On June 10, 2015, an Order in Council was published by the
Government of Québec reducing the threshold from $5 million
to $1 million for authorization prior to bidding on service
contracts and subcontracts with public bodies in Québec. The
new threshold will be effective as of November 2,
Pursuant to An Act respecting contracting by public
bodies (chapter C-65.1) (the
"Act"), prior authorization from the
province's financial sector oversight body, Autorité des
marchés financiers (AMF), is required for
any enterprise, located within or outside the province of
Québec, to enter into a construction, service or
public-private partnership contract or subcontract with a
Québec public body involving an expenditure greater than the
thresholds set by an Order in Council.
The Order in Council will only apply to service contracts and
subcontracts; the applicable threshold for construction and
public-private partnership contracts and subcontracts will remain
at $5 million.
According to a press release issued by the Cabinet du
ministre responsable de l'Administration gouvernementale et de
la Révision permanente des programmes et président du
Conseil du trésor, the lower threshold will result in
an increase from 1,300 to 2,650 in the number of enterprises that
will require the issuance of an authorization by the AMF.
The effective date of November 2, 2015, is less than five months
away. Given the application process is expected to take several
weeks before a decision is issued by the AMF and the provincial
anti-corruption squad, enterprises planning to bid on service
contracts with values greater than $1 million should soon begin
preparing the information required for the application.
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