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:

• call-ups against a standing offer;
• contracts pursuant to a supply arrangement;
• procurement contracts that are ancillary or incidental to a main procurement contract;
• procurement contracts and subcontracts with a transaction value below $10,000;
• any acquisition made using a Government of Canada acquisition card, regardless of dollar value;
• procurement contracts for the purchase of subscriptions or memberships. This exclusion includes newspapers and periodicals, research, reference, analytics, reports, media and market monitoring, or other like information subscriptions or memberships, electronic or otherwise;
• contracts for expert or material witness services;
• contracts with federal entities that have investigative powers where application of the directive could compromise criminal investigations, national security or public safety;
• inter- and intra-governmental agreements and procurement contracts;
• procurement contracts between Canada and Indian Band Councils;
• procurement contracts that relate to the fulfillment of obligations by a public body under an international agreement to which Canada is a party and in relation to goods or the carrying out of a work or works or the provision of services necessary for the implementation or exploitation of a project related to that agreement; and
• employment contracts, transfer payments (grants, contributions, and other transfer payments) and insurance contracts.

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

• Suppliers who are corporate entities, including those bidding as joint ventures, must provide a complete list of the names of all current directors or, for a privately owned corporation, the names of the owners of the corporation.
• Suppliers bidding as sole proprietors, including those bidding as joint ventures, must provide a complete list of the names of all owners.

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

6.1.2

• If the list of names has not been received by the time the evaluation of responses to any competitive procurement is completed, the Contracting Authority will inform the supplier of a deadline by which the information must be provided. Failure to provide the names within the time frame specified will render the bid or offer non-responsive.
• For non-competitive procurements that are not considered a pressing emergency, the Contracting Authority must receive the list of names prior to contract award. For pressing emergencies, the Contracting Authority shall endeavor to receive the list of names as soon as the “emergency” is under control.

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:

• 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; or  
• not entering into the CRA procurement 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.

6.2.2 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.

7.0 Roles and Responsibilities

Chief Financial Officer and Assistant Commissioner, FAB, CRA

• Approves PIEs.
• Approves contract award in extraordinary circumstances. 

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

• Ensures appropriate oversight for CRA procurement contracts.

Contracting Division, AD, CRA

• Ensures solicitation documents compel bidders to disclose the required information in order to determine eligibility prior to contract award;
• Ensure supplier integrity verifications are conducted as applicable.

Business and Management Services Division, AD, CRA

• Conducts compliance reviews for various procurements.

Departmental Oversight Branch, PWGSC

• Makes determinations of supplier ineligibility or suspension and enters into AAs on behalf of the CRA.

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