Directive on the Management of Materiel
The directive ensures that materiel is planned, acquired, operated, maintained and divested in a manner that supports the delivery of programs and services to Canadians, while ensuring best value to the Crown.
Date modified: 2023-08-03
Supporting tools
Mandatory procedures:
- Land Vehicle Fleet Management
- the Management of Controlled Goods
More information
Policy:
Topic:
Hierarchy
Effective July 11, 2023, the Directive on the Management of Materiel has been amended to include new and modified requirements to Appendix A: Mandatory Procedures for Land Vehicle Fleet Management in support of the federal Greening Government Strategy and the commitment to electrify the entire federal fleet of light duty vehicles by 2030.
The following sections have been amended or added:
- Sections A.2.3.1.4, A.2.3.1.5, A.2.3.1.6, and A.2.3.1.14 relating to internal controls, planning, acquisitions and information management for all land vehicles.
- Sections A.2.3.6, A.2.3.7, A.2.3.8, A.2.3.10, and A.2.3.12 relating exclusively to executive vehicles.
Appendix B: Mandatory Procedures for the Management of Controlled Goods
B.1 Effective date
- B.1.1 These procedures take effect on May 13, 2021 .
- B.1.2 These procedures replace the Controlled Goods Directive ( November 1, 2006 ).
B.2 Procedures
- B.2.1 These procedures provide details on the requirements set out in section 4 of the Directive on the Management of Materiel.
- B.2.2 These procedures apply to controlled goods as identified in the Schedule to the Defence Production Act.
- B.2.3 Mandatory procedures are as follows:
- B.2.3.1 When controlled goods are transferred from Canada or are divested outside Canada, departments must liaise with the following:
- B.2.3.1.1 Global Affairs Canada (GAC) to determine applicable export restrictions and/or additional export requirements; and/or
- B.2.3.1.2 The United States Department of State when goods are subject to the United States International Traffic in Arms Regulations (ITAR), to determine applicable export restrictions and/or other export requirements.
Access to controlled goods
- B.2.3.2.1 Ensuring that, prior to accessing controlled goods in Canada, a person is registered with the Controlled Goods Program of Public Services and Procurement Canada unless:
- B.2.3.2.1.1 Excluded from registration, for example, the person occupies a position in the federal public administration, including a position in a federal Crown corporation, or is employed by Her Majesty in right of a province, a public officer as defined in subsection 117.07(2) of the Criminal Code, an elected or appointed official of the federal or a provincial government, or a member of a visiting force as defined in section 2 of the Visiting Forces Act, and acts in good faith in the course of their duties and employment (see section 36 of the Defence Production Act and section 1.1 of the Controlled Goods Regulations); or
- B.2.3.2.1.2 Exempted from registration by PSPC upon provision of evidence to the Controlled Goods Program registrant of the individual’s status as a director, an officer or an employee of a person registered to access controlled goods under the ITAR, or an officer, employee or elected or appointed official of the United States federal government or of a state or territorial government of the United States, or an application by the designated official of a registrant (for a temporary worker, international student or visitor) to the Controlled Goods Program;
- B.2.3.2.2.1 Examined, possessed or transferred only by persons who are excluded, registered or exempted from registration with the Controlled Goods Program; and
- B.2.3.2.2.2 Addressed, as required, in their procurement, divestment and security plans;
Identification of controlled goods
- B.2.3.2.4 Identifying and/or defining potential controlled goods by consulting the following to determine whether materiel in their custody is considered controlled goods:
- The Controlled Goods List in the Schedule to the Defence Production Act;
- The accompanying Schedule Guide; and
- GAC’s A Guide to Canada’s Export Controls;
- B.2.3.2.5.1 The Controlled Goods List in the Schedule to the Defence Production Act;
- B.2.3.2.5.2 The accompanying Schedule Guide; and
- B.2.3.2.5.3 GAC’s A Guide to Canada’s Export Control;
Security plans, procedures and breaches
- B.2.3.2.8 Developing procedures for proper handling, storage, access, security and responsibility structures for assets determined to be controlled goods, and the reporting and investigation of breaches thereof;
- B.2.3.2.9 Establishing and implementing a security plan for each place of business in Canada where controlled goods are kept. This security plan must set out the following in writing:
- B.2.3.2.9.1 The procedures used to control the examination, possession and transfer of controlled goods;
- B.2.3.2.9.2 The procedures for the full demilitarizationof controlled goods;
- B.2.3.2.9.3 The procedures for reporting and investigating security breaches in relation to controlled goods;
- B.2.3.2.9.4 The description of the responsibilities of the department’s security organization and the identity of the individuals who are responsible for the security of controlled goods; and
- B.2.3.2.9.5 The contents of security briefings and training programs given to employees and to registered or exempt contracted workers, as the case may be;
Records
- B.2.3.2.12 Keeping and maintaining records that contain:
- B.2.3.2.12.1 A description of any controlled goods in their custody, the date of their receipt, any applicable licences or restrictions, and identification of the person from whom they were transferred;
- B.2.3.2.12.2 A description of any controlled goods transferred by the department, the date of their transfer, and the identity and address of the person to whom they were transferred;
- B.2.3.2.12.3 A description of the manner and date of divestment of all controlled goods; and
- B.2.3.2.12.4 A separate description of ITAR “defense articles,” kept for a period of five years from the expiration of the licence or other approval;
Acquisition
- B.2.3.2.13 Ensuring that, with respect to a procurement process, departments are responsible for determining the potential involvement of controlled goods, including any technical data, as early as possible;
- B.2.3.2.14 In the case of acquisition from Canadian business enterprises, allowing potential bidders or buyers in a procurement process that involves controlled goods sufficient time to seek registration with the Controlled Goods Program; and
- B.2.3.2.15 Ensuring that, where a department retains the services of a third party to aid or participate in the administration of a procurement process that involves controlled goods, that any third party with access to controlled goods is registered or exempted from the Controlled Goods Program and has the approval of any applicable foreign government’s office of primary interest, as appropriate;
Divestment
- B.2.3.2.16 Ensuring, when divesting of controlled goods domestically, that such goods are transferred only to current registrants of the Controlled Goods Program or entities excluded from Controlled Goods Program registration, or that these items are fully demilitarized before divestiture;
- B.2.3.2.17 When divesting of controlled goods through GCSurplus, it is the responsibility of departments to notify GCSurplus that the items are controlled in order for GCSurplus to follow the appropriate procedures;
- B.2.3.2.18 Ensuring, when divesting of controlled goods through export, that the Export Control List, the Arms Trade Treaty and other applicable international treaties are consulted, end use assurances are provided and that all necessary export permits are obtained from GAC. When controlled goods are sold internationally through GCSurplus, GCSurplus will verify that the appropriate approvals are obtained on behalf of departments;
- B.2.3.2.19 Ensuring that potential bidders or buyers in a divestment process that involves controlled goods have sufficient time to obtain foreign and domestic authorization in the case of foreign business enterprises if their proposals contain reference to transfers, sales, donations, trade-ins or conversion to waste of controlled goods;
- B.2.3.2.20 Ensuring that, when divesting of controlled goods, the item is fully demilitarized unless it is being transferred to a current registrant of the Controlled Goods Program or entities excluded from Controlled Goods Program registration; and
- B.2.3.2.21 Before the divestment, re-transfer or re-export of any ITAR “defense article” to any end-user or destination, determining whether the department needs to obtain written approval from the United States Department of State’s Directorate of Defense Trade Controls or the Office of Regional Security and Arms Transfers, as appropriate. When selling controlled goods through GCSurplus, GCSurplus will verify that the appropriate approvals are obtained.