Code of Conduct for Procurement

• The new Code of Conduct for Procurement was announced on September 19, 2007.
  
  The Code was announced at the same time as the appointment of the Procurement Ombudsman Designate. It was released following a public consultation period on a draft Code of Conduct. The Code is part of the government's Federal Accountability Action Plan and flows from the Federal Accountability Act.

 
• The new Code of Conduct for Procurement applies to public servants and suppliers.
  
  The Code provides a statement of mutual expectations to public servants and suppliers in an attempt to ensure a common basic understanding among all participants in procurement. The Code applies to all transactions covered by the Treasury Board Contracting Policy.
  
  The Code intends to summarize existing law and does not change the law or its interpretation. It is meant to provide a single point of reference to key responsibilities and obligations to make the measures easier to find and understand.

 
• The Code defines responsibilities of suppliers when participating in the procurement system.
  
  A vendor means any person or other legal entity who has submitted an offer or may submit an offer to contract or who has been awarded a contract by a department or under which Public Works and Government Services is specified to be the contracting authority.
  
  Vendors must respond to bids in an honest, fair and comprehensive manner; accurately reflect their capacity to satisfy the requirements of the bid; and submits bids and enter into contracts only if they will fulfill all obligations of the contract. Vendors must also alert the contracting authority to any factual errors that they discover in bid solicitations.

 
• Future contracts with the Crown will include integrity provisions that are contractual obligations.
  
  Vendors will be required to certify compliance with Code. All contracts will incorporate clauses prohibiting payment of a contingency fee to the contract of a person to whom the Lobbying and Registration Act applies; prohibiting corruption and collusion; and requiring a bidder to make a declaration that the bidder has not committed certain offences. A vendor must certify that it meets these requirements.
  
  It will also be a condition of all contracts that the vendor has read and agrees to be bound by the terms of the Code of Conduct for Procurement.
  
  False certification of compliance with the requirements of the Code could result in bid disqualification, bid exclusion, termination of contract and/or exclusion from future work.

 
• Vendors must respect the Responsibilities of Public Servants.
  
  Vendors should must any action that would jeopardize current or former public servants' ability to respect their obligations under the Values and Ethics Code for the Public Service.

 
• Vendor may complain to the Canadian International Trade Tribunal or the Procurement Ombudsman.
  
  The Code outlines the Canadian International Trade Tribunal's jurisdiction to conduct inquiries into complaints by potential vendors concerning procurements by the federal government that are covered by the Trade Agreements.
  
  In addition, following the appointment of the newly created Procurement Ombudsman, vendors will be able to complain and seek a review concerning compliance with regulations under the Financial Administration Act arising out of contracts awarded for procurements below the monetary threshold of the Agreement on Internal Trade.
  
  The Code also highlights the Contracts Settlement Board as a mechanism for resolving contract disputes.