Government Contracts Regulations (SOR/87-402)

Regulations are current to 2016-04-12 and last amended on 2015-06-23. Previous Versions

PART IConditions of Contract Entry

Legal Services

  •  (1) Contracts for the performance of legal services may be entered into only by or under the authority of the Minister of Justice.

  • (2) Subsection (1) does not apply in respect of a contracting authority referred to in the schedule.

  • SOR/2011-197, ss. 3, 6(F).

Bids

 Before any contract is entered into, the contracting authority shall solicit bids therefor in the manner prescribed by section 7.

 Notwithstanding section 5, a contracting authority may enter into a contract without soliciting bids where

  • (a) the need is one of pressing emergency in which delay would be injurious to the public interest;

  • (b) the estimated expenditure does not exceed

    • (i) $25,000,

    • (ii) $100,000, where the contract is for the acquisition of architectural, engineering and other services required in respect of the planning, design, preparation or supervision of the construction, repair, renovation or restoration of a work, or

    • (iii) $100,000, where the contract is to be entered into by the member of the Queen’s Privy Council for Canada responsible for the Canadian International Development Agency and is for the acquisition of architectural, engineering or other services required in respect of the planning, design, preparation or supervision of an international development assistance program or project;

  • (c) the nature of the work is such that it would not be in the public interest to solicit bids; or

  • (d) only one person is capable of performing the contract.

  • SOR/96-472, s. 3.

 [Repealed, SOR/2005-298, s. 1]

 A contracting authority shall solicit bids by

  • (a) giving public notice, in a manner consistent with generally accepted trade practices, of a call for bids respecting a proposed contract; or

  • (b) inviting bids on a proposed contract from suppliers on the suppliers’ list.

  • SOR/91-651, s. 3.

Advance Payments

  •  (1) Subject to subsection (2), any contracting authority may enter into a contract that provides for the making of advance payments.

  • (2) Where the approval of the Treasury Board is required for entry into a contract, the amounts and the times of the advance payments shall be approved by the Treasury Board.

Progress Payments

 Any contracting authority may enter into a contract that provides for the making of progress payments.

PART IISecurity

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

 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.

 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.

  •  (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.

 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.

 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.

 Where a negotiable security deposit has been received by a contracting authority in respect of a contract and the contract has been

  • (a) satisfactorily performed, or

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

and Her Majesty has no claim against the contractor arising out of the contract or relating in any manner to the contract, the contracting authority shall return that security deposit to the contractor.

 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

  •  (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 Her 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, other than an offence for which a pardon has been granted, under section 121, 124 or 418 of the Criminal Code;

    • (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) if the contractor makes a false declaration under paragraph (a) or (c) or fails to comply with the terms set out in paragraph (b) or (d), it is an act of default under the contract and the contractor agrees, in addition to any other remedies that may be available against the contractor, to immediately return any advance payments and agrees 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 Her 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; and

    • (b) the bidder declares that the bidder has not been convicted of an offence referred to in paragraph (1)(c), other than an offence for which a pardon has been granted.

  • SOR/2011-197, s. 4.
 
Date modified: