The following table includes the current rates to be applied in the Capital Employed (Section 5.2.1) factors of the Profit Principles for negotiated pricing.
The rates to be used in the profit determination for contracts starting July 2023 and onwards will be the latest figure published in the table below. The calculated rates will be posted one week after the end of the month.
| Profit Factor | Pricing Guide Section Reference | Type of Rate | Calculated Monthly Rate October 2023 |
Source |
|---|---|---|---|---|
| Working Capital Tier 1 | Section 5.2.1.1 | Monthly 1-Year GIC Rate (3-year Rolling Average) | 1.70% | Bank of Canada (V80691339) |
| Working Capital Tier 2 | Section 5.2.1.1 | Monthly Bank Prime Rate (3-year Rolling Average) | 4.24% | Bank of Canada (V80691311) |
| Fixed Capital Tier 1 | Section 5.2.1.2 | Fixed Percentage | 1.00% | PSPC |
| Fixed Capital Tier 2 | Section 5.2.1.2 | Low Capital Intensity Rate | 5.00% | PSPC |
| Fixed Capital Tier 2 & Tier 3 | Section 5.2.1.2 | Monthly Canada Long-Term BBB Corporate Bond Rate (3-year Rolling Average) |
4.74% | FTSE Russell |
In the case that profit determination is related to previous periods, applicable rates during the same periods must be used. For example, if the negotiation is for the period of January 2021, the applicable rates for January 2021 must be used.
Should you have any questions regarding the rates, please contact Price Advisory Group using the following generic inbox:
TPSGC.PASoutiendesprix-APPriceSupport.PWGSC@tpsgc-pwgsc.gc.ca