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3.1.5. Procurement Risk Assessments for Complexity Level 1, 2 and 3 Procurements

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  1. As soon as the key elements of the procurement strategy have been determined, or when it is determined that Treasury Board approval is required, the contracting officer must complete a procurement risk assessment (PRA), prior to preparing an approval document. For further instructions on completing the approval documents refer to section 6.5 Procurement Approval Documents.
  2. The procurement risk assessment process is applied in order to determine the level of risk the Government of Canada is exposed to when entering into contracts. The assessment process also provides the foundation for risk response strategies that will be employed to mitigate procurement risks and provide guidance to the contracting officer when high risks are identified.
  3. The PRA process places an emphasis on:
    1. The early assessment of contract risk factors that may put a procurement at risk;
    2. Recording the risks and identifying the response strategies in the approval documents;
    3. Communicating these risks to management and clients, as necessary; and
    4. Ensuring that risks are re-assessed in the procurement when circumstances dictate, as part of monitoring and continuous improvement.
  4. At any time during the procurement process, there may be a requirement to re-assess the complexity of the procurement or risk in the procurement because of changing factors in the procurement or its environment. If this occurs, a revised procurement risk assessment must be prepared to determine if any of the risk factors have changed.
  5. For Complexity Levels 1 through 3 inclusive, the procurement risk assessments are available on the Procurement CornerThe information is only accessible to federal government department and agency employees. page on The Source, Public Works and Government Services Canada’s intranet site (available internally only).
  6. For Complexity Levels 4 and 5 inclusive, due to the high level of risk and uncertainty associated with these Complexity Levels, the contracting officer must contact the Risk Management Advisory Services (RMAS) who will work with the contracting officer in completing a custom risk assessment specific to the complexities of a Level 4 or 5 procurement.
  7. For procurements that fall under Schedule 3 of PWGSC’s Common Services Acquisitions Authorities (i.e., within Departmental Authority), contracting officers must identify the risks and the associated risk response measures for those risks identified as medium-high and high. Contracting officers are encouraged to discuss the issues associated with these risks with their supervisor, manager, or RMAS.
  8. For procurements that require the approval of Treasury Board, contracting officers must consult RMAS and work collaboratively to ensure that all relevant medium, medium-high and high risks are identified appropriately within the Treasury Board submission document. For more information on seeking Treasury Board approval, refer to section Procurement requiring a Treasury Board Submission.
  9. When approval is required to issue an amendment, a Procurement Risk Assessment for Amendments (PRAA) must be completed. See Annex 6.4.6 Contract Amendment Approval Instructions for more detail.
  10. For more information on the Risk Assessment Framework, see the Acquisition Program Risk Assessment FrameworkThe information is only accessible to federal government department and agency employees..