Q's & A's - For Internal Use Only - Disclosure of Contracts Over $10,000

General Questions 

1. Why is the disclosure of contracts over $10,000 required?
2. What government institutions are required to report contract information?
3. What type of contracts are we required to report?
4. What information is to be reported?
5. When do we start reporting?
6. How often are we required to report?
7. What medium will be used to publish the information?
8. How are institutions expected to generate the required information?
9. What if a contract has a security classification or involves work of a confidential nature?

Procurement / Financial Questions

10. Are we required to report on contractual arrangements with Crown Corporations?
11. What about service level agreements with Special Operating Agencies such as Consulting and Audit Canada?
12. Does disclosure of contracts include Stores Transfer Orders with CORCAN (Correctional Service of Canada's Employment Skills and Training Program)?
13. Are we required to report memoranda of understanding with other levels of government and foreign governments?
14. Are we required to report amendments?
15. What if a procurement involves more than one economic object?
16. For multi-year contracts, we don't normally enter the total value for all years into our financial system. How should we report the contract value?
17. How do we deal with options, that is the possibility that the Crown may extend a contract for an additional period of time at an additional cost?
18. The data elements to be reported include an optional 'comments' field. What is this field for?
19. How do we deal with any limitations in the data?
20. What if we need to correct data reported in an earlier reporting period?
21. What if we are unable to report a contract in the period in which it was awarded because we don't have all the information?
22. Does the $10,000 threshold include GST/HST and all other applicable taxes?
23. But our financial systems do not track GST/HST. How do we deal with this?
24. Do we report contracts that PWGSC awarded on our behalf?
25. How are Standing Offer data to be reported?
26. Our department often jointly funds contracts with other departments. Who should report such contracts?
27. Do we report contracts with individuals who are not incorporated? 

General Questions 

1. Why is the disclosure of contracts over $10,000 required?

• The government is carrying out new initiatives in order to promote greater transparency and accountability across the Government of Canada.

• The first initiative was announced on December 12, 2003, when the government released the Guide for Ministers and Ministers of State, and the Guidelines for Ministers' Offices, which stipulate that all travel and hospitality expenses for Ministers, Ministers of State, Parliamentary Secretaries, and their exempt staff would be provided on institutional web sites. Travel & Hospitality information has been available on GoC websites since March 31, 2004.

• The disclosure of contracts over $10,000 is the Government of Canada's latest initiative building on its commitment to promote greater transparency and accountability.

• It was announced on March 23, 2004, as part of the 2004 Budget. The Minister of Finance declared that the government would publicly disclose all contracts entered into by the Government of Canada for amounts over $10,000, with only very limited exceptions such as national security. These new requirements will be phased in over time, starting with procurement contracts for goods, services and construction.

2. What government institutions are required to report contract information? 

• Departments and agencies listed on Schedules I, I.1, and II of the Financial Administration Act are required to report contracts.

3. What type of contracts are we required to report?

• All contracts for the purchase of goods, services and construction are to be reported.  Contracts for legal services, real property transactions, and Grants and Contributions, are excluded.

4. What information is to be reported?

• For each contract, institutions are required to identify the vendor name, reference number (normally the number used in the departmental financial system), contract date, description of the work (using the economic object), contract period or delivery date as applicable, and contract value.

5. When do we start reporting?

• We anticipate that the first report is to be published on institutional websites on October 31, 2004. Institutions were notified on September 23, 2004.  For the first report, institutions will be required to report on the first two quarters of the fiscal year.

6. How often are we required to report?

• Institutions are required to report on a quarterly basis, corresponding to the government fiscal year quarters.  Information must be published within one month following the end of the quarter.

7. What medium will be used to publish the information?

• Institutions are to report the information on their institutional websites and to include a hypertext link to the Treasury Board Secretariat website, as was done for Travel & Hospitality.

8. How are institutions expected to generate the required information?

• The data are to be generated from institutional financial/materiel systems. These systems provide the most comprehensive and complete source of information. 

