FILE NO.: 3800-000-005
DATE: August 15, 1997
TO: Functional Heads, Administration/Finance of all
Departments and Agencies
SUBJECT: Procurement Strategy for Aboriginal Business:
Guidelines for Buyers/Government Officials
SUMMARY
THE ATTACHED REFERENCE DOCUMENT PROVIDES CONTRACTING AUTHORITIES WITH
GUIDELINES FOR CONTRACTING UNDER THE PROCUREMENT STRATEGY FOR ABORIGINAL
BUSINESS
BACKGROUND
1. The federal government is committed to increasing contracting between the
government and Aboriginal businesses. On March 29, 1996, the Minister of Indian
and Northern Affairs announced the initiation of the Procurement Strategy for
Aboriginal Business (PSAB). Contracting Policy Notices 1996-2, 1996-6, and
1996-10 provide further details on the requirements for contracting under the
PSAB.
2. The attached document is intended as a guide for those contracting
authorities who are required to procure goods subject to the PSAB. It will
eventually be included in a future consolidation of the electronic version of
the Treasury Board Contracting Policy.
CONTRACTING POLICY
3. Online access: All TBS publications are now available
online via the TBS home page on GENet, the new federal government internal
network. To access this site, type the following in the address section of your
World Wide Web browser:
http://publiservice.tbs-sct.gc.ca/
4. The Government Telecommunications and Information Services (GTIS) manages
GENet. For help accessing it, please contact your Informatics Division or your
departmental library.
5. The same publications are also available via the TBS homepage on the
Internet. The address is: http://www.tbs-sct.gc.ca/
6. You will be able to access this document on either home page via the
"What's new on this site" or "Key policies and
publications."
7. Printed copy: This policy will no longer be published in
print format. All holders of the printed version of the "Contracting"
volume of the Treasury Board Manual will be asked to consult the
electronic version.
ENQUIRIES
8. For further information, please contact the Contracting Management Group,
Deputy Comptroller General Branch, Treasury Board Secretariat at (613) 957-3789,
by fax at (613) 952-1381 or by E-mail at: DCG-SCG@tbs-sct.gc.ca.
R. J. Neville
Assistant Secretary and Assistant Comptroller General
Financial, Contract and Asset Management Sector
Distribution: TB06, TB07, TB010, T004, T009, T010, T022, T023, T024, T025,
T036, T038, T041, T161.
Attachments
CONTRACTING POLICY NOTICE 1997-6: Procurement Strategy for Aboriginal
Business: Guidelines for Buyers/Government Officials
Table of Contents
1. INTRODUCTION
-
1.2 Purpose
2. DETERMINING COVERAGE
3. PROMOTING PROCUREMENT FROM ABORIGINAL BUSINESS IN OTHER
WAYS
4. TENDERING OR BIDDING PROCEDURES
5. IDENTIFYING / RECORDING PROCUREMENTS FROM ABORIGINAL
BUSINESS
6. PSAB AND COMPREHENSIVE LAND CLAIM AGREEMENTS (CLCAs)
7. DISPUTE MECHANISM
8. GUIDELINES AND PROCEDURES
9. CONTRACT CLAUSES
10. PSAB PROCEDURAL FLOW CHART
11. A Checklist Approach
1. INTRODUCTION
1.1.1 Many business interests, especially small business, perceive the
federal procurement process as being one of the main vehicles to allow them to
achieve a higher level of economic viability and profitability. The number of
Aboriginal businesses has increased in recent times as a consequence of a number
of developments. This includes the return of land and resources management to
the control of Aboriginal peoples as a result of: comprehensive land claims;
claim litigation against the Crown; revision to historical Treaties; and,
increasing devolution and transfer of social programs from other levels of
government to Aboriginal self governments. Furthermore, there is an increasing
number of more qualified Aboriginal college and university graduates in the
workforce. Today, there are more than 18,000 Aboriginal-owned businesses in
Canada, mostly small, and scattered throughout the market sectors. The
Aboriginal business community has the capability and the potential to play a
much larger role in federal procurement.
1.1.2 The federal government is committed to increasing contracting between
the federal government and Aboriginal businesses. On March 29, 1996, the
Minister of Indian and Northern Affairs announced the initiation of the
Procurement Strategy for Aboriginal Business (PSAB). Treasury Board Contracting
Policy Notice 1996-2, dated March 27, 1996, describes the components of the
strategy.
1.2 Purpose
1.2.1 This document is intended as a guide for those who are required, or
wish to, conduct procurement subject to the PSAB. Further details are in
Contracting Policy Notices 1996-2, 1996-6, and 1996-10, which are attached to
this document.
1.2.2 This document has four main sections:
Determining Coverage: |
explains how to determine if a procurement is
subject to the mandatory provisions, or subject to the voluntary set-aside
provisions of the PSAB; |
|
|
Promoting Procurement: |
a general discussion on other ways to promote
procurements from Aboriginal business, including joint ventures, strategic
alliances and sub-contracting plans; |
|
|
Tendering Procedures: |
includes instructions on the tendering or
bidding procedures to be followed for procurements making use of this
policy; and |
|
|
Identifying / Recording Procurements |
a general discussion on identifying and
recording procurements from Aboriginal suppliers. |
2. DETERMINING COVERAGE
2.1 Scope of the Program
2.1.1 The Procurement Strategy for Aboriginal Business (PSAB), applies to all
federal departments and agencies designated as departments for the purposes of
the Financial Administration Act as listed in Schedules I, Schedule I.I
and Schedule II, Part I of the FAA, Chapter F-11, R.S.C. F-10, s.1, as amended.
2.1.2 Departments and agencies should use existing procurement methods and
authorities including competitive or non-competitive solicitation through
electronic bidding, traditional bidding methods or source lists, within existing
departmental contract signing authorities. Departments are required to use:
existing procedures under comprehensive land claim agreements and national park
co-management agreements; the procurement review process; the Major Crown
Projects process; and, in addition, the new procedures under the PSAB for
Aboriginal set-asides.
2.2 Policy Statement
2.2.1 When Aboriginal supplier capability exists and procurements can be
obtained in a manner consistent with good contracting practices, contracts will
be competed among qualified Aboriginal suppliers within the intent of the PSAB,
as expressed in paragraphs 4 to 9 of Contracting Policy Notice 1996-2.
2.3 Objective
2.3.1 The objective of the PSAB policy is to assist Aboriginal business
development by increasing Aboriginal business participation in the awarding of
contracts by federal departments and agencies. The PSAB is intended to make use
of the government's purchasing system to help Aboriginal businesses develop and
grow.
2.3.2 This objective will be accomplished in part through a program of
mandatory and voluntary set-asides of procurement opportunities.
2.4 Definitions
2.4.1 Within the context of this document, the following terms have been used
to mean:
"Procurement": |
|
The acquisition of goods and services,
including construction, awarded through contracting arrangements. |
"Requisitioning Office": |
|
The authority requesting procurement or
contracting services from a delegated contracting authority. The
requisitioning office is often referred to as the client department or
end-user of the product or service being sought. |
"Contracting Authority": |
|
The appropriate Minister as defined in
paragraph (a) or (b) of the definition "appropriate Minister"
in section 2 of the Financial Administration Act for purchases of
goods, services or construction through federally accepted procurement
practices within the limits of its contract authority, on behalf of the
"client". |
"Contract Signing Authority": |
|
The person (that is the incumbent of a
position) with authority delegated by the Minister to sign on his/her
behalf a contract, contract amendment or Standing Offer documents after
ascertaining that the approval authority has been duly granted and
ensuring that the terms and conditions written in the documents reflect
those approved by the contract approval authority. |
"Advance Contract Award Notice" |
|
Notification through the electronic bidding
methodology of the intent to award a directed contract. If no challenges
to the Advance Contract Award Notice are received within fifteen calendar
days, the contract is deemed to be competitive. |
2.4.2 Definitions of further interest to contracting authorities may be found
within Contracting Policy Notice 1996-2 (i.e. Aboriginal Business, Required
Aboriginal Content, Aboriginal person, etc.) and Appendix B of Contracting
Policy Notice 1996-6.
2.5 Procurement Process
2.5.1 The objective of government contracting is to acquire goods and
services and carry out construction in a manner that enhances access, fairness,
and competition and results in best value or, if appropriate, the optimal
balance of overall benefits to the Crown and to the Canadian people. The PSAB is
consistent with the current Treasury Board contracting policy, requiring among
other objectives the goal of best value in relation to other national objectives
in the evaluation and awarding of major procurements. The Government
Contracts Regulations require the soliciting of bids before any contract is
entered into (subject to certain exceptions), allowing all potential bidders to
have equal access to procurement opportunities. The PSAB defines potential
bidders in some instances as Aboriginal bidders.
2.5.2 Bidders for a requirement, which is set aside pursuant to the PSAB, do
not have to be located within a land claim settlement area or on a reserve to
qualify as potential suppliers. In fact, certain types of procurement may be
destined for predominantly Aboriginal populations in major Canadian urban
centres.
2.6 Aboriginal Population Set-Aside (Mandatory Set-Aside
for Aboriginal Business)
2.6.1 The PSAB requires all contracting authorities, where the procurement is
valued in excess of $5,000, and is destined primarily for Aboriginal populations
as defined in TBS Contracting Policy Notice 1996-2, to restrict the procurement
exclusively to qualified Aboriginal suppliers where operational requirements,
best value, prudence and probity, and sound contracting management can be
assured.
2.6.2 Given the significance of the Aboriginal population set-aside to the
PSAB, departments and agencies should always, as an initial step in any
procurement destined primarily for Aboriginal populations, set aside the
procurement in order to conclusively determine whether there are any qualified
Aboriginal suppliers. This can be done by means of appropriate advertising
either in the Government Business Opportunities publication or by the
electronic bidding methodology, as necessary. Only if this first step fails to
identify qualified Aboriginal suppliers, should the procurement be then opened
up to a larger market.
2.7 Selective Set-Aside (Voluntary Set-Aside for
Aboriginal Business)
2.7.1 Contracts destined for Aboriginal populations which are valued at less
than $5,000 may also be set aside for qualified Aboriginal suppliers if it is
practical to do so.
2.7.2 All departments and agencies are authorized and encouraged to set
procurements aside voluntarily under this program where operational
requirements, best value, prudence and probity, and sound contracting management
can be assured. A decision to set aside voluntarily should be founded on
knowledge and expertise of the Aboriginal supplier community, meeting
departmental objectives, best business practices, and the nature of the
requirement.
2.8 Applicable to all Set-Asides under the PSAB
2.8.1 There is no upper value limit for set-aside procurements. Procurements
estimated at $2.0 million and over will continue to be subject to the
procurement review process. When the procurement has been set aside, it is not
subject to the international trade agreements (NAFTA, WTO-AGP). The Agreement on
Internal Trade (AIT) does not apply to measures adopted or maintained with
respect to Aboriginal peoples.
3. PROMOTING PROCUREMENT FROM ABORIGINAL BUSINESS IN
OTHER WAYS
3.1.1 Socio-economic benefits for Aboriginal business are possible through
different contracting mechanisms. Technology transfers to Aboriginal firms
through contracting opportunities allow more Aboriginal businesses to become
competitive within the mainstream Canadian economy.
3.2 Joint Ventures
3.2.1 While many Aboriginal businesses may not yet be in a position to bid on
very large projects, they can enhance their competitive edge by building and
expanding partnerships and strategic alliances with others. Joint ventures
consisting of Aboriginal and non-Aboriginal businesses, or two or more
Aboriginal businesses, may qualify as Aboriginal suppliers under the PSAB
provided that the Aboriginal business or businesses have at least 51 percent
ownership and control of the joint venture.
3.3 Aboriginal Business Sub-contracting Plans
3.3.1 Sub-contracting plans in federal procurement opportunities can be of
further benefit to Aboriginal business. All departments and agencies awarding
contracts are encouraged to request Aboriginal business sub-contracting plans
within their solicitation documents. Such a plan could be mandatory or a
point-rated evaluation criterion. Further guidance on how to introduce these
elements into procurement must be developed in order to ensure appropriate
consistency, fairness and effectiveness. This will be the subject of a follow-up
addition to these guidelines. Neither of these options are available if the
contracting opportunity is subject to NAFTA or the WTO-AGP.
3.4 Advocacy Departments
3.4.1 The regional agencies, as well as Indian Affairs and Northern
Development, play an important role with regard to the Industrial and Regional
Benefits Policy. Atlantic Canada Opportunities Agency, the Federal Office of
Regional Development (Quebec), and Western Economic Diversification are
responsible for leading economic development strategies within specific
geographic regions of Canada. These organizations promote economic development,
sustainable employment and income creation within their regions through business
growth and competitiveness, with particular emphasis on small and medium sized
businesses and enhancement of entrepreneurial talent. They support efforts of
traditional resource sectors to become more modern, productive and competitive.
They play an important advocacy role in promoting new government programs such
as the PSAB. Sub-contracting plans for Aboriginal businesses are likely to be
included in Major Crown Project requirements reviewed by the Procurement Review
Committee and may also be considered by the advocacy agencies in promoting their
regional objectives.
4. Tendering or Bidding Procedures
4.1.1 The usual methods for tendering federal procurement opportunities are
also employed for procurements being set aside under the PSAB. They are:
electronic bidding; public advertisements in the media; direct mail or telephone
solicitations and the like; tendering from source lists; and sole sourcing, when
permitted.
4.2 Electronic Bidding - Public Advertisement
4.2.1 Electronic bidding applies to most higher value procurement
opportunities. These opportunities are posted in the Government Business
Opportunities (GBO) publication and in the electronic bidding medium. Both are
recognized for public advertising of procurement opportunities under the PSAB,
as well as for other procurements. In the case of electronic bidding, suppliers
determine which opportunities interest them and request copies of the bid
documents from the electronic bidding provider.
4.2.2 If the procurement opportunity is being set aside under the PSAB, only
Aboriginal suppliers are eligible to compete. There are two aspects of
eligibility. An eligible Aboriginal supplier must qualify as an Aboriginal firm
by submitting the completed certificate contained in the "Requirements
for the Set-Aside Program for Aboriginal Business" in each bid
package. If the certificate is not included, the bid is considered
non-compliant. The Aboriginal supplier must also have the capacity to fulfill
the requirements of the contract.
4.2.3 The contracting authority should indicate that a procurement
opportunity is being set aside by including a clear statement to that effect at
the beginning of the Notice of Proposed Procurement (NPP) and in the
solicitation document. The statement, an example of which is provided in section
8.1.5 of this document, should also be used for Advance Contract Award Notice(s)
(ACANs). In summary, the statement is a tool that should be used prominently in
each solicitation method if the procurement is being set aside.
4.2.4 To notify Aboriginal firms of contract opportunities identified for
set-asides, electronic bidding may be used to publish Solicitations of Interest.
Should no Aboriginal firm respond to a Solicitation of Interest, the procurement
plan will be changed to open the requirement to all bidders, but at the same
time may include provisions/criteria requiring bidders to develop Aboriginal
sub-contracting plans as part of their proposals. Any exemption from the
application of the trade agreements (NAFTA, WTO-AGP and AIT) acquired by virtue
of having invoked the PSAB, expires upon a return to open competition through a
re-solicitation.
4.3 Public Advertisements in the Media
4.3.1 Public advertisement in the press is appropriate when it is a custom
generally followed by the trade involved, or when the contracting department or
agency considers it the most effective means of ensuring an adequate competitive
response.
4.4 Direct Solicitation
4.4.1 Another method for tendering federal government contracts under the
PSAB is direct solicitation. Examples of direct solicitations can include an
information letter mailed to a list of potential sources, advertisement of the
opportunity in trade publications, or telephone solicitation.
4.5 Tendering from Source Lists
4.5.1 Suppliers are chosen from established source lists of pre-qualified
suppliers. Each list identifies potential suppliers for a specific good or
service. Source lists may be used for most low dollar value opportunities. A
permanent list of suppliers may be utilized under the PSAB where the Aboriginal
supplier base is a known factor. Departments and agencies are encouraged to
maintain source lists of qualified and eligible Aboriginal businesses for low
dollar value opportunities and other requirements below the electronic bidding
threshold. Source lists should be updated on a regular basis to ensure new
sources of supply have an opportunity to compete. No source lists should be
maintained for more than two years without being updated. Generally, the list
should be rejuvenated at much shorter intervals.
4.5.2 Where a source list is used for a procurement opportunity set-aside
there should be a clear and prominent statement in the notification of the
contracting opportunity to the effect that it is set aside for Aboriginal
suppliers only.
4.5.3 Aboriginal suppliers identified on source lists must nevertheless
attach to their bid the certification found within the "Requirements
for the Set-Aside Program for Aboriginal Business " document attached
to the solicitation package.
4.5.4 On occasion, the contracting authority may conclude that no qualified
Aboriginal suppliers exist, yet the requisitioning department has identified the
procurement as a set-aside. In this case the obligation to source the
requirement to Aboriginal firms cannot be rejected by a simple "note to
file" saying that no Aboriginal supplier is known. The efforts of the
contracting authority to find Aboriginal businesses with the capability to
perform the requirement should be clearly documented on the file. These could
include, for example, contacting the requisitioning department to request a
potential source list of Aboriginal firms or requesting from the Access to
Federal Procurement Directorate a list of potential Aboriginal suppliers. The
Aboriginal Supplier Inventory can be accessed from the INAC Website HomePage at http://www.ainc-inac.gc.ca/.
4.6 Sole Sourcing/Non-Competitive
4.6.1 All of the sole sourcing techniques may be employed for requirements
identified as set-aside. A sole source may be selected in this way for reasons
including low dollar value, regulated prices, best interest of, or value to, the
government, or national security. In instances of a sole source requirement,
only one supplier is solicited. However, in the interest of transparency and
fairness both electronic bidding and the Government Business Opportunities
(GBO) contain ACANs for non-competitive requirements subject to international
obligations and electronic bidding requirements. The public is advised of the
Government's intent (prior to actual award of the contract) to negotiate with
only one firm. In a sole source procurement, which has been set aside, there is
still an opportunity for other potential suppliers to challenge the sole
sourcing. However, only suppliers eligible to bid on set-aside opportunities may
challenge the sourcing. Accordingly, ACANs should clearly indicate that the
procurement is set aside for an Aboriginal supplier.
4.7 Letter of Interest
4.7.1 In some cases, a Letter of Interest (LOI) may be used to identify
potential suppliers. For service requirements, the LOI is an invitation to
potential suppliers to express interest in future contracts with the government
and is used to create a source list. If a LOI relates to an opportunity set
aside under the PSAB, the LOI should state so clearly.
4.8 Request for Information
4.8.1 In some cases, suppliers are provided with a general or preliminary
description of a problem or need and are requested to provide information or
advice about how to better define the problem or need, or alternative solutions.
This information may be used to assist in preparing a call for tenders.
5. IDENTIFYING / RECORDING PROCUREMENTS FROM ABORIGINAL
BUSINESS
5.1.1 Contracting Policy Notice 1996-6 regarding the establishment of
departmental performance objectives states:
"All Departments and Agencies with a contracting budget of $1
million must develop multi-year performance objectives relating to
procurements from Aboriginal businesses and develop related reporting
mechanisms."
5.1.2 There are two types of procurement from Aboriginal suppliers to be
recorded by departments in meeting their performance objectives. They are:
- Contracts resulting from set-asides, both mandatory and voluntary; and
- Incidental procurements from Aboriginal suppliers.
5.1.3 Procurements are to be recorded in the case of contracts resulting from
a mandatory set-aside or a voluntary set-aside.
5.1.4 Not every procurement from an Aboriginal supplier is a set-aside.
Procurements in which only Aboriginal suppliers may compete are set-asides.
Incidental procurements from Aboriginal suppliers, where a contract is awarded
to an Aboriginal supplier under a regular tendering process, may be recorded if,
after a contract award, the supplier voluntarily completes the "Self-Declaration
Statement of Eligibility of an Aboriginal Supplier" form.
6. PSAB AND COMPREHENSIVE LAND CLAIM AGREEMENTS (CLCAs)
6.1.1 Federal procurement within a land claim settlement area has been
addressed in Contracting Policy Notice 1996-2. However, as long as the
provisions of any specific Comprehensive Land Claim Agreement (CLCA) or Park
Co-management Agreement are first complied with, the Aboriginal set-aside policy
can be invoked to meet procurement requirements not otherwise set out within the
provisions of a CLCA or Park Agreement. If particular procurement procedures are
identified within a ratified CLCA or Park Agreement, they must be followed
before any of the provisions of the PSAB are invoked.
6.1.2 For requirements advertised electronically and in GBO, notification
provisions under the CLCA policy require that a copy of the NPP be transmitted
to the claimant group(s) on the same day that it is posted electronically. If
such a requirement is also being set aside, the contracting authority is to
include the required set-aside statement within the NPP.
6.1.3 Some claimant groups within comprehensive land claim settlement areas
maintain source lists of land claim enterprises and may provide a list of
potential suppliers upon request. It should be noted, however, that the
eligibility criteria of land claim enterprises may differ from the criteria for
an Aboriginal business under the PSAB.
7. DISPUTE MECHANISM
7.1.1 The bid dispute mechanism provided with respect to Canada's
international trade agreements and the Agreement on Internal Trade (AIT), is the
Canadian International Trade Tribunal (CITT). Arbitration Boards have been
established under several of the CLCAs as the appropriate dispute resolution
mechanism.
7.1.2 Options are being explored for a mechanism which will allow bidders to
question the bidding and contract award process under a set-aside. Until a
mechanism is in place, departments/agencies should be prepared to handle any
questions themselves under their own established departmental processes.
8. GUIDELINES AND PROCEDURES
8.1.1 It is the responsibility of the requisitioning office to decide if a
procurement opportunity is to be set aside under this program, including initial
determination of a mandatory requirement.
8.1.2 In instances where the value of a requisition exceeds the level of
contract signing authority allocated to the department, the requirement is sent
to a common service agency, such as PWGSC, for execution of the contracting
activity. Under these circumstances, the requisitioning office retains the
responsibility of clearly identifying on the requisition that the procurement is
to be set aside for competition by Aboriginal suppliers.
8.1.3 Although the process to set aside a procurement for Aboriginal business
is driven by a decision of the requisitioning office, the contracting authority
is expected to clearly document this decision on its own file. The requisition
should contain a statement indicating that the requirement is being set aside.
8.1.4 After the decision has been made by a requisitioning office to set
aside a procurement, the Access to Federal Procurement Directorate at Indian and
Northern Affairs Canada (INAC) is to be notified of the decision prior to the
actual contracting initiative for potential audit purposes. Responsibility for
sending the notice to AFPD/INAC lies with the contracting authority and the
notice should be sent before the solicitation document has been released.
Consulting and Audit Canada (CAC) is the auditing authority under contract to
INAC and will receive its instructions from INAC. CAC will contact the
contracting authority for further information if an audit is required. Pre-award
auditing is mandatory in requirements valued at, or in excess of, $2 million.
However, pre-award audits may be done for requirements below this value when a
need has been identified, either by the requisitioning entity, the contracting
authority, or INAC.
Notices are to be sent to:
Director
Access to Federal Procurement Directorate
Indian and Northern Affairs Canada
Fax: (819) 994-0445
and must contain the following information:
- Estimated dollar value
- Description of goods, services, or construction
- Solicitation number
- Closing date
- Buyer name, and phone/fax numbers.
- Name of Contractor in cases of ACAN (sole source, limited tender, etc.)
8.1.5 During the solicitation phase, and in any form of public advertising,
the contracting authority is to include a clear statement at the beginning of
the NPP identifying that the competition is being set aside for Aboriginal
businesses. The NPP should include the following statement:
"This requirement is set aside for Aboriginal suppliers in
accordance with the Procurement Strategy for Aboriginal Business."
"The bidder must certify in its bid that it is an Aboriginal
business or an eligible joint venture as defined within the Procurement
Strategy for Aboriginal Business."
NOTE: THE ABOVE ARE SUBJECT TO CHANGE PER CLAUSES DEVELOPED BY PWGSC.
This statement should also appear in all requests for bids and letters of
invitation (i.e. documents not published electronically and in the GBO), where
the bidding will be restricted to Aboriginal suppliers.
8.1.6 In accordance with the requirements of the strategy, the contracting
authority is to ensure that the full " Requirements for the Set-Aside
Program for Aboriginal Business "document is included with all
solicitation documents sent to potential suppliers for a requirement identified
as a set-aside. The completed certificate is to be included with the supplier's
bid at the time of bid closing. If it is not, the bid shall be considered
non-compliant. This document is available as an annex to Contracting Policy
Notice 1996-2, which is attached as an annex to these guidelines.
8.1.7 The responsibility for verifying the eligibility of bidders belongs to
Indian and Northern Affairs Canada (INAC) and its agent, CAC. Verification will
be done on a sampling basis.
8.1.8 Verification may be requested from INAC by the requisitioning office,
or the contracting authority, in particular cases where it wishes to do so.
8.2 Pre-Award Audits
8.2.1 Once INAC has received notification of the requirement being set-aside,
INAC will advise the contracting authority (if possible, before bid closing)
whether bidder eligibility is to be audited before award of the contract. The
auditing process can only begin when all the bids have been received and
evaluated by the contracting authority. The contracting authority will notify
INAC of the two best-assessed bidders, without disclosing the bid price. CAC
will perform the audit and deliver the results to INAC. In turn, INAC will then
transmit the information to the contracting authority on a priority basis so
that the contract may be awarded in a timely manner.
8.2.2 If an audit indicates that the best-assessed bidder is not in
compliance with the "Requirements for the Set-Aside Program for
Aboriginal Business" the contracting authority will consider the bid
non-compliant. The next best-assessed bidder would be awarded the contract if
the bid meets the required conditions.
8.3 Post-Award Audits
8.3.1 INAC should be advised immediately of the award of each set-aside
contract.
Notices are to be sent to:
Director
Access to Federal Procurement Directorate
Indian and Northern Affairs Canada
Fax: (819) 994-0445
and should contain the following information:
- Dollar value
- Solicitation number
- Buyer name, and phone/fax numbers.
- Name of Contractor, phone/fax numbers, and address
- Date of contract signing.
8.3.2 Successful contractors with set-aside contracts may be subject to
post-award audits of their eligibility and fulfillment of the other
requirements. Audits will be performed by CAC on a sampling basis. In addition,
the contracting authority may ask INAC to have any bidder or contractor on a
set-aside procurement audited if it believes that a contractor's eligibility
should be verified. It is possible that information received by the contracting
authority after the contract award may indicate a need to perform such an audit.
9. CONTRACT CLAUSES
Contracting authorities should ensure that contracts awarded under a
set-aside contain the necessary clauses to meet the conditions contained in the
"Requirements" document.
10. PSAB PROCEDURAL FLOW CHART
11. A CHECKLIST APPROACH
|
Action Performed?
|
Yes
|
No
|
1. |
It is the responsibility of the requisitioning
office, regardless of the dollar value, to determine if a procurement
opportunity meets the mandatory conditions to be set aside under this
Program. Alternatively, is the procurement suitable for a voluntary
set-aside under the Program? Has this decision been taken? |
|
|
2. |
Contracting authorities must clearly document
on the file that a decision has been made by the requisitioning office to
set a procurement aside for Aboriginal business. Has this task been
completed? |
|
|
3. |
Has notification of the decision to set aside
been provided to INAC for audit purposes? Notices must be sent to:
Director
Access to Federal Procurement Directorate
Indian and Northern Affairs Canada
Fax: (819) 994-0445
Notices must contain the following information:
- Requisitioning office
- Est. dollar value
- Description of goods, services, or construction
- Solicitation number
- Closing date
- Buyer name, and phone/fax numbers
|
|
|
4. |
For all requirements set aside, has the
contracting authority included a statement within the solicitation
document that clearly identifies the opportunity as a set-aside for
Aboriginal businesses? |
|
|
5. |
For requirements that will be posted through
electronic bidding and/or the Government Business Opportunities Bulletin,
has the contracting authority included a statement within the Notice of
Proposed Procurement that clearly identifies the competition as set aside
for Aboriginal businesses? |
|
|
6. |
Has the "Requirements" document been
included with all solicitation documents being sent to potential suppliers
for set-aside requirements? |
|
|
7. |
Has INAC informed the buyer, by the bid closing
date, of the decision to perform a pre-award audit of the contracting
opportunity? The pre-award auditing process can only begin once the
contracting authority has evaluated all of the bids. |
|
|
8. |
In instances where INAC has notified the
contracting authority that a pre-award audit is required, has the
contracting authority notified INAC of the 2 best assessed bidders for the
requirement, without disclosing the bid prices? |
|
|
9. |
Has INAC transmitted the information regarding
the pre-award audit findings to the contracting authority so the contract
may be awarded in a timely manner? |
|
|
10. |
Where the results of the audit have indicated
that the best assessed bidder was not in compliance with the
"Certification Requirements" established under the Aboriginal
set-aside program, has the contracting authority considered the bid
non-compliant and turned to the audit results of the next best assessed
bidder? |
|
|
11. |
Has notification of the contract award been
provided to INAC for audit purposes? Notices must be sent to:
Director
Access to Federal Procurement Directorate
Indian and Northern Affairs Canada
Fax: (819) 994-0445
Notices must contain the following information:
- Contract value
- Contract number
- Buyer name and phone/fax numbers
- Name of Contractor, phone/fax number and address
- Date of contract signing
|
|
|
12. |
Has the contracting authority ensured that
contract clauses required by the PSAB are included within the contract? |
|
|
|