Legal text for SACC item
- General Information
- 01 Integrity Provisions - Arrangement
- 02 Procurement Business Number
- 03 Standard Instructions, Clauses and Conditions
- 04 Definition of Supplier
- 05 Submission of Arrangements
- 06 Late Arrangements
- 07 Delayed Arrangements
- 08 Transmission by Facsimile
- 09 Customs Clearance
- 10 Legal Capacity
- 11 Rights of Canada
- 12 Rejection of Arrangement
- 13 Communications - Solicitation Period
- 14 Arrangement Costs
- 15 Conduct of Evaluation
- 16 Joint Venture
- 17 Conflict of Interest - Unfair Advantage
- 18 Entire Requirement
- 19 Further Information
A supply arrangement is a method of supply used by Public Works and Government Services Canada (PWGSC) to procure goods and services. A supply arrangement is an arrangement between Canada and pre-qualified suppliers that allows identified users to solicit bids from a pool of pre-qualified suppliers for specific requirements within the scope of a supply arrangement. A supply arrangement is not a contract for the provision of the goods and services described in it and neither party is legally bound as a result of signing a supply arrangement alone. The intent of a supply arrangement is to establish a framework to permit expeditious processing of individual bid solicitations which result in legally binding contracts for the goods and services described in those bid solicitations.
Except for those procurements where public advertising is not required or used, Requests for Supply Arrangements (RFSA) are posted on the Government Electronic Tendering Service (GETS) and suppliers who are interested in responding to individual bid solicitations issued under a supply arrangement framework are invited to submit an arrangement to become pre-qualified suppliers. The list of pre-qualified suppliers will be used as a source list for procurement within the scope of the supply arrangement and only suppliers who are pre-qualified at the time individual bid solicitations are issued will be eligible to bid. Supply arrangements include a set of predetermined conditions that will apply to subsequent bid solicitations and contracts. Supply arrangements may include ceiling prices which may be lowered based on an actual requirement or scope of work described in a bid solicitation.
01 (2014-09-25) Integrity Provisions - Arrangement
- Suppliers must comply with the Code of Conduct for Procurement. In addition, suppliers must respond to Requests for Supply Arrangements (RFSA) in an honest, fair and comprehensive manner, accurately reflect their capacity to satisfy the requirements stipulated in the RFSA, Supply Arrangement (SA) and any resulting contracts, and submit arrangements as well as enter into contracts only if they will fulfill all obligations of the Contract.
- By submitting an arrangement, suppliers confirm that they understand that, to ensure fairness, openness and transparency in the procurement process, the commission of certain acts or offences will render them ineligible to be issued a Supply Arrangement or awarded a contract. Canada will declare non-responsive any arrangement in respect of which the information requested is missing or inaccurate, or in respect of which the information contained in the certifications is found by Canada to be untrue in any respect, at the time of issuance of the Supply Arrangement (SA). If it is determined, after issuance of the SA, that the Supplier made a false declaration, Canada will, following a notice period, have the right to cancel the SA and to terminate for default any resulting contracts. The Supplier will be required to diligently maintain up-to-date the information requested. The Supplier and any of the Supplier's Affiliates, will also be required to remain free and clear of any acts or convictions and any conditional or absolute discharges specified in these Integrity Provisions during the period of any SA arising from this RFSA and any resulting contracts.
For the purpose of these Integrity Provisions, everyone, including but not limited to organizations, bodies corporate, societies, companies, firms, partnerships, associations of persons, parent companies and subsidiaries, whether partly or wholly-owned, as well as individuals and directors, are Supplier's Affiliates if:
- directly or indirectly either one controls or has the power to control the other, or
- a third party has the power to control both.
- Suppliers who are incorporated, including those submitting an arrangement as a joint venture, must provide a complete list of names of all individuals who are currently directors of the Supplier. Suppliers submitting an arrangement as sole proprietorship, including those submitting an arrangement as a joint venture, must provide the name of the owner. Suppliers submitting an arrangement as societies, firms, or partnerships do not need to provide lists of names.
