New Public Works and Government Services Canada (PWGSC) Integrity Regime

Procurement Bulletin 2015-10

October 2015

PWGSC has created a new Integrity Regime effective July 3, 2015 that replaces the current Integrity Framework. Under the new regime, suppliers are ineligible for contract award for 10 years for being convicted of certain offences such as fraud, bribery or tax evasion, within the past 3 years. The period of ineligibility may be reduced to 5 years under certain conditions along with the requirement of an administrative agreement.

The Integrity Regime applies to all procurement and real property transactions as there are no dollar thresholds, with certain exceptions such as the use of acquisition cards and transactions with Aboriginal band councils. Call-ups against standing offers and use of supply arrangements do not require a check since this is done at the time the procurement instrument is created.

PWGSC has set up a new Portal; Integrity Database Services (IDS), which is to be used to enter the integrity information and then submit for verification.

The ESDC integrity process will be revised and the conditions contained in solicitations and contracts to reflect the revised terms and processes under the new regime.

See the attached flow chart which describes the process.

Key elements of the regime are:
  • A 10 year ineligibility for contract award due to convictions or similar foreign convictions, which may be reduced to 5 years if meeting certain conditions such as supplier cooperating with law enforcement and with an administrative agreement in place.
  • The supplier is given a chance (due process) to refute PWGSC’s findings.
  • When submitting a verification request for companies a complete listing of board of directors will be required. For individuals only their legal name will be required.
  • Integrity checks will now return a finding of “no match”, “ineligibility confirmed” or “caution”. When a caution is received, please discuss with management on whether any other actions are required.
  • For certain convictions as identified in the Criminal Code, the supplier loses their capacity to contract with the Crown until such time as a record suspension is obtained.
  • For charges against the supplier, suspension for up to 18 months or until the supplier is cleared. (An administrative agreement can potentially avoid this suspension.)
  • Determination by a third party if a supplier is involved when an affiliate is convicted, at the supplier’s expense.
  • PWGSC will maintain a public ineligibility list of companies that were determined ineligible by PWGSC to be awarded a Government of Canada procurement transaction. As of October 26, 2015, no supplier has yet been added to this list.
  • A public interest exception to allow for the contracting with an otherwise ineligible supplier when there is no other option.

If you have any questions, please contact NAASPO at: NC-NAASPO_PSNASA-GD.

For more information, you can also view the PWGSC website for the Government of Canada's Integrity Regime.

Distribution:

  1. Contracting & Procurement
  2. NAAPSO

Annex A:

ESDC Intergrety Process. Long description below

  • ESDC Integrity Process - Long Description

    Before awarding a contract, issuing a standing offer (SO) or a supply arrangement (SA), Procurement Specialists must first verify with the Registrar of ineligibility and suspension (the Registrar) that the bidder, offeror or supplier is not ineligible to be awarded a contract or suspended.

    This verification is not required when proceeding with one of the following:

    1. Call-up against a Standing Offers (SO);
    2. Task Authorization (TA);
    3. Contract amendment;
    4. Contract under a Supply Arrangement (SA);
    5. Confirming Order (CO); and
    6. Purchase made using the Acquisition Card.

    Procurement Specialists must consult their manager or policy for any other procurement instrument.

    If the verification result is “Ineligible”, the bidder will be declared non-responsive and the Procurement Specialist will continue with the next bidder. The department may enter into a contract with an ineligible or suspended supplier if it is considered to be in the public interest to do so. When a Public Interest Exception is invoked, PSPC must be contacted in order to put in place an administrative agreement which will only apply to this requirement. Unless time is of the essence (e.g., an emergency, unforeseen urgency), a supplier will be required to enter into an administrative agreement before being awarded a contract further to a Public Interest Exception.

    If a supplier becomes ineligible or suspended during the performance of a contract, ESDC may terminate the contract for default, subject to the requirements of the Ineligibility and Suspension Policy.