Industrial Security Requirements on Bonded Federal Projects
What is it, why does it matter for surety firms, and how does it work?
In 2007 the Office of the Auditor General of Canada reported that departments were not taking sufficient measures to safeguard government assets and information in the contracting process. Since then, federal departments have taken a more pro-active approach to security on the services that they outsource to private firms. For example, roughly 80% of Defence Construction Canada’s procurements (for non-residential) require that the contractor/consultant firms and their subcontractors and employees be security cleared through Public Services and Procurement Canada’s contract security program as a condition of bidding and implementing the work/services.
How does this apply to surety companies?
In the event that there is a claim on a performance bond on a contract that contains security requirements, the surety company will not be provided access to classified information or the project site without first having been granted a security clearance by CISD for both the firm and its employee(s). The security clearance process can take up to 4 months for a basic level security clearance and up to 9 months or more for the next level of security clearance. This will significantly impact the surety company’s ability to respond to a claim in a prompt manner, thus increasing risk for all parties.
How to seek and obtain a security clearance?
Surety Association of Canada (SAC) members are invited to attend an awareness and training session in Toronto on industrial security clearance requirements and processes for surety companies. At this session, Defence Construction Canada and others will provide more detailed information on different aspects of security requirements and walk you through the process for seeking and obtaining security clearance.
Date: Tuesday, April 24, 2018 - NEW DATE!
Time: 9AM to 12Noon
Location: Borden Ladner Gervais LLP, Bay Adelaide Centre, East Tower, 22 Adelaide Street West, Suite 3400, Toronto, ON M5H 4E3
Link to map: https://goo.gl/maps/2NazFpPMQjk
This session is being offered at NO COST but has a limited number of seats available. Preference will be given to claims personnel, claims consultants, and legal advisors.
- Overview of the Canadian Policy on Government Security (PGS)
- Description of the different security levels
- Context forcing the Department of National Defence to increase their security posture
- Impact on contractors and by extension the Bonding Companies
- Overview of the Government Industrial Security Program (ISP)
- Sponsorship of ISP security clearances through Defence Construction Canada
CLICK HERE to register.
Please note that this session is available to SAC members only. Not sure if you're a member? Contact Sharon Clark-Koufis at (905) 677-1353 ext. 202.