For businesses bidding or working on Canadian federal government
solicitations, contracts and subcontracts with security
requirements, registration with the Contract Security Program
(“CSP”) and compliance with its requirements is
mandatory. The CSP (operated by Public Services and Procurement
Canada (“PSPC”)) provides security screening of
organizations and their personnel for federal solicitations,
contracts and subcontracts with security requirements.
Registration in the CSP also implicates the registrant's
corporate parent or companies looking to acquire a CSP registrant.
Understanding the requirements of the CSP is crucial. Registrations
are not transferrable between companies. Failure to consider the
CSP in planning and executing a corporate reorganization or
transaction involving a CSP registrant may result in a downgrade of
the registrant's security clearance level or even the loss of
the security clearance.