9. What if a contract has a security classification or involves work of a confidential nature? 

• Where disclosure of contract details would compromise national security, public safety, or government confidences, institutions should consult with their Access to Information co-ordinators for advice on invoking appropriate exemptions under the Access to Information Act.

Procurement / Financial Questions 

10. Are we required to report on contractual arrangements with Crown Corporations?

• No. You are not required to report these arrangements.

11. What about service level agreements with Special Operating Agencies such as Consulting and Audit Canada?

• No. You are not required to report these arrangements.

12. Does disclosure of contracts include Stores Transfer Orders with CORCAN (Correctonal Service of Canada's Employment Skills and Training Program)?

• Applicable departments and agencies are not required to report Stores Transfer Orders.

13. Are we required to report memoranda of understanding with other levels of government and foreign governments?

• No. Such arrangements are not to be reported. 

14. Are we required to report amendments?

• It is not necessary to report amendments. 

15. What if a procurement involves more than one economic object?

• Where a procurement involves more than one economic object, the economic object associated with the largest dollar value shall be used.

16. For multi-year contracts, we don't normally enter the total value for all years into our financial system. How should we report the contract value?

• Institutions are required to report the total liability to the government at the time of contract signing. For multi-year contracts, this means reporting the total value of the contract for all years.

17. How do we deal with options, that is the possibility that the Crown may extend a contract for an additional period of time at an additional cost?

• The contract value reported should exclude the cost of any options since options do not represent a liability to the government until they are exercised.

18. The data elements to be reported include an optional 'comments' field. What is this field for?

• This field should be completed by exception only, where it is necessary to flag corrections to data previously reported, to flag a contract that should have been reported in a previous reporting period, or to provide context to the data reported, where context is necessary to qualify or explain the data. As with any information that is made public, circumspection should be used when drafting remarks.

19. How do we deal with any limitations in the data?

• Limitations are to be clearly indicated on the institutional website. Where limitations apply to a data set, the Senior Financial Officer should include a general statement explaining the limitations, for example, if the data do not yet include a certain population of contracts, such as call-ups against standing offers. Any limitations associated with a specific contract should be explained in the Comments field.

20. What if we need to correct data reported in an earlier reporting period?

• Information posted in one reporting period should be modified in a subsequent reporting period but only where a correction needs to be made in the data originally reported. Any modified information must be clearly indicated as such in the 'comments' field.

21. What if we are unable to report a contract in the period in which it was awarded because we don't have all the information?

• A contract not reported in the reporting period in which it was awarded is to be reported in the subsequent reporting period, or as soon as practicable.

22. Does the $10,000 threshold include GST/HST and all other applicable taxes?

• Yes, the $10,000 threshold includes all applicable taxes such as GST/HST.

23. But our financial systems do not track GST/HST. How do we deal with this?

• Institutions that do not record GST/HST or other such taxes in their financial systems should report on contracts that would otherwise exceed $10,000 if taxes were added, e.g. contracts between $9,346 and $9,999 would exceed $10,000 if 7% GST was added.

24. Do we report contracts that PWGSC awarded on our behalf?

• Yes, institutions are required to report all procurement contracts, whether the contract was awarded by the institution or by PWGSC, since PWGSC is acting as the procurement authority on behalf of departments.

25. How are Standing Offer data to be reported?

• Only the call-ups against the standing offer are to be reported. The actual standing offer is not to be reported.

26. Our department often jointly funds contracts with other departments. Who should report such contracts?

• The institution signing the contract shall report the contract.

27. Do we report contracts with individuals who are not incorporated?

• Yes, institutions are required to report such contracts.

[NOTE: s. 3(k) of the Privacy Act states that information about an individual who is or was performing services under contract for a government institution and that relates to the services performed, does not qualify as "personal information." Disclosures are also authorized pursuant to s. 8(2)(a) of the Privacy Act.]