Guide to Mitigating Conflicts of Interest in Procurement

Date modified: 2025-02-28

More information

Directive:

Hierarchy
View complete hierarchy
Print-friendly XML
Expand all Collapse all

1. Who is this guide for?

This guide is for any federal public servant who is or may become involved in the procurement of goods, services, and/or construction as part of their responsibilities in the public service. This guide should help you:

  • identify conflicts of interest and understand your responsibilities in managing these throughout the procurement process
  • find practical advice on how to meet conflict of interest obligations when involved in the procurement process

2. What are conflicts of interest?

Integrity is the cornerstone of good governance and democracy. By upholding the highest ethical standards, public servants maintain and enhance public confidence in an honest, fair and impartial federal public sector. Conflicts of interest can arise for public servants and external individuals, such as consultants and suppliers. Both groups are required to act with integrity in their work and dealings with the Government of Canada.

The Policy on People Management defines a conflict of interest as a situation, whether real, apparent or potential, where a public servantFootnote 1 has private interests that could influence the performance of their official duties and responsibilities or where a public servant uses their office for personal gain. The policy defines three types of conflicts of interest:

  • real: a conflict of interest that exists at the present time
  • apparent: a situation that could be perceived as a conflict of interest by a reasonable observer, whether it is the case or not
  • potential: a conflict of interest that could reasonably be foreseen to happen in the future

Throughout this guide, the term “conflict of interest” refers to all three types unless otherwise specified. An apparent or potential conflict of interest can be just as significant as a real one. The Directive on Conflict of Interest provides direction to minimize the risks associated with conflict of interest situations in order to uphold the values and ethics of the public sector and the public interest.

Note: For examples of real, apparent, and potential conflicts of interest, consult Appendix A, which will help illustrate the nuances between the three types of conflicts and support you in understanding the broad range of situations that conflicts of interest can apply to.

The Conflict of Interest Act sets out conflict of interest and post-employment rules for public office holders, including ministers, members of ministerial staff, and Governor in Council appointees (this includes deputy ministers, associate deputy ministers, agency heads, directors, and heads of Crown corporations). The act requires public office holders to arrange their affairs in a way that prevents conflicts of interest,Footnote 2 including in decision-making and when exercising influence. The Conflict of Interest and Ethics Commissioner administers and enforces the Conflict of Interest Act, and their office provides confidential advice and direction about what a public office holder needs to do to comply with the rules, tailored to their individual situation.Footnote 3

The Values and Ethics Code for the Public Sector outlines the values and expected behaviours that guide federal public servants in all activities related to their professional duties. Stewardship and integrity are the two values that are most closely related to conflict of interest. However, respect for democracy, respect for people and excellence are equally important public sector values to uphold.

Your organization’s code of conduct should also be consulted for further information about conflicts of interest that apply to your organization’s specific mandate. Ultimately, our actions as public servants must stand up to public scrutiny, support trust in government and demonstrate responsible stewardship of public funds.

Remember that conflicts of interest in federal procurement are not limited to public servants. Suppliers and other third parties can also face real, apparent, or potential conflicts of interest. Public servants need to be aware of these possibilities and take reasonable efforts to identify and guard against them.  

2.1 Conflicts of interest in procurement and related responsibilities

Federal government procurements are subject to laws, regulations, trade agreements and Treasury Board policies that require procurements be conducted fairly, openly and transparently and be managed in a manner that is objective, free of bias and gives no special treatment to any particular supplier. This helps prevent unfair advantagesFootnote 4 that could compromise the integrity of the procurement process.

A conflict of interest in procurement occurs when anyone involved in the procurement process has a personal interest (for example, financial or professional) that could influence their decisions, actions or result in preferential treatment. Conflicts of interest in procurement need to be identified and properly addressed to support the public’s trust that federal procurements are conducted responsibly and impartially.

Effective management of conflicts of interest can encourage suppliers to participate in procurements, as they can be confident that they will be treated fairly and there will be genuine competition. Making sure that procurement processes are free from undue influence helps maintain fairness and contributes to meeting Canada’s trade agreement obligations.

