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Description - Appendix D - Process flow of procurement transactions centrally managed by the Materiel and Assets Management Division

The figure in Appendix D sets out the flow of procurement transactions for both low-complexity and higher-complexity procurement, as described in A Contracting Guide for Cost Centre Managers and Administrators in Health Canada and the Public Health Agency of Canada, published in 2014.

As defined by the Materiel and Assets Management Division (MAMD) of the Financial Operations Directorate, low-complexity activities are short form contracts (PS2), call-ups (942) and purchase orders of less than $10,000; local purchase orders for services up to $5,000; temporary help services under a standing offer up to $400,000; interdepartmental letters of agreement, memorandums of agreements/understanding and collaborative agreements. The acquisition card procurement of goods and services are not reviewed by MAMD.

The process for low-complexity procurement transactions is as follows. The Cost Centre Manager identifies a requirement for goods or services and estimates the cost. The Cost Centre Administrator makes the requisition commitment in SAP and prepares the processing documents. The procurement specialist at MAMD reviews the processing documents and submits them to the Cost Centre Manager for approval in SAP, as per Sections 32 and 41 of the Financial Administration Act. SAP is the departmental financial management system used at Health Canada and the Public Health Agency of Canada. Once approval has been confirmed, the contractual documents are issued to the supplier. As a final step, the Cost Centre Manager manages the contract and confirms receipt of the deliverables.

Higher-complexity activities are defined as long-form contracts (PS1), call-ups (942) and purchase orders; temporary help services under a supply arrangement (National Capital Region only); IT-related procurements up to $25,000; and 9200 PWGSC requisitions.

The process for higher-complexity procurement transactions is as follows. The Cost Centre Manager identifies a requirement for goods or services and estimates the cost. The Cost Centre Administrator makes the requisition commitment in SAP and submits it to the Cost Centre Manager for approval, as per Section 32 of the Financial Administration Act. The procurement specialist at MAMD reviews the requisition and recommends a procurement strategy to the Cost Centre Manager and the Technical Authority.  The procurement specialist at MAMD then processes the requirement, in accordance with Government Contracts Regulations and Treasury Board policy and delegations. At this point in the contract award process, PWGSC may become involved, when required, as per Section 41 of the Financial Administration Act. The procurement specialist at MAMD submits them to the Cost Centre Manager for approval in SAP, as per Section 41 of the Financial Administration Act. Once approval has been confirmed, the contractual documents are issued to the supplier. As a final step, the Cost Centre Manager manages the contract and confirms receipt of the deliverables.

The Materiel and Assets Management Division manages the process flow of procurement transactions at Health Canada and the Public Health Agency of Canada. However, there are two exceptions. The Contracting Management Unit within the Internal Client Services and Transition Directorate in the First Nations and Inuit Health Branch at Health Canada and the Winnipeg Common Services Centre within the Infectious Disease Prevention and Control Branch at Public Health Agency of Canada follow a similar procurement and contracting process using the Procure-to-Pay platform.