Suspension or Cancellation of Supply Arrangement

When you're managing a Supply Arrangement with the federal government, understand this: Canada can suspend or cancel your qualification, sometimes temporarily, sometimes for good. This isn't theoretical. Under General Conditions 2020 article 09, Public Services and Procurement Canada (PSPC) can pull your access to standing offers based on specific triggers—criminal convictions, contract defaults, false certifications. The stakes are real: lose your SA qualification and you're out of the procurement pipeline.

How It Works

The framework is straightforward but unforgiving. If your organization has been convicted of certain criminal offences within the past three years—in any jurisdiction—Canada can suspend or cancel your Supply Arrangement. As detailed in the ProServices Supply Arrangement, this includes offences that Canada deems similar to those listed in their criteria, even if committed outside Canadian borders. The government must provide written notice. You typically have 30 days to make written representations before a final decision.

Defaults follow a progressive discipline model. Your first default triggers a written warning—nothing more, but it's on record. A second default within the SA period? Three-month suspension. Third default brings six months. By the fourth default, Canada terminates your SA entirely, and you can't requalify for at least one year. This escalation pattern appears across multiple arrangements, including the Task-based Informatics Professional Services Supply Arrangement, which also allows suspension if you publicly disclose information that conflicts with the terms, pricing, or availability stated in your SA.

The government doesn't need a court order to act. If you violate the Code of Conduct for Procurement, submit false certifications, or fail to carry out your obligations under the SA, you've handed PSPC the justification it needs. In practice, the Supply Arrangement authority—the designated PSPC official responsible for administration—makes these calls. When they decide to cancel an entire SA (affecting all suppliers), they must provide at least 30 calendar days' notice.

Key Considerations

• The three-year lookback period is strict. Even if your conviction occurred in another country and wouldn't be prosecuted the same way in Canada, PSPC can still determine it's similar enough to trigger suspension or cancellation.

• Defaults compound quickly. Many suppliers don't realize that seemingly minor infractions—missed deliverables, late responses, non-compliance with reporting requirements—can accumulate toward that four-strike threshold. Track your performance carefully.

• Public statements matter. If you advertise pricing or availability that contradicts what's in your SA, that's grounds for suspension. Your marketing and sales teams need to understand the constraints of your Supply Arrangement commitments.

• Written notice is mandatory, but timelines vary. For individual suspensions, you get that 30-day window to respond. For SA-wide cancellations, you're looking at 30 days minimum before it takes effect. Use that time.

Related Terms

Supply Arrangement, Standing Offer, Code of Conduct for Procurement, Default Under Contract

Sources

• ProServices Supply Arrangement - General Conditions 2020 09

• Task-based Informatics Professional Services Supply Arrangement

• Government of Canada Supply Manual

If you're managing supplier relationships or holding an SA yourself, monitor compliance religiously. The progressive discipline structure means early intervention can prevent escalation—but only if you catch issues before they become defaults.