The Directive on the Management of Procurement (DMP) establishes important ethical responsibilities for business owners (individuals responsible for defining the intended outcomes of a procurement and for achieving those outcomes) and contracting authorities (those who manage the procurement process and provide strategic advice to business owners). Namely, they must adhere to the Values and Ethics Code for the Public Sector and the Directive on Conflict of Interest at all times during the procurement process. This includes when engaging with suppliers, evaluating bids, and in awarding and managing contracts (DMP section 4.2.2). Additionally, business owners are required to:

  • develop unbiased statements of work and technical evaluation criteria (DMP section 4.2.3.4)
  • adhere to mandatory procedures when procuring professional services with a contract value over $40,000 (DMP Appendix F) such as:
    • documenting their due diligence by providing the contracting authority with a signed confirmation acknowledging important responsibilities, including that they do not have any real, apparent or potential conflicts of interest, and that should any develop they will immediately report it as required by the Directive on Conflict of Interest
    • disclose wrongdoing (DMP section 4.17)

Under the DMP, contracting authorities are also responsible for ensuring the integrity of the procurement process by monitoring, preventing, identifying and reporting any conflicts of interest that may exist and taking appropriate mitigating action as required (DMP section 4.3.2) and in alignment with the Directive on Conflict of Interest.

Public Service and Procurement Canada’s Code of Conduct for Procurement needs to be incorporated into all government procurements. It outlines expectations and obligations, including those related to conflicts of interest for suppliers and their subcontractors who respond to bid solicitations and/or provide goods and services to Canada.

3. Identify conflicts of interest

3.1 Who may be at risk of a conflict of interest related to a procurement?

The following are examples of those who may be involved in the procurement process and who may therefore be at risk of being in a conflict of interest:

Key roles directly involved in the procurement process

  • Business owners: As outlined in the Policy on the Planning and Management of Investments (the policy), a business owner is the individual responsible for the business or program area for which the project, procurement or program is established. The business owner is responsible for defining the required capabilities, intended business outcomes, and benefits of a project, procurement or program at its outset, achieving the business outcomes and benefits following implementation. The Manager’s Guide: Key Considerations When Procuring Professional Services provides more information about key considerations and business owner roles and responsibilities when procuring professional services
  • Contracting authorities: Contracting authorities are defined in the policy as a person who has delegated authority to enter into a contract on behalf of a department or agency
  • Any individual with a role specifically cited in a contract (such as the technical or project authorities)
  • Individuals, including third parties, involved in developing the requirements or specifications of a procurement (such as the statement of work or bid evaluation criteria)
  • Individuals who participate in the evaluation of bids or proposals
  • Individuals with certification authority: Defined in the Directive on Delegation of Spending and Financial Authorities as the authority, according to section 34 of the Financial Administration Act, to certify contract performance and price, entitlement or eligibility of the payment

Governance and oversight roles

  • Senior officials overseeing a procurement
  • Public office holders, as defined in the Conflict of Interest Act, which includes ministers, ministerial staff and Governor in Council appointees (such as deputy heads) acting in relation to a procurement (either through direct involvement, such as approving a contract, or through influence)
  • Members of governance bodies that have a role in approving or helping to shape a procurement

Suppliers

  • Suppliers (also known as vendors or contractors), including prime contractors, subcontractors and intermediaries
  • Former public servants and former public office holders

This list is not exhaustive and is provided for illustrative purposes.

3.2 Understanding your responsibilities

As a public servant, you need to be aware of and ensure compliance with the requirements in the Values and Ethics Code for the Public Sector and Treasury Board policies and directives outlined in section 1, and the Conflict of Interest Act, which applies to senior leadership in the public service (for example, deputy ministers, associate deputy ministers and agency heads).

As outlined in section 7.1 of the Directive on Conflict of Interest, an individual who has not complied with this directive’s requirements may be subject to disciplinary measures, up to and including termination of employment.

3.3 How to identify conflicts of interest

Anyone can find themselves in a conflict of interest at any time. So, it is important to properly identify conflicts of interest and monitor for these conflicts throughout the procurement process. Examples of situations and/or practices that could result in a conflict of interest in procurement include but are not limited to:

Personal and insider-related conflicts of interest

  • Personal relationships: An individual involved in the procurement has a close personal relationship with a supplier, which might lead to favouritism
  • Family ties: A family member of a public servant involved in the procurement owns, has a significant interest in, or is employed by a supplier involved in the procurement (or a partner, parent company and/or subcontractor of supplier)
  • Inside information: A public servant or contracted individual/supplier involved in the procurement has access to confidential information about upcoming procurements and shares it with suppliers or uses it to benefit their own interests (for example, their personal, economic and/or business interests)

Financial and employment-related conflicts of interest and incentives

  • Financial interests: An individual involved in the procurement, or a member of their family or a close associate, has a financial stake in a supplier involved in the procurement (or a partner, parent company and/or subcontractor of the supplier). This could include stock ownership, business interests, or other financial ties
  • Employment history: A current or former public servant involved in the procurement works for, or previously worked for, a supplier being considered for a government contract, which could create a high risk for bias or undue influence
  • Post-employment: A former public servant is employed by a supplier after leaving their position, which could raise questions about influence over procurement decisions
  • Dual roles: A dual role in procurement refers to a situation where an individual holds two distinct positions or responsibilities within the procurement process or related functions. This can lead to potential conflicts of interest and reduced objectivity. Appropriate segregation of duties for management and oversight of spending and financial authorities is outlined in section 4.1.11 of the Directive on Delegation of Spending and Financial Authorities
  • Gifts, hospitality and entertainment: Suppliers offer gifts, hospitality, entertainment, or other incentives to public servants or contracted individuals/suppliers involved in the procurement, which might influence their decision-making

Public servants involved in procurement must always examine their own situation to ensure that they are not in a conflict of interest. If they are unsure, they are encouraged to discuss it with their manager, contracting authority and/or the office responsible for values and ethics in their organization.

The specific steps to identify conflicts of interest can vary depending on the circumstances. Various actions may need to be taken, in alignment with the legal and policy requirements outlined in section 1 of this guide. These can include but are not limited to:

  • Ensure that conflict of interest declarations are up to date, and consult with the contracting authority, values and ethics experts and/or the legal services unit in your organization if you have any questions, including on appropriate steps to take to mitigate conflicts of interest.
  • Seek confirmation from individuals involved in the procurement that they are not in a conflict of interest. This could be done by requiring bid evaluators, for example, to sign a conflict of interest declaration and/or a non-disclosure agreement, if deemed appropriate in consultation with your organization’s values and ethics experts and legal services unit.
  • If you suspect that a colleague, acquaintance or an industry supplier is in a conflict of interest, is acting unethically, or is unfairly benefitting from a government contract, follow the processes outlined in section 7 of this guide.

4. Report conflicts of interest

The Directive on Conflict of Interest requires government organizations to have the appropriate mechanisms in place to help individuals report conflicts of interest. It also requires, as a condition of employment, that public servants report in writing to their deputy head all outside employment and activities, assets, liabilities and interests that might give rise to a real, apparent or potential conflict of interest in relation to their official duties and responsibilities.

Inform the contracting authority right away if a conflict of interest has been identified and follow other internal conflict of interest reporting procedures that may apply. If the contracting authority becomes aware of a conflict of interest related to a procurement, they should report it in accordance with the Directive on Conflict of Interest and any conflict of interest reporting processes that are in place in their organization, including those that may be outlined in the departmental procurement management framework.

If you have a question about the Values and Ethics Code for the Public Sector or the Directive on Conflict of Interest, talk to your manager first, if possible. Then, contact either your organization’s senior official for values and ethics or the senior official responsible for conflict of interest and conflict of duties.