If the required names have not been received by the time the evaluation of arrangements is completed, Canada will inform the Supplier of a time frame within which to provide the information. Failure to provide the names within the time frame specified will render the arrangement non-responsive. Providing the required names is a mandatory requirement for a Supply Arrangement to be issued.
Canada may, at any time, request that the Supplier provide properly completed and signed consent forms (Consent to a Criminal Record Verification form - PWGSC-TPSGC 229) for any or all individuals mentioned above within a specified time frame. Failure to provide such consent forms and associated information within the time frame provided, or failure to cooperate to the verification process, will result in the arrangement being declared non-responsive.
- The Supplier must diligently inform Canada in writing of any changes affecting the list of names of directors during this procurement process as well as during the period of any Supply Arrangement arising from this RFSA and any resulting contracts. The Supplier must also, when requested, provide Canada with properly completed and signed consent forms.
- By submitting an arrangement, the Supplier certifies that it is aware, and that its Affiliates are aware that Canada may request additional information, certifications, consent forms and other evidentiary elements proving identity or eligibility. Canada may also verify the information provided by the Supplier, including the information relating to the acts or convictions and any conditional or absolute discharges specified in the Integrity Provisions, through independent research, use of any government resources or by contacting third parties.
- By submitting an arrangement, the Supplier certifies that neither the Supplier nor any of the Supplier's Affiliates have directly or indirectly, paid or agreed to pay, and will not, directly or indirectly, pay a contingency fee to any individual for the solicitation, negotiation or obtaining of the Supply Arrangement and any resulting contracts if the payment of the fee would require the individual to file a return under section 5 of the Lobbying Act.
- Time Period
The Time Period is 10 years and is measured from the date of the conviction or from the date of the conditional or absolute discharge.
In addition, for a conviction under paragraphs a. or b. of subsection 9, following the 10-year period, a pardon or a record suspension must have been obtained, or capacities must have been restored by the Governor in Council. The Supplier must therefore provide with its arrangement or promptly afterwards a copy of confirming documentation from an official source for its certification to be found true by Canada for the purpose of these Integrity Provisions. If the documentation has not been received by the time the evaluation of arrangements is completed, Canada will inform the Supplier of a time frame within which to provide the information. Failure to comply within the time frame specified will render the arrangement non-responsive.
- By submitting an arrangement, the Supplier certifies that neither the Supplier nor any of the Supplier’s Affiliates have been convicted of an offence or received a conditional or an absolute discharge under any of the following provisions, unless the time period, as defined in the Time Period subsection, has elapsed:
- paragraph 80(1)(d) (False entry, certificate or return), subsection 80(2) (Fraud against Her Majesty) or section 154.01 (Fraud against Her Majesty) of the Financial Administration Act, or
- section 121 (Frauds on the government and Contractor subscribing to election fund), section 124 (Selling or Purchasing Office), section 380 (Fraud) for fraud committed against Her Majesty or section 418 (Selling defective stores to Her Majesty) of the Criminal Code, or
- section 119 (Bribery of judicial officers, etc), section 120 (Bribery of officers), section 346 (Extortion), sections 366 to 368 (Forgery and other offences resembling forgery), section 382 (Fraudulent manipulation of stock exchange transactions), section 382.1 (Prohibited insider trading), section 397 (Falsification of books and documents), section 422 (Criminal breach of contract), section 426 (Secret commissions), section 462.31 (Laundering proceeds of crime) or sections 467.11 to 467.13 (Participation in activities of criminal organization) of the Criminal Code, or
- section 45 (Conspiracies, agreements or arrangements between competitors), section 46 (Foreign directives), section 47 (Bid rigging), section 49 (Agreements or arrangements of federal financial institutions), section 52 (False or misleading representation), section 53 (Deceptive notice of winning a prize) of the Competition Act, or
- section 239 (False or deceptive statements) of the Income Tax Act, or
- section 327 (False or deceptive statements) of the Excise Tax Act, or
- section 3 (Bribing a foreign public official), section 4 (Accounting), or section 5 (Offence committed outside Canada) of the Corruption of Foreign Public Officials Act, or
- section 5 (Trafficking in substance), section 6 (Importing and exporting), or section 7 (Production of substance) of the Controlled Drugs and Substance Act.
