Code of Fair Contract Practices
Frequently Asked Questions
Q.1 Why does the government need a Code of Fair Contract Practices if it has existing measures?
A.1 The government already has a number of measures in place to ensure that contracting is conducted in an open, fair and transparent way. By developing a Code of Fair Contract Practices, the government will be able to consolidate all of its existing measures into a comprehensive and transparent statement of expectations the government has of its employees and its suppliers. In short, the Code will help make the government’s expectations, and its commitment to openness, and fairness, clearer and more transparent.
Q.2 What measures currently exist?
A.2 The government already has a number of measures in place to ensure that contracting is conducted in an open, fair and transparent way. For example:
- criminal sanctions exist for giving or receiving bribes or colluding with others to obtain a contract;
- the Values and Ethics Code for the Public Service guides and supports public servants in all their professional activities;
- as a common service provider, PWGSC has its own
guidelines regarding the receipt of gifts and hospitality from
suppliers to ensure that there is no perception of bias in our
contracting activities.
- the Lobbyist Registration Act includes disclosure requirements.
Q.3 What are integrity provisions?
A.3 Integrity provisions are clauses that would be included in individual contracts to provide a clear statement of the obligations of contractors, including: not to pay, offer, demand or accept bribes; not to collude to obtain a contract, and; to disclose all commissions and similar expenses paid in connection with the contract. While these measures already exist, integrity provisions would allow us to consolidate them into contracts so that they become contractually binding commitments. These integrity provisions would include a range of sanctions against suppliers who contravene the Code.
Q.4 What kind of sanctions could result from non-compliance?
A.4 The government already has a number of measures in place to ensure that contracting is conducted in an open, fair and transparent way. Enforced sanctions against suppliers for improper or illegal conduct could include exclusion from future procurement opportunities. Appropriate disciplinary action could also be taken against public servants who contravene the Code. We will work very closely with the private sector to ensure sanctions for non-compliance are fair and reasonable.
Q.5 Why is the Values and Ethics Code for the Public Service not enough?
A.5 The Values and Ethics Code deals with many aspects of the federal government’s activities. By developing a Code of Fair Contract Practices, the government will be able to consolidate all of its existing measures into a comprehensive and transparent statement of expectations specific to procurement that the government has of its employees and its suppliers. This will make expectations and consequences clear and easier to understand for suppliers and public servants.
Q.6 How will the Code improve contracting?
A.6 The Code will ensure that public servants and suppliers are working from the same comprehensive statement of expectations and commitments that clearly outline what is acceptable when contracting with the government. In short, the Code will help make the government’s expectations, and its commitment to openness, and fairness, clearer and more transparent.
Q.7 Will suppliers be consulted on the development of the Code and integrity provisions?
A.7 PWGSC will consult with suppliers on the development of the Code and integrity provisions. The government will work with the private sector, primarily through industry associations with which we already have excellent working relationships, to develop the Code of Fair Contract Practices.
Q.8 Do suppliers need their own code of conduct now to do business with the government and will they be obligated to develop their own codes in future?
A.8 No. The government will, however, only deal with suppliers who are prepared to work within the expectations and commitments found in the Code and integrity provisions. In building a stronger partnership with the private sector, the government will also work with suppliers to learn from their best practices and encourage others to establish and expand their own codes of conduct where such practices do not exist.
These measures will neither advantage nor disadvantage any part of the supplier community. Quite the opposite, they will in fact level the playing field for suppliers vying for government contracts, and help to build a stronger relationship between the government and the private sector. As well, there will be no adverse effects on either our aboriginal business community, or small and medium businesses in general, and our commitment to sustainable development through procurement will remain strong.
Q.9 When will the Code be available?
A.9 PWGSC is aiming for the Code and integrity provisions to be ready in early 2006.
Q.10 By implementing the Code and integrity provisions, are you suggesting that the Government of Canada is corrupt?
A.10 No. Most government contracting is conducted to the highest standards of integrity by both public servants and suppliers. Implementing a Code and integrity provisions will promote awareness of the government’s expectations and increase the level of transparency and accountability between suppliers and the government.
Q.11 Is this initiative a response to the sponsorship scandal?
A.11 This initiative consolidates the government’s existing suite of conflict of interest and anti-corruption policies. The aim is to promote awareness of the government’s expectations and increase the level of transparency and accountability between suppliers and the government.
Q.12 You have made it clear that the new integrity framework and Fair Contract Practices Code will apply to suppliers and public servants: what about Ministers, Members of Parliament and political staff?
A.12 The Code will further ensure that both suppliers and public servants clearly understand the limits in dealing with Ministers, Members of Parliament and political staff in the course of a procurement. Those limits are already well defined: any attempt to influence a procurement through any of these parties is prohibited; a supplier who seeks to communicate about a particular procurement with anyone other than the contracting officer risks having its bid rejected; and any special access to privileged information is also prohibited.
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