5. Mitigate conflicts of interest

5.1 Public servants

If an individual has a real conflict of interest, they would need to recuse themselves from situations where they can influence decisions, or from the procurement entirely. If a potential or apparent conflict of interest is identified before or during the procurement process, it may be appropriate to take mitigation measures, in consultation with your organization’s legal services unit, values and ethics experts, contracting authority, and as guided by your organization’s procurement management framework. The mitigation measures would have to take into consideration the risks; the value, complexity and sensitivity of the procurement; and the level of influence of the individual.

Mitigation measures taken by public servants involved in the procurement process could include, but are not limited to, the following:

  • Establish safeguards or “ethical walls”Footnote 5 to ensure that individuals with a conflict of interest do not have access to information concerning the procurement. One example of such a safeguard is identifying sensitive information and developing access controls to ensure that the individual with a conflict of interest cannot access it. Another example is re-assigning the individual to a different project or unit that has no connection to the procurement process
  • Ensure that there are multiple bid evaluators and that they are not in a conflict of interest
  • Engage a fairness monitorFootnote 6 for the procurement
  • Ensure that management with appropriate oversight is aware of the conflict of interest and that they review and sign-off on outputs from the individual
  • Monitor the procurement and have checkpoints (for example, at key milestones or through regular progress check-ins at your organization’s governance tables) to review whether it has led to an unfair advantage or disadvantage for a supplier or a personal benefit to a public servant
  • All public servants have a responsibility to refuse gifts, hospitality, or other benefits from suppliers if they may lead to a real, apparent or potential influence on the objectivity of their official duties and responsibilities, in alignment with the Directive on Conflict of Interest (sections 4.2.13 and 4.2.14). Consult your organization’s values and ethics experts about accepting any benefits from suppliers
  • Follow other mitigation measures identified by your organization’s values and ethics experts, legal services unit, and/or contracting authority

A checklist of sample questions to help public servants involved in procurement to identify, report and mitigate conflicts of interest in procurement processes can be found in Appendix B.

5.2 Suppliers

A supplier who is participating in government procurements may be in a conflict of interest when their activities or relationships could impair their ability to provide impartial services or give them an unfair competitive advantage.

Suppliers are subject to the Code of Conduct for Procurement, which outlines that by submitting a bid, suppliers warrant that no real, apparent or potential conflict of interest exists or is likely to arise in their performance of the contract. Such conflicts of interest could include situations where:

  • a supplier has a relationship with a shareholder, director, associate or close relative currently or previously employed in the public service that they are aware of, and which could create an unfair advantage for the supplier
  • a supplier has a financial interest in another company bidding for the same contract, which could lead to unfair practices such as bid-rigging
  • a supplier has preferential access to information that could give them an unfair advantage in the bidding process

The code further requires that when a supplier becomes aware of a conflict of interest, they must immediately disclose the matter to the contracting authority in writing. If suppliers or their subcontractors are unable or unwilling to comply with any requirements in the code, 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/or suspending or cancelling the supply arrangement.

Suppliers may be working in support of a procurement (such as developing technical specifications) or be working on an associated project or program (such as providing project management services). It is important to ensure that a conflict of interest does not lead to a supplier having an unfair advantage or disadvantage for current or future contracts.Footnote 7 Measures to address conflicts of interest depend on the type of conflict, risks, nature of the procurement, and the supplier’s influence. These measures can include the following:

  • require contracted bid evaluators to sign conflict of interest declarations stating that they are not in a conflict of interest prior to evaluation
  • exclude suppliers involved in the development of, or contribution to, material supporting the procurement (such as statements of work, bid evaluation criteria) from the resulting procurement process, as required by Canada’s trade agreements
  • name contracted individuals and suppliers involved in the preparation of the procurement documents in the bid solicitation and advise bidders that these individuals/suppliers are excluded from any resulting bid or contract (including as subcontractors)
  • share procurement information with all relevant suppliers at the same time to ensure equal access, as required by Canada’s trade agreements
  • ensure that any information that is relevant to the procurement process, and which an incumbent supplier may have, is shared with all suppliers
  • safeguard work and ensure that information is not shared outside the formal procurement process. This includes in informal discussions with suppliers, such as in meetings, at conferences, or at industry events
  • ensure that third parties (such as consultants) who are part of the evaluation process are disclosed to bidders
  • maintain records and rationale for decisions made throughout the solicitation process

If an unmitigated conflict of interest is identified during the procurement process and it risks the integrity of the procurement, it might be necessary to cancel and re-issue the procurement or terminate the contract, in consultation with your organization’s legal services and values and ethics experts, to ensure fairness.

