Managing Corruption and Collusion Risks in Contact Management Processes Policy

Preamble

Vanier College is subject to the Act respecting contracting by public bodies (CQLR c. C-65.1). Under section 26 of the Act, in June 2016, the Treasury Board issued the Directive on Risk Management for Corruption and Collusion in Contract Management Processes. The purpose of this directive is to clarify Vanier College obligations regarding the management of risks related to corruption and collusion in contract management processes.

This risk management requires identifying, analyzing and assessing risks as well as putting in place internal controls and mitigation measures. In this context and in accordance with the directive, Vanier College implements, through this policy, a risk management plan for corruption and collusion in contract management processes.

1. Goal

In establishing this policy, the objectives of the Vanier College are:

• Establish a structured and standardized process to identify, analyze, evaluate, manage and monitor the risks of corruption and collusion arising from the activities of the contract management processes within the Vanier College;
• Specify the components of a corruption and collusion risk management plan;
• Define the roles and responsibilities of the various stakeholders identified in this policy as part of the management of these risks;
• Define the applicable accountability mechanisms.

2. Legal and administrative framework

• the Act respecting contracting by public bodies (CQLR, c.C-65.1) and its regulations;
• Guidelines and policies issued by the Treasury Board under this Act;
• the Directive on Risk Management for Corruption and Collusion in Contract Management Processes (T.B.: 216501), hereinafter referred to as the Directive;
• By-Law # 9, Concerning Procurement Contracts for Goods, Services and Construction;
• By-Law # 4, Finance

3. Scope

This policy applies to all persons involved in the contract management processes or any stakeholder in this process. It covers all stages of this process, from needs assessment to finalization of the contract.

4. Definitions

For the purpose of this policy, the following words and expressions are defined:

Collusion: secret agreement between potential bidders who organize themselves to impede competition, including price or production fixing, sharing of sales or territories and/or bid rigging.

Conflict of interest: constitutes a conflict of interest situation any actual, apparent or potential situation that is objectively likely to compromise the independence and impartiality necessary for the exercise of a function, or on the occasion of which a person uses or seeks to use the attributes of his/her function to gain an undue advantage or to provide such an undue advantage to a third party.

Consequence: effect of an event affecting the objectives. The consequences can be expressed in terms of tangible and intangible impacts.

Internal Control: a process implemented by managers at all levels of the organization to provide reasonable assurance of the achievement of the following objectives:

1. the efficiency and effectiveness of operations;
2. the reliability of financial operations;
3. compliance with laws and regulations.

Corruption: exchange or attempted exchange where, directly or indirectly, an undue advantage is offered, promised or granted by a corrupting and/or requested, accepted or received by a public office holder, in return for an act by the public office holder for the benefit of the briber.

Chief executive officer: the Board of Directors; however, under section 8 of the Act respecting contracting by public bodies, the public bodies may delegate all or part of the duties to be performed by the head of the body to the Executive Committee or the Director General.

Risk management: coordinated activities to direct and steer an organization against risk.

Stakeholder: a person or organization who can influence a decision or activity, be influenced, or feel influenced by a decision or activity.

Risk Management Plan: structure developed from the organizational risk management framework, composed of the following elements: organizational context, assessment of the current situation (identification, analysis and risk assessment), desired situation (mitigation plan) and monitoring.

Risk: effect of uncertainty on the achievement of objectives.

5. Annual risk management plan and monitoring report

5.1 Plan

Pursuant to the delegation provided for in section 6 of By-law #9, the Director General, for each fiscal year, adopts a risk management plan for bribery and collusion in contract management processes and submit it to the Board of Directors. This plan includes:

• the analysis of the context in which Vanier College concludes its contracts;
• the assessment of the risks of corruption and collusion in contract management processes, including the identification, analysis and evaluation of these risks;
• the provisions for the treatment of risks, including the mechanisms for mitigating these risks;
• any other item determined by the Treasury Board, if applicable.

5.2 Report

The annual risk management plan is the subject of a monitoring and review report of the organizational risk management framework for corruption and collusion in contract management processes.

This report is approved by the Director General no later than four (4) months after the end of the fiscal year concerned and includes:

• measuring the results of the organization with regard to risk management;
• measuring progress and deviations from the plan of the previous year risk management;
• the results of the audit of the effectiveness of the organizational risk management framework;
• the review of the organizational framework of risk management;
• any other item determined by the Treasury Board, if applicable.

