Table of Contents
1 Financial Proposal
The Financial Proposal should include the cost to Canada to procure the Innovation proposed with the intent of testing and evaluating the Innovation by a Testing Department. It does not include commercial development activities such as quantity production, supply to establish commercial viability, to recover Research & Development costs, or to cover health and safety or regulatory certifications that should be in place prior to operational testing.
Canada’s standard cost elements are defined below. Should Canada seek further price support the following should be provided in greater detail to support the costs above as may be applicable:
- Labour: For each individual and (or) labour category to be assigned to the Work such as installation, training, indicate:
- the hourly rate,
- overhead,
- profit,
- the estimated level of hours.
- Equipment: Specify each item required to complete the Work and provide the pricing basis of each one, Canadian customs duty and excise taxes included, as applicable.
These items will be deliverable to Canada upon completion of the contract.
Indicate compatibility/interchangeability of the equipment proposed so that Canada can conduct the test and evaluation of the proposed Innovation. - Materials and Supplies: Identify each category of materials and supplies required to conduct test and evaluation of the proposed Innovation.
- Other Direct Charges: Identify any other direct charges anticipated and provide the pricing Basis.
2 Financial Capacity
The Bidder must have the financial capability to fulfill this requirement. To determine the Bidder's financial capability, the Contracting Authority may, by written notice to the Bidder, require the submission of some or all of the financial information detailed below during the evaluation of proposals. The Bidder must provide the following information to the Contracting Authority within fifteen (15) working days of the request or as specified by the Contracting Authority in the notice:
- Audited financial statements, if available, or the unaudited financial statements (prepared by the Bidder's outside accounting firm, if available, or prepared in-house if no external statements have been prepared) for the Bidder's last three fiscal years, or for the years that the Bidder has been in business if this is less than three years (including, as a minimum, the Balance Sheet, the Statement of Retained Earnings, the Income Statement and any notes to the statements).
- If the date of the financial statements in (a) above is more than five months before the date of the request for information by the Contracting Authority, the Bidder must also provide, unless this is prohibited by legislation for public companies, the last quarterly financial statements (consisting of a Balance Sheet and a year-to-date Income Statement), as of two months before the date on which the Contracting Authority requests this information.
- If the Bidder has not been in business for at least one full fiscal year, the following must be Provided:
- the opening Balance Sheet on commencement of business (in the case of a corporation, the date of incorporation); and
- the last quarterly financial statements (consisting of a Balance Sheet and a year-to-date Income Statement) as of two months before the date on which the Contracting Authority requests this information.
- A certification from the Chief Financial Officer or an authorized signing officer of the Bidder that the financial information provided is complete and accurate.
- A confirmation letter from all of the financial institution(s) that have provided short-term financing to the Bidder outlining the total of lines of credit granted to the Bidder and the amount of credit that remains available and not drawn upon as of one month prior to the date on which the Contracting Authority requests this information.
- A detailed monthly Cash Flow Statement covering all the Bidder's activities (including the requirement) for the first two years of the requirement that is the subject of the Call for Proposals solicitation, unless this is prohibited by legislation. This statement must detail the Bidder's major sources and amounts of cash and the major items of cash expenditures on a monthly basis, for all the Bidder's activities. All assumptions made should be explained as well as details of how cash shortfalls will be financed.
- A detailed monthly Project Cash Flow Statement covering the first two years of the requirement that is the subject of the Call for Proposals solicitation, unless this is prohibited by legislation. This statement must detail the Bidder's major sources and amounts of cash and the major items of cash expenditures, for the requirement, on a monthly basis. All assumptions made should be explained as well as details of how cash shortfalls will be financed.
If the Bidder is a joint venture, the financial information required by the Contracting Authority must be provided by each member of the joint venture.
If the Bidder is a subsidiary of another company, then any financial information in 2 (a) to (g) above required by the Contracting Authority must be provided by the ultimate parent company. Provision of parent company financial information does not satisfy the requirement for the provision of the financial information of the Bidder, and the financial capability of a parent cannot be substituted for the financial capability of the Bidder itself unless an agreement by the parent company to sign a Parental Guarantee, as drawn up by Public Works and Government Services Canada (PWGSC), is provided with the required information.
2.1 Financial Information Already Provided to PWGSC
The Bidder is not required to resubmit any financial information requested by the Contracting Authority that is already on file at PWGSC with the Cost and Price Analysis Group of the Policy, Risk, Integrity and Strategic Management Sector, provided that within the above-noted time frame:
- the Bidder identifies to the Contracting Authority in writing the specific information that is on file and the requirement for which this information was provided; and
- the Bidder authorizes the use of the information for this requirement.
It is the Bidder's responsibility to confirm with the Contracting Authority that this information is still on file with PWGSC.
2.2 Other Information
Canada reserves the right to request from the Bidder any other information that Canada requires to conduct a complete financial capability assessment of the Bidder.
2.3 Confidentiality
If the Bidder provides the information required above to Canada in confidence while indicating that the disclosed information is confidential, then Canada will treat the information in a confidential manner as permitted by the Access to Information Act, R.S., 1985, c. A-1, Section 20(1) (b) and (c).
2.4 Security
In determining the Bidder's financial capability to fulfill this requirement, Canada may consider any security the Bidder is capable of providing, at the Bidder's sole expense (for example, an irrevocable letter of credit from a registered financial institution drawn in favour of Canada, a performance guarantee from a third party or some other form of security, as determined by Canada).