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Purpose
The purpose of Policy Notification (PN)-139 is to inform PWGSC Acquisitions Program (AP) contracting officers of the new Directive on Government Contracts Including Real Property Leases in the Nunavut Settlement Area (the Directive) and the accompanying contracting guidance document titled "Guide on Government Contracts in the Nunavut Settlement Area" (the Guide). PWGSC's Real Property Services have developed a separate Guide on Real Property Leases in the NSA.
Effective date
This policy notification is effective on December 20, 2019. The obligations of the Directive on Government Contracts Including Real Property Leases in the Nunavut Settlement Area will come into force on December 20, 2019. The Supply Manual (SM) and Standard Procurement Templates will be updated and published on December 12, 2019. For advice and guidance on clauses for the Directive, contact: TPSGC.PAContratsNunavut-APNunavutContracts.PWGSC@tpsgc-pwgsc.gc.ca.
Background
On August 15, 2019, the Government of Canada announced the new Treasury Board Directive on Government Contracts, Including Real Property Leases, in the Nunavut Settlement Area. The Directive was developed in close consultation with the Nunavut Tunngavik Incorporated (NTI), the Designated Inuit Organization (DIO) for the Agreement between the Inuit of the Nunavut Settlement Area and Her Majesty the Queen in right of Canada (Nunavut Agreement).
The implementation of this Directive supports the Government of Canada's obligations under Article 24 (Government Contracts) of the Nunavut Agreement to provide reasonable support and assistance to Inuit firms to enable them to compete for government contracts, for the supply of goods, services, construction services and real property leases.
Overview
The Directive represents a shift in Canada's contracting policy for procurements in the Nunavut Settlement Area (NSA). It clarifies obligations for Contracting Authorities (CAs) and, Business Owners (BOs) – formerly Technical Authorities (TAs) reflecting a government-wide approach to provide Inuit firms with fair and reasonable opportunities to submit bids on government contracts. It also allows for increased participation of Inuit firms on NTI's Inuit Firm Registry (IFR) by limiting bids to those firms in certain circumstances, and strengthening requirements for bid evaluation criteria related to Inuit and Nunavut benefits.
Guide on Government Contracts in the Nunavut Settlement Area (the Guide)
As required in the Directive, a government-wide guide titled "Guide on Government Contracts in the Nunavut Settlement Area" has been developed to assist CAs and TAs in fulfilling the obligations of the Directive. The Guide assumes a general understanding of Canada's procurement process, and focuses advice on areas where the Directive represents a significant departure from the standard procurement approach.
Expected Results
The Directive and its implementation measures (including the Guide) reflect the expected results of Article 24 of the Nunavut Agreement which are, to the extent possible, as follows:
- increased participation by Inuit firms in business opportunities in the NSA economy;
- improved capacity of Inuit firms to compete for government contracts and real property leases in the NSA; and
- employment of Inuit at a representative level in the NSA workforce.
It is also expected that the procurement obligations in the Nunavut Agreement will be more consistently applied across the federal government by following the provisions of the Guide.
Application of the Directive
The requirements of the Directive apply to any government contract (as defined in Article 24.1.1 of the Nunavut Agreement), including real property leases, where the deliverable(s), or a portion of the deliverable(s) include final delivery or performance in or into the NSA.
The Directive applies to departments and agencies listed in Schedules I, I.1 and II of the Financial Administration Act, with the exception of the Canada Revenue Agency and to Commissions established pursuant to the Inquiries Act that are designated as departments for the purposes of the Financial Administration Act.
In the event of a conflict between the Directive and a requirement of any other Treasury Board or departmental policy, the Directive will take precedence.
Key Policy Measures of the Directive
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Inuit Firm Registry (IFR)
As per the Nunavut Agreement, NTI is responsible for preparing and maintaining a registry of Inuit firms, and identifying the commodities and services those firms provide. This list is referred to as the Inuit Firm Registry (IFR). Contracting authorities (CA) and Technical Authorities (TA) must consult the IFR and may contact NTI as part of the mandatory market research into Inuit capacity that must be carried out before soliciting or inviting bids for a government contract in the NSA.
CAs and TAs are directed to rely on the IFR to confirm whether a bidder and/or their subcontractor(s) meets the definition of Inuit firm for the purposes of limited bidding, or for the award of points related to Inuit Benefits Criteria.
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Limiting Bids to Inuit Firms
The Directive establishes a new mandatory policy measure to limit bidding on government contracts among Inuit firms on the IFR when there are two or more firms listed for that commodity or service.
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Inuit Benefits Criteria/Nunavut Benefits Criteria (IBC/NBC)
The Directive requires that bid evaluation criteria (against which all bids are to be evaluated) related to Inuit and Nunavut Benefits be included in all competitive processes either as a mandatory or on a "best efforts" basis, depending on the estimated contract value. For procurements where the total estimated contract value is over $100,000 the IBC/NBC criteria must be included in the solicitation, and for contracts under $100,000 "best efforts" must be used to include them when practicable, and in keeping with sound procurement management principles.
The IBC and NBC are used alongside price and technical criteria in evaluating bids and selecting a successful bidder.
Inuit Benefits Criteria are:
- Inuit employment: to evaluate the employment of Inuit labour.
- Inuit training and skills development: to evaluate the undertaking of commitments, under the contract, with respect to training or skills development for Inuit
- Inuit ownership (prime contractor and subcontractors): to evaluate whether the bidder is an Inuit firm on the IFR, and whether Inuit firms on the IFR will be engaged as subcontractor(s) in carrying out the government contract
Nunavut Benefits Criteria are:
- Location in the NSA: to evaluate whether the bidder or the subcontractor(s) have head offices, administrative offices or other facilities in the Nunavut Settlement Area.
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Mandatory Documenting and Reporting Requirements
- Documenting: Appendix C of the Directive requires that CAs and TAs document and justify certain decisions related to the procurement.
- Reporting: Appendix D of the Directive requires that CAs and TAs complete and submit reports of government contracts valued at over $10,000 in the NSA.
Summary of changes
Supply Manual changes
In support of PN-139, modifications will be made to the Supply Manual (SM) on December 12, 2019, to reflect Canada’s obligations under the Directive and describe its implementation process. In particular, SM Section 9.35.5.15.1 will be updated to provide information to AP contracting officers on where to find the Guide. Please refer to Annex A for complete details.
Section 9.35 on Modern Treaties/Comprehensive Land Claims Agreement will also be updated to provide AP contracting officers with the most current available information.
Summary of revisions to the Standard Acquisition Clauses and Conditions (SACC) Manual
There are no changes to the SACC.
Standard procurement templates changes
In support of PN-139, the Standard Procurement Templates outlined below will be updated and published on December 12, 2019:
- High Complexity Bid Solicitation and Resulting Contract Template (HC)
- Medium Complexity Bid Solicitation and Resulting Contract Template (MC)
- Low Dollar Value Bid Solicitation and Resulting Contract Template (Simple)
- Request for Standing Offers (RFSO) Template
- Request for Supply Arrangements (RFSA) Template
- Request for Standing Offers Template for Canadian Collaborative Procurement Initiative (RFSO-CCPI)
Contact information
Questions related to Policy Notification (PN)-139, the obligations of the Directive and the Guide, can be sent by email to Strategic Policy Sector's Indigenous Involvement in Procurement Division at the following address: TPSGC.PAContratsNunavut-APNunavutContracts.PWGSC@tpsgc-pwgsc.gc.ca.