Partnerships: Standing Committee on Government Operations and Estimates—July 23, 2020

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CargoJet

On April 2, 2020, Public Services and Procurement Canada (PSPC) entered into a task-based emergency services contract with CargoJet for charter airline services. The contract provides for the transport of personal protective equipment (PPE) and related supplies to Canada from Asia.

As of July 13, 2020, CargoJet has flown a total of 79 chartered flights carrying PPE to Canada.

CargoJet offers reliable, regular flights and good value in comparison to prices available from international carriers.

Air Canada

On April 2, 2020, PSPC entered into a task-based emergency services contract with Air Canada for charter airline services. The contract provides for the transport of PPE and related supplies to Canada from Asia.

As of July 13, 2020, Air Canada has flown 17 chartered flights carrying PPE to Canada.

Air Canada continues to offer a consistent and reliable source of supply and good value in comparison to prices available from international carriers.

Bolloré

At the end of March, PSPC entered into a contract with Bolloré Logistics Canada Inc. using established emergency contracting authorities to provide urgent logistics and transportation services related to the procurement of PPE and medical supplies from Asia.

Bolloré Logistics Canada Inc. is on a standing offer with the Government of Canada for freight and cargo services and was selected due to its previous experience providing logistics services to Canada and its significant footprint in China. The decision was based on minimizing risks and on the urgency of the requirement.

The Bolloré contract has a term to October 31, 2020 and includes 2, 6-month extension options.

Overseas Express Consolidators

In June 2020, PSPC issued a competitive contract to Overseas Express Consolidators (OEC) Montreal Inc. as our second third-party logistics provider. This contract provides additional capacity and contingency, when required, for the same suite of services currently being provided by Bolloré Logistics Canada Inc.

The OEC contract has a term to October 31, 2020 and includes 2, 6-month extension options.

Amazon

On April 1, 2020, PSPC signed, on behalf of the Public Health Agency of Canada (PHAC), a 1-year contract with Amazon to use their on-line technology for provinces to order material directly. Canada Post and Purolator were delivering the equipment to provinces and territories as a subcontractor of Amazon. To date, only $200,000 has been spent under this contract.

This agreement was primarily put in place for Amazon’s easy-to use online interface which allowed individual health establishments to order supplies directly from PHAC. As provinces and territories requested for PHAC to deliver the supplies directly rather than awaiting for orders from them, the requirement for getting PPE to the provinces and territories evolved beyond what was covered in the Amazon agreement. As a result, the contract with Amazon was suspended on June 30, 2020.

To support this contract, a separate agreement between PHAC and Canada Post allowed for the warehousing of the PPE at Maritime Ontario, a key on-going subcontractor of Canada Post.

Purolator

Purolator has been used by PHAC to transport PPE from CargoJet or Air Canada airport facilities to various warehouses used by PHAC or its partners, as well as to deliver PPE to provinces and territories.

Contracts with Purolator have been issued directly by PHAC as call-ups against the PSPC carrier and freight services standing offer.

Letter of interest / request for information for extended logistics services in Canada

PHAC’s needs evolved over time to requiring the provision of end-to-end domestic logistics services including transportation, warehousing and inventory management from the same service provider.

On May 4, to facilitate the intake and distribution of large volumes of PPE and medical supplies, a letter of interest (LOI) / request for information (RFI) notice was posted on the PSPC Buy and Sell website to solicit interest from major logistics service providers. This expression of interest related to a multimodal logistics solution in Canada, including transportation, warehousing and inventory management services.

A request for proposals for the longer-term solution was published on the PSPC Buy and Sell website on July 16.

Groupe Robert

On May 22, PHAC awarded a small contract to Groupe Robert as an immediate temporary measure to store PPE. [Redacted]

To support PHAC’s immediate needs for inventorying, transportation and warehousing activities for large quantities of PPE, PSPC awarded a short-term contract to Groupe Robert Inc. on June 13, 2020. Prior to this contract being awarded, several firms were contacted further to the LOI/RFI; Groupe Robert Inc was identified as the best firm to immediately support PHAC.

This contract provides [redacted] as well as inventory management, transportation services and a warehouse management system capability, to facilitate the reporting and control of the materiel to PHAC.

It is expected that the warehousing space available under this contract will be [redacted].

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