Supplier Integrity Directive
Version number: 3.0
Version date: November 8, 2024
Upon request, this corporate policy instrument (CPI) is available in multiple formats for individuals with a visual impairment (send an email to Multiple Media-PAB).
1. Effective date
1.1 This version of the Supplier Integrity Directive takes effect on November 8, 2024.
1.2 For the full version history of this document, refer to section 10.
1.3 This directive is scheduled for review every five years. The next review is planned for completion by November, 2029.
2. Application
2.1 This directive is mandatory to follow and applies to employees of the Canada Revenue Agency (CRA) and to any other individuals required to follow CRA CPIs.
2.2 The Code of Integrity and Professional Conduct (the Code) highlights the rules, and describes the values, that guide CRA employees in their work. The Code, along with the CRA Foundation Framework for Corporate Policy, set out the requirement to follow CPIs.
2.3 Consequences of non-compliance for employees: failure to comply with CPIs may result in corrective measures, including administrative and disciplinary actions.
2.4 This directive applies to any CRA procurement processes, contracts, supply arrangements and standing offers, or other instruments that incorporate this directive by reference.
This directive does not apply to:
- contracts that are ancillary or incidental to a main contract;
- contracts, and first-tier subcontracts with a transaction value below $10,000;
- any routine acquisition as it relates to operational requirements, regardless of dollar value, made using a Government of Canada acquisition card where there is no written contract between Canada and the other party, but where a bill of sale or receipt will be issued to evidence the acquisition—the foregoing does not extend to acquisition cards that are used to make payments against contracts, standing offers, supply arrangements or other contracting instruments;
- contracts for newspaper subscriptions or other like information subscriptions or memberships (electronic or otherwise), which require Canada to accept the supplier's standard form contract (unilateral contract), without Canada having the ability to negotiate the terms;
- contracts for expert and material witness services retained in support of litigation conducted by or on behalf of Canada;
- contracts with federal entities that have investigative powers where application of the directive could compromise criminal investigations, national security or public safety;
- inter-governmental and intra-governmental agreements and memoranda of understanding;
- contracts between Canada and Band Councils under the Indian Act;
- contracts that relate to the fulfillment of Canada’s obligations under an international agreement (which includes, without limitation, contracts for goods, the carrying out of works and the provision of services that are necessary for the fulfillment of such international agreement);
- employment contracts;
- financial contracts;
- transfer payments (that is, grants, contributions, and other transfer payments); and
- insurance and surety contracts.
2.5 This directive does not apply to any contracts (which includes, without limitation, solicitations that have not been awarded) that reference the May 24, 2016 Supplier Integrity Directive or the November 3, 2021 Supplier Integrity Directive, save and except that:
2.5.1 any determination of ineligibility or suspension under such directive will also be a determination of ineligibility or suspension under this directive; and
2.5.2 upon the request of a supplier, any period of ineligibility determined thereunder will be reassessed pursuant to section 6.3 of the May 31, 2024 PWGSC Ineligibility and Suspension Policy (ISP). Any change to the period of ineligibility will only be effective as of the date of the Registrar of Ineligibility and Suspension (Registrar) determination under section 6.3 of the May 31, 2024 Ineligibility and Suspension Policy (that is, there will be no retroactive reduction) and not exceed the period of ineligibility under the May 24, 2016 or the November 3, 2021 Supplier Integrity Directive, as the case may be.
2.6 For greater clarity, other than as provided for above, the May 24, 2016 Supplier Integrity Directive and the November 3, 2021 Supplier Integrity Directive will continue to be effective for all contracts that incorporate the same.
3. Related corporate policy instruments
3.1 This directive flows from the Procurement Policy.
3.2 For any other related CPIs, refer to the References.
4. Overview
4.1 The CRA has an obligation to protect and safeguard the use and expenditure of public funds, to ensure strong stewardship and transparency, and to uphold the public trust in relation to its procurements. Unethical business behaviour undermines fair competition, threatens the integrity of markets, is a barrier to economic growth, increases the cost and risk of doing business, and undermines public confidence in government institutions.
4.2 Although Public Works and Government Services Canada (PWGSC) currently uses the name Public Services and Procurement Canada, PWGSC is used throughout the directive as it remains their legal name.
4.3 PWGSC has established an Ineligibility and Suspension Policy that will, among other things, render a supplier either ineligible to be, or suspended from being, awarded a contract with Canada (herein referred to as being "ineligible" and "suspended" respectively). The ISP also sets out the ineligibility and suspension periods, the process for determining the length of those periods, the criteria for invoking the public interest exception, the process for entering into an administrative agreement, the reduction of a period of ineligibility available pursuant to an administrative agreement and the process by which the Registrar makes determinations on the Registrar's own initiative or upon request by a supplier.
4.4 In support of the overall government direction, the CRA has chosen to adopt virtually all elements of PWGSC's ISP. By way of a Memorandum of Understanding (MoU), PWGSC will provide to the CRA, among other things, verification services. Determinations of ineligibility or suspension may be relied upon by the CRA when making a decision on whether to enter into a procurement contract with a given supplier. The CRA may also exercise the right to terminate a contract where such right is provided for in the contract. The Registrar will also enter into administrative agreements (AAs) with suppliers, pursuant to the MoU.
5. Objective and outcomes
5.1 Objective
To the extent possible, strengthen the integrity of procurement transactions by ensuring CRA solicitations and contractual arrangements contain supplier integrity terms and conditions that support the supplier integrity verification process.
5.2 Outcomes
To the extent possible, CRA procurement transactions are only awarded to suppliers that respect the law and act with integrity.
6. Requirements
6.1 Initial disclosure
Regardless of their status under this directive and the PWGSC Ineligibility and Suspension Policy dated May 31, 2024, all suppliers must submit the following information to the contracting authority when responding to a CRA solicitation and before entering into a contract or other instrument to which this directive applies:
6.1.1 the name of the owner for a sole proprietor;
6.1.2 the names of all directors and the names of all individuals and entities that hold 5% or more ownership of a private corporation;
6.1.3 the names of all directors for a non-profit corporation;
6.1.4 the names of all directors for a publicly traded corporation;
6.1.5 the names of the partners for a general partnership;
6.1.6 the name(s) of the general partner(s) (and, if a corporation, together with the information required under sections 6.1.2, 6.1.3 or 6.1.4) for a limited and a limited liability partnership; and
6.1.7 the name(s) of the trustee(s) for a trust (and, if a corporation, together with the information required under sections 6.1.2, 6.1.3 or 6.1.4);
with all the parties to a joint venture being required to submit the foregoing information. If, however, the foregoing information has not been received by the time the evaluation of bids or offers is completed or has not been received in a procurement process where no bid or offer will be submitted, the contracting authority will inform the supplier of a time within which to provide the information. Failure to provide the information within such specified period will render a bid or offer non-responsive, or the supplier otherwise disqualified for award of a contract.
6.2 Continuing obligation to disclose
The supplier will provide written notice of any:
6.2.1 change to the information provided pursuant to section 6.1 (which includes, without limitation, a change which is the result of a transfer or assignment);
6.2.2 new charge with respect to the supplier; and
6.2.3 new conviction or other circumstance with respect to itself, its affiliates and its first-tier subcontractors;
each to the extent relevant to this directive. Such will be provided to PWGSC:
6.2.4 within 10 business days of any such change for all procurements, standing offers, supply arrangements, contracts and other instruments not executed, entered into or otherwise awarded; and
6.2.5 within 22 business days of any such change for all procurements, standing offers, supply arrangements, contracts and other instruments executed, entered into or otherwise awarded.
6.3 Public interest exceptions
6.3.1 Unless the supplier has no capacity to contract with Canada, or receive any benefit under a contract with Canada and any other person pursuant to subsection 750(3) of the Criminal Code or is otherwise prohibited from contracting with Canada pursuant to a sanction listed in paragraph (1)(i) of Appendix 2 of the May 31, 2024 PWGSC Ineligibility and Suspension Policy, the CRA may enter into a contract with an ineligible or suspended supplier if the CRA considers that doing so is in the public interest. The reasons for invoking a public interest exception (PIE) include, but are not limited to:
- the need is one of pressing emergency in which a delay would be injurious to the public interest;
- the supplier is the only person capable of performing the work;
- the contract is essential to maintain sufficient emergency stocks in order to safeguard against possible shortages; and
- not entering into the contract with the supplier would have a significant adverse impact on health, national security, safety, public security or the functioning of any portion of the federal public administration.
6.3.2 A PIE requires the approval of the Chief Financial Officer and Assistant Commissioner (CFO and AC), Finance and Administration Branch (FAB).
6.3.3 The Registrar may require a supplier to enter into an administrative agreement before being awarded a contract further to a PIE.
6.3.4 Notwithstanding clause 6.3.3, if the Registrar does not enter into an AA with the supplier, the CRA reserves the right to award the contract. In this situation, the approval of the CFO and AC, FAB must be obtained prior to contract award.
6.4 Incorporation by reference
6.4.1 The following sections of PWGSC's Ineligibility and Suspension Policy (ISP), dated May 31, 2024, are incorporated into this directive by reference. Any inconsistencies between PWGSC's ISP and this directive will be resolved in accordance with the provisions of this directive.
