Financial Administration Manual

IB 705.13 Local Contract Authority

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Effective Date: April 1, 2016

Applicable FAM Policies: 705 - Procurement

Applicability: GNWT Departments

INTERPRETATION

Not all vendors in NWT communities accept the Corporate Credit card as a means of payment. The Local Contract Authority (LCA) was developed as a limited GNWT substitute method of payment that may be acceptable to some NWT vendors for purchased goods or services. Alternatively, the LCA may be used as a non-SAM generated purchase order explicitly recognized as a “Not for Payment” when it is immediately necessary to provide the supplier with a purchase order that includes standard terms and conditions written into the contract for purchases up to $10,000 only.  LCAs are to be used only after every effort has been made to utilize the corporate credit card, as the preferred purchasing method.