A checklist of sample questions to help public servants identify and mitigate conflicts of interest related to suppliers can be found in Appendix C.

6. Monitor conflicts of interest

Procurements require ongoing monitoring throughout their life cycle to identify, report and effectively resolve conflicts of interest. This is particularly important during personnel changes (both on the government and supplier sides), sub contracting and contract amendments. Monitoring could include the following actions:

  • assess and document conflict of interest for new personnel involved in the procurement
  • ensure that suppliers and sub-contracted suppliers are aware of their contractual obligations to apply ethical standards across their supply chains through their adherence to the Code of Conduct for Procurement
  • conduct regular check-ins with the business owner at key points in the procurement process (for example, bid evaluation, contract award, project delivery)
  • maintain records and rationale for decisions made throughout contract delivery

Note that the Office of Supplier Integrity and Compliance (OSIC) helps to ensure that the government does business with ethical suppliers in Canada and abroad by administering the government-wide Ineligibility and Suspension Policy. Contracting authorities have a crucial role to play in detecting and reporting misconduct, including breaches of the Code of Conduct for Procurement. Where warranted, contracting authorities are encouraged to refer cases of founded misconduct to OSIC.

7. Report cheating in the federal government procurement process

There are various ways to report wrongdoing and cheating in addition to the conflict of interest processes outlined earlier in this guide.

The Directive on the Management of Procurement requires business owners to protect government spending from fraud, corruption, unethical business practices and collusive behaviour. This includes escalating and sharing information on potential wrongdoing regarding procurements.

Everyone in the procurement community is responsible for reporting fraud and wrongdoing by disclosing information that shows it has happened or is about to happen. The Public Servants Disclosure Protection Act (PSDPA) encourages disclosure to your manager, your departmental Senior Officer for Disclosure, or the Office of the Public Sector Integrity Commissioner of Canada.

An alternative to the PSDPA disclosure process is the Federal Contracting Fraud tip line. If you suspect that someone is cheating or is unfairly benefitting from a government contract, you can make a difference by reporting it anonymously. Contract cheating affects all Canadians and can amount to fraud or other offences. The tip line is jointly operated by the Competition Bureau, Public Services and Procurement Canada, and the Royal Canadian Mounted Police.

8. References

Appendix A: Examples of real, apparent and potential conflicts of interest in procurement

This appendix contains examples of a real, an apparent and a potential conflict of interest in procurement. Some situations fall into more than one category. For example, some conflicts of interest can be considered both apparent and potential. It’s useful to understand the different categories, but the important thing to remember is that all conflicts of interest, no matter what type, need to be reported and addressed.

Real conflict of interest

Definition: a conflict of interest that exists at the present time

Example

A department is preparing to issue a large contract for a new healthcare management system. Several major companies have bid. A senior information technology (IT) employee in the department was assigned to help evaluate the bids associated with the contract.

The employee owns stock in one of the bidding companies.

The employee’s financial interest is in conflict with their official duties. This conflict of interest undermines the fairness and integrity of the procurement process because it gives the company an unfair advantage that could lead to poor results for the department. The employee would need to disclose the conflict, and the department would need to remove them from the procurement process to ensure impartiality.

Apparent conflict of interest

Definition: a situation that could be perceived as a conflict of interest by a reasonable observer, whether it is the case or not

Example

A department is evaluating bids for a large IT services contract. One of the evaluators on the selection committee has an acquaintance who works for an IT company that has bid on the contract. The evaluator and their acquaintance occasionally meet for coffee and discuss general industry trends. They have never discussed the specific contract or any confidential information related to procurement processes.

