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Appendix T - James Bay and Northern Quebec Agreement - Contract Priority

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Published April 1, 1992. The contents of this appendix contain both mandatory requirements as well as guidelines.

1. General

1.1 This appendix supplements the provisions of Section 4., Policy requirements, and article 4.2.22, Related requirements.

2. The objective of this policy is the continued implementation of the contract priority provisions of the James Bay and Northern Quebec Agreement (JBNQA) in relation to contracts created by projects initiated or conducted by the Crown or its agents, delegates, contractors or sub-contractors.

3. The policies and implementing measures shall, to the greatest extent possible, be designed to achieve the following objectives:

1. increase participation by Inuit firms in business opportunities in the economy of the Territory;
2. enhance the ability of Inuit firms to compete for and obtain government contracts;
3. award a fair share of government contracts in the Territory to qualified Inuit firms; and,
4. employ Inuit at a representative level in the workforce of the Territory.

4. List of Inuit Firms

4.1 Makivik, a corporation constituted as the Inuit Native Party for the purposes of the JBNQA, has the responsibility to prepare and maintain a comprehensive list of Inuit firms, which will include information on the goods and services those firms would be in a position to furnish in relation to actual or potential government contracts. Makivik shall undertake the necessary measures to ensure that this data is maintained and updated on a continuous basis.

4.2 Makivik shall ensure that the List of Inuit Firms is provided to the federal government departments and agencies active in the Territory.

5. Contracting procedures

5.1 Contracting authorities shall use the List of Inuit Firms for purposes of requesting Inuit firms to solicit bids, but shall not restrict the ability of any Inuit firm to submit bids for government contracts, in accordance with the Bid Invitation process where bids are invited by public notice.

5.2 The Crown, namely the Common Service Agents shall, upon the request of Makivik, provide reasonable assistance in familiarizing Inuit firms with the contracting procedures of the Crown.

5.3 In the planning stage of government contracts for the provision of goods, services, construction, or leases in the Territory, contracting authorities shall undertake all reasonable measures to provide opportunities to qualified Inuit firms to compete for and obtain such contracts. Contracting authorities should consider, but not necessarily be limited to, the following measures:

1. set the date, location, and terms and conditions for bidding so that Inuit firms may readily bid;
2. invite bids by commodity groupings to permit smaller and more specialized Inuit firms to bid;
3. permit bids for goods and services for a specified portion of a larger contract package to permit smaller and more specialized Inuit firms to bid;
4. design construction contracts in a way so as to increase the opportunity for smaller and more specialized Inuit firms to bid; and,
5. avoid artificially inflated employment skill requirements not essential to the fulfilment of the contract.

6. Bid Evaluation Criteria

6.1 Whenever practicable and consistent with sound procurement management, all of the following criteria, or as many as may be appropriate with respect to any particular government contract, shall be included in the bid evaluation criteria established by the contracting authority for the awarding of government contracts in the Territory:

1. the contribution by Inuit in carrying out the contract, which will include, but shall not be limited to, the employment of Inuit labour, the engagement of Inuit professional services or the use of Inuit suppliers;
2. creation of permanent head offices, administrative offices or other facilities in the Territory; and,
3. the undertaking of commitments, under the contract, with respect to on-the-job training or skills development for the Inuit.

7. Bid Solicitation from Supplier's Lists

7.1 Wherever practicable and consistent with sound procurement management, contracting authorities will first solicit bids from within the Territory.

7.2 Where the Crown intends to solicit bids for government contracts in the Territory, the contracting authority will make all possible attempts to award contracts to qualified Inuit firms.

7.3 Where the Crown intends to solicit bids for government contracts in the Territory, the contracting authority shall take all reasonable measures to determine if there are Inuit firms qualified to perform government contracts.

7.4 Where it is determined that there is a single firm within the Territory qualified to perform a government contract, the contracting authority will solicit that firm to submit a bid for the government contract. The contract may be awarded upon negotiation of acceptable terms and conditions.

7.5 Where the Crown intends to solicit bids from more than one qualified firm within the Territory, the contracting authority shall take all reasonable measures to determine if there are Inuit firms qualified to perform the government contract, and shall solicit bids from those Inuit firms.

7.6 Where a contract has been awarded it is the responsibility of the contracting authority to ensure that the contract document contains appropriate terms and conditions to make certain that sub-contractors to the contractor are also subject to the intent and the specific provisions of the contract.

8. Bid Invitation using Public Notice

8.1 Wherever practicable, and consistent with sound procurement management, contracting authorities will first invite bids from within the Territory.

8.2 Where the Crown intends to invite bids for government contracts to be performed in the Territory, contracting authorities shall take all reasonable measures to inform Inuit firms of such bids, and to provide Inuit firms with a fair and reasonable opportunity to submit bids.

8.3 Where the Crown intends to invite bids for government contracts to be performed in the Territory, the Bid Invitation process shall take into account the Bid Evaluation Criteria found in article 6.

8.4 Where a contract has been awarded, it is the responsibility of the contracting authority to ensure that the contract document contains appropriate terms and conditions to make certain that sub-contractors to the contractor are also subject to the intent and the specific provisions of the contract.

ANNEX A - Definitions

(a) Bid Invitation (appel d'offres) - means to call publicly for bids;

(b) Bid Solicitation (appel d'offres limité) - means to request bids from a limited number of businesses based on some form of prequalification or selection criteria;

(c) Crown (Canada) - means the Government of Canada, which shall be deemed to include all departments and departmental corporations listed in Schedules I and II, Part I of the Financial Administration Act, Chapter F-11, R.S.C. F-10,s.1;

(d) Government Contract (marché de l'État) - means any procurement contract between the Crown and a party other than the Crown, and includes:

1. contracts for the supply of goods;
2. construction contracts;
3. contracts for the supply of services; and
4. leases taken by the Crown.

(e) Inuit (Inuit) - means Inuit beneficiaries pursuant to the JBNQA;

(f) Inuit firm (entreprise inuit) - means an entity which complies with the legal requirements to carry on business in Northern Quebec, and which:

1. is a limited company with, in the case of a share-capital company, at least 51% of the company's voting shares beneficially owned by one or more Inuit, or with, in the case of a non-share capital company, at least 51% of the voting members being Inuit, or which is a subsidiary of such limited company with at least 51% of the subsidiary's voting shares owned by the company;
2. is a cooperative controlled by Inuit; or
3. is a sole source proprietorship owned by Inuit; or a partnership, joint venture or consortium, at least 50% of which is owned by the Inuit.

(g) JBNQA (CBJNQ) - The James Bay and Northern Quebec Agreement entered into on November 11, 1975, as amended from time to time in accordance with paragraph 2.15 thereof;

(h) JBNQA Implementation Agreement (1990) (Accord de mise en oeuvre de la CBJNQ (1990)) - Agreement respecting the implementation of the JBNQA between Her Majesty the Queen in right of Canada and Makivik corporation entered into on September 12, 1990

(i) Makivik (Makivik) - Makivik Corporation, the corporation established by the Act to Establish the Makivik Corporation (R.S.Q., ch. S-18.1), and constituted as the Inuit Native Party for purposes of the JBNQA pursuant to paragraph 1.11 thereof;

(j) Representative level of employment (niveau d'emploi représentatif) - means a level of Inuit employment in Northern Quebec that reflects the ratio of Inuit to the total population of the Territory;

(k) Territory (territoire) - means the area in the province of Quebec north of the 55th parallel of latitude, as delineated in the JBNQA.