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Archived - Standard Acquisition Clauses and Conditions Manual | CanadaBuys
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Archived Content
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Legal text for SACC item
1. The price(s) quoted by Canadian-based suppliers shall be quoted and
payable in Canadian funds. The option rests with foreign-based bidders to
quote the price(s) in Canadian or foreign currency, with payment made
accordingly. If the price is quoted in foreign currency, paragraphs 2 to 6
below do not apply.
2. The option rests with the Bidder to accept the risk associated with
foreign exchange fluctuations in which case the following paragraphs 3 to 6
inclusive do not apply or the Bidder can identify the foreign currency
component on form DSS-MAS 9411, Claim for Exchange Rate Adjustments, in
which case Canada will assume the associated risk for foreign exchange
fluctuations. It should be noted, however, that in the case of identical
bids, preference may be given to the Bidder who is willing to assume the
risk related to foreign exchange.
3. The foreign currency component is defined as the element of the price
which will be affected by rate fluctuations.
a) For Canadian-based contractors, it includes the duty-paid value
(value in Canadian funds of the foreign component including customs
duty) plus goods and services tax and excise taxes of an ad valorem
nature, as well as transportation costs payable in foreign currency.
b) For foreign-based contractors, it excludes customs duty, goods
and services tax and excise taxes of an ad valorem nature, but
includes transportation costs payable in foreign currency.
4. The foreign currency component(s) subject to adjustments reflect(s) the
goods and services purchased:
( ) a) by Canadian contractors from outside Canada with payment in a
foreign currency; or
( ) b) from authorized Canadian agents but paid for in a
foreign currency; or
( ) c) from a foreign contractor with payment in Canadian funds.
(Check one of the above as applicable.) The applicable conversion factors
are as detailed in form DSS-MAS 9411 which will form part of any resultant
Contract.
5. Price adjustments with respect to foreign currency fluctuations will be
based upon the value of the foreign currency component in foreign funds
(see section A of form DSS-MAS 9411) with appropriate adjustments to
reflect actual exchange rates obtained as opposed to the rate specified at
section B of the form. Such increases or decreases in the rate shall be
based on the following criteria:
a) for Canadian-based suppliers, on the date payment(s) to the
Contractor's foreign supplier is(are) effected, provided such
payment(s) is(are) made within thirty (30) calendar days after the
date of importation and the date of importation is prior to the
delivery date specified in the Contract. If payment to the
Contractor's supplier is not made within thirty (30) calendar days
after the date of importation, and the date of importation is on or
before the specified delivery date, Canada may select the rate most
advantageous to it within the 30-day period after importation.
However, in the case of importations made after the specified
delivery date, Canada will select the rate most advantageous to it
within the 30-day period after the specified delivery date;
b) for foreign-based suppliers, the rate(s) prevailing on the date
of payment(s) by Canada will apply, provided delivery is made on or
before the delivery date specified in the Contract. In case of
delivery made after the specified delivery date, Canada will select
the exchange rate most advantageous to it within the 30-day period
after the specified delivery date.
6. For Canadian-based suppliers, the Minister shall have the right to
audit any revision to costs under this clause.