Trade Agreement: Canadian Free Trade Agreement (CFTA)
Tendering Procedures: Generally only one firm has been invited to bid
Non-Competitive Procurement Strategy: Exclusive Rights
Comprehensive Land Claim Agreement: No
Vendor Name and Address:
Toromont Industries Ltd.
268 Orenda Road
Brampton Ontario
Canada
L6T1E9
Nature of Requirements:
1. Advance Contract Award Notice (ACAN)
An ACAN is a public notice indicating to the supplier community that a department or agency intends to award a contract for goods, services or construction to a pre-identified supplier, thereby allowing other suppliers to signal their interest in bidding, by submitting a statement of capabilities. If no supplier submits a statement of capabilities that meets the requirements set out in the ACAN, on or before the closing date stated in the ACAN, the contracting officer may then proceed with the award to the pre-identified supplier.
2. Definition of the requirement
The Department of Fisheries and Oceans, Canadian Coast Guard (CCG) has a requirement for the Procurement of Original Equipment Manufacturer (OEM) certified Parts and Service on a when and as needed basis to maintain Caterpillar equipment and in extend its wholly owned subsidiaries, fitted to CCG Vessels into the following Atlantic and Central Regions locations: Province of Manitoba; Province of Ontario; Province of Quebec; Province of Nova Scotia; Province of New Brunswick; Province of Prince Edward Island; and the Province of Newfoundland and Labrador.
3. Criteria for assessment of the Statement of Capabilities
Any interested supplier must demonstrate by way of a statement of capabilities that its parts and service meets the following requirements:
The Canadian Coast Guard requires ongoing parts and service for Caterpillar equipment (engines and generators) and in extend its wholly owned subsidiaries, fitted to CCG vessels in the Atlantic and Central Regions locations: Province of Manitoba; Province of Ontario; Province of Quebec; Province of Nova Scotia; Province of New Brunswick; Province of Prince Edward Island; and the Province of Newfoundland and Labrador. To be considered, Offerors must meet all of the following capabilities:
a. The Offeror must have direct access to Caterpillar certified technicians;
b. The Offeror must be able to provide Caterpillar OEM parts;
c. The Offeror must have access to Caterpillar technical bulletins and intellectual property of Caterpillar equipment fitted to CCG vessels; and,
d. The Offeror must have direct access to Caterpillar warranty procedures.
4. Applicability of the trade agreement(s) to the procurement
This procurement is subject to the following trade agreement:
Canadian Free Trade Agreement (CFTA)
5. Set-aside under the Procurement Strategy for Indigenous Business (PSIB).
Not applicable.
6. Comprehensive Land Claims Agreement(s)
Not applicable.
7. Justification for the Pre-Identified Supplier
Canada believes that Toromont Canada Ltd. is the only entity that is capable of meeting the Statement of Capabilities for the Standing Offer. Toromont Canada Ltd. is the OEM provider of parts and service of Caterpillar Marine Systems in the Atlantic and Central Regions, and has licence to Caterpillar IP rights. Engines fitted to CCG vessels must meet the emission regulation requirements which requires the ongoing use of OEM certified parts and service.
8. Government Contracts Regulations Exception(s)
The following exception to the Government Contracts Regulations is invoked for this procurement under subsection 6(d) - "only one person is capable of performing the work:
a. Vendor has ownership of, and rights to use, the intellectual property for the goods and services required; and,
b. Regulatory considerations in the form of emission regulations, which require OEM parts and service on regulated equipment.
9. Exclusions and/or Limited Tendering Reasons:
Canadian Free Trade Agreement (CFTA) - Article 513, Limited Tendering sections (b)(iii), (v), and (vi).
- (iii) due to an absence of competition for technical reasons;
- (v) to ensure compatibility with existing goods, or to maintain specialized goods that must be maintained by the manufacturer of those goods or its representative; and
- (vi) work is to be performed on property by a contractor according to provisions of a warranty or guarantee held in respect of the property or the original work;
The procurement under the Federal Supply Classification (FSC) 20, Ship and Marine Equipment by the Canadian Coast Guard is not subject to international trade agreements as per the following:
a. World Trade Organization - Agreement on Government Procurement (WTO-AGP) Canada Goods Annex 4, 2nd paragraph "with respect to procurement by Canadian Coast Guard, ...this Agreement covers only the goods described in the Federal Supply Classifications (FSC) listed below" and Canada Services Annex 5, Note 3 e "all services, with reference to those goods purchased by Canadian Coast Guard".
b. Canada-European Union Comprehensive Economic and Trade Agreement (CETA) Canada Annex 19-4 - Goods, 2nd paragraph and Canada Annex 19-5 - Services, (Notes to Canada's Annex 19-5) Note 1 a.
c. Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) Annex 15-A, Schedule of Canada, Section D, Goods, 2nd paragraph and Section E, Services, Note 1 (d).
d. As per the Supply Manual section 1.25.16, Bilateral Free Trade Agreements, the same exclusions listed above apply.
Note: Trade agreements make no reference to ACANs, but if the trade agreement covered procurement is being directed to a supplier, there is a requirement to indicate the exclusion(s) or the limited tendering reason(s) invoked.
10. Ownership of Intellectual Property:
Not applicable
11. Period of the proposed Standing Offer
The proposed Standing Offer is for a initial period of one year, from date of Standing Offer Award and includes options to extend the Standing Offer of three one-year periods.
12. Cost estimate of the proposed Standing Offer
The estimated value of the Standing Offer, including option(s), is $16,000,000.00 Tax included.
13. Name and address of the pre-identified supplier:
Toromont Industries Ltd.
Address:
268 Orenda Road
Brampton, ON
L6T1E9
Canada
14. Suppliers' right to submit a statement of capabilities
Suppliers who consider themselves fully qualified and available to provide the goods and services described in the ACAN may submit a statement of capabilities in writing to the contact person identified in this notice on or before the closing date of this notice. The statement of capabilities must clearly demonstrate how the supplier meets the advertised requirements.
15. Closing date for a submission of a statement of capabilities
The closing date and time for accepting statements of capabilities is March 13, 2024 at 2:00 p.m. (eastern daylight saving time)
16. Inquiries and submission of statements of capabilities
Name: Daniel Durocher
Title: Supply Specialist
Public Works and Government Services Canada
Defence and Marine Procurement Branch
Refit Logistics and Small Vessel Construction Directorate
Address:
11 rue Laurier
Place du Portage III, 6A2
Gatineau, QC
K1A 0S5
Telephone: 873-455-3877
E-mail address: daniel.durocher@tpsgc-pwgsc.gc.ca
Delivery Date: Above-mentioned
You are hereby notified that the government intends to negotiate with one firm only as identified above. Should you have any questions concerning this requirement, contact the contracting officer identified above.
An Advance Contract Award Notice (ACAN) allows departments and agencies to post a notice, for no less than fifteen (15) calendar days, indicating to the supplier community that it intends to award a good, service or construction contract to a pre-identified contractor. If no other supplier submits, on or before the closing date, a Statement of Capabilities that meets the requirements set out in the ACAN, the contracting authority may then proceed with the award. However, should a Statement of Capabilities be found to meet the requirements set out in the ACAN, then the contracting authority will proceed to a full tendering process.
Suppliers who consider themselves fully qualified and available to provide the services/goods described herein, may submit a statement of capabilities in writing to the contact person identified in this Notice on or before the closing date of this Notice. The statement of capabilities must clearly demonstrate how the supplier meets the advertised requirements.
The PWGSC file number, the contracting officer's name and the closing date of the ACAN must appear on the outside of the envelope in block letters or, in the case of a facsimile transmission, on the covering page.
The Crown retains the right to negotiate with suppliers on any procurement.
Documents may be submitted in either official language of Canada.