A reasonable observer might think the evaluator’s relationship with the employee of the IT company could influence their impartiality in the selection process. Even though there is no actual conflict (because no confidential information has been shared), there is an appearance of potential bias.

To maintain transparency and public trust, the evaluator must disclose their relationship with the employee of the IT company. The department might then assign the evaluator to a different project or put in place additional oversight to mitigate any perceived bias.

Potential conflict of interest

Definition: a conflict of interest that could reasonably be foreseen to happen in the future

Example

A federal department is planning to award a contract for a new transportation infrastructure project. A senior engineer in the department interacts with a representative of an engineering company at events organized by a professional organization they both belong to. The engineering company is one of the bidders for the upcoming contract. The engineer does not have a role in preparing the bid solicitation or in reviewing bids.

If the company were to win the bid, the engineer’s contact with its employees could reasonably be foreseen to create a conflict of interest in the future. Although the engineer has no influence over the procurement process right now and is not working directly on anything to do with the bid, the situation could be perceived as a conflict if the engineer were to later be involved in overseeing the project or in related activities.

To address this potential conflict of interest, the engineer should disclose their affiliation with the company if they become aware that it has bid on a contract with the department. The department may then take steps to make sure the engineer is not involved in future activities related to the transportation infrastructure project that the company is involved in.

Appendix B: Checklist to help public servants identify and mitigate conflicts of interest in procurement

The following sample questions will help public servants involved in procurement identify, report and mitigate conflicts of interest in procurement processes.

Identifying conflicts of interest:

  •  Have you examined your personal situation to determine whether you are in a real, apparent or potential conflict of interest? If you are unsure or if you have questions:
    • Seek advice from your manager, if possible, as outlined in section A.2.2.2.2 of the Directive on Conflict of Interest
    • You may contact your organization’s senior official for values and ethics or the senior official responsible for conflict of interest and conflict of duties
  •  If you are a manager, have you discussed with your direct reports who are involved in the procurement whether they have a real, apparent or potential conflict of interest? If so, have they submitted a conflict of interest declaration?
  •  Does the contracting authority have signed confirmation from the business owner stating that they have reviewed the contract or task authorization and affirm that they have no real, apparent or potential conflict of interest?
  •  Are you aware of the values and ethics requirements as they relate to conflicts of interest in procurement? Consult the following:

Reporting conflicts of interest:

  •  If you are in a conflict of interest, have you made every effort to remove yourself from the conflict, as required by the Directive on Conflict of Interest (section A.2.2)?
  •  Have you reported in writing to your deputy head all outside employment and activities, assets, liabilities and interests that might give rise to a conflict of interest in relation to your official duties and responsibilities, as required by the Directive on Conflict of Interest (section 4.2.3)?
  •  Are you familiar with your department’s procedures for reporting conflicts of interest and have you followed these procedures? The Directive on Conflict of Interest requires government organizations to have the appropriate mechanisms in place to help individuals report conflicts of interest.
  •  If you are a business owner and are in a conflict of interest, have you immediately reported it and notified the contracting authority as required by section F.2.7.2 of the Directive on the Management of Procurement?
  •  Has management with relevant oversight been made aware of the conflict of interest?

Mitigating conflicts of interest:

  •  If you have a conflict of interest, have you made every effort to recuse yourself from conflict, as required by the Directive on Conflict of Interest (section A 2.2.2.1)?
  •  Have the following groups been consulted about mitigation measures?
    • your organization’s legal services unit? Note: Legal services cannot advise a public servant on how to mitigate their personal conflict of interest. Management or the contracting authority would need to consult legal services in these cases.
    • your organization’s values and ethics experts?
    • the contracting authority?
  •  Have you read your organization’s procurement management framework and its requirements related to integrity and conflict of interest?
  •  Have you created appropriate separation between individuals with a conflict of interest and the procurement? For example, have you considered reassigning individuals with a conflict of interest to a different project or unit that has no connection to the procurement process?
  •  Has sensitive information been identified and have access controls been put in place to keep individuals with a conflict of interest from inappropriately accessing it?
  •  Has management with the appropriate oversight been informed of the conflict of interest, and are they reviewing and signing off on outputs from the individual?
  •  Are you refusing gifts, hospitality and other benefits from suppliers if they may have an influence on your objectivity in relation to your official duties and responsibilities? For details, see the Directive on Conflict of Interest (subsections 4.2.13 and 4.2.14).
  •  Does this procurement have multiple bid evaluators who do not have conflicts of interest?
  •  Have you consulted Public Services and Procurement Canada’s Fairness Monitoring Program to determine whether integrating a fairness monitor would benefit the procurement?
  •  Are you keeping detailed records of all steps in the procurement, including the decisions being made?
  •  Are you following other mitigation measures identified by your organization’s values and ethics experts and legal services unit, and by the contracting authority?

Monitoring for conflicts of interest:

  •  Are you monitoring the procurement to help avoid:
    • giving any supplier an unfair advantage or disadvantage?
    • giving a personal benefit to any public servant involved in the procurement?
  •  Have you established checkpoints at key milestones, such as bid evaluation and contract award, to ensure that conflicts of interest are identified and mitigated?

Appendix C: Checklist to help public servants identify and mitigate conflicts of interest related to suppliers

The following sample questions will help public servants who are involved in procurement to identify and mitigate conflicts of interest when they are engaging with suppliers.

Identifying conflicts of interest:

  •  Does the supplier have a relationship with a shareholder, director, associate or close relative currently or previously employed in the public service that they are aware of, and that could create an unfair advantage for the supplier?
  •  Does the supplier have a financial interest in another company bidding for the same contract?
  •  Does the supplier have preferential access to information that could give them an unfair advantage in the bidding process?
  •  If a supplier is in a conflict of interest, have they immediately disclosed it, in writing, to the contracting authority, as required in the Code of Conduct for Procurement?
  •  Have you required bid evaluators hired under contract to sign declarations stating that they are not in a conflict of interest before the evaluation process starts?

Mitigating conflicts of interest:

  •  When suppliers disclose that any of their employees may be in a conflict of interest, are you working with the supplier to ensure that appropriate safeguards are put in place, in consultation with your organization’s legal services unit?
  •  Have you excluded suppliers that were involved in the development of, or who may contribute to, material supporting the procurement (for example, statements of work and bid evaluation criteria) from the resulting procurement process, as required by Canada’s trade agreements?
  •  Are you safeguarding work to ensure that sensitive information is not shared in informal discussions with suppliers, for example, in meetings, at conferences or at industry events?
  •  If suppliers or their subcontractors are not in compliance with requirements in the Code of Conduct for Procurement, have you consulted your organization’s procurement and legal experts about what action to take? Action could include but are not limited to seeking more information, deeming a bid non-responsive, terminating the contract for default, setting aside the standing offer, and/or suspending or cancelling the supply arrangement, as outlined in section 3 of the code.
  •  If an unmitigated conflict of interest is identified and it risks the integrity of the procurement, have you discussed with your organization’s legal services unit and values and ethics experts the possibility of cancelling, reissuing or terminating the contract?

Transparency and documentation:

  •  Are the names of contracted individuals and suppliers involved in preparing the procurement documents listed in the bid solicitation?
  •  Have you informed bidders that the contracted individuals and/or suppliers involved in preparing the procurement documents, including subcontractors, listed in the bid solicitation are excluded from any resulting bid or contract?
  •  Have you shared procurement information with all relevant suppliers at the same time to ensure equal access, as required by Canada’s trade agreements?
  •  Have you ensured that the names of third parties who are part of the evaluation process, such as consultants, have been disclosed to bidders?
  •  Have you kept proper procurement records and have you documented the rationale for decisions made throughout the solicitation process?

Disclosure of wrongdoing:

© His Majesty the King in Right of Canada, represented by the President of the Treasury Board, 2025,
ISBN: 978-0-660-76807-6

Expand all Collapse all

"Page details"

Date modified: