Annexes for Chapter 2 - Defining the requirement and requisition receipt

Annex 2.1: Requisition review

Effective date: 2023-03-30

1. Has the requisition been properly directed or allocated to the appropriate office?
2. Has the current version of the requisition form been used? (If the previous version is used, then the proper security certification must be included.)
3. Is the requisition authorized properly, and does it contain the mandatory signatures in all signature blocks on the requisition? The client must certify that:
   1. pursuant to subsection 32(1) of the Financial Administration Act (FAA), funds are available;
   2. the requisition is approved, the necessary approvals have been obtained, and the client requests Public Works and Government Services Canada (PWGSC) to acquire and provide the goods and/or services, including construction, described; and
   3. the requisition, including any attached Security Requirements Check List (SRCL), the Statement of Work as well as any associated security guides/documents, including the security clauses that have already been provided to the client by the Contract Security Program (CSP), accurately details the security provisions of the requirement.
      Note: Requisitions received via e-Purchasing electronic interface are deemed to have been properly authorized with all signatures pursuant to the Financial Administration Act (FAA).
4. Does the estimated funding seem adequate?
5. Are the destination/consignee codes specified?
6. Have environmental performance considerations been addressed?
7. Is this requirement subject to the provisions of a Comprehensive Land Claims Agreement (see 9.35 Comprehensive Land Claims Agreements (CLCAs))?
8. Are invoicing instructions provided?
9. Are the financial codes identified?
10. Has the client indicated whether the requisition includes security provisions and whether a Security Requirements Check List (SRCL) is required? If no SRCL is required but security provisions are included, this must be explained.
11. Is there support for a sole source or no-substitute request? Has the client provided responses to Annex 3.1: Treasury Board questions for sole source?
12. Are delivery lead times and schedules realistic, or will special action be required to meet delivery objectives?
13. What could be the consequences resulting from a late delivery, and is there a need for liquidated damages provisions or other performance incentives?
14. Is the good or service adequately defined in the requisition, attached technical documentation or statement of work?
15. Have appropriate standards, specifications or purchase descriptions been included? If not, can an existing one be used; or
    1. is there a need for the development of a new standard, specification or purchase description?
    2. is the NATO Stock Number or the Goods and Services Identification Number (GSIN) of the products shown?
       Note: Although clients must detail the GSIN in the requisition, due to trade agreement implications, the contracting officer must ensure the GSIN is accurate as per the commodity codes published on the Buy and Sell site.
16. Is a design change/deviation procedure specified?
17. Is the extent of required product quality management and assurance specified?
18. Is the inspection or quality assurance authority specified?
19. Does the requisition or attachments contain any clauses or conditions that conflict with any PWGSC or government contracting policies and procedures (i.e., Standard Acquisition Clauses and Conditions Manual (SACC) and Supply Manual)?
20. Does the nature of the work include work to Canadian specifications?
21. Does the requisition contain any form of predefined types of pricing basis?
22. Are evaluation criteria specified and are the mandatory requirements clear?
23. Is special production tooling or special test equipment required?
24. Is government-furnished equipment or government-supplied materiel specified?
25. Are there unrestricted rights to the use of technical data or are royalty payments involved?
26. Is a trade-in specified?
27. If radio-transmitting equipment must be acquired, has the client obtained radio frequency equipment clearance from Industry Canada? Are there other special considerations of a similar nature?
28. If there are multiple items on the requisition, should any of these items be grouped together, or put in a part or extract file?
29. Could repetitive items be bought on an annual basis through standing offers, supply arrangements, phased delivery, task authorization, contracts with a call-up feature, or be included as contract options for additional quantities?
30. Are items required available on a standing offer or a supply arrangement (or a mandatory standing offer)?
31. Has the client department included instructions concerning the treatment of any intellectual property that may result from the procurement?
32. Has the client department claimed and substantiated exemption from taxes or duties, by referring to a certificate of exemption, or remission or drawback order in council?
33. Are controlled goods identified?
34. Has the client department identified the requirement as a "defence contract" as defined in the Defence Production Act
35. Is the GSIN shown and accurate?
36. Is the block "Current Funding" completed? Does it include the Goods and Services Tax or the Harmonized Sales Tax?
37. Does the requirement involve contractor's access to personal records?
38. Has the procurement been set aside under the Procurement Strategy for Aboriginal Business?
39. Are option/extension period(s) specified/needed?
40. Is the sole source directed to a former public servant?
41. Is this procurement a renewal of an existing contractual arrangement for the same services, or have the services been procured before? If yes:
    1. Who is the incumbent contractor?
    2. What is the previous contract number?
    3. When does it expire?
    4. Was it procured by PWGSC or the client?
    5. Did the previous contract have special pricing or terms and conditions?

