Guide to the Ineligibility and Suspension Policy
The Ineligibility and Suspension Policy directs the Government of Canada’s Integrity Regime. The policy sets out when and how a supplier may be declared ineligible or suspended from doing business with the government. Public Services and Procurement Canada is the department responsible for applying the policy.
The purpose of this guide is to help suppliers better understand their responsibilities as a prospective or current supplier to government. You will learn which offences and charges will or may lead to ineligibility or suspension, your responsibilities toward your affiliates and subcontractors and the various processes in place to ensure that the government deals only with ethical suppliers.
In this guide
- Ineligibility
- Suspension
- Termination
- Pardons
- Reducing the ineligibility period
- Administrative agreements
- Public interest exceptions
- Foreign convictions
- Subcontractors
- Affiliates
- Existing contracts
- Certification
- Third party monitoring and verification
Ineligibility
Some offences will automatically make you ineligible to do business with the government, while others may make you ineligible. Consult the list of offences to learn how each affects your eligibility.
Consult the list of ineligible and suspended suppliers under the Integrity Regime.
Offences that will make you ineligible
The following offences will make you ineligible to do business with the government. Both your period of ineligibility and, following an administrative agreement, your ability to get this period reduced depend on the type of offence.
Table A: Offences leading to automatic ineligibility
| Offence | If the offence was committed… | Your period of ineligibility from the date of determination is… | Pursuant to… | Reduction to the period of ineligibility |
|---|---|---|---|---|
| Accounting (offences), Corruption of Foreign Public Officials Act, section 4 | In the past three years | Ten years | Ineligibility and Suspension Policy | Up to five years |
| Agreements or arrangements of federal financial institutions, Competition Act, section 49 | In the past three years | Ten years | Ineligibility and Suspension Policy | Up to five years |
| Bid rigging, Competition Act, section 47 | In the past three years | Ten years | Ineligibility and Suspension Policy | Up to five years |
| Bribery of judicial officers, etc., Criminal Code, section 119 | In the past three years | Ten years | Ineligibility and Suspension Policy | Up to five years |
| Bribery of officers, Criminal Code, section 120 | In the past three years | Ten years | Ineligibility and Suspension Policy | Up to five years |
| Bribing a foreign public official, Corruption of Foreign Public Officials Act, section 3 | In the past three years | Ten years | Ineligibility and Suspension Policy | Up to five years |
| Conspiracies, agreements or arrangements between competitors, Competition Act, section 45 | In the past three years | Ten years | Ineligibility and Suspension Policy | Up to five years |
| Criminal breach of contract, Criminal Code, section 422 | In the past three years | Ten years | Ineligibility and Suspension Policy | Up to five years |
| Deceptive notice of winning a prize, Competition Act, section 53 | In the past three years | Ten years | Ineligibility and Suspension Policy | Up to five years |
| Extortion, Criminal Code, section 346 | In the past three years | Ten years | Ineligibility and Suspension Policy | Up to five years |
| False entry, certificate or return, Financial Administration Act, subsection 80(1)(d) | At any time | As long as you are without capacity to contract | Disability to contract, Criminal Code, section 750(3) | None possible |
| False or deceptive statements, Income Tax Act, section 239 and Excise Tax Act, section 327 | In the past three years | Ten years | Ineligibility and Suspension Policy | Up to five years |
| False or misleading representation, Competition Act, section 52 | In the past three years | Ten years | Ineligibility and Suspension Policy | Up to five years |
| (Falsification of) books and documents, Criminal Code, section 397 | In the past three years | Ten years | Ineligibility and Suspension Policy | Up to five years |
| Foreign directives, Competition Act, section 46 | In the past three years | Ten years | Ineligibility and Suspension Policy | Up to five years |
| Forgery and other offences resembling forgery, Criminal Code, section 366, section 367 and section 368 | In the past three years | Ten years | Ineligibility and Suspension Policy | Up to five years |
| Fraud, Criminal Code, section 380 | At any time | As long as you are without capacity to contract | Disability to contract, Criminal Code, section 750(3) | None possible |
| Fraud against Her Majesty, Financial Administration Act, subsection 80(2) and section 154.01 | At any time | As long as you are without capacity to contract | Disability to contract, Criminal Code, section 750(3) | None possible |
| Frauds on the government, Criminal Code, section 121 | At any time | As long as you are without capacity to contract | Disability to contract, Criminal Code, section 750(3) | None possible |
| Fraudulent manipulation of stock exchange transactions, Criminal Code, section 382 | In the past three years | Ten years | Ineligibility and Suspension Policy | Up to five years |
| Importing and exporting (of substance), Controlled Drugs and Substances Act, section 6 | In the past three years | Ten years | Ineligibility and Suspension Policy | Up to five years |
| Laundering proceeds of crime, Criminal Code, section 462.31 | In the past three years | Ten years | Ineligibility and Suspension Policy | Up to five years |
| Offence committed outside Canada, Corruption of Foreign Public Officials Act, section 5 | In the past three years | Ten years | Ineligibility and Suspension Policy | Up to five years |
| Participation in activities of criminal organization, Criminal Code, section 467.11, section 467.12 and section 467.13 | In the past three years | Ten years | Ineligibility and Suspension Policy | Up to five years |
| Production of substance, Controlled Drugs and Substances Act, section 7 | In the past three years | Ten years | Ineligibility and Suspension Policy | Up to five years |
| Prohibited insider trading, Criminal Code, section 382.1 | In the past three years | Ten years | Ineligibility and Suspension Policy | Up to five years |
| Requirement to file return, Lobbying Act, section 5 | In the past three years | Ten years | Lobbying Act, section 14(1) | Up to five years |
| Requirement to file return, Lobbying Act, section 7 | In the past three years | Ten years | Lobbying Act, section 14(1) | Up to five years |
| Secret commissions, Criminal Code, section 426 | In the past three years | Ten years | Ineligibility and Suspension Policy | Up to five years |
| Selling defective stores to Her Majesty, Criminal Code, section 418 | At any time | As long as you are without capacity to contract | Disability to contract, Criminal Code, section 750(3) | None possible |
| Selling or purchasing office, Criminal Code, section 124 | At any time | As long as you are without capacity to contract | Disability to contract, Criminal Code, section 750(3) | None possible |
| Trafficking in substance, Controlled Drugs and Substances Act, section 5 | In the past three years | Ten years | Ineligibility and Suspension Policy | Up to five years |
Other offences leading to automatic ineligibility
- You entered into a contract with an ineligible first-tier subcontractor
- a first-tier contractor is one with whom you have a direct contractual relationship
- You provided Public Services and Procurement Canada with a false or misleading certification or declaration in relation to the policy
Consult the policy
Offences that may make you ineligible
The following offences may make you ineligible to do business with the government. Public Services and Procurement Canada will determine your ineligibility. Both your period of ineligibility and, following an administrative agreement, your ability to get this period reduced depend on the type of offence.
Table B: Offences leading to discretionary ineligibility
| Offence | If the offence was committed… | Your period of ineligibility from the date of determination is… | Pursuant to… | Reduction to the period of ineligibility |
|---|---|---|---|---|
| Convicted of an offence outside of Canada that is similar to an offence listed in Table A: Offences leading to automatic ineligibility | In the past three years | Ten years | Ineligibility and Suspension Policy | Up to five years |
| Your affiliate was convicted of an offence outside of Canada that is similar to an offence listed in Table A: Offences leading to automatic ineligibility and you directed, influenced, authorized, assented to, acquiesced in or participated in your affiliate committing the offence | In the past three years | Ten years | Ineligibility and Suspension Policy | Up to five years |
| You breached any term or condition of an administrative agreement | Any time during the administrative agreement | Possibly longer than the original period of ineligibility that was reduced by the administrative agreement | Ineligibility and Suspension Policy | Not applicable |
How Public Services and Procurement Canada determines ineligibility
The department may determine ineligibility:
- on its own initiative
- upon request from a supplier
- upon request from another federal organization to which the policy applies
If you are notified of being ineligible, the department will provide information about the processes available to you.
Requesting a limited review
You may request a limited review of a determination of ineligibility:
- if your affiliate was convicted of an offence outside of Canada that is similar to an offence listed in Table A: Offences leading to automatic ineligibility
- if you did not direct, influence, authorize, assent to, acquiesce in or participate in your affiliate committing the offence
- within 30 days of receiving a notice of ineligibility
As part of the limited review, you may present evidence and written submissions to the department before it makes its final determination.
