Close Combat Vehicles project—request for proposal 1

On this page

• Fairness monitor attestation of assurance
• Scope and objectives of the fairness monitor assignment
• Activities and findings during solicitation of interest and qualifications stage
• Reference documents

As Fairness Monitor, Knowles Consultancy Services Inc. and Hill International Inc. in joint venture, hereafter referred to as the Fairness Monitor (FM), hereby submits its fairness monitor contractor’s final report (FM Final Report) pertaining to the competitive procurement process for close combat vehicles (CCV) for the Department of National Defence, undertaken by Public Works and Government Services Canada (PWGSC). This FM final report covers the activities of the Fairness Monitor chronologically, commencing with the issuance of three Solicitations of Interest and Qualification (SOIQs): an initial SOIQ (Solicitation Number W6508-10CC01/D), SOIQ 2 (Solicitation Number W6508-10CC01/E) and SOIQ 2A (Solicitation Number W6508-10CC01/G). A Request for Proposal (RFP) [Solicitation Number W6508-10CC01/H] was then issued to bidders with qualified vehicles and the evaluation of bids completed.

It is to be noted that SOIQ 2, and subsequently SOIQ 2A, were issued as a result of receiving no compliant responses to the initial SOIQ. A list of bidders with qualified vehicles was established under SOIQ 2 and SOIQ 2A.

Fairness Monitor attestation of assurance

In accordance with the FM’s contract, fairness is defined as decisions made objectively, free from personal favouritism and political influence, and encompasses the elements of openness, competitiveness, transparency and compliance.

It is the opinion of the FM that the competitive procurement process for the close combat vehicle (CCV) project monitored by the fairness monitor, was conducted in a fair manner with the exception of Canada’s failure to provide appropriate debriefings to respondents concerning the results of the evaluation of responses to the initial SOIQ, after having determined that all responses were non-compliant and the SOIQ was cancelled.

This failure constituted a material fairness deficiency because debriefings are a fundamental aspect of transparency and competitiveness and respondents were denied information fundamental to a decision as to whether or not to respond to SOIQ 2, and, if responding, to be able to take into account full information on the areas of non-compliance.

With the above exception, the competitive procurement process for the CCV project was conducted in a fair manner with respect to the SOIQ 2, SOIQ 2A and RFP solicitation processes, including the evaluation of responses received to each solicitation, and the decision to cancel the RFP.

Note: For all references in this report concerning fairness related comments being provided to project officials, it is confirmed that, as necessary, project officials provided clarification to the fairness monitor or took appropriate action to address the comments, and as a result no fairness deficiencies were recorded. 

Scope and objectives of the fairness monitor assignment

The overall objective was as follows: provide PWGSC with independent observation of project procurement activities; provide fairness related comments to project officials as early as possible so that appropriate action could be taken to resolve the concerns before fairness was impacted; bring any potential fairness concerns to the attention of the Operational Integrity Sector if there is no timely resolution with project officials; and attest to the fairness of the procurement process, including its execution.

To accomplish the objective we undertook the following activities:

• became familiar with the project governance structure
• reviewed the three SOIQs and the RFP
• reviewed all amendments to the SOIQs and RFP, including questions submitted by respondents and answers provided
• reviewed the procedures to be used for the evaluation of responses to the SOIQs and the RFP, and the guidance provided to the evaluation teams
• observed the evaluation of responses to the SOIQs and the RFP to ensure that the specified evaluation and selection procedures and departmental policy were followed and consistently applied during the evaluation and selection processes
• observed the debriefing of unsuccessful bidders on the SOIQs and the RFP (The observation of the debriefings on the RFP will be reported on in an addendum to this report after any RFP debriefings.)

Activities and findings during solicitation of interest and qualifications stage

Activities and findings during initial solicitation of interest and qualifications process

Activities and findings during initial solicitation of interest and qualifications development

On October 1, 2009 the Fairness Monitor Specialist (FM Specialist) reviewed the Letter of Interest (LOI) including industry day documentation (Document 1) that had been previously posted on MERX^{Footnote 1}.

During the period October 5, 2009 to December 7, 2009, the FM Specialist reviewed draft versions of the SOIQ and provided fairness related comments to PWGSC project officials. Appropriate action was taken. The CCV project was put on hold in January, 2010 and was subsequently re-started in March 2010.

On March 29, 2010 the FM Specialist observed a plenary group meeting and one-on-one meetings with interested proponents.  No fairness deficiencies were identified.

On April 22 and 23, 2010, the FM Specialist reviewed the draft SOIQ and provided fairness related comments to PWGSC project officials.  Appropriate action was taken. 

Activities and findings during the initial solicitation of interest and qualifications MERX^{Footnote 1} publication period

The SOIQ was posted on MERX^{Footnote 1} on April 26, 2010 (Document 2). During the period April 29, 2010 to June 22, 2010, the FM Specialist reviewed the SOIQ and Amendments 1 to 7 (Documents 3 to 9).  No fairness deficiencies were identified. 

Activities and findings related to the evaluation of initial solicitation of interest and qualifications responses

On May 27, 2010 the FM Specialist observed an Evaluation Presentation and Rehearsal meeting and provided fairness related comments. During the period May 31, 2010 to June 17, 2010 the FM Specialist reviewed draft versions of an evaluation directive entitled CCV “Internal Proposal Evaluation Instruction & Procedures” (Document 10). Fairness related comments concerning the evaluation process were provided to PWGSC project officials. Appropriate action was taken on all comments.

During the period June 30, 2010 to August 3, 2010, the FM Specialist observed evaluation consensus meetings on the mandatory requirements.  There were no rated requirements.  No fairness deficiencies were identified.

Activities and findings after evaluation of initial solicitation of interest and qualifications responses

Based on the evaluation of responses to the SOIQ Canada determined that all of the responses were non-compliant. Canada notified the respondents by letter dated August 13, 2010 that the SOIQ would be cancelled and a new SOIQ issued at a later date. Canada provided in the letter to each respondent what it termed to be a “written debrief with minimum details”.

On August 16, 2010 the FM Specialist advised Canada that the letters that were sent to respondents did not constitute written debriefings because only partial information was provided to each respondent as to why its response was non-compliant. The FM Specialist explained why, if Canada did not provide debriefings to respondents that included an explanation as to where and why the respondent was non-compliant, it would constitute a material fairness deficiency related to transparency and competitiveness.

In response to Canada’s letter of August 13, 2010 Canada received requests from three respondents on August 16, 18 and 24, 2010 for full debriefings. On August 31, 2010 Canada advised each respondent that it would not provide additional information concerning the respondent’s non-compliance.

Activities and findings during solicitation of interest and qualifications 2 and solicitation of interest and qualifications 2A process

Activities and findings during solicitation of interest and qualifications 2 development

On August 18 and 23, 2010 the FM Specialist reviewed drafts of SOIQ 2 and provided fairness related comments to PWGSC project officials. Appropriate action was taken. 

Activities and findings during the solicitation of interest and qualifications 2 MERX^{Footnote 1} publication period

SOIQ 2 was posted on MERX^{Footnote 1} on August 25, 2010 (Document 11). On August 26, 2010 the FM Specialist reviewed SOIQ 2 as published, and on September 2 and 3, 2010 he reviewed Amendments 1 and 2 to SOIQ 2 (Documents 12 and 13). No fairness related comments were provided.

Activities and findings related to the evaluation of solicitation of interest and qualifications 2 responses

SOIQ closed on September 13, 2010. During the period September 15, 2010 to September 23, 2010, the FM Specialist observed consensus evaluation meetings on the mandatory requirements and provided fairness related comments. Appropriate action was taken. There were no rated requirements.

Activities and findings related to debriefings of respondents

On September 28, 2010 the FM Specialist reviewed written debriefings to be provided to respondents. No fairness related issues were identified concerning the written debriefings.

On October 8, 2010 the FM Specialist observed the oral debriefing of a respondent that had been found non-compliant on certain of its responses. No fairness related issues were identified concerning the conduct of the oral debriefing.

Activities and findings related to meetings with qualified respondents

During the period October 18 to 22, 2010 project officials met, on a one-on-one basis, with the respondents that had been qualified as a result of SOIQ 2 for the purpose of reviewing the approach to be followed by Canada in the upcoming RFP. The FM Specialist did not observe these meetings and advised project officials that he would provide any applicable fairness related comments on the drafts of the RFP to be provided on the project website.

Activities and findings related to complaint from a respondent

On October 17, 2010 the FM Specialist reviewed a letter from the respondent that had previously received a written and oral debriefing. Among other things, the letter alleged that some of its responses had not been properly evaluated.

On November 16, 2010 the FM Specialist was advised that Canada had decided to address the respondent’s allegations by re-evaluating the respondent’s response to the relevant requirements. The FM Specialist provided fairness related comments on the approach to be followed. All comments were addressed appropriately. During the period November 24 to 29, 2010, the FM Specialist observed the re-evaluation of the relevant requirements and provided fairness related comments. Appropriate action was taken.

On December 10, 2010 the FM Specialist was provided with copies of two proposed letters to respondents. One letter was addressed to the respondent that had complained, advising it, inter alia, that the results of the re-evaluation of its relevant submissions had confirmed the original evaluation.

The second letter was addressed to all respondents, informing them that Canada had concluded that some respondents may have been disadvantaged in the evaluation process on SOIQ 2 (Solicitation W6508-10CC01/E) by evaluation information that had been provided by Canada on the original SOIQ (Solicitation W6508-10CC01/D), and that an additional qualification process would be posted on MERX^{Footnote 1}.

The additional process would not cancel or supersede SOIQ 2, the current Pre-Qualified Bidders list would still be valid and respondents would not have to resubmit responses for any vehicles that had already been qualified.

The FM Specialist had no fairness related comments on the approach taken by Canada or the wording of the two letters.

Activities and findings during the solicitation of interest and qualifications 2A MERX^{Footnote 1} publication period

The additional solicitation (W6508-10CC01/G), hereafter referred to as SOIQ 2A (Document 14), was reviewed by the FM Specialist and posted on MERX^{Footnote 1} on December 16, 2010 with a closing date of January 17, 2011. No fairness related comments were provided. Submissions were received from one respondent.

Activities and findings related to the evaluation of solicitation of interest and qualifications 2A responses

During the period January 17, 2011 to February 1, 2011, the FM Specialist observed consensus evaluation meetings on the mandatory requirements and provided fairness related comments. Appropriate action was taken. There were no rated requirements.

Activities and findings related to debriefings of respondents

On February 3, 2011 the FM Specialist reviewed the summary of the evaluation results and the proposed debriefing letters to the respondent. No fairness related comments were provided. 

Activities and findings during request for proposal stage

Activities and findings during the development and posting of the request for proposal

During the period March 18, 2011 to August 29, 2011, the FM Specialist reviewed draft and final versions of parts of the RFP, and amendments to the RFP, as they were progressively posted on the File Transfer Protocol (FTP) Internet Website.

The RFP was posted through three releases on the Website in order to provide bidders with the opportunity to commence preparation of their responses and thereby shorten the project schedule. Release 1 was posted on March 24, 2011 (Document 15). Release 2/Amendment 1 was posted on April 8, 2011(Document 16), and Release 3/Amendment 4 was posted on May 6, 2011 (Document 19). Fairness related comments were provided and appropriate action was taken by project officials.

Amendments 2 (Document 17) and 3 (Document 18) and 5 to 16 (Documents 20 to 31) were posted as they occurred. Fairness related comments were provided and appropriate action was taken by project officials.

On June 15, 2011 the FM Specialist observed the bidders conference, and on June 15 and 16, 2011 the FM Specialist observed one-on-one meetings with the qualified bidders.  No fairness deficiencies were identified.

The RFP closed on August 29, 2011.

Activities and findings during bid evaluation stage

During the period August 30, 2011 to September 14, 2011, the FM Specialist reviewed the evaluation directive for the project entitled “Internal Proposal Evaluation Instruction & Procedures” (Document 32) and provided fairness related comments. All comments were addressed appropriately by project officials.

During the period September 16, 2011 to February 23, 2012, the FM Specialist observed consensus evaluation meetings and provided fairness related comments. All comments were addressed appropriately by project officials.

Activities and findings related to the cancellation of the request for proposal

At the conclusion of the evaluation process it was determined that all proposals received were non-compliant.

On March 16, 2012 the FM Specialist was provided with a briefing and background information concerning action that Canada intended to take as a result of all proposals being non-compliant. He was asked to review the proposed course of action and provide any applicable fairness related comments.

During the period March 17, 2012 to April 26, 2012, the FM Specialist reviewed the proposed course of action and the associated documentation, and provided fairness related comments. Appropriate action was taken by project officials to address the comments.

On April 27, 2012 the FM Specialist was advised by the Contracting Authority that PWGSC had cancelled the RFP and would be issuing a new RFP to all companies that had vehicles qualified under the SOIQ process. Copies of the letters dated April 27, 2012 advising the companies of the cancellation were provided to the FM Specialist. No fairness related issues were identified.

Reference documents

The following documents are referenced by number in the attached report. Unless otherwise indicated, these documents are available through the close combat vehicle (CCV) project office.

Table summary

The following table includes a list of documents referred to in the report such as the Request for Proposal (RFP), amendments, clarification letters, debriefing letters, etc. Each row is numbered, followed by the document title, then a document identifier such as a date or document number.

No.	Document	Additional information
1	Letter of Interest and Industry day documentation	Reviewed by the FM Specialist on October 1, 2009
2	SOIQ	Released on MERXFootnote 1 April 26, 2010
3	Amendment # 1 to SOIQ	Released on MERXFootnote 1 April 28, 2010
4	Amendment # 2 to SOIQ	Released on MERXFootnote 1 May 14, 2010
5	Amendment # 3 to SOIQ	Released on MERXFootnote 1 May 19, 2010
6	Amendment # 4 to SOIQ	Released on MERXFootnote 1 May 26, 2010
7	Amendment # 5 to SOIQ	Released on MERXFootnote 1 May 27, 2010
8	Amendment # 6 to SOIQ	Released on MERXFootnote 1 June 3, 2010
9	Amendment # 7 to SOIQ	Released on MERXFootnote 1 June 22, 2010
10	CCV internal proposal evaluation instructions and procedures	Final Version reviewed by the FM Specialist on June 17, 2010
11	SOIQ 2	Released on MERXFootnote 1 August 25, 2010
12	Amendment 1 to SOIQ 2	Released on MERXFootnote 1 September 3, 2010
13	Amendment 2 to SOIQ 2	Released on MERXFootnote 1 September 3, 2010
14	SOIQ 2A	Released on MERXFootnote 1 December 16, 2010
15	RFP release 1	Posted March 24, 2011
16	RFP release 2/Amendment 1 to RFP	Posted April 8, 2011
17	Amendment 2 to RFP	Posted April 15, 2011
18	Amendment 3 to RFP	Posted April 29, 2011
19	RFP release 3/Amendment 4 to RFP	Posted May 6, 2011
20	Amendment 5 to RFP	Posted May 31, 2011
21	Amendment 6 to RFP	Posted June 17, 2011
22	Amendment 7 to RFP	Posted June 29, 2011
23	Amendment 8 to RFP	Posted July 12, 2011
24	Amendment 9 to RFP	Posted July 22, 2011
25	Amendment 10 to RFP	Posted July 29, 2011
26	Amendment 11 to RFP	Posted August 5, 2011
27	Amendment 12 to RFP	Posted August 12, 2011
28	Amendment 13 to RFP	Posted August 18, 2011
29	Amendment 14 to RFP	Posted August 22, 2011
30	Amendment 15 to RFP	Posted August 24, 2011
31	Amendment 16 to RFP	Posted August 29, 2011
32	CCV internal proposal evaluