Information bulletin: Third party criteria for qualification

Effective date

This information bulletin is effective April 4, 2016.

Context

The Ineligibility and Suspension Policy enables Public Works and Government Services Canada (PWGSC) to issue information bulletins associated with the policy to provide greater clarity for informational purposes only.

Role of third parties

Under the Integrity Regime, in certain circumstances, PWGSC may require suppliers to retain a third party in the following circumstances: 

• in connection with a determination of ineligibility, if PWGSC requires,
  1. validation of a certification or declaration,
  2. validation of information provided by a supplier with respect to whether it directed, influenced, authorized, assented to, acquiesced in or participated in the commission of a listed offence by an affiliate, or
  3. information with respect to foreign charges and convictions;
• where information pertaining to the supplier is required by PWGSC for purposes of determining whether a reduction is warranted to the period of the supplier's ineligibility through an Administrative Agreement;
• pursuant to an Administrative Agreement, in which case the terms and conditions of appointment of the third party will be described in the Administrative Agreement. The third party will be required to provide periodic reporting to PWGSC, as provided for in the Administrative Agreement; and
• prior to submitting a bid/offer after the supplier's period of ineligibility has expired, if the supplier did not enter into an Administrative Agreement with PWGSC or if PWGSC determined that the supplier breached the Administrative Agreement. In this case, the third party will be required to provide a report confirming that measures have been put in place in order to avoid the re-occurrence of the types of wrongdoing that led to the ineligibility. Failure to provide the third-party report will result in any bid or offer being declared non-responsive.

Criteria for qualification

A supplier may propose a third party of their choice provided they hold a recognized designation or accreditation, such as a Certified Professional Accountant (CPA) license, public accounting license or membership in a provincial or territorial Law Society. It is within the sole discretion of PWGSC to determine whether the proposed third party has sufficient expertise, experience and independence to provide the services required.

Depending on the nature of the offence, a third party may also be required to have:

• Ability to obtain judgments for foreign convictions, identify the constitutive elements of foreign offences where required
• Experience in corporate ethics and compliance programs, investigations and enquiries
• Experience reviewing and evaluating global anti-corruption compliance programs, where required
• Experience in overseeing prevention and remedial programs and/or preventing, detecting and remediating fraud
• Experience working with Government
• Sufficient resources to effectively monitor an ethics and compliance program over a multi-year period where an administrative agreement is involved

Avoiding conflict of interest

Third parties are required to provide information to the supplier and PWGSC on any potential conflict of interest, real or perceived, that may affect their independence, such as:

• Financial interests to the supplier/potential supplier
• Loans and guarantees to or from the supplier/potential supplier
• Close business relationships with the supplier/potential supplier
• Family and personal relationships with the supplier/potential supplier
• Future or recent employment with the supplier/potential supplier
• Serving as officer, director or company secretary of the supplier/potential supplier
• Providing non-assurance services to the supplier/potential supplier
• Making management decisions for the supplier/potential supplier

Proceeding with a third party

• If a supplier requires the services of a third party, they must propose one based on the criteria provided.
• The qualified third party must sign a Third Party Certification form indicating that they:
  1. have been engaged by a supplier to provide third party certification
  2. acknowledge their duty and that of the supplier they represent to provide an independent and objective assessment of the issues
  3. acknowledge that their duty prevails over any obligations owed to any parties by whom or whose on behalf they are engaged and that PWGSC will rely on their opinion to make a declaration of ineligibility under the Ineligibility and Suspension Policy.
• Once the qualified third party signs a Third Party Certification form, the supplier must propose the use of the third party to the Registrar of the Ineligibility and Suspension List. It is within the sole discretion of PWGSC to refuse a supplier's proposal.
• Once approved by PWGSC, the qualified third party will proceed to provide verification and/or compliance monitoring services as required. The supplier may be required to provide a copy of the terms of engagement to PWGSC.
• The qualified third party submits materials (i.e. reports) to PWGSC as required, including relevant signatures certifying that all opinions provided are fair, objective and non-partisan, and relate only to matters within their area of expertise for which they were retained

How to contact us

If you have questions, please contact the Integrity Regime team:

Toll free:

1-844-705-2084

Email:

PWGSC.O.integrity-TPSGC.O.integrite@pwgsc-tpsgc.gc.ca