Consult the policy
- Ineligibility and Suspension Policy, Circumstances that may lead to a determination of ineligibility or suspension
- Ineligibility and Suspension Policy, Limited review of determinations of ineligibility
Suspension
The following charges may make you suspended from doing business with the government. The suspension period is 18 months from the date that Public Services and Procurement Canada determines the suspension. The period may be extended pending final disposition of the charges. If you are convicted, the department will determine ineligibility.
Table C: Charges leading to suspension
| Charge | If the charge was filed… | Your period of suspension from the date of determination is… | Pursuant to… | Reduction to the period of suspension |
|---|---|---|---|---|
| Charged with, or admits guilt of an offence in Canada that is similar to an offence listed in Table A: Offences leading to automatic ineligibility | In the past three years | Eighteen months, subject to extension pending final disposition of the charges | Ineligibility and Suspension Policy | May be stayed by an administrative agreement |
| Charged with, or admits guilt of an offence outside of Canada that is similar to an offence listed in Table A: Offences leading to automatic ineligibility | In the past three years | Eighteen months, subject to extension pending final disposition of the charges | Ineligibility and Suspension Policy | May be stayed by an administrative agreement |
How Public Services and Procurement Canada determines suspension
The department may determine suspension:
- on its own initiative
- upon request from a supplier
- upon request from another federal organization to which the policy applies
Once you are notified of being suspended, the department will provide information about the processes available to you.
Consult the policy
- Ineligibility and Suspension Policy, Circumstances that may lead to a determination of ineligibility or suspension
- Ineligibility and Suspension Policy, Process for suspensions
Termination
If you are determined as ineligible during the life of the contract or real property agreement, the department may terminate for default. In this case, it will notify you of the violation and will give you an opportunity to show cause as to why you should not be terminated.
If the department decides to continue with the contract or real property agreement, you must enter into an administrative agreement to assure the department that you are taking steps to address the causes of the misconduct.
Consult the policy
Pardons
The department will not determine you as ineligible:
- if you prove that you or your affiliate have been granted an absolute discharge, conditional discharge (and have satisfied the conditions), a pardon or a record suspension
- if you prove that you have benefitted from a foreign measure that, based on the opinion of the department, is similar to a Canadian pardon
Consult the policy
Reducing the ineligibility period
The department does not allow for reinstatement. However, if you have been determined to be ineligible and have cooperated with law enforcement or have taken positive steps to address the causes of the conduct that lead to the ineligibility, you may be able to have your ineligibility period reduced by up to five years.
You may apply for this reduction at any time, including before you bid and when in contract.
The ineligibility time limit does not include offences listed in the Criminal Code. Those offences make you permanently ineligible to do business with the government unless you are granted a pardon.
Determining a reduction
To determine whether to grant a reduction, the department will consider whether you have done at least one of the following:
- You have cooperated with law enforcement authorities
- You have undertaken remedial actions to address the wrongdoing that led to your ineligibility
If your ineligibility period has been reduced to five years, you must:
- enter into an administrative agreement with the government and comply with its terms and conditions
- get third-party certification at your own expense, which will:
- confirm that you have addressed the actions and behaviour that led to the conviction
- monitor the agreement
Without certification, you remain ineligible.
Administrative agreements
An administrative agreement is an arrangement between the supplier and the government. It is used when the department determines that it must exercise additional caution to further mitigate risks of contracting with a particular supplier.
It includes conditions that the supplier must fulfil to be eligible to be awarded a federal contract. Conditions include remedial and compliance measures. The agreement must be monitored by a qualified and independent third party, recognized by the department and at the supplier’s expense.
The agreement may be required:
- to reduce the period of a supplier’s ineligibility
- to enter into a contract or real property agreement further to a Public Interest Exception where time is not of the essence
- instead of, or to temporarily pause, a suspension
- instead of terminating an existing contract or real property agreement due to a determination of ineligibility or suspension
Consult the list of suppliers subject to administrative agreements
Consult the policy
Public interest exceptions
The Public Interest Exception allows the government to conduct business with an ineligible supplier when it is in the public interest. The exception is applied on a case-by case basis by the authority issuing the contract or real property agreement.
