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Public Services and Procurement Canada

8.90. Assignment of contracts

  1. Under the Standard Acquisition Clauses and Conditions (SACC) Manual general conditions, the written permission of Public Works and Government Services Canada (PWGSC) is required before any contract assignment.
  2. When the contract contains security requirements, the contracting officer, with the assistance of the Canadian Industrial Security Directorate, must ensure that the assignee meets all security requirements specified in the contract.
  3. In order to comply with the Integrity Provisions, the proposed assignee needs to provide a signed certification (see Annex 8.13 Letter Templates for Integrity) and, if applicable, a list of names of directors, or, for privately owned corporations, the names of the owners of the corporation. The contracting officer must then proceed to verify compliance to the Integrity Provisions as further detailed in section 5.16 Integrity Compliance.
  4. If the assignee, or its affiliates, is found to be ineligible or suspended under the Ineligibility and Suspension Policy, the contracting officer may refuse the assignment or request a Public Interest Exception to the Assistant Deputy Minister of Acquisitions Branch for the contract of the proposed assignee. See section 4.21 Integrity Provisions for details on procurements where the supplier is ineligible or suspended.
  5. All proposed assignments supported by a contracting officer must be referred to a cost analyst for review, and then, to Legal Services for drafting of the necessary legal documents.
  6. When a contractor assigns a contract, the responsibility for all or part of the performance is transferred to a third party. However, the assignment of a contract must not relieve the original contractor of any obligations under the contract or impose any additional liability on Canada, in relation to the assignee.
  7. In order to protect Canada's interest, the transfer of the liabilities and rights of the contract from the original contractor under the original contract to the assignee, will be done so that the original contractor is ultimately liable for the performance of the contract. An acceptable manner of protecting Canada's interest is to obtain the original contractor's guarantee of performance in the event that the assignee fails to perform.
  8. The contracting officer will forward the assignment agreement to the appropriate PWGSC signing authority, with the reasons for the assignment, the number and value of contracts involved, and the financial condition of the assignee.
  9. In the case of Canadian Commercial Corporation (CCC) contracts, a copy of the approved assignment should be forwarded to the Cost and Profit Assurance Group (CPAG), in order to maintain data on supplier financial status, or to the appropriate vice-president of the CCC.