Federal Contractors Program – Joint Venture Suppliers – IPG-086

Effective Date: June 2017

1. Subject

Application of the Federal Contractors Program (FCP) requirements applicable to joint venture suppliers who are bidding on contracts issued by Canada.

2. Issue

The purpose of this guideline is to explain when and under what circumstances joint venture suppliers bidding on a contract of at least $1M (including applicable taxes) have obligations to implement employment equity under the FCP.

At the bidding stage, by signing the “Agreement to Implement Employment Equity” (AIEE), joint venture members certify commitment to implement employment equity once a contract of at least $1M (including applicable taxes) is awarded regardless of the percentage of the work delivered by each joint venture member.

3. Definitions

A joint venture (or “consortium”) is an association of two or more parties who combine their money, property, knowledge, expertise or other resources in a single joint business enterprise to bid together on a requirement and execute a contract. All members of the joint venture are jointly and severally or solidarily liable for the performance of the contract.

It is important to note that a joint venture is distinct from a business partnership which generally involves an ongoing, long term business relationship, whereas a joint venture is based on a single business transaction for a given period of time.

4. Background

The FCP applies to a joint venture member independently. A joint venture member must therefore determine if it is subject to the FCP:

  • A joint venture member that has 100 or more permanent full-time and/or permanent part-time employees and is provincially regulated is subject to the FCP, regardless of how many employees are performing the work or portion of the work described in the contract.
  • A joint venture member that has less than 100 permanent full-time and/or permanent part-time employees is not subject to the FCP.

5. Application of the Policy

Each joint venture member that is subject to FCP is required to comply with the AIEE. The requirement to implement this agreement comes into force when a contract that has a value of at least $1M (including applicable taxes) is awarded to a joint venture, no matter how much each member may contribute to or benefit from the project. A bid from a joint venture that includes a member that appears on the FCP “Limited Eligibility to Bid” list available from Employment and Social Development Canada (ESDC) – Labour Program will be considered non-responsive. Alternatively, if a joint venture member fails to meet its obligations under the FCP during the execution of the contract, the joint venture may lose the right to receive further contracts of any value. Canada may terminate contract(s) issued to a joint venture for default if any member of a joint venture appears on the “FCP Limited Eligibility to Bid” list during the period of the contract(s).

Chantal Roy
Director General
Federal Programs Directorate
Employment and Social Development Canada – Labour Program

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