Government of Canada Announces Improvements to Integrity of Federal Procurement

News Release

For Immediate Release

Integrity Regime Introduced Across Government

July 3, 2015 — Gatineau, Quebec — Government of Canada

The Government of Canada is taking action on its commitment in the 2015 Economic Action Plan to ensure that it does business with ethical suppliers in Canada and abroad. Today, Public Works and Government Services Canada (PWGSC) announced the implementation of the new government-wide Integrity Regime for procurement and real property transactions.

The new regime is efficient, robust and holds companies accountable for their actions. It will also encourage companies to cooperate with legal authorities when problems arise and to quickly take corrective actions. This regime will apply to all government departments and agencies. The new Integrity Regime better aligns with international best practices and includes new provisions to ensure fairness and due process. It will also allow companies to undertake remedial action to address misconduct in order to conduct business with the Government of Canada.

The Integrity Regime also provides for new tools such as independent expert third-party assessments, and administrative agreements that will specify required corrective actions and ensure their effectiveness.

Quick Facts

The new government-wide regime applies to all federal procurement and real property transactions regardless of dollar value.
Under the regime, a bidder remains ineligible for ten years when they have been convicted of a listed offence in the last three years, which can be reduced by five years if the supplier has cooperated with legal authorities or addressed the causes of the misconduct that led to their ineligibility.
Suppliers will no longer be automatically ineligible for the actions of affiliates, unless it can be demonstrated that the supplier had a degree of control over the convicted affiliate.
The Government of Canada will have the ability to suspend a supplier for up to 18 months if the supplier has been charged with or has admitted guilt to a listed offence.
PWGSC will administer the regime on behalf of the Government of Canada and will apply it within the Department immediately. It will be rolled out to all departments and agencies over the coming months through Memoranda of Understanding with PWGSC.
The Department has consulted and will continue to consult anti-corruption experts and industry to ensure that the measures in the new regime are transparent, rigorous and consistent with best practices in Canada and abroad.
PWGSC introduced an Integrity Framework in 2012 for procurement and real property transactions under its purview. That Framework was further enhanced in March 2014. The introduction of this Integrity Regime replaces that initial Framework.

Quotes

“Our Government is committed to ensuring that we use taxpayers’ money to purchase goods and services from corporations that undertake ethical business practices at home and abroad. Under this new regime, companies who are criminally convicted or face ethical violations will bear the cost of proving to the Government that they are a reliable business, not taxpayers.”
The Honourable Diane Finley
Minister of Public Works and Government Services

“The Government of Canada’s new Integrity Regime is proportionate, thoughtful and consequential, reflects industry feedback and commercial realities, and sets a high bar for Canadian companies behaving ethically and playing by the rules.”
Richard Leblanc, PhD
Associate Professor of Law, Governance and Ethics at York University

“Having listened to industry’s concerns, the suggested changes to the Government of Canada’s new Integrity Regime will both ensure the government is doing business with ethical companies and also encourage those companies to institute proactive risk management compliance processes.”
Bronwyn Best
President of Heiwa Business International

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Contacts

Marcel Poulin
Office of the Honourable Diane Finley
819-997-5421

Media Relations
Public Works and Government Services Canada
819-956-2315

PWGSC news releases are also available on our Internet site.

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Public Services and Procurement Canada Economics and Industry Economic Action Plan

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Government of Canada Announces Improvements to Integrity of Federal Procurement

News Release

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