Government Contracts Regulations (SOR/87-402)

8 [Repealed, SOR/2023-82, s. 3]

9 [Repealed, SOR/2023-82, s. 3]

PART IISecurity

10 Where a contracting authority requires a person to give to His Majesty bid security or contract security, that security shall be dealt with in the manner set out in this Part.

11 No security deposit in the form of government guaranteed bonds with coupons attached thereto shall be accepted by a contracting authority unless all coupons that are unmatured at the time that the bonds are submitted are attached to the bonds.

12 A contracting authority shall hold any bid bond, payment bond, performance bond or non-negotiable security deposit that is received by the authority until the terms of the security are fulfilled.

• 13 (1) Where a negotiable security deposit is received by a contracting authority as bid security, the contracting authority shall hold that security deposit until it can be disposed of in accordance with subsection (2) or (3).

• (2) Where a bid is accepted and contract security is required to be provided,

  • (a) the contracting authority shall continue to hold the security deposit referred to in subsection (1) until the contract security is provided; and

  • (b) when the contract security is provided, the contracting authority shall return the security deposit referred to in subsection (1) to the person from whom it was received unless it forms part of the contract security, in which case it shall be retained as contract security.

• (3) Where a bid is rejected, or is accepted but contract security is not required, the contracting authority shall return the security deposit referred to in subsection (1) to the person from whom it was received.

14 Where a bill of exchange is received by a contracting authority as contract security or is retained by a contracting authority pursuant to paragraph 13(2)(b), the contracting authority shall immediately deposit the amount of the bill of exchange in the Consolidated Revenue Fund.

15 Where a negotiable security deposit other than a bill of exchange is received by a contracting authority as contract security or is retained by a contracting authority pursuant to paragraph 13(2)(b), the contracting authority shall

• (a) hold the contract security in a place adequate for the safekeeping of the security; or

• (b) immediately forward the contract security to the Receiver General for safekeeping.

16 A contracting authority that has received a negotiable security deposit in respect of a contract shall return that security deposit to the contractor if His Majesty has no claim against the contractor arising out of the contract or relating in any manner to the contract and if the contract has been

• (a) satisfactorily performed; or

• (b) terminated for a reason that is not attributable to any fault of the contractor.

17 Where a security deposit in the form of a government guaranteed bond has unmatured coupons attached to it at the time it is submitted, the contracting authority or the Receiver General, as the case may be, shall return any matured coupons in excess of the security deposit requirement to the person from whom the security deposit was received, if that person so requests.

PART IIIDeemed Terms

• 18 (1) The following terms are deemed to be expressly set out in every construction, goods or service contract that provides for the payment of any money by His Majesty:

  • (a) the contractor declares that the contractor has not, directly or indirectly, paid or agreed to pay, and will not, directly or indirectly, pay a contingency fee to any individual for the solicitation, negotiation or obtaining of the contract if the payment of the fee would require the individual to file a return under section 5 of the Lobbying Act;

  • (b) all accounts and records relating to any payment by the contractor of fees or other compensation for the solicitation, negotiation or obtaining of the contract shall be subject to any accounting and auditing provisions of the contract;

  • (c) the contractor declares that the contractor has not been convicted of an offence under any of the provisions referred to in subsection 750(3) of the Criminal Code or that, if the contractor has been convicted of any of those offences, it is one for which

    • (i) a pardon was granted under the Criminal Records Act — as it read immediately before the coming into force of section 109 of the Safe Streets and Communities Act — that has not been revoked or ceased to have effect,

    • (ii) a record suspension has been ordered under the Criminal Records Act and that has not been revoked or ceased to have effect,

    • (iii) an order of restoration was made under subsection 750(5) of the Criminal Code that restores the contractor’s capacity to enter into the contract or to receive any benefit under the contract as the case may be, or

    • (iv) the conviction was set aside by a competent authority;

  • (c.1) the contractor declares that the contractor has not, during the solicitation, negotiation or obtaining of the contract, committed an act or engaged in an activity that would constitute an offence under

    • (i) section 121 (frauds on the government), 124 (selling or purchasing office), 380 (fraud) or 418 (selling defective stores to His Majesty) of the Criminal Code,

    • (ii) paragraph 80(1)(d) or subsection 80(2) or 154.01(1) of the Financial Administration Act,

    • (iii) section 3 (bribing a foreign public official) or 4 (accounting) of the Corruption of Foreign Public Officials Act, or

    • (iv) section 45 (conspiracies, agreements or arrangements between competitors), 47 (bid-rigging) or 49 (agreements or arrangements of federal financial institutions) of the Competition Act;

  • (d) the contractor consents, in the case of a contract that has a value in excess of $10,000, to the public disclosure of basic information — other than information described in any of paragraphs 20(1)(a) to (d) of the Access to Information Act — relating to the contract; and

  • (e) a contractor who makes a false declaration under paragraph (a), (c) or (c.1) or who fails to comply with the terms set out in paragraph (b) or (d) is in default under the contract and agrees, in addition to any other remedies that may be available against them, that they will immediately return any advance payments and that the contracting authority may terminate the contract.

• (2) The following terms are deemed to be expressly set out in every bid solicitation for a construction, goods or service contract that provides for the payment of any money by His Majesty:

  • (a) the bidder declares that the bidder has not, directly or indirectly, paid or agreed to pay, and will not, directly or indirectly, pay, a contingency fee to any individual for the solicitation, negotiation or obtaining of the contract if the payment of the fee would require the individual to file a return under section 5 of the Lobbying Act;

  • (b) the bidder declares that the bidder has not been convicted of an offence under any of the provisions referred to in subsection 750(3) of the Criminal Code or that, if the bidder has been convicted of any of those offences, it is one for which

    • (i) a pardon was granted under the Criminal Records Act — as it read immediately before the coming into force of section 109 of the Safe Streets and Communities Act — that has not been revoked or ceased to have effect,

    • (ii) a record suspension has been ordered under the Criminal Records Act and that has not been revoked or ceased to have effect,

    • (iii) an order of restoration was made under subsection 750(5) of the Criminal Code that restores the bidder’s capacity to enter into the contract or to receive any benefit under the contract as the case may be, or

    • (iv) the conviction was set aside by a competent authority; and

  • (c) the bidder declares that the bidder has not, during the bid solicitation process, committed an act or engaged in an activity that would constitute an offence under

    • (i) section 121 (frauds on the government), 124 (selling or purchasing office), 380 (fraud) or 418 (selling defective stores to His Majesty) of the Criminal Code,

    • (ii) paragraph 80(1)(d) or subsection 80(2) or 154.01(1) of the Financial Administration Act,

    • (iii) section 3 (bribing a foreign public official) or 4 (accounting) of the Corruption of Foreign Public Officials Act, or

    • (iv) section 45 (conspiracies, agreements or arrangements between competitors), 47 (bid-rigging) or 49 (agreements or arrangements of federal financial institutions) of the Competition Act.