Annex 2.2: Green procurement: Environmental factors and evaluation indicators

Effective date: 2023-09-07

Client departments, with the assistance of Public Works and Government Services Canada (PWGSC), are responsible for all four stages of the procurement process, from planning and acquisition through use and disposal. The following lists are an example of aspects to be considered:

1. Environmental Factors and Related Cost Elements
   Examples of environmental factors that should be taken into consideration in assessing value for money are provided below. These are expressed in terms of cost elements that client departments may take into consideration in the evaluation of bids. These include but are not limited to:
   1. Life Cycle Cost (LCC) Considerations: A LCC analysis may be required as part of the procurement process, to account for elements other than the upfront capital investment, such as:
      1. operation costs, such as energy or water consumed by the good over its life;
      2. indirect costs. For example, less energy efficient information technology equipment will produce more heat causing the building's air conditioning system to work harder, and increased electricity costs;
      3. administrative costs, such as complying to the Workplace Hazardous Materials Information System (WHMIS);
      4. investing up front to save costs later, such as specifying higher levels of insulation where the extra expenditure can be recovered from lower energy costs;
      5. costs of disposal arrangements.
   2. Other Environmental Considerations:
      1. use of refurbished parts or products, where possible;
      2. recyclability: this is thought to be the key since purchasers can create markets for their own waste, such as paper, toner cartridges, etc., through the transformation and sale of products containing recycled materials;
      3. establishing minimum environmental performance standards for commodities where there is a sufficient supplier base to support competition;
      4. where the supplier base is limited, include incentives for meeting extra environmental performance criteria; and
      5. use of contractual terms, to define environmental obligations, such as packaging take-back, use of certified recyclers for e-waste.
2. Environmental Evaluation Indicators
   Examples of indicators that should be examined to develop evaluation criteria are as follows:
   1. Environmental Certification
      1. Has the good/service been certified through an independent program, such as the Environmental Choice Program or Energy Star?
      2. Have studies of the environmental attributes of the good/service been completed?
      3. Does the good/service have a certified Environmental Product Declaration (EPD) such as Canadian Standards Association (CSA) Group, Underwriters Laboratories of Canada (UL Solutions) or another accredited certification body?
   2. Energy and Resource Efficiency
      1. Do you purchase used, remanufactured, rebuilt or refurbished goods and/or materials?
      2. Does this good make efficient use of resources and energy throughout its life cycle?
      3. Does this good reduce waste?
      4. Suppliers should be instructed to indicate if the good has any energy, water or fuel saving features, such as Power Down Mode.
      5. Are there measures to extend the useful life of the good; for example, re-use, refill, recharge, recondition?
   3. Recycled Content
      1. Does the good include post-consumer recycled content?
      2. What type and what percentage are recycled materials?
   4. Hazardous Replacement
      1. Does the supplier offer a non-hazardous replacement or alternative for this good?
      2. Does the good require Safety Data Sheets (SDS)?
   5. Performance Testing
      1. Is it possible to test the good/service, prior to purchase?
      2. Does the good meet the performance specifications?
      3. Is there any documented past performance? (For example, annual reports, environmental performance reports).
   6. Packaging
      1. Was the Standard language for environmentally preferable packaging (see Annex 2.7) included in the solicitation?
      2. Is packaging reduced to the bare minimum required to ensure that the good is delivered in perfect working condition?
      3. Can the good be acquired in bulk or concentrated form?
      4. Is the packaging reusable by the client, returnable to the supplier or recyclable at the delivery location(s)?
      5. Does the packaging material contain post-consumer recycled materials?
      6. Does the packaging eliminate or minimize use of single-use plastics?
   7. On Site Waste Management
      1. During the project, will all waste be source separated on site and recycled?
      2. Request information and reward environmentally sound stewardship and use of certified haulers/sites.
      3. Is the good or service designed to minimize waste (for example, catering service using dishes that are biodegradable or made of porcelain or glass rather than Styrofoam)?
   8. Return for Disassembly and Recycling
      1. Does the good include a manufacturer return for recycling policy?
      2. Can the good be recycled in the end-users geographic area?
      3. Will consumables (such as toner cartridges) be accepted for recycling?
      4. Is the good easily disassembled?
   9. Warranties
      1. What is the expected useful life span of the good?
      2. How long is the warranty, and should you purchase an extended warranty?
   10. Maintenance
       1. Is the good designed for easy maintenance and repair?
       2. Are maintenance and replacement parts readily available and reasonably priced?
       3. Is the good easy and cost effective to upgrade?
   11. Environmental Attributes of the Supplier
       1. Does the supplier have a certification or registration (for example, ISO 14001 registration)?
       2. Has the supplier received any regulatory environmental violations within the past five years?
       3. Is the supplier participating in a greenhouse gas (GHG) emission target-setting, reduction and disclosure program, such as the Net-Zero Challenge or equivalent?

