Canada’s Economic Impact Assessment (EIA) for Major Military and Coast Guard Procurements

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In December 2017, the Government announced that the evaluation of bids for the competition to replace Canada’s fighter aircraft would include an assessment of bidders’ impact on Canada’s economic interests, and that any bidder that had harmed Canada’s economic interests would be disadvantaged. Budget 2021 confirmed the Government’s intention to apply this policy to major military and Coast Guard procurements going forward.

This policy will protect Canada’s economic interests and ensure the Government does business with trusted partners who value doing business with Canada.

To which major military and Canadian Coast Guard procurements will the EIA apply?

The EIA applies to major military and Canadian Coast Guard procurements that are valued over $1 billion, and that are not subject to government procurement obligations under international trade agreements or for which a government procurement National Security Exception (NSE) is invoked.

It applies to both competitive and non-competitive procurements for which a final Request for Proposal (RFP) is issued after October 19, 2021.

What will the EIA assess?

The EIA will assess the economic impact of trade related actions petitioned against goods produced in Canada within two years of the bid closing date and up until contract award.

Canada will undertake a review to determine if any of the bidder and/or the consortia partners, as well as their respective affiliates and/or subsidiaries have petitioned any trade related actions.

The EIA will measure the potential impact of trade related actions on employment in the company targeted by the trade related action and its supply chain, as well as on exports from Canada.

When will the EIA be performed?

The EIA will be performed following the bid closing date and prior to contract award.

Upon completion of the assessment, bidders will be provided with an opportunity to review their EIA results.

For more information, please consult the Economic Impact Assessment RFP Annex.

Comments and Feedback

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