Directive on Government Contracts, Including Real Property Leases, in the Nunavut Settlement Area

1. Effective date

  • 1.1This directive takes effect on .

2. Authorities

  • 2.1This directive is issued pursuant to section 7 of the Financial Administration Act.

3. Application

  • 3.1This directive applies to departments and agencies listed in Schedules I, I.1 and II of the Financial Administration Act, with the exception of the Canada Revenue Agency, and to Commissions established pursuant to the Inquiries Act that are designated as departments for the purposes of the Financial Administration Act.
  • 3.2Appendix A contains the definitions that apply to this directive.
  • 3.3This directive applies to all government contracts, including real property leases, as defined in Article 24.1.1 of the Agreement Between the Inuit of the Nunavut Settlement Area and Her Majesty the Queen in right of Canada (Agreement) where the deliverable(s), or a portion of the deliverable(s), include final delivery or performance in or into the Nunavut Settlement Area.
  • 3.4In the event of a conflict between a requirement in this directive and a requirement in any other Treasury Board or departmental policy instrument, the requirement in this directive will apply. In the event of a conflict between a requirement in this directive and a legal obligation, including an obligation under the Agreement, the legal obligation will apply.
  • 3.5This directive does not apply to any government contracts, including real property leases, which were entered into before the effective date of this directive, or to solicitations or invitations that occurred before the effective date of this directive.

4. Context

  • 4.1

    The Government of Canada:

    • 4.1.1Conducts all contracting in a manner that is fair, open and transparent;
    • 4.1.2Demonstrates sound stewardship of public funds; and
    • 4.1.3Supports results for Canadians through the delivery of programs and services.
  • 4.2

    Article 24 of the Agreement includes procurement obligations for the Government of Canada to contribute to and respond to:

    • 4.2.1The developing nature of the Nunavut economy and labour force; and
    • 4.2.2The increased ability over time of Inuit firms to compete for government contracts, including real property leases.
  • 4.3

    In the Nunavut Settlement Area, the Government of Canada’s contracting activities provide an important opportunity for Inuit firms to compete for government contracts, including real property leases, and for Inuit to participate in employment, training and business opportunities created by those activities. As such, this Directive on Government Contracts, Including Real Property Leases, in the Nunavut Settlement Area (directive), which was developed in close consultation with the Designated Inuit Organization (DIO):

    • 4.3.1Clarifies the obligations in the Agreement for government officials;
    • 4.3.2Establishes a new mandatory policy measure to limit government contracts, including real property leases, in the Nunavut Settlement Area for bidding among Inuit firms;
    • 4.3.3.Strengthens the requirement to include bid criteria related to socio-economic opportunities for Inuit (Inuit benefits) and Nunavut (Nunavut benefits) as part of the bid evaluation criteria in solicitation documents; and
    • 4.3.4

      Establishes a new formal review committee to be co-chaired by the Treasury Board of Canada Secretariat and the DIO. The Government of Canada and the DIO recognize the importance of working together in the committee to:

      • 4.3.4.1Monitor and review the outcomes of the directive; and
      • 4.3.4.2Identify evidence-based opportunities to improve the application of the directive, including, but not limited to, the impacts of the evaluation methodology of Inuit benefits criteria.
  • 4.4The directive sets out the Government of Canada’s responsibilities with respect to fulfilling the procurement obligations in Articles 8, 9 and 33 of the Agreement.
  • 4.5The directive sets out the responsibilities of deputy heads, contracting authorities, business owners, and designated real property officials regarding government contracts, including real property leases, in the Nunavut Settlement Area, with respect to the Government of Canada’s obligations in Article 24 of the Agreement.
  • 4.6Specific additional responsibilities of the deputy heads of Indigenous Services Canada, Public Services and Procurement Canada and the Treasury Board of Canada Secretariat are also set out in this directive.
  • 4.7

    The directive includes requirements for a government-wide approach that complements existing governance frameworks to:

    • 4.7.1Provide support to government officials through access to training, guidance and tools, such as standard clauses and templates; and
    • 4.7.2Enhance monitoring and reporting activities.
  • 4.8This directive and its mandatory procedures are supported by guidance for contracting authorities, business owners and designated real property officials. The guidance material includes examples, best practices, and ways to integrate the rules from other policies, trade agreements and legislation.

5. Objective and expected results

  • 5.1In accordance with Article 24 of the Agreement, the objective of this directive is to provide reasonable support and assistance to Inuit firms in order to enable them to compete for government contracts, including real property leases.

Expected results

  • 5.2

    This directive and its implementing measures reflect the expected results of Article 24, which are, to the extent possible, as follows:

    • 5.2.1Increased participation by Inuit firms in business opportunities in the Nunavut Settlement Area economy;
    • 5.2.2Improved capacity of Inuit firms to compete for government contracts and real property leases in the Nunavut Settlement Area; and
    • 5.2.3Employment of Inuit at a representative level in the Nunavut Settlement Area workforce.

6. Requirements

Business owner (technical authorities)

  • 6.1

    Business owners are responsible for the following:

    • 6.1.1Ensuring that the requirements set out in the directive are addressed in a manner that supports, assists, and responds to the increased ability over time of Inuit firms to compete when planning a government contract, including a real property lease, in the Nunavut Settlement Area;
    • 6.1.2Consulting the Inuit firm list that is maintained by the DIO when planning a government contract, including a real property lease, in the Nunavut Settlement Area in order to determine Inuit firm capacity;
    • 6.1.3Conducting additional market research, in conjunction with the contracting authority or the designated real property official, if necessary, to obtain additional information on Inuit capacity that is commensurate with the complexity, duration and dollar value of the government contract, including a real property lease, in the Nunavut Settlement Area;
    • 6.1.4In conjunction with the contracting authority, determining whether the procurement’s operational requirements permit inviting bids by commodity groupings in order to permit smaller and more specialized firms to bid (unbundling), and/or for a specified portion of a larger contract package;
    • 6.1.5Consulting with the contracting authority or the designated real property official responsible for the government contract or real property lease in the Nunavut Settlement Area for advice on the implementation of the requirements in this directive; and
    • 6.1.6Documenting government contracts, including real property leases, according to the Mandatory Procedure on Documenting Government Contracts, Including Real Property Leases, in the Nunavut Settlement Area (Appendix C).

Contracting authorities

  • 6.2Contracting authorities should note that this section sets the requirements regarding government contracts other than real property leases in the Nunavut Settlement Area, and that the requirements regarding real property leases start at subsection 6.4 of this directive.
  • 6.3

    Contracting authorities are responsible for the following:

    • 6.3.1Consulting the list of Inuit firms that the DIO maintains to determine the capacity of Inuit firms before soliciting or inviting bids for a government contract in the Nunavut Settlement Area;
    • 6.3.2Conducting additional market research if necessary, in conjunction with the business owner, to obtain additional information on Inuit capacity that is commensurate with the complexity, duration and dollar value of the government contract in the Nunavut Settlement Area;
    • 6.3.3

      Providing all reasonable opportunities to Inuit firms to submit competitive bids for government contracts in the Nunavut Settlement Area, by taking, where practicable and consistent with sound procurement management, the following measures:

      • 6.3.3.1Setting the date, location, and terms and conditions for bidding so that Inuit firms may readily bid;
      • 6.3.3.2Inviting bids by commodity groupings to permit smaller and more specialized firms to bid (unbundling);
      • 6.3.3.3Permitting bids for goods and services for a specified portion of a larger contract package to permit smaller and more specialized firms to bid; and
      • 6.3.3.4Designing construction contracts in a way so as to increase the opportunity for smaller and more specialized firms to bid;
      • 6.3.3.5Avoid artificially inflated employment skills requirements not essential to the fulfilment of the contract.
    • 6.3.4Taking all reasonable measures to inform Inuit firms of such bids, and providing Inuit firms with a fair and reasonable opportunity to submit bids;
    • 6.3.5Ensuring that Inuit firms are included on the list of those firms solicited to bid when soliciting bids for government contracts to be performed in the Nunavut Settlement Area;
    • 6.3.6Including an Inuit firm in the solicitation to bid for contracts of a similar nature where an Inuit firm has previously been awarded a government contract and has successfully carried out the contract; and
    • 6.3.7Giving Inuit firms fair consideration when there is an absence of competitive bidding for a government contract;

    Limiting bids to Inuit firms

    • 6.3.8

      Limiting all bids for government contracts in the Nunavut Settlement Area, including government contracts in support of the Government of Canada’s activities in the Nunavut Settlement Area, to qualified Inuit firms registered on the Inuit firm list maintained by the DIO unless:

      • 6.3.8.1The contract value is estimated to be from $5,000 to $25,000, and there is no Inuit firm registered on the Inuit firm list maintained by the DIO for that commodity or service;
      • 6.3.8.2The contract value is estimated to be over $25,000, and there are fewer than two Inuit firms registered on the Inuit firm list maintained by the DIO for that commodity or service;
      • 6.3.8.3

        Despite subsections 6.3.8.1 and 6.3.8.2, if a government contract must be sole sourced because:

        • 6.3.8.3.1There is a situation where the need is one of pressing emergency including, but not limited to, an actual or imminent life threatening situation or a disaster endangering the quality of life or safety of Canadians, in which delay would be injurious to the public interest; or
        • 6.3.8.3.2There is a situation where the nature of the work is such that it would not be in the public interest to invite bids, including, but not limited to, national security circumstances, such as procurements that are indispensable for national security or for the maintenance of international peace and security;

        Then the Government of Canada will make best efforts, consistent with its operational needs, to sole source to a qualified Inuit firm that is registered on the Inuit firm list maintained by the DIO.

    • 6.3.9Noting that a government contract may be limited for competition among Inuit firms by removing it entirely or partly from the scope of the relevant trade agreements pursuant to the set-aside provisions for small and minority businesses, or for Indigenous businesses;
    • 6.3.10Evaluating bids according to the procedure set out in the bid solicitation or the invitation to bid;
    • 6.3.11Awarding a government contract to an Inuit firm that is registered on the Inuit firm list maintained by the DIO when bids have been limited to Inuit firms unless:
      • 6.3.11.1No responsive or compliant bids are submitted by Inuit firms;
      • 6.3.11.2The contracting authority does not proceed to contract award for reasonable and demonstrable reasons that are unrelated to this directive, including, but not limited to, changes to the requirements;
      • 6.3.11.3

        Doing so would result in one of the following situations:

        • 6.3.11.3.1The Government of Canada exceeding the estimated contract value, which factors in the cost of doing business in the Nunavut Settlement Area, and the inclusion of Inuit benefits criteria and Nunavut benefits criteria, as applicable, consistent with this directive; or
        • 6.3.11.3.2On reasonable and demonstrable grounds, paying a contract price for the commodity or service that would be excessive and unjustifiable after taking fully into account the benefits associated with the implementation of Article 24;

    Bid criteria

    • 6.3.12

      Including the following four separate and independent bid criteria when required under this directive:

      Inuit benefits criteria
      • 6.3.12.1The employment of Inuit labour;
      • 6.3.12.2The undertaking of commitments, under the contract, with respect to on-the-job training or skills development for Inuit;
      • 6.3.12.3The bidder is an Inuit firm or will be engaging Inuit firm(s) as subcontractor(s) in carrying out the government contract in the Nunavut Settlement Area; and 
      Nunavut benefits criteria
      • 6.3.12.4The bidder or subcontractor has head offices, administrative offices, or other facilities in the Nunavut Settlement Area;
    • 6.3.13

      Including all four bid criteria listed under subsection 6.3.12 for competitive tenders in the Nunavut Settlement Area, according to the following thresholds:

      • 6.3.13.1Goods, services and construction services that have an estimated value of over $100,000; or
      • 6.3.13.2Real property leases that have a total consideration of over $1,000,000;
    • 6.3.14

      Making best efforts to include all four bid criteria listed under subsection 6.3.12, when practicable and in keeping with sound procurement management principles, for all competitive tenders for:

      • 6.3.14.1Government contracts for goods, services and construction services that have an estimated value of $100,000 and under; or
      • 6.3.14.2Real property services that have an estimated total consideration of $1,000,000 and under;
    • 6.3.15Relying on the Inuit firm list maintained by the DIO to confirm whether a bidder and/or their subcontractor(s) meets the definition of Inuit firm when the Inuit benefits criterion listed in subsection 6.3.12.3 is included in a solicitation or invitation to bid;
    • 6.3.16For competitive tenders limited to Inuit firms, weighting the bid criteria at 30% of the total available points, and allocating these points among the four criteria listed under subsection 6.3.12, according to Appendix B;
    • 6.3.17For competitive tenders not limited to Inuit firms, weighting the bid criteria at 35% of the total available points, and allocating these points among the four criteria listed under subsection 6.3.12, according to Appendix B;
    • 6.3.18Maintaining discretion in particular cases to weight bid criteria at a higher percentage of the total available points than required in subsections 6.3.16 and 6.3.17;
    • 6.3.19Determining how best to structure the weighting of each separate and independent bid criteria based on the ranges set out in Appendix B, and taking into consideration Inuit capacity in relation to the work to be performed under the government contract in the Nunavut Settlement Area;
    • 6.3.20

      Ensuring that a solicitation or invitation to bid for a government contract in the Nunavut Settlement Area that includes any criteria under subsection 6.3.12 of this directive requires bidders to include, at a minimum, the following information in their bids:

      • 6.3.20.1An estimate of the number of days of employment for Inuit due to the government contract;
      • 6.3.20.2

        A description of:

        • 6.3.20.2.1The nature and extent of subcontracting to Inuit firms and the goods acquired from Inuit firms;
        • 6.3.20.2.2The nature and extent of Inuit employment;
        • 6.3.20.2.3The on-the-job training and skills development for Inuit who are employees of the supplier;
        • 6.3.20.2.4The Inuit firm list identification number associated with the supplier and any subcontractor(s); and
        • 6.3.20.2.5Any other benefits that the supplier may propose;
      • 6.3.20.3The costs to fulfill the above requirements identified as separate line items in a bid;
    • 6.3.21Ensuring that a government contract includes requirements that would require a contractor to engage, when requested by the contracting authority, an independent professional to confirm that the contractor has met the requirements regarding any work to be performed by an Inuit firm or by Inuit;
    • 6.3.22Evaluating bids according to Appendix B when a solicitation or invitation to bid for a government contract in the Nunavut Settlement Area includes any criteria under subsection 6.3.12;
    • 6.3.23Evaluating each criterion under subsection 6.3.12 separately and independently from each other according to Appendix B;
    • 6.3.24Evaluating bids according to the procedure set out in the bid solicitation or invitation to bid;

    Contract award

    • 6.3.25

      Noting that an Inuit firm is qualified to be awarded a government contract in the Nunavut Settlement Area unless:

      • 6.3.25.1The Inuit firm is not in good standing, has a demonstrably poor record of performance on similar contracts, or the Inuit firm’s bid does not comply with the policies of the Government of Canada, including requirements regarding security, integrity and vendor performance;
      • 6.3.25.2The Inuit firm demonstrably lacks sufficient capacity to meet the technical requirements of the government contract, or the Inuit firm cannot apply or acquire the capacity needed to perform the work required under the contract or to deliver the contract work on a timely basis; and
      • 6.3.25.3The Inuit firm’s bid does not fulfill all mandatory bid criteria, including, but not limited to, meeting or not readily meeting, the intellectual property, licensing, land ownership or similar requirements associated with the work to be performed;
    • 6.3.26

      Ensuring that the award of a government contract to a supplier will proceed unless:

      • 6.3.26.1The supplier’s bid does not fulfill all mandatory bid criteria;
      • 6.3.26.2The supplier’s bid does not comply with the policies of the Government of Canada, including, but not limited to, requirements regarding security, integrity and vendor performance;
      • 6.3.26.3

        The supplier’s bid would result in one of the following situations:

        • 6.3.26.3.1The Government of Canada exceeding the estimated contract value, which factors in the cost of doing business in Nunavut, and the inclusion of Inuit benefits criteria and Nunavut benefits criteria, as applicable, consistent with this directive; or
        • 6.3.26.3.2On reasonable and demonstrable grounds, paying a contract price for the commodity or service that would be excessive and unjustifiable after taking fully into account the benefits associated with the implementation of Article 24;
      • 6.3.26.4The contracting authority does not proceed to contract award for reasonable and demonstrable reasons unrelated to this directive, including, but not limited to, changes in requirements;
    • 6.3.27Ensuring that the award of a government contract is contingent on the supplier having the legal capacity to enter into a contract;
    • 6.3.28Noting that in the event that the contracting authority, in consultation with the business owner, is unable to proceed with awarding a contract, the contracting authority may reissue the bid solicitation or invitation to bid with revisions, including revisions related to the provisions in this directive, while respecting the obligations of Article 24 of the Agreement, or cancel the bid solicitation or invitation to bid;

    Reporting and documentation

    • 6.3.29Ensuring that contracting authorities’ reports of government contracts in the Nunavut Settlement Area are completed and submitted in accordance with Appendix D;
    • 6.3.30Documenting government contracts as set out in Appendix C.

Government contracts, including real property leases in parks and conservation areas and for archaeological work

  • 6.4

    Business owners, contracting authorities, and designated real property officials are responsible for the following:

    • 6.4.1

      When the Government of Canada intends to contract for the establishment, operation or maintenance of park facilities in the Nunavut Settlement Area:

      • 6.4.1.1Giving preferential treatment to qualified Inuit firms where the Government of Canada proposes to tender such contracts; and
      • 6.4.1.2Ensuring that all contractors give preferential treatment to Inuit;
    • 6.4.2Providing the DIO with the right of first refusal to operate all business opportunities and ventures that are contracted out with respect to parks in the Nunavut Settlement Area;
    • 6.4.3Noting that the application of Articles 8.4.8 and 8.4.9 of the Agreement shall not restrict the provisions of an Inuit Impact and Benefits Agreement that deals with economic benefits for Inuit in relation to a proposed park in the Nunavut Settlement Area;
    • 6.4.4Applying subsection 6.4.5 of this directive in a like manner to conservation areas;
    • 6.4.5

      When contracting for carrying out archaeological work in the Nunavut Settlement Area:

      • 6.4.5.1Giving preferential treatment to qualified Inuit firms when soliciting or inviting bids; and
      • 6.4.5.2Ensuring that all contractors give preferential treatment to qualified Inuit.

Designated real property officials

  • 6.5Designated real property officials should note that the definition of “government contracts” in the Agreement includes real property leases, even though real property leases have been separated from procurement contracts in other Treasury Board policy instruments since 1993.
  • 6.6

    Designated real property officials are responsible for:

    • 6.6.1Ensuring that business owners requiring the real property leases in the Nunavut Settlement Area are aware of the Government of Canada’s obligations under Article 24 of the Agreement and Article 24.4.2 in particular;
    • 6.6.2Including requirements in a real property lease that would require a lessor to engage, when requested by the designated real property official, an independent professional to confirm that the company has met its requirements regarding any work to be performed by an Inuit firm or by Inuit;
    • 6.6.3When inviting bids for leases in the Nunavut Settlement Area, to take “all reasonable measures to inform Inuit firms of such bids, and provide Inuit firms with a fair and reasonable opportunity to submit bids,” according to Article 24.4.3;
    • 6.6.4When soliciting bids for real property leases in the Nunavut Settlement Area, ensuring “that qualified Inuit firms are included in the list of those firms solicited to bid”;
    • 6.6.5Considering the list of Inuit firms that the DIO maintains before issuing an invitation for bids on a lease in the Nunavut Settlement Area;
    • 6.6.6Where an Inuit firm has previously been awarded a lease, and has successfully fulfilled the lease, including that Inuit firm in the solicitation to bid for leases of a similar nature;
    • 6.6.7Giving Inuit firms fair consideration in the absence of competitive bidding for a real property lease in the Nunavut Settlement Area;

    Limiting bids to Inuit firms

    • 6.6.8

      Limiting all solicitations for real property leases in the Nunavut Settlement Area, including real property leases in support of the Government of Canada’s activities in the Nunavut Settlement Area, to qualified Inuit firms registered on the Inuit firm list that is maintained by the DIO unless:

      • 6.6.8.1The estimated total consideration of the lease is $100,000 or under, and there is no Inuit firm registered on the Inuit firm list maintained by the DIO for the nature of the lease;
      • 6.6.8.2The contract is estimated at over $100,000, and there are fewer than two Inuit firms registered on the Inuit firm list maintained by the DIO for the nature of the lease;
      • 6.6.8.3

        Despite subsections 6.6.8.1 and 6.6.8.2, if a real property lease must be sole sourced because:

        • 6.6.8.3.1There is a situation where the need is one of pressing emergency, including, but not limited to, an actual or imminent life-threatening situation, or a disaster endangering the quality of life or safety of Canadians, in which delay would be injurious to the public interest; or
        • 6.6.8.3.2There is a situation where the nature of the work is such that it would not be in the public interest to invite bids, including, but not limited to, national security circumstances, such as procurements indispensable for national security, or the maintenance of international peace and security;

        Then the Government of Canada will make best efforts, consistent with its operational needs, to sole source to a qualified Inuit firm registered on the Inuit firm list maintained by the DIO;

    • 6.6.9Noting that a real property lease may be limited for competition among Inuit firms by removing it entirely or partly from the scope of the relevant trade agreements pursuant to the set-aside provisions for small and minority businesses, or for Indigenous businesses;
    • 6.6.10Evaluating bids in accordance with the procedure set out in the solicitation or invitation to bid for a real property lease;
    • 6.6.11Awarding a real property lease to an Inuit firm that is registered on the Inuit firm list maintained by the DIO, when bids have been limited to Inuit firms, unless one or more of the exceptions listed in subsection 6.3.11 apply;

    Bid criteria

    • 6.6.12

      Including the four separate and independent criteria listed under subsection 6.3.12 for all competitive tenders for real property leases unless:

      • 6.6.12.1The estimated total consideration of the lease is $1,000,000 or under;
      • 6.6.12.2The real property to be leased is not located in the Nunavut Settlement Area;
    • 6.6.13Making best efforts to include all four criteria listed under subsection 6.3.12, when practicable and in keeping with sound procurement management principles, for competitive tenders for real property leases that have an estimated total consideration of $1,000,000 and under;
    • 6.6.14Relying on the Inuit firm list maintained by the DIO to confirm whether a lessor and/or their subcontractor(s) meet the definition of an Inuit firm when the Inuit benefits criterion listed in subsection 6.3.12.3 is included in a solicitation or invitation to bid for a real property lease;
    • 6.6.15Structuring and weighting bid criteria in accordance with subsections 6.3.16, 6.3.17, 6.3.18 and 6.3.19, and Appendix B, and taking into consideration Inuit capacity in relation to the nature of the real property lease;
    • 6.6.16

      Ensuring that a solicitation or invitation to bid for a real property lease in the Nunavut Settlement Area, that includes any Inuit benefits criteria based on subsection 6.3.12 of this directive, requires bidders to include, at a minimum, the following information in their bids:

      • 6.6.16.1An estimate of the number of days of employment for Inuit due to the real property lease;
      • 6.6.16.2A description of the items listed in subsection 6.3.20.2; and
      • 6.6.16.3The costs to fulfill the requirements identified in subsections 6.3.20.1 and 6.3.20.2 as separate line items in a bid;
    • 6.6.17Evaluating bids in accordance with Appendix B when a solicitation or invitation to bid for a real property lease in the Nunavut Settlement Area includes any criteria based on subsection 6.3.12;
    • 6.6.18Evaluating each criterion under subsection 6.3.12 separately and independently from each other, in accordance with Appendix B;
    • 6.6.19Evaluating bids in accordance with the procedure set out in the bid solicitation or invitation to bid;

    Contract award

    • 6.6.20Noting that an Inuit firm is qualified to be awarded a real property lease in the Nunavut Settlement Area, unless one or more of the exceptions under subsection 6.3.25 apply;
    • 6.6.21Ensuring that the award of a real property lease to a lessor will proceed unless one or more of the exceptions in subsections 6.3.26 and 6.3.27 apply;
    • 6.6.22Ensuring that the award of a real property lease is contingent on the supplier having the legal capacity to enter into a real property lease;
    • 6.6.23Noting that in the event that the designated real property official, in consultation with the business owner, is unable to proceed with awarding a real property lease, the designated real property official may reissue the bid solicitation or invitation to bid with revisions, including revisions related to the provisions in this directive, while respecting the obligations of Article 24 of the Agreement, or cancel the bid solicitation or invitation to bid;

    Reporting and documentation

    • 6.6.24Ensuring that designated real property officials’ reports of real property leases in the Nunavut Settlement Area are completed and submitted according to Appendix D;
    • 6.6.25Documenting real property leases as set out in Appendix C.

7. Review committee

Membership

  • 7.1The committee will be co-chaired by a representative of the Treasury Board of Canada Secretariat and a representative of the DIO.

Meetings

  • 7.2The committee will meet annually and at other times agreed to by the co-chairs.
  • 7.3The co-chairs must agree to the meeting agenda and its objective, including the amount of time set aside to conduct each item on the agenda and any amendments.

Scope

  • 7.4The committee may provide advice to the Government of Canada and the DIO on ways to improve the application of the directive in departments, including, but not limited to, the content of the training provided to public servants on the directive, the use of targets or thresholds, the evaluation methodology for Inuit benefits in bid solicitations and any other issues related to the directive, including whether amendments to the directive are needed to better achieve the objectives of Article 24.
  • 7.5The Government of Canada will collect and make available to the committee the data needed to assess the effectiveness of the directive over time, including the appropriateness of the mandatory total weightings for bid criteria. In particular, the Government of Canada will make available to the committee the data referenced in Appendix D.
  • 7.6The committee will review the data made available by the Government of Canada on government contracts, including real property leases, in the Nunavut Settlement Area.
  • 7.7The committee may review any formal assessment of the policy prepared by the Government of Canada.
  • 7.8The committee may review any additional documents exchanged by the Government of Canada and the DIO.
  • 7.9It is recognized that some information, such as, but not limited to, commercially sensitive or personal information, may not be shared outside the Government of Canada. The Government of Canada is not required to disclose any information that it is required or entitled to withhold under any statute relating to access to information and privacy. Where the Government of Canada has discretion to disclose any information, it will take into account the objective of the Agreement in exercising that discretion.

Reports

  • 7.10The committee’s advice must be agreed to by the Government of Canada and the DIO, and will be made public jointly.

Secretarial support

  • 7.11The Government of Canada will provide secretarial support for the committee, including the cost of public consultations, rental facilities, advertising, translation, minutes and reporting.

Funding

  • 7.12The Government of Canada will be responsible for the costs of the participation of its staff.
  • 7.13The DIO will be responsible for the costs of the participation of its staff.
  • 7.14The Government of Canada will be responsible for the travel costs of all committee members in accordance with the meal, private vehicle, and incidental expense allowances specified in appendices B, C and D of the Treasury Board Travel Directive and in the other provisions of the Travel Directive that refer to “travellers” rather than those referring to “employees.”
  • 7.15Any expenditure by the Government of Canada or the DIO related to the activities of the committee is subject to sufficient funds being appropriated by Parliament or being made available by the Government of Canada or the DIO respectively.

8. Deputy heads

  • 8.1Deputy heads are responsible for the following:
    • 8.1.1Ensuring that contracting authorities, business owners, and designated real property officials in their departments, who have responsibilities for contracting in the Nunavut Settlement Area, are aware of the requirements in the Agreement for government contracts, including real property leases, and have the necessary training to comply with the requirements in this directive;
    • 8.1.2

      Providing the Deputy Minister of Indigenous Services Canada with a list of government contracts and real property leases in the Nunavut Settlement Area as follows:

      • 8.1.2.1Before the start of each fiscal year, a list of planned government contracts, including real property leases, that may contain bid criteria to create benefits for Inuit firms or for Inuit; and
      • 8.1.2.2Within six months after the end of each fiscal year, a list of government contracts, including real property leases, that were entered into, noting which government contracts or leases were limited to Inuit firms and/or contained bid criteria consistent with Appendix D;
    • 8.1.3

      Ensuring close consultation with the DIO when developing and maintaining policies and programs that are designed to achieve the following objectives:

      • 8.1.3.1Increase access by Inuit to on-the-job training, apprenticeship, skill development, upgrading and other job-related programs;
      • 8.1.3.2Provide greater opportunities for Inuit to receive training and experience in order to successfully create, operate and manage Northern businesses;
      • 8.1.3.3Encourage Inuit firms to bid for government contracts, including real property leases, in the Nunavut Settlement Area, in cooperation with the DIO.

9. Deputy Minister of Indigenous Services Canada

  • 9.1

    The Deputy Minister of Indigenous Services Canada is responsible for the following:

    • 9.1.1Assisting Inuit firms to become familiar with the Government of Canada’s bidding and contracting procedures and provide advice and support on individual transactions;
    • 9.1.2Ensuring that deputy heads receive advice on fulfilling the obligations of the directive that pertain to Inuit benefits criteria and the identification of Inuit firm capacity in the Nunavut Settlement Area;
    • 9.1.3Coordinating government-wide procurement and leasing plans in the Nunavut Settlement Area in order to support monitoring and reporting activities to demonstrate the socio-economic benefits achieved in the Nunavut Settlement Area; and
    • 9.1.4Leading consultations with the DIO about the development and maintenance of this directive and the development of any amendments.

10. Deputy Minister of Public Services and Procurement Canada

  • 10.1

    The Deputy Minister of Public Services and Procurement Canada is responsible for the following:

    • 10.1.1Ensuring that deputy heads have access to advice on fulfilling the obligations under the Agreement regarding government contracts, including real property leases;
    • 10.1.2Ensuring that government-wide training, guidance and tools, such as checklists, standard clauses and templates supporting the requirements in Article 24 of the Agreement, are developed for contracting authorities, business owners, and designated real property officials;
    • 10.1.3Ensuring that training and guidance are available to officials in other departments;
    • 10.1.4Ensuring that other departments have access to experts in contracting and real property leasing practices; and
    • 10.1.5Ensuring that solicitations and invitations for standing offers, supply arrangements, and government-wide contracts for commodities to be delivered in the Nunavut Settlement Area permit smaller and more specialized Inuit firms to bid, where practicable and consistent with sound procurement management.

11. Comptroller General of Canada

  • 11.1

    The Comptroller General of Canada is responsible for the following:

    • 11.1.1Bringing this directive to the attention of the Canada Revenue Agency and Crown corporations;
    • 11.1.2Ensuring that the results of this directive are independently assessed every five years, in cooperation with the review committee, as set out in section 7 of this directive;
    • 11.1.3Coordinating the participation of the review committee to monitor and periodically evaluate the implementation of Article 24 of the Agreement;
    • 11.1.4Developing amendments to this directive that respond to the developing nature of the economy and labour force in the Nunavut Settlement Area or that better achieve the purpose of this directive, and seeking approval as required;
    • 11.1.5Ensuring that the obligations regarding government contracts, including real property leases, in the Agreement and the requirements in this directive are addressed in the development of the accreditation program for contracting officials and are consistent with the training developed by Public Services and Procurement Canada;
    • 11.1.6Establishing, with the DIO, a review committee that will cooperate with implementing the measures to monitor and periodically evaluate the implementation of Article 24; and
    • 11.1.7Appointing representatives of the Government of Canada to the review committee in addition to the representatives that may be appointed by the DIO.

12. Enquiries

Appendix A: Definitions

The following definitions apply to this directive:

  • A.1Agreement means the land claims agreement between the Inuit of the Nunavut Settlement Area and Her Majesty the Queen in right of Canada, that was signed on May 25, 1993, and tabled in the House of Commons by the Minister of Indian Affairs and Northern Development on May 26, 1993, and includes any amendments to that agreement made pursuant to the agreement.
  • A.2The definitions of government contractFootnote 1 and Inuit firm found in Article 24.1.1 of the Agreement.
  • A.3The definition of a Designated Inuit Organization (DIO) found in Article 1.1.1. of the AgreementFootnote 2
  • A.4The definition of a park found in Article 1.1.1 of the Agreement.
  • A.5The definition of a conservation area found in section 9.1.1 of the Agreement.
  • A.6The business owner is the individual responsible for the business or program area for which the procurement, project or programme has been established. The business owner is responsible for defining the required capabilities, intended business outcomes and benefits of a project or programme at its outset and for the achievement of the business outcomes and benefits following implementation of the project.
  • A.7For the purposes of this directive, the estimated contract value is the amount, in Canadian currency, including the goods and services tax or the harmonized sales tax, funded on the requisition in accordance with section 32 of the Financial Administration Act, for the deliverables under the government contract or real property lease, and which factors in the cost of doing business in Nunavut and the inclusion of Inuit benefits criteria and Nunavut benefits criteria.

Appendix B: Mandatory Procedure on Developing and Evaluating Bid Criteria (Inuit Benefits Criteria and Nunavut Benefits Criteria)

B. Procedures

  • B.1These procedures provide details on the requirement to include the criteria under subsection 6.3.12 of the Directive on Government Contracts, Including Real Property Leases, in the Nunavut Settlement Area.
  • B.2

    Mandatory procedures are as follows:

    Requirements definition phase

    • B.2.1

      Inuit benefits criteria and Nunavut benefits criteria are mandatory for the following competitive tenders in the Nunavut Settlement Area:

      • B.2.1.1Goods, services and construction services contracts that have an estimated value of over $100,000; and
      • B.2.1.2Real property leases that have an estimated value of over $1,000,000.
    • B.2.2

      Business owners and contracting authorities must undertake best efforts when practicable and in keeping with sound procurement management principles to include Inuit benefits criteria and Nunavut benefits criteria for the following competitive tenders in the Nunavut Settlement Area:

      • B.2.2.1Goods, services and construction services contracts that have an estimated value of $100,000 and under; and
      • B.2.2.2Real property leases that have an estimated value of $1,000,000 and under.

    Procurement strategy phase

    • B.2.3Develop technical and price criteria, taking into account subsection 6.3.3 of the directive. In particular for construction contracts, avoid artificially inflated requirements for employment skills that are not essential to the fulfillment of the contract.
    • B.2.4Prior to developing Inuit benefits criteria, consult the Inuit firm list maintained by the DIO and conduct market research, as appropriate, to assess the capacity and availability of Inuit firms based on the nature of the work required under the competitive tender.
    • B.2.5

      Identify the following, as appropriate, based on the market research:

      • B.2.5.1The number of Inuit firms expected to meet some or all of the operational requirements;
      • B.2.5.2The type of expertise that Inuit have in relation to the required deliverable;
      • B.2.5.3The volume of business that Inuit firms have the capacity to support;
      • B.2.5.4The location of potential Inuit firms;
      • B.2.5.5The certifications required to meet the operational requirements, and whether there are Inuit firms who maintain the certifications; and
      • B.2.5.6Whether there are any other activities that are planned in the Nunavut Settlement Area that may affect the ability of Inuit firms to participate in the procurement opportunity.
    • B.2.6Conduct additional engagement activities, such as letters of interest, requests for information and/or scheduling bidders’ conferences, if further information is required.
    • B.2.7Apply information obtained from market research and engagement activities to structure the bid criteria for the purpose of realizing meaningful, measurable benefits for Inuit, while meeting business and operational requirements.
    • B.2.8

      Structure the following four bid criteria to be evaluated separately and independently from each other.

      Inuit benefits criteria
      • B.2.8.1Inuit employment: to evaluate the employment of Inuit labour.
      • B.2.8.2Inuit training and skills development: to evaluate the undertaking of commitments, under the contract, with respect to on-the-job training or skills development for Inuit.
      • B.2.8.3Inuit ownership (prime contractor and subcontractors): to evaluate whether the bidder is an Inuit firm listed on the Inuit firm list maintained by the DIO, and whether Inuit firms will be engaged as subcontractor(s) in carrying out the government contract in the Nunavut Settlement Area.
      Nunavut benefits criteria
      • B.2.8.4Location in the Nunavut Settlement Area: to evaluate whether the bidder or the subcontractor(s) have head offices, administrative offices or other facilities in the Nunavut Settlement Area.
    • B.2.9

      The Inuit employment component may include the following sub-criteria:

      • B.2.9.1The portion of labour attributable to Inuit;
      • B.2.9.2The description and duration of the employment opportunity;
      • B.2.9.3The opportunity for skills development;
      • B.2.9.4The sustainability of jobs;
      • B.2.9.5The type of work;
      • B.2.9.6The experience to be gained; and
      • B.2.9.7The human resource strategies for Inuit recruitment, retention, succession planning and staff management.
    • B.2.10

      The Inuit training and skills development component may include among others, the following sub-criteria:

      • B.2.10.1A description of the training and the training location (for example, apprenticeship, school programs, on-the-job or in-house training programs);
      • B.2.10.2The number of training opportunities for Inuit;
      • B.2.10.3The duration of the training;
      • B.2.10.4The quality of training;
      • B.2.10.5The effectiveness of the training delivery approach, such as classroom or fieldwork; and
      • B.2.10.6Specialization, certification or accreditation with future potential for employment.
    • B.2.11

      The Inuit ownership (prime and subcontractors) component may include, among others, the following sub-criteria:

      • B.2.11.1Demonstrable Inuit ownership of prime and subcontractor(s) through registration on the Inuit firm list maintained by the DIO;
      • B.2.11.2A description and the type of work to be conducted in-house by the Inuit-owned firm, or their Inuit firm subcontractor; and
      • B.2.11.3The number of subcontracting opportunities for Inuit firms.
    • B.2.12

      The location in the Nunavut Settlement Area component may include the following sub-criteria:

      • B.2.12.1A description of the number, type and size of the head offices, administrative offices or other facilities that are located in the Nunavut Settlement Area;
      • B.2.12.2The number of years that the firm has been in existence;
      • B.2.12.3A description of the type of work to be conducted in-house by the firm located in the Nunavut Settlement Area;
      • B.2.12.4A description of the type of work to be conducted by subcontractors located in the Nunavut Settlement Area; and
      • B.2.12.5The number of subcontracting opportunities for firms located in the Nunavut Settlement Area.

    Structure of the bid criteria in bids limited to Inuit firms

    • B.2.13

      When competitive tenders in the Nunavut Settlement Area are limited to Inuit firms:

      • B.2.13.1

        Each criterion has the following weight by default:

        CriterionDefault weight
        Inuit ownership5%
        Inuit employment10%
        Inuit training10%
        Location in the Nunavut Settlement Area5%
        Total30%
      • B.2.13.2Shift weighting toward the remaining bid criteria if one or more criteria are excluded to ensure that 30% of total available points are allocated to the bid criteria;
      • B.2.13.3Divide the remaining 70% of total available points between technical, financial, administrative and/or other criteria when rated criteria are established; and
      • B.2.13.4

        Adjust the weightings within the ranges set out below if, depending on the nature of the requirement and Inuit capacity, it is not possible to weight each criterion according to subsection B.2.13.1:

        CriterionType of contract and percentage weighting by contract type
        GoodsMajor contracts above $10 millionServices and construction servicesReal property leases
        Inuit ownership5% to 30%5%10% to 15%0% to 30%
        Inuit employment0% to 10%10%10% to 15%0% to 30%
        Inuit training0% to 10%10%0% to 10%0% to 30%
        Location in the Nunavut Settlement Area5% to 10%5%10% to 15%0% to 30%
        Total30%30%30%30%

    Structure of the bid criteria in bids that are not limited to Inuit firms

    • B.2.14

      When competitive tenders in the Nunavut Settlement Area are not limited to Inuit firms:

      • B.2.14.1

        Each criterion has the following weight by default:

        CriterionDefault weight
        Inuit ownership10%
        Inuit employment10%
        Inuit training10%
        Location in the Nunavut Settlement Area5%
        Total35%
      • B.2.14.2Shift weighting toward the remaining bid criteria if one or more criteria are excluded to ensure 35% of total available points are allocated to the bid criteria;
      • B.2.14.3Divide the remaining 65% of total available points between technical, financial, administrative and/or other criteria when rated criteria are established; and
      • B.2.14.4

