Clarifications to the Ineligibility and Suspension Policy (information bulletins)

Information to help suppliers understand the requirements and processes applicable to them under the Ineligibility and Suspension Policy.

On this page

• Required information to submit with a bid or offer
• Providing a false or misleading certification or declaration
• Application of the Ineligibility and Suspension Policy to subcontractors

Required information to submit with a bid or offer

Suppliers must submit the following information for contracts and real property agreements subject to the Ineligibility and Suspension Policy (the policy):

1. List of names for integrity verification

Section 13 of the policy requires suppliers to provide a list of names for verification when submitting a bid or offer for contracts and real property agreements subject to the policy.

The names provided will be verified prior to contract or real property agreement award to ensure that the supplier is not ineligible or suspended from doing business with the Government of Canada.

Regardless of a supplier’s status under the policy, this is a mandatory requirement for the award of a contract or real property agreement to which the policy applies.

The following names must be provided for verification:

• For a sole proprietor, the name of the owner
• For a private corporation, the names of all directors and the names of all individuals or entities that hold 5% or more of ownership
• For a public corporation, the names of all directors
• For a non-profit, the names of all directors
• For a general partnership, the names of all of the partners
• For limited partnerships (LP) and limited liability partnerships (LLP):
  • the names of all the general partners, in addition:
    • if the general partner is a public or non-profit corporation, the names of all directors
    • if the general partner is a private corporation, the names of all of the directors as well as the names of all individuals or entities that hold 5% or more of ownership
  • For a trust:
    • the names of the trustees, in addition:
      • if the trustee is a public or non-profit corporation, the names of all directors
      • if the trustee is a private corporation, the names of all of the directors as well as the names of all individuals or entities that hold 5% or more of ownership

This information is to be included with the supplier’s bid or offer. Failure to submit this information with a bid or offer, where required, will render the bid or offer non-compliant, or the supplier otherwise disqualified for award of a contract or real property agreement. This information may be provided by using the List of names for integrity verification form.

2. Information pertaining to criminal charges, convictions or other circumstances listed in the Ineligibility and Suspension Policy

By submitting a bid or offer in response to a bid solicitation or real property agreement, a supplier is certifying the following:

1. it has read and understands the Ineligibility and Suspension Policy (the policy)
2. it understands that certain circumstances, as described in the policy, will or may result in a determination of ineligibility or suspension under the policy
3. it is aware that Canada may request additional information, certifications, and validations from the supplier or a third party for the purpose of making a determination of ineligibility or suspension
4. none of the circumstances listed under “Information on Charges, Convictions and Other Circumstances” in the Integrity declaration form, and described in Appendix 2 of the policy, that will or may result in a determination of ineligibility or suspension, apply to itself, its affiliates or its proposed first tier subcontractors, and
5. it is not aware of a determination of ineligibility or suspension issued by Canada that applies to it

If a supplier is unable to provide all of the certifications listed above, it must submit a completed Integrity declaration form to the Office of Supplier Integrity and Compliance.

If a supplier is able to certify compliance as part of their bid or offer, they do not need to complete an Integrity declaration form.

Updating submitted information

In the event that the information the supplier submitted with a bid or offer changes at any point, it is the responsibility of the supplier to submit updated information, in writing.

• During the bid or offer evaluation stage, a supplier must, within 10 business days, inform the contracting authority in writing of any changes affecting the list of names that was submitted
• Following contract award and during the performance of a contract or real property agreement, a supplier has a continuing obligation to inform the Office of Supplier Integrity and Compliance, within 22 working days, of:
  • any charge, conviction or other circumstance relevant to the policy with respect to itself, its affiliates and its first-tier subcontractors, and
  • any change affecting the list of names submitted with the bid or offer

The Registrar can be contacted by mail using the address provided on the Contact the Office of Supplier Integrity and Compliance page, indicating C/O the Registrar of Ineligibility and Suspension.

Provision of additional information

In cases where the supplier is asked to provide additional information, including third-party validations, certifications, consent forms, etc., the supplier must provide the requested information within the time specified. Failure to do so may render the supplier ineligible to contract or enter into a real property agreement with Canada.

Providing a false or misleading certification or declaration

Supplier due diligence

A supplier is responsible for ensuring the veracity, accuracy and completeness of any certifications and declarations it provides.

As such, Public Services and Procurement Canada (PSPC) expects a supplier to undertake due diligence as a part of its business processes when providing its certifications and any declarations, including confirmation that:

• the circumstances that may lead to a declaration of ineligibility or suspension as listed in Appendix 2 of the policy do not apply to them, their affiliates or their proposed first-tier subcontractors
• and that they, their affiliates and their proposed first-tier subcontractors do not appear on the ineligible and suspended suppliers list

If a supplier is unsure or unable to confirm the information above, the supplier must submit an Integrity declaration form.

