Compliance

Compliance means fulfilling the requirements, rules, or behaviour specified by an applicable standard, contract, policy, law, or other authority. The term is used across standards, regulation, contracting, supplier integrity, and defence interoperability, and its meaning in each setting depends on the authority that sets the rule.

In procurement, compliance most often refers to one of three things: a bidder's compliant offer, a contractor's performance against technical specifications, or adherence to contractual policies and certifications. Canadian suppliers meet the term at every stage, from submitting a bid to delivering under a contract and managing subcontractors.

How NATO technical material defines compliance

NATO technical material defines compliance as the statement that an asset fulfils the required behaviour rules of a given standard, and treats conformance as a synonym. The definition appears in a NATO Science and Technology Organization technical report.

NATO describes a standard as a consensus document, approved by a recognized body, that provides rules, guidelines, or characteristics for common and repeated use. NATO's page on standards sets out this definition. Standards and STANAGs are intended to promote interoperability among Allies, as described on NATO's standardization page. Compliance is the test of whether an asset meets those rules.

Bid compliance under the Ineligibility and Suspension Policy

Public Services and Procurement Canada (PSPC) incorporates its Ineligibility and Suspension Policy into applicable solicitations and contracts through mandatory clauses, as explained on the PSPC ineligibility and suspension clauses page. Offerors must comply with the policy and its related directives, provide integrity information, and make the required certifications or declarations.

The PSPC procurement contract clauses state that PSPC may declare an offer non-compliant when requested information is incomplete or inaccurate, or when a certification or declaration is false or misleading. A false or misleading certification discovered after award may support termination for default and an ineligibility determination.

Compliance duties that pass to subcontractors

Compliance obligations do not stop with the prime contractor. PSPC's task-based supply arrangement conditions require contractors to comply with the Ineligibility and Suspension Policy. They also require contractors to impose the applicable requirements on subcontractors and other controlled or affiliated persons.

Supply-chain labour rules work the same way. Government procurement clauses require vendors and subcontractors to comply with applicable laws and regulations, including Canada's prohibition on importing goods produced wholly or partly with forced or compulsory labour. The annual report on fighting forced labour and child labour in supply chains addresses these requirements.

Compliance on the buyer side: directives and trade agreements

Compliance also binds the government. The Treasury Board Directive on the Management of Procurement makes contracting authorities responsible for complying with procurement approval requirements. That includes obtaining Treasury Board approval before entering into or amending arrangements that exceed the applicable approval limits.

Trade agreements add a further layer. Under the CUSMA government procurement chapter, procuring entities must comply with the chapter when conducting covered procurements. Policies under the chapter may also require successful suppliers to maintain effective internal controls, business-ethics measures, and compliance programs to prevent and detect corruption, fraud, and other wrongful acts.

What compliance means for a supplier bidding on Canadian public contracts

A supplier must treat compliance as a condition of being considered at all. Complete every requested field, keep integrity information accurate, and sign certifications only when they are true, because an incomplete or inaccurate response can make an offer non-compliant. Plan for subcontractors from the start, since the same policy requirements must be passed down to them. Where a contract refers to a technical standard, show that the offered product or service meets that standard's rules.