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Contracting Policy Notice 1997-8

Section 2. The Inuvialuit Final Agreement - July 25, 1984

Contracting Authorities should refer to The Inuvialuit Final Agreement for Principles and Definitions Sections 1 and 2 respectively. This section of the policy reflects the Government contracting obligations addressed in Article 16.(8) of the Agreement.

16.(8) Economic Measures

In order to expand the role of the Inuvialuit Development Corporation and its subsidiaries in the supply and delivery of goods and services in the Inuvialuit Settlement Region and the Inuvialuit communities, to strengthen the economic viability of the renewable resource sector in the Inuvialuit Settlement Region, to diversify the economy of the Western Arctic, and to assist the IDC and the Inuvialuit in contributing to the development of the private sector, the Government shall:

(b) notify the Inuvialuit of all Government contracts subject to public tender that relate to activities in the Inuvialuit Settlement Region and the Inuvialuit communities. Where the Inuvialuit submit the best bid having regard to price, quality, delivery and other stipulated conditions, the contract shall be awarded to the Inuvialuit; and

(c) notify the Inuvialuit Development Corporation of instances where federal government procurement of goods and services related to activities in the Inuvialuit Settlement Region takes place on a basis other than public tender. If the Inuvialuit are capable of supplying those goods and services on a reasonable basis, they shall receive a reasonable share of the contracts so awarded.

The Inuvialuit Final Agreement - Guidelines


In addition to the mandatory requirement of the Inuvialuit Final Agreement, contracting authorities are provided with the following guidelines to assist with the application of the Inuvialuit Final Agreement (IFA or Agreement).


Article 16.(2) states:

"16.(2) Canada and the Inuvialuit agree that the economic measures set out in this section should relate to and support achievement of the following objectives:

  1. full Inuvialuit participation in the northern Canadian economy; and
  2. Inuvialuit integration into Canadian society through development of an adequate level of economic self-reliance and a solid economic base."

Contracting authorities should take into account the developing nature of the economy of the Inuvialuit Settlement Region and plan their activity accordingly.


Normally, at the request of any group, the Crown, namely contracting authorities, have previously provided assistance in the familiarisation with contracting procedures of the Crown. At the request of the Inuvialuit Regional Corporation, contracting authorities should provide assistance in the familiarisation with contracting procedures of the Crown. Such assistance shall include information on how to access government supply and services contracts, standing offers, and how to register on suppliers' lists or inventories for contracting.

In addition to these provisions, contracting authorities should also consider communications and exchange of information in the context of the IFA requirements stipulated in the following Article:

"16.(7) With respect to any business activity contemplated by the Inuvialuit, the government agrees to use its best efforts to:

  1. provide the Inuvialuit, on request, with access to any available and releasable information or data;
  2. direct the Inuvialuit to the appropriate contacts or sources of information; and
  3. facilitate expeditious consideration by the government of Inuvialuit applications."



In planning procurement projects, contracting authorities should be aware that the Inuvialuit do not require the invitation of bids by commodity groupings or for specified portions of larger contracts, or re-structuring contracts into smaller discrete elements. In their planning, contracting authorities should take into consideration the developing economy of the Inuvialuit Settlement Region and the developed or developing capacity of corporations owned and controlled by the Inuvialuit. Departments should ensure that their procurement planning is consistent with the economic planning provisions specified in the following article:

"16.(4) The government agrees to provide the Inuvialuit with the opportunity to participate in economic planning in the Inuvialuit Settlement Region."

Such planning should involve Inuvialuit participation where the scope of the project warrants it.


In the planning stage, prior to the release of bid solicitation or bid invitation for government contracts for the provision of goods, services, leases and construction in the Inuvialuit Settlement Region, contracting authorities should assist qualified Inuvialuit firms to compete for and obtain such contracts. This assistance is to be provided to the extent practicable and consistent with sound procurement management, by implementing the following measures:

  1. setting reasonable date, location, terms and conditions for bidding so that Inuvialuit firms may readily bid;
  2. avoid artificially inflated employment skill requirements not essential to the fulfilment of the contract

To qualify Inuvialuit firms, contracting authorities must as in other areas consider the firms' expertise or requisite skills necessary to perform or manage the work.


When contracting authorities are active in the Inuvialuit Settlement Region they shall note the specific notice requirement stipulated in Articles 16.(8)(b) and (c). To meet the requirement of these articles the notice should be sent to the Inuvialuit Development Corporation.


In accordance with normal procurement practices, the contracting authority should develop evaluation criteria to ensure fair consideration of all bids and should consider all aspects of bidders' competencies and capabilities. To avoid confusion, bid solicitation documents should define qualitative terms or terminology critical to the contracting situation.

When establishing bid evaluation criteria for the awarding of government contracts, and whenever practicable and consistent with sound procurement management, contracting authorities should consider the potential contribution of the Inuvialuit in carrying out the contract. This may include, as appropriate:

a) the employment of Inuvialuit, the engagement of Inuvialuit professional services and the use of Inuvialuit suppliers,

b) the creation of administrative offices or other facilities in the Inuvialuit Settlement Region,

c) the undertaking of commitments, under the contract, with respect to related on-the-job training or skills development for Inuvialuit.


The Inuvialuit Regional Corporation (IRC), duly constituted by the IFA, has the responsibility to prepare and maintain a comprehensive list of Inuvialuit 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. The IRC has agreed to take the necessary measures to ensure that this data is maintained and updated on a continuous basis.

Contracting authorities active in the Inuvialuit Settlement Region should request the current list of Inuvialuit firms from the IRC.


When a contracting authority invites bids by public tender, it shall implement the requirements of Article 16.(8)(b).

When inviting bids in the Inuvialuit Settlement Region, contracting authorities should note the requirement of Article 16.(8)(b) of the Agreement and in addition notify the Inuvialuit Development Corporation.


When a contracting authority solicits bids, other than by public tender, it shall implement the requirements of Article 16.(8)(c).

When soliciting bids from suppliers in the Inuvialuit Settlement Region, contracting authorities should note the requirement of Article 16.(8)(c) of the Agreement and notify the Inuvialuit Development Corporation.


Contracting authorities should endeavour to have contract documents contain appropriate terms and conditions to provide that the contractor or sub-contractors fulfil requirements stipulated in the Inuvialuit Final Agreement and are subject to related participation and co-operation agreements.

Contracting authorities should ensure that the general terms and conditions of the contract cover the requirements for permits for work on or access to Inuvialuit Lands.


Participation and co-operation agreements negotiated between the sponsoring department and the Inuvialuit should detail the specific project commitments and obligations that all government contractors and subcontractors are to abide by when carrying out their activities on Inuvialuit lands. These are designed to favour Inuvialuit participation in a range of economic benefits associated with government's activities.

Co-operation and participation agreements may be used by the Crown as multi-year agreements with the Inuvialuit to establish broad guidelines for fulfilling social and economic opportunities for the Inuvialuit associated with a range of government activities in the Inuvialuit Settlement Region. These agreements between the Inuvialuit and the Crown should detail the specific commitments and obligations to be passed on to contractors and subcontractors to provide Inuvialuit participation in employment, training and business opportunities to the Inuvialuit.


Contracting authorities are encouraged to establish administrative procedures, arrangements and guidelines to fulfil contracting obligations in the Inuvialuit Settlement Region. Such development should involve consultation with the Inuvialuit Regional Corporation.


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