Frequently Asked Questions

PWGSC is committed to protecting the integrity of its procurement and real property transactions and to continually improving and strengthening the provisions of its Integrity Framework and practices.

Based on feedback from suppliers, industry associations, and other government departments and agencies, PWGSC has identified opportunities to strengthen the framework, which it is now implementing.

PWGSC continues to monitor its procurement and real property transactions closely to ensure the highest standard of integrity, protect the interests of taxpayers and reinforce ethical behaviour. As part of this commitment, the Department may implement additional measures and/or modify measures that are already in place.

Any new changes will only apply to future PWGSC solicitations. They will not affect previously signed contracts and leases.

PWGSC believes that past commission of any of the offences on the expanded list by a bidder is a rational predictor that the bidder may engage in this type of fraudulent behaviour again, and as a result directly or indirectly undermine the fairness, openness or transparency of the bidding or leasing process.

An admission of guilt, which is similar to being found guilty, acknowledges past behaviour that is a risk to the procurement or lease processes.

No. Discharges are given to individuals only.

Yes, companies convicted or absolutely/conditionally discharged of any of the listed offences in Canada or similar offences abroad are ineligible to do business with PWGSC.

Suppliers seeking to do business with PWGSC will be required to certify that neither they, nor any members of their board of directors or affiliates, have been convicted or absolutely/conditionally discharged of an offence in a foreign jurisdiction for an offence that is substantively similar to any of the offences listed in PWGSC's integrity provisions.

The Government of Canada has contracts with prime contractors only. However, PWGSC is including a clause in all its contracts that requires subcontractors to be bound by the same terms and conditions as the prime contractor.

PWGSC is taking steps to ensure that through its prime contractors, it is not indirectly doing business with a subcontractor that has been convicted or been conditionally/absolutely discharged of one of the offences listed in the integrity provisions.

PWGSC's relationship is with the prime contractor. Therefore, contractors are accountable for ensuring that subcontractors respect the terms and conditions of the contract.

Suppliers convicted of a listed offence will be ineligible for 10 years from the date of conviction. This also applies to those who pleaded guilty to a listed offence and received a conditional or an absolute discharge.

Once the period elapses, suppliers will be required to attest that they have implemented ethical business conduct measures in order to be eligible to do business with PWGSC. These measures could include, for example, implementing compliance programs or internal controls, or establishing a plan to monitor policies.

Since the Integrity Framework was implemented in July 2012, the Department has been consulting with stakeholders and has carried out its own assessment of the impact of the integrity provisions. During this process, PWGSC has identified some unintended consequences of the provisions. For example, if a supplier was convicted several decades ago, it may no longer be possible to obtain the documents necessary in order to apply for a record suspension. Without a fixed debarment period, the supplier would not be eligible to do business with PWGSC, even if it would otherwise be eligible to apply for, and receive, a record suspension.

Other jurisdictions, both in Canada and abroad, have adopted such an approach to debarment. This time period is sufficient in length to allow suppliers and individuals to redress the circumstances that led to their conviction.

In November 2012, PWGSC introduced the public interest exception for exceptional circumstances in which it is necessary for PWGSC to enter into a contract or a real property transaction with a supplier who would otherwise be ineligible under the integrity provisions.

For example, the public interest exception could be used to protect the health and safety of Canadians in a public health emergency or when life-saving pharmaceutical products can only be obtained through one company.

Possible circumstances where this would be necessary to the public interest could include the following:

• No other supplier is capable of carrying out the contract
• An emergency
• National security
• Health and safety
• Economic harm

PWGSC will apply the public interest exception on a case-by-case or contract-by-contract basis. PWGSC could also impose additional stringent controls, administrative measures and monitoring under the contract or real property agreement.

No. Only PWGSC can invoke the exception.  PWGSC will decide on a case-by-case basis whether the public interest exception needs to be invoked.

The duration of the public interest exception will be considered and applied on a case-by-case basis.

PWGSC does not have a list of ineligible suppliers. Instead, PWGSC verifies the conviction status of suppliers on a per-contract basis. This ensures that the Department considers up-to-date information regarding convictions in its decision to award a contract to a particular supplier.

When submitting a bid, the supplier certifies that it complies with the integrity measures, in other words, that neither it, nor any members of its board of directors nor any of its affiliates, have a conviction nor been conditionally or absolutely discharged of an offence under PWGSC's Integrity Framework.

The supplier also provides the names of the members of its board of directors. These names, along with the supplier's name, are run through the database of all the convictions. Prior to awarding the contract, PWGSC verifies the certification made by the supplier.

No. The integrity provisions apply only to procurement and real property transactions put in place under PWGSC's authority. Since PWGSC is the main contracting arm of, and real property manager for, the Government of Canada, the integrity provisions will apply to most contracts and real property transactions entered into by the Government of Canada.

In addition, PWGSC has entered into memoranda of understanding (MOUs) with the following departments and agencies, which have decided to apply PWGSC's integrity provisions in their contracts: 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.

Due diligence and oversight have always been part of PWGSC's operations. The Department regularly conducts scans of its environment to determine factors that could influence the conduct of its business, which could include commissions, police investigations, police raids and charges.

PWGSC is closely monitoring the Charbonneau Commission hearings. When serious allegations are made against companies, PWGSC verifies whether an existing contract is in place. In such cases, the Department would increase the level of oversight and due diligence for the duration of the contract.

PWGSC takes the issue of integrity in procurement and real property transactions very seriously. If concerns emerge about a company with which PWGSC has a contract, we can and do heighten scrutiny and administrative measures for that contract. Depending on the nature of the concern, these measures may include an audit or procurement review to verify the presence of irregularities.

Should wrongdoing be suspected, the Department will not hesitate to take further action, including requesting that a formal investigation be conducted by the Royal Canadian Mounted Police or the Competition Bureau.

PWGSC's Integrity Framework relies on convictions and guilty pleas with conditional or absolute discharges. All suppliers, members of boards of directors and affiliates convicted of an offence or in possession of a conditional or an absolute discharge are therefore ineligible for PWGSC contracts and leases.

PWGSC takes the integrity of procurement and real property transactions very seriously. If concerns emerge about a company with which PWGSC has a contract or lease, we can implement heightened scrutiny and administrative measures for the duration of the contract or lease. Depending on the nature of the concern, these measures may include an audit or procurement review to verify the presence of irregularities.

Should wrongdoing be suspected, the Department will not hesitate to take further action, including requesting that a formal investigation be conducted by the Royal Canadian Mounted Police or the Competition Bureau.

In October 2010, the Department added bribery, collusion, bid-rigging and other anti-competitive activities to its list of offences that would render a bidder ineligible if convicted. At the time, the company or person who had been granted leniency by the Competition Bureau was eligible for exemption from the provisions.

In November 2012, PWGSC removed the leniency exemption. The impact was as follows:

• For contracts or real property transactions (including standing offers and supply arrangements) entered into after November 2012, PWGSC would  declare bids non-responsive should companies, any member of their board of directors or any of their affiliates be convicted of an offence on PWGSC's list.
• For contracts or real property leases signed prior to November 2012 with companies who were granted leniency, PWGSC honoured its contractual agreements as legally obligated; however, heightened scrutiny and oversight, and rigorous controls were imposed to protect taxpayers' interests.
• PWGSC has been systematically amending all standing offers and supply arrangements issued prior to November 2012 to include the revised provisions, where feasible.