Service Contracts with Former Public Servants in Receipt of a Pension
(1) Non-competitive (directed) service contracts with former public servants in receipt of a pension:
Entry
1. contracting authorities may negotiate and award any contract whose total value, including all amendments is $25,000 or less;
2. Treasury Board approval is required to enter into any contract whose total value exceeds $25,000;
3. the fee component in any contract must be abated if the individual has been retired for less than one year and is in receipt of a pension.
Amendments
Treasury Board approval is required to amend any contract whose total value exceeds $25,000.
(2) Competitive (traditional or electronic bidding methodology) service contracts with former public servants in receipt of a pension:
Entry
1. contracting authorities may negotiate and award any contract whose total value, including all amendments is $100,000 or less;
2. Treasury Board approval is required to enter into any contract whose total value exceeds $100,000.
Amendments
Treasury Board approval is required to amend any contract whose total value exceeds $100,000.
Notes Concerning service contracts with former public servants in receipt of a lump sum payment:
1. Former public servants in receipt of a lump sum payment are those former employees who have received a lump sum payment as provided in the Work Force Adjustment Directive (WFAD) made pursuant to the Public Sector Compensation Act, and former members of the Armed Forces and the Royal Canadian Mounted Police in receipt of lump sum payments through corresponding force reduction programs.
2. The contractor cannot receive, in total, fees in excess of $5,000 (including GST or HST), whether applicable to one or more contracts, during any lump sum payment period. The contract fee otherwise payable for any contract awarded to an affected former public servant must be abated in total, once the $5,000 limit has been reached, in the contractor's lump sum payment period.
3. Reasonable overhead expenses such as travel costs are excluded from the $5,000 limit.
4. Departments and agencies must obtain Treasury Board approval for all contract situations where affected former public servants might receive fees totalling more than $5,000 during their lump sum payment period.
5. The application of the current requirement for the one year contract fee abatement policy to former public servants in receipt of a pension paid pursuant to the Public Service Superannuation Act as indexed by the Supplementary Retirement Benefits Act is postponed, to have it begin at the conclusion of the lump sum payment period.
6. The exemption to the current contract fee abatement policy enjoyed by former members of the Armed Forces and the RCMP is continued.
7. The contract fee abatement restrictions do not apply to contracts awarded competitively, once the lump sum payment period is completed.