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Fairness Monitors

Discretionary audits are evaluations conducted at the discretion of a contracting officer or management to assess compliance with contractual terms or statutory requirements. In the context of government contracting, these audits may focus on the validity of certifications, such as Canadian content, and are typically employed when there are concerns regarding the integrity of the bidding process.

When you're working on a high-stakes procurement at Public Services and Procurement Canada (PSPC) or managing a complex real property transaction, chances are you'll encounter an independent fairness monitor. These third-party observers exist to provide assurance—to client departments, suppliers, Parliament, and the public—that your process is fair, open, and transparent. They're not auditors looking to catch mistakes. They're there to validate the integrity of your process.

How It Works

The Federal Fairness Monitoring Program launched in 2005, with PSPC formalizing its Departmental Policy on Fairness Monitoring in 2009. Fairness monitors aren't discretionary anymore for certain activities. The Directive on the Management of Procurement makes them mandatory for departmental activities requiring ministerial or Treasury Board approval—unless you're dealing with non-competitive procurements or amendments. They're also required for competitive procurements rated at complexity level 4 or 5, or those carrying medium-high to high risk.

In practice, the monitor observes your procurement activities as they unfold. They review evaluation criteria, attend bid evaluation meetings, examine scoring procedures, and assess whether your team is following established processes. They don't make procurement decisions or provide technical advice—their role is purely observational, watching for deviations from fairness principles or procedural irregularities that could compromise the integrity of your competitive process. At the end, they produce a report that's typically made public, subject to disclosure limitations. These reports can be incredibly valuable, even when they identify issues, because they give you an opportunity to address concerns before they escalate.

Departments must assess the need for independent third-party monitoring services on complex or high-risk procurements. That assessment involves considering factors like dollar value, political sensitivity, number of potential bidders, and technical complexity. PSPC's Fairness Monitoring Program coordinates these services and maintains a roster of qualified monitors who understand federal procurement inside and out.

Key Considerations

  • Budget for them early: Fairness monitor fees can range significantly depending on the scope and duration of your procurement. Factor this into your project planning from the start, not when you're halfway through your competitive process.

  • Engagement timing matters: You need to bring monitors in before your process begins—ideally during planning stages. They can't provide retroactive assurance on activities they didn't observe. Late engagement undermines the entire point.

  • Their reports are public: Subject to disclosure limits, these reports become part of the public record. That transparency is by design, but it means you need to be prepared for external scrutiny of both the process and any issues the monitor identifies.

  • They're not just for federal departments: While primarily used by PSPC and other federal entities like DND or SSC, any department can—and should—consider using fairness monitors for sensitive or complex activities, even below mandatory thresholds.

Related Terms

Conflict of Interest, Standing Offers, Procurement Review

Sources

If your procurement triggers the mandatory thresholds, engaging a fairness monitor isn't optional—it's part of doing business in the federal space. Plan accordingly.

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