Procurement: Standing Committee on Government Operations and Estimates—November 16, 2020
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- Integrity in federal procurement
- Essential Services Contingency Reserve
- Public Services and Procurement Canada’s role in management of the National Emergency Strategic Stockpile
- COVID-19 Supply Council
- International competition and export restrictions impacting personal protective equipment procurement
- Labour exploitation in procurement of personal protective equipment
- Indigenous procurement process
- Security screening equipment for Global Affairs Canada
- Supplying Canada’s response to COVID-19
- Summary of changes: Personal protective equipment ordered and received between October 19 and November 2
- Ventilator procurement
- Procurement of COVID-19 vaccines
- Procurement of serologic tests
- Rapid COVID-19 testing
- Procurement modernization
Integrity in federal procurement
Following the consultations aimed at identifying and addressing gaps and shortcomings in the existing Integrity Regime, there has been considerable public discussion around corporate wrongdoing, as well as the government’s responses to such misconduct. Expectations among media and industry stakeholders that enhancements to the Integrity Regime will be brought forward are expected to persist.
Questions on remediation agreements should be directed to the Department of Justice.
- The Government of Canada is committed to taking action against improper, unethical and illegal business practices and holding companies accountable for such misconduct
- Effectively addressing corporate wrongdoing protects the integrity of markets, addresses barriers to economic growth and promotes competition to ensure job growth
- To strengthen its approach and ensure it is working with ethical suppliers, the government is considering enhancements to its Integrity Regime
- The government is seeking to strike an appropriate balance in order to provide incentives for corporations to self-report wrongdoing and to promote stronger corporate compliance
If pressed on when the enhanced Integrity Regime will be released:
- the Government of Canada is carefully considering possible next steps regarding the Integrity Regime
- in the interim, the current Ineligibility and Suspension Policy remains in effect
If pressed on the status of Bombardier to be awarded contracts:
- we are aware of the situation concerning the investigation into Bombardier by the Serious Fraud Office in the United Kingdom (UK)
- at this time, the company’s status under the Integrity Regime remains unchanged and they are able to be awarded federal contracts
- we continue to monitor the situation and will take action as required pursuant to the Ineligibility and Suspension Policy
In recent years, the government introduced measures to protect the integrity of its contracts, including the government-wide Integrity Regime, the federal contracting fraud tip line, and increased oversight for the detection of bid-rigging. The Integrity Regime is designed to help ensure that the government does business with ethical suppliers and incentivizes suppliers to ensure strong ethics and compliance frameworks. A supplier may be suspended or declared ineligible to do business with the government if, in the previous 3 years it, members of its board of directors, or its affiliates, have been charged with or convicted of one of the offences listed in the Ineligibility and Suspension Policy in Canada or abroad.
Under the current regime, 4 companies have been declared ineligible to do business with the Government of Canada due to convictions for a listed offence (Hickey Construction Ltd., Les Entreprises Chatel Inc., R.M. Belanger Limited and Les Industries Garanties Limitée). One company is subject to an administrative arrangement in lieu of suspension due to charges for a listed offence (SNC-Lavalin).
In 2018, the government announced its plans to enhance the Integrity Regime by increasing the number of triggers for debarment, broadening the scope of business ethics covered by the regime, and integrating greater flexibility within the debarment process. Following this announcement, there was considerable public discourse around corporate wrongdoing as well as governments’ response to such misconduct. As a result, the government announced that it was taking additional time to reassess elements of the proposed regime and potential next steps.
In the interim, the current Ineligibility and Suspension Policy remains in effect.
A number of media outlets are reporting that the UK Serious Fraud Office (SFO) has recently announced an investigation of Canadian industrial group Bombardier over suspected bribery in airplane sales to Garuda Indonesia. The company has confirmed this investigation and stated that the SFO was investigating a number of transactions that led to a former chief executive officer of Garuda Indonesia being convicted of bribery and money-laundering in May 2020.
Essential Services Contingency Reserve
The Government of Canada is operationalizing the Essential Services Contingency Reserve (ESCR) to provide essential services workers with access to personal protective equipment, non-medical masks and disinfection products to meet urgent, short-term needs.
- The health and safety of Canadians continues to be our top priority, and that means ensuring that businesses and organizations in essential services sectors have access to personal protective equipment, non-medical masks and disinfection products as we begin reopening the economy
- We have entered into an agreement with Canadian supplier SCI, to provide warehousing and order fulfillment across Canada for the Essential Services Contingency Reserve, including in northern and remote communities
- SCI is part of the Canada Post network, offering seamless integration with Purolator and Canada Post for shipping orders to businesses and organizations across essential services sectors
- The contingency reserve will ensure timely access to personal protective equipment, non-medical masks and disinfection products to keep Canadians safe and avoid disruptions in essential services
- The contingency reserve started its operations on August 3, 2020. A number of organizations have registered to access the inventory and orders have begun to be placed in a variety of essential services sectors
If pressed on contracts issued to operationalize the contingency reserve:
- three suppliers have been engaged to support the delivery of the contingency reserve
- a task authorization for approximately $3.7 million has been issued to InfoSys Public Services to create a case management system and order intake tool, leveraging work to date on the electronic procurement system
- a contract for approximately $3.9 million has been awarded to SCI, a subsidiary of Canada Post, for warehousing and inventory management
- Purolator, which is on the national master standing offer, has been engaged to cover ground transportation for order fulfillment which is expected to cost approximately 2 million dollars
If pressed on supplier types for contracts issued to stock the contingency reserve :
- to stock the contingency reserve, Public Services and Procurement Canada is purchasing supplies from a number of sources, both internationally and domestically
If pressed on eligibility for the contingency reserve:
- to be eligible, businesses or organizations must be legally constituted, from one of the 10 critical infrastructure sectors, and reflected in Public Safety Canada’s “guidance on essential services and functions in Canada during the COVID-19 pandemic”
- orders valued at $5,000 or above will be assessed against the degree to which the sector is facing critical shortages of personal protective equipment (PPE), if the requested supplies are appropriate based on public health guidance as well as occupational health and safety requirements, and that requestors have been unable to secure PPE elsewhere
If pressed on the Essential Services Contingency Reserve timelines for order fulfillment:
- a streamlined approval process for orders under $5,000 has been implemented to ensure organizations have timely access to personal protective equipment, non-medical masks and disinfection products
If pressed on cost-recovery:
- the cost of goods will be established based on the average price paid by Public Services and Procurement Canada to purchase inventory for the contingency reserve and would not include overheard costs to acquire and warehouse the inventory
- costs will be reviewed on a regular basis and updated accordingly
- shipping costs will also be applied to purchases from the contingency reserve
If pressed on inventory:
- inventory in the contingency reserve will evolve over time due to supply and demand context
- efforts will be made to ensure that the inventory aligns with the needs of essential services sectors
In late April 2020, a [Redacted] was taken to establish an ESCR. Given supply and demand challenges, procurements for personal protective equipment and associated disinfecting supplies were quickly initiated before warehousing was in place.
Initially, stock for the contingency reserve was housed at PSPC-owned warehouse locations. However the sites did not have sufficient capacity for the planned inventory and were not equipped with the necessary tools to manage the inventory, including rapid distribution to end users.
Discussions were held in early June 2020 with Canada Post, Purolator and SCI to explore options for an integrated warehousing, logistics and distribution solution. Subsequently a contract was issued to SCI as it provided a turnkey solution, including immediate capacity and a nation-wide network of warehouse locations. Further, SCI had a warehouse management system with the ability to provide real-time inventory management and the ability to integrate the system with the online catalogue ordering tool being developed.
At the same time, Infosys Public Services was engaged to develop the case management and intake tool for the contingency reserve as there was a requirement to put in a place a solution that would be compatible with the existing electronic procurement system they had developed. Given their experience developing the electronic procurement system and the need for the solution to leverage existing infrastructure in place, only this vendor could deliver a solution for the contingency reserve within the short timeframe required.
There is a 2-step process to access the contingency reserve:
- order placement
As of November 10, 2020, the contingency reserve has received a total of 142 requests for registration from the following sectors:
- information and communication technologies
- energy and utilities
Of the businesses registered, 19 have placed orders. Of those orders, 11 have been cancelled, 6 approved and 2 are under review. A portion of the cancelled orders have been redirected to supply available through provinces and territories.
To date, the contingency reserve has been mostly accessed by small and medium size enterprises rather than consolidated requests from critical sectors. As such, the approval process for orders valued at less than $5,000 has been streamlined to remain within Public Services and Procurement Canada to reduce processing times and ensure timely order fulfillment.
Supplementary Estimates B
Public Services and Procurement Canada (PSPC) is seeking access to $500 million (in both vote 1—operating expenditures and statutory authority) in 2020 to 2021 to establish the Essential Services Contingency Reserve, to which essential service organizations can apply for temporary, urgent access to PPE and other critical supplies.
This funding is in addition to the original $500 million received through Supplementary Estimates (A), which brings PSPC’s total authorities to $1 billion for 2020 to 2021.
Statutory authorities granted under the Public Health Events of National Concern Payment Act (PHENCPA) are available until December 31, 2020.
Funding sought in the vote 1—operating expenditures will provide the department with the necessary funding to continue activities related to the COVID-19 response after the expiry of the Public Health Events of National Concern Payment Act (PHENCPA).
Additional warehouse space in Canada for Public Health Agency of Canada
Prior to the COVID-19 pandemic, the Public Health Agency of Canada’s (PHAC) National Emergency Strategic Stockpile (NESS) warehouse network comprised of [Redacted] warehouses totalling approximately 167,000 square feet. This included [Redacted] warehouses (119,000 square feet) and [Redacted] warehouses (48,000 square feet). While these warehouses were relatively full prior to the pandemic, not all of its material was relevant in addressing the current situation.
