


Rush Order – Government of Canada Invokes Urgent Operational Requirements to Justify Quick Purchases of Military Goods
Rush Order – Government of Canada Invokes Urgent Operational Requirements to Justify Quick Purchases of Military Goods
Government procurement is rarely considered swift, especially in the defence sector. Stories in the media about defence procurement typically lament lengthy inflexible administrative processes, and project delays.
Government policy and multilateral trade treaty commitments generally require procurement be done by means of a competitive process. Outside of standing offers and supply arrangements, traditional competitive processes take time. This is especially true of complex defence procurements, where dollar amounts and sensitive requirements result in higher levels of scrutiny. Timelines from pre-tender consultation to contract award can take years.
So how is it that Canada’s Minister of National Defence announced three new defence procurements on March 9, 2023, with estimated timeframes for contract awards from mid-2023 to early 2024?[1] All three procurements have been designated Urgent Operational Requirements (UORs), which is an exceptional procurement mechanism that allows the federal government to dispense with traditional procurement processes in order to procure essential equipment on an accelerated timeline.
The Government Contracts Regulations permit the use of non-competitive sole source contracts or atypical procurement mechanisms where there is an operational need to fulfil an interim requirement for defence supplies or services, or to ensure defence logistical capabilities on an interim basis.[2] The purpose of the exception is to allow the Minister of Defence to move quickly to prevent critical capability or supply gaps.
Past use of this exception has not been without controversy. In 2015, the federal government relied upon it to approve a sole-source $700M contract to retrofit an interim supply ship for the navy leading to complaints from rival suppliers about the lack of competition.[3]
Minister Anand’s recent announcement cited the need to support and protect Canadian and NATO forces deployed in Eastern Europe as part of Operation REASSURANCE.
If you have questions about supplying government or public sector entities and the complex rules that govern the world of public procurement, McMillan LLP, together with its public affairs arm, McMillan Vantage, is here to help. For more information, please contact Timothy Cullen or Stevie O’Brien.
[1] Minister Anand updates National Defence stakeholders on progress to modernize the Canadian Armed Forces for tomorrow’s security challenges (Government of Canada).
[2] Government Contracts Regulations, SOR/87-402 at s. 3(1)(g).
[3] “Seaspan joins fight against $700M Davie supply ship deal“(CBC News).
by Timothy Cullen and Stevie O’Brien
A Cautionary Note
The foregoing provides only an overview and does not constitute legal advice. Readers are cautioned against making any decisions based on this material alone. Rather, specific legal advice should be obtained.
© McMillan LLP 2023
Insights (5 Posts)
Fanning the Flames of Liability: The Ontario Court of Appeal Considers Product Liability Issues in Burr v. Tecumseh Products of Canada Limited
The decision of the Court of Appeal in Burr v. Tecumseh Products of Canada Limited, 2023 ONCA 135 provides a helpful overview of product liability law.
A Look at Some Key Findings by the Alberta Securities Commission in Re Bison Acquisition Corp.
On December 21, 2021, a panel of the Alberta Securities Commission issued its written decision providing its reasons for the oral ruling it made on July 12, 2021 regarding applications brought by Bison Acquisition Corp. and Brookfield Infrastructure Corporation Exchange Limited Partnership, as well as Inter Pipeline Ltd. and Pembina Pipeline Corporation.
Employer’s Disturbing Termination Conduct Results in $15,000 Moral Damages Award
Teljeur v Aurora Hotel Group 2023 ONSC 1324 provides example of post-termination conduct and bad faith damages.
Succeeding at Succession: Tips on Corporate Governance including How to Navigate Board Renewals and Elections
Stakeholders are demanding good corporate governance, which includes effective succession planning where a range of skills, experience, and backgrounds are highly valued and reflected. In collaboration with WATSON, a national multidisciplinary governance firm, join us in the morning on Wednesday, April 19, to discuss strategies and action plans that drive robust succession planning and strong corporate governance.
Adjudication under the Construction Act: Court Confirms Test to Apply for Judicial Review a “High Bar”
Adjudication under the Construction Act: Court Confirms Test to Apply for Judicial Review a “High Bar” Anatolia Tile & Stone Inc. v Flow-Rite Inc. 2023 ONSC 129.
Get updates delivered right to your inbox. You can unsubscribe at any time.