Code of Conduct (Sole Source of Supply)

Code of Conduct (Sole Source of Supply) is the heading of section 3.15.2 in the archived CanadaBuys Supply Manual, under Chapter 3, Procurement strategy. It places the Government of Canada's Code of Conduct for Procurement in the context of a sole source of supply, where a contract is awarded after dealing with only one supplier. The heading appears in the CanadaBuys Supply Manual.

The Code itself is published by Public Services and Procurement Canada (PSPC), the federal government's central purchaser. It sets out expectations and obligations for vendors and subcontractors that respond to solicitations or provide goods and services to Canada. The PSPC supplier conduct page publishes the Code for government suppliers, and a sole-source award does not take a supplier outside it.

Where the heading sits in the Supply Manual

Section 3.15.2 is listed in Chapter 3 of the archived Supply Manual, the chapter on procurement strategy. Placing the Code of Conduct there shows that PSPC guidance addressed the Code specifically for sole-source contracting, rather than only for competitive bids. The Supply Manual is the reference source for this heading, and the Code of Conduct for Procurement is the underlying requirement.

What the Code of Conduct for Procurement requires

The Code applies to vendors and subcontractors. Under it, they must follow applicable laws and regulations. The Code also requires compliance with Canada's prohibition on importing goods produced wholly or partly with forced or compulsory labour, regardless of the country of origin. The Treasury Board Secretariat describes these obligations in its 2024-25 supply chains act compliance report.

The Government of Canada also explains the Code for buyers and suppliers on CanadaBuys.

Which organizations must include the Code

Amendments to the Treasury Board Directive on the Management of Procurement took effect on April 1, 2023. They require contracting authorities in departments listed in Schedules I, I.1 and II of the Financial Administration Act to incorporate the Code into their procurements. The Canada Revenue Agency is the stated exception. Certain commissions designated as departments for that Act are also covered. The Treasury Board Secretariat reports that its own contracts included the Code through the applicable General Conditions, as set out in the same report.

PSPC keeps separate pages for earlier versions of the Code. One covers contracts before August 13, 2021. Another covers contracts dated August 13, 2021 to May 25, 2023, where PWGSC, now PSPC, was the procurement authority.

How sole-source contracting frames the Code

NATO procurement guidance defines sole-source acquisition as a contract entered into, or proposed to be entered into, after soliciting and negotiating with only one source. That guidance treats it as an exception to normal competition. The definition appears in the NATO procurement regulations.

In Canada, CanadaBuys guidance states that sole-source contracts under exception 6(d) of the Government Contracts Regulations must be justified. The justification includes considering whether alternative sources can provide the same or equivalent goods or services. See the Supply Manual Chapter 3 annexes.

What it means for a supplier

If you are offered or seek a sole-source contract with the federal government, expect the Code of Conduct for Procurement to apply to you and your subcontractors. Before you sign, confirm your compliance with applicable laws and with the forced labour import prohibition. Check which version of the Code applies to your contract date and procurement authority, using the PSPC pages above.