9845.1 final art eng revised - government of nunavut procedures.pdf · 3 w ith ex cpo nfgn ra sw lu...

Procurement Procedures

Reference Guide

kkNNoo88ii ZZ??mm44ffii99ll WWpp55yyCC66tt44ff55Nunalingni Kavamatkunnilu PivikhaqautikkutDepartment of Community and Government ServicesMinistère des Services communautaires et gouvernementaux

Guiding You Benefiting Nunavummiut

VOLUME I, EDITION I

10029 Procurement Procedures:9845.1 final art eng_revised 7/29/09 2:29 PM

FOREWORD

iPurchasing, Logistics & Contract Support Services [email protected]

The Department of Community and Government Services (CGS) ispleased to present this Reference Guide to Acquiring Goods andServices with Public Money, which is intended as an overview of theGovernment of Nunavut’s procurement policies and practices. TheGuide was developed as part of the Department’s ongoing commit-ment to communicate and simplify the services itprovides across the Government of Nunavut(GN). In addition, it represents an initial step of abroader initiative under Purchasing, Logistics &Contract Support Services, to work in close con-sultation with GN departments to enhance clientservices, planning and delivery of procurementservices.

CGS intends to update the Guide periodicallyto ensure it reflects current practice and servesas a helpful reference for GN employees. Yourcomments and feedback are appreciated and willbe considered for future versions of the Guide.

Thank you.

Mission

The Department ofCommunity & GovernmentServices works inpartnership withmunicipal governmentsto enhance social andeconomic opportunitiesin self-governing,sustainable communities,thereby contributing toNunavut’s economicgrowth and socialwell-being; CGS ensureseffective planning anddelivery of the governmentservices for which it isresponsible.

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TABLE OF CONTENTS

Purchasing, Logistics & Contract Support Services [email protected]

Purpose 1Objectives 2Ethics 4Nunavummi Nangminiqaqtunik Ikajuuti (NNI Policy) 5Procurement Methods 6Supply Management 13Standard Contracts 17Sole Sourcing 19Standing Offers 20Contract Award 21Reporting Requirements 23

List of Appendices 24

Authorities & Responsibilities 25Introduction 25Contract Law 25Government of Nunavut 26Nunavummi Nangminiqaqtunik Ikajuuti (NNI Policy) 27Contract Authorities 29Department of Community & Government Services 32

Ethics 34

Source Documents 36GN Contract Regulations 36Nunavummi Nangminiqaqtunik Ikajuuti (NNI Policy) 37GN Contract Procedures Manual 38

Contact List 42

Common Terminology 43


PURPOSE

1Purchasing, Logistics & Contract Support Services [email protected]

This Guide is an introduction to the Government of Nunavut’s policiesand practices for acquiring goods and services to run governmentoperations and to deliver programs and services for Nunavummiut.Meeting these requirements by contractingwith outside suppliers is often referred to asprocurement. This process includes the range ofactivities from identifying departments’ needs todetermining the best way of meeting those needsand extends to deciding on the best value overalland contracting with the selected supplier.

This Guide will provide readers with a helpfulunderstanding of the GN’s approach toprocurement and contracting and help themdetermine when and where to seek additionalinformation.

Inquiriesmay be directed to:

Senior Manager,Purchasing, Logistics &Contract Support ServicesDepartment of Community& Government Services(867) [email protected]


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OBJECTIVES


The Department of Community & Government Services (CGS) plays alead role in meeting the GN’s requirements for goods and services. Inparticular, it is recognized as a contract authority1 for securing goodsand most services needed by the GN. With this expertise, CGS worksclosely with other GN departments to provide advice and guidance onprocurement and contracting practices.

Services offered by CGS’ Purchasing, Logistics & Contract SupportServices include:• Technical advice concerning the application of GN Procurementregulations and policies;

• Coordination with the Department of Justice to obtain legal reviewsand opinions concerning contract law;

• Management of the procurement process for a wide range of goodsand services (including sealift logistical support services);

• Administration of tenders and proposals for GN departments and/orassistance as required;

• Active GN liaison with NNI Secretariat and participation on the NNIworking group;

• Provision of guidance and support to GN departments with respectto proposal evaluations and bid adjustments;

• Centralized reporting on the GN’s contracting and procurementactivities;

• Workshops and presentations including training and development;• Setting of the GN’s protocol, procedures and practices with respectto procurement and contracting;

• Logistics and management of sealift operations for the GN;• Tendering and contracting for Air Charter Services.

1 This term is defined later in the Guide.


OBJECTIVES


CGS is committed to ensuring fair and ethical practices in carrying outits procurement responsibilities. This is accomplished through effectivepolicies and procedures aimed at:• Obtaining the best value for Nunavummiut;• Creating an open, fair and transparent environment for suppliers;• Providing appropriate recognition of Inuit, local and Nunavutinterests;

• Setting high standards for its service delivery;• Maintaining current and accurate information on costs, availability,and industry trends; and

• Establishing and maintaining efficient systems and processes fortimely delivery of quality products and services.


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ETHICS


Each year, the GN enters into many contractswith suppliers for a wide array of goods andservices – anything from office supplies tospecialized medical equipment and more. Likeall consumers, the public expects that the GN willobtain the best value with the money availableand that any individuals making procurementdecisions on behalf of the GN will ensure theappropriate process steps are taken. When work-ing for the government, employees also have aresponsibility to put the interests of the publicahead of their own. Therefore a GN employeemust ensure he or she is free of bias and is notinfluenced by outside factors so that decisionscan be shown to be fair and objective. It isimportant that all employees – new and old –

know what is expected of them while carrying out such responsibilitiesso that the public’s interests and confidence is maintained.Common expectations include:

• Safeguarding or protecting confidential information;• Avoiding real and perceived conflicts of interest; and• Operating in compliance with laws and authorities.

For further information, these responsibilities are discussed inmore detail in the Appendix under Ethics. Specific questions concern-ing employees’ responsibilities under procurement may be directed toCGS, while questions related to overall responsibilities when servingthe public interest may be directed to the Department of HumanResources.

Pijitsirniq:The Concept of Serving

In carrying out theirresponsibilities all GNstaff will endeavour toserve each other and thecommunity at large to thebest of their abilities.

~Pinasuaqtavut, 2005.


NUNAVUMMI NANGMINIQAQTUNIKIKAJUUTI (NNI POLICY)


In the year 2000, the Government of Nunavut (GN) established theNNI Policy as a tool to facilitate the economic development of Nunavutand to encourage representative participation of Inuit and northerninterests in meeting the GN’s requirements for goods and services. ThePolicy was developed in close collaboration with Nunavut TunngavikInc. (NTI) and is based on the obligations set out in the Nunavut LandClaims Agreement (NLCA). The NNI Policy also respects the GN’sresponsibilities as a government to represent the interests of allNunavummiut.

Under the NNI Policy, all qualified Inuit-owned, local andNunavut-based businesses obtain a favourable adjustment of 7% foreach criteria met (to a maximum of 21%) to ensure competitivenesswhen assessed against bids from other qualified bidders. The bidadjustment partially offsets the higher costs of doing business in thenorth and also serves to build further capacity within the Nunavuteconomy.

The Policy is discussed in more detail in the Authorities andResponsibilities section of this Guide. Additional information may alsobe obtained from the NNI Secretariat under the Department ofEconomic Development & Transportation2.

2 Contact information for the NNI Secretariat is provided in the Appendix entitled Contacts.


Goods and services that the GN needs may be purchased in differentways depending on the value and type. Not all employees will beinvolved in every aspect of procurement and, in fact, some may havevery limited involvement given their roles. Therefore, this section is abrief introduction to give employees a general understanding of how

the GN obtains – or procures – goods andservices. Further information may be obtained asneeded from Purchasing, Logistics & ContractSupport Services.

DUTIES & REQUIREMENTSA GN employee is a public officer and has a dutyto ensure that all activities are handled fairly andobjectively to serve the best interests ofNunavummiut. In terms of spending publicmoney, this also means ensuring the best value isobtained through a competitive process whilealso respecting the GN’s NNI Policy. The NNIPolicy applies regardless of the contract value3

and serves to encourage the participation oflocal, Nunavut-based and Inuit-owned businesses in supplying theGN’s requirements for goods and services. All GN employees who areinvolved in procurement must be aware of the NNI Policy.

The GN’s contracting and procurement activities must also beconducted in a manner which is consistent with the legal andauthoritative requirements under the Financial Administrative Act(FAA) and the GN’s Contract Regulations. The FAA is a critical pieceof legislation as it controls the expenditures of public monies.Therefore, contracts that are funded with GN monies must follow theprovisions of the FAA and its accompanying regulations. The FinancialAdministration Manual (FAM) is a companion document to the FAAand comprises a series of directives which have been formallyapproved by the Financial Management Board in its capacity underthe FAA. The GN’s Contract Regulations under the FAA are included in

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PROCUREMENT METHODS & TOOLS


Procurement

The process of identifyingthe need for a good orservice, locating andselecting suppliers,obtaining competitiveprices and other contractterms and buying the goodor service.

3 With the exception of GN contracts which entail insurance, emergency or employment services.




FAM under Directive 99044. This directive is a “must” read for all GNemployees involved with contract activities. FAM Directives 808 and808-1 cover government contracts and tenders and proposals. Thesesections are also a "must' read.

Under the GN’s Contract Regulations, a contract to obtain goodsand services should not be made without first tendering or obtainingcompetitive bids from different suppliers. Thereare few exceptions to this requirement.

The first is the ability of Executive Council(usually referred to as Cabinet) to enter intocontracts directly or to instruct a publicofficer to do so. These are called "Negotiated Contracts".

The second type of exception called "Sole Source Contracts",involves contracts for goods and services valued at less than$5,000 and contracts for architectural and engineering servicesvalued at less $25,000.

A third type of exception also called "Sole Source Contracts",concerns those situations where any delay taken to obtain com-petitive bids would either be harmful given the urgency of therequirement or not be effective as only one supplier can crediblymeet the GN’s requirement.

In all three exceptions, it is not necessary to request competitive bidsbefore entering into a contract. All three exceptions require seniorlevels of approval. Only Cabinet can approve negotiated contracts andDeputy Ministers must approve the third type - sole source. It is alwaysthe responsibility of a public officer to ensure that good value isobtained with public money.

All contracts must betendered except undercertain circumstances.

4 The Financial Administration Act (FAA) and the Financial Administration Manual (FAM) are available to GNemployees by accessing the Department of Finance intranet http://finance/.


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Two methods that departments frequently use to fulfill many of theirrequirements are local contract authorities and requisition orders. Bothare addressed here.

LOCAL CONTRACT AUTHORITYThe most common method of obtaining goods and services is through

a local contract authority (LCA). An LCA is aduty that has been assigned to a GN employeeand is carried out using a standard LCA form.This duty is restricted to purchases within theterritory – local purchases – to a maximum valueof $5,0005.

The maximum value for an LCA that anemployee can sign also depends on the dollarvalue of the employee’s signing limit. Whenevera GN employee has been given a signing limitwhich is less than $5,000, this lower limit wouldapply to all LCA forms the employee may sign

as well. Each department maintains information on its employees’signing limits – otherwise called signing authorities. If there is anyuncertainty, an employee can confirm his or her signing authority withthe appropriate department’s Finance area. Once signed by a GNemployee and the supplier, the LCA form constitutes a legal contractfor the good or service identified.

LCAs are generally used for local purchases of goods, transportationservices and communication services.Responsibility for obtaining other specializedservices to meet the GN’s legal, construction,insurance and real property lease requirementshave been assigned to specific Ministers and theirDeputy Ministers. Therefore these servicesmay only be obtained through an LCA if theappropriate Minister or Deputy Minister hasdirectly delegated the responsibility for obtainingthat type of service. As well, any services thatrequire a detailed description are more

Local ContractAuthority (LCA)

An LCA may be used forlocal purchases only to amaximum value of $5,000(including GST).

Legal Services

The Minister and DeputyMinister of Justice are rec-ognized as “contractauthorities” for engaginglegal services.

5 Including applicable taxes.




appropriately addressed through a service contract form rather than aLCA regardless of the contract value. Service contracts are addressedin the following section.

REQUISITION ORDERSOutside of the LCA process, CGS plays a lead role in obtaining goodsto meet the GN’s requirements. As well, CGS is responsible for obtain-ing many services for the GN.

Through its role as the GN’s primarypurchaser, CGS has a great deal of internalexpertise on procurement issues and can provideGN departments with advice and guidance asneeded. Where GN departments decide to pursuecertain activities directly, they should consultCGS first to ensure that they are fully aware ofthe requirements including NNI Policyconsiderations.

To obtain CGS’ services in fulfilling an orderfor a good or service, the department mustcomplete a requisition order (otherwise known as an RSN). The initiat-ing department is responsible for identifying the specifications andproviding the appropriate coding as well as ensuring that the commit-ment is entered. CGS’ buyers will manage the process of fulfilling thedepartment’s requirement including making Requests for Quotations(RFQ) and determining the lowest price after applying the appropriateadjustments under the NNI Policy. The buyer will then issue a purchaseorder (for goods) or a contract (for services) to the supplier. The initi-ating department is responsible for ensuring that the goods orderedmeet the specifications or, in the case of services, that the work iscompleted as contracted.

It is important that the CGS buyers have sufficient notice in orderto fulfill each department’s request. Often the notice period – or leadtime – can be quite long and varies depending on the complexity ofthe order, the availability of supply and the required shipping method.For instance, goods that need to be manufactured to meet the GN’sspecifications can understandably take several months not includingtransportation time. This is addressed further under the section entitledSupply Management

Request for Quotation

An RFQ is typically issuedby a buyer when the goodor service is well definedand readily available.


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REQUEST FOR TENDER & REQUEST FOR PROPOSALThe needs of the GN are often greater and more complex than whatmay be obtained through an LCA. Therefore the GN – and, inparticular, CGS – relies on other procurement methods to obtain infor-mation from the market concerning required goods and services. Chief

among these are Requests for Tenders6 (RFT)and Requests for Proposals (RFP). These twomethods differ in very specific ways.

