Appendix B
Regulations respecting government contracts P.C. 1987‑1355, June 30, 1987 
(SOR 87‑402, as amended by SOR 91‑651, SOR 92‑503, SOR 96‑472 and SOR 97-115.)
Published March 6, 1998. The contents of this appendix are mandatory since they are regulations pursuant to sub-section 41(1) of the Financial Administration Act.
Short Title
1.	These Regulations may be cited as the Government Contracts Regulations.
Interpretation
2.	In these Regulations, 
 “advance payment” (paiement anticipé) – means a payment made by or on behalf of Her Majesty under the terms of a contract before the performance of that part of the contract in respect of which the payment is made;
“approved financial institution” (institution financière agréée) – means 
(a)	any corporation or institution that is a member of the Canadian Payments Association, 
(b)	a corporation that accepts deposits that are insured by the Canada Deposit Insurance Corporation or the Régie de l’assurance‑dépôts du Québec to the maximum permitted by law, 
(c)	a credit union as defined in paragraph 137(6)(b) of the Income Tax Act,
(d)	a corporation that accepts deposits from the public, if repayment of the deposit is guaranteed by Her Majesty in right of a province, or
(e)	the Canada Post Corporation.
“bid bond” (cautionnement de soumission) – means a bond given by a person to guarantee entry into a contract if the contract is awarded to that person;
“bid security” (garantie de soumission) – means a bid bond or a security deposit given by a person to Her Majesty to guarantee entry into a contract if the contract is awarded to that person;
“construction contract” (marché de travaux publics) – means a contract entered into for the construction, repair, renovation or restoration of any work except a vessel and includes 
(a)	a contract for the supply and erection of a prefabricated structure, 
(b)	a contract for dredging, 
(c)	a contract for demolition, or 
(d)	a contract for the hire of equipment to be used in or incidentally to the execution of any contract referred to in this definition;
“contract” (marchés) – means 
(a)	a construction contract, 
(b)	a goods contract, or
(c)	a service contract,
entered into on behalf of Her Majesty by a contracting authority;
“contract security” (garantie contractuelle) – means 
(a)	a payment bond or a performance bond given on behalf of a person to Her Majesty to make good on any default by that person under the contract by 
(i)	compensating Her Majesty therefor, or 
(ii)	completing the performance of the contract to the extent required by the terms and conditions of the payment bond or performance bond, or 
(b)	a security deposit given by the person to Her Majesty to secure the performance of the contract to the extent required by the terms and conditions of the contract;
“contracting authority” (autorité contractante) – means
(a)	the appropriate Minister, as defined in paragraph (a), (a.1) or (b) of the definition “appropriate Minister” in section 2 of the Financial Administration Act, 
(b)	a departmental corporation named in Schedule II to the Financial Administration Act, or
(c)	the National Capital Commission;
“goods contract” (marché de fournitures) – means a contract for the purchase of articles, commodities, equipment, goods, materials or supplies and includes 
(a)	a contract for printing or for the reproduction of printed matter, and 
(b)	a contract for the construction or repair of a vessel;
“government guaranteed bond” (obligation garantie par le gouvernement) – means a bond of the Government of Canada or a bond unconditionally guaranteed as to principal and interest by the Government of Canada that is 
(a)	payable to the bearer, 
(b)	accompanied by a duly executed instrument of transfer of the bond to the Receiver General in the form prescribed by the Domestic Bonds of Canada Regulations, or 
(c)	registered in the name of the Receiver General;
“payment bond” (cautionnement de paiement) – means a bond given by a person to guarantee the payment for labour to be given or materials to be supplied in connection with a contract awarded to that person;
“performance bond” (cautionnement d’exécution) – means a bond given by a person to guarantee the performance of a contract awarded to that person;
“progress payment” (acompte) – means a payment made by or on behalf of Her Majesty under the terms of a contract after the performance of the part of the contract in respect of which the payment is made but before the performance of the whole contract;
“security deposit” (dépôt de garantie) – means 
(a)	a bill of exchange 
(i)	that is payable to the Receiver General, and 
(ii)	that is certified by an approved financial institution or drawn by an approved financial institution on itself,
(b)	a government guaranteed bond, or 
(c)	such other security as may be deemed appropriate by the contracting authority and approved by the Treasury Board;
“service contract” (marché de services) – means a contract for the provision of service but does not include an agreement whereby a person is employed as an officer, clerk or employee of Her Majesty.
“suppliers’ list” (liste de fournisseurs) – means a list that is maintained by the contracting authority setting out the names and addresses of suppliers from whom the contracting authority may solicit bids.
Application
3.	These Regulations apply to all contracts except
(a)	a contract entered into by the National Film Board;
(b)	a contract for the construction of buildings entered into under the Veterans’ Land Act;
(c)	a contract entered into under the Indian Act that involves Indian moneys as defined in that Act;
(d)	subject to section 4, a contract for the performance of legal services entered into by or under the authority of the Minister of Justice;
(e)	a contract for the fit‑up of an office or a residential accommodation where the contract for the fit‑up is part of a transaction authorized pursuant to the Federal Real Property Act or its Regulations made thereunder; and
(f)	arrangements entered into under an Interchange Canada Agreement.