        Adjust the weightings within the ranges set out below if, depending on the nature of the requirement and Inuit capacity, it is not possible to weight each criterion according to subsection B.2.14.1:

        CriterionType of contract and percentage weighting by contract type
        GoodsMajor contracts above $10 millionServices and construction servicesReal property Leases
        Inuit ownership10% to 30%10%10% to 15%0% to 30%
        Inuit employment0% to 10%10%10% to 15%0% to 30%
        Inuit training0% to 10%10%0% to 10%0% to 30%
        Location in the Nunavut Settlement Area5%5%5%5%
        Total35%35%35%35%
    • B.2.15Include the criteria under subsection 6.3.12 of the directive in solicitation documents.
    • B.2.16Include terms and conditions that require the bidder to provide the costs to fulfill the requirements for Inuit benefits criteria and Nunavut benefits criteria as separate line items in a bid.
    • B.2.17

      Include terms and conditions that require the contractor to:

      • B.2.17.1Report on Inuit benefits and Nunavut benefits achieved;
      • B.2.17.2Engage, when requested by the contracting authority or designated real property official, an independent professional to confirm that the contractor or lessor has met the requirements regarding any work to be performed by an Inuit firm or by Inuit; and
      • B.2.17.3Agree to holdback provisions when contractually obligated Inuit benefits are not being achieved in a government contract if they are invoked.
    • B.2.18Invoke set-aside provisions for small and minority businesses or Indigenous businesses for competitive tenders covered by trade agreements.

    Evaluation

    • B.2.19Evaluate bids according to the procedures set out in the solicitation or invitation to bid.

    Contract award

    • B.2.20Proceed to award the contract according to subsections 6.3.26, 6.3.27, and 6.3.28 of the directive.

    Contract administration and contract payment

    • B.2.21Request a report from the contractor or lessor on the Inuit benefits achieved.
    • B.2.22Assess whether contractually obligated Inuit benefits are not being achieved and apply holdback provisions, if appropriate.

    Reporting

    • B.2.23Report quarterly on the awarding of the contract and the Inuit benefits achieved according to Appendix C of the directive.

Appendix C: Mandatory Procedure on Documenting Government Contracts, Including Real Property Leases, in the Nunavut Settlement Area

  • C.1Effective date
    • C.1.1This mandatory procedure takes effect on .
  • C.2Standard
    • C.2.1This mandatory procedure describes the additional documentation in government records for government contracts valued at over $10,000 and real property leases valued at over $100,000 within the Nunavut Settlement Area.
    • C.2.2

      The mandatory procedure is as follows:

      • C.2.2.1

        The documentation collected and retained by a contracting authority responsible for a government contract in the Nunavut Settlement Area and a designated real property official responsible for a real property lease in the Nunavut Settlement Area must include the following:

        • C.2.2.1.1Confirmation that the business owner and either the contracting authority or the designated real property official applied the guidance in Aboriginal Consultation and Accommodation: Updated Guidelines for Federal Officials to Fulfill the Duty to Consult (March 2011);
        • C.2.2.1.2Confirmation by the contracting authority or the designated real property official that the business owner was aware of the Government of Canada’s obligations under Article 24;
        • C.2.2.1.3

          A copy, provided by the business owner, of the Inuit firm list maintained by the DIO on the day when:

          • C.2.2.1.3.1The contracting strategy was approved;
          • C.2.2.1.3.2The contract was awarded to an Inuit firm;
          • C.2.2.1.3.3The contract was amended; and
          • C.2.2.1.3.4The contract ends;
        • C.2.2.1.4A copy, provided by the business owner, of the evidence used to justify the Inuit benefit criteria, any subsequent modifications to the criteria, and the capacity among Inuit firms to successfully complete the work;
        • C.2.2.1.5Any market research provided by the business owner into the capacity of Inuit firms;
        • C.2.2.1.6A copy of any notification provided to Inuit firms who have successfully carried out a contract of a similar nature in the Nunavut Settlement Area; and
        • C.2.2.1.7A copy of the evidence provided by contractors that they have met their obligations regarding providing benefits to Inuit and Inuit firms, and any evidence of corrective measures if a contractor is unable to provide such benefits.

Appendix D: Mandatory Procedure on Reporting on Government Contracts, Including Real Property Leases, in the Nunavut Settlement Area

  • D.1Effective date
    • D.1.1This mandatory procedure takes effect on .
  • D.2Mandatory procedure
    • D.2.1This mandatory procedure describes the additional documentation required for government contracts valued at over $10,000, and for real property leases valued at over $100,000.
    • D.2.2

      The information in the following table must be included in the report required under the directive, excluding any information whose disclosure may compromise a criminal investigation, litigation, national security or public safety, and information described in paragraphs 20(1)(a) to (d) of the Access to Information Act (for example, a contractor’s trade secret).

      ElementDescription
      Reference numberUnique identifier for the government contract or real property lease in the Nunavut Settlement Area
      Value of government contract or real property leaseDollar value
      Vendor or lessor name and addressName and address
      Vendor or lessor classification
      • Inuit firm
      • Inuit joint venture
      • Indigenous firm
      • Indigenous joint venture
      • Other
      Type of government contract or real property leaseGoods, service, construction contract or real property lease
      Competitive (solicitation or invitation) or non-competitive contract or real property lease
      1. Invitation (limited for bidding by Inuit firms, or a right of first refusal)
      2. Reserved for competition among Indigenous firms
      3. Open tender or competitive
      4. Non-competitive
      Were Inuit firms that previously provided similar work or that have successfully fulfilled a similar real property lease notified of the solicitation?Yes or no
      Were Inuit benefit criteria included in the solicitation?Yes or no
      Value of Inuit benefitsDollar value
      Benefits provided to Inuit firms and InuitDescription of the benefits provided by the contractor or lessor

© Her Majesty the Queen in Right of Canada, represented by the President of the Treasury Board, 2019,
ISBN: 978-0-660-31811-0