To ensure that projects proposed for approval, by the sponsoring Minister or, where
required, by the Treasury Board can receive informed and effective consideration.
It is government policy that:
- Treasury Board approval for capital, lease and information technology projects be sought where:
- the total estimated cost of the project exceeds the level that the sponsoring Minister can approve;
- during implementation, the projected costs to complete the project exceed, either the level that the sponsoring
minister can approve or the limits previously approved by the Treasury Board; or
- there has been a significant change to the baseline established in the initial Treasury Board approval of the
project.
- All projects submitted for approval be supported by documentation that adequately describes the full scope of the
project including the associated management framework; and,
- All projects proposed for approval be reviewed to ensure that they represent an effective and efficient solution to
the operational needs as set out in the department's defined priorities or in the Long-term Capital Plan (LTCP).
This policy applies to departments listed in Schedules I and II of the Financial
Administration Act.
The policy applies to projects and to capital, lease and information
technology projects as defined in the Glossary of this volume. It applies to all such projects funded in whole or
in part by the federal government regardless of the method of acquisition.
The Treasury Board may designate any collection of activities as a capital project for the
purposes of this policy.
This policy does not apply to certain project-like activities funded by the federal
government through transfer payments (grants or contributions). Treasury Board policies on financing, managing and
approving these activities are provided in the Financial Management volume of the Treasury Board Manual.
1. Identification: Departments must identify collections of activities
that constitute projects under this policy and manage them accordingly.
2. Cost-effectiveness: All project proposals must clearly reflect a
cost-effective approach to meeting the operational needs set out in the LTCP or other appropriate departmental
documentation.
3. Process: To ensure projects are planned and executed in a timely and
effective manner, departments must institute an efficient project approval and review process.
4. Approval authority: The approval authority will establish an agreed
upon project baseline when approving the project. Any significant deviations from this baseline must be authorized by
the appropriate approval authority.
5. Project scope: All project proposals must be supported by appropriate
documentation that describes the scope of the project in terms of such elements as key deliverables, phasing to manage
risk, timing, contracting strategy, special requirements, and project management. When departments have already
prepared project briefs, these will constitute appropriate documentation.
6. Project phases: To provide for adequate departmental approval and
control, project implementation must be broken down into phases corresponding to natural decision points. Chapters 2-2
and 2-3 of this volume provide guidance on this and other project management matters.
7. Treasury Board approval: The department must obtain Treasury Board
approval for a capital project (including leases and information technology projects) when the total estimated cost
exceeds the level that the sponsoring Minister can approve (see Appendix E). Only those specific phases of the project
that have been appropriately defined and costed can be approved.
8. Proposals: There are three types of proposals that may be submitted for
Treasury Board approval.
8.1 Normally, the first submission by a department seeks Preliminary Project Approval
(PPA) and authority to proceed with all or part of the project's definition phase. To support a proposal for PPA,
departments must clearly demonstrate that a requirement directly related to the achievement of program goals and
responsibilities exists, and that the design and implementation of the proposed project best meet that requirement.
Requirements for a PPA are further described in Appendix A.
8.2 When the project is fully defined, the department submits for Effective Project
Approval (EPA) to obtain authority to implement the project. Approval of EPA also establishes the cost and other
critical objectives that form the project baseline. Appendix B provides detailed requirements for an EPA
submission.
8.3 Projects that mainly involve leasing require a Lease Project Approval (LPA), before
bids can be solicited. The LPA effectively combines PPA and EPA into a single approval process. Appendix C provides
detailed requirements for an LPA.
9. Single submission: Some projects do not require an extensive project
definition phase. In these cases, departments may seek only EPA. This single submission must provide the information
required in both PPA and EPA submissions.
10. Omnibus submissions: Departments may group several related projects
together in omnibus submissions. Departments may also, when appropriate, request PPA, EPA, or LPA through the LTCP or
through the Multi-Year Operational Plan.
11. Information technology projects: Information technology projects must
be developed and implemented in conformance with the Information Management policy and the strategic directions that
have been established by the government. Appendix D details specific submission requirements for information technology
projects. Further information on requirements for information technology projects may be obtained in the Information
Management volume of the Treasury Board Manual or by contacting the Office of Information Management, Systems
and Technology, Treasury Board Secretariat.
12. Project brief: This is a detailed description of the project,
including its scope. It shows the relationship of the project to departmental priorities and the LTCP. In addition, the
project brief summarizes the analysis of the options that were considered and why the proposed project is the preferred
solution. It also provides an overview of the project management framework. A project brief must accompany all
submissions for Major Crown projects; all other projects must be supported by either a project brief or other
appropriate documentation that meet the requirements of Appendices A through D. Appendix F provides the detailed
requirements for a project brief.
13. Cost overrun: A project is in a cost overrun condition when the
current "estimate at completion" exceeds the currently approved cost objectives, without any corresponding changes in
the scope of the project. If the total estimated cost of the project then exceeds the level that the sponsoring
Minister can approve, the department must submit the project for Treasury Board approval. If Treasury Board EPA had
been provided, a revised EPA would be required.
14. Financial information: Departments must provide project information
in their Departmental Performance Report and Report on Plans and Priorities in accordance with the Departmental
Performance Reports Preparation Guide and the Guide to Preparation of the Report on Plans and Priorities.
Treasury Board Secretariat will use the following criteria to assess departmental
performance in meeting the objectives of this policy:
- consistency between projects proposed for approval and strategies contained within a Treasury Board considered LTCP
as well as other government objectives;
- timeliness of Treasury Board submissions for project approval;
- compliance with the information requirements provided for in this policy, including the quality of the information
included in Treasury Board submission. Quality is considered to cover such aspects as completeness, accuracy and ease
of understanding. Particular attention will be given to the Options analysis, the description of the project scope and
cost estimates.
This policy is issued under the authority of section 7 of the Financial Administration
Act. This policy replaces the project approval portions of Chapter 540 of the Administrative Policy
Manual, and TB Circular 1983-25, May 1, 1983, Approval of Capital Projects and Long-term Capital
Plans.
This policy should be read with the other chapters in this volume and other policies,
particularly those dealing with risk management, materiel management, real property, information technology management,
contracting and common services organizations.
Policy requirements
For enquiries related to policy interpretations, contact the Executive Director,
Procurement and Project Management Policy Directorate, Comptrollership Branch, Treasury Board Secretariat.
Treasury Board submissions
For questions about Treasury Board submissions and departmental program matters, departments should contact their
analyst within the TBS Program Sectors and, as appropriate, their specialist analyst in the Real Property and Materiel
Policy Directorate, or the Chief Information Officer Branch.
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