Annex 2.3: List of Public Works and Government Services Canada allocations units

Effective date: 2024-12-13

The door number of the National Capital Region (NCR) Centralized Allocation Module office has been changed and the fax number where requisition forms (9200) were received has been deleted. All requests must now be sent by email to: RCNAttributionsCentralisees.NCRCentralAllocations@tpsgc-pwgsc.gc.ca.

Annex 2.4: Characteristics of Acquisitions Program procurement complexity levels

Effective date: 2014-09-25

1. Complexity Level 1
   Complexity Level 1 Procurements include or involve one or more of the following and do not include or involve any of the criteria of Complexity Levels 2, 3, 4 and 5.
   • A call-up against a standing offer;
   • A commercially available good that is readily available in the marketplace, which may include manufacturer-supplied customizable options. Includes Commercial Off-The-Shelf (COTS) or Military Off-The-Shelf (MOTS);
   • A common service that is readily available in the marketplace, which may include supplier customized options;
   • Procurement methodologies that are tried and proven using existing conventions;
   • Departmental Standard Procurement Templates or legally approved templates;
   • Contractor selection methodology that is based on price and delivery alone, or where all criteria determining the successful bidder are objective (e.g. grid) and do not require subjective judgement.
2. Complexity Level 2
   Complexity Level 2 Procurements include or involve one or more of the following and do not include or involve any of the criteria of Complexity Levels 3, 4 and 5.
   • Government-specified performance requirements to commercially available goods;
   • A requirement which uses existing technology/processes to achieve an innovative solution;
   • Services with subjective results (e.g. consultations, recommendations);
   • Departmental Standard or Sector procurement templates which have been modified, that introduce new custom clause(s), or that use terms and conditions other than those in the Standard Acquisition Clauses and Conditions (SACC) Manual;
   • One or more evaluation criteria to determine the successful bidder that require subjective judgment;
   • Industrial Regional Benefits (IRBs) and/or Value Propositions;
   • Vendor pre-qualification (includes establishment of Supply Arrangements);
   • Advance payments.
3. Complexity Level 3
   Complexity Level 3 Procurements include or involve one or more of the following and do not include or involve any of the criteria of Complexity Levels 4 and 5.
   • A requirement which uses new, or a combination of new and existing, technology/processes to achieve an innovative solution and may be developmental in nature;
   • A requirement and/or procurement that is highly unpredictable due to a high level of uncertainty;
   • Untested procurement strategy.
4. Complexity Level 4
   Complexity Level 4 Procurements involve transformational requirements that are enterprise-wide (across government) and include or involve one or more of the following elements:
   • High level of uncertainty;
   • May involve partnerships with clients and multiple stakeholders within various federal government departments, where decision-making is shared;
   • Contract administration is detailed and extensive and its success is unpredictable;
   • More than one tier of government (i.e. federal, provincial, municipal) or multiple clients/ stakeholders with decision-making authority.
   Complexity Level 4 Procurements do not include or involve any of the criteria of Complexity Level 5.
5. Complexity Level 5
   Complexity Level 5 Procurements involve transformational requirements that affect public policy or culture (external to government) and include or involve one or more of the following elements:
   • High level of uncertainty;
   • Partnerships with clients, multiple stakeholders (internal and external to the federal government) and elected officials, to reshape public policy or introduce new public policies;
   • Decision making is shared;
   • Contract administration is detailed, extensive and highly unpredictable;
   • Ultimate success is determined by the public at large.