PART I
Conditions of contract entry
Legal Services
4.	Contracts for the performance of legal services may be entered into only by or under the authority of the Minister of Justice.
Bids
5.	Before any contract is entered into, the contracting authority shall solicit bids therefor in the manner prescribed by section 7.
6.	Notwithstanding section 5, a contracting authority may enter into a contract without soliciting bids where
(a)	the need is one of pressing emergency in which delay would be injurious to the public interest;
(b)	the estimated expenditure does not exceed
(i)	$25,000, 
(ii)	$100,000, where the contract is for the acquisition of architectural, engineering and other services required in respect of the planning, design, preparation or supervision of the construction, repair, renovation or restoration of a work, or 
(iii)	$100,000, where the contract is to be entered into by the member of the Queen’s Privy Council for Canada responsible for the Canadian International Development Agency and is for the acquisition of architectural, engineering or other services required in respect of the planning, design, preparation or supervision of an international development assistance program or project; 
(c)	the nature of the work is such that it would not be in the public interest to solicit bids; or 
(d)	only one person is capable of performing
6.1	Notwithstanding section 5, a contracting authority may enter into a contract without soliciting bids where the estimated expenditure is less than 
(a)	$100,000.00 and the following conditions are met: 
(i)	the contract is entered into by the contracting authority and the purchaser of a division of the Canada Communication Group set out in column I of an item of Schedule I or an assignee of that purchaser, and 
(ii)	the contract is for the acquisition of a service set out in column II of that item; or 
(b)	the amount representing the threshold, that applies on the day the contract is entered into, referred to in article 1001(1)(c)(i) of the North American Free Trade Agreement, adjusted according to article 1001(1)(c) of that Agreement and converted according to paragraph 3 of Annex 1001.1c of that Agreement, and the following conditions are met: 
(i)	the contract is entered into by the contracting authority and the purchaser of a division of Canada Communication Group set out in column I of an item of Schedule II or an assignee of that purchaser, and 
(ii)	the contract is for the acquisition of a service set out in column II of that item. 
(2) Subsection (1) ceases to be effective on the earlier of the following days: 
(a)	March 7, 2002; and 
(b)	the day the agreement of purchase is terminated
7.	A contracting authority shall solicit bids by
(a)	giving public notice, in a manner consistent with generally accepted practices, of a call for bids respecting a proposed contract; or
(b)	inviting bids on a proposed contract from suppliers on the suppliers’ list.
Advance Payments
8.	(1)	Subject to subsection (2), any contracting authority may enter into a contract that provides for the making of advance payments.
	(2)	Where the approval of the Treasury Board is required for entry into a contract, the amounts and the times of the advance payments shall be approved by the Treasury Board.
Progress Payments
9.	Any contracting authority may enter into a contract that provides for the making of progress payments.
PART II
Security
10.	Where a contracting authority requires a person to give to Her Majesty bid security or contract security, that security shall be dealt with in the manner set out in this Part.
11.	No security deposit in the form of government guaranteed bonds with coupons attached thereto shall be accepted by a contracting authority unless all coupons that are unmatured at the time that the bonds are submitted are attached to the bonds.
12.	A contracting authority shall hold any bid bond, payment bond, performance bond or non‑negotiable security deposit that is received by the authority until the terms of the security are fulfilled.
13.	(1)	Where a negotiable security deposit is received by a contracting authority as bid security, the contracting authority shall hold that security deposit until it can be disposed of in accordance with subsection (2) or (3).
	(2)	Where a bid is accepted and contract security is required to be provided, 
(a)	the contracting authority shall continue to hold the security deposit referred to in subsection (1) until the contract security is provided; and 
(b)	when the contract security is provided, the contracting authority shall return the security deposit referred to in subsection (1) to the person from whom it was received unless it forms part of the contract security, in which case it shall be retained as contract security.
	(3)	Where a bid is rejected, or is accepted but contract security is not required, the contracting authority shall return the security deposit referred to in subsection (1) to the person from whom it was received.
14.	Where a bill of exchange is received by a contracting authority as contract security or is retained by a contracting authority pursuant to paragraph 13(2)(b), the contracting authority shall immediately deposit the amount of the bill of exchange in the Consolidated Revenue Fund. 
15.	Where a negotiable security deposit other than a bill of exchange is received by a contracting authority as contract security or is retained by a contracting authority pursuant to paragraph 13(2)(b), the contracting authority shall
(a)	hold the contract security in a place adequate for the safekeeping of the security; or 
(b)	immediately forward the contract security to the Receiver General for safekeeping.
16.	Where a negotiable security deposit has been received by a contracting authority in respect of a contract and the contract has been 
(a)	satisfactorily performed, or 
(b)	terminated for a reason that is not attributable to any fault of the contractor, 
and Her Majesty has no claim against the contractor arising out of the contract or relating in any manner to the contract, the contracting authority shall return that security deposit to the contractor.
17.	Where a security deposit in the form of a government guaranteed bond has unmatured coupons attached to it at the time it is submitted, the contracting authority or the Receiver General, as the case may be, shall return any matured coupons in excess of the security deposit requirement to the person from whom the security deposit was received, if that person so requests.

SCHEDULE I - (Section 6.1)	
	Column I	Column II	
Item	Division of Canada Communication Group	Services	
1.	Main Plant, 
45 Sacré‑Coeur Boulevard, 
Hull, Quebec	1.	Offset and conventional duplicating and printing services consisting of full service offset print manufacturing operations including
(a)	composition services consisting of
(i)	copy preparation,
(ii)	graphic design and data management in support of conventional print output,
(iii)	the preparation of SGML-based electronic documents,
(iv)	the structuring of data to HTML, and
(v)	CD-ROM output;
(b)	data management services consisting of the maintenance and updating of digital files for repetitive conventional print requirements; and
(c)	pre-press, print and bindery capabilities to produce a wide range of publication products such as books, booklets, brochures, pamphlets, catalogues, manuals and general printing (such as newsletters and letterheads).	
2.	National Capital Region Printing Centres Division	1.	Reprographic services consisting of the provision of black and white, spot colour and full colour photocopying services.
2.	Electronic printing services consisting of
(a)	high-speed electronic production of information and output from electronic files using digital technologies in hard copy, microfiche or CD‑ROM format;
(b)	merging of fixed and variable data for direct mail applications, such as financial reports and pay and benefits booklets; and
(c)	data storage only for data that is to be electronically reproduced as required.	
3.	Regional Operations (Quebec Region)	1.	Reprographic services cnonsisting of
(a)	the provision of black and white, spot colour and full colour photocopying; and
(b)	offset duplicating services.
2.	Electronic printing services consisting of
(a)	high-speed electronic production of information and output from electronic files using digital technologies; and
(b)	data storage to be output as required.	
4.	Regional Operations (Ontario Region)	1.	Reprographic services consisting of
(a)	the provision of black and white, spot colour and full colour photocopying; and
(b)	offset duplicating services.
2.	Electronic printing services consisting of
(a)	high-speed electronic production of information and output from electronic files using digital technologies; and
(b)	data storage to be output as required.	
5.	Regional Operations (Atlantic Region)	1.	Reprographic services consisting of
(a)	the provision of black and white, spot colour and full colour photocopying; and
(b)	offset duplicating services.
2.	Electronic printing services consisting of
(a)	high-speed electronic production of information and output from electronic files using digital technologies; and
(b)	data storage to be output as required.	
6.	Regional Operations (Pacific/Western Region)	1.	Reprographic services consisting of
(a)	black and white, spot colour and full colour photocopying; and
(b)	offset duplicating services.
2.	Electronic printing services consisting of
(a)	high-speed electronic production of information and output from electronic files using digital technologies; and
(b)	data storage to be output as required. 	
7.	Distribution Service Logistics	1.	Warehousing and distribution services consisting of
(a)	mass distribution, mailing and shipping of printed matter and other communication products that are in inventory; and
(b)	electronic warehousing, including electronically capturing and scanning data for electronic storage of printed matter and other communication products that are in inventory or that are to be placed in inventory.
2.	Integrated forms management services consisting of
(a)	forms analysis, design and development;
(b)	warehousing and inventory management of forms, including both conventional and electronic warehousing applications; and
(c)	initial production and replenishment of forms that are in inventory. 	

SCHEDULE II - (Section 6.1)	
	Column I	Column II	
Item	Division of Canada Communication Group	Services	
1.	National Capital Region Printing Centres Division	Convenience copier/photocopier management services consisting of the administrative management and provision of equipment and supplies to support convenience photocopiers located on clients’ premises.	
2.	Regional Operations (Ontario Region)	Convenience copier/photocopier management services consisting of the administrative management and provision of equipment and supplies to support convenience photocopiers located on clients’ premises.	
3.	Regional Operations (Quebec Region)	Convenience copier/photocopier management services consisting of the administrative management and provision of equipment and supplies to support convenience photocopiers located on clients’ premises.	
4.	Regional Operations (Atlantic Region)	Convenience copier/photocopier management services consisting of the administrative management and provision of equipment and supplies to support convenience photocopiers located on clients’ premises. 	
5.	Regional Operations (Pacific/Western Region)	Convenience copier/photocopier management services consisting of the administrative management and provision of equipment and supplies to support convenience photocopiers located on clients’ premises.	
6.	Distribution Logistics Service	1.	Distribution services consisting of mass distribution, mailing and shipping of printed matter, other than forms, and other communication products that are in inventory.
2.	Integrated forms management services consisting of mass distribution, mailing and shipment of forms that are in inventory, as well as on-demand requirements.