The volume of personal protective equipment (PPE) ordered in response to the pandemic was well beyond Public Health Agency of Canada (PHAC) capacity to receive and store such supplies. Public Services and Procurement Canada (PSPC) has supported PHAC by entering into leases and service contracts to provide with additional warehousing capacity.
PSPC initially entered into short-term leases for PHAC for 2 additional warehouses [Redacted] totalling approximately 187,000 square feet. These warehouses are expected to be vacated upon expiry of the leases in March 2021. These warehouses are currently relatively full, but some further material continues being delivered to them.
A new lease at the [Redacted] has been secured to replace these expiring leases with a start date of January 1, 2021, for a fixed period of 8 years with a total of 127,000 square feet of warehouse. This warehouse has not started receiving material.
A 350,000-square-foot facility in [Redacted] was also leased for 3 years until July 2023, with an additional 1-year option until July 2024. This warehouse is 100% full until racking is installed in it to grow its capacity.
A request has also been made to use a warehouse in [Redacted] which is vacant and in PSPC inventory. This warehouse was used for PSPC PPE surge capacity storage during summer 2020. This site will provide PHAC with a long term solution for 73,000 square feet of warehousing space, which can be put into service immediately. This is not yet in use.
Initially when PHAC started receiving large quantities of additional PPE in April 2020, they leveraged 100,000 square feet of warehouse space in [Redacted] from [Redacted] a key ongoing subcontractor of Canada Post. This warehouse did, however, quickly run out of space and was only available for the short term. The operations at that warehouse also relied on personnel from the Canadian Armed Forces. This is no longer being used.
On May 4, 2020, a letter of interest/request for information (LOI/RFI) was published on Buy and Sell to gather information regarding a longer-term warehousing, inventory management and transportation solution. This notice closed on May 7, 2020 and the review of the expressions of interest resulted in PHAC directly awarding a short-term contract to Groupe Robert Inc. on May 22, 2020 to support immediate warehousing needs.
Further to the LOI/RFI process, PSPC then awarded a 6-month contract to Groupe Robert Inc. on June 14, 2020. This contract provided 215,000 square feet of warehousing space in the [Redacted] Area, and 150,000 square feet in the [Redacted] Area, transportation capabilities and a warehouse management system capability. These warehouses quickly filled as the volume of PPE delivered at the time was significant. Of these warehouses, one in [Redacted] is in the final stages of being emptied by shipping its content to the provinces. Another adjacent warehouse in [Redacted] and one in [Redacted] are only available until the end of November 2020. Planning is already underway to ship most of the contents of these 2 warehouses to provinces. Finally, the last warehouse under this contract in [Redacted] is only available until the end of December 2020. In total, approximately 16,000 pallets currently remain in these warehouses at this time. These warehouses are approximately 50% full, but this is normal since this contract is expiring by end of December 2020.
Additionally, a 2-year service contract was awarded to Groupe Robert Inc. on July 31, 2020, to operate the 350,000-square-foot facility leased by PSPC on behalf of PHAC in [Redacted]. The facility is currently full with approximately 20,000 pallets. The installation of racking that will start in phases in November will allow to gradually grow the capacity to 34,000 pallets by the end of February 2021.
As further warehousing capacity was required during the summer, existing and new contracts were utilized with different suppliers, including Overseas Express Consolidators, Bolloré Logistics Canada and Urban Valley Transport Ltd. to meet the required warehousing capacity.
For Overseas Express Consolidator (OEC), we have access to a dedicated 100,000-square-foot warehouse in [Redacted] until July 2021. This warehouse is currently 83% full with 7.6 million gowns for a total of 5,400 pallets. OEC also provides some space in the [Redacted] Area where 74 million nitrile gloves are currently in short term storage before being distributed across Canada.
For Bolloré Logistics Canada, they are currently storing 38 million gowns and 3.3 million litres of hand sanitizer across [Redacted] different warehouses in [Redacted] representing approximately 33,000 pallets in total. 6,200 pallets of hand sanitizer are in the process of being shipped to our longer-term service provider Metro Logistics Inc. The Bolloré contract does not provide committed warehouse space for a given period but rather provides transitional space as and when required and if available. The contract allows the flexibility for additional space to be provided if needed.
For Urban Valley Transport Ltd., they are currently storing 13 million gowns, 2.5 million face shields and 3 million litres of hand sanitizer across 6 different warehouses in [Redacted] representing approximately 18,000 pallets in total representing approximately 120,000 square feet of space usage. The Urban Valley contract does not provide committed warehouse space for a given period but rather provides transitional space as-and-when required and if available. The contract allows the flexibility for additional space to be provided if needed.
In parallel with the above work, PSPC proceeded with a request for proposal for national logistics and warehousing services on July 16, 2020, to provide for warehousing, inventory management and distribution services. As a result of this competitive process, PSPC awarded a contract to Metro Logistics Inc. on September 11, 2020. The contract is for a period of 2 years until August 2022, with an option for a further 1-year extension until August 2023.
Under this contract, PHAC is being provided with 2 dedicated warehouses in the [Redacted] providing with 463,000 square feet to store 58,000 pallets, 2 dedicated warehouses in the [Redacted] Area [Redacted] providing with 174,000 square feet to store 15,000 pallets and 1 dedicated warehouse in [Redacted] to provide with 154,000 square feet to store 13,000 pallets. Under this contract, hand sanitizer is also being stored in each region at subcontractor facilities as it requires special handling procedures given it is a dangerous goods/hazardous product. In total, warehousing capacity of approximately 120,000 square feet to store 10,000 pallets of hand sanitizer will be made available at such subcontractor’s facilities. To date, after receiving material for only 1 month, their various warehouses are approximately 10% full with more than 9,500 pallets of the total capacity of 96,000 pallets having been shipped to Metro. This contract also provides national distribution to all provinces and territories and a warehouse management system capability to facilitate the reporting and control of material.
In August 2020, the Government of Canada announced the creation of the Essential Services Contingency Reserve (ESCR), an emergency backstop of PPE and other critical supplies, managed by PSPC. The ESCR includes a number of warehouses across Canada, managed under a separate contract by SCI Logistics, a subsidiary of Canada Post, with Purolator serving as the distribution and delivery agent.
Public Services and Procurement Canada’s role in management of the National Emergency Strategic Stockpile
Prior to COVID-19, the Public Health Agency of Canada’s (PHAC) National Emergency Strategic Stockpile (NESS) warehouse network was comprised of [Redacted] warehouses totalling approximately 167,000 square feet. This included [Redacted] warehouses (119,000 square feet) and [Redacted] warehouses (48,000 square feet). The amount and volume of personal protective equipment (PPE) ordered in response to the pandemic was well beyond PHAC’s capacity to receive and store. PSPC has supported PHAC by entering into service contracts and leases to provide with additional warehousing capacity.
- The health and safety of Canadians is our top priority, and that means ensuring life-saving medical supplies reach our frontline healthcare providers as quickly as possible
- To achieve this goal, multiple partnerships have been implemented to warehouse, inventory and distribute the PPE ordered by Canada
- On September 11, 2020, PSPC awarded a competitive contract to Metro Logistics Inc. on behalf of PHAC to support warehousing and distribution of PPE to provinces and territories
If pressed on Public Services and Procurement Canada’s role:
- PSPC is providing procurement services to PHAC to support them with the various logistics activities required to inventory, warehouse and distribute PPE
- PSPC is working closely with PHAC in managing the contracts awarded to various logistics suppliers
- PSPC has entered into leases to provide PHAC with additional warehousing capacity
If pressed on Public Health Agency of Canada’s role:
- PHAC is responsible for managing the National Emergency Strategic Stockpile
- PHAC is maintaining oversight on the amounts of PPE and supplies available, including the monitoring of expiry dates and distribution to provinces and territories
If pressed on request for proposal for national logistics and warehousing services:
- to facilitate the intake and distribution of large volumes of PPE and medical supplies, a notice was posted on the Public Services and Procurement Canada Buy and Sell website to solicit interest from major logistics service providers
- this notice closed on May 7 and the review of the expressions of interest resulted in a short-term contract to Groupe Robert to support immediate warehousing needs
- a request for proposal was also published on the Buy and Sell website and on September 11, 2020, PSPC awarded a competitive contract to Metro Logistics Inc. on behalf of PHAC
- this contract ensures warehousing across the country to accommodate and best position supplies for distribution to the provinces and territories
If pressed on Metro’s role:
- Metro Logistics Inc. was awarded a contract for a period of 2 years until August 2022, with an option for a further 1-year extension
- this contract provides significant warehousing capacity in the [Redacted] Area, [Redacted] area, and [Redacted]
- this contract also provides national distribution to all provinces and territories
- the contract also includes a warehouse management system capability to facilitate the reporting and control of material
If pressed on Groupe Robert’s role:
- on May 22, PHAC awarded a contract to Groupe Robert as an immediate temporary measure to store PPE
- subsequently, on June 13, after contacting several firms, we awarded a contract to Groupe Robert until end of December 2020 for warehousing, inventory management and transportation needs
- this contract provided 215,000 square feet of warehousing space in the [Redacted] Area, and 150,000 square feet in the [Redacted] Area, as well as a warehouse management system capability to facilitate the reporting and control of the materiel
- additionally, a 2-year contract was awarded to Groupe Robert on July 31, to operate a facility leased by the Government of Canada in [Redacted]
If pressed on additional warehousing measures:
- a number of additional suppliers, including Urban Valley Transport Ltd., Overseas Express Consolidators and Bolloré Logistics Canada, have also been used to support inventory management, warehousing and distribution
- through such contracts, PPE is currently being warehoused in [Redacted]
Since the outset of the pandemic, the government has adapted to manage the volume of supplies. These measures have included service contracts and leases for additional warehouses, turning to the Canadian Armed Forces for assistance with logistics, and leveraging existing agreements.
A number of different suppliers, including Maritime Ontario, Groupe Robert Inc, Metro Logistics Inc, Urban Valley Transport Ltd., Overseas Express Consolidators and Bolloré Logistics Canada have been used to support inventory management, warehousing and distribution. Through such contracts, PPE is currently being warehoused in [Redacted].
PSPC also entered into short-term leases for PHAC for 2 additional warehouses [Redacted] totalling approximately 187,000 square feet. These warehouses are expected to be vacated upon expiry of the leases in March 2021. A new lease at the [Redacted] has been secured to replace these expiring leases with a start date of January 1, 2021, for a fixed period of 8 years with a total of 127,000 square feet of warehouse.
On April 1, 2020, PSPC signed, on behalf of 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. The agreement had primarily been put in place to access Amazon’s easy-to-use online interface, which allowed individual health establishments to order supplies directly from PHAC. As provinces and territories requested that PHAC deliver the supplies directly rather than awaiting for orders from them, the requirement evolved beyond what was covered in the Amazon agreement. As a result, the contract with Amazon was suspended in mid-July 2020. Prior to the suspension, only $200,000 has been spent under this contract.
A separate agreement between PHAC and Canada Post allowed for the warehousing of the PPE at [Redacted] a key on-going subcontractor of Canada Post. This warehouse quickly ran out of space. PHAC subsequently awarded, on May 22, 2020, a contract to Groupe Robert as a temporary measure while a long-term solution was being developed.
On May 4, 2020, a letter of intent / request for information (LOI / RFI) was published on Buy and Sell to gather information in relation to a longer-term warehousing, inventory management and transportation solution. Further to the LOI / RFI process, on June 13, 2020, PSPC awarded a 6-month contract to Groupe Robert Inc. This contract provided 215,000 square feet of warehousing space in the [Redacted] Area, and 150,000 square feet in the [Redacted] Area, transportation capabilities and a warehouse management system capability. These warehouses quickly filled as the volume of PPE being delivered at the time was significant. Of the warehouses, one in [Redacted] is in the final stages of being emptied with its content being shipped to provinces. Another adjacent warehouse in [Redacted] and 1 in [Redacted] are only available until the end of November 2020. Planning is already underway to ship most of the contents of these 2 warehouses to provinces. Finally, the last warehouse under this contract in [Redacted] is only available until the end of December 2020. At that point, the contract will come to its end.
PSPC also proceeded with a request for proposal for national logistics and warehousing services on July 16, 2020, to provide for warehousing, inventory management and distributions services. As a result of this competitive process, PSPC awarded, on behalf of PHAC, a 2-year contract, with an option for an additional year to Metro Logistics Inc. The contract, awarded on September 11, 2020, ensures warehousing across the country to accommodate and best position supplies for distribution to the provinces and territories.
In August 2020, the Government of Canada announced the creation of the Essential Services Contingency Reserve (ESCR), an emergency backstop of PPE and other critical supplies, managed by PSPC. The ESCR includes a number of warehouses across Canada, managed under a separate contract by SCI Logistics, a subsidiary of Canada Post, with Purolator serving as the distribution and delivery agent.
COVID-19 Supply Council
The Government of Canada has created a COVID-19 Supply Council which brings together a diverse group of leaders to provide the government with advice on the procurement of critical goods and services required as part of Canada’s COVID-19 response and recovery.
- The Government of Canada has created a COVID-19 Supply Council which brings together a diverse group of leaders to provide the government with advice on the procurement of critical goods and services to fight the pandemic
- The council is providing advice on building innovative and agile supply chains for goods in common use, such as masks, gloves and disinfectants. It does not discuss specific Government of Canada procurement processes
- The COVID-19 Supply Council has no role in the Government of Canada’s procurement processes or contract awards
If pressed on the registration of council members on the lobbyist registry:
- council members were selected because they are leaders in the private and not-for-profit sectors. This inherently means that many will have interests in matters of public policy, which may have required their registration on the lobbyists registry
- the Supply Council itself has no involvement in decisions related to legislative proposals, policy or program design, awarding of financial benefits, or awarding of contracts on behalf of the federal government
The council is providing advice on building innovative and agile supply chains for goods in wide use such as masks, gloves and disinfectants, including production, sourcing, shipping and distribution strategies as the situation surrounding COVID-19 continues to evolve. It is an advisory body reporting to the Minister of Public Services and Procurement, who serves as the chair of the council. The council has held 3 meetings (May 8, 2020, May 28, 2020 and June 22, 2020), and the next meeting has yet to be scheduled. The council consists of 16 members from across the public, private and non-profit sectors.
The following is a list of the COVID-19 Supply Council members:
- Bramwell Strain, President and Chief Executive Officer (CEO) of the Business Council of Manitoba
- Dave McHattie, Vice President, Institutional Relations Tenaris Canada; Chair of the Board of Canadian Manufacturers and Exporters
- The Honourable Perrin Beatty, Progressive Conservatice (PC), Order of Canada (OC), CEO and President, Canadian Chamber of Commerce
- Tabatha Bull, President and CEO of the Canadian Council for Aboriginal Business
- Diane J. Brisebois, President and Chief Executive Officer of the Retail Council of Canada (RCC)
- Tina Lee, CEO, T&T Supermarkets
- Christine Hrudka, Chair of the Canadian Pharmacists Association
- Jodi Hall, Chair of the Canadian Association of Long Term Care; Executive Director, New Brunswick Association of Nursing Homes (NBANH)
- Sue Paish, CEO, Digital Supercluster and leads BC Supply Hub
- Eric Edmondson, President and CEO, AirGeorgian; Chair of the Board of the Air Transport Association of Canada
- François Laporte, President of Teamsters Canada
- Joyce Carter, President and CEO of Halifax International Airport Authority (HIAA); Elected Chair of the Canadian Airports Council (CAC)
- Stephen Laskowski, President, Canadian Trucking Alliance (CTA)
- Sylvie Vachon, President and CEO of the Port de Montréal
- Conrad Sauvé, President and CEO of the Canadian Red Cross
- Paulette Senior, President and CEO, Canadian Women's Foundation
Members were selected for their expertise and leadership in their respective fields and their work on the council will be on a voluntary basis. The council will be convened until the end of 2020, a term that the minister can extend if circumstances require it.
International competition and export restrictions impacting personal protective equipment procurement
Some countries are continuing to closely control the export of personal protective equipment (PPE), increasing competition for the procurement of these goods. Media has also reported on several instances of medical supplies procured from unfamiliar overseas suppliers not meeting advertised quality standards.
- Given the high level of complexity in the global supply chain, ensuring quality of the product Public Services and Procurement Canada (PSPC) is purchasing is extremely important
- We continue to work closely with our partners around the world, including embassies, as well as with on the ground logistics expertise in the private sector, to purchase needed supplies
- We are taking a multi-pronged approach by purchasing supplies internationally where possible, while at the same time building domestic capacity
- Our goal is to ensure Canada has more than sufficient supplies on hand in anticipation of future needs for our provinces, territories, frontline health workers and Canadians
If pressed on quality-issues of medical supplies:
- we are working with established suppliers and distributors, as well as quality assurance experts, and we have strong processes in place to help ensure that the supplies we receive meet all necessary standards
- in addition, the Public Health Agency of Canada has robust testing measures in place, and they are in place for the very purpose of ensuring quality control of these essential products before they go out to provinces and territories
- although we have encountered situations where supplies were found to be substandard, we acted quickly to address these issues
- we are working closely with suppliers to ensure that products are fit for the intended use
If pressed on international export conditions:
- countries have implemented export conditions on the goods critical to combating COVID-19, including PPE
- in recent weeks, we have seen improvements in the out flow of some PPE, but others, such as N95 respirators, seem to still undergo a high level of scrutiny by custom officials before they are allowed to be exported
- this environment has made it challenging to source and acquire the PPE that Canada needs
- to ensure consistent deliveries, PSPC has taken the approach of contracting with multiple suppliers sourcing their material from many countries
- this is why we are collaborating with provinces and territories on an ongoing basis to identify their needs and establish bulk buys to purchase required equipment, supplies, and services to combat COVID-19
Global demand for medical supplies remains high for the fight against COVID-19, and competition remains fierce for their delivery. The federal government is procuring materials from a variety of sources, including from overseas suppliers. In addition to federal supply purchases, provinces and cities are also sourcing their own equipment.
Some countries are making it challenging to export face masks, gloves and other medical supplies critical for front-line workers in the fight against the COVID-19 pandemic, resulting in a more time-consuming procurement process. China is the largest supplier of PPE in the world, and global supply was impacted when the country had to shut down its factories earlier this year when the outbreak began. Canada explored getting supply from other countries, but still encountered difficulties as protectionist measure, such as the invocation of the Defense Production Act in the US, or export bans in other countries severely impacted export opportunities in these countries. Canada has taken a 2-pronged approach to the acquisition of supplies, by scaling up domestic capacity while seeking to acquire PPE internationally.
Labour exploitation in procurement of personal protective equipment
The global nature of supply chains puts Canada’s personal protective equipment (PPE) procurements at potential risk of having been produced using forced labour and human trafficking.
- The Government of Canada is committed to addressing the risk of forced labour and human trafficking in federal procurement supply chains through the National Strategy to Combat Human Trafficking
- Work is underway to ensure we do business with ethical suppliers, including updating the Code of Conduct for Procurement to include expectations for suppliers on human and labour rights; and preparing a request for proposals for services to conduct a risk assessment of our procurements
- The risk assessment will identify which goods purchased by Public Services and Procurement Canada (PSPC) are at risk of having been produced using human trafficking, forced labour, and child labour
- The findings of the risk assessment will enable us to develop an evidence-based approach to protect procurement supply chains from exposure to forced labour
If pressed on personal protective equipment procurements linked to Xinjiang, China:
- the Government of Canada is aware of the risks of forced labour associated with supply chains in China, and international supply chains in general
- the Government of Canada has favoured a made-in-Canada solution to ramp up domestic production of PPE which reduces exposure to global supply chains that could be vulnerable to forced labour
If pressed on lack of compliance monitoring for existing measures:
- human trafficking and forced labour are clandestine crimes, often hard to detect as they tend to occur beyond tier one suppliers and at much lower tiers in the supply chain
- the global context in which most companies operate makes it challenging to directly monitor compliance with local laws and international human and labour rights in other countries
- the Government of Canada recognizes that addressing the risks of human trafficking and forced labour in our supply chains requires sustained effort over time, and we are working on a number of additional measures to enhance the integrity of our procurement system
If pressed on the risk assessment :
- the risk assessment is an important step for my department to understand where supply chains may be vulnerable to risks of forced labour and which goods are at a higher risk
- the assessment will also suggest an overall prioritization approach by sector (for example apparel, furniture) to maximize the impact of future efforts
- the risk assessment is a key step in developing an evidence-based approach to address human trafficking in federal procurement supply chains
The complexity of global supply chains enhances the vulnerabilities of those in precarious work situations in Canada and around the world. According to a 2017 joint report by the International Labour Organization (ILO) and the Walk Free Foundation, forced labour is present throughout all regions of the globe and most prevalent in manufacturing, construction, mining, agriculture, and domestic work. In a 2016 report, World Vision Canada found that over 1,200 companies operating in Canada are importing goods that may have been produced by child or forced labour.
Supply chains for PPE are spread across numerous countries with varying business practices and government regulations. Compounded by the global urgency to acquire PPE, this context may enable an environment where workers’ conditions are overlooked.
The Government of Canada is taking actions, under the National Strategy to Combat Human Trafficking to ensure that federal suppliers comply with international labour and human rights. As part of the national strategy, PSPC is leading the following initiatives:
- revising the Public Services and Procurement Canada Code of Conduct for Procurement to include expectations on human and labour rights for suppliers
- conducting an assessment of the risks of human trafficking and forced labour in federal procurement supply chains
- examining long-term approaches to address human trafficking for labour exploitation in federal procurement supply chains
As part of planned actions under the national strategy, PSPC will also create information resources for suppliers to increase its awareness of potential risks in their supply chains (2021 to 2022); and create requirements for suppliers of high-risk goods to address risks in their supply chain (2022 to 2023).
Moreover, in July 2020, clauses on ‘ethical procurement’ and ‘origin of work’ were added in new PPE contracts and in all newly issued request for proposals for PPE. The ‘origin of work’ clause requires bidders to provide the name, address and country of manufacturers of the item, including subcontractors. The ‘ethical procurement’ clause, requires bidders to certify that they and their first-tier subcontractors comply with the same human rights and labour standards set out in the Ethical Procurement of Apparel Policy.
Indigenous procurement process
Public Services and Procurement Canada (PSPC) has been procuring medical supplies and personal protective equipment (PPE), and is working to increase the participation of Indigenous businesses in federal procurement.
- The Government of Canada is committed to increasing the participation of Indigenous businesses in federal procurement
- We are working with Indigenous Services Canada and the Treasury Board of Canada Secretariat to create more opportunities for Indigenous businesses to succeed and grow, by creating a new target to have at least 5% of federal contracts awarded to Indigenous businesses
- As we move forward, we will continue to promote increased participation of Indigenous businesses in the federal procurement process
If pressed on Indigenous participation in federal procurement for COVID-19:
- to date our focus has been on putting PPE in the hands of front line health employees as quickly as possible
- as part of these efforts, we have awarded a number of contracts to Indigenous businesses worth millions of dollars
- on June 4, my department launched a request for proposal to solicit interest strictly from Indigenous businesses to provide disposable non-medical face coverings
- in August, we signed contracts with 7 Indigenous firms that met the established criteria worth approximately $3 million for a total of 15 million non-medical disposable masks
- in October, we amended one of the contract to exercise the option to procure an additional 20 million non-medical disposable masks for an additional $2.94 million
- we have also completed another tender for non-surgical cloth face masks. The request for proposal was issued on June 26, and was open only to Indigenous businesses
- we have awarded contracts to 2 Indigenous companies who will each provide 250,000 masks with an option to purchase an additional 2 million masks over a 2-year period
- as we move forward, my department will continue to work with other federal organizations and Indigenous businesses and organizations to increase the participation of Indigenous businesses in federal procurement
In response to the COVID-19 pandemic, PSPC has awarded 28 contracts to 22 self-identified Indigenous businesses, collectively worth almost $76 million including for logistics and air charter services, accommodation and cleaning services, information technology (IT) professional services, medical and laboratory supplies, masks, hand sanitizer and thermometers.
PSPC is working actively with Indigenous groups to increase their participation in federal procurement more broadly. This includes ongoing work with the Indigenous Business COVID-19 Taskforce, which brings together numerous Indigenous groups, including the Canadian Council for Aboriginal Business (CCAB), National Aboriginal Capital Corporation Association (NACCA), Inuit Tapiriit Kanatami (ITK) and Pauktuutit Inuit Women of Canada. The taskforce seeks to identify and mobilize Indigenous businesses to provide medical equipment and supplies, including by creating a database of Indigenous businesses. Indigenous Services Canada is the lead department federally, with PSPC supporting the taskforce’s work. PSPC is leveraging the database to increase the participation of Indigenous businesses in federal procurement.
In addition, PSPC works in close collaboration with the Council for the Advancement of Native Development Officers (CANDO), a national Indigenous organization involved in community economic development. The partnership is focused on helping the council and its economic development officers support Indigenous businesses across Canada by providing information, focused access, and services from the Office of Small and Medium Enterprises.
The minister’s Supply Council includes the CCAB. This council provides the minister with ideas for strengthening and streamlining the government’s efforts to support essential services organizations in accessing supplies in the context of the COVID-19 pandemic.
In addition, the Minister’s Supplier Advisory Committee contributes to understanding and addressing barriers that smaller businesses face in federal procurement, including those faced by Indigenous-owned businesses. The Canadian Aboriginal and Minority Suppliers Council (CAMSC), represented by its President Cassandra Dorrington, has been an active and contributing member since the Supplier Advisory Committee’s first meeting in 2013.
Security screening equipment for Global Affairs Canada
On behalf of Global Affairs Canada (GAC), Public Services and Procurement Canada (PSPC) issued a national master standing offer (NMSO) to Nuctech Inc., a Chinese state-owned company, for x-ray screening equipment for use in non-operational areas in Canadian missions abroad.
- The government is committed to ensuring the safety of Canadians and visitors in its missions abroad
- Public Services and Procurement Canada responded to a requirement from Global Affairs Canada for the supply of security screening equipment on an as-and-when requested basis
- The purpose of this standing offer was to replace and upgrade Global Affairs’ older, conveyer style parcel x-ray machines currently in use at Canadian embassies worldwide
- These x-ray machines are located in non-operational areas and scan for prohibited items in parcels, handbags, backpacks, briefcases, etc. that enter the building
- No equipment has been purchased from Nuctech Company Limited under the standing offer
- In line with Canada’s commitment to the safety and security of our workplaces abroad, Global Affairs Canada is reviewing purchasing practices when it comes to security
- Any possible issue related to security will be thoroughly reviewed and all appropriate actions taken
If pressed on awarding the National Master Standing Offer to Nuctech:
- following a competitive procurement process, PSPC awarded 2 standing offers for the supply of security screening equipment, 1 to a US firm for walk-through metal detectors, and 1 to a firm in China for x-ray machines
- Nuctech was selected because it was compliant with the mandatory technical requirements and had the lowest bid of all the firms that were also compliant
- the various trade agreements to which Canada is a signatory applied and Nuctech was eligible to bid on this process
- to date, no call-ups have been issued against the standing offer. Each time a call-up is made against the standing offer a separate contract is entered into with the selected firm
- the technical authority for this solicitation process did not identify any security requirements. No PSPC security services were identified as required and therefore none were invoked, nor were any requested by exception
If pressed on the Integrity Regime:
- the government is committed to taking action against improper, unethical and illegal business practices and holding companies accountable for such misconduct
- PSPC has a framework of laws, regulations and policies in place to protect the integrity of the federal procurement system, including the government-wide Integrity Regime
- the regime has been in place since 2015. It holds suppliers accountable for their misconduct, and also encourages them to cooperate with law enforcement and take corrective action
- under the regime, a supplier may be suspended or declared ineligible to do business with the government if, in the previous 3 years, it, members of its board of directors or its affiliates, have been charged with or convicted of one of the offences listed in the Ineligibility and Suspension Policy in Canada
- suppliers may also be debarred if they have convictions for similar offences abroad
- prior to the award of a contract, the status of the proposed supplier is verified against the requirements of the Integrity Regime
If pressed on the Postmedia story on Nuctech (Integrity Regime implications):
- we are aware of allegations connected to Nuctech
- the Government of Canada’s Integrity Regime makes determinations of ineligibility or suspension based on convictions or charges associated with one of the offences listed in the Ineligibility and Suspension Policy
- in this instance, the verification process was followed and the supplier was found not to be ineligible under the regime as no charges or convictions were found
The requirement was to establish 2 NMSOs for the supply of security screening equipment (conveyor style x-ray machines and walkthrough metal detectors) for GAC and other federal departments on an as and when requested basis. The NMSOs will be in place for a period of 3 years from date of issuance with the option to extend for 2 additional 1-year periods under the same terms and conditions.
The request for standing offer was issued on December 16, 2019, and closed on April 3, 2020. An offer had to comply with the requirements of the request for standing offer and meet all mandatory technical evaluation criteria listed therein to be declared responsive. The responsive offer with the lowest evaluated price for each product group were recommended for issuance of a standing offer. No security requirements were identified for this standing offer by the technical authority (Global Affairs Canada). As such no PSPC security services were identified as required, nor were any requested by exception, and PSPC’s Contract Security Program was not engaged in the solicitation process.
Bidders had to meet a mandatory technical requirements in order to be considered for evaluation on price. Mandatory technical requirements included providing alerts for various dangerous materials like explosives and weapons, a variety of screening modes, and safety protocols.
As for all contracts, PSPC conducted an integrity check on Nuctech and no issues were identified.
The Canadian International Trade Tribunal (CITT) received a complaint from K’(Prime) Technologies Inc. (KPrime), of Calgary, Alberta, concerning a procurement by PSPC, more specifically for conveyer xray machines and walk-through metal detectors. On July 31, 2020, the CITT accepted the complaint for enquiry. To date, no confidentiality order has been issued.
Related Integrity Regime items in the Postmedia article by John Ivison
A story published by Postmedia mentions adverse information relating to Nuctech operations in Taiwan, Namibia, and Europe. However, under the Integrity Regime, determinations of ineligibility and suspension can only be made on the basis of charges or convictions related to one of the listed offences in Canada or abroad. Adverse information alone would not be sufficient for declaring a supplier to be ineligible.
Supplying Canada’s response to COVID-19
November 10, 2020: 11:30 am (EDT)
The Government of Canada is taking a whole-of-government approach in response to the coronavirus disease (COVID-19), including major investments in equipment and supplies for the health sector, as well as research, science and innovation.
Coordinated response to purchasing equipment and supplies
The Government of Canada is collaborating with provinces and territories on an ongoing basis to identify their needs and purchase required equipment, supplies and services to combat COVID-19.
Canada is taking an aggressive approach to buying, especially when it comes to personal protective equipment for front-line healthcare workers. This includes:
- ordering in bulk on behalf of provinces and territories
- supplementing those orders by purchasing everything immediately available that meets requirements
- ramping up domestic manufacturing capacity, through the Plan to Mobilize Industry to fight COVID-19, being led by Innovation, Science and Economic Development Canada
This is over and above efforts provinces and territories are taking to secure their own supply.
The quantities ordered for personal protective equipment and medical supplies are intended to meet short-term needs and anticipate Canada’s long-term needs as we continue to respond to COVID-19 while preparing for any eventuality over the coming months.
The government is also coordinating shipments of supplies from other countries. Canada has established on-the-ground support in China for transportation, receiving, storage services and customs clearances. This will be an ongoing process as orders are ready to be shipped to Canada.
Overview of purchases and deliveries
This table provides an overview of the Government of Canada’s purchases of selected personal protective equipment and medical supplies to support 3 key areas:
- the healthcare sector
- federal government departments and agencies
- the Essential Services Contingency Reserve
“Quantities ordered” includes products scheduled for delivery by March 31, 2022.
Due to the current complex supply chain environment, “quantities ordered” may fluctuate because of new contracts, contract amendments and cancellations.
“Quantities received” includes the approximate number of products that have been shipped and are in transit or have arrived at a Government of Canada warehouse.
While specific quantities change on a regular basis, the bulk of these supplies are directed to frontline healthcare workers.
As part of our commitment to transparency and accountability, we are publicly disclosing contracting information to the fullest extent possible, supplier names and contract amounts can be found on our new COVID-19 contracting information page.
COVID-19 contract information
|Item table 1 note 1||Quantities ordered||Quantities received|
|Hand sanitizer (litres)||20,646,000||20,646,000|
|N95 respirators table 1 note 2||161,735,540||66,071,116|
|Non-medical masks: Face coverings||77,345,784||25,053,813|
|Non-medical masks: Cloth masks||9,000,600||7,928,071|
Table 1 Notes
- Supplies for the healthcare sector were ordered on behalf of the Public Health Agency of Canada for distribution to provinces and territories, as part of bulk and proactive purchases that began in January 2020. These are supplementary to the existing National Emergency Strategic Stockpile, as well as to the stocks of supplies that exist in, and are being procured directly by provinces and territories
- Given the high global demand for these goods, there is a possibility that not all contracts will be entirely fulfilled. This has been taken into consideration in the procurement approach, and additional steps are being taken to meet our goal of having sufficient supply to exceed demand
Working with Canadian companies
Public Services and Procurement Canada (PSPC), in collaboration with the Public Health Agency of Canada and Innovation, Science and Economic Development Canada, is exploring all options for securing the necessary equipment and supplies to fight COVID-19, including new and existing sources of supply—both here at home and internationally.
Below are examples of how domestic suppliers are stepping up to support the effort.
Bauer (Blainville, Quebec)
Bauer has shifted its hockey skates production lines to make face shields for front-line medical staff. The Government of Canada has signed an agreement to receive hundreds of thousands of face shields from Bauer.
Fluid Energy Group (Calgary, Alberta)
The Government of Canada has signed a contract with Fluid Energy Group for millions of litres of hand sanitizer to support the COVID-19 response.
To find out more about Fluid Energy Group: Fluid Energy making 10 million litres of hand sanitizer for the Government of Canada
General Motors Canada (Oshawa, Ontario)
General Motors (GM) Canada is using its manufacturing capability and skilled workforce to domestically produce surgical masks and face coverings. The Government of Canada has signed a contract with GM Canada to receive millions of surgical masks and face coverings for front-line health care workers.
Hawktree Solutions (Ottawa, Ontario)
The Government of Canada has signed a contract with Hawktree Solutions, a health and safety product company, to provide millions of masks and thousands of goggles and bottles of Quebec-made hand sanitizer.
To find out more about Hawktree Solutions: Hawktree Solutions providing the federal government with goggles, masks and hand sanitizer
HP Canada (Mississauga, Ontario)
The Government of Canada has signed a contract with HP Canada, which will use its 3D printing technology to provide hundreds of thousands of face shields to protect healthcare workers.
Irving Oil (Saint John, New Brunswick)
Irving Oil has retooled its production line to produce much needed hand sanitizer. The Government of Canada has signed a contract with Irving to provide hundreds of thousands of litres of hand sanitizer, with delivery already underway.
Jacobs & Thompson (Toronto, Ontario)
The Government of Canada has signed a contract with Jacobs & Thompson, which has added production lines to provide millions of face shields to protect healthcare workers.
Joseph Ribkoff (Dorval, Quebec)
The Government of Canada has signed a contract with Joseph Ribkoff, a Canadian women’s clothing company, to manufacture and provide millions of gowns for healthcare workers.
Logistik Unicorp (Saint-Jean-sur-Richelieu, Quebec)
Logistik Unicorp has mobilized its domestic supply chain and retooled production to produce medical gowns. The Government of Canada has signed a contract with Logistik Unicorp to provide millions of gowns for front-line healthcare workers.
Medicom (Pointe-Claire, Quebec)
The Government of Canada has signed a long-term agreement with Medicom to ramp up domestic production to provide millions of N95 respirators and surgical masks per year for the next 10 years.
To find out more about Medicom: Medicom Group supporting Canada’s efforts to combat COVID-19
PRI-MED (Edmonton, Alberta)
The Government of Canada has signed a contract with PRI-MED, a medical product manufacturing company, to provide thousands of coveralls and millions of gloves, gowns and surgical masks for healthcare workers.
To find out more about PRI-MED: Edmonton’s PRI-MED: A COVID-19 story like no other
Samuelsohn (Montréal, Quebec)
The Government of Canada has signed a contract with Samuelsohn, a men’s luxury clothing company, which has retooled its production lines to provide millions of medical gowns for healthcare workers.
SpiritRx Services (Winnipeg, Manitoba)
SpiritRx Services is an Indigenous owned company that has ramped up delivery of personal protective equipment and medical supplies to respond to both provincial and federal needs. The Government of Canada has signed a contract with SpiritRx Services to provide thousands of digital thermometers. The company is also providing the federal First Nations Inuit Health Branch with surgical masks and infrared thermometers.
To find out more about SpiritRx Services: Indigenous-owned company delivering essential goods to help all Canadians
Sterling Industries (Concord, Ontario)
Sterling Industries, affiliated with Honda, has created a face shield that is designed and manufactured in Canada. The Government of Canada has signed a contract with Sterling Industries to provide millions of face shields to protect healthcare workers.
Stryker (Waterdown, Ontario)
The Government of Canada has signed a contract with Stryker to provide Health Canada-approved sterilization units that will sterilize equipment like N95 respirators and allow it to be reused.
To find out more about Stryker: How one Canadian company extended the life of disposable N-95 masks
The Canadian Shield (Kitchener, Ontario)
The Canadian Shield was founded by InkSmith to produce personal protective equipment. The Government of Canada has signed a contract with The Canadian Shield to provide millions of face shields to protect healthcare workers.
To find out more about The Canadian Shield: The Canadian Shield playing a key role in supporting the Government of Canada
The Stevens Company (Brampton, Ontario)
The Government of Canada has signed contracts with The Stevens Company to provide hard surface cleaners made in Oakville, Ontario, and shoe covers made in Montréal, Quebec, as well as other items to help combat COVID-19.
To find out more about The Stevens Company: The Stevens Company is helping the Government of Canada in the fight against COVID-19
Toronto Stamp (Toronto, Ontario)
Toronto Stamp has retooled its usual production of signs, badges, stamps and tags to produce face shields. The Government of Canada has signed a contract with Toronto Stamp to provide millions of face shields for front-line healthcare workers.
To find out more about Toronto Stamp: From a WhatsApp message to a contract with the Government of Canada
Windsor Mold Group (Windsor, Ontario)
The Government of Canada has signed a contract with Windsor Mold Group, which has retooled its production to provide millions of face shields and thousands of head bands to protect healthcare workers.
WUXLY (Toronto, Ontario)
The Government of Canada has signed a contract with WUXLY, an outerwear clothing company, to provide over 1 million gowns for front-line healthcare workers.
To find out more about WUXLY: WUXLY: Warming to the made-in-Canada personal protective equipment
Yoga Jeans (Montréal and Beauce region, Quebec)
The Government of Canada has signed a contract with Yoga Jeans, a family-owned denim company that has retooled its manufacturing facility in Saint-Côme-Linière, Quebec, to provide millions of gowns for front-line health care workers.
- Calling all suppliers: Help Canada combat coronavirus disease (COVID-19)
- Interim order respecting the importation and sale of medical devices for use in relation to COVID-19
- Call to action: Canadian manufacturers needed to help combat COVID-19
Summary of changes: Personal protective equipment ordered and received between October 19 and November 2
- Quantities ordered: Non applicable
- Quantities received: Increase of 1,451,800 from last period
- Quantities ordered: Increase of 61,547,500 from last period
- Quantities received: Increase of 45,463,950 from last period
- Quantities ordered: Increase of 251,241 from last period
- Quantities received: Increase of 7,426,185 from last period
Hand sanitizer (litres)
- Quantities ordered: Non applicable
- Quantities received: Non applicable
- Quantities ordered: Increase of 8,565,320 from last period
- Quantities received: Increase of 376,000 from last period
Non-medical mask: Face coverings
- Quantities ordered: Increase of 5,000,000 from last period
- Quantities received: Increase of 4,363,213 from last period
Non-medical mask: Cloth masks
- Quantities ordered: 600
- Quantities received: Non applicable
- Quantities ordered: Increase of 23,999,400 from last period
- Quantities received: Non applicable
- Quantities ordered: Non applicable
- Quantities received: 1,518
Recent questions have been raised about domestic contracting for ventilators.
- We remain steadfast in our efforts to ensure we have sufficient ventilators available for use should there be a surge in cases
- Canada currently has 15 contracts with 13 manufacturers to deliver 40,547 ventilators. This includes contracts with domestic suppliers that answered the call to action in April 2020
- Decision making around these contracts was based on technical assessments, science and our ongoing commitment to do everything possible to protect the health of Canadians
If pressed on domestic suppliers (Vexos, Canadian Emergency Ventilators (Starfish), CAE, FTI):
- all domestic manufacturers have received regulatory approval through Health Canada’s interim order
- Public Services and Procurement Canada (PSPC) continues to work closely with suppliers to monitor delivery schedules
If pressed on FTI:
- Ventilators for Canadians, a consortium of entrepreneurs, manufacturers and businesses, is one of 11 domestic suppliers that came forward with a proposal to supply ventilators to the government
- their proposal, based on an open source Medtronic design, was recommended by a review panel of technical experts, including respirologists, biomechanical engineers, and manufacturing professionals
- following this recommendation, on April 10, Public Services and Procurement Canada awarded a contract to FTI Professional Grade Inc., the corporate entity put forward by the consortium for the purposes of this contract, for the supply and delivery of ventilators
- Baylis Medical is a subcontractor to FTI Professional Grade Inc. and a partner to Ventilators for Canadians
- FTI Professional Grade Inc. has begun to deliver ventilators under its contract
If pressed on FTI pricing:
- the pricing for the FTI ventilator contract is broadly consistent with that of other domestic suppliers
- as with other contracts through the made-in-Canada call to action, companies such as FTI incurred costs to quickly re-tool their facilities, develop new manufacturing processes and seek Health Canada approval
- PSPC was also cognizant that pricing, at that time, could be impacted by the extreme demand for limited global supply chain for parts
- the model developed by FTI is based on the open source specifications of Medtronic’s PB560. Although Medtronic has indicated that the average selling price of this model is under $10,000 US, this is an unfair comparison, as it does not take into account expenses associated with ramping up manufacturing. These additional costs were built into the contract with FTI
If pressed on for the process that led to contract awards:
- a broad call to action was issued by Innovation, Science and Economic Development Canada to solicit interest from Canadian companies that were able to support Canada’s COVID-19 response
- as part of this call to action, a number of companies identified their interest in supplying Canada with ventilators. Separately, potential ventilator suppliers had also come forward to the National Research Council and to the NGEN supercluster
- all of these companies—11 in total—were subsequently invited to send proposals to Innovation, Science, and Economic Development Canada covering the design of the ventilator, its clinical functionality, and the manufacturing plan, including details on the supply chain
- proposals were reviewed by a panel of experts to assess the viability of technology and manufacturing approaches. The panel, which included medical clinicians, respirologists, biomechanical engineers, and manufacturing professionals, was asked to provide government with their best advice as to which designs would be most useful in the fight against COVID-19 and could be manufactured quickly to meet the needs of Canada’s public health system
- the review panel also included technical experts from within the Government of Canada (Health Canada and the Public Health Agency of Canada). Staff from PSPC participated in the panel, however recommendations were based on feedback from technical experts
- based on the advice of this panel of experts, Government of Canada officials identified 4 made-in-Canada ventilators, and contracts were subsequently awarded to CAE Inc., FTI Professional Grade Inc., Canadian Emergency Ventilators (Starfish), and Vexos for 37,500 ventilators
- each of the 4 companies subsequently worked with Health Canada officials through the regulatory process to ensure the ventilators met all the regulatory requirements to receive approval under the interim order
If pressed on corporate structure:
- in response to challenges, such as the government’s call to action, and in particular for complex deliverables such as ventilator manufacturing, it is not uncommon to see project-specific consortiums formed
- for example, Starfish also formed a new entity, Canadian Emergency Ventilators, for the purposes of its contract
- as well, given the scope and complexity of the requirement, partnerships were formed as follows:
- Vexos partnered with JMP Solutions, a member of the V4C consortium
- Starfish (Canadian Emergency Ventilators) partnered with Celestica
- Thornhill partnered with Linamar, to increase its production capacity
If pressed on pricing:
- ventilator pricing for domestic contracts takes into account a number of factors. This pricing reflects costs to quickly re-tool facilities, develop new manufacturing processes and seek Health Canada approval
Procurement of COVID-19 vaccines
Public Services and Procurement Canada (PSPC) is working with the Public Health Agency of Canada (PHAC), Health Canada and Industry, Science and Economic Development Canada (ISED), along with the COVID-19 Vaccine Task Force to prepare for the procurement of COVID-19 vaccines and related supplies.
