Directive on awarding of contracts and real property transactions during after-hours situations

1. Effective date

The directive takes effect on September 7, 2015.

2. Application

This directive applies to all government departments and agencies that have a signed Memorandum of Understanding (MOU) to implement the Ineligibility and Suspension Policy and the Integrity provisions. It applies to all contracts and real property transactions.

3. Context

On July 3, 2015, following a commitment made in Economic Action Plan 2015, the Government of Canada introduced a new government-wide Integrity Regime. The Integrity Regime is governed by the Ineligibility and Suspension Policy and Integrity provisions.

The Ineligibility and Suspension Policy enables the Minister of Public Works and Government Services (PWGS) to issue Directives excluding different classes of contracts from the application of the Regime.

4. Directive statement

4.1 Objective

To provide clear instructions on the process and responsibilities of those issuing contracts/real property transactions during after-hours situations.

4.2 Expected results

The expected result of this directive is that the government does business with ethical suppliers.

5. Definitions

5.1 Afterhours situation

An after-hours situation is one in which, based on specific criteria, there is a requirement to award a contract or real property transaction without first receiving an integrity check from Public Works and Government Services Canada's (PWGSC) Integrity Verification Services. Afterhours is defined as any time between 4:00 p.m. and 8:00 a.m. eastern standard time Monday to Friday, weekends and public holidays.

In those situations, it is possible to issue a contract or real property transaction to respond to an after-hours situation without first receiving an integrity check from PWGSC's Integrity Verification Services if the following criteria are met:

• The situation is unforeseen; and
• Cannot wait until the next morning for an integrity check due to time sensitive requirement(s).

5.2 Public interest exception in after-hours situations

In the event that the potential supplier is on the public list, contracts and real property transactions may be awarded if it is an after-hours situation and if it is in the public interest to enter into the contract or real property transaction. A public interest exception (PIE) may be invoked based on an individual's expertise and knowledge of the realm of procurement or real property transaction in question. (Refer to the Information Bulletin on PIE).

Criteria for a public interest exception:

In an after-hours situation, a PIE can be invoked in the following circumstances:

• No other supplier is capable of performing the contract
  Example: Patent or copyright requirements or technical compatibility factors and technical compatibility factors and technological expertise suggest that only a debarred supplier could undertake the work.
• An emergency
  Example: Need for procuring goods, services, or space accommodation is pressing and any delay would be injurious to the public interests, such as in the event of a natural disaster.
• National security
  Example: Failing to enter into a contract/real property transaction with a specific supplier would endanger the national security of Canada.
• Health and safety
  Example: Not proceeding with a contract/real property transaction could endanger the health and safety of Canadians, such as in instances of a public health emergency or when life-saving pharmaceutical products can only be obtained through one company.
• Economic harm
  Example: Refusing to enter into a contract or real property transaction with a supplier could reasonably be expected to materially injure the financial interests of the Government of Canada or the Government's ability to manage the economy. This could include negative regional marketplace impacts, actual negative impacts on employment or where negative economic effects are not limited to a single economic production sector.

6. Requirements

1. Prior to awarding a contract or real property transaction, check the public list of ineligible suppliers.
2. Obtain from the supplier a signed PWGSC integrity verification form that neither they, nor members of the board of directors nor any of their affiliates, have ever been convicted of a listed  offence under PWGSC's integrity provisions.
3. On the first business day following the issuance of the contract/real property transaction, all information must be submitted to PWGSC's Integrity Framework Team.
4. If the supplier is on the public list of ineligible suppliers, if necessary, invoke the PIE.
5. If a PIE is invoked, on the first business day following the issuance of the contract or real property transaction:
   • submit all information to PWGSC's Integrity Verification Services;
   • submit detailed information about the circumstances of the after-hours/PIE situation;
   • complete all PIE endorsement documentation;
   • explain the reason(s) why the integrity provisions were not practical or possible;
   • the type and total value of the awarded contract(s)/real property transaction(s);
   • the department or agency's delegated contracting/real property authority level at which the after-hours / PIE contract/real property transaction was approved.

7. Monitoring and reporting

All departments and agencies will need to track and report on all cases of after-hours/PIE situations where integrity verification was not done prior to awarding of contract/real property transaction.

8. Inquiries

If you have questions related to this Directive, please contact the Integrity Regime Team:

Toll free:

1-844-705-2084

Email:

pwgsc.o.integrity-tpsgc.o.integrite@pwgsc-tpsgc.gc.ca

From: Public Services and Procurement Canada