Supplier Integrity Directive

Upon request, this directive is available in multiple formats for individuals with a visual impairment (email PA/AP Multiple_Media-Format_Substitut).

  1. Effective date
  2. Application
  3. Related corporate policy instruments
  4. Introduction
  5. Objective and outcomes
  6. Requirements
  7. Roles and responsibilities
  8. Assessment and review
  9. References
  10. Enquiries

1. Effective date

The Supplier Integrity Directive came into effect on May 24, 2016, following approval by the Chief Financial Officer (CFO) and Assistant Commissioner (AC), Finance and Administration Branch (FAB).

2. Application

This directive applies to any CRA procurement contractual arrangements (i.e. contracts, supply arrangements and standing offers), hereafter referred to as “procurement contracts”, or other instruments that incorporate this directive by reference.

This directive does not apply to:

The Code of Integrity and Professional Conduct highlights for all CRA employees the expected standard of conduct and the required adherence to CRA policy instruments.

Compliance with CRA corporate directives is mandatory.

3. Related corporate policy instruments

This directive flows from the Procurement Policy.

See also References.

4. Introduction

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 by suppliers undermines fair competition, threatens the integrity of markets, increases the cost and risk of doing business and undermines public confidence in government institutions.

Public Works and Government Services Canada (PWGSC) has established an integrity regime that will, among other things, render companies and individuals ineligible to bid on solicitations or be awarded procurement contracts for certain convictions or acts.

In support of the overall government direction, the CRA has chosen to adopt virtually all   elements of PWGSC’s integrity regime. 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. PWGSC will also enter into administrative agreements (AAs) with suppliers, pursuant to the MoU. 

5. Objective and outcomes

5.1 Objective –To strengthen the integrity of procurement transactions by, to the extent possible, ensuring CRA solicitations and contractual arrangements contain supplier integrity terms and conditions that support the supplier integrity verification process.

5.2 Outcomes – CRA procurement transactions are, to the extent possible, only awarded to companies that respect the law and act with integrity.

6. Requirements

6.1 Mandatory Provision of Information

6.1.1

Please note that suppliers who are a partnership do not need to provide a list of names.

6.1.2

6.1.3 The supplier must, within 10 working days, inform the Contracting Authority in writing of any changes to the list of names that occur either during the evaluation of bids or offers or after contract award.

6.1.4 The supplier has a continuing obligation to, within 10 working days, advise the Contracting Authority of any charge, conviction or other circumstances specified in this directive with respect to itself, its affiliates and its first-tier subcontractors.

6.1.5 Canada (which refers to the CRA and/or PWGSC) may verify information provided by a supplier at any time. Canada may request additional information such as validations from a third party, consent forms and other evidentiary elements. The supplier must provide the requested information within the time specified. Failure to do so may render the supplier ineligible to contract with Canada.

6.2 Public Interest Exceptions

6.2.1 Unless the supplier has no capacity to contract with the Crown pursuant to subsection 750(3) of the Criminal Code, 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. Public Interest Exceptions (PIEs) include, but are not limited to:

6.2.2 A PIE requires the approval of the Chief Financial Officer and Assistant Commissioner (CFO & AC), Finance and Administration Branch (FAB).

6.2.3 The supplier must enter into an AA with PWGSC before being awarded a CRA procurement contract under a PIE, unless time is of the essence (e.g., an emergency, unforeseen urgency).

6.2.4 Notwithstanding clause 6.2.3, in circumstances where PWGSC does not enter into an AA with the supplier, the CRA reserves the right to award the procurement contract. In this situation, the approval of the CFO & AC, FAB must be obtained prior to contract award.

6.3 Incorporation by Reference

The following sections of PWGSC’s Ineligibility and Suspension Policy (ISP), dated April 4, 2016, including applicable definitions in the Annex, 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. Circumstances that Automatically Lead to a Determination of Ineligibility

Lists the conditions under which a supplier will not be permitted to contract with Canada, the period for which they are not permitted to contract, and how that time frame could be reduced in certain circumstances.

7. Circumstances that May Lead to a Determination of Ineligibility or Suspension

Lists the conditions under which a supplier is ineligible to contract due to a conviction or suspended from contracting due to a charge and how their associated time frames can be reduced.

8. Pardons

Explains when PWGSC will not make a determination of ineligibility

9. Process for Making Determinations of Ineligibility

Explains that PWGSC will determine that a supplier is ineligible to contract with Canada because the supplier, its affiliates or first-tier subcontractors have been convicted of a listed offence.

10. General Anti-Avoidance Provisions

Explains the consequences should the supplier attempt to circumvent a determination of ineligibility or suspension by way of a merger, acquisition, divestiture, etc.

11. Limited Review of Determinations of Ineligibility

Explains the process under which a supplier may challenge a determination of ineligibility that was made because of the actions of an affiliate.

12. Process for Suspensions

Explains PWGSC’s process for determining when a supplier may not be permitted to contract because the supplier, its affiliates or first-tier subcontractors have been charged with a listed offence.

13. Effect of Determinations of Ineligibility and Suspension

Explains the process once a supplier has been suspended or deemed ineligible to contract.

14. Administrative Agreements

Explains when a supplier requires an AA, its purpose, and the consequences for the supplier in not adhering to the AA.

16. Subcontractors

Explains the process a supplier must follow to determine if the subcontractor is ineligible.

18. Engagement of Third Party

Explains the requirement for the services of a third party when the supplier requires an AA.

7.0 Roles and Responsibilities

Chief Financial Officer and Assistant Commissioner, FAB, CRA

Director General, Administration Directorate (AD), FAB, CRA

Contracting Division, AD, CRA

Business and Management Services Division, AD, CRA

Departmental Oversight Branch, PWGSC

8. Assessment and review

Finance and Administration Branch, CRA is responsible for the scheduled review of this directive every five years, as well as for any ad hoc reviews deemed necessary.

To support the review process, FAB is also responsible for identifying and undertaking any monitoring and assessment activities that will help it determine whether this directive’s objective remains relevant and achievable and whether its requirements are being adhered to.

9. References

This directive is to be administered and implemented in conjunction with the references listed below:

Procurement Policy (CRA)

Ineligibility and Suspension Policy (PWGSC)

10. Enquiries

Questions about this directive should be directed to:
Director, Contracting Division
Administration Directorate, FAB

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