Disposal by demilitarization
Fairness monitor final report, May 4, 2016
Submitted to Director, Fairness Monitoring Program
Submitted by Samson and Associates
On this page
- 1. Introduction
- 2. Project requirement
- 3. Attestation of assurance
- 4. Methodology
- 5. Reference documents
Samson & Associates was engaged as a Fairness Monitor (FM) on May 9, 2014 to observe the competitive procurement process for Disposal by Demilitarization undertaken by Public Services and Procurement Canada (PSPC), on behalf of the Department of National Defence (DND) through solicitation numbers W8486-14YC03/A and B. Samson & Associates is an independent third party with respect to this activity.
At the time of our involvement, some industry engagement activities had already taken place and a Letter of Interest (LOI) had already been published. We reviewed all of the information provided and observed all relevant activities from the time of our involvement starting May 9, 2014. We had access to all aspects of the procurement process and co-operation from all stakeholders.
We hereby submit the Final Report, covering the activities of the FM, commencing with the on-site visits of Canadian Forces Ammunition Depot (CFAD) in Dundurn, Saskatchewan, and continuing until the procurement was cancelled following a decision to proceed with some demilitarization internally and for DND to reevaluate options for a path forward.
This report includes our attestation of assurance, a summary of the scope and objectives of our assignment, the methodologies applied and relevant observations from the activities undertaken.
2. Project requirement
The Department of National Defence / Canadian Forces (DND/CF) maintains a stockpile of ammunition. Within this inventory reside select natures of ammunition and explosives, munitions scrap, aids to production and ammunition salvage. Part of this inventory has reached the end of its life by being declared life expired, surplus or obsolete to requirements. In addition, accumulation of Munition Scrap (MS) is expected to increase as a result of future range clearances/unexploded ordnance activities and requires disposal by demilitarization before it may be safely released for public sale or final disposal.
Due to a lack of disposal by demilitarization technologies and equipment capabilities, DND/CF continues to accumulate ammunition and explosives, munitions scrap, aids to production and ammunition salvage that requires it to undergo a safe disposal by demilitarization process that is environmentally acceptable prior to final disposal.
In 2014, DND/CF, had a requirement for a contracted disposal by demilitarization service capability. In April 2016, we were advised that the procurement was cancelled following a decision to proceed with some demilitarization internally and for DND to reevaluate options for a path forward.
3. Attestation of assurance
The FM hereby provides the following unqualified assurance statement concerning the competitive procurement process for Disposal by Demilitarization commencing with site visits to the Canadian Forces Ammunition Depot in Dundurn, Saskatchewan, continuing until the procurement was cancelled following a decision to proceed with some demilitarization internally and for DND to reevaluate options for a path forward.
It is our professional opinion that the competitive procurement process for the above activities we observed, was carried out in a fair, open and transparent manner.
Original signed by
Mathieu Farley, CPA, CA, CIA, CISA
FM Team Leader
Partner, Audit & Advisory
Samson & Associates
Original signed by
Pascale Tabatoni, M.Sc
Samson & Associates was engaged as a FM to observe the competitive procurement process for Disposal by Demilitarization and to attest to the fairness, openness and transparency of this monitored activity.
In accordance with the terms of our engagement, we familiarized ourselves with the relevant documents, observed industry engagement activities (for example, LOI, site visits and one-on-one sessions), identified fairness-related matters to the contracting and technical authorities, and ensured that actions were reasonable and appropriate.
4.1 Fairness monitor activities related to the industry engagement phase
4.1.1 Letter of interest 1 and site visits
At the time of our involvement, some industry engagement activities had already taken place and a LOI had already been published on buyandsell.gc.ca on April 16, 2014. We reviewed all of the information provided and observed all relevant activities from the time of our involvement, which coincided with the site visits.
All interested suppliers were invited to register for site visits to the CFAD in Dundurn, Saskatchewan through and the LOI, which closed on May 20, 2014.
The FM Specialist attended a first meeting with PSPC and DND representatives on May 9, 2014 to preview the upcoming CFAD site visits in Dundurn, Saskatchewan. The FM was present at each of the scheduled site visits at CFAD Dundurn, Saskatchewan on May 14 and 15, 2014.
No fairness issues resulted from any of the noted observations.
4.1.2 One-on-one engagement sessions
Through the same LOI, interested Industry representatives were also given the opportunity to register for one-on-one engagement sessions with DND/CF and provide input to aid in the further development of the Statement of Work (SOW) which a draft version had been attached to the LOI.
As such, a meeting was held with PSPC and DNC/CF representatives on June 4th, 2014 to preview the upcoming one-on-one sessions in Gatineau, Québec. The FM also attended the meeting.
The FM Specialist attended and observed all six scheduled one-on-one engagement sessions which were held between June 16 and June 25, 2014 with industry representatives. Three formal responses to the LOI were also provided by potential bidders.
Questions asked during the above sessions and related activities were noted by the Crown representatives in accordance with the terms of the LOI. Based on the outcome of Industry engagement activities, the draft SOW Request For Proposal (RFP) and other aspects of this requirement were to be altered prior to the RFP release date to take into considerations clarifications and issues outlined by Industry.
DND/PSPC did not yet finalize the industry comment disposition report and as such DND/PSPC responses to Industry were not assessed by the FM.
On October 20, 2014, DND issued another LOI (W8486-14YC03/B) to keep the channels of discussion open with the potential bidders. On April 29, 2015, the LOI was amended to provide an update on the project to industry.
Fairness monitor summary of findings on the industry engagement process
It is the opinion of the Fairness Monitor that the activities observed were conducted in a fair, open and transparent manner. In this context, fairness refers to decisions being made objectively, free from bias, favouritism or influence and conform to established rules.
4.2 Cancellation of the requirement
In April 2016, we were advised that the procurement was cancelled following a decision to proceed with some demilitarization internally and for DND to reevaluate options for a path forward
5. Reference documents
The following documents are referenced by number in this report and unless otherwise indicated, are available through PSPC.
|1||Letter of Interest (LOI) - W8486-14YC03/A||Published on buyandsell.gc.ca on April 16, 2014|
|2||Final Abbreviated Statement of Work Annex “A” to Letter of Interest||Published on buyandsell.gc.ca on April 16, 2014|
|3||Draft Request for Proposal (RFP) Attachment 002||Published on buyandsell.gc.ca on April 16, 2014|
|4||Letter of Interest (LOI) - W8486-14YC03/A Amendment 001||Published on buyandsell.gc.ca on April 22, 2014|
|5||Letter of Interest (LOI) - W8486-14YC03/B||Published on buyandsell.gc.ca on October 20, 2014|
|6||Letter of Interest (LOI) - W8486-14YC03/B Amendment 001||Published on buyandsell.gc.ca on April 29, 2015|
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