Federal Accountability Act

The Federal Accountability Act (FAA) is a Canadian federal statute passed on December 12, 2006. It strengthened conflict-of-interest rules, administrative transparency, oversight and accountability across the federal government. The Government of Canada lists it among the key acts that govern federal procurement.

For suppliers, the Act matters because it set an overarching commitment to fairness, openness and transparency in the federal bidding process. It also required integrity provisions in contracts to address corruption, collusion and contingency fees. Those principles shape how federal solicitations are run and how resulting contracts are written.

Procurement principles set out in the Act

The Act includes an overarching statement of procurement principles. It commits the Government of Canada to fairness, openness and transparency in bidding, as described in the Treasury Board Secretariat fact sheet on the Act.

The commitment concerns contracts for the performance of work, the supply of goods and the rendering of services, according to the Treasury Board Secretariat's Federal Accountability Act material. It applies to the federal procurement system, including procurement administered through Public Services and Procurement Canada (PSPC) and the government-wide CanadaBuys framework. Federal bid solicitations and the contracts that follow are expected to be conducted and structured according to these principles.

Integrity provisions on corruption, collusion and contingency fees

The Act required federal contracts to include integrity provisions. These provisions address three specific problems: corruption, collusion and the payment of contingency fees in procurement. The Federal Accountability Act action plan document sets out this requirement.

A supplier that signs a federal contract is therefore bound by terms that deal with these issues directly. Integrity is built into the contract itself and does not sit only in policy documents.

The Procurement Auditor and other statutes enacted

The Act provided for an independent Procurement Auditor, which added a layer of oversight to federal procurement. The same action plan document describes this role.

The Act also enacted other statutes, including the Conflict of Interest Act and the Director of Public Prosecutions Act. The CanadaBuys key acts and contract regulations page records these as part of the Act's legacy.

Link to the Code of Conduct and the Ineligibility and Suspension Policy

The Act's principles carry through to supplier conduct rules. The Government of Canada's Code of Conduct for Procurement states that it is framed by the principles in the Financial Administration Act and the Federal Accountability Act. Suppliers taking part in federal procurement are subject to the Code and related integrity requirements.

The Act operates alongside PSPC's integrity framework. The Ineligibility and Suspension Policy applies to procurement processes, standing offers, supply arrangements, contracts and other instruments entered into or commenced by a department.

What it means for a supplier bidding on Canadian public contracts

• Expect federal solicitations to be run on fairness, openness and transparency principles.
• Read the integrity provisions in each contract. They address corruption, collusion and contingency fees.
• Follow the Code of Conduct for Procurement, which is framed by the Act.
• Understand that the integrity framework, including the Ineligibility and Suspension Policy, applies across standing offers, supply arrangements and contracts, not only to one-time bids.

Bid teams should treat these requirements as part of every federal bid. Review the integrity terms early, confirm that your pricing and teaming arrangements involve no contingency fee arrangements, and keep your conduct consistent with the Code from solicitation through contract performance.