- Given intense global competition, the government is taking an aggressive approach to secure access to the most promising vaccine candidates so that Canada is prepared to deliver vaccines to its citizens as quickly as possible
- On behalf of the Public Health Agency of Canada, based on recommendations from the COVID-19 Vaccine Task Force, we have already established agreements with AstraZeneca, Sanofi and GlaxoSmithKline, Novavax, Johnson & Johnson, Pfizer, Medicago and Moderna to secure up to 414 million doses of their vaccine candidates
- I would like to thank the members of the COVID-19 Vaccine Task Force for their expert advice, as we work toward securing future vaccines to protect Canadians
If pressed on Radio-Canada article stating the United States and United Kingdom will receive doses before Canada:
- the Government of Canada has secured agreements to secure access to 7 very promising vaccine candidates across the world
- we are working closely with vaccine suppliers to ensure that safe and effective vaccines are available in Canada as soon as possible. Health Canada will conduct a rigorous assessment of each vaccine candidate before it is authorized for use in Canada
- Canada is working with the vaccine suppliers to ensure that we are ready to mobilize to start delivering doses as soon as they have received Health Canada authorization
If pressed on the details of advance purchase agreements:
- to date, the Government of Canada has allocated approximately $1 billion for the 7 agreements that are in place
- this includes some upfront payments that the pharmaceutical companies require to support vaccine development, testing and at-risk manufacturing prior to regulatory approval
- while not fully recoverable, these payments facilitate Canada’s earliest possible place in production runs
- we are in constant contact with provincial and territorial counterparts to ensure that we are working cohesively and collaboratively, and that they are getting the support they need
If pressed on the status of clinical trials or regulatory approvals:
- we are all eager to deliver safe and effective vaccines to Canadians as soon as possible, and that is exactly what we are working on every single day
- as you are aware, clinical trials for these vaccine candidates are ongoing and any vaccines require Health Canada approval
- while Health Canada will be expediting the review of vaccines for COVID-19, this will be done without sacrificing standards for safety, efficacy and quality
- in particular, it is important that there is evidence from large clinical trials that demonstrate that the vaccine can provide protection from infection
If pressed on Moderna and Pfizer’s successful clinical trials:
- we were pleased to hear the news on both Moderna and Pfizer’s successful clinical trials to date
- Pfizer and Moderna are manufacturing doses to ensure that delivery can start shortly after obtaining Health Canada approval
- while this is a positive step forward we will continue to monitor the progress of all vaccine candidates in the context of Health Canada’s review to ensure that the solutions are safe for all Canadians
If pressed on Canada’s participation in the COVAX facility:
- Canada supports the objectives and principles of the COVAX Facility, which supports equitable global access to safe, effective, and affordable COVID-19 vaccines, once developed
- on September 18, Canada signed an agreement to participate in the COVAX Facility
- this will allow us to diversify our portfolio of vaccine candidates, provide an additional mechanism to donate or sell surplus doses to other nations, potentially secure earlier access to vaccine doses, and reduce the risk of export controls preventing delivery of doses to Canada
- through this agreement, Canada will also have access to up to 15 million vaccine doses, if required, while supporting equitable global access to safe, effective, and affordable COVID-19 vaccines
- this facility allows us to accomplish together what none of us could accomplish alone
If pressed on provincial and territorial collaboration:
- from the outset the Government of Canada has been working directly with provincial and territorial governments to ensure that we are considering their needs
- we are in regular contact with provincial and territorial counterparts to ensure that we are working cohesively and collaboratively, and that they are getting the support they need
If pressed on whether Canada will have adequate amounts of influenza vaccine doses:
- the Government of Canada buys influenza vaccines on behalf of provincial and territorial governments, who determine the number of seasonal influenza vaccine doses purchased each year
- Canada usually orders around 11 million doses each year. However, due to the COVID-19 pandemic, it is anticipated that more Canadians may wish to receive the seasonal flu vaccine this year
- in order to meet this increased demand, we have secured access to 14.5 million doses of flu vaccine already—35% more than last year—and we are working on securing additional quantities
- 5 manufacturers are under contract to provide these doses. Eleven million have already been delivered to the provinces and territories, with the remainder to be delivered between now and December
If pressed on material shortages:
- the Government of Canada is purchasing supplies from a number of sources and countries, both internationally and domestically
If pressed on national security exception contracting:
- the national security exception (NSE) is invoked to remove procurements from the obligations of Canada’s trade agreements for reasons of national security
- in the case of COVID-19, after the World Health Organization (WHO) declared the pandemic, PHAC made a request on behalf of the federal government that PSPC invoke the NSE with respect to the acquisition of goods and services required in order to respond to the COVID-19 pandemic
- some of the procurements being carried out in response to COVID-19 are being done under a national security exception, meaning that many solicitation documents are not published on Buy and Sell. This allows us to move rapidly as we purchase goods and services to protect the health and safety of Canadians as we face this pandemic
- in line with our commitment to transparency, we have published information on COVID-19 related contracts on the Public Services and Procurement Canada website
If pressed on the purchase of ultra-low temperature freezers:
- it is critical that vaccines are distributed and stored within their indicated temperature requirements, so we are making preparations for potential candidates
- the Government of Canada is actively pursuing the purchase of ultra-low temperature freezers to assist with the distribution and storage of vaccines in Canada
- contracts have been issued for the purchase of 26 -80 degree freezers and an additional 100 -20 degree freezers. Deliveries are beginning this week
If pressed on vaccine logistics:
- the Government of Canada is also in the process of securing an end-to-end logistics solution that will support the physical distribution of vaccines to provincial and territorial authorities or points of administration
- following the release of an invitation to qualify for this solution, the government is working to finalize a shortlist of qualified suppliers that will be posted on Buy and Sell this week
The Government of Canada has signed agreements in principle with the following companies to obtain access to their vaccine candidates:
- AstraZeneca, which will supply up to 20 million doses of its viral vector vaccine candidate ADZ1222
- Sanofi and GSK, which will supply up to 72 million of doses of their protein subunit vaccine candidate. The agreement with GSK secures their established pandemic adjuvant technology that will help the Sanofi vaccine produce a stronger immune response
- Johnson & Johnson, which will supply up to 38 million doses of its viral vector vaccine candidate Ad26.COV2.S
- Novavax, which will supply up to 76 million doses of its protein subunit vaccine candidate NVX-CoV2373
- Pfizer, which will supply up to 76 million doses of its mRNA vaccine candidate, BNT162.
- Moderna, which will supply up to 56 million doses of its mRNA vaccine candidate mRNA-1273
- Medicago, which will supply up to 76 million doses of its plant-derived coronavirus virus-like particle (CoVLP)
Currently, no vaccines have been approved to prevent COVID-19. Many vaccines are in clinical trials or under development. When additional studies have been completed, Health Canada will review the evidence of safety, efficacy, and manufacturing quality for each vaccine to determine whether individual vaccines will be approved for use in Canada, before they are used to vaccinate Canadians.
COVID-19 Vaccine Task Force
The COVID-19 Vaccine Task Force, supported by a secretariat housed at the National Research Council of Canada, provides advice to the Government of Canada on COVID-19 vaccines, which can include the following:
- prioritizing vaccine projects seeking support for activities in Canada
- attracting to Canada promising non-Canadian vaccine candidates, or partnering with developers of non-Canadian vaccine candidates
- optimizing the tools needed to develop vaccines
- supporting effective research and development, and supply chain coordination for COVID-19 vaccine projects
- facilitating solutions to manufacture the most promising COVID-19 vaccines in Canada
- identifying opportunities to enhance business connectivity globally to secure access to vaccines with key commercial sponsors
The COVID-19 Vaccine Task Force will be in place for a period of at least 12 months, subject to extension at the discretion of the Government of Canada.
Procurement of serologic tests
The Government of Canada launched the COVID-19 Immunity Task Force to measure the scope of coronavirus infection in Canada and provide information needed to manage the pandemic and safely get Canadians back to work.
Questions regarding the mandate and activities of the COVID-19 Immunity Task Force will be responded to by the minister of Innovation, Science and Industry.
- The Government of Canada is committed to determining the extent of COVID-19 immunity in the population and in subgroups such as healthcare workers, the elderly and Indigenous populations
- Public Services and Procurement Canada (PSPC) has begun procuring serologic tests that are designed to help identify how widely the virus has spread in Canada and provide reliable estimates of potential immunity and vulnerabilities in Canadian populations
- We have procured 200,000 tests as well as equipment and lab consumables to support the Immunity Task Force and we are working to have these items delivered as quickly as possible
- Procured items began to arrive June 19 2020. There is sufficient supply of all required items with no risk of shortage
If pressed on funding and funds spent:
- the Government of Canada approved the use of up to 300 million dollars to support activities related to serological surveillance and research in Canada under the direction of the COVID-19 Immunity Task Force. This includes funding for the procurement of serology tests and related items
If pressed on why there are only orders for the Abbott platform:
- a total of 200,000 Abbott Laboratories serological test kits have been procured to support serological studies conducted under the auspices of the COVID-19 Immunity Task Force
- as demand for serology tests increases, the Government of Canada will procure additional Health Canada approved tests and related equipment as requested by the task force
- Abbott Laboratories has a strong supply chain and currently there is sufficient supply of all required items with no risk of shortage
If pressed on delivery locations and quantities:
- 90,000 tests have been procured for the Canadian Blood Services and all of them have been delivered
- 20,000 tests have been procured for the McGill University Health Centre and 10,000 tests have been delivered so far
- 30,000 tests have been procured for Public Health Ontario and all of them have been delivered
- 30,000 tests have been procured for ProvLab in Calgary and 20,000 tests have been delivered so far
- 30,000 tests have been procured for ProvLab in Edmonton and 20,000 tests have been delivered so far
If pressed on outcomes and next steps:
- initial results by Public Health Ontario were released July 30, 2020
- Canadian Blood Services released their initial national level results on September 8, 2020
- multiple studies are currently ongoing and we are making sure the different entities conducting them have all the products they need to continue analyzing immunity response
Serology testing (collecting and testing blood samples for antibodies to SARS-CoV-2) of large numbers of people will provide the data needed to understand the scale of infection in the Canadian population.
This approach will help capture data about symptomatic individuals, as well as asymptomatic or mildly symptomatic people not previously identified as they did not seek healthcare. The importance of coordinated, rapid and representative national surveys cannot be understated. They provide critical information on the current spread of COVID-19, and help to prepare for possible future waves of infection, both in the general population or vulnerable groups.
Knowledge of the level of immunity in the general population, and in at risk populations such as the elderly and healthcare workers, will guide important public health decisions and immunization strategies once a vaccine becomes available. Serological testing is the key to developing this knowledge.
The COVID-19 Immunity Task Force aims to catalyze, support, and, where appropriate and feasible, harmonize the design and rapid implementation of population-based studies that will generate first estimates of COVID-19 immunity, overall and in priority populations across Canada. PSPC is working in close collaboration with the Immunity Task Force to identify any required procurement.
The task force will deliver a coordinated serologic survey agenda, and rapidly provide results to federal, provincial and territorial decision-makers as the basis for managing the COVID-19 epidemic in the near and medium term.
On May 12, 2020, Health Canada authorized the first of a number of anticipated commercial serological tests for COVID-19, which will allow the COVID-19 Immunity Task Force to focus on processes to initiate testing of samples in the serosurvey studies.
Rapid COVID-19 testing
COVID-19 testing technologies are advancing quickly as the pandemic continues. On behalf of the Public Health Agency of Canada (PHAC), Public Services and Procurement Canada (PSPC) is actively exploring additional agreements to secure access to the most promising candidates, in advance of regulatory approval.