- Foreign Offences
The Supplier also certifies that, within a period, as defined in the Time Period subsection, neither the Supplier nor any of the Supplier’s Affiliates have been convicted of or have received a conditional or an absolute discharge, under any foreign offence that Canada deems to be of similar constitutive elements to the offences listed in these Integrity Provisions. Canada will also consider foreign measures declared by Canada to be similar in nature to the Canadian pardon, record suspension, or restoration of capacities by the Governor in Council.
The Supplier must ensure that subcontracts include Integrity Provisions no less favourable to Canada than those imposed in the resulting contract.
- Preventive Measures associated with the Time Period
In cases where the period (as defined in the Time Period subsection), for a conviction, or a conditional or an absolute discharge of the Supplier or any of the Supplier’s Affiliates has elapsed, then the Supplier must also certify for itself and for its Affiliates that measures have been diligently put in place in order to avoid the reoccurrence of such convictions or reprehensible actions.
- Public Interest Exception
Suppliers understand that Canada may issue a Supply Arrangement with a supplier where the Supplier or the Supplier’s Affiliates have been convicted of or have received a conditional or an absolute discharge for an offence specified in these Integrity Provisions, when required to do so by law or legal proceedings, or when Canada in its sole discretion considers it necessary to the public interest for reasons which include, but are not limited to:
- no one else is capable of performing the contract;
- national security;
- health and safety;
- economic harm;
For governments, as well as entities controlled by a government, including Crown corporations, the present Integrity Provisions are reduced to complying with article 750 of the Criminal Code, the Government Contracts Regulations and the Code of Conduct for Procurement.
02 (2012-03-02) Procurement Business Number
Suppliers are required to have a Procurement Business Number (PBN) before issuance of a supply arrangement. Suppliers may register for a PBN on line at Supplier Registration Information. For non-Internet registration, suppliers may contact the InfoLine at 1-800-811-1148 to obtain the telephone number of the nearest Supplier Registration Agent.
03 (2008-05-12) Standard Instructions, Clauses and Conditions
Pursuant to the Department of Public Works and Government Services Act (S.C. 1996, c. 16), the instructions, clauses and conditions identified in the RFSA and resulting supply arrangement by number, date and title are incorporated by reference into and form part of the RFSA and resulting supply arrangement as though expressly set out in the RFSA and resulting supply arrangement.
04 (2008-12-12) Definition of Supplier
"Supplier" means the person or entity (or, in the case of a joint venture, the persons or entities) submitting an arrangement. It does not include the parent, subsidiaries or other affiliates of the Supplier, or its subcontractors.
05 (2014-09-25) Submission of Arrangements
- Canada requires that each arrangement, at closing date and time or upon request from the Supply Arrangement Authority, be signed by the Supplier or by an authorized representative of the Supplier. If an arrangement is submitted by a joint venture, it must be in accordance with section 16.
- It is the Supplier's responsibility to:
- obtain clarification of the requirements contained in the RFSA, if necessary, before submitting an arrangement;
- prepare the arrangement in accordance with the instructions contained in the RFSA;
- submit by closing date and time a complete arrangement;
- send the arrangement only to PWGSC Bid Receiving Unit specified on page 1 of the RFSA or to the address specified in the RFSA. The facsimile number and related instructions for arrangements transmitted by facsimile are provided in section 08;
- ensure that the Supplier's name, return address, RFSA number, and RFSA closing date and time are clearly visible on the envelope or the parcel(s) containing the arrangement; and,
- provide a comprehensible and sufficiently detailed arrangement, including all requested pricing details, that will permit a complete evaluation in accordance with the criteria set out in the RFSA.
- Canada will make available Notices of Proposed Procurement (NPP), RFSA's and related documents for download through the Government Electronic Tendering Service (GETS). Canada is not responsible and will not assume any liabilities whatsoever for the information found on websites of third parties. In the event an NPP, RFSA or related documentation would be amended, Canada will not be sending notifications. Canada will post all amendments, including significant enquiries received and their replies, using GETS. It is the sole responsibility of the Supplier to regularly consult GETS for the most up-to-date information. Canada will not be liable for any oversight on the Supplier's part nor for notification services offered by a third party.
- Arrangements will remain open for acceptance for a period of not less than 60 days from the closing date of the RFSA, unless specified otherwise in the RFSA. Canada reserves the right to seek an extension of the arrangement validity period from all responsive suppliers in writing, within a minimum of 3 days before the end of the arrangement validity period. If the extension is accepted by all responsive suppliers, Canada will continue with the evaluation of the arrangements. If the extension is not accepted by all responsive suppliers, Canada will, at its sole discretion, either continue with the evaluation of the arrangements of those who have accepted the extension or cancel the RFSA.
- Arrangements and supporting information may be submitted in either English or French.
- Arrangements received on or before the stipulated RFSA closing date and time will become the property of Canada and will not be returned. All arrangements will be treated as confidential, subject to the provisions of the Access to Information Act (R.S., 1985, c. A-1), and the Privacy Act (R.S., 1985, c. P-21).
- Unless specified otherwise in the RFSA, Canada will evaluate only the documentation provided with the arrangement. Canada will not evaluate information such as references to Web site addresses where additional information can be found, or technical manuals or brochures not submitted with the arrangement.
- An arrangement cannot be assigned or transferred in whole or in part.
06 (2008-05-12) Late Arrangements
PWGSC will return arrangements delivered after the stipulated RFSA closing date and time, unless they qualify as a delayed arrangement as described below.
07 (2012-03-02) Delayed Arrangements
- An arrangement delivered to the specified bid
receiving unit after the closing date and time but before the
supply arrangement issuance date may be considered, provided the
supplier can prove the delay is due solely to a delay in delivery
that can be attributed to the Canada Post Corporation (CPC) (or
national equivalent of a foreign country). Purolator Inc. is not
considered to be part of CPC for the purposes of delayed
arrangements. The only pieces of evidence relating to a delay in
the CPC system that are acceptable to PWGSC are:
- CPC cancellation date stamp; or
- CPC Priority Courier bill of lading; or
- CPC Xpresspost label
that clearly indicates that the arrangement was mailed before the RFSA closing date.
- Misrouting, traffic volume, weather disturbances, labour disputes or any other causes for the late delivery of arrangements are not acceptable reasons for the arrangement to be accepted by PWGSC.
- Postage meter imprints, whether imprinted by the Supplier, the CPC or the postal authority outside Canada, are not acceptable as proof of timely mailing.
08 (2012-03-02) Transmission by Facsimile
- Unless specified otherwise in the RFSA, arrangements may be submitted by facsimile. The only acceptable facsimile number for responses to RFSAs issued by PWGSC headquarters is 819-997-9776. The facsimile number for responses to RFSAs issued by PWGSC regional offices is identified in the RFSA.
- For arrangements transmitted by facsimile, Canada
will not be responsible for any failure attributable to the
transmission or receipt of the faxed arrangement including, but not
limited to, the following:
- receipt of garbled or incomplete arrangement;
- availability or condition of the receiving facsimile equipment;
- incompatibility between the sending and receiving equipment;
- delay in transmission or receipt of the arrangement;
- failure of the Supplier to properly identify the arrangement;
- illegibility of the arrangement; or
- security of arrangement data.
- An arrangement transmitted by facsimile will constitute the formal arrangement of the Supplier and must be submitted in accordance with section 05.
09 (2010-10-07) Customs Clearance
It is the responsibility of the Supplier to allow sufficient time to obtain customs clearance, where required, before the RFSA closing date and time. Delays related to the obtaining of customs clearance cannot be construed as "undue delay in the mail" and will not be accepted as a delayed arrangement under section 07.
