Delegation of authority

Delegation of authority is the departmental instrument by which named officials exercise federal spending and contracting authorities at defined dollar levels.

What it is

Delegation of authority in Canadian federal contracting is the mechanism by which spending and contracting authorities - the legal power to commit the Crown and sign contracts - are exercised by named officials rather than ministers personally. Treasury Board Secretariat's Guide to Delegating and Applying Spending and Financial Authorities frames the design: ministers and deputy heads delegate authorities to departmental officials through a departmental delegation instrument, balancing empowerment of officials with control.

How it works in a department

Each department maintains a delegation instrument, approved under Treasury Board policy, that names which positions exercise which authorities at which dollar levels - including contracting and confirmation of contract performance and price. A project officer, for example, can only commit the Crown if their position is named in the instrument for that authority and value. TBS's policy glossary treats the "person identified under the departmental delegation of authorities instrument" as the reference point for who administers terms and conditions.

The federal layer above it

Departmental delegations sit under the statutory and central-agency framework: the Financial Administration Act (sections 32 and 34 tie commitments and payments to responsible officials), the Government Contracts Regulations, and the Treasury Board Directive on the Management of Procurement. PSPC's Supply Manual (e.g. s. 6A.001) requires contracting officers to obtain approval and signing authorities at the levels established by Treasury Board and by the department's internal levels.

Common questions

Who signs a federal contract?

An official holding delegated contracting authority for that instrument type and dollar value - not necessarily a lawyer or the deputy minister. Suppliers can ask who holds signing authority, but the validity question is answered by the department's instrument.

What happens above delegated limits?

Approval escalates - to the deputy head, minister, or Treasury Board depending on the directive's appendices (for example, Treasury Board approval for high-risk or high-complexity proposals per the risk-based limits in the Directive on the Management of Procurement).

Related definitions

FAA section 32 - FAA section 34 - Government Contracts Regulations - Supply Manual - Contracting Policy Notice