- The health and safety of Canadians is our number one priority
- As with many of our agreements for equipment, tests and vaccines, we have pursued an advanced purchase agreement to secure Canada's access to these tests
- These rapid tests will aid in meeting the urgent demands from provinces and territories to test Canadians and reduce wait time for results, which is key to reducing the spread of the virus
- As new tests and instruments become available, approved and are considered effective, we will continue to bring them online so health authorities have access to all available resources needed to get us through this pandemic
If pressed on the delivery of Abbott Panbio and ID NOW tests:
- under the current agreement, delivery of up to 20.5 million Panbio antigen tests will be completed by March 31, 2021. I can confirm that we have received 4 shipments so far for a total of 4,266,400 tests
- in addition, Abbott Rapid Diagnostics ULC is also supplying up to 7.9 million ID NOW rapid tests to the Government of Canada. We have already received 352,320 tests and 710 analyzers
- COVID-19 testing technologies are advancing quickly as the pandemic continues. PSPC is actively exploring additional agreements to secure access to the most promising candidates, in advance of regulatory approval
If pressed on the delivery of Becton Dickinson Veritor tests and analyzers:
- under the current agreement, delivery of 7.6 million Veritor antigen tests will be completed by March 31, 2021
If pressed on distribution:
- the Government of Canada continues to work with federal, provincial and territorial governments to assess ongoing needs for medical equipment and supplies
- all province and territories will receive instruments and tests and allocation has already begun
- PHAC will be working with provinces and territories to ensure that the devices are allocated so as to have the most impact based on existing and future COVID-19 hotspots in Canada
If pressed on purchasing before Health Canada authorization:
- the contracts were structured so that the purchase of the tests was conditional on Health Canada authorization
If pressed on the purchase of analyzers for the Abbott ID NOW:
- under the agreement, we are purchasing a guaranteed minimum of 1,700 analyzers, with options to purchase up to 3,800
- analyzers are the devices that perform the test and deliver the rapid results
- the 1,700 analyzers could also be used for other types of testing
If pressed on Precision Biomonitoring:
- on November 2, Health Canada has approved the TripleLock test manufactured by Precision Biomonitoring. At this time, Public Services and Procurement Canada has no contractual agreement with Precision Biomonitoring. Any questions should be referred to Health Canada
Abbott Panbio antigen test
The Abbott Panbio COVID-19 antigen test is a rapid test that can detect SARS-CoV-2 directly from a nasopharyngeal or nasal swab in just over 15 minutes. It requires no instrumentation but must still be performed by a trained healthcare professional. This test is portable and lightweight and can easily be used in point of care in a variety of settings. The product does not require specialized storage temperatures.
While this contract is the first one put in place by Canada to procure antigen tests, more are expected. For this reason, we are not releasing the contract value at this time, in order to protect our negotiating position. In line with our commitment to transparency, the value of this agreement will be disclosed in due time.
On October 6, 2020, the Minister of Public Services and Procurement announced the purchase of up to 20.5 million Panbio COVID-19 antigen rapid tests. These particular tests, approved on October 5, 2020, are the first antigen tests to be approved by Health Canada for use in Canada.
Becton-Dickinson Veritor antigen test
The Becton-Dickinson Veritor SARS-CoV-2 antigen test is a rapid test that can detect SARSCoV-2 directly from a nasal swab in just over 15 minutes from patients that are within the first 5 days of the onset of symptoms. This testing requires a handheld analyzer and must be performed by a trained healthcare professional. This test is portable, lightweight and can easily be used in point of care in a variety of settings. It also does not require specialized storage temperatures.
On October 23, 2020, a contract was awarded to Becton Dickinson for the procurement of 7,599,990 Veritor antigen tests as well as 600 analyzers. The contract has yet to be announced.
Additional agreements have previously been signed with Biomerieux (up to 699,750 tests) and InterMedico (1.2 million GeneExpert tests).
Abbott ID NOW point-of-care test
The Abbott ID NOW system is a rapid point-of-care test for COVID-19. The technology can detect the virus directly from a nasal swab, returning results in as little as 13 minutes. The testing device, or analyzer, is small and lightweight and can easily be transported to remote locations and operated with minimal training.
Abbott Rapid Diagnostics ULC is also supplying up to 7.9 million ID NOW rapid tests.
Spartan point-of-care test
The Spartan test involves inserting a cartridge containing a swab from a patient’s mouth into a test analyzer (Cube) that analyzes DNA for the presence of the coronavirus. The technology can detect the virus in as little as 30 minutes. The testing device, or analyzer, is small and lightweight and can easily be transported to remote locations.
On March 25, PSPC issued a contract to Spartan Bioscience inc. for the purchase of 1,020,000 tests and 100 testing platforms (Cubes).
On April 9, the original contract was amended to purchase an additional 900,000 tests and 600 testing platforms (Cubes).
Execution of this contract was conditional of Spartan obtaining Health Canada approval.
On October 29, Health Canada issued an investigational testing authorization to Spartan to conduct a clinical trial on their point of care test and generic swab, to obtain data to support its effectiveness. Health Canada approval is pending results of this clinical trial.
Under the current agreement of the Panbio antigen test, delivery of up to 20.5 million antigen tests will be completed by March 31, 2021.
The preliminary delivery schedule calls for 8,500,000 tests to be delivered by end of December 2020.
An option exists in the contract for the purchase of an additional 12.0 million tests to be delivered from January until March 31, 2021
Under the agreement of the ID NOW tests, delivery of 2.5 million tests will be completed by December 31, 2020.
Public Services and Procurement Canada (PSPC) is delivering on government commitments to modernize and simplify procurement.
- The government is committed to modernizing procurement practices so they are simpler, less administratively burdensome, and include practices that support our social and economic policy goals—including through better data collection and the elimination of paper-based processes
- We are also committed to economic growth and diversity among small and medium enterprises, and under-represented groups, and we are working to remove barriers that have historically prevented them from participating in federal procurement
- We are also taking action by:
- implementing a simplified contract model
- establishing a procurement policy framework to achieve positive socio-economic outcomes
- increasing opportunities for suppliers
- improving existing procurement tools
- formalizing a risk-based approach for procurement decisions
- developing new tools to determine contract pricing and support best value
If pressed on diversifying procurement (Black-owned businesses):
- our government is committed to diversifying the base of suppliers obtaining contracts from federal organizations
- in support of this, my department, through the Office of Small and Medium Enterprises, continues to reach out to under-represented groups across Canada, including Black-owned businesses
- we continue to work and collaborate with the United Nations Decade of Persons of African Descent (UNDPAD) Push Coalition, the Black Business and Professional Association (BBPA), and the Canadian Black Chamber of Commerce to raise awareness of the services offered by the Office of Small and Medium Enterprises, to encourage participation in federal procurement, and to identify and remove barriers
If pressed on Indigenous procurement:
- we are committed to increasing the participation of Indigenous businesses in federal procurement
- to do so, we are working with Indigenous Services Canada and the Treasury Board of Canada Secretariat to establish a target of at least 5% of federal contracts awarded to businesses managed and led by Indigenous Peoples
- Indigenous business organizations are represented on both the newly established COVID-19 Supplier Council and the national Supplier Advisory Council that has been in place since 2013
- the Office of Small and Medium Enterprises works with Indigenous businesses directly, as well as through partner Indigenous organizations, to provide information, support and practical guidance on how to participate in federal procurement
If pressed on the Procurement Ombudsman’s annual report citing the “unnecessarily complex nature of the federal procurement process”:
- the government has committed to modernize and simplify procurement
- one of our primary goals is to make buying processes less burdensome for both suppliers and government buyers. That’s why we are taking a number of steps to improve the supplier experience, including:
- contract modernization initiatives to simplify and streamline our contracting documents to make procurement less burdensome for suppliers
- improvements to the existing Buy and Sell platform for suppliers, as well as for buyers
- efforts to encourage greater competition, as well as moving forward on initiative that support our economic policy goals, including innovation, green and social procurement, and increasing the diversity of bidders
- implementation of the electronic procurement solution, which will align our processes with those of our suppliers and eliminate paper-based processes
A substantial part of public investment is managed through public sector acquisition of goods and services, representing 13% of Canada’s gross domestic product (GDP) according to Organisation for Economic Co-operation and Development (OECD) data from 2015. This makes it a fundamental lever to achieving social and economic objectives.
The government has committed to modernize and simplify procurement, and to establish an electronic procurement solution. A key step towards this goal was the March 2020 soft launch of Canada Buys, our new electronic procurement system, as announced in budget 2018, at a cost of $196.8 million over 5 years. Procurement processes will also be easier, faster and more accessible for suppliers and buyers through:
- simpler, less administratively burdensome, user-friendly procurement practices:
- improvements to the existing Buy and Sell system for buyers as well as for suppliers were introduced to enhance their user experience and make it easier for them to find relevant procurement information
- more accessible and intuitive complement of industrial security services have been made available
- contract modernization initiatives and a modernized contract model are being piloted. This is in response to concerns from the supplier community regarding the complexity of the Government of Canada’s contracts and related processes. This complexity can represent barriers to supplier participation in public procurement, including reducing competition and supplier diversity, which impacts Canada’s ability to achieve best value for money
- deployment of modern comptrollership:
- formalizing a risk-based approach for procurement decisions
- ensuring fair pricing in defence contracts (sustainment initiative, pricing guide)
- encouraging greater competition and including practices that support our economic policy goals, including innovation, as well as green and social procurement:
- developing a framework for leveraging socio-economic outcomes in federal procurement
- increasing the participation of under-represented groups such as women-owned businesses, Indigenous businesses, Black businesses, and visible minority businesses
- adopting a more inclusive approach to procurement, raising awareness of how to give consideration to the needs of persons with disabilities when procuring on behalf of the federal government
The government will also support other procurement commitments including better vendor management tools, clear data metrics, and increased opportunities for Indigenous businesses.
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