Confirming Order or Pre-Contractual Work Process

A Confirming Order situation occurs when goods or services were purchased without delegation of authority or to circumvent procurement procedures established in the Procurement Roadmap.

At ESDC, the Procurement Operations Team under the Chief Financial Officer Branch (CFOB) manages all Confirming Order requests from Fund Centre Manager organizations.

Typically, a Confirming Order situation occurs when a contractor proceeds with work authorised by the business owner/client without a valid contract, including additional work performed after the contract period, for example (not all inclusive):

  • The work was authorized, performed and completed before a contract was awarded.
  • The contractor continues with work included in the contract after the ending date of the contract.
  • The contractor proceeds with authorized additional work (not included in the scope of work) after the contract has expired.

A Confirming Order situation usually results in invoices for goods or services received from a Contractor which cannot be paid as there is no corresponding contract or purchase order (PO).

Pre-Contractual work occurs when the work has started without a contract but is still on-going. In this case, a contract with Pre-Contractual clause to cover the part of the work already performed must be created in SAP by a Procurement Specialist.

In cases of Pre-Contractual work, all work must be stopped immediately when discovered. The work can only resume after a contract has been awarded by the Procurement Specialist.

Both situations (confirming orders and pre-contractual work) put ESDC at risk and should be avoided at all times.

These processes do not apply to Interdepartmental Letters of Agreement (ILAs).

Confirming Order Process

  1. Clients must first fill out the Confirming Order or Pre-Contractual Work Substantiation Form (DOCX, 25 KB) available at Tools & Templates for Admin Professionals and Managers.
  2. Once the Substantiation Form is completed, (no signatures are required at this stage) clients must create a Purchase Requisition in myEMS (SAP). They must also ensure that an electronic copy of the Substantiation Form, the invoice(s) and any other relevant documents are included with the Purchase Requisition.
  3. The Procurement Specialist responsible for the file, reviews the Substantiation Form and ensures that the invoice(s) and the purchase requisition amounts match.
  4. The Procurement Specialist seeks management advice within the Procurement Operations Team. Changes to the form may be requested to the clients.
  5. Once completed, the Procurement Specialist signs the form and sends it back for the client’s signatures. The client returns the signed form to the Procurement Specialist. Note that the signatures of the Fund Centre (FC) Manager and the FC immediate supervisor are mandatory. For requirements over $5K, the signature of the DG or ADM is also required. Secure Electronic Signatures are accepted.
  6. The Procurement Specialist submits the Substantiation Form for approval/signature by AMPP management.
  7. After approval is obtained, the Procurement Specialist creates a Confirming Order in SAP and sends it to the contractor for signature.
  8. When the signed Confirming Order is received, the Procurement Specialist provides a copy of the Confirming Oder and the signed Substantiation Form to the client and to the Cost Centre Manager.
  9. The Cost Centre Manager can now proceed with the payment of the invoice(s), in accordance with the normal invoice payment procedures, using the Confirming Order number as reference.

Confirming Orders exceeding departmental basic contracting limits ($25K for goods and $3.75M for services) must be approved by Public Services and Procurement Canada (PSPC) or Treasury Board. ESDC will remain liable for any complaints resulting from such actions. PSPC may refuse to put a Confirming Order (or contract) in place.

Pre-Contractual Work Process

  1. Clients must first fill out the Confirming Order or Pre-Contractual Work Substantiation Form (DOCX, 25 KB) available at Tools & Templates for Admin Professionals and Managers.
  2. Once the Substantiation Form is completed, (no signatures are required at this stage) clients must create a Purchase Requisition in myEMS (SAP). They must also ensure that electronic copies of the Substantiation Form, the invoice(s) and any other relevant documents (Procurement Requirement Form, Statement of Work, Security Requirements Check List, Intellectual Property, Privacy clauses, etc.) are included with the Purchase Requisition.
  3. The Procurement Specialist responsible for the file reviews the Substantiation Form and the provided documentation and seeks management advice within the Procurement Operations Team. Changes to the form may be requested to the clients.
  4. Once completed, the Procurement Specialist signs the form and sends it back for the client’s signatures. The client returns the signed form to the Procurement Specialist. Note that the signatures of the Fund Centre (FC) Manager and the FC immediate supervisor are mandatory. For requirements over $5K, the signature of the DG or ADM is also required. Secure Electronic Signatures are accepted.
  5. The Procurement Specialist submits the Substantiation Form for approval/signature by AMPP management. It may be recommended that a contract is not awarded. In this case, a Confirming Order will be required for payment of the already performed work.
  6. After approval is obtained, the Procurement Specialist creates a contract and ensures that the appropriate Pre-Contractual work clauses are included, covering for the part of the work that has already been performed.
  7. The Procurement Specialist sends the contract to the Contractor for signature. Once signed, a copy of the contract and of the signed Substantiation form is provided to the client and the Cost Centre Manager. The Contractor can proceed with the remaining work.