June 22, 2017

Risk Re-Rebalancing in Federal Procurement: Summary of the consultations and steps forward

Federal Procurement Public Policy Direction

CATAAlliance would like to share with members and supporters a summary  report prepared by Public Services and Procurement Canada, entitled, “ Risk Re-Rebalancing in Federal Procurement:  Summary of the consultations and steps forward.”

For the above, note that the Strategic Policy Sector (SPS) organized a series of consultations with internal and external stakeholders to gather information and advice on the following four subjects related to Risk-Rebalancing in federal procurements: namely, Data Collection Requirements and Risk Information Disclosure; Cost of Risks, Benefits of Re-balancing Risks;  New Generation of Risk Management Tools; and, Training, Guidance and Best Practices.

You can download this material now (permission required) at
https://tinyurl.com/jsc5887  Please contact CATA at info@cata.ca for your password.

Public Policy Considerations

Participants from PSPC, OGD’s and Industry put forward broad-based recommendations to facilitate a more modern approach to procurement risk, such as:


  • Revisiting Treasury Board Policy on Limitation of Liability to eliminate the need to go to Treasury Board every time they want to limit liability in the absence of a commodity groupings;
  • Moving to more commercial contractual terms and conditions in contracts;
  • Engaging industry early-on, in the development of risk management and mitigation plans for complex procurement;
  • Moving from prescriptive and mandatory requirements in Request for proposals to outcomes-based approaches to procurement;
  • Developing procurement risk guidelines and enhancing training and capacity of procurement professionals.
  • Identifying areas that pose significant risk in contracting such as Government of Canada treatment of insurance, credit, foreign currency and inflation;
  • Addressing lack of data collection and improving access to relevant and meaningful information that would allow to quantify the cost of risks in bids in order to allocate risks to the party best able to manage it at a lower cost; and
  • Sharing of information and tools to assess and manage risk.

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