The department may apply the exception when:
- there is an emergency where delay could harm public interest
- the supplier is the only person capable of performing the contract or providing the real property agreement
- the contract is essential to maintain sufficient emergency stocks
- not entering into the contract or real property agreement with the supplier would have a significant adverse impact on the health, national security, safety, public security or economic or financial wellbeing of Canadians or the functioning of any portion of the federal public administration
When an exception is involved, an administrative agreement between the department and the supplier is required.
Learn more
Consult the policy
Foreign convictions
If you were convicted, in the last three years of an offence outside of Canada that is similar to an offence listed in the policy, you are ineligible for ten years.
You must retain the services of an independent third party to provide the information on the foreign conviction. Using that information, the department assesses what elements constitute the foreign offence to determine how similar the conviction is to a listed offence in Canada.
To help make its final determination, the department requires answers to the following questions:
- In the case of a conviction, did the court act within its jurisdiction?
- Was the supplier afforded the right to appear during the court’s proceedings or to submit to the court’s jurisdiction?
- Was the court’s decision obtained by fraud?
- Was the supplier entitled to present to the court every defence that it would have been entitled to present had the proceeding been tried in Canada?
Subcontractors
The department applies to all suppliers. As a supplier, you cannot subcontract with an ineligible supplier. You must verify the status of your prospective first-tier subcontractors prior to entering into a contract. A first-tier subcontractor is one with whom you have a direct contractual relationship.
If you require the services of a suspended or ineligible subcontractor, you will need to get written consent from the contracting authority. If you enter into a contract with an ineligible subcontractor without written consent when information about that subcontractor’s ineligibility or suspension was reasonably available, you will be ineligible to do business with the government for five years.
Learn more
Consult the policy
Affiliates
If you have an affiliate, you may be determined as ineligible based on the opinion of the department:
- if your affiliate was convicted, in the past three years, of an offence listed in the policy or an offence similar to one listed in the policy and you directed, influenced, authorized, assented to, acquiesced in or participated in committing the offence
You must retain the services of an independent third party to assess your involvement in the actions of the affiliate that led to the conviction. This assessment must be done at your expense and provided to the department. Public Services and Procurement Canada will make a determination.
Existing contracts
If the department determines a supplier to be ineligible or suspended during a contract or real property agreement, the contracting authority may terminate the contract or agreement for default.
The supplier will be given an opportunity to show cause as to why the termination should not be exercised.
An administrative agreement between the supplier and the department may be required if a decision is taken to not terminate the contract or real property agreement.
Certification
By submitting a bid for a solicitation that contains the integrity provisions, you certify all of the following:
- You have read and understand the Ineligibility and Suspension Policy
- You understand that certain domestic and foreign criminal charges and convictions, and other circumstances described in the policy will or may result in a determination of ineligibility or suspension under the policy
- You are aware that the department may request additional information, certifications, and validations from you or a third party for purposes of making a determination of ineligibility or suspension
- You have provided with your bid a complete list of all foreign criminal charges and convictions pertaining to you, your affiliates and your proposed first-tier subcontractors that, to the best of your knowledge and belief, may be similar to one of the listed offences in the policy
- None of the domestic criminal offences and other circumstances described in the policy that will or may result in a determination of ineligibility or suspension, apply to you, your affiliates and your proposed first-tier subcontractors
- You are not aware of any determination of ineligibility or suspension issued by the department that applies to you
Third party monitoring and verification
In specific situations, you will be required to get and pay for the services of an independent, qualified third party to:
- monitor and verify your progress and compliance as per the terms of an administrative agreement
- provide information on foreign charges and convictions
- validate information that you provided on the level of participation in the commission of a listed offence by any of your affiliates
- provide information to determine whether a reduction in your ineligibility period is warranted through an administrative agreement
- confirm measures have been put in place, after a period of ineligibility has expired if an administrative agreement was not in place, to avoid the types of wrongdoing that led to the ineligibility from happening again
Public Services and Procurement Canada makes all determinations of ineligibility.