| ISP section and title | Section synopsis |
|---|---|
| 6. Ineligibility | Explains the process for the Registrar determining ineligibility. |
| 7. Suspension | Explains the process for the Registrar establishing a suspension and the effects of a suspension. |
| 8. Limited review—ineligibility as a result of the actions of affiliates | Explains the process for staying or suspending a determination of ineligibility resulting from actions of affiliates |
| 10. Administrative agreements | Explains when a supplier requires an AA, its purpose, and the consequences for the supplier in not adhering to the AA. |
| 11. Independent third party | Explains the requirements for the use of third party services by suppliers in the Registrar's process for making determinations of ineligibility and suspension. |
| 12. Obligations with respect to first-tier subcontractors | Outlines suppliers' responsibilities with respect to first-tier subcontractors that are or become ineligible and suspended. |
| 14. Similar offences | Lists the factors the Registrar will consider when determining if a foreign offence is a similar foreign offence. |
| 15. General anti-avoidance provisions | Explains the consequences should the supplier attempt to circumvent a determination of ineligibility or suspension. |
| 18. Notices | Provides the method and timeframe for the issuance of notices by the Registrar. |
| Appendix 1: Definitions | Provides definitions for terms applicable to this directive and the ISP. |
| Appendix 2: Grounds – Ineligibility/Suspension | Lists the grounds for which a supplier may become ineligible for suspended. |
| Appendix 3: Factors to consider in establishing Period of Ineligibility. | Lists the elements the Registrar will consider when determining the length of a supplier's ineligibility period. |
6.5 Registrar and Public Works and Government Services Canada's contact information for purposes of the Ineligibility and Suspension Policy
6.5.1 The Registrar is an independent position responsible for making determinations of ineligibility, suspension, setting periods of ineligibility and suspension, and entering into administrative agreements. The Registrar can be contacted at the following address:
Registrar of Ineligibility and Suspension
C/O Departmental Oversight Branch
Public Services and Procurement Canada
Place du Portage, Phase III, Tower A
11 Laurier Street
Gatineau, Quebec K1A 0S5
Canada
Email: pwgsc.o.integrity-tpsgc.o.integrite@pwgsc-tpsgc.gc.ca
6.5.2 PWGSC can be contacted at the following address:
Office of Supplier Integrity and Compliance
C/O Departmental Oversight Branch
Public Services and Procurement Canada
Place du Portage, Phase III, Tower A
11 Laurier Street
Gatineau, Quebec K1A 0S5
Canada
Email: pwgsc.o.integrity-tpsgc.o.integrite@pwgsc-tpsgc.gc.ca
7. Roles and responsibilities
7.1 Chief Financial Officer and Assistant Commissioner, FAB, CRA
7.1.1 Approves PIEs;
7.1.2 Approves contract award in extraordinary circumstances; and
7.1.3 Approves this directive.
7.2 Assistant Commissioners, CRA
7.2.1 Approve the justification for deeming a PIE necessary.
7.3 Director General, Administration Directorate (AD), FAB, CRA
7.3.1 Ensures appropriate oversight for CRA contracts.
7.4 Director, Contracting Division, AD, FAB, CRA
7.4.1 Ensures the obligations of contract administration and management are met.
7.5 Director, Compliance, Policy, and Issues Management Division, AD, FAB, CRA
7.5.1 Ensures mandatory compliance reviews for procurements are conducted.
7.6 Contracting Authorities, Contracting Division, AD, FAB, CRA and the Centre of Professional Services for Regional Contracting, Quebec Region, CRA
7.6.1 Ensure solicitation documents compel bidders to disclose the required information in order to determine eligibility prior to contract award; and
7.6.2 Ensure supplier integrity verifications are conducted, as applicable.
7.7 Registrar of Ineligibility and Suspension, Office of Supplier Integrity and Compliance (OSIC), PWGSC
7.7.1 Declares ineligible or suspends a supplier from award of a contract with Canada;
7.7.2 Determines ineligibility and suspension periods, including reductions, stays and renewals; and
7.7.3 Enters into administrative agreements with suppliers and prescribes terms and conditions on behalf of the CRA.
7.8 Office of Supplier Integrity and Compliance, Departmental Oversight Branch, PWGSC
7.8.1 administers the Ineligibility and Suspension Policy on behalf of Canada. This includes, without limitation, making recommendations to the Registrar regarding ineligibility, suspension, periods of ineligibility and suspension, and terms and conditions of administrative agreements.
8. References
8.1 Related instruments and information:
- Code of Integrity and Professional Conduct
- CRA Foundation Framework for Corporate Policy
- Ineligibility and Suspension Policy (PWGSC)
- Procurement Policy
9. Enquiries
9.1 Employees are to direct questions about this directive to the FAB AD Compliance and Policy / DGFA DA conformité et politique (CRA/ARC) mailbox.
9.2 Suppliers must direct questions about this directive to the responsible Contracting Authority.
10. Version history
| Version number | Revision | Type of revision | Area responsible | Approved by: |
Approval date |
Effective Date |
|---|---|---|---|---|---|---|
| 3.0 | Updated to reflect the changes PWGSC made to the Ineligibility and Suspension Policy with the launch of the OSIC, including:
|
Ad hoc full review | AD, FAB | CFO and AC, FAB | July 29, 2024 | November 8, 2024 |
| 2.0 | Incorporated sections of directives issued by PWGSC subsequent to the Ineligibility and Suspension Policy and clarified roles and responsibilities | Cyclical full review | AD, FAB | A/CFO and AC, FAB | October 4, 2021 | November 3, 2021 |
| 1.0 | N/A | New Directive | AD, FAB | CFO and AC, FAB | April 1, 2016 | May 24, 2016 |
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