Phase Four: Contract Management, Payment and Close Out

The requirement files must be kept up to date and well documented. Copies of all amendments and task authorizations, invoice, status reports etc. must be kept on file.

Clients (project managers, requisitioners, cardholders) may consult the Requirement File Checklist (DOCX, 26 KB) for a list of items to be kept on the requirement file.

The procurement specialist authorized to issue tasks to the contractor is responsible for issuing TAs in accordance with the process detailed in the contract including the applicable triage process. As a minimum, the procurement specialist is typically responsible for:

1. ensuring that the task description (or statement of work) or the TA including the deliverables, 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.
3. setting dates or timeframes for completing tasks. A task must be completed 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 may be issued by the contracting authority.
4. obtaining appropriate signatures in accordance with the process defined in the contract.

The procurement specialist should use the TA Form identified in the contract. In addition, a TA must also be created in myEMS(SAP). The procurement specialist should use PWGSC- TPSGC 572 TA Form for contract solicited against PSPC procurement tools.

For TA’s within ESDC’s delegated authority, the TA form is signed by the procurement specialist. Where applicable, a copy is sent to PSPC for their records.

For TA’s that are over ESDC’s delegated authority, the TA form is sent to PSPC. They will send back a duly signed copy once the project authority, PSPC, and the vendor have all signed.

TA Amendments

The procurement specialist may amend 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 amendment to the TA is subject to concurrence by the contractor.

The procurement specialist will need to amend a TA where the work is completed with remaining funds to release these funds back to the client’s cost centre and also to adjust the allowed limit under the outline agreement.

From time to time, a client may experience issues with the contractor/vendor. If you are having issues with contractor performance, please contact the CFOB procurement specialist immediately. It is important that we clearly document the issues, and formally advise the contractor that they are in default and provide them a timeframe to rectify the issues.

Any request for an amendment should be submitted as early as possible. Please refer to the service standards for amendments.

Standard Amendments

For the majority of standard amendments, such as exercising an option year or changing the Project Authority (or technical authority) identified in the contract, the client should add a new line to the PReq with a brief description of the required amendment. Additional funding, if needed must be added to this line item. See the myEMS (SAP) Procurement Instructions on Change/Modify a Purchase Requisition.

Changing the Work

The Treasury Board Contracting Policy allows for amendments which change the requirement; however, as indicated under section 12.9 of this policy:

"contracts should not be amended unless such amendments are in the best interest of the government, because they save dollars or time, or because they facilitate the attainment of the primary objective of the contract."

For contract extensions or additional work, the risk of amending a contract should be weighed against the issuance of a new contract or a new solicitation, while respecting openness, fairness, competition, best value, and client service.

Option Years

When exercising an option year, it is important to notify the contracting authority as soon as you know your intention. An option can be exercised well in advance of contract expiry. In order to exercise an option year, a new line must be added to your PREQ.

The Cost Centre Managers (CC) must ensure the Goods Receipt (GR) or Service Entry Sheet (SES) are created in myEMS (SAP) and that the invoices are routed properly.

In accordance with Step 2 of the Departmental Payment Process, CC managers must ensure that the invoice contains the essential information for invoices paid against a contract. See the How to insert a note in a PDF document for instructions on how to directly add this information to a PDF invoice.

When a CC manager purchases assets valued over $10,000.00, Information Technology Assets, or Attractive Assets, he/she should review his/her responsibilities in section 4.6 “Tracked Assets”.

Contracting Authorities must ensure that the invoicing instructions in all contracts, direct suppliers to send invoices only to the Project Authority identified in the contract.

Procurement specialists are reminded that it is the sole responsibility of the Contractor to charge applicable sales or other taxes at the correct rate in accordance with applicable legislation.

Canada must withhold 15% of the amount to be paid to the Contractor in respect of services provided in Canada if the Contractor is not a resident of Canada, unless the Contractor obtains a valid waiver from the Canada Revenue Agency.

Cost centre managers are responsible for assets under their authority, existing and newly purchased. For new tracked assets, CC managers must ensure the asset is tagged and appropriately tracked in SAP

What is a Tracked Asset?

A tracked asset is classified into one of the following three categories:

Attractive Assets – are departmental assets that are under $10k in value, and are considered to be attractive and portable. Attractive assets include:

• flat screen televisions;
• photography equipment valued over $600;
• portable mobile printers;
• artwork (e.g. painting or sculpture) valued over $500 or has heritage value;
• tablets or iPads; and
• any other portable assets that are deemed attractive and have a value greater than $600.

Capital Assets – are assets which are valued over $10k including software. However, since software is an intangible asset it is not tagged and tracked with an equipment master record (EMR) as are other tracked assets.

Non-Capital Information Technology (IT) Assets – are IT assets with a value under $10k in value such as desktop computers, laptops and computer monitors.

A list is provided of GLs most commonly used for tracked assets. If one of these GLs applies to an item you have purchased, you should consider whether the item should be tracked.

Cost Centre Manager

Cost Centre Managers are responsible for:

• Informing the CFOB Regional Asset Manager of any tracked asset acquired to ensure that information on these assets is entered into the myEMS system.
• Ensuring that asset tags are affixed to these assets as early as possible in the process, in accordance with the regional procedure, in order to complete the goods receipt.
• Reporting any movement or transfer of a tracked asset to your CFOB Regional Asset Manager, so that myEMS can be updated accordingly. See FAQ for guidance on the movement or transfer of an asset.
• Reporting any assets determined to be surplus to CFOB Regional Asset Manager and follow proper disposal process to maintain accurate records in myEMS. See the below section, 4.7 Disposal of Assets, for more information.

To learn more about CC Manager responsibilities and those of Employees, check sections 8.7 and 8.8 of  ESDC’s Asset Management Policy.

Acquisition Card Purchases of Tracked Assets

Acquisition card purchases of assets follow the same process as other types of purchases; assets must be tagged and tracked in the financial system. However, in the case of an acquisition card purchase, the purchaser must follow the instructions located here: myEMS instruction CRK1 (Create Card Document – Tracked Asset). In doing so, it will allow for CFOB to create the asset record in myEMS (SAP).

In most cases, your CFOB team will then mail out the asset tag (sticker). Your team must place it on the asset.

Contract Purchases of Tracked Assets

In the case where a procurement contract is being used to purchase a tracked asset, requisitioners must follow the proper Purchase Requisition (Preq) process for capital or attractive assets to ensure the procurement specialist has the necessary information. For Non-Capital IT Assets, we submit a requisition to Shared Services Canada and they complete the procurement on our behalf as per their mandate.

The assigned procurement specialist will confirm the asset information from the purchase requisition such as quantity, account assignment information, material data, delivery address, etc., when they create the Purchase Order (PO) to ensure accuracy in the myEMS (SAP) system.

The AMPP team wants your help to make asset management at ESDC more intuitive. Send any comments in that regard to NC-ASSETS-IP-POLICY-POLITIQUES-BIENS-PI-GD.

Assets must be disposed of at the end of their life cycle. Disposal activities apply to all assets that have been purchased or acquired by the Department, regardless of whether or not they are tracked assets recorded in myEMS.

Disposal of assets may require delegated financial authority, which rests within CFOB, and must be in accordance with the Asset Management Policy. All Information Resources of Business Value (IRBV) related to the disposal of assets must be managed in accordance with the Generic Valuation Tool for Material Services.

When Cost Centre Managers and CMCP process owners recommend an item for disposal, they must complete the Asset Disposal Form. Once completed, this form must be submitted to CFOB Regional Asset Management Services (RAMS) along with any questions you may have.

Once a contract has ended, and all invoices have been paid, the requirement file must be closed out. The file should be reviewed to ensure that all required documents and pertinent emails are either on the file, in the electronic procurement file (shared drive), or in myEMS (SAP), before closing and sending to records.

For information about Information Resources of Business Value (IRBV) and what information needs to be retained, please consult the Managing Information page on iService. The retention period for most procurement related IRBV is 6 fiscal years after the end of the fiscal year during which the contract has ended. For more details, consult the Generic Valuation Tool – Acquisition Services at Library and Archives.

When closing out a resulting contractual document in myEMS (SAP), Purchasing Specialists must follow the instructions found here: Close Purchase Order (write ME22N in myEMS Search Tool if the link is not working).