6. Roles and responsibilities

6.1 Board of Directors

As the head of the organization, the Board of Directors adopts the policy and delegates to the Director General the responsibility for its application.

6.2 The Director General

As the person responsible for the application of this policy, the Director General assumes the following responsibilities and roles:

• Ensure that Vanier College meets the requirements of the Directive;
• Ensure that the responsibilities and authorities of the relevant roles are assigned to the various stakeholders, including those concerning the Contract Rules Enforcement Authority (RARC), to identify, analyze and assess the risks of corruption and collusion and their consequences in contract management processes;
• Ensure that information on the sharing of responsibilities is communicated to those involved in contract management;
• Approve risks assessed as a result of RARC recommendations;
• Adopt the Annual Risk Management Plan for Corruption and Collusion in Contract Management Processes;
• Approve the monitoring report as provided in section 5.2 of this Policy;
• Report annually to the Board of Directors on the application of the organizational risk management framework;
• Transmit, at the request of the Treasury Board, within fifteen (15) days of its request, the annual risk management plan, the surveillance report and any other related document;
• Ensure the implementation of corrective actions and internal control measures following the recommendations of the Risk Management Committee, the internal controller, the Treasury Board Secretariat or the Permanent Anti-Corruption Unit (UPAC) concerning control of the risks of corruption and collusion at the Vanier College;
• Review and recommend an update of this policy;
• Provide the necessary and competent resources for the implementation of this policy.

6.3 The Risk Management Committee

The Risk Management Committee, whose members are appointed by the RARC, plays an advisory role to the Director General, with the following responsibilities:

• Assess the internal control measures in place against the risks of corruption and collusion and report to the Director General;
• Assess the effectiveness of the mitigation measures and report to the Director General;
• Prepare annually the monitoring and review report of the organizational risk management framework;
• Make recommendations and inform the Director General regarding the control of the risks of corruption and collusion of Vanier College;
• Facilitate the implementation of the corruption and collusion risk management plan with Vanier College stakeholders.

6.4 The person in charge of the application of the contractual rules (RARC)

In accordance with the Act respecting contracting by public bodies, the person responsible for the application of the contractual rules has the following responsibilities for the application of this policy:

• Ensure the establishment within the public body of measures to comply with the contractual rules provided for by this Act and its regulations, policies and directives;
• Advise the Director General and make recommendations or opinions on their application;
• Ensure the improvement of the process of managing the risks of corruption and collusion in contract management processes;
• Ensure the implementation of measures within Vanier College to ensure the integrity of internal processes;
• Ensure the quality of the personnel performing the contract activities;
• Perform any other function that the Director General may require to see to the application of the contractual rules.

6.5 The Supply Manager

For the purpose of this policy, the Procurement Manager is primarily responsible for providing advice and support and has the following responsibilities:

• Facilitate the implementation of the annual corruption and collusion risk management plan, including through training, information and dissemination of tools;
• Support the RARC in the accountability process, including monitoring the action plan for new mitigation measures;
• Ensure compliance with the rules regarding conflict of interest and confidentiality in the contract management process;
• Propose updates to the policy.

6.6 Managers and employees involved in a contract management process

Managers involved in a contract management process have the following responsibilities:

• To integrate in their functions the management of the risks of corruption and collusion;
• Ensure accountability and follow-up of risk mitigation measures under their responsibility;
• Inform the RARC of any vulnerable situation that may affect the achievement of Vanier College objectives;
• Agree to respect the rules regarding conflict of interest and confidentiality in the contract management process.

Employees involved in a contract management process have the following responsibilities:

• Integrate risk management decision-making related to corruption and collusion in contract management processes into their activities;
• If necessary, maintain knowledge of the assessment of the risks of corruption and collusion;
• Agree to respect the rules regarding conflict of interest and confidentiality in the contract management process.

7. Administrative or disciplinary measures

Vanier College reserves the right to apply administrative or disciplinary measures in the event of any breach of this policy by any member of the Vanier College staff.

If necessary, Vanier College reserves the right to notify the competent authorities of any infraction of this policy.