An RFT is used when the departmentclearly knows what it wants. The specificationsin the RFT are very precise and, in fact, if asupplier is unable to meet those exact require-ments, its response would be rejected. Anexample would be an RFT issued for anindustrial-style stove suitable for high volumecommercial use as in a hospital or correctionalfacility. A response which offered to supply aregular household stove would not be suitableand would therefore be rejected. As all qualified

responses to an RFT contain the same information in terms of thegood or service to be provided, then the only factor that can beassessed is price (after appropriate adjustments under the NNI Policy).It is assumed that, all other factors considered equal, the lowest (NNIadjusted) price represents the best value for Nunavummiut and wouldtherefore be selected.

An RFP, on the other hand, is used when the department hasidentified a need but does not know exactly how to fulfill it.An RFP asks suppliers to set out their approach – or methodology –towards addressing the departmental requirement. An example wouldbe an RFP to survey Nunavummiut on proposed legislation. This workcould be approached in a number of different ways. Therefore theevaluation of responses considers many factors – not just price – todetermine the best value. This would include such considerations asmethodology, experience, schedule, fees (or costs) and appropriateadjustments for local, Inuit and Nunavut content. The evaluationcriteria and weighting must be specified in advance in the RFP and

Request for Tender

An RFT should be issuedwhen the good or serviceneeded to fulfill thedepartmental requirementcan be clearly specifiedin advance.

6 May also be referred to as an Invitation to Tender.




precisely followed in determining best value forNunavummiut.

Each procurement method is used to meet aspecific purpose and is therefore treated some-what differently. Further, a RFT or RFP may alsobe issued on an invitational basis such that onlyknown qualified suppliers are invited to respondor on a public basis which provides an opportuni-ty for all suppliers (including new or unknownsuppliers) to respond. Questions may be directedto Purchasing, Logistics & Contract Support Services.

REQUEST FOR INFORMATION & EXPRESSION OF INTERESTAt times a department may want to obtain information from themarket to establish a list of qualified suppliers or to determine whattypes of goods or services may be available. This does not result inany commitment although the information gained may be relied uponlater when issuing an RFT or RFP. The two methods commonly usedare Request for Information (RFI) or Expression of Interest (EOI). Bothare exploratory.

An RFI is often used when a department identifies a requirementand wants to see what, if anything, may exist in the market to addressit. The RFI process will not necessarily result in a direct purchase butshould lead to an RFT or RFP.

An EOI is used as an initial stage of a process that could lead toan RFT or RFP. The EOI asks interested suppliersto respond in writing to express their interest andability to supply particular goods or services. Insome situations, an EOI may be used to pre-qualify or short-list suppliers who are then invitedto respond to a subsequent RFT or RFP.

The table on the following page provides aquick summary of the GN’s contract policies andprocedures. Specific questions may be directedto Purchasing, Logistics & Contract SupportServices.

Request for Information &Expression of Interest

An RFI and EOI are similarin that they are issued toobtain information fromthe market for futurereference.

Request for Proposal

An RFP is best used whenthe departmental need isknown but it is not imme-diately clear how it wouldbest be fulfilled.


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PROCUREMENT SUMMARY

Requirement Estimated Value Method Form ContractGoods Under $5,000 Sole Source By phone LCA

$5,000 to $25,000 Invitation RFT POOver $25,000 Advertise RFT PO

Services(including Under $5,000 Sole Source RFT LCAconsulting) $5,000 to $25,000 Invitation RFP SC

Over $25,000 Advertise RFP CSMaintenance Under $5,000 One Informal quotes By phone LCA / SC/

Work Order$5,000 to $100,000 Invitation RFT MCOver $100,000 Advertise RFT MC

Construction Under $5,000 Informal quotes RFT LCA / SC/Work Order

$5,000 to $100,000 Invitation RFT MCOver $100,000 Advertise RFT C

ArchitecturalEngineering Under $25,000 Sole Source RFT AE Short

$25,000 to $100,000 Invitation RFP AE LongOver $100,000 Advertise RFP AE Long

Note: Non-standard contracts greater than $50,000must undergo a legal review which CGS will coordinatewith the GN’s Department of Justice.

LegendLCA Local Contract AuthorityPO Purchase OrderSC Service ContractMC Request for Tenders Construction or Services Contract – Minor WorksC Construction Tender and Contract Document – Major WorksAE Short Architectural / Engineering Agreement – Short FormAE Long Architectural / Engineering Agreement – Long FormCS Pro-Forma Agreement – Consultant Services


SUPPLY MANAGEMENT


CGS is the GN’s primary purchaser and, throughits experienced buyers, has the in-houseknowledge necessary to secure goods andservices to meet the GN’s requirements. Thisincludes expertise in all procurement methodsand tools (as outlined earlier in this Guide) aswell as supplier relations, shipping considerationsand overall logistics. A CGS buyer coordinatesthe overall procurement process upon receipt ofa completed requisition order (RSN) from a GNdepartment. At each stage, however, there areissues that are outside CGS’ direct control whichcan lead to unanticipated delays. Therefore it isimportant that GN departments plan ahead andprovide sufficient lead time for CGS to meet theirprocurement needs.

The amount of lead time depends on many factors. Most typicallythese include the type of good or service, availability, location andshipping method. Specialized or non-standard items can take longer tosecure, particularly if they must be manufactured or modified to meetspecific GN requirements. For instance, mobile heavy equipment suchas a fire truck could require as much as eight months’ notice, whereasa stock item like a laser printer may be obtained within an eight weektimeframe and, under ideal circumstances, possibly as little as threeweeks. In each case, the CGS buyer must follow the same process toensure the appropriate steps are taken whenspending public money.

When fulfilling a departmental request, aCGS buyer will follow the following steps:

1. Process the RSNRSNs are actioned as received with the majoritybeing processed within two weeks. While everyeffort is made to ensure a quicker turnaround,delays may be encountered where the RSN is notcomplete or specifications are unclear.

Advance planningis critical to ensuresufficient lead time forCGS buyers to meetdepartmental requests.

Essential Requirements

• each RSN must beproperly entered andauthorized;

• specifications must beclear and complete.


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SUPPLY MANAGEMENT


2. TenderingThere are established minimum periods for which a request for tender(or proposal) must remain open depending on the value of therequirement. Other considerations impacting the tender period includethe method (invitational or advertised), type (good, service orconstruction) and particulars of the requirement. Overall, there mustbe sufficient time for suppliers to prepare an appropriate response.

3. Evaluation & Contract AwardAll submissions received by the deadline must be reviewed andevaluated according to established guidelines and criteria. Such criteriamust be clearly identified well in advance of the deadline along with

the relative weighting. The evaluation processalso entails the application of adjustments forlocal, Inuit-owned and Nunavut-based businessesunder the GN’s NNI Policy. As presented earlierin this Guide, qualifying tenders are then awardedon the basis of lowest price; whereas proposalsare awarded on the basis of best value.

The time needed to evaluate and award acontract may vary according to the complexityof the requirement, number of qualifyingsubmissions and other considerations. This isaddressed in more detail later.

4. ManufacturingAny GN requirement that must be met through the manufacture ormodification of goods is subject to the supplier’s schedule. Advanceplanning is therefore critical particularly when delivery must becoordinated with sealift deadlines. CGS should be notified as early aspossible to accommodate such requirements.

5. Transportation to Carrier & MarshallingAllowance must be made for transporting goods to a carrier fornorthern travel. Often there are additional cartage requirements toensure safe transport. In the case of dangerous goods, there arespecific handling, storage and documentation requirements.

