Integrity Provisions and Ineligibility

In Canadian federal procurement, integrity provisions are contractual requirements under which a supplier, its affiliates and certain first-tier subcontractors must disclose specified criminal charges, convictions and related circumstances. Ineligibility is the possible result. Canada may determine that the supplier is ineligible to enter into, or suspended from entering into, a contract with Canada.

The provisions are part of Canada's Integrity Regime, which is governed by the Ineligibility and Suspension Policy and related integrity provisions. The policy is incorporated by reference into applicable bid solicitations, so it forms part of the binding requirements of the solicitation. You can see this in a published request for proposals on CanadaBuys.

How the Ineligibility and Suspension Policy works

The Ineligibility and Suspension Policy is the rule set behind the integrity provisions. Under the standard instructions for competitive goods and services, charges or convictions involving a supplier, its affiliates or its first-tier subcontractors may result in a determination that the supplier is ineligible or suspended. The standard instructions published by Immigration, Refugees and Citizenship Canada set out these requirements.

The list of ineligible and suspended suppliers is held in the Integrity Database maintained by Public Works and Government Services Canada (PWGSC), now Public Services and Procurement Canada. The provisions support fairness, openness and transparency in federal procurement. They can apply to the bidding supplier and also to its affiliates and proposed first-tier subcontractors.

Where the provisions appear in solicitations and contracts

In competitive goods-and-services solicitations, the provisions appear under integrity headings written for the bid stage. A bidder must generally provide the information and certifications the solicitation requires. This can include a complete list of relevant foreign criminal charges and convictions involving the bidder, its affiliates and its proposed first-tier subcontractors.

The obligations continue after award. The supplier and its affiliates must remain free of the specified acts or convictions during the contract period. Missing or inaccurate required information can make a bid non-responsive.

Other federal departments use the same clauses. Immigration, Refugees and Citizenship Canada, for example, incorporates the policy and related directives into its terms for non-competitive goods and services requirements. The Canada Revenue Agency publishes its own supplier integrity directive.

Transactions excluded from the integrity provisions

Not every transaction is covered. Under the applicable PSPC directive, contracts, subcontracts and real-property transactions below $10,000 are excluded from the Integrity Regime, as set out in the directive on awarding contracts and real property transactions below $10,000.

Other classes of transactions can also be excluded by directive. These include specified subscriptions and memberships, covered in the directive on purchases, subscriptions and memberships. The policy and integrity provisions are also not required to apply to certain federal grants and contributions, according to the directive on the application of the regime.

What it means for a supplier bidding on Canadian public contracts

Treat the integrity requirements as a condition of bidding, not a formality. A supplier should:

• review the Ineligibility and Suspension Policy and the directives in force when the solicitation is issued;
• provide all required integrity certifications and information;
• disclose relevant charges and convictions involving itself, its affiliates and its proposed first-tier subcontractors;
• make sure the submitted information is complete and accurate; and
• remain compliant throughout any resulting contract.

Failure to provide the required information within the specified period can render a bid or offer non-responsive, or otherwise disqualify the supplier from contract award. Bid teams should gather affiliate and subcontractor information early, because those parties are covered by the same disclosure requirements as the bidder.