Directive on Government Contracts, Including Real Property Leases, in the Nunavut Settlement Area

B. Procedures

• B.1These procedures provide details on the requirement to include the criteria under subsection 6.3.12 of the Directive on Government Contracts, Including Real Property Leases, in the Nunavut Settlement Area.
• B.2

  Mandatory procedures are as follows:

  Requirements definition phase

  • B.2.1

    Inuit benefits criteria and Nunavut benefits criteria are mandatory for the following competitive tenders in the Nunavut Settlement Area:

    • B.2.1.1Goods, services and construction services contracts that have an estimated value of over $100,000; and
    • B.2.1.2Real property leases that have an estimated value of over $1,000,000.
  • B.2.2

    Business owners and contracting authorities must undertake best efforts when practicable and in keeping with sound procurement management principles to include Inuit benefits criteria and Nunavut benefits criteria for the following competitive tenders in the Nunavut Settlement Area:

    • B.2.2.1Goods, services and construction services contracts that have an estimated value of $100,000 and under; and
    • B.2.2.2Real property leases that have an estimated value of $1,000,000 and under.

  Procurement strategy phase

  • B.2.3Develop technical and price criteria, taking into account subsection 6.3.3 of the directive. In particular for construction contracts, avoid artificially inflated requirements for employment skills that are not essential to the fulfillment of the contract.
  • B.2.4Prior to developing Inuit benefits criteria, consult the Inuit firm list maintained by the DIO and conduct market research, as appropriate, to assess the capacity and availability of Inuit firms based on the nature of the work required under the competitive tender.
  • B.2.5

    Identify the following, as appropriate, based on the market research:

    • B.2.5.1The number of Inuit firms expected to meet some or all of the operational requirements;
    • B.2.5.2The type of expertise that Inuit have in relation to the required deliverable;
    • B.2.5.3The volume of business that Inuit firms have the capacity to support;
    • B.2.5.4The location of potential Inuit firms;
    • B.2.5.5The certifications required to meet the operational requirements, and whether there are Inuit firms who maintain the certifications; and
    • B.2.5.6Whether there are any other activities that are planned in the Nunavut Settlement Area that may affect the ability of Inuit firms to participate in the procurement opportunity.
  • B.2.6Conduct additional engagement activities, such as letters of interest, requests for information and/or scheduling bidders’ conferences, if further information is required.
  • B.2.7Apply information obtained from market research and engagement activities to structure the bid criteria for the purpose of realizing meaningful, measurable benefits for Inuit, while meeting business and operational requirements.
  • B.2.8

    Structure the following four bid criteria to be evaluated separately and independently from each other.

    Inuit benefits criteria

    • B.2.8.1Inuit employment: to evaluate the employment of Inuit labour.
    • B.2.8.2Inuit training and skills development: to evaluate the undertaking of commitments, under the contract, with respect to on-the-job training or skills development for Inuit.
    • B.2.8.3Inuit ownership (prime contractor and subcontractors): to evaluate whether the bidder is an Inuit firm listed on the Inuit firm list maintained by the DIO, and whether Inuit firms will be engaged as subcontractor(s) in carrying out the government contract in the Nunavut Settlement Area.

    Nunavut benefits criteria

    • B.2.8.4Location in the Nunavut Settlement Area: to evaluate whether the bidder or the subcontractor(s) have head offices, administrative offices or other facilities in the Nunavut Settlement Area.
  • B.2.9

    The Inuit employment component may include the following sub-criteria:

    • B.2.9.1The portion of labour attributable to Inuit;
    • B.2.9.2The description and duration of the employment opportunity;
    • B.2.9.3The opportunity for skills development;
    • B.2.9.4The sustainability of jobs;
    • B.2.9.5The type of work;
    • B.2.9.6The experience to be gained; and
    • B.2.9.7The human resource strategies for Inuit recruitment, retention, succession planning and staff management.
  • B.2.10

    The Inuit training and skills development component may include among others, the following sub-criteria:

    • B.2.10.1A description of the training and the training location (for example, apprenticeship, school programs, on-the-job or in-house training programs);
    • B.2.10.2The number of training opportunities for Inuit;
    • B.2.10.3The duration of the training;
    • B.2.10.4The quality of training;
    • B.2.10.5The effectiveness of the training delivery approach, such as classroom or fieldwork; and
    • B.2.10.6Specialization, certification or accreditation with future potential for employment.
  • B.2.11

    The Inuit ownership (prime and subcontractors) component may include, among others, the following sub-criteria:

    • B.2.11.1Demonstrable Inuit ownership of prime and subcontractor(s) through registration on the Inuit firm list maintained by the DIO;
    • B.2.11.2A description and the type of work to be conducted in-house by the Inuit-owned firm, or their Inuit firm subcontractor; and
    • B.2.11.3The number of subcontracting opportunities for Inuit firms.
  • B.2.12

    The location in the Nunavut Settlement Area component may include the following sub-criteria:

    • B.2.12.1A description of the number, type and size of the head offices, administrative offices or other facilities that are located in the Nunavut Settlement Area;
    • B.2.12.2The number of years that the firm has been in existence;
    • B.2.12.3A description of the type of work to be conducted in-house by the firm located in the Nunavut Settlement Area;
    • B.2.12.4A description of the type of work to be conducted by subcontractors located in the Nunavut Settlement Area; and
    • B.2.12.5The number of subcontracting opportunities for firms located in the Nunavut Settlement Area.

  Structure of the bid criteria in bids limited to Inuit firms

  • B.2.13

    When competitive tenders in the Nunavut Settlement Area are limited to Inuit firms:

    • B.2.13.1

      Each criterion has the following weight by default:

      Criterion	Default weight
      Inuit ownership	5%
      Inuit employment	10%
      Inuit training	10%
      Location in the Nunavut Settlement Area	5%
      Total	30%

    • B.2.13.2Shift weighting toward the remaining bid criteria if one or more criteria are excluded to ensure that 30% of total available points are allocated to the bid criteria;
    • B.2.13.3Divide the remaining 70% of total available points between technical, financial, administrative and/or other criteria when rated criteria are established; and
    • B.2.13.4

      Adjust the weightings within the ranges set out below if, depending on the nature of the requirement and Inuit capacity, it is not possible to weight each criterion according to subsection B.2.13.1:

      Criterion	Type of contract and percentage weighting by contract type
      	Goods	Major contracts above $10 million	Services and construction services	Real property leases
      Inuit ownership	5% to 30%	5%	10% to 15%	0% to 30%
      Inuit employment	0% to 10%	10%	10% to 15%	0% to 30%
      Inuit training	0% to 10%	10%	0% to 10%	0% to 30%
      Location in the Nunavut Settlement Area	5% to 10%	5%	10% to 15%	0% to 30%
      Total	30%	30%	30%	30%

  Structure of the bid criteria in bids that are not limited to Inuit firms

  • B.2.14

    When competitive tenders in the Nunavut Settlement Area are not limited to Inuit firms:

    • B.2.14.1

      Each criterion has the following weight by default:

      Criterion	Default weight
      Inuit ownership	10%
      Inuit employment	10%
      Inuit training	10%
      Location in the Nunavut Settlement Area	5%
      Total	35%

    • B.2.14.2Shift weighting toward the remaining bid criteria if one or more criteria are excluded to ensure 35% of total available points are allocated to the bid criteria;
    • B.2.14.3Divide the remaining 65% of total available points between technical, financial, administrative and/or other criteria when rated criteria are established; and
    • B.2.14.4

      Adjust the weightings within the ranges set out below if, depending on the nature of the requirement and Inuit capacity, it is not possible to weight each criterion according to subsection B.2.14.1:

      Criterion	Type of contract and percentage weighting by contract type
      	Goods	Major contracts above $10 million	Services and construction services	Real property Leases
      Inuit ownership	10% to 30%	10%	10% to 15%	0% to 30%
      Inuit employment	0% to 10%	10%	10% to 15%	0% to 30%
      Inuit training	0% to 10%	10%	0% to 10%	0% to 30%
      Location in the Nunavut Settlement Area	5%	5%	5%	5%
      Total	35%	35%	35%	35%

  • B.2.15Include the criteria under subsection 6.3.12 of the directive in solicitation documents.
  • B.2.16Include terms and conditions that require the bidder to provide the costs to fulfill the requirements for Inuit benefits criteria and Nunavut benefits criteria as separate line items in a bid.
  • B.2.17

    Include terms and conditions that require the contractor to:

    • B.2.17.1Report on Inuit benefits and Nunavut benefits achieved;
    • B.2.17.2Engage, when requested by the contracting authority or designated real property official, an independent professional to confirm that the contractor or lessor has met the requirements regarding any work to be performed by an Inuit firm or by Inuit; and
    • B.2.17.3Agree to holdback provisions when contractually obligated Inuit benefits are not being achieved in a government contract if they are invoked.
  • B.2.18Invoke set-aside provisions for small and minority businesses or Indigenous businesses for competitive tenders covered by trade agreements.

  Evaluation

  • B.2.19Evaluate bids according to the procedures set out in the solicitation or invitation to bid.

  Contract award

  • B.2.20Proceed to award the contract according to subsections 6.3.26, 6.3.27, and 6.3.28 of the directive.

  Contract administration and contract payment

  • B.2.21Request a report from the contractor or lessor on the Inuit benefits achieved.
  • B.2.22Assess whether contractually obligated Inuit benefits are not being achieved and apply holdback provisions, if appropriate.

  Reporting

  • B.2.23Report quarterly on the awarding of the contract and the Inuit benefits achieved according to Appendix C of the directive.