Don’t become ineligible [CANSEC2016D2]

26 May 2016

The Department of Public Works and Government Services Canada (PWGSC) has overhauled its Integrity Provisions and introduced a new Ineligibility and Suspension Policy, which are collectively referred to as the “Integrity Regime”.

The central purpose of the Integrity Regime is to render suppliers ineligible to contract with the Government of Canada if they have been convicted of, or plead guilty to, specified offences. The offences range from criminal offences directly related to dealings with government (such as fraud against Her Majesty or bribery) and more general offences (such as drug trafficking or tax evasion) to offences under the Competition Act, and similar foreign offences. In short, the Integrity Provisions set out the ethical requirements that suppliers must meet in order to be eligible to do business with the Government of Canada.

The Ineligibility and Suspension Policy sets out the process PWGSC will use to determine ineligibility and the circumstances in which PWGSC may reduce any period of ineligibility.

This Ineligibility and Suspension Policy also introduces the use of independent third-party monitors (such as independent legal counsel) to assess a supplier’s involvement in ethical violations of its affiliates and to provide ongoing monitoring of a supplier’s compliance with ‘administrative agreements’, which may be used by PWGSC to reduce a stipulated period of ineligibility or avoid suspension.

Also, the Integrity Regime renders suppliers ineligible to do business with the Government of Canada if their affiliates have been convicted of, or pleaded guilty to, specified offences, depending on the extent to which the supplier was involved in the actions that resulted in the affiliate’s offensive conduct.

The Integrity Regime extends its application not only to suppliers, but also prohibits the use of subcontractors that do not meet the requirements of the Integrity Regime.

For further information, visit Conlin Bedard LLP (Booth 210).

(299 words)