Security Clearance

Security clearance is the formal authorization that allows organizations and their personnel to access protected or classified government information, assets, or sensitive work sites when bidding on or performing federal contracts. Planning to pursue contracts involving national security, defence, or sensitive government operations? You'll need the appropriate clearance level before your bid can even be considered responsive.

How It Works

According to the Supply Manual Chapter 3.2, contracting authorities must identify security requirements right in the solicitation documents when access to protected or classified materials is necessary. There are two main types of organizational clearances you'll encounter: Designated Organization Screening (DOS) for Protected information at the Reliability Status level (Protected A/B), and Facility Security Clearance (FSC) for Classified information at Confidential, Secret, Top Secret, or NATO levels.

Here's the thing: obtaining these clearances takes time. We're talking up to 12 months of processing, so you need to plan well ahead of any bid deadline. Public Services and Procurement Canada (PSPC) administers the Contract Security Program (CSP), which handles all organization screening requests. The Contract Security Manual Chapter 3 details the specific requirements for each clearance level, including physical security standards your facility must meet for FSC.

In practice, there's also something called provisional security clearance—a temporary authorization valid only during the bid solicitation stage. It allows members of your bid preparation team to access protected or classified information before contract award, but you still need the full clearance before contract performance begins. The catch is this: eligibility criteria changed significantly on May 2, 2022. Organizations can now only obtain or maintain clearances if they're actively participating in a federal procurement process. DOS clearances expire after 2 years without active procurement involvement. FSC expires after just 1 year.

Key Considerations

• Start early. That 12-month processing timeline can derail your bid if you wait until a solicitation drops. Many suppliers miss opportunities simply because they didn't plan ahead.

• Your clearance must be in place before bid closing for your proposal to be considered responsive—no exceptions. This isn't something evaluators can waive or give you extra time to obtain.

• The new 2022 eligibility rules mean you can't just maintain a clearance "just in case." You need an active procurement file. Between contracts? Your clearance may expire and require renewal when the next opportunity arises.

• Physical security requirements for FSC can be substantial—think controlled access areas, security containers, intrusion detection systems. Budget accordingly if you're pursuing classified contracts.

Related Terms

Contract Security Requirements, Solicitation, Bid Responsiveness, Personnel Security Screening

Sources

• Supply Manual - Chapter 3.2 Security and Intelligence

• Organization Security Clearances (canada.ca)

• Contract Security Manual - Chapter 3: Organization Screening

Bottom line: if you're eyeing contracts with DND, Shared Services Canada, or other security-sensitive departments, get your clearance application in motion now. Waiting until you see an interesting solicitation is already too late.