A supplier is required to provide certifications and any declarations with each bid or offer. This means that a supplier must do so regardless of whether it has submitted a separate bid or offer, or is involved in an ongoing determination of ineligibility related to a separate bid solicitation or real property agreement.

When undertaking its due diligence, a supplier may wish to document the steps it took to verify the existence of charges or convictions, and continued monitoring during the course of a contract or real property agreement. A supplier should also consider documenting any measures taken when it first learns of adverse information.

Suppliers are encouraged to Contact the Office of Supplier Integrity and Compliance (OSIC) regarding any uncertainty with respect to their responsibilities.

Reviewing the circumstances of a false or misleading certification or declaration and engaging suppliers

A false or misleading certification or declaration can include, but is not limited to, instances where a supplier:

• fails to declare applicable information
• provides inaccurate information
• provides incomplete information

In making a determination of ineligibility on the basis of a false or misleading certification or declaration, PSPC will consider any and all information that, in its judgment, is authentic and relevant.

Where PSPC considers that a supplier may have provided a false or misleading certification or declaration, it will request information from the supplier that it considers relevant to making its determination. PSPC will issue a notice to the supplier detailing the requirements.

When engaging a supplier, PSPC will provide the supplier with the opportunity to present evidence and written submissions, demonstrating the circumstances of its certifications or declarations.

PSPC will consider any information provided by a supplier to assess whether the supplier undertook expected due diligence. Recognizing that a supplier is responsible for understanding and meeting all requirements when submitting a bid or offer, PSPC will not accept an ignorance of requirements as a reason for failing to declare accurate and complete information.

Notifying suppliers

Where PSPC concludes that circumstances exist that result in the ineligibility of a supplier, PSPC will issue the supplier a Notice of Ineligibility.

Application of the Ineligibility and Suspension Policy to subcontractors

Subcontractor defined

The policy defines a “first-tier subcontract” as:

1. a contract made between the supplier and a person (other than Canada) for carrying out or supplying goods for part or all of another contract between the supplier and Canada (which may include, without limitation, all the activities, services, goods, matters and things required to be done, delivered or performed by the supplier under a contract or real property agreement), and
2. a sublease made between the supplier and a person (other than Canada) for part of or all of premises leased by Canada to the supplier (Premier contrat de sous traitance)

A first-tier subcontractor is a contractor to the first-tier subcontract.

Supplier status

Under the policy, a supplier cannot subcontract with an ineligible or suspended first-tier subcontractor to perform work under a contract or real property agreement with Canada.

Subject to the exceptions provided for in Section 2 of the policy, any supplier that enters into a contract or real property agreement with an ineligible or suspended first-tier subcontractor, when advised of the ineligibility or suspension, or in circumstances where information about the subcontractor’s ineligibility or suspension was reasonably available, may be determined to be ineligible to enter into a contract or real property agreement with Canada.

A supplier becomes ineligible or suspended to do business with the Government of Canada by determination of the Registrar of Ineligibility and Suspension. Until such determination is made, a supplier is eligible to be awarded a contract, first-tier subcontract or real property agreement.

Verification process for subcontractors

Suppliers are required to verify the status of their prospective first-tier subcontractors prior to bid submission and before entering into a direct contractual relationship. Suppliers can verify the status of a prospective subcontractor in one of two ways:

1. For companies, the prime contractor must consult the public ineligible and suspended suppliers list to confirm that the prospective subcontractor is not ineligible or suspended under the policy.
2. For individuals, the prime contractor will be required to send a written request to the Registrar of Ineligibility and Suspension, along with a signed Subcontractor Integrity verification request form from the prospective subcontractor permitting PSPC to disclose to the supplier information regarding the prospective subcontractor’s status under the policy.

Completed forms may be emailed to: tpsgc.surveillancedelintegrite-integritycheck.pwgsc@tpsgc-pwgsc.gc.ca.

After receipt of the completed subcontractor integrity verification request form, PSPC will notify the prime contractor in writing by email or post of the results of the request.

If a subcontractor becomes suspended or ineligible during the performance of a contract or real property agreement, the prime contractor may choose to continue with or terminate the arrangement.

Exceptions

If a prime contractor requires the services of a suspended or ineligible subcontractor (for example, the only supplier capable of undertaking the subcontract work is ineligible), approval of the contracting authority must be obtained in advance.

To seek the approval of the contracting authority to subcontract with a suspended or ineligible subcontractor, the prime contractor must submit written justification as to why it requires the subcontractor. Suppliers must complete and submit the Subcontractor exception form.

The completed form must be emailed or mailed to the contracting authority.

After receipt of a duly completed Subcontractor exception form, the contracting authority will inform the prime contractor in writing by email or post if it may subcontract with the suspended or ineligible proposed subcontractor.