Annex 2.5: Entering complexity code into the Automated Buyer Environment

Effective date: 2023-03-30

This section has been removed in support of procurement modernization and the ongoing transition to CanadaBuys.

For references purposes only, Annex 2.5 is available in the Supply Manual archive (accessible only on the Government of Canada network), Version 2022-3.

Annex 2.6: Accessible procurement: Factors and considerations

Effective date: 2025-04-30

Client departments, with the assistance of Public Works and Government Services Canada (PWGSC), are responsible for all four stages of the procurement process, from planning and acquisition through use and disposal. The following lists are an example of aspects to be considered:

1. Accessibility factors and related cost elements
   Examples of accessibility factors that should be taken into consideration in assessing best value are provided below. These are expressed in terms of cost elements that client departments may take into consideration in the evaluation of bids. These include but are not limited to:
   1. Investing up front to save costs later, such as procuring goods and services that have flexibility built in and are easily adaptable to be the most accessible for the widest range of end-users;
   2. Establishing performance standards for commodities where there is a sufficient supplier base to support competition;
   3. Where supplier base is limited, include incentives for meeting extra accessibility performance criteria;
   4. Use of contractual terms, to define accessibility obligations, such as including mandatory accessibility criteria or standards.
   5. For further guidance on how to assess and integrate accessibility when defining business needs, developing requirements, issuing a solicitation process and managing deliverables, consult:
      1. the Guide to Considering Accessibility When Procuring Goods and Services available on the Office of Public Service Accessibility webpage (accessible only on the Government of Canada network); and
      2. the Guide for Including Accessibility in Information and Communication Technology (ICT) Related Procurement available on the Digital Accessibility Toolkit.
2. Accessibility evaluation indicators
   Examples of indicators that should be examined to develop evaluation criteria are as follows:
   1. Market capacity
      Does market capacity exist to support the inclusion of mandatory accessibility criteria in the procurement?
   2. Standing Offers/Supply Arrangements
      Have procurement instruments been updated to incorporate technical specifications related to accessibility?
   3. Performance testing
      1. Would it be useful to have a prototype or product demonstration to validate accessibility features?
      2. Does a Voluntary Product Accessibility Template exist for the product to demonstrate accessibility?
      3. Is it possible to test the good/service, prior to purchase?
      4. How will suppliers demonstrate the accessibility of their good or service compliance?
   4. Adaptability
      1. Is flexibility built into the design so the good can easily be modified or adapted to meet accessibility needs?
      2. Are there accessibility add-ons that can be purchased to enhance the accessibility of the good or service being procured?
   5. Accessibility standards
      1. Do the good(s) or service(s) comply with an industry standard for accessibility? Have the standards been implemented?
      2. Will accessibility features be the default setting for the good(s) or service(s)?
   6. Packaging
      1. Does packaging take into account accessibility (e.g. easy to open)?
      2. Are instructions for using the product/technology clear and easy to follow, and available in accessible formats?
   7. Maintenance
      1. Is the good designed for easy maintenance and repair of accessibility features?
      2. Is the good easy and cost effective for accessibility add-ons or upgrades?
      3. Does the supplier provide accessible customer service?

Annex 2.7: Standard language for environmentally preferable packaging

Effective date: 2023-09-07

In order to meet our federal commitments to a more sustainable approach to producing, using and managing plastics, including reducing plastic waste and marine litter, PWGSC is taking concrete steps to address packaging waste in procurement.

For the procurement of goods that come in packaging, contracting officers must include standard language on environmentally preferable packaging. Please refer to the table below to select the appropriate options to integrate into your procurement.

