Code of Conduct for Procurement

The Code of Conduct for Procurement is the Government of Canada's statement of expectations and obligations for vendors and their sub-contractors who respond to bid solicitations and/or provide goods and services to Canada. It is incorporated by reference into federal procurements — which means it binds you whether or not you have ever read it.

What it is

Per PSPC, the current code is effective as of May 26, 2023. Under section 6.3 of the Treasury Board Directive on the Management of Procurement, the code is mandatory for all Government of Canada procurements as of April 1, 2023, applying to departments listed in Schedules I, I.1 and II of the Financial Administration Act (with the exception of the Canada Revenue Agency) and to commissions established under the Inquiries Act designated as departments for FAA purposes. It is included by reference into contracts resulting from standing offers or supply arrangements, standing offers, and supply arrangements — part of the contract's terms even though it is not replicated in full.

What it requires

The government requires its vendors and sub-contractors to operate lawfully and conduct their activities in a socially and environmentally responsible manner, at a minimum meeting the code's expectations. The 2023 update simplified the language and added content on human and labour rights, environmental protection, discriminatory practices and the rights of Indigenous Peoples. Vendors must alert their contracting authority as soon as they become aware they may not be in compliance with the code.

Consequences of non-compliance

Canada reserves the right to take appropriate actions, including but not limited to seeking more information, deeming a bid non-responsive, terminating the contract for default, setting aside the standing offer, and suspending or cancelling the supply arrangement. The code that was in effect at the time of contract signing continues to apply to that contract.

Common questions

Where did the code come from?

It was first announced as part of the 2006 Federal Accountability Act, first published in September 2007, and has been revised in September 2012, November 2014, August 2021 and May 2023. PSPC develops and maintains updates in consultation with Treasury Board Secretariat.

Does the code apply to subcontractors?

Yes — the code applies to vendors and their sub-contractors, so primes are on the hook for flow-down compliance within their supply chains.

Related definitions

Supplier suspension and debarment · Procurement integrity declaration · Bid rigging