A contract is a “set ofpromises that can beenforced by a court”.

~ A Plain Language Guide tothe Nunavut Land ClaimsAgreement.


SUPPLY MANAGEMENT


Under existing arrangements, a minimum often days must be provided to marshal andconsolidate regular goods for shipment. Specialitems may require additional time.

6. Northern Transportation & DeliveryThe two modes of transporting goods to Nunavutcommunities are sealift and air cargo.

While sealift remains the most economicalmeans of transporting goods, it is not the mostpractical for meeting urgent requirements(e.g. emergency fuel supplies) or time-sensitivedeliveries (e.g. live mealworms). Otherwise,sealift remains a significant means of supply formany Nunavut communities.

Each year, CGS sends out a notice of thecut-off dates for sealift so that departments canplan accordingly. Yet estimated sailing times toeach community can be subject to unforeseenmatters such as weather or mechanical delays.Even under ideal conditions, sealift can takeseveral weeks.

Air cargo has become increasingly importantto accommodate the needs of Nunavut’s growingcommunities. The vast majority of passengerflights originating outside Nunavut have a cargo component. Inaddition, the major carriers also provide additional flights strictly forcargo. Regular flights fulfill essential requirements such as mail servic-es and fresh produce and are critical for meeting ongoing requirementsthroughout the year across Nunavut.

Carriers can also reschedule the shipment of goods to addressthe relative priorities and critical needs of all its clients. As well,heightened need for passenger travel can limit the amount of cargospace on flights at any time. This can be especially difficult for thosecommunities that do not have regular daily flights and therefore facefurther delays when cargo is deferred – or “bumped” – to addressother priorities.

Expensive but fast

Economical but slow


It is also important to note that arrival in a community does notalways mean that goods are readily available to the client department.At times, the sorting of cargo can be delayed at the arrival point dueto increased loads such as through the holiday periods or due tologistics such as transporting goods from the ship to the high water

mark. All this can take time which is oftenoutside CGS’ direct control.

To summarize, the procurement processto obtain a good or service to meet a wellidentified and approved requirement can take afew weeks to several months. Each departmentneeds to consider its requirements well inadvance and, whenever possible, early in the

fiscal year in which the expenditure is intended to be made. Forspecial requirements, the planning horizon may even be longer.Departments should contact Purchasing, Logistics & Contract SupportServices to obtain additional information to determine the appropriatelead time to address departmental requirements.

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SUPPLY MANAGEMENT



STANDARD CONTRACTS


Just as there are procurement methods to suitspecific requirements, there are also types ofcontracts which should be used for particularcircumstances. These contracts are known as“standard contracts” as they contain terms andconditions which have been approved by theGN’s Department of Justice. Any changes tothese approved terms and conditions maychange the level of risk to the GN. Thereforenon-standard contracts over $50,000 must bereferred to CGS’ Purchasing, Logistics & ContractSupport Services. CGS will then coordinate alegal review to determine whether proposedrevisions are acceptable. For instance, a suppliermay not agree with the termination clause of astandard contract. In which case, any revisionwould need to be addressed with CGS directly.

At times, a standard contract may be revisedto reflect additional requirements. As well, newstandard contracts may be developed for use inmeeting certain recurring needs. For instance, aservice contract was initially considered non-standard. The service contract has been discussed within CGS’Contract Support Services and subject to review by the Department ofJustice. It is now considered a standard contract. CGS maintains allstandard contracts and can provide advice as to their use.

As noted earlier on page 12, there are several standardcontracts. Typically, these include:• Service Contract;• Request for Tenders Construction or Services Contract – Minor Works;• Construction Tender and Contract Document – Major Works;• Architectural / Engineering Agreement – Short Form;• Architectural / Engineering Agreement – Long Form; and• Pro-Forma Agreement – Consultant Services;• Air Charter Request for Tender and Contract;• Goods Request for Tender and Purchase Order Contract;• Request for Standing Offers.

Standard Contracts

CGS maintains allstandard contract formsand coordinates the legalreview of any proposednon-standard termsand conditions.


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STANDARD CONTRACTS


This is not an exhaustive list as other standard contracts maybe under development but it represents the most commonly usedcontracts. Much of the differences between them relate to thecomplexity of the requirement which then impacts the level of detailthat must be set out within the body of the contract. For instance,certain construction or architectural work may be addressed throughphases or stages of work and this must be well documented in thecontract. As well, larger complex projects are usually associatedwith more risk and therefore there may be more conditions imposedto ensure that the interests of both parties including the GN areprotected. This can include such matters as the use of subcontractors,amount of liability insurance and warranties among others.

All contracting for the procurement of goods and services followcommon law principles and are governed by the GN’s authoritativeframework. These are discussed in further detail under the Authoritiesand Responsibilities section of this Guide.

This is a brief overview of the contracts that the GN typicallyenters into with suppliers. However, it does not reflect the full breadthof contractual arrangements that may be encountered in the course ofmeeting GN needs. Departments can consult CGS at any time forfurther information and for assistance in identifying the relative risksand specific terms and conditions that may be appropriate to addressparticular situations. CGS’ involvement should take place well inadvance of any agreements being made and CGS experts can managethe contract process for GN departments upon request.


SOLE SOURCING


Sole sourcing is a contracting method whereby the GN contractsdirectly with a supplier without going to tender. As this practicerestricts the competitive process, sole sourcing may only be consid-ered under certain circumstances such as matters involving:• great urgency and significance such that any delay may proveharmful to the public;

• limited availability such that only one credible supplier can fulfill therequirement; or

• restricted value such that the contract is less than $5,000 for generalgoods and services or less than $25,000 for architectural andengineering services.

In all cases, the Deputy Minister responsible must provide arecommendation with supporting rationale for entering into a contracton this basis. The recommendation is then subject to approval by theDeputy Minister of CGS. Any department that engages in sole sourcingmust also report annually on its contracting practices in this regard.Reporting requirements are addressed later in this Guide. For furtherinformation, please contact Purchasing, Logistics & Contract SupportServices.

The GN believes we receive the best value for our dollars spentthrough the competitive bidding process. Some sole sourcing willalways be necessary. Legitimate sole sourcing due to emergencies andlimited availability of some goods and services, is appropriate. Manysole source situations can be avoided with proper management plan-ning and improved understanding of the procurement process. CGSProcurement Section can assist Departments with planning to avoidsole source situations.


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STANDING OFFER AGREEMENTS


The government may enter into a standing offer arrangement with apotential supplier to provide goods or services under specified termsand conditions including pricing. However, this does not form acontract until an order is placed against the “standing offer”. Sucharrangements are often made to reduce delays in fulfilling repetitiveorders for the same goods or well defined services.

In contrast, an “as and when” contract is a contractual arrangementwith a supplier for a specific term and price. The GN typically entersinto such contracts for maintenance services.

For further information, please contact Purchasing, Logistics &Contract Support Services.


CONTRACT AWARD


All submissions received in advance of theclosing deadline will be subject to a formalreview process. An initial review is provided todetermine whether a submission is bothresponsive and responsible. A submission is con-sidered responsive if it substantially meets all thematerial requirements of the request, whileresponsible refers to the contractor’s ability toreliably perform under the contract and toaddress the requirements with integrity. Onlysubmissions that are assessed as both responsiveand responsible will be provided further consideration.

Submissions in response to a request for proposal will beevaluated against the criteria that were outlined in the request forproposal (RFP) document. Such criteria typicallyconsider the breadth and depth of experience ofthe project team, the proposed fee structure andlevel of Inuit participation in the proposed work.Other factors may also be used but must beidentified well in advance of the deadline forsubmissions along with the relative weighting ofthe criteria.

Submissions in response to a request fortender (RFT) are reviewed to determine whetherthey comply with the tender specifications. If not,they are rejected. Price should be the only factorthat sets qualifying submissions apart.

NUNAVUMMI NANGMINIQAQTUNIK IKAJUUTI (NNI POLICY)The NNI Policy applies to all contracts with the exception of insurance,employment and emergency services. The Policy serves to encouragegreater participation from Nunavut Businesss7 and Inuit Firms7. Anadjustment of 7% is applied for each of the three qualifying factors –specifically, Inuit owned, local and Nunavut based. The maximumadjustment is 21% and serves to reduce the bid price for the purposeof comparative evaluation.

Responsiveis a term defined in theGN’s Contract Regulationsand indicates whether atender meets all thematerial requirementsof a RFT.

ResponsibleIs a term defined in theGN’s Contract Regulationsand refers to the tenderer’sability to performreliably and address therequirements of the RFT.

7 As defined under NNI Policy


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CONTRACT AWARD


Contract award decisions may be affected by the adjusted bidprice. For example, in the case of a request for tender, the adjustmentmay result in a supplier that did not originally have the lowest bidbeing awarded the contract. Therefore the NNI bid adjustments havereal impacts and must be handled appropriately.

As a result of the 2003 comprehensive review of the NNI Policy, arecommendation was made to establish an NNI Secretariat to providefollow-up and training on the NNI Policy and to ensure consistency ofapplication and reporting. The Secretariat can assist with questionsyou may have regarding the NNI Policy and its application. The NNISecretariat also oversees the appeal process.

Overall the GN’s contract policies including the NNI Policy areaimed at ensuring that practices are fair and decisions are sound.Should you have any questions, please contact Purchasing, Logistics& Contract Support Services.


REPORTING REQUIREMENTS


Annual reporting of contract activities is consistentwith the government’s approach of transparencyand openness for Nunavummiut and serves topromote greater accountability overall. At thesame time, the GN also has a responsibility torespect the competitive interests of supplierswhen addressing disclosure requirements andtherefore must effectively balance these competinginterests. The GN’s reporting practices are alsosubject to legislation and, in particular, the Accessto Information & Protection of Privacy Act (ATIPP)which prevents the unauthorized collection, useor disclosure of personal information.

Each GN department has a duty to maintainaccurate records and report its activities to CGSperiodically. While CGS consolidates suchinformation for tabling in the Legislative Assemblyby its Minister, the responsibility to provide furtherdetail still resides with the respective departments.To-date, public reporting of contract activities has been categorizedby type and method and includes such details as the purpose, supplier,contract amount, department and community.

Complete, accurate and timely reporting is also essential forNNI monitoring which determines how successful the GN has been inmeeting its commitments to enhance Inuit and northern participationin the Nunavut economy. This information is subject to regular reviewby the NTI working group and is the basis for conclusions in this regard.

Accurate recordkeeping and reporting are also necessary to meetaudit requirements and to verify that contract activities were properlyhandled within the GN’s legal and authoritative framework.

CGS has recently developed a new Contract Reporting Database(CRDB) to improve the ease and consistency of reporting overall.Training opportunities with respect to the CRDB are available to depart-ments as required and upon request.

Questions regarding reporting requirements may be directed toPurchasing, Logistics & Contract Support Services.

Accountability

“Accountability refers to theobligation to answer forprocurement results andfor the way that procure-ment responsibilities aredelegated. Accountability,unlike responsibility, can-not be delegated.”

~ A Guide Toward DevelopingProcurement Bylaws,Government of Ontario,


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LIST OF APPENDICES


Authorities & ResponsibilitiesIntroductionContract LawGovernment of NunavutNunavummi Nangminiqaqtunik Ikajuuti (NNI Policy)Contract AuthoritiesDepartment of Community & Government Services

Ethics

RequirementsGN Contract RegulationsNunavummi Nangminiqaqtunik Ikajuuti (NNI Policy)GN Contract Procedures Manual

Contact List

Common Terminology


APPENDIXAUTHORITIES & RESPONSIBILITIES


INTRODUCTIONThe Government of Nunavut (GN) enters into contractualarrangements with suppliers in order to procure goods and serviceswhich are vital to the running of government operations and theprovision of programs and services for Nunavummiut. This sectionprovides an overview of the legal and authoritative framework in whichthese activities are carried out.

Contracting activities by the GN are guidedby various formal and informal processes.Formal processes include the application of theNunavut Land Claim Agreement (NLCA),Nunavut Acts and regulations as well asGovernment of Nunavut policies. In addition,some Federal legislation applies to all Nunavutcontracts and must be observed whether or not itis specifically referenced in the contract. Finally there is the body ofCanadian common law which affects all contracting in Nunavut as itdoes in all of Canada with the exception of Quebec8.

CONTRACT LAWEffective procurement in the public sector is a balance between theprinciples of fairness and transparency, business considerations, andobligations imposed by law. A completed procurement cycle results ina contractual agreement between the government and an outside partyfor the provision of goods and services in exchange for some form ofconsideration. Common law with respect to contracts applies to boththe final agreement and the competitive processes that lead up to thefinal agreement9.

When contracting for goods and services, three essential elementsare needed to ensure a legally binding contract. They are: parties,price and subject. In other words, it is critical that a contract clearlysets out who is supposed to do what and for how much. Anyuncertainty may make the contract unenforceable.

Common Lawis based on the decisions –or precedents – made in acourt of law.

8 “Civil law is the legal system applicable in the province of Quebec for private law” (e.g. contract law),Fundamentals of Contract Law: Negotiating and Drafting Major Business Agreements, Purchasing ManagementAssociation of Canada, 2002.

9 Purchasing Handbook, A Guide to Acquiring Goods and Services, Government of British Columbia, page 51.


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Parties: This element refers to the fact that only legal entities – mean-ing individuals, partnerships, incorporated societies orcompanies – have the ability to enter into a contractualagreement with the GN. In the event of a dispute, a claimcan not be made against a non-existent party. Therefore it isimportant to verify the legal form and name of the partybefore entering into a contract with an outside party.

Price: This element is generally well established between the partiesbut it is important to note that an agreement to determinethe price at a later stage does not constitute a contract. Priceis a key element of any contract and both parties must knowwhat has been agreed in advance of any responsibilitiesunder a contract being performed.

Subject: This element emphasizes the need to clearly identifyexpectations and requirements of the goods to be deliveredor the services to be performed under the contract. Allcritical aspects including deadlines should be specified inthe contract to ensure there is no uncertainty by either party.

Once the elements of parties, price and subject are established, acontract is binding and enforceable. However, disagreements can arisewith any contractual agreement and terms which can not be resolvedby the parties are usually settled by the courts on the basis of what isconsidered reasonable. Yet it is worth the effort to ensure each parties’intentions are well documented in the contract in order to minimizeissues that may arise later.

GOVERNMENT OF NUNAVUTThe Government of Nunavut (GN) was formed upon the creation ofNunavut under the Nunavut Act. The Federal legislation was enactedfollowing the signing of the Nunavut Land Claims Agreement (NLCA)between the Government of Canada and the Inuit living within theNunavut Settlement Area10. While respecting the intent and spirit of theNLCA, the Government of Nunavut was established as a publicgovernment representing all residents of Nunavut – or Nunavummiut.

10 As the NLCA was signed before the territory of Nunavut came into existence, the area was referred to as theNunavut Settlement Area within the agreement.




Upon the division of the Northwest Territories to form the newterritory of Nunavut, all acts and regulations from the Government ofthe Northwest Territories were readily adopted and form a strong basisof the legislative framework that exists in Nunavut today.

The Financial Administration Act (FAA) is a critical piece oflegislation as it controls the expenditures of public monies. Thereforecontracts that are funded with GN monies must follow the provisions ofthe FAA and its accompanying regulations. The FinancialAdministration Manual (FAM) is a companion document to the FAAand comprises a series of directives which have been formallyapproved by the Financial Management Board in its capacity under theFAA. The Government Contract Regulations under the FAA areincluded in FAM under Directive 9904. This directive is a “must” readfor all GN employees involved with contract activities.

Within the GN, the Department of Community and GovernmentServices (CGS) plays a lead role by establishing contract proceduresand providing related guidance to other departments. Such proceduresare documented in the GN Contract Procedures Manual which CGSmaintains. In addition, CGS is responsible for contracts involving thesupply of goods, transportation services, communication services aswell as construction contracts and real property leases. Questionsconcerning GN contracting activities may be directed to Purchasing,Logistics & Contract Support Services.

NUNAVUMMI NANGMINIQAQTUNIKIKAJUUTI (NNI POLICY)The Nunavut Land Claims Agreement identifiesseveral obligations that were agreed between theGovernment of Canada and the Inuit as repre-sented by Tungavik Federation of Nunavut11.Article 24 under the NLCA concerns governmentcontracts and establishes that the government’sprocurement policies will provide preference forqualified Inuit firms over other qualifiedbusinesses. Further, both the Inuit (as represent-ed by Nunavut Tunngavik Incorporated “NTI”)

11 Now known as Nunavut Tunngavik Incorporated (NTI).

Article 24

“This Article aims to helpInuit firms to get a fairshare of contracts fromGovernment.”

~ A Plain Language Guide tothe Nunavut Land ClaimsAgreement


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and the GN will monitor the level of governmentcontracts that Inuit contractors obtain and assesshow well the incentive policy is working overall.

As a result of this commitment, the GNhas developed Nunavut’s business incentivepolicy, Nunavummi Nangminiqaqtunik Ikajuuti(NNI Policy), in cooperation with NTI. The aim ofthe NNI Policy is to respect the letter and intentof the NLCA and ensure the following objectives:

• Good value and fair competition – securinggoods and services for the GN at the best valuethrough a contracting process that is clear, fairand equitable;

• Strengthening the Nunavut Economy – increasing the businesssector capacity and employment;

• Inuit Participation – bringing the level of Inuit participation in theprovision of goods and services to the GN to a level which isrepresentative of the Nunavut population;

• Nunavut Education and Training – increasing the number of trainedand skilled Nunavummiut at all levels of the workforce and businesscommunity to a level which is representative of the Nunavutpopulation.

The NNI Policy is recognized as one of the GN’s tools for economicdevelopment given its intent to effect change in the Nunavut economythrough government contracting. The Policy is applicable to allGN-funded contracts with the following exceptions: insurance,employment and emergency services

Following a comprehensive review of the NNI Policy in 2003, theGN acted on a recommendation to establish an NNI Secretariat to pro-vide follow-up and training on the NNI Policy and to ensure consis-tency in its application as well as appropriate reporting of requireddata. The NNI Secretariat under the Department of EconomicDevelopment and Transportation was created with a central goal “to

Article 23

“This Article sets uptraining to increase thenumber of Inuit workingfor Government.”

~ A Plain Language Guide tothe Land Claims Agreement.




maximize the participation of Nunavut, Inuit and Community-Based(Local) Businesses in Government of Nunavut contracting”.

CONTRACT AUTHORITYThe GN enters into contractual arrangements with suppliers in orderto procure goods and services which are vital to the running ofgovernment operations and the provision of programs and services forNunavummiut. Only those individuals who are “contract authorities” asdefined under the Government Contract Regulations of the FAA havethe power to bind the government contractually. This includes all GNMinisters and Deputy Ministers as well as any public officer who hasbeen delegated such authority in a manner which is consistent with theRegulations. As well, the Executive Council (otherwise known asCabinet) can, through its overriding authority, commit the governmentto a contractual agreement or provide such direction.

As contract authorities initiate expenditures by entering intocontracts on behalf of the GN, a contract authority must also beidentified as an expenditure officer under the FAA. It is important tonote, however, that not all expenditure officers are contract authorities.For more information, please contact Purchasing, Logistics & ContractSupport Services or any Divisional Director of Finance.

The following table summarizes the Contract Authorities within theGovernment of Nunavut as identified under the Government ContractRegulations (FAM Directive 9904). In particular, the following Ministersand Deputy Ministers have been identified as Contract Authorities.Through their respective departments, Contract Authorities fulfill theGN’s requirements for specific goods and services (as noted below).Ministers and Deputy Ministers may also delegate this responsibility toa public officer.


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MINISTER / DEPUTY MINISTER OF GOODS / SERVICES

Cabinet / Department of Justice Legal Services

Department of Finance Insurance Services

Department of Community & GoodsGovernment Services Transportation Services

Computer ServicesCommunication ServicesConstruction ServicesProperty Services including RealProperty Leases and FacilitiesMaintenance

Department of EconomicDevelopment & Transportation Tranportation Infrastructure

Department of Human Resources Employment Contracts

Other GN departments May enter into a contract to meet departmen-tal requirements except where the responsibil-ity for handling such requirements has beenspecifically assigned elsewhere. In all cases, itis highly recommended that GN departmentsconsult with CGS in advance of issuing a ten-der or RFP.

SPEAKER OF THE LEGISLATIVE ASSEMBLY GOODS / SERVICES

Office of the Legislative Assembly May enter into a contract to meet the Office’srequirements without regard to the assign-ments noted above.

Note: CGS has a lead rolein procurement and contractactivities for the GN




Additional Notes12:1) Local Contract Authority

A GN department may use a Local Contract Authority (LCA) topurchase goods and services within Nunavut providing the goodsand services:• do not exceed a value of $5,000 (including GST), and• do not fall under another department’s authority to supply, and• do not require a detailed description (such as an agreement toprovide services),

• work must be completed within 30 days.

2) Multi-Year ContractsIf a contract is to exceed the current fiscal year, the Minister mustconsider conditions in s. 44(2) of the FAA.

3) Guarantees and IndemnitiesNo person shall make a guarantee or indemnity for or on behalf ofthe Government unless authorized by an enactment to do so asper s. 66 of the FAA. Indemnities under $500,000 are providedunder s. 67.1 of the FAA.

4) Required Clausesa) Each contract must contain the following standard clause as

per s. 46 of the FAA as set out in FAM Directive 808, s. 4.2

“In compliance with Section 46 of the Northwest TerritoriesFinancial Administration Act, it is a statutory condition of thiscontract that 'an expenditure pursuant to the contract will beincurred only if there is a sufficient uncommitted balance in theappropriated item for the fiscal year in which the expenditure isrequired under the contract.’”

b) Each contract must also include the standard indemnificationand insurance clauses as per FAM Directive 808, Appendix B.These clauses serve to protect the GN, its officers, employees

12 Please note that references to the Financial Administration Act (FAA) and the Financial Administration Manual(FAM) are accessible by Government of Nunavut employees through the Department of Finance intranethttp://finance/.


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and agents from any claims and actions resulting from theactivities under a contractual agreement with the GN; whereasthe insurance provisions ensure that the contractor maintainssufficient coverage while carrying out such activities andranges from WCB coverage to comprehensive general liabilitycoverage.

5) Non-Standard ContractsAll non-standard contracts exceeding $50,000 must be reviewedby the Department of Justice.

DEPARTMENT OF COMMUNITY & GOVERNMENT SERVICES

MANDATEThe Department of Community & Government Services (CGS) has abroad mandate which includes:

• Community Support & Municipal Transfer Payments –Through the delivery of programs and services, provision offunding as well as development and training of municipalemployees to enhance each community’s capacity to effectivelydeliver municipal services;.• Government Services & Technical Expertise –Through the handling of procurement, contracts, records andproperty management as well as IT and IM support for alldepartments and the provision of technical services for capitalconstruction and asset management.• Protection Services & Safeguards –Through the coordination of emergency services, managementof emergency preparedness and related training as well asconducting electrical and mechanical inspections across theterritory.




PURCHASING, LOGISTICS & CONTRACT SUPPORT SERVICESWithin this set of responsibilities, CGS plays a lead role in meeting theGN’s requirements for goods and services to support governmentoperations and deliver programs and services for Nunavummiut.

CGS is recognized as a contract authority for securing goodsand specific services. Through its internal expertise, CGS also workswith other GN departments in providing advice and guidance asappropriate to assist in meeting their needs.

Services offered by CGS’ Purchasing, Logistics & Contract SupportServices include:

• Technical advice concerning the application of GN regulationsand policies;

• Coordination with Department of Justice to obtain legal reviewsand opinions concerning contract law;

• Management of the procurement process for a wide range ofgoods and services (including sealift logistical support services);

• Handling of tenders and proposals for GN departments and/orassistance as required;

• Active GN liaison with NNI Secretariat and participation on theNNI working group;

• Provision of guidance and support to GN departments withrespect to proposal evaluations and bid adjustments;

• Centralized reporting on the GN’s contracting and procurementactivities;

• Workshops and presentations including training anddevelopment;

• Setting of the GN’s protocol, procedures and practices withrespect to procurement and contracting;

• Logistics and management of sealift operations for the GN;• Tendering and contracting for air charter services.


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APPENDIXETHICS


New and existing employees of the Governmentof Nunavut (GN) are considered public officers13.Together, they form the public service14. All pub-lic officers share an overriding responsibility touphold and serve the public’s interest while car-rying out their respective roles. This commitmentis fundamental to public service. Yet the principleof serving and commitment to the common goodis also rooted in traditional Inuit knowledge –Inuit Qaujimajatuqangit – and is known asPijitsirarniq.

To serve the public’s interest meansconducting all activities in a manner that is fair,honest and objective. Each jurisdiction has itsown approach – either informally or formally - tosupport such conduct. In Nunavut, Inuit societal

values are embodied in the principles of Inuit Qaujimajatuqangit andprovide guidance. Additionally, Ministers are held accountable underthe Integrity Act and public servants are subject to a Code of Conductpolicy. The obligations under each bear similarity and are based onrecognized public sector ethics and values of fairness, honesty,probity15, integrity and fidelity to the public trust16.

The duties which are commonly found in such legislation or policiesinclude:

1.) Safeguarding confidential information – ensuring that informationwhich is unavailable to the general public is not used or disclosedin a way that may benefit a public officer’s own benefit or that ofanother person over the public interest. Restrictions on personaluse of confidential information often continue after the publicofficer leaves his or her role.

Pijitsirniq:The Concept of Serving

In carrying out theirresponsibilities all GNstaff will endeavour toserve each other and thecommunity at large to thebest of their abilities.

~Pinasuaqtavut, 2005.

13 As defined in Nunavut’s Financial Administration Act and includes Ministers, Commissioners, the Clerk of theLegislative Assembly and agents operating on behalf of the Government.

14 The Public Service is formally defined in the Public Service Act (Nunavut) which also identifies certain exceptions.15 “The dictionary meaning of probity refers to uprightness, honesty, proper and ethical conduct and propriety in

dealings. Within Government, the word ‘probity’ is often used in a general sense to mean ‘good process’.” Fromthe Victorian Government Purchasing Board: Probity Best Practice Advice.

16 From Chapter 9 “Modernizing Accountability in the Public Sector”, 2002 Auditor General Report of Canada, p. 6.


APPENDIXETHICS


2.) Avoiding real or perceived conflicts – ensuringthat a public official remains free of real,perceived or potential conflicts while carryingout his or her duties. A public officer has aduty to act impartially and therefore shouldnot accept gifts, give preferential treatment,or act in a manner which may provide apersonal benefit17. A public officer also has aduty to ensure that outside activities do notcause a conflict with official duties nor benefitthrough the use of confidential informationgained through his or her official capacity.Where conflicts can not be avoided, it is theresponsibility of the public officer to bringforward such matters for review at theappropriate level.

3.) Operating in compliance with laws and authorities – ensuring thatofficial duties are conducted in accordance with applicable lawsand within delegated levels of authority.

Together, these duties represent essential expectations forNunavut’s public service and its conduct in serving the interestsof Nunavummiut.

Conflict of Interest

“A conflict of interestoccurs when anEmployee's personal life orfinancial interest are inconflict, or are perceived tobe in conflict, with theEmployee’s official duties.”

~ GN Code of Conduct

17 A personal benefit includes benefits which may directly benefit accrue to a public officer’s immediate family.


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APPENDIXFORMAL REQUIREMENTS


GOVERNMENT CONTRACT REGULATIONS* (FAM Directive 9904)*not applicable to employment contracts

CONTRACT VALUE REQUIREMENT

Greater than $25,000 for Must issue an invitation to tender or aarchitectural or engineering Request for Proposals before enteringservices into a contract. CGS Procurement will

assist in determining the most appropriateGreater than $5,000 for any contracting method.other type of contract

Less than the above-noted Do not have to be competitively tendered.thresholds

All RFTs and RFPs Shall formally specify:- address- deadline (date & hour)- security (if any).

All RFPs Shall formally express the criteriato be used when evaluating the proposal.

All Contracts Shall apply NNI Policy when awardingcontracts.

GOVERNMENT CONTRACT REGULATIONSThe following table summarizes the formal requirements as set outunder the GN’s Contract Regulations when issuing a request for tenderor request for proposal.




NUNAVUMMI NANGMINIQAQTUNIK IKAJUUTI (NNI POLICY)The following table summarizes the formal requirements as set outunder the Nunavummi Nangminiqaqtunik Ikajuuti (NNI Policy) whenissuing a request for tender or request for proposal.

NNI POLICY** not applicable to contracts for insurance, employment oremergency service


Any and all Where sufficient competition exists inNunavut, being three or more qualifiedbusinesses, invitational tenders orproposals should be issued only toNunavut businesses

Tenders and RFPs with labour Must include a requirement for a trainingcomponents greater than plan for Inuit workers$300,000 (or $250,000 formaintenance contracts)

All Tenders Shall contain a provision that requires ageneral contractor to invite Nunavut,Inuit or local companies to bid on anysubcontracts that will be entered intosubsequent to the award of the maincontract.

All RFPs Must include evaluation criteria withminimum Inuit content values of 10%for Inuit employment and 5% for Inuitownership.


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CONTRACT PROCEDURES MANUALThe following table summarizes the formal requirements as set outunder the GN’s Contract Manual when issuing a request for tender orrequest for proposal.


Greater than $25,000 (goods & services) Must go out for “public tender” orRFP process. Advertise in news-paper. Must be open for aminimum of 15 calendar days.

Greater than $100,000 (construction) (Sometimes referred to as“invitational tenders” outside NU;whereas “public tenders”within NU are referred to as“solicited tenders” elsewhere).

Any and all Must issue an invitation for tender(Applies to contracts for the supply of or RFP by public advertisementgoods, construction, professional or private invitation (para. 6.2)other services and leases. Para 6.1.2) Tenders/RFPs must include the

following phrase:

“For the purpose of this tender, theprovisions of the Nunavut LandClaim Agreement apply.”

Greater than $50,000 and The contract document must benon-standard approved by the Department of

Justice.



Less than $25,000 If publicly advertised, then:Minimum tender period is at the discretion ofthe buyer and should allow sufficient time forsuppliers to respond.

$25,000 or greater Minimum tender period is 15 calendar days.




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ADVERTISING


NotificationGreater than $5,000 Post on Tender/RFP Notification Listing

Greater than $25,000 less Advertise once in each selectedthan $100,000 NU newspaper and post onNon-construction Tender Notification Listing

$100,000 or greater Advertise twice in each selectedNU newspaper and post on TenderNotification Listing

Construction Post in all hamlet or settlement officesand tender opening locations

Greater than $5,000 Send notice to NU Constructionand construction Association

Less than $25,000 Can not invite tenders from non-Nunavutbusinesses if there are 3 or moreavailable to perform




CONTRACT FORMS


ConstructionGreater than $5,000 Must be tendered

ContructionLess than $250,000 Tender via “Request for Tender – ConstructionMinor Project and Services Contract”

ConstructionGreater than $250,000 Tender via “Request for Tender – Construction

and Services Contract”

Services (Non-Consulting)Greater than $5,000 Must be tendered;

use “Request for Tenders – Goods”

Greater than $5,000 Tenders must be opened in public if publiclyadvertised or bid analysis sent to all whosubmit tenders.


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APPENDIXCONTACT LIST


Manager, Purchasing, Logistics & Contract Support ServicesDepartment of Community & Government Services(867) 975-5427 Direct

Executive CoordinatorNNI SecretariatDepartment of Economic Development & Transportation(867) 975-7800 Main Line

Manager, Access to Information & PrivacyDepartment of Executive & Intergovernmental Affairs(867) 975-6000 Main Line

Manager, Policy & PlanningDepartment of Human Resources(867) 975-6206 Direct

Manager, Risk ManagementDepartment of Finance(867) 975-5809 Direct

Director, Legal & Constitutional LawDepartment of Justice(867) 975-6320 Direct


APPENDIXCOMMON TERMINOLOGY


Article 23The Article of the Nunavut Land Claims Agreement dealing with InuitEmployment within the Government of Nunavut.

Article 24The Article of the Nunavut Land Claims Agreement dealing withGovernment Contracts.

AwardThe notification to a bidder of acceptance of a bid or proposal whichbrings a contract into existence.

BidA tender or an offer to sell or provide goods, services or constructionthat is submitted to a contract authority in response to a request forbids or tenders.

Bid AdjustmentThe amount by which the face value of a bid is reduced in accordancewith the NNI Policy. The bid adjustment is used for bid evaluation pur-poses only. The bid price minus the bid adjustment is referred to as theadjusted price.

BidderAn individual, partnership, corporation, society or co-operative whosubmits a bid.

ConsultantA business or individual that provides professional advice andservices.


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ContractA written agreement between a contract authority and another party toprovide goods, perform services, construct public works, or lease realproperty for consideration.

Contract AuthorityA Government of Nunavut Minister, Deputy Minister or a public officerwith the duties and authorities set out in the Financial AdministrationAct and accompanying Regulations.

ContractorA corporation, partnership or individual that has been awarded acontract for the execution of work or services under a contract.

Expression of Interest (EOI)Publicly advertised notice intended to solicit interest from a targetedbusiness community with the purpose of establishing a list of qualifiedcontractors that may be privately invited to submit tenders orproposals for a particular purpose.

Goods ContractA contract for the purchase of articles, commodities, equipment,goods, materials or supplies which may include installation.

Local Contract AuthorityA duty assigned to an employee which, under the employee’s signingauthority and using the prescribed form, allows the employee to obtaingoods and services to a maximum value (typically $5,000).

Nunavummi Nangminiqaqtunik Ikajuuti (NNI Policy)The formal name of the government’s business incentive policy whichmeans “Assistance for Nunavut Businesses”




Nunavut Land Claims Agreement (NCLA)The Agreement between the Inuit of the Nunavut Settlement Area andHer Majesty the Queen in Right of Canada, signed on May 25, 1993,and any amendments.

Nunavut Tunngavik Incorporated (NTI)The corporation registered under the Canada Corporations Act and theInuit party to the Nunavut Land Claims Agreement.

ProposalAn offer, either unsolicited or in response to a request for proposals, topropose a solution to a problem, need or objective under stated termsand conditions.

Request for Information (RFI)A document which identifies a requirement and requests suppliers toprovide information on goods and services they offer which may besuitable to fulfill it. An RFI does not result in an obligation on eitherparty but may lead to an RFT or RFP.

Request for Tender (RFT)A document defining the minimum standards to be met by tenderersand the requirements of the contract so as to permit the comparison ofbids on the basis of price. Sometimes referred to as an Invitation toTender.

Request for Proposal (RFP)A document inviting businesses to propose a solution to a problem,need or objective so as to permit the comparison of proposals on thebasis of a number of criteria including price.


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ResponsibleMeans, in relation to a proposer or a tenderer, the capability in allrespects to perform fully the contract requirements and the integrityand reliability to ensure performance of the contract obligations.

ResponsiveMeans, in relation to a tenderer, that the person has submitted a tenderthat conforms in all material respects to the invitation to tender.

Standing Offer AgreementA method of supply used to provide direct access to sources of supplyfor goods and/or services on-demand for specific periods of time atprearranged prices and delivery conditions.

TenderA bid or offer to sell or provide goods, services or construction that issubmitted to a contract authority in response to a request for tenders.

TendererA person, partnership or corporation who submits a tender.