Option 1: Mandatory requirements language

This is the recommended option. Use this option when products are delivered in commercially available packaging. For implementation questions, see Frequently asked questions (FAQ) regarding standard language (accessible only on the Government of Canada network).
 

Option 2: Optional requirements language

Use Option 2 for requirements where:

• The delivered products require specialized packaging; 
• Products are to be delivered in an area with limited recycling options; or
• Adding a requirement for environmentally preferable packaging could be a major barrier to adequate supplier participation, to accessibility for persons with disabilities, or a risk to health, safety or national security. 

For implementation questions, see Frequently asked questions (FAQ) regarding standard language (accessible only on the Government of Canada network).

*Excluded Material

Environmentally preferable material alternatives for packaging tape are not widely available. As a result, packaging tape is excluded from the environmentally preferable packaging specifications until the market has progressed and studies become available to determine otherwise.

Annex 2.8 - Anti-forced labour requirements

Effective date: 2024-12-13

Purpose

The purpose of this annex is to provide the consolidated and most recent overview and background related to the anti-forced labour requirements for goods and services contracts, standing offers and supply arrangements. For the up to date versions of the clauses, please refer to the Standard Contract Clause Inventory or the CMI Word Add-in tool.

Background

As outlined in PN-146, the Canada-United States-Mexico Agreement (CUSMA) entered into force on July 1, 2020. While the Government Procurement chapter of this agreement does not apply to Canada, CUSMA Article 23.6.1 set out in the Chapter on Labour applies to all Parties to CUSMA, including Canada. The Parties are required to prohibit the importation of goods produced, in whole or in part, by forced labour.

This international obligation was implemented into Canadian domestic law through amendments to the Customs Tariff and the Customs Tariff - Schedule which took effect on July 1, 2020. Sub-section 136(1) of the Customs Tariff and tariff item 9897.00.00 of the Customs Tariff - Schedule expressly prohibit the importation into Canada of goods mined, manufactured or produced wholly or in part by forced or compulsory labour, including forced or compulsory child labour (forced labour prohibition).

Designated officers at the Canada Border Services Agency (CBSA) are responsible for making tariff classification determinations that establish whether goods imported into Canada are prohibited from entering Canada under the forced labour prohibition. These determinations are made at the Canadian border as outlined in CBSA Memorandum D9-1-6 - Goods manufactured or produced by prison or forced labour. The designated CBSA officers identify and intercept shipments suspected of containing goods produced by forced labour. CBSA enforcement actions are supported by intelligence provided by Employment and Social Development Canada (ESDC), which conducts research on potentially problematic supply chains.

The United States (US) Customs and Border Protection Agency (CBP), under the US Trade Facilitation and Trade Enforcement Act (TFTEA) of 2015, issues Withhold Release Orders (WROs) when goods are reasonably believed to have been made by forced labour. CBP also issues Findings when it has information that conclusively demonstrates that merchandise is produced by forced labour.

In September 2019, the Government of Canada launched a National Strategy to Combat Human Trafficking (2019-2024). The National Strategy includes a commitment for PWGSC to address human trafficking and forced labour in government federal procurement. As the Government of Canada’s procurement authority, PWGSC is committed to upholding this commitment and ensuring that procurements are only conducted with suppliers that maintain supply chains free of human trafficking and forced labour.

There is a risk that goods being procured by Canada may be prohibited from import into the country because they have been produced wholly or in part by forced labour. To that end, on November 4, 2021, a set of new clauses to be used in goods contracts were put in place to allow Canada to terminate a contract if a good has been produced in whole or in part by forced labour or human trafficking. On November 20, 2023, new clauses were introduced to be used by contracting officers in all new Standing Offers and Supply Arrangements. These enable Canada to set aside a Standing Offer or suspend or cancel a Supply Arrangement if there are reasonable grounds to believe that offered goods or services have been produced by forced labour. On December 13, 2024, the anti-forced labour requirements were expanded to include new procurement clauses to be used in services, research and development, and architecture and engineering contracts to allow Canada to terminate a contract if the Work has been produced in whole or in part by forced labour.

Summary

Contracting officers should note the following for goods contracts:

New obligation on the contractor to not deliver or sell goods to Canada manufactured wholly or in part by forced labour

As per Contract Clause 1: The Contractor represents and warrants that the Work is not mined, manufactured or produced wholly or in part by forced labour. Regardless of who acts as an importer, the Contractor must not during the performance of the Contract, directly or indirectly, deliver Work to Canada or import Work into Canada the importation of which is prohibited from entry pursuant to ss. 136(1) of the Customs Tariff, and tariff item No. 9897.00.00 of the Customs Tariff - Schedule (as amended from time to time), because it is mined, manufactured or produced wholly or in part by forced labour.

The first part of this clause pertains to the time that the contract is executed, at which the Contractor represents and warrants to Canada that the Work is not mined, manufactured or produced by forced labour. The second part of the sentence imposes a future obligation not to deliver to Canada or import into Canada any Work that is mined, manufactured or produced by forced labour.

New option to terminate a contract if the CBSA has classified the goods pursuant to the Customs Tariff

As per Contract Clause 2: If a tariff classification determination is made under the Customs Act and the importation of the Work, or any part of the Work, is prohibited, the Contractor must immediately inform the Contracting Authority in writing. Canada may terminate the Contract for default in accordance with section Default by the Contractor if the Work or any part of the Work is classified under tariff item no. 9897.00.00 of the Customs Tariff - Schedule as mined, manufactured or produced wholly or in part by forced labour. If the Contractor is aware that the Work, or any part of the Work, is being or has been investigated regarding whether it is prohibited from entry pursuant to tariff item No. 9897.00.00, the Contractor must immediately inform the Contracting Authority in writing of that investigation.

This clause creates an expectation for the Contractor to notify the Contracting Authority in writing if their Work is being or has been investigated, or is prohibited from entry pursuant to tariff item No. 9897.00.00 of the Customs Tariff - Schedule.

It is important to note that a classification made by the CBSA does not automatically trigger a contract termination; rather, a classification made by CBSA gives PWGSC the option to terminate or not.

New option to terminate a contract if there are reasonable grounds to believe that the good has been produced in whole or in part with the use of forced labour

As per Contract Clause 3, Canada may terminate the Contract for default in accordance with section Default by the Contractor if it has reasonable grounds to believe the Work was mined, manufactured or produced in whole or in part by forced labour or linked to human trafficking. Reasonable grounds for making such a determination may include:

1. Findings or Withhold Release Orders issued by the United States Customs and Border Protection, under the US Trade Facilitation and Trade Enforcement Act (TFTEA) of 2015; or
2. Credible evidence from a reliable source, including but not limited to non-governmental organizations.

The purpose of this clause and its sub paragraphs is to give PWGSC the choice to terminate a contract based on these grounds.

Procedural fairness is an important element in applying the clauses. Inadequacy in this area may result in the clause, or actions taken in reliance on them, to be invalidated. PWGSC will only terminate a contract on the basis of credible information. Depending on the specific circumstances of the situation, PWGSC reserves the right to not terminate a contract when it determines that continuation is warranted, based on relevant business considerations.

New option to terminate a contract if the Contractor has been convicted of a human trafficking offence in Canada or abroad

Contract clauses 4 and 5 are related to each other as they introduce the option to terminate a contract based on a human trafficking conviction in Canada or a similar conviction in a foreign jurisdiction. Contract clause 6 identifies the parameters to determine if a conviction outside of Canada is considered to be similar.

As per Contract Clause 4, Canada may terminate the Contract for default in accordance with section Default by the Contractor if the Contractor has, in the past three years, been convicted of specified offences under the Criminal Code (see section 279) or the Immigration and Refugee Protection Act (see section 118).

As per Contract Clause 5, Canada may terminate the Contract for default if the Contractor has, in the past three years, been convicted of an offence in a jurisdiction other than Canada that, in Canada’s opinion, is similar to any of the offences identified in paragraphs 4(i) to (vii).

Guidance for making a determination under Contract Clause 5 is provided in Clause 6: For purposes of determining whether a foreign offence is similar to a listed offence as per clause 5, PWGSC’s determination will include consideration of, but not be limited to the following factors:

1. in the case of a conviction, whether the court acted within its jurisdiction;
2. whether the supplier was afforded the right to appear during the court’s proceedings or to submit to the court’s jurisdiction;
3. whether the court’s decision was obtained by fraud; or
4. whether the supplier was entitled to present to the court every defence that the supplier would have been entitled to present had the proceeding been tried in Canada.

Contractor may make representations to PWGSC before PWGSC terminates a contract

As per Contract Clause 7, Where Canada intends to terminate the Contract under this section, Canada will inform the Contractor and provide the Contractor an opportunity to make written representations before making a final decision. Written representations must be submitted within 30 days from receiving a notice of concern unless Canada establishes a different deadline.

Standing Offer and Supply Arrangement Authorities should note the following:

Standing Offer clauses:

New obligation on the Offeror to not deliver or sell goods or services or combination of goods and services to Canada manufactured wholly or in part by forced labour

As per Standing Offer clause 1: The Offeror acknowledges and agrees that the goods or services or combination of goods and services described in the Standing Offer are not mined, manufactured or produced wholly or in part by forced labour. Regardless of who acts as an importer, the Offeror must not, during the performance of a Call-up, directly or indirectly deliver goods to Canada, or import offered goods into Canada the importation of which are prohibited from entry pursuant to ss. 136(1) of the Customs Tariff, and tariff item No. 9897.00.00 of the Customs Tariff - Schedule (as amended from time to time), because they are mined, manufactured or produced wholly or in part by forced labour.

The first part of this clause pertains to the time that the Standing Offer is issued, at which time the Offeror represents and warrants to Canada that the goods or services or combination of goods and services described in the Standing Offer are not mined, manufactured or produced by forced labour. The second part of the sentence imposes a future obligation on the Offeror, during the Call-up period, not to deliver to Canada or import into Canada any goods that are mined, manufactured or produced by forced labour.

New option to set aside a Standing Offer if Canada Border Services Agency (CBSA) has classified the offered goods pursuant to the Customs Tariff

As per Standing Offer clause 2: If a tariff classification determination is made under the Customs Tariff and the importation of the goods (or any part of the goods) described in the Standing Offer is prohibited, the Offeror must immediately inform the Standing Offer Authority in writing. Canada may set aside the Standing Offer in accordance with section 2005 13 - Default by the Offeror if the goods (or any part of the goods) described in the Standing Offer are classified under tariff item no. 9897.00.00 of the Customs Tariff - Schedule as mined, manufactured or produced wholly or in part by forced labour. If the Offeror is aware that the goods (or any part of the goods) described in the Standing Offer, are being or have been investigated to determine whether they are prohibited from entry pursuant to tariff item No. 9897.00.00, the Offeror must immediately inform the Standing Offer Authority in writing of that investigation.

This clause creates an expectation for the Offeror to notify the Standing Offer Authority in writing if their goods offered are being or have been investigated, or are prohibited from entry pursuant to tariff item No. 9897.00.00 of the Customs Tariff - Schedule.

It is important to note that a classification made by CBSA does not automatically trigger a Standing Offer set aside; rather, a classification made by CBSA gives PWGSC the option to set aside a Standing Offer or not.

New option to set aside a Standing Offer if there are reasonable grounds to believe that the offered goods or services or combination of goods and services have been produced in whole or in part with the use of forced labour

As per Standing Offer clause 3: Canada may set aside the Standing Offer in accordance with section 2005 13 - Default by the Offeror if it has reasonable grounds to believe the goods or services or combination of goods and services described in the Standing Offer are mined, manufactured or produced in whole or in part by forced labour or linked to human trafficking. Reasonable grounds for making such a determination may include:

1. Findings or Withhold Release Orders issued by the United States Customs and Border Protection, under the US Trade Facilitation and Trade Enforcement Act (TFTEA) of 2015; or
2. Credible evidence from a reliable source, including but not limited to non-governmental organizations.

The purpose of this clause and its sub paragraphs is to give PWGSC the choice to set aside a Standing Offer based on these grounds.

Procedural fairness is an important element in applying the clauses. Inadequacy in this area may result in the clause, or actions taken in reliance on them, to be invalidated. PWGSC will only set aside a Standing Offer on the basis of credible information. Depending on the specific circumstances of the situation, PWGSC reserves the right to not set aside a Standing Offer when it determines that continuation is warranted, based on relevant business considerations.

New option to set aside a Standing Offer if the Offeror has been convicted of a human trafficking offence in Canada or abroad

Standing Offer clauses 4 and 5 are related to each other as they introduce the option to set aside a Standing Offer based on a human trafficking conviction in Canada or a similar conviction in a foreign jurisdiction. Standing Offer clause 6 identifies the parameters to determine if a conviction outside of Canada is considered to be similar.

As per Standing Offer clause 4: Canada may set aside the Standing Offer in accordance with section 2005 13 - Default by the Offeror if the Offeror has, in the past three years, been convicted of specified offences under the Criminal Code (see section 279) or the Immigration and Refugee Protection Act (see section 118).

As per Standing Offer clause 5: Canada may set aside the Standing Offer if the Offeror has, in the past three years, been convicted of an offence in a jurisdiction other than Canada that, in Canada’s opinion, is similar to any of the offences identified in paragraphs 4(i) to (vii).

Guidance for making a determination under Standing Offer clause 5 is provided in clause 6: For purposes of determining whether a foreign offence is similar to a listed offence as per clause 5, PWGSC’s determination will include consideration of, but not be limited to the following factors:

1. in the case of a conviction, whether the court acted within its jurisdiction;
2. whether the Offeror was afforded the right to appear during the court’s proceedings or to submit to the court’s jurisdiction;
3. whether the court’s decision was obtained by fraud; or
4. whether the Offeror was entitled to present to the court every defence that the Offeror would have been entitled to present had the proceeding been tried in Canada.

Offeror may make representations to PWGSC before PWGSC sets aside a Standing Offer

As per Standing Offer clause 7: Where Canada intends to set aside the Standing Offer under this section, Canada will inform the Offeror and may provide the Offeror an opportunity to make written representations before making a final decision. Written representations must be submitted within 30 days from receiving a notice of concern unless Canada establishes a different deadline.

Supply arrangements clauses:

New option to suspend or cancel a Supply Arrangement if the Supplier has been convicted of a human trafficking offence in Canada or abroad

Supply Arrangement clauses 1 and 2 are related to each other as they introduce the option to suspend or cancel a Supply Arrangement based on a human trafficking conviction in Canada or a similar conviction in a foreign jurisdiction. Supply Arrangement clause 3 identifies the parameters to determine if a conviction outside of Canada is considered to be similar.

As per Supply Arrangement clause 1, Canada may suspend or cancel a Supply Arrangement in accordance with section 2020 09 - Suspension or cancellation of qualification by Canada if the Supplier has, in the past three years, been convicted of specified offences under the Criminal Code (see section 279) or the Immigration and Refugee Protection Act (see section 118).

As per Supply Arrangement clause 2, Canada may suspend or cancel a Supply Arrangement if the Supplier has, in the past three years, been convicted of an offence in a jurisdiction other than Canada that, in Canada’s opinion, is similar to any of the offences identified in paragraphs 1(i) to (vii).

Guidance for making a determination under Supply Arrangement clause 2 is provided in clause 3: For purposes of determining whether a foreign offence is similar to a listed offence as per clause 2, PWGSC’s determination will include consideration of, but not be limited to the following factors:

1. in the case of a conviction, whether the court acted within its jurisdiction;
2. whether the supplier was afforded the right to appear during the court’s proceedings or to submit to the court’s jurisdiction;
3. whether the court’s decision was obtained by fraud; or
4. whether the supplier was entitled to present to the court every defence that the supplier would have been entitled to present had the proceeding been tried in Canada.

Supplier may make representations to PWGSC before PWGSC suspends or cancels a Supply Arrangement

As per Supply Arrangement clause 4: Where Canada intends to suspend or cancel the Supply Arrangement under this section, Canada will inform the Supplier and may provide the Supplier an opportunity to make written representations before making a final decision. Written representations must be submitted within 30 days from receiving a notice of concern unless Canada establishes a different deadline.

Contracting officers should note the following for services contracts:

The anti-forced labour requirements have been expanded to the services contracts, including research and development and architecture and engineering.