Ineligibility and Suspension Policy Clauses

Ineligibility and Suspension Policy clauses are the standard provisions that bring Canada's Ineligibility and Suspension Policy into federal procurement documents. Departments and agencies that apply the policy must incorporate the clauses into each applicable procurement instrument, which means solicitations, resulting contracts and real-property agreements. The requirement is set out on the Public Services and Procurement Canada (PSPC) page on the clauses.

The policy itself sets out when and how a supplier can be declared ineligible to enter into, or suspended from entering into, contracts with the Government of Canada. It is part of the supplier integrity regime run by PSPC's Office of Supplier Integrity and Compliance. The clauses are the contractual link that makes the policy binding on bidders and contractors. They are Canadian federal clauses, not a NATO or international standard.

What the clauses incorporate

The standard procurement clause makes the policy and its related directives, as they stand on the date the solicitation is issued, a binding part of the solicitation. The supplier must comply with them. The wording is published on the procurement contracts clause page.

The Ineligibility and Suspension Policy addresses supplier integrity and the consequences of specified offences, convictions, charges, misconduct and other material events. PSPC is responsible for developing, administering and maintaining the policy and for declaring suppliers ineligible or suspended under it, as the Treasury Board Secretariat policy instrument records.

Where the clauses apply

According to the CanadaBuys buyer's guide, the policy applies to all supply, construction, real-property and service contracts, subject to the exemptions the policy lists. The clauses appear in solicitation documents and in the resulting contracts. A separate version covers real-property transactions.

Some transaction types, including certain subscriptions and memberships, can be exempt from the requirement to apply the policy and the integrity clauses. PSPC addresses these in its directive on purchases of subscriptions and memberships.

Obligations at the bid stage

Bidders can be required to provide a list of names containing the information needed for integrity verification. This covers the offeror, its relevant affiliates and its proposed first-tier subcontractors. If a bidder cannot certify that no relevant circumstances apply, it must submit an integrity declaration form describing the material event.

• Failure to provide the required names can make a bid or offer non-responsive or disqualify the supplier from award.
• Incomplete or inaccurate information can make an offer non-compliant.
• A certification found to be false or misleading can also make an offer non-compliant.

These consequences are described in the policy text and the procurement clause.

Reporting duties during performance

The obligations continue after award. During the performance of a contract or real-property agreement, the supplier must report specified charges, convictions or other relevant circumstances to the Registrar within 10 working days. The reporting duty is set out in the policy, so a supplier that wins a contract still needs a process for tracking and escalating these events.

What it means for a supplier bidding on Canadian public contracts

Read the integrity clauses in every federal solicitation, because the policy version in effect on the solicitation date is the one that binds you. Before you submit, gather accurate names for your organization, affiliates and first-tier subcontractors, and decide early whether an integrity declaration form is needed. After award, assign someone to monitor and report relevant events within the 10 working day window. Errors in the bid package can cost you the award, so treat the integrity forms as a compliance step on par with pricing and technical requirements.