Procurement Risk:
Low
Score:
67/100
Government Policy
Q57
75/100
Does the country have legislation covering defence and security procurement with clauses specific to corruption risks, and are any items exempt from these laws?
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This indicator is not assigned a score in the GDI. Defence procurement is governed by four separate acts of parliament and requires the consent…
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The Corruption of Foreign Public Officials Act [1] is the primary metric used to mitigate and punish potential instances of corruption. The Code of…
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The Procurement Ombudsman regularly reviews practices, complaints, and facilitates dispute resolution should conflicts arise within the procurement process. [1] Investigation reports by the Office…
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Q58
67/100
Is the defence procurement cycle process, from assessment of needs, through contract implementation and sign-off, all the way to asset disposal, disclosed to the public?
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The entire defence procurement cycle, from assessment of needs, through contract implementation and sign-off, to asset disposal, is formalised. [1] Procurement initiatives are made…
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Processes and specific initiatives regarding defence procurement are outlined on the Public Services and Procurement Canada website. [1] Needs assessments, contract implementation and sign-off,…
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There are policies and procedures for each step of the implementation process of procurements cycle and there is evidence that these are followed in…
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Q59
75/100
Are defence procurement oversight mechanisms in place and are these oversight mechanisms active and transparent?
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The Canadian International Trade Tribunal (CITT), the Office of the Auditor General of Canada, various Parliamentary Standing Committees, the Independent Review Panel for Defence…
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The Canadian International Trade Tribunal (CITT), the Office of the Auditor General of Canada, various Parliamentary Standing Committees, and the Office of the Procurement…
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There is evidence of procurement activities made available to the public through the government Buy and Sell website, as well as through reports put…
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Strong, Secure, Engaged: Canada’s Defence Policy’, developed in 2017 after extensive public consultation, lays out planned defence funding projections for 20 years with more…
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The Government Contracts Regulations, Section 7 notes that: “A contracting authority shall solicit bids by (a) giving public notice, in a manner consistent with generally accepted…
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Procurement initiatives are made public in their early stages (through soliciting Letters of Interest and Requests for Proposals) on the Canadian Government’s “Buy and…
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In addition to the information noted in 61A, the government makes available raw data (CSV format) that can be used to make detailed comparisons…
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Capability Gap and Requirements Definition
Q62
0/100
What procedures and standards are companies required to have – such as compliance programmes and business conduct programmes – in order to be able to bid for work for the Ministry of Defence or armed forces?
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Companies must have appropriate security clearance in place in order to secure contracts with the Department of National Defence and the Canadian Armed Forces,…
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There are no clear proactive integrity or anti-corruption standards in relation to bidders, an issue also raised by the media, other than the fact…
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Q63
83/100
Are procurement requirements derived from a national defence and security strategy, and are procurement decisions well-audited? Are defence purchases based on clearly identified and quantified requirements?
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Procurement requirements in terms of the high level list of items needed by the Department of National Defence (DND) is directly related to the…
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Scrunity is actively conducted by a number of legally or constitutionally mandated oversight mechanisms, some of which are parliamentary committees, the Office of the…
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Canada’s defence purchases follow security objectives published in ‘defence white papers’ that identify the requirements necessary to fill the needs identified within an ever-changing…
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Tender Solicitation, Assessment and Contract Award
Q64
63/100
Is defence procurement generally conducted as open competition or is there a significant element of single-sourcing (that is, without competition)?
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The Government of Canada has rigorous ‘Government Contracts Regulations’ that stipulate competitive bidding processes are to be treated as the norm, unless certain circumstances…
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For those initiatives that are deemed suitable for a single source to be pursued there is a Code of Conduct for Sole-source supply that…
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Q65
56/100
Are tender boards subject to regulations and codes of conduct and are their decisions subject to independent audit to ensure due process and fairness?
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There are robust Conflict of Interest reporting mechanisms throughout the Canadian Public Service and employees are expected to report these either at the time…
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Contracts are posted clearly online, as well as any amendments or updates to the contracts as well as any fluctuation in the dollar amount(s)…
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Codes of conduct are transparent, as are all similar bodies within the Canadian Public Service. [1] [2] Any real or perceived conflict of interest…
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The public notices of each procurement initiative lay out the required specifications for each tender, and these are subject to public scrutiny (i.e. from…
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Q66
75/100
Does the country have legislation in place to discourage and punish collusion between bidders for defence and security contracts?
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There is legislation in place to discourage and punish collusion between bidders on contracts. The Competition Act (Section 45) stipulates that any (every) person…
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The Competition Act (Section 45) stipulates that any person guilty of conspiring to, agreeing to, or arranging to fix prices, or otherwise unfairly manipulating…
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If a contracting authority suspects collusion or bid rigging, it shall notify Industry Canada (now ISED) for appropriate measures/punishments. [1] In practice, while other…
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As collusion and bid rigging are addressed and enforced through Section 47 of the Competition Act, [1] Public Works and Government Services Canada mandated…
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Contract Delivery and In-Service Support
Q67
67/100
Are there mechanisms and procedures that ensure that contractors meet their obligations on reporting and delivery?
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Formal policies do exist. [1] Section 12 of the Government of Canada’s Contracting Policy focuses on ‘Protecting the interests of the Crown’ and lays…
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Contracts are publicly available, along with all modifications and previous versions as well as the associated changes in costs associated with the bid. [1]…
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For consulting and professional service contracts, the contracting authority (CA) is responsible for monitoring the compliance with contractual obligations by contractors/bidders. The CA should…
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There is not enough evidence on enforcement to score this indicator. Breaches in contracts can result in the loss of or termination of the…
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Q68
100/100
Are there mechanisms in place to allow companies to complain about perceived malpractice in procurement, and are companies protected from discrimination when they use these mechanisms?
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The Canadian International Trade Tribunal (CITT) is the central mechanism for companies to complain about perceived malpractice in procurement. [1] The CITT has been…
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There are no charges associated with filing complaints with the Office of the Procurement Ombudsman and decisions are intended to be reached (if the…
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According to the Office of the Procurement Ombudsman, “When you come to us with federal contracting issues, and have not yet filed a written…
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The Government Contracts Regulations (GCR) that came into force on June 10, 2019 provide clear guidelines regarding sanctions and punishments for corrupt activities. This…
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Cases are investigated and/or prosecuted through formal processes clearly guided by a body of appropriate legislative and legal measures that include accounting for potential…
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The changes to the GCR allow the government to penalise suppliers engaging in corruption without a conviction through the judicial system, meaning that the…
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Offset Contracts
Q70
50/100
When negotiating offset contracts, does the government specifically address corruption risk by imposing anti-corruption due diligence on contractors and third parties?
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Offset contracts are permitted and regulated by legislation to support the domestic defence sector, address security concerns and capture economic benefits from defence and…
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The GCRs apply to Industrial and Technological Benefits (ITB)/IRB/offset contracts, and the same integrity and legal regimes apply to their involvement in government contracts.…
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There are policies and procedures that outline the reporting and delivery obligations for offset contracts, but it is unclear that they address all activities…
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Some of the progress on fulfilling ITB obligations is published online, details of which are basic (ie. highly aggregated), and include some information of…
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Completed ITB obligations are publically reported in a highly aggregated manner online [1]. In an effort to streamline the monitoring process and decrease the…
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According to GoC, “Since the establishment of the Policy in 1986, no Prime Contractor has failed to meet its ITB obligations. ISED works closely…
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Offset (IRB/ITB) contractors are included in the initial bid package submitted to PSPC (the contracting authority) and are therefore subjected to the same amount…
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Agents / Brokers
Q73
NEI/100
How strongly does the government control the company’s use of agents and intermediaries in the procurement cycle?
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There is no prerequisite for companies seeking to bid on government contacts to disclose their beneficial ownership, therefore more clarity on government oversight concerning…
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There is not enough evidence to score this indicator. There is no prerequisite for companies seeking to bid on government contacts to disclose their…
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Financing Package
Q74
50/100
Are the principal aspects of the financing package surrounding major arms deals, (such as payment timelines, interest rates, commercial loans or export credit agreements) made publicly available prior to the signing of contracts?
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The principle aspects of the financial package are not made available prior to signing the contracts, the completed applications by firms are considered protected…
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Seller Influence
Q75
NS/100
How common is it for defence acquisition decisions to be based on political influence by selling nations?
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This indicator is not assigned a score in the GDI. The term “Defence Article” has long been defined in the Defence Production Act as…
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This indicator is not assigned a score in the GDI. The items purchased often reflect the needs identified by the military, Canada’s Defence Policy,…
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This indicator is not assigned a score in the GDI. Given the economic and regional disparities, the allocation of contracts is sometimes influenced by…
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