Contract of Indemnification Exemptions

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The “Financial Administration Act R-022-2023,” amends the Contract of Indemnification Exemption Regulations. Under subsection 107(1) of the Act, the Financial Management Board introduces a new section (22) which states that the “Department of Health Sole-Source Service Contract” between the Government of Nunavut and Ontario Health Services Network Inc. for out-of-territory case management services is exempt from sections 66 to 67.3 of the Act.

Sections 66 to 67.3 of the Financial Administration Act typically deal with the management and oversight of financial commitments and liabilities incurred by the government. They outline the processes for entering into contracts, ensuring that proper financial controls are in place, and providing guidelines for indemnities and financial accountability.

The Contract of Indemnification Exemption Regulations establish the conditions under which contracts involving indemnities from the Government of Nunavut are exempt from specific sections of the Financial Administration Act. These exemptions apply to a range of entities, including the Canadian Blood Agency, Canadian Blood Services, Health PRO Procurement Services Inc., the Stanton Territorial Health Authority, and NAV CANADA, among others. Various ministers have the authority to sign these indemnification agreements on behalf of the Government, depending on which organization is involved.

Additionally, certain contracts are explicitly exempted, such as those with Woodward’s Oil Limited, MCW Custom Energy Solutions Ltd., and Moneris Solutions Corporation, covering services from petroleum supply to healthcare software. There are also special provisions for indemnity contracts with outfitters, which include defined limits on liability. Furthermore, contracts linked to major public projects, like the Iqaluit International Airport Improvement Project, are also exempt.

Nunavut (R-022-2023) July 30, 2023