Application of the Ineligibility and Suspension Policy to subcontractors

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.

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.

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 Public Services and Procurement Canada (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.

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.