10 (2008-05-12) Legal Capacity
The Supplier must have the legal capacity to contract. If the Supplier is a sole proprietorship, a partnership or a corporate body, the Supplier must provide, if requested by the Supply Arrangement Authority, a statement and any requested supporting documentation indicating the laws under which it is registered or incorporated together with the registered or corporate name and place of business. This also applies to suppliers submitting an arrangement as a joint venture.
11 (2008-12-12) Rights of Canada
Canada reserves the right to:
- reject any or all arrangements received in response to the RFSA;
- cancel the RFSA at any time;
- reissue the RFSA;
- if no responsive arrangements are received and the requirement is not substantially modified, reissue the RFSA by inviting only the suppliers who submitted an arrangement to resubmit arrangements within a period designated by Canada; and
- issue RFSAs and supply arrangements to suppliers who qualify throughout the entire period of the supply arrangement.
12 (2014-09-25) Rejection of Arrangement
- Canada may reject an arrangement where any of the
following circumstances is present:
- the Supplier is subject to a Vendor Performance Corrective Measure, under the Vendor Performance Corrective Measure Policy, which renders the Supplier ineligible to submit an arrangement for the requirement;
- an employee, or subcontractor included as part of the arrangement, is subject to a Vendor Performance Corrective Measure, under the Vendor Performance Corrective Measure Policy, which would render that employee or subcontractor ineligible to submit an arrangement for the requirement, or the portion of the requirement the employee or subcontractor is to perform;
- the Supplier is bankrupt or where, for whatever reason, its activities are rendered inoperable for an extended period;
- evidence, satisfactory to Canada, of fraud, bribery, fraudulent misrepresentation or failure to comply with any law protecting individuals against any manner of discrimination, has been received with respect to the Supplier, any of its employees or any subcontractor included as part of the arrangement;
- evidence satisfactory to Canada that based on past conduct or behavior, the Supplier, a subcontractor or a person who is to perform the Work is unsuitable or has conducted himself/herself improperly;
- with respect to current or previous transactions with
the Government of Canada:
- Canada has exercised its contractual remedies of suspension or termination for default with respect to a contract with the Supplier, any of its employees or any subcontractor included as part of the arrangement;
- Canada determines that the Supplier's performance on other contracts, including the efficiency and workmanship as well as the extent to which the Supplier performed the Work in accordance with contractual clauses and conditions, is sufficiently poor to jeopardize the successful completion of any requirement to be bid on.
- Where Canada intends to reject an arrangement pursuant to a provision of subsection 1. (f), the Supply Arrangement Authority will so inform the Supplier and provide the Supplier 10 days within which to make representations, before making a final decision on the arrangement rejection.
- Canada reserves the right to apply additional scrutiny, in particular, when multiple arrangements are received in response to a request for supply arrangements from a single supplier or a joint venture. Canada reserves the right to:
- reject any or all of the arrangements submitted by a single supplier or joint venture if their inclusion in the evaluation has the effect of prejudicing the integrity and fairness of the process, or;
- reject any or all of the arrangements submitted by a single supplier or joint venture if their inclusion in the procurement process would distort the solicitation evaluation, and would cause a result that would not reasonably have been expected under prevailing market conditions and/or would not provide good value to Canada.
13 (2014-03-01) Communications - Solicitation Period
To ensure the integrity of the competitive RFSA process, enquiries and other communications regarding the RFSA must be directed only to the Supply Arrangement Authority identified in the RFSA. Failure to comply with this requirement may result in the arrangement being declared non-responsive.
To ensure consistency and quality of information provided to suppliers, significant enquiries received and their replies will be posted on the Government Electronic Tendering Service (GETS). For further information, refer to subsection 3 of the Submission of Bids section.
14 (2008-05-12) Arrangement Costs
No payment will be made for costs incurred in the preparation and submission of an arrangement in response to the RFSA. Costs associated with preparing and submitting an arrangement as well as any costs incurred by the Supplier associated with the evaluation of the arrangement, are the sole responsibility of the Supplier.
15 (2008-12-12) Conduct of Evaluation
- In conducting its evaluation of the arrangements,
Canada may, but will have no obligation to, do the following:
- seek clarification or verification from suppliers regarding any or all information provided by them with respect to the RFSA;
- contact any or all references supplied by suppliers to verify and validate any information submitted by them;
- request, before issuance of any supply arrangement, specific information with respect to suppliers' legal status;
- conduct a survey of suppliers' facilities and/or examine their technical, managerial, and financial capabilities to determine if they are adequate to meet the requirements of the RFSA;
- verify any information provided by suppliers through independent research, use of any government resources or by contacting third parties;
- interview, at the sole costs of suppliers, any supplier and/or any or all of the resources proposed by suppliers to fulfill the requirement of the RFSA.
- Suppliers will have the number of days specified in the request by the Supply Arrangement Authority to comply with any request related to any of the above items. Failure to comply with the request may result in the arrangement being declared non-responsive.
16 (2012-03-02) Joint Venture
- A joint venture is an association of two or more
parties who combine their money, property, knowledge, expertise or
other resources in a single joint business enterprise, sometimes
referred as a consortium, to submit an arrangement together on a
requirement. Suppliers who submit an arrangement as a joint venture
must indicate clearly that it is a joint venture and provide the
- the name of each member of the joint venture;
- the Procurement Business Number of each member of the joint venture;
- the name of the representative of the joint venture, i.e. the member chosen by the other members to act on their behalf, if applicable;
- the name of the joint venture, if applicable.
- If the information is not clearly provided in the arrangement, the Supplier must provide the information on request from the Supply Arrangement Authority.
- The arrangement must be signed by all the members of the joint venture unless one member has been appointed to act on behalf of all members of the joint venture. The Supply Arrangement Authority may, at any time, require each member of the joint venture to confirm that the representative has been appointed with full authority to act as its representative for the purposes of the RFSA and any resulting supply arrangement.
17 (2012-03-02) Conflict of Interest - Unfair Advantage
- In order to protect the integrity of the procurement
process, suppliers are advised that Canada may reject an
arrangement in the following circumstances:
- if the Supplier, any of its subcontractors, any of their respective employees or former employees was involved in any manner in the preparation of the RFSA or in any situation of conflict of interest or appearance of conflict of interest;
- if the Supplier, any of its subcontractors, any of their respective employees or former employees had access to information related to the RFSA that was not available to other suppliers and that would, in Canada's opinion, give or appear to give the Supplier an unfair advantage.
- The experience acquired by a supplier who is providing or has provided the goods and services described in the RFSA (or similar goods or services) will not, in itself, be considered by Canada as conferring an unfair advantage or creating a conflict of interest. This supplier remains however subject to the criteria established above.
- Where Canada intends to reject an arrangement under this section, the Supply Arrangement Authority will inform the Supplier and provide the Supplier an opportunity to make representations before making a final decision. Suppliers who are in doubt about a particular situation should contact the Supply Arrangement Authority before the RFSA closing date. By submitting an arrangement, the Supplier represents that it does not consider itself to be in conflict of interest nor to have an unfair advantage. The Supplier acknowledges that it is within Canada's sole discretion to determine whether a conflict of interest, unfair advantage or an appearance of conflict of interest or unfair advantage exists.
18 (2008-12-12) Entire Requirement
The RFSA contains all the requirements relating to the request for arrangements. Any other information or documentation provided to or obtained by a supplier from any source are not relevant. Suppliers should not assume that practices used under previous contracts will continue, unless they are described in the RFSA. Suppliers should also not assume that their existing capabilities meet the requirements of the RFSA simply because they have met previous requirements.
19 (2008-12-12) Further Information
- For further information, suppliers may contact the Supply Arrangement Authority identified in the RFSA.
- For RFSAs issued out of PWGSC headquarters, enquiries concerning receipt of arrangements may be addressed to the Bid Receiving Unit, Procurement Operational Support Division, telephone 819-956-3370. For RFSAs issued out of PWGSC regional offices, enquiries concerning receipt of offers may be addressed to the Supply Arrangement Authority identified in the RFSA.