Coming into force of the Office of Supplier Integrity and Compliance

New office expands capacity to identify and respond to supplier misconduct

GATINEAU, QC, May 31, 2024 /CNW/ - Today, the Honourable Jean-Yves Duclos, Minister of Public Services and Procurement, announced a key milestone in the establishment of the new Office of Supplier Integrity and Compliance (OSIC), which will strengthen the integrity and oversight of the procurement process to help ensure that Canada does not contract with suppliers of concern.

The revised Ineligibility and Suspension Policy, a key supporting instrument of the work that OSIC will administer on behalf of the Government of Canada, was posted online on May 1, 2024, and comes into effect today, May 31, 2024. The revised policy brings enhancements to Public Services and Procurement Canada's (PSPC) approach to addressing suppliers of concern, allowing the department to better respond to misconduct and wrongdoing and further safeguard the integrity of federal procurements and real property agreements.

The establishment of OSIC modernizes the Government of Canada's debarment and suspension program, further strengthens its approach to identifying potential instances of fraud and wrongdoing within federal procurement through the use of data analytics capacity, and gives the government additional tools to address other concerning conduct, such as terrorist financing, the use of human trafficking or forced labour, or relevant offences recognized in provincial and foreign civil judgments. 

This work builds on the Government of Canada's commitment to modernizing procurement practices so that they are simpler and less administratively burdensome, deploy modern comptrollership, and encourage greater competition, while supporting innovation, greening and social procurement. It builds on additional practices undertaken by PSPC to make immediate improvements to procurement processes and procedures, beginning with professional services contracting, and increasing transparency surrounding contract information.

The Government of Canada is unwavering in its stance against unethical and illegal business practices and for the prudent use of tax dollars. Instances of fraud and misconduct will be thoroughly investigated, and appropriate action will be taken to hold bad actors accountable.

Quotes

"Unethical business practices have no place in the Government of Canada's business dealings. The coming into force of the Office of Supplier Integrity and Compliance is an important step to strengthen compliance and accountability and to ensure that Canadians' hard-earned tax dollars are being spent wisely and responsibly."

The Honourable Jean-Yves Duclos
Minister of Public Services and Procurement

Quick facts

• PSPC has a framework in place to prevent, detect and respond to potential wrongdoing, in order to safeguard the integrity of the federal procurement system. This approach includes a variety of tools to actively detect wrongdoing, and to respond to allegations that the Government of Canada is being defrauded either in a specific contract or on a broader scale.
• PSPC continues to implement new master-level user agreements (MLUA) for professional services supply arrangements with all federal client departments and agencies. To date, nearly 100 client departments have signed a new MLUA. These agreements stipulate the use of new contract provisions to increase costing and subcontractor transparency, and provide important clarifications on the role of technical authorities in ensuring consistent practices when using PSPC procurement instruments. 
• More information to help suppliers and industry partners meet the requirements of the revised policy is available on the OSIC website. The policy sets out when and how a supplier may be declared ineligible or suspended from doing business with the Government of Canada.

Related products

• Office of Supplier Integrity and Compliance
• Taking action against fraud and strengthening financial and procurement management - Canada.ca
• Revised Ineligibility and Suspension Policy—coming into effect May 31, 2024 - Canada.ca
• New measures to strengthen management and oversight of government procurement
• Combating Fraudulent Activities Announcement - Canada.ca
• Spring 2018 announcement of enhancements to the Integrity Regime: Canada to enhance its toolkit to address corporate wrongdoing
• Fall 2018 consultation: Administering Canada's enhanced Integrity Regime

Associated links

• Procurement modernization and improving e-procurement
• Federal Contracting Fraud Tip Line 
• Manager's Guide: Key Considerations When Procuring Professional Services
• Directive on the Management of Procurement

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SOURCE Public Services and Procurement Canada

Contacts: Guillaume Bertrand, Senior communication advisor and press secretary, Office of the Honourable Jean-Yves Duclos, 418-564-9571, [email protected]; Media Relations, Public Services and Procurement Canada, 819-420-5501, [email protected]