Security Clearance Requirements (Personnel and Facility)

If your company wants to bid on contracts involving classified information or sensitive government sites, you'll need to navigate the Contract Security Program administered by Public Services and Procurement Canada (PSPC). This isn't just a formality. The Contract Security Manual makes it clear: you must obtain the required security clearance for all personnel before contract award, and depending on the classification level, this process can stretch from 6 to 18 months.

How It Works

Not all security clearances are created equal. The government requires three types of organization clearances depending on what you're accessing. For basic work, you might only need a Provisional Security Clearance or Designated Organization Screening (DOS). But if you're handling Confidential, Secret, Top Secret, NATO Confidential, NATO Secret, or COSMIC Top Secret information, you'll need a Facility Security Clearance (FSC).

Getting an FSC requires more than just paperwork. Before the government grants one, your Company Security Officer (CSO) and Key Security Officers (KSOs) must undergo security screening themselves. Your CSO then becomes responsible for ensuring compliance throughout the contract lifecycle—a role that carries real weight. The government can suspend your clearance with just 30 days' notice if you fail to meet security requirements. Individual clearances? They can revoke those anytime.

The Technology Supply Chain Guidelines (TSCG-01) emphasize that obtaining clearances is entirely your responsibility as the contractor. After award, you need to maintain a sufficient complement of cleared personnel to complete the work. In practice, this means planning ahead. If a cleared employee leaves mid-contract, you can't just plug in a replacement—that person needs their own clearance first.

Key Considerations

• Timeline is everything. Don't wait until you've won a contract to start the clearance process. Many opportunities require cleared personnel as a mandatory criterion, meaning you're automatically disqualified without them. Factor those 6-18 months into your business development planning.

• Remote access comes with strings attached. The Contract Security Manual permits remote access to Confidential and Secret systems, but you'll need keystroke logging and must retain software upload evidence for forensic purposes. Non-cleared staff can assist with security-sensitive systems but cannot control them or load software themselves.

• The Government of Canada Security Agreement isn't negotiable. Chapter 3.5 of the Contract Security Manual outlines this formal agreement between your organization and PSPC. You're committing to safeguard classified information and assets according to specific standards, and non-compliance has real consequences.

• Use the Security Requirements Checklist (SRCL). TBS/SCT Form 350-103 helps contracting authorities and bidders identify what clearances are actually needed for a given contract. You'll encounter this on solicitations from DND, Shared Services Canada, and other departments handling sensitive work.

Related Terms

Mandatory Criteria vs. Point-Rated Criteria, Standing Offers and Supply Arrangements

Sources

• Contract Security Manual - Chapters 3 and 4

• Technology Supply Chain Guidelines (TSCG-01)

• Information Toolkit for Suppliers: How to Obtain a Security Clearance

Bottom line: treat security clearances as a business investment, not an administrative hurdle. Companies that maintain cleared personnel and FSCs position themselves to compete for higher-value, restricted competitions that many competitors simply can't access.