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4.21. Integrity Provisions

  1. Further to the Integrity Regime as summarized in section 3.51 Integrity Overview, all solicitations must include the appropriate standard instructions and general conditions which include the Integrity Provisions. Any request for modification to the Integrity Provisions or exemption, in part or its entirety, from the application of the Ineligibility and Suspension Policy must be escalated to the Assistant Deputy Minister, Acquisitions Branch through the Acquisitions Program Integrity Secretariat, by email at TPSGC.DGAIntegrite-ABIntegrity.PWGSC@tpsgc-pwgsc.gc.ca.
  2. The Ineligibility and Suspension Policy identifies certain contracts and types of contracts that are exempted from the application of the Policy, however all solicitations and contracts must include the Integrity Provisions. As the Policy is incorporated by reference, any applicable exclusion will therefore apply.
  3. In accordance with the Integrity Provisions and the Ineligibility and Suspension Policy, the following must be provided as part of the solicitation process.
    1. Bidders, offerors or suppliers that are corporate entities, including those bidding as joint ventures, must provide a complete list of names of all current directors or, for a privately owned corporation, the names of the owners of the corporation.
    2. Bidders, offerors or suppliers bidding as sole proprietors, including sole proprietors bidding as joint ventures, must provide a complete list of the names of all owners.
    3. Bidders, offerors or suppliers that are a partnership do not need to provide a list of names. Contracting officers only need to submit the information provided by the bidder, offeror or supplier when requesting an integrity verification.
      1. The Integrity Database Services (IDS) will determine whether additional information is required and will ask the contracting officer to contact the bidder, offeror or supplier if needed.
      2. If required by IDS, contracting officers must notify the bidder, offeror or supplier and request that a list of names be provided within a recommended 10 business days. Failure to provide the names within the specified timeframe will render the bid, offer or arrangement non-responsive.
    4. All bidders, offerors or suppliers must provide, if applicable, a complete list of all foreign criminal charges and convictions pertaining to itself, its affiliates and its proposed first tier subcontractors that, to the best of their knowledge and belief may be similar to one of the listed offences in the Ineligibility and Suspension Policy. This is to be provided using the Declaration form for procurement. See 5.5.5 Certifications, declarations and proofs.
  4. For existing contracts that do not contain the most recent Integrity Provisions:
    1. Contracting officers are to propose adding the new Integrity Provisions to the contract when exercising an option or modifying the terms of the contracts.
    2. Where the contractor refuses to make changes to the Integrity Provisions or provide the Certification as requested in the Template Letter for Addition of Provisions to an Existing Contract (see Annex 8.13: Letter Templates for Integrity), best efforts should be made to ensure that the supplier has a clear understanding of the terms of the new Integrity Provisions. This may include having a manager contact the contractor directly.
    3. Where the contractor still refuses to update the Integrity Provisions, the refusal should not prevent the continuation of business operations and the contract amendment may proceed.
    4. For assistance, contact the Acquisitions Program Integrity Secretariat (APIS) by email at TPSGC.DGAIntegrite-ABIntegrity.PWGSC@tpsgc-pwgsc.gc.ca.
  5. See section 5.16 Integrity Compliance for details on the process to be followed before contract award, issuance of a standing offer or supply arrangement, or publishing of a pre-qualified supplier list.

4.21.1 Administrative Agreements

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Administrative Agreements are managed by the Departmental Oversight Branch (DOB). They are negotiated agreements between Public Works and Government Services Canada (PWGSC) and a bidder, offeror, or supplier, current or potential, to, among other things:

  1. reduce the period of ineligibility to contract with Canada;
  2. enter into a contract where the Public Interest Exception (PIE) is invoked and where time is not of the essence; or
  3. continue a contract where the contracting authority has a right to terminate the contract due to non-compliance with the Ineligibility and Suspension Policy.

Additional information on Administrative Agreements can be found in Section 14. Administrative Agreements of the Ineligibility and Suspension Policy.

4.21.2 Public Interest Exception (PIE)

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  1. Where it is necessary to do so in public interest, Public Works and Government Services Canada may enter into a contract with a bidder, issue a standing offer with an offeror, or a supply arrangement with a supplier, that has been determined to be ineligible or has been suspended under the Ineligibility and Suspension Policy.
  2. A Public Interest Exception (PIE) cannot be invoked in situations where the supplier has no capacity to contract with Canada pursuant to subsection 750(3) of the Criminal Code.
  3. If a contract must be awarded to an ineligible or suspended supplier, the contracting officer must escalate the request to the Assistant Deputy Minister, Acquisitions Branch through the Acquisition Program Integrity Secretariat by email at TPSGC.DGAIntegrite-ABIntegrity.PWGSC@tpsgc-pwgsc.gc.ca.
  4. Complete details regarding Public Interest Exceptions are available in Section 15. Public Interest Exception of the Ineligibility and Suspension Policy.

4.21.3 Contracting with Subcontractors

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  1. When contracting with the Government of Canada, contractors understand that they cannot enter into a contract with first tier subcontractors that have been determined to be ineligible or suspended under the Ineligibility and Suspension Policy. A first tier contractor is defined in the Policy as “a subcontractor with whom a supplier has a direct contractual relationship to perform a portion of the work pursuant to a contract or real property agreement between the supplier and Canada, unless the subcontractor merely supplies commercial-off-the-shelf goods to the supplier”.
  2. Bidders are responsible for verifying the status of first tier subcontractors prior to submitting a bid that identifies first tier subcontractors and before entering into a contractual relationship with first tier subcontractors.
  3. If a contractor must enter into a first tier subcontract with an ineligible or suspended subcontractor, they must first obtain written approval of the appropriate deputy head or delegate by forwarding this request to the contracting authority. Contractors who enter into a first tier subcontract with an ineligible or suspended first tier subcontractor without the prior written consent from the relevant deputy head can be declared ineligible for a period of five years from the date of Public Works and Government Services Canada (PWGSC)’s determination.
  4. If a successful bidder wishes to replace a first tier subcontractor that has been determined ineligible or suspended prior to contract award, a rigorous re-evaluation process that ensures that all bidders are treated fairly and equally must be followed. This process will be tailored, as appropriate, to individual situations and the specific procurement circumstances at hand.
  5. Any request from successful bidders wishing to replace a now ineligible or suspended first tier subcontractor, or from contractors wishing to enter into a first tier subcontract with an ineligible or suspended subcontractor must be sent to the Acquisition Program Integrity Secretariat (APIS) by email at TPSGC.DGAIntegrite-ABIntegrity.PWGSC@tpsgc-pwgsc.gc.ca.
  6. In situations where there is a prolonged bid evaluation period, contracting officers must remind the successful bidder, using the template provided by APIS, that:
    1. they are obligated to obtain PWGSC approval prior to entering into a contractual relationship with an ineligible or suspended first tier subcontractor; or
    2. they can replace a now ineligible or suspended first tier subcontractor, whose eligibility standing has changed since the bid was originally submitted, as long as the subcontractor suggested as a replacement is accepted by Canada.
  7. Additional information regarding contracting with ineligible or suspended subcontractors can be found in Section 16. Subcontractors of the Ineligibility and Suspension Policy.
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