract.

For more information, consult 8.70.20 of the Supply Manual.

Text:

The Contractor must compile and maintain records on its provision of services to the federal government under authorized Task Authorizations issued under the Contract.

The Contractor must provide this data in accordance with the reporting requirements detailed below or in Annex "___". If some data is not available, the reason must be indicated. If services are not provided during a given period, the Contractor must still provide a "NIL" report.

The data must be submitted on a ___________ (insert"quarterly basis" or specify an alternate reporting period) to the Contracting Authority.

(If an alternate reporting period is required, delete the quarterly periods provided below and define the alternate reporting period.)
The quarterly periods are defined as follows:

1st quarter: April 1 to June 30;
2nd quarter: July 1 to September 30;
3rd quarter: October 1 to December 31; and
4th quarter: January 1 to March 31.

The data must be submitted to the Contracting Authority no later than ____ (insert number of days) calendar days after the end of the reporting period.

Reporting Requirement - Details

A detailed and current record of all authorized tasks must be kept for each contract with a task the authorization process. This record must contain (contracting authority to edit the text as applicable):

For each authorized task:

1. the authorized task number or task revision number(s);
2. a title or a brief description of each authorized task;
3. the total estimated cost specified in the authorized Task Authorization (TA) of each task, GST or HST extra;
4. the total amount, GST or HST extra, expended to date against each authorized task;
5. as applicable, when a task is completed, the committed amount should be reduced to reflect the actual expenditure and the change should be reflected in the record of TAs;
6. the start and completion date for each authorized task;and
7. the active status of each authorized task,as applicable.

For all authorized tasks:

1. the amount (GST or HST extra) specified in the contract, as Canada's total liability to the contractor for all authorized TAs; and
2. the total amount, GST or HST extra, expended to date against all authorized TAs.

(NEW) C9010C Limitation of Expenditure - Cumulative Total of all Task Authorizations

Remarks:

Use the following clause in conjunction with B9030C when all the work will be performed through task authorizations. Alternatively, use clause C6001C in conjunction with B9031C whenonly a portion the work is to be performed through task authorizations.

For more information, consult 3.35.1.20 (a) (vi) of the Supply Manual.

Text:

1. Canada's total liability to the Contractor under the Contract for all approved Task Authorizations (TAs), inclusive of any revisions, must not exceed the sum of $ _______. Customs duties are _____ (insert " included", "excluded" or "subject to exemption, as applicable") and the Goods and Services Tax or Harmonized Sales Tax is extra, if applicable.
2. No increase in the total liability of Canada will be authorized or paid to the Contractor unless an increase has been approved, in writing, by the Contracting Authority.
3. The Contractor must notify the Contracting Authority in writing as to the adequacy of this sum:
   
   1. when it is 75 percent committed, or
   2. four (4) months before the contract expiry date,
   3. as soon as the Contractor considers that the sum is inadequate for the completion of the Work required in all approved TAs, inclusive of any revisions,

      whichever comes first.

4. If the notification is for inadequate contract funds, the Contractor must provide to the Contracting Authority, a written estimate for the additional funds required. Provision of such information by the Contractor does not increase Canada's liability.

(NEW) C9011C Task Authorization Limit

Remarks:
Use the following clause in contracts with task authorizations (TAs) when the project or technical authority may authorize individual TAs up to a specific limit.

Contracting officers may need to modify the text of this clause to address their specific requirement. For Department of National Defence (DND) contracts with task authorizations, contracting officers may need to delete the reference to Project and Technical Authority and insert the name, address and DND designation, as applicable.

For more information, consult 3.35.1 of the Supply Manual.

Text:
The __________ (insert: "Project" or "Technical" Authority) may authorize individual task authorizations up to a limit of $_______ (insert amount), Goods and Services Tax or Harmonized Sales Tax included, inclusive of any revisions.

Any task authorization to be issued in excess of that limit must be authorized by the _________ (insert "Project" or "Technical" Authority") and Contracting Authority "or" the Contracting Authority") before issuance.