ARCHIVED Integrity Provisions - PN-107U1

Introduction

Through this Policy Notification 107U1 – Integrity Provisions (PN-107U1), Public Works and Government Services Canada (PWGSC) is updating the Integrity Provisions surrounding its procurement and real property transactions. The updated provisions include new offences and similar foreign offences, establishment of a Time Period within which convicted suppliers will be ineligible to do business with PWGSC, and extension of the Integrity Provisions to subcontractors.

Effective Date

These changes are effective March 1, 2014. Contracting officers must modify solicitations which are closing on or after this date to reflect these updated provisions.

Summary of Revisions to Current Policy

The Integrity Provisions are being updated to:

• Add new offences;
• Specify that suppliers that have received a conditional or absolute discharge are ineligible to do business with PWGSC;
• Expand the ineligibility conditions to include similar foreign offences;
• Establish a Time Period of 10 years within which convicted suppliers will be ineligible to do business with PWGSC and require that, after that Time Period, bidders certify that preventive measures are in place to avoid re-occurrence of the convictions or reprehensible actions;
• Require that contractors extend the same terms and conditions to subcontractors;
• Specify that these provisions do not apply to governments and entities controlled by a government; and,
• Clarify the circumstances when Canada may invoke the Public Interest Exception.

See the departmental Integrity Framework page for further details on these policy changes.

Background and Context

Over the past several years, Public Works and Government Services Canada (PWGSC) has implemented numerous measures to enhance the integrity of the Department’s procurement and real property processes, including the previous integrity enhancements announced in Policy Notification 107 - Integrity Provisions on November 9, 2012. Continuing this effort, additional steps are being taken to further strengthen the integrity of PWGSC’s procurement and real property transactions and ensure that the Department does business with suppliers that abide by the law.

First, the following new offences are being added to the list of convictions that render companies and individuals ineligible to do business with the Department:

• Extortion
• Bribery of judicial officers
• Bribery of officers
• Secret commissions
• Criminal breach of contract
• Fraudulent manipulation of stock exchange transactions
• Prohibited insider trading
• Forgery and other offences resembling forgery
• Falsification of books and documents

Additionally, the new provisions include a statement that offences in foreign jurisdictions that are similar to the Canadian offences listed in the provisions will now be included as reason to render a bid non-responsive.

A new Time Period of 10 years is also being added, within which suppliers that are convicted of one of the offences listed will be ineligible to do business with PWGSC, regardless of whether or not a pardon or a record suspension has been obtained. Once this Time Period elapses, bidders must certify that measures have been diligently put in place to avoid the reoccurrence of such convictions or reprehensible actions. Note that for some convictions, a pardon or a record suspension will still be required after that 10 year period, as required by law.

In addition to convictions, companies and individuals who have pleaded guilty to criminal offences and received a conditional or absolute discharge will now be limited from doing business with PWGSC for the 10 year period.

Finally, contractors are now required to apply the integrity provisions to subcontractors.

Supply Manual

The Supply Manual is revised to reflect the following changes.

• Director General or Regional Director General approval is required for procurement transactions where potential wrongdoing is found. Assistant Deputy Minister – Acquisitions will be required in some cases.
• The terminology “Code of Conduct and Certification” is replaced by "Integrity Provisions".
• The section on exemptions from the Integrity Provisions is reworded.
• Section 3.15.2. Code of Conduct (Sole Source of Supply) and section 4.45.1. Code of Conduct (Certification) are deleted; the content previously in these two sections is revised and incorporated into the two new sections being 3.51 Integrity Overview, and 4.21 Integrity Provisions.
• Annex 8.13: Letter Templates for Integrity is added to include integrity template letters previously published on GCpedia.

To view the modified sections, please refer to "Affected Supply Manual Section(s)" below.

Standard Acquisition Clauses and Conditions (SACC) Manual

The "Integrity Provisions" section (formerly the "Code of Conduct" section) of all of the Standard Instructions, General Instructions and General Conditions are updated in their entirety to reflect the above policy changes. See section 01 of Standard Instructions 2003, attached as Annex B to this PN, as an example of the revised Integrity Provisions.

To view the affected SACC, please refer to "Affected SACC Manual Section(s)" below.

Standard Procurement Templates

All five standard procurement templates are revised under the part titled “Certifications” to reflect the terminology change from “Code of Conduct and Certifications” to “Integrity Provisions”. Parts 1 or 2 of the bid solicitation templates (Higher Complexity, Medium Complexity and Simple) are also modified to reflect this change.

Contact

Inquiries regarding the application of the Integrity Provisions may be sent to the Policy, Risk, Integrity and Strategic Management Sector (PRISMS) at the following new e-mail address: DGAIntegrite.ABIntegrity@tpsgc-pwgsc.gc.ca.

Questions regarding the SACC Manual or the standard procurement templates may be sent to Procurement Policy and Tools Division by e-mail at: Outilsd'approvisionnement.ProcurementTools@tpsgc-pwgsc.gc.ca.

Supply Manual-related questions may be forwarded to the policy directorate's general inbox at DPPApublications.APPDpublications@tpsgc-pwgsc.gc.ca.