Backgrounder
March 2014
Public Works and Government Services Canada (PWGSC) is committed to protecting the integrity of its procurement and real property transactions, and ensuring it does business with suppliers that respect the law and act with integrity.
The department has a strong framework in place to support accountability and integrity in procurement and real property transactions, with strong governance, codes of conduct, fairness monitoring, audits, financial controls and internal investigations.
Over time, PWGSC has put in place numerous measures that demonstrate our commitment to protecting the integrity of its operations.
- On March 1, 2014, the department implemented a number of new measures to further strengthen the integrity of its procurement and real property transactions.
- PWGSC added nine new offences that will render convicted suppliers ineligible to do business with PWGSC. The new offences are:
- extortion;
- bribery of judicial officers;
- bribery of officers;
- secret commissions;
- criminal breach of contract;
- fraudulent manipulation of stock exchange transactions;
- prohibited insider trading;
- forgery and other offences resembling forgery; and
- falsification of books and documents.
- Suppliers who have received foreign convictions similar to the Canadian convictions listed in the Integrity Framework will be ineligible to obtain PWGSC contracts and real property transactions.
- Suppliers who have pleaded guilty to criminal offences listed in the Integrity Framework, and have received an absolute or conditional discharge, will become ineligible to do business with PWGSC.
- Suppliers who were convicted or pleaded guilty to one of the offences listed in the Integrity Framework will be ineligible to obtain PWGSC contracts and real property transactions for 10 years from the date of conviction. Once the time period elapses, they must certify that measures have been put in place to avoid the reoccurrence of such convictions.
- Suppliers will be required to bind their subcontractors to the same terms and conditions listed in their contract or lease agreement with PWGSC.
- PWGSC added nine new offences that will render convicted suppliers ineligible to do business with PWGSC. The new offences are:
- In November 2012, the department further strengthened the integrity of its procurement and real property transactions by removing the leniency exemption, which allowed an applicant to come forward, cooperate and plead guilty in exchange for lenient treatment in sentencing. Given the seriousness of the infractions identified in the Integrity Framework, PWGSC no longer does business with suppliers found guilty of these offences, unless exceptional circumstances require it for the public interest. This applies even when leniency may have been granted to the supplier through a leniency program.
- In July 2012, the department regrouped most of its oversight measures into a formal Integrity Framework and extended the list of offences to include money laundering, participation in activities of criminal organizations, income and excise tax evasion, bribing a foreign public official and offences in relation to drugs.
- For the first time, PWGSC also applied its Integrity Framework to all real property transactions (which includes leasing agreements for all uses, letting of commercial crown-owned space and the acquisition and disposal of crown-owned properties).
- In April 2012, PWGSC introduced a new Code of Conduct, which incorporates the department's responsibilities under the Values and Ethics Code for the Public Sector, the PWGSC Statement of Values and Guiding Principles, and the Standards of Conduct consistent with our culture and our unique roles and duties. The Code is a complement to the department's People Management Philosophy and our Commitments, to be used not only to guide how we work and interact with each other, but also to guide how we make decisions and do business every day.
- In October 2010, the department added corruption, collusion, bid-rigging or any other anti-competitive activity to the list of offences that render convicted suppliers ineligible to do business with PWGSC.
- In November 2007, PWGSC introduced a Code of Conduct for procurement, which included the following offences that render convicted suppliers ineligible to obtain procurement contracts: frauds against the government under the Criminal Code; frauds under the Financial Administration Act; and payment of a contingency fee to a person to whom the Lobbying Act applies. The Code of Conduct for procurement applies to suppliers and to PWGSC staff, and outlines what is acceptable conduct when contracting with the government. The new code helps ensure that the department conducts its business to the highest ethical standards—standards that Canadian citizens expect the government to uphold and protect.
- In 2005, PWGSC implemented the Fairness Monitoring Program, which was expanded in 2009 to provide management, client departments, suppliers, Parliament and Canadians with independent, third-party assurance that PWGSC's large or complex procurement activities are conducted in a fair, open and transparent manner. The program covers all complex or major departmental procurement and real property transactions. The findings of each review are publicly released on the department's website.
Under the Integrity Framework, the department can no longer enter into a contract or a real property transaction with suppliers and the current members of their board of directors, including company affiliates, convicted of listed offences. This also applies to those who have pleaded guilty to the listed offences and have received an absolute or conditional discharge.
PWGSC may cancel a contract following a conviction if the Terms and Conditions of the contract include any of the enhanced integrity provisions. As these provisions are not retroactive, if they were not in the Terms and Conditions when the contract was awarded, then PWGSC is legally obligated to honour contracts.
If concerns emerge about a supplier with whom PWGSC has a contract or lease in place, the department can heighten scrutiny and oversight, and rigorous controls may be imposed for the remainder of the contract or lease to protect taxpayers' interests. Should wrongdoing be suspected, PWGSC will not hesitate to take further action, including requesting investigations by the Royal Canadian Mounted Police or the Competition Bureau.
The department's efforts to strengthen procurement integrity are ongoing. PWGSC has been working diligently over time to protect the integrity of its operations and conduct its business in accordance with the highest ethical standards. The department will continue to deliver high-quality, central programs and services that ensure sound stewardship on behalf of Canadians and meet the needs of federal institutions.
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