Introduction to the Concepts ofProbity

Presented by Kevin Donnelly CPA

Principal, Probity and Procurement

JTSI METRONET Railcar Industry Meeting

Some Definitions

• Probity – Goodness, decency, honesty, integrity, honour, virtue• Ethics – from the Greek word ethos, meaning moral, decent,

upright, fair, just, proper, straightforward• The two terms are very similar. Think of probity as being fair to

all – not giving one person an advantage over another.

JTSI METRONET Railcar Replacement Project

Why is Probity Important?

A breach of probity can:• Lead to termination of a procurement process.• Have the process stopped by an aggrieved party.• Delay the project.• Result in a sub-optimal outcome.• Result in punitive damages against the State.• Wasted resources for the State and respondents.• Increased costs• Cause reputational damage.

JTSI METRONET Railcar Replacement Project

WHAT IS EXPECTED OF PARTICIPANTS

• RESPECT THE FACT THAT THIS IS A CURRENT TENDERING PROCESS• THE CONSORTIA ARE WORKING UNDER STRICT CONDITIONS OF A

PROBITY FRAMEWORK AND PLAN• DO NOT SEEK INFORMATION THAT IS NOT PUBLICLY AVAILABLE• RESPECT THE FACT THAT THE CONSORTIA ARE WORKING IN A

COMPETITIVE ENVIRONMENT• NEVER SEEK TO OFFER OR OBTAIN INDUCEMENTS• RESPECT THE CONFIDENTIALITY OF ANY INFORMATION YOU ARE

PROVIDED WITH.

JTSI METRONET Railcar Replacement Project