Company profiles and fact sheets: Standing Committee on Government Operations and Estimates—March 24, 2021
Document navigation for "Standing Committee on Government Operations and Estimates: March 24, 2021"
On this page
Medicom N95: Information on deliveries
Public Services and Procurement Canada (PSPC) entered into a contract with Medicom on April 26, 2020 to supply Canada with 20 million N95 masks annually, to be manufactured in Canada. Medicom has commenced production of masks. However, delivery was contingent on 2 approvals: first, receiving Health Canada interim order (IO) approval, and secondly, receiving respirator quality assessment testing approval from the Public Health Agency of Canada (PHAC). On October 30, 2020, Medicom confirmed to PSPC that Health Canada had approved their IO application for their N95 respirators. On November 13, 2020, Medicom received quality assessment testing approval from PHAC.
- The health and safety of Canadians is our number one priority
- The Government of Canada is working closely with our partners to ensure front line workers have access to the supplies and personal protective equipment (PPE) they need to stay safe and healthy in response to COVID-19
- In order to provide front line workers with much-needed PPE, PSPC began work to establish domestic production of PPE with partners like Medicom. The company has now started production of N95 respirators in Canada
- Following the letter of intent sent from Innovation Science and Economic Development (ISED), Medicom was awarded a contract in the amount of $93,564,000.00
- ISED engaged 2 companies to set up mask manufacturing capacity in Canada: Medicom and 3M. Both companies provided high-level proposals. Medicom’s plan allows for the establishment of a mask manufacturing capacity in Canada under a shorter timeline with production starting in August 2020
- There were 2 steps required before a delivery schedule of Medicom N95 respirators could be confirmed: an IO application and quality assessment testing
- Medicom received approval on November 13 under an IO application and quality assessment testing, allowing for the shipment of N95 respirators
- Medicom will have delivered 10.8 million N95 masks and 36.1 million surgical masks by end of March 2021
PSPC awarded a 10-year contract to Medicom for domestic production and distribution of surgical masks and N95 respirators for PHAC.
Production ramp up for N95 respirators began in August 2020. Medicom applied for Health Canada’s IO certification. Health Canada approval was obtained on October 30.
Medicom has also received quality assessment testing approval from PHAC on their N95 respirator.
Quality assessment testing is a standard requirement to confirm the masks meet the mandatory 95% filtration standard for N95 respirators. This quality assessment testing process was performed by the National Research Council (NRC), on behalf of PHAC.
NRC performed the testing using the filtration testing machine TSI8130A, which is the same machine used by the National Institute for Occupational Safety and Health (NIOSH) in the United States. Quality assessment testing typically takes 7 to 10 business days depending on the number of sample masks being tested. There is an extension for NIOSH approval until the end of June 2021.
While Medicom was finalizing quality assessment testing, they provided 700,000 FFP2 masks (N95 equivalent) from Europe. Medicom has provided PSPC with a delivery schedule for the N95 respirators. Deliveries began in November 2020.
Deloitte Inc. provides audit and assurance, consulting, financial advisory, risk advisory, tax and related services to public and private clients spanning multiple industries. It is also one of the largest consulting/accounting firms in the world.
Deloitte is a pre-qualified supplier under several Public Services and Procurement Canada (PSPC) supply arrangement (SA) vehicles, including the task based informatics professional services and the solutions based informatics professional services SAs.
As part of the Government of Canada’s response to the COVID-19 pandemic, Deloitte Inc. was awarded 2 contracts for professional services:
- a contract designed for departments to obtain expertise and consulting services related to the acquisition and supply of materials
- a contract for a national vaccine management IT platform
The first is completed and the second is active.
Contract for professional services in support of COVID-19 response
The contract expired in early January 2021. The total estimated value of the contract was $14,471,112.50. The total expenditures under the contract are $13,835,319.88 (inclusive of taxes).
Given the urgent response requirements, PSPC issued a sole-sourced, task-based contract to Deloitte in April 2020 to provide professional services related to the acquisition and supply of materials in support of the Government of Canada’s response to COVID-19.
The professional services provided on an as-and-when requested basis through the issuance of task authorizations included, but were not limited to the following areas:
- acquire pandemic response supplies from the global market
- establish an integrated control tower to track and manage logistics, allocation fulfillment and order tracking
- develop and maintain demand and supply forecasts for pandemic supplies, and associated inventory allocation models
- create screening and qualification process(es) for alternative (not previously qualified) suppliers
- additional services and tasking may be required as the COVID-19 situation and Government of Canada requirements evolve
Four government departments issued task authorizations against the contract as follows:
- task for PSPC: Strategic sourcing—Control tower and materials tracking
- tasks for the Public Health Agency of Canada (PHAC):
- control tower and logistics
- conduct a risk assessment comprised of a review of physical and information security with respect to logistics
- tasks for Health Canada (HC):
- demand forecasting
- supply and demand modelling for drug shortages
- task for Innovation, Science and Economic Development Canada (ISED): N95 respirators market analysis
Contract for national vaccine management information technology platform
The contract awarded to Deloitte in January 2021 is for $16,138,945.90, taxes included.
The Government of Canada is doing everything possible to protect Canadians from COVID-19. This includes enhancing PHAC’s existing information management systems to help manage vaccine distribution, administration and reporting.
Due to the emergency nature of this requirement, PSPC solicited competitive bids directly from a source list of 7 qualified suppliers.
The requirement, a new national vaccine management information technology (IT) platform (NVMIP), builds further functionality into PHAC’s current operational and well-developed surveillance and coverage IT systems.
The procurement of the NVMIP emphasizes the Government of Canada’s ability to support rapid change. The platform will supplement existing operational PHAC systems to ensure rapid and successful management of the COVID-19 vaccine administration program across the nation.
Core NVMIP system functionality was delivered to PHAC on February 2, 2021, and the NVMIP solution will continue to add more functionality as the vaccine rollout moves through various phases. It is operating and supplementing PHAC’s existing and comprehensive data and IT systems.
PHAC is currently leveraging and enhancing its information management systems to support COVID-19 vaccine roll-out requirements. Specifically, these systems will support the immediate and urgent need for ordering, tracking and delivery capabilities as well as provide strengthened monitoring and reporting functionality.
Procurement of medical gowns from Proline Advantage Inc.
Public Services and Procurement Canada (PSPC) has been working aggressively with domestic and international suppliers to procure medical gowns. A high-volume contract was awarded to Proline Advantage Inc. for the supply of medical gowns based on the company’s capacity to source and deliver gowns in a very aggressive timeframe at a reasonable price. As of January 2021, all medical gowns have been delivered.
- In March and April 2020, contracts for medical gowns were awarded to suppliers based on their capacity to source and deliver gowns in a very aggressive timeframe at a reasonable price
- PSPC continues to ramp up procurement efforts domestically and abroad to diversify its supplier base. As we enter the next phase of the response for COVID-19 related procurements, the priority is to revert to competitive procurement processes and post solicitation documents on the buy and sell web page
- All products we are buying continue to be subject to stringent controls at various points in the process, including technical evaluation and testing of the proposed equipment, evaluation of the financial assessment of the suppliers, an integrity check and ensuring that the supplier has a valid medical device establishment license
If pressed on the selection of Proline Advantage Inc.:
- Proline Advantage Inc. has been in the medical/supplement supply field since 2008. It has many years of experience with an international supply chain, and has access to several personal protective equipment (PPE) manufacturers in China
- the company responded to the call to suppliers posted on buyandsell.gc.ca in March 2020
- Proline’s proposed gowns were assessed and approved by the Public Health Agency of Canada (PHAC). Proline had a medical device establishment license, available quantities, integrity compliance and could meet the delivery timeline
- PSPC received numerous proposals from suppliers, however, very few were able to meet the required delivery timeframes
- the initial requirement from PHAC was to purchase 130 million gowns. Proline Advantage Inc. was one of the suppliers who sourced and delivered an important amount of level 1 and level 3 gowns of the overall requirement. The contract value is $371,318,000.00
If pressed on the volume of gowns procured from Proline Advantage Inc.:
- PSPC awarded 36 contracts to 27 suppliers for the supply of medical gowns, of which 26 contracts are with domestic manufacturers
- PSPC wanted to diversify its supplier base to efficiently manage risk of late or non-delivery. The quantity of gowns awarded to suppliers was determined by their capacity to source and deliver gowns in a very aggressive timeframe at a reasonable price
If pressed on the supplier’s pricing:
- Proline Advantage Inc. offered pricing that was comparable to other contractual arrangements awarded at the time
If pressed on the supplier’s performance:
- by late August 2020, all gowns had been delivered to the PHAC warehouses and Proline Advantage Inc. had fulfilled all its obligations under its contract
If pressed on advance payment made to Proline Advantage Inc.:
- from March until the end of June 2020, the pressure on the medical gown market was very high. In order to facilitate procurement, suppliers had to make security deposits in order to secure a spot on the manufacturers' production line
- PSPC and the PHAC decided to include clauses in the contracts allowing advance payment under certain circumstances
- a financial risk assessment was performed and Proline Advantage Inc. was considered a financially viable company
If pressed on material shortages:
- the global demand for medical gowns is high and there is a worldwide shortage in disposable gown material
- we have identified Canadian textile manufacturers for the domestic supply of medical gowns using alternative materials, including Canadian manufactured house wrap and air bag materials
If pressed on domestic suppliers:
- PSPC has awarded contracts to 20 domestic suppliers for the production of gowns and, through Innovative, Science and Economic Development Canada, have connected these domestic suppliers with 2 domestic alternative material manufacturers
- delivery of domestically-made gowns started in early May 2020
If pressed on the general request for proposal process:
- industry and suppliers responded positively to the call to action. More than 26,000 submissions were received, including nearly 17,000 domestic submissions
- we contacted nearly all domestic companies who submitted forms, and continue to reach out to those submitting forms
- as PSPC enters the next phase of the response for COVID-19 related procurements, the priority is to revert to competitive procurement processes and post solicitation documents on the buy and sell web page, particularly where the timeline to secure a particular good or service allows for more flexibility or the search for information or sources of supply needs to be broadened
- a competitive request for proposal (RFP) for the purchase of an estimated quantity of 50 million gowns is currently posted on buyandsell.gc.ca. This RFP closed on November 20, 2020 is limited to Canadian manufacturers of gowns
The surge in global demand for PPE and medical supplies due to the pandemic resulted in a highly competitive marketplace and volatile supply chains. An urgent and accelerated timeline for contracting was required in many cases, and when solicitation documents were not being published on the Government of Canada’s buy and sell website, PSPC engaged the domestic and international supply communities through other means.
Notably, a call to action was posted on the buy and sell web page from March 12 to July 10, 2020, to seek information on the ability of suppliers to provide emergency products and services. More than 26,000 unique responses were received, including nearly 17,000 from Canadian suppliers. PSPC has signed nearly 150 contracts with companies around the world as a result of the call to action; the majority of these were awarded to Canadian suppliers.
There is a very high demand for gowns globally. Material usually used for the production of gowns is being diverted to the production of masks. Manufacturers are proposing alternative material for the production of gowns in Canada. On the domestic front, there is also great competition amongst the suppliers for the same resources, resulting in an impact on the price.
Product compliance is reviewed against the technical specifications released by the World Health Organization (WHO). All proposed gowns are reviewed by the PHAC technical team. PHAC has implemented a robust quality assurance program. For domestic suppliers, samples are being assessed before production begins and then again once they are delivered to PHAC and prior to distribution to provinces and territories.
As PSPC enters the next phase of the response for COVID-19 related procurements, the priority is to revert to competitive procurement processes and post solicitation documents on the buy and sell web page, particularly where the timeline to secure a particular good or service allows for more flexibility or the search for information or sources of supply needs to be broadened. For example, recent competitive procurements for goods such as non-medical masks and face shields have received hundreds of bids. New content has been published on the buy and sell website to help suppliers find COVID-19 related competitive procurement opportunities. This includes support for suppliers who may be new to federal procurement.
Palantir Technologies Canada Inc.
Palantir Technologies designs, develops, and deploys software products that optimizes human interaction with massive-scale data, enabling critical institutions to understand, analyze, and act on their data.
Artificial intelligence source list
Palantir Technologies is qualified as a band 3 supplier (work up to $9M before taxes) on the artificial intelligence (AI) source list. The company’s qualification was published on Public Services and Procurement Canada’s (PSPC) buyandsell website on January 15, 2019.
The AI source list is a prequalified list of suppliers who meet all of the mandatory criteria, as was stipulated within an invitation to qualify, to provide Canada with responsible and effective AI services, solutions and products. Solicitation opportunities are competed amongst the prequalified suppliers on the list.
To date, Palantir Technologies has not been awarded a contract for any of the solicitations that have been issued under the AI source list.
Contracts awarded to Palantir Technologies
In March 2019, PSPC put into place a non-competitive 1-year contractual arrangement on behalf of the Department of National Defence (DND) for the provision of the Palantir information management software at a cost of $997,434 (CAD). A contract award notice was published on PSPC’s buyandsell website. The contract was awarded on a non-competitive basis in accordance with section 6(d) of the Government Contracts Regulations. The section allows contracts to be entered into without soliciting bids when only one supplier is capable of performing the work. This is the case for Palantir Technologies, which owns the intellectual property and is the only supplier of the software required by DND. This contract was in support of a pilot project.
Baylis Medical Company
Baylis Medical Company is a Canadian corporation that develops and distributes high-technology products used to treat patients in cardiology, radiology, and minimally invasive spine procedures.
For messaging concerning the FTI contract for the procurement of ventilators, please see the question period note on ventilator procurement.
Contract with the Build in Canada Innovation Program
On November 29, 2017, Baylis was awarded a research and development contract for its AnchorKnot tissue approximation kit. The AnchorKnot tissue approximation kit is a set of surgical spinal devices that enable orthopedic surgeons and neurosurgeons to perform herniated disc repair for the lumbar spine. The contract value is $374,288.29 CAD.
Baylis was awarded this contract under the Build in Canada Innovation Program (BCIP), which was a competitive first purchase program offered by PSPC with a mandate to bolster Canadian innovation and promote economic growth through the purchase and testing of late-stage innovations in federal organizations. The BCIP was consolidated into Innovation, Science and Economic Development Canada’s (ISED) Innovative Solutions Canada in spring 2018.
Baylis’ AnchorKnot tissue approximation kit pre-qualified for the BCIP under call for proposals 007, which was published on January 11, 2017 and remained open until May 28, 2018, with continuous intake of proposals. Of the over 1100 proposals submitted against BCIP call 007, 260 proposals were prequalified, and to date, 195 contracts have been awarded.
All proposals were evaluated against the same criteria, which addressed innovation and readiness, commercialization and merits of the proposed test plan. The evaluation team was composed of the National Research Council—Industrial Research Assistance Program (NRC-IRAP), PSPC and/or subject matter experts from other government departments.
Innovation, Science and Economic Development Canada is acting as the testing department for the innovation in partnership with Toronto’s Sunnybrook Hospital.
The contract was set to expire on December 30, 2020, however, due to the COVID-19 pandemic affecting access to hospitals, final training with the innovation has been slightly delayed. As a result, the contract end date has been extended to November 30, 2021.
Stanfield’s Limited fact sheet
Based in Truro, Nova Scotia, Stanfield’s Limited is an underwear manufacturer that has been in business since 1856. Before the pandemic hit, it had a workforce of approximately 200 employees.
In the early days of the pandemic, accessing personal protective equipment, including gowns, proved to be challenging as demand far exceeded the available supply. As a result, Public Services and Procurement Canada worked with Innovation, Science and Economic Development Canada to identify reliable Canadian manufacturers.
On April 5, 2020, Stanfield’s Limited was awarded a sole-source contract, valued at $27,911,000.00, for the production of an initial 2.6 million gowns, which have been delivered.
The government put out a new tender in October 2020 and 71 companies bid on the tender as part of the competitive bidding process.
Stanfield’s Limited also submitted a proposal in response to this request for proposal limited to Canadian manufacturers and the company was shortlisted to submit a sample to assess the design, fit, overall feel, noise and electrostatic qualities of the proposed gowns.
After assessment, the gown samples provided by Stanfield’s Limited did not meet certain required criteria and no further contract was awarded to the company.
Personal protective equipment logistics fact sheet
On April 2, 2020, Public Services and Procurement Canada (PSPC) entered into a task-based emergency services contract with CargoJet for charter airline services. The contract provides for the transport of personal protective equipment (PPE) and related supplies to Canada from Asia.
As of March 3, 2021, CargoJet has flown a total of 95 chartered flights carrying PPE to Canada.
CargoJet offers reliable, regular flights and good value in comparison to prices available from international carriers. The CargoJet contract has a term to October 31, 2021, and could be used for approximately 12 more flights within its current limitation of expenditure.
On April 2, 2020, PSPC entered into a task-based emergency services contract with Air Canada for charter airline services. The contract provides for the transport of PPE and related supplies to Canada from Asia.
As of March 3, 2021, Air Canada has flown 23 chartered flights carrying PPE to Canada.
Air Canada continues to offer a consistent and reliable source of supply and good value in comparison to prices available from international carriers. The Air Canada contract has a term to October 31, 2021, and could be used for approximately 10 more flights within its current limitation of expenditures.
Purolator was previously used by the Public Health Agency of Canada (PHAC) to transport PPE from CargoJet or Air Canada airport facilities to various warehouses used by PHAC or its partners, as well as to deliver PPE to provinces and territories.
Freight forwarding services
At the end of March 2020, PSPC entered into a contract with Bolloré Logistics Canada Inc. (Bolloré) using established emergency contracting authorities to provide urgent logistics and transportation services related to the procurement of PPE and medical supplies from Asia.
Bolloré is on a standing offer with the Government of Canada for freight and cargo services and was selected due to its previous experience providing logistics services to Canada and its significant footprint in China. The decision was based on minimizing risks and on the urgency of the requirement.
The Bolloré contract has a term to October 31, 2021.
The Bolloré contract has almost reached its limitation of expenditure and no new tasks for new services are planned to be issued to Bolloré. There is sufficient funding to complete the issued but uncompleted tasks.
Under this contract, Bolloré is currently storing 26 million gowns. The move of these gowns to our longer-term service provider, Metro Logistics Inc., has been initiated and is expected to be complete by the end of May, 2021. 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.
Overseas Express Consolidators
In June 2020, PSPC issued a competitive contract to Overseas Express Consolidators (OEC) Montreal Inc. as our second third-party logistics provider. This contract provides for the same suite of services currently being provided by Bolloré Logistics Canada Inc.
The OEC contract has a term to March 31, 2022.
The OEC contract currently serves as the primary source for international transportation services for PPE. The contract has a sufficient limitation of expenditure to continue these services until March 31, 2022 at the current rate of usage.
OEC currently provides access to a dedicated 100,000-square-foot warehouse in [Redacted] until July 2021. This warehouse is currently full. The OEC contract does not provide additional, committed warehouse space for a given period but can be used to acquire transitional space, as-and-when required, and if available. The contract allows the flexibility for additional space to be provided if needed.
Warehousing and distribution services
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.
This agreement was primarily put in place for Amazon’s easy-to-use online interface which allowed individual health establishments to order supplies directly from PHAC. As provinces and territories requested for PHAC to deliver the supplies directly rather than awaiting for orders from them, the requirement for getting PPE to the provinces and territories evolved beyond what was covered in the Amazon agreement.
Groupe Robert Inc.
On June 13, 2020. PSPC awarded a 6-month contract to Groupe Robert Inc. for inventorying, transportation and warehousing in the [Redacted] and the [Redacted]. Groupe Robert was identified as the best firm for this work based on their response to the letter of intent (LOI)/request for information (RFI) for a long-term multimodal logistics solution for PHAC.
In December 2020, the contract was extended to March 31, 2021, to allow additional time needed to transfer the PPE from the warehouses to provinces and territories or other PHAC storage facilities.
This contract provided 215,000 square feet of warehousing space in the [Redacted] and 150,000 square feet in the [Redacted] transportation capabilities and a warehouse management system capability. Transition of PPE product out of these warehouses to provinces or other PHAC facilities is underway and expected to be completed by the end of March 2021, at which point the contract will come to its end.
On July 31, PSPC entered into a separate 2-year contract with Groupe Robert to provide PHAC with logistic services to manage and equip a 350,000 square feet warehouse that PHAC has separately leased.
The warehouse is currently at its 20,000 pallet capacity. Once packing is completed, in March 2021, to add 15,000 pallet positions of space, shipments to that location will increase.
Urban Valley Transport Ltd.
On July 28, 2020, PSPC awarded a 6-month contract to Urban Valley Transport Ltd. for short-term warehousing in various locations across Canada. In December 2020, PSPC exercised the option to extend the contract to January 28, 2022, to allow additional time needed to transfer the PPE from the temporary storage warehouses to provinces or other PHAC storage facilities.
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.
Metro Logistics Inc.
On September 11, PSPC awarded a 2-year competitive contract to Metro Logistics Inc. of Montreal, as a long-term, multimodal logistics solution for PHAC, to inventory, warehouse and distribute PPE to provinces and territories. The contract also has an additional 1-year option period.
Under this contract, Metro Logistics Inc. is responsible for handling receipt of PPE supplies via all modes of transportation, stocktaking, warehousing in the [Redacted] and [Redacted] as well as preparing and delivering PPE to all provinces and territories.
Under this contract, PHAC is being provided with:
- 2 dedicated warehouses in the [Redacted] with 463,000 square feet
- 2 dedicated warehouses in the [Redacted] with 174,000 square feet
- 2 dedicated warehouses in [Redacted] with 322,000 square feet
Under this contract, hand sanitizer, which requires special handling procedures given it is a hazardous product, is being stored at subcontractors’ facilities in each region. In total, warehousing capacity of approximately 358,000 square feet is available at such subcontractors’ facilities. To date, the various warehouses are approximately 85% full. 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.
PSPC initially entered into short-term leases for PHAC for 2 warehouses in [Redacted] totalling approximately 187,000 square feet. These warehouses are expected to be vacated upon expiry of the leases in September 2021 and March 2022, respectively. These warehouses are currently relatively full, but some further material continues being delivered to them.
An additional facility has been leased to supplement these leases with a start date of January 1, 2021, for a fixed period of 8 years. This warehouse offering 127,000 square feet of space is under renovation and has not yet 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. The warehouse is currently at its 20,000 pallet capacity. Once racking is completed, in March 2021, to add 15,000 pallet positions of space, shipments to that location will increase.
A warehouse in [Redacted] is being used by the [Redacted] to store surplus equipment and other response related materials that [Redacted] does not need to access frequently. This site provides a long-term solution for 73,000 square feet of warehousing space, which is available immediately. Current usage is at 25%.
Document navigation for "Standing Committee on Government Operations and Estimates: March 24, 2021"
- Date modified: