PWGSC's Integrity Framework

PWGSC has a strong framework in place to support accountability and integrity in its procurement and real property transactions. This includes policies, procedures and governance measures to ensure fairness, openness and transparency. Over time, the department has put in place numerous measures that demonstrate its commitment to doing business with suppliers that respect the law and act with integrity.

The table below outlines the key elements of PWGSC's Integrity Framework, including how, when and to whom it applies.

Types of contracts covered

The Integrity Framework applies only to PWGSC managed contracts and real property transactions. This includes:

  • construction contracts;
  • goods and services contracts (from office supplies, to military ships, to security systems, and everything in between); and
  • real property transactions (leasing agreements, letting of space and the acquisition and disposal of Crown-owned properties).
Dollar value of contracts covered

There is no dollar threshold. The Integrity Framework applies to all PWGSC-managed contracts and real property transactions.

Offences covered

A supplierFootnote 1 is ineligible to do business with PWGSC following a convictionFootnote 2 or a guilty plea with a conditional or absolute discharge for any of the following Canadian or similar foreign offences:

  • frauds against the government under the Criminal Code of Canada;
  • frauds under the Financial Administration Act;
  • payment of a contingency fee to a person to whom the Lobbying Act applies;
  • corruption, collusion, bid-rigging or any other anti-competitive activity under the Competition Act;
  • money laundering;
  • participation in activities of criminal organizations;
  • income and excise tax evasion;
  • bribing a foreign public official;
  • offences in relation to drug trafficking;
  • extortion;
  • bribery of judicial officers;
  • bribery of officers;
  • secret commissions;
  • criminal breach of contracts;
  • fraudulent manipulation of stock exchange transactions;
  • prohibited insider trading; 
  • forgery and other offences resembling forgery; and 
  • falsification of books and documents.
Discretionary provisions

PWGSC's Integrity Framework does not include discretionary provisions.
Applicability to sub-contractors / sublessors

PWGSC does not apply its Integrity Framework to sub-contractors. Its relationship is with the prime contractor.

However, all procurement instruments or leases stipulate that the contractor agrees to bind the subcontractor by the same conditions by which the contractor is bound under the contract.
Debarment Period

Debarment for 10 yearsFootnote 3.
Exceptions

The Public Interest Exception

  • applies in circumstances in which it is necessary to the public interest to enter into business with a supplierFootnote 1that has been convicted or has been conditionally or absolutely discharged of an offence under PWGSC's provisions.

Possible circumstances necessary to the public interest could include:

  • No other supplier is capable of performing the contract;
  • an emergency;
  • national security;
  • health and safety; and
  • economic harm.

The exception is applied on a case-by case basis by PWGSC.

In such cases, PWGSC could also impose additional stringent controls, administrative measures, and monitoring in the contract or real property agreement.
Recourse in the event of a conviction post contract award

PWGSC may terminate a contract or real property agreement for default if a conviction occurs post contract award, or may continue with the option to impose oversight and monitoring measures.
List of ineligible suppliers

PWGSC does not maintain a list of ineligible suppliersFootnote 1.

  • By bidding, suppliers certify that they do not have any of the convictionsFootnote 2 or have plead guilty and have been absolutely or conditionally discharged of offences under PWGSC's Integrity Framework.
  • PWGSC verifies the eligibility of suppliers and authorizes them for the specific transaction.

Applicability of Integrity Provisions to Other Government Departments

Other government departments and agencies can apply, within their authority, PWGSC's integrity provisions to their solicitations and contracts.

In order to assist these departments and agencies in applying the integrity provisions, PWGSC conducts supplier checks under memoranda of understanding (MOUs).

PWGSC has entered into an MOU with:

  • Aboriginal Affairs and Northern Development Canada;
  • The Canada Revenue Agency;
  • Defence Construction Canada;
  • The Jacques Cartier and Champlain Bridges Crown Corporation; and
  • Shared Services Canada.

Footnotes

Footnote 1

Supplier: An individual or company seeking to do business with the Government of Canada.

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Footnote 2

Convictions: The Integrity Framework applies to convictions of the supplier or anyone, be it an individual or other entity, who directly or indirectly, legally or de facto, controls the company. This includes any affiliates and members of the board of directors.

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Footnote 3

Debarment Period: In order for bids to be admissible following the 10-year debarment period, a record suspension must be obtained, or capacities restored by the Governor in Council, for fraud-related offences under the Criminal Code of Canada or the Financial Administration Act.

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