Can a Crown corporation contract with a federal Government department?
As distinct legal entities, Crown corporations may enter into contracts with their principal i.e. the Crown. For example, Section 24 of the Canada Post Corporation Act states that: “The Corporation may enter into contracts with Her Majesty as though it were not an agent of Her Majesty.” Any contract with a Crown corporation must however relate to the respective mandates of the Crown corporation and the Minister responsible for the department, i.e. the contracted task has to fit the respective mandates of the contracting entities. For example, the Minister of Indian Affairs and Northern Development (DIAND) cannot retain Canada Post Corporation (CPC) to deliver mail to veterans. Similarly, CPC cannot act (on behalf of DIAND) for the construction of houses for Aboriginals.
Related Questions
- If a crown agency, government lab or government department provides a service to a company which has received funding from ISTPCanada, cam they be compensated for that service?
- Can Federal Government institutions (federal department, agency, or Crown corporations including their research facilities) participate in a project?
- Can a government department let a contract on behalf of another department?
