The Policy on Management of Materiel was rescinded on May 13, 2022. It has been replaced by the materiel management requirements in the Policy on the Planning and Management of Investments and the Directive on the Management of Materiel.
1.1 This policy takes effect on November1, 2006.
1.2 Together with the four directives listed in section 3.5 below, it replaces the following Treasury Board policies:
2.1 This policy applies to all departments as defined in section 2 of the Financial Administration Act, unless specific acts or regulations override it.
2.2 This policy does not apply to the management of intellectual property, the management of records, the management of information, the management of financial assets, or to the management of seized or confiscated property.
3.1 Federal materiel assets are vital corporate resources that, when managed well, support the cost-effective and efficient delivery of government programs.
3.2 This policy is issued pursuant to the Financial Administration Act, subsections 7(1), 9(2) and section 62, and the Surplus Crown Assets Act, subsection 3(1)(b).
3.3 Ministers are accountable for the management of materiel to support the delivery of programs according to their departmental mandates. Deputy heads are accountable to their respective minister and to the Treasury Board for the sound stewardship of the materiel entrusted to them or used by their organization.
3.4 This policy is framed by the principles set out in the Policy Framework for the Management of Assets and Acquired Services. The policy must be read in the context of related Treasury Board policies, especially those governing investment planning, procurement and project management.
3.5 Additional mandatory requirements are set out in the four Treasury Board directives associated with this policy:
4.1 Definitions to be used in the interpretation of this policy and its associated directives can be found in the Appendix.
The objective of this policy is that materiel be managed by departments in a sustainable and financially responsible manner that supports the cost-effective and efficient delivery of government programs.
Compliance with the requirements of this policy is expected to result in a federal materiel management regime that:
6.1.1 A materiel management framework is in place that reflects an integrated approach to risk management; provides relevant performance information; sets out clear accountability and decision-making regimes that are consistent with organizational resources and capacity; and supports timely, informed materiel management decisions and the strategic outcomes of departmental programs.
6.1.2 The overall extent to which their materiel assets meet program requirements is measured by an ongoing and systematic assessment of the physical condition, functionality, use and financial performance of these assets against established targets based on appropriate benchmarks.
6.1.3 Capital acquisition, operations and maintenance, and disposal strategies are developed based on the findings of this ongoing and systematic performance assessment and on an economic and program analysis that considers the full life cycle costs and benefits of alternative solutions to meeting program needs for materiel assets.
6.1.4 The risk of loss of, or damage to federal materiel assets is minimized.
6.1.5 Heritage collections are identified and protected; the heritage value of these assets is assessed; and a record of these assets is kept that includes accurate information on their nature and condition.
6.1.6 Light duty vehicle fleets and executive vehicles are managed as set out in the Treasury Board Directive on Fleet Management: Light Duty Vehicles and in the Treasury Board Directive on Fleet Management: Executive Vehicles.
6.1.7 Materiel assets are managed and disposed of in an environmentally responsible manner consistent with the principles of sustainable development.
6.1.8 A materiel management information system is in place that:
6.1.9 Acceptance and treatment of sponsored and donated assets are consistent with the requirements set out in the Communications Policy of the Government of Canada and in the Policy on Alternative Service Delivery.
6.1.10 Every loan of a materiel asset is made by way of a written contract that meets the legal requirements set out in the Public Property Loan Regulations.
6.1.11 Materiel assets designated as controlled goods, as defined in Part 2 of the Defence Production Act, are given the level of protection necessary to prevent their unauthorized examination, possession or transfer. Controlled goods must be managed in compliance with the Treasury Board Directive on Controlled Goods.
6.1.12 The disposal of surplus materiel assets is concluded as effectively as possible, as soon as possible after they become surplus to the requirements of program delivery, and in a manner that obtains highest net value for the Crown. The disposal of surplus materiel assets must be carried out in compliance with the Treasury Board Directive on Disposal of Surplus Materiel.
6.2.1 Deputy heads are responsible for monitoring and reporting on the management of materiel in their departments. More specifically, they are responsible for ensuring that:
6.2.1.1 a control and oversight regime is in place to monitor adherence to this policy and its associated directives;
6.2.1.2 performance relative to the obligations under this policy and its associated directives is measured and documented;
6.2.1.3 the management framework for materiel is reviewed as an ongoing component of departmental risk-based audit planning; and
6.2.1.4 departmental records, plans, policy instruments or any other required information are provided to Treasury Board Secretariat, upon request, in support of the Secretariat's monitoring responsibilities.
6.2.2 The Secretary of the Treasury Board is responsible for:
6.2.2.1 assessing departmental performance in the management of materiel through such activities as ongoing dialogue and committee work with departments, review of departmental investment plans and submissions as well as other departmental records, plans, policy instruments, etc., and by taking note of relevant audits and reviews conducted by departments or the Auditor General of Canada; and
6.2.2.2 reviewing the effectiveness of the policy and its associated directives at the five-year mark of their implementation and for ensuring that an evaluation is conducted when supported by a risk-based analysis.
7.1 Based on its assessment of departmental performance in the management of materiel, the Secretary of the Treasury Board will make appropriate recommendations to the deputy head of a department and to the Treasury Board.
Note: This section informs departments of other significant players in the management of materiel. In and of itself, it does not confer an authority.
8.1 Environment Canada (EC) provides advice and recommendations to all federal departments on environmental matters. Through a full consultative process, EC works with departments to establish federal environmental goals and objectives and to develop regulations, directives, guidelines, standards or codes affecting federal departments and agencies.
8.2 The Canadian Environmental Assessment Agency advises federal departments and agencies of their obligations under the Canadian Environmental Assessment Act and provides administrative support for public reviews.
8.3 Canadian Heritage is responsible for the initiation, recommendation, co-ordination, implementation and promotion of national policies, projects and programs concerning Canadian identity and values, cultural development, heritage and areas of natural or historical significance to the nation.
8.4 Public Works and Government Services Canada (PWGSC) is responsible for the provision of a range of asset-related common services to departments, including:
8.5 PWGSC and National Defence share responsibility for providing materiel identification and related services to departments.
8.6 National Defence is responsible for the administration and maintenance of the Canadian Government Cataloguing System.
8.7 The President of the Treasury Board is responsible for:
8.8 Treasury Board Secretariat, in addition to the explicit responsibilities outlined in this policy, provides the appropriate tools and guidance necessary to support this policy and its associated directives. The Secretariat also supports the professional development of the materiel management community.
Please direct enquiries about this policy instrument to the organizational unit in your department responsible for this subject matter. For interpretation of this policy instrument, the responsible organizational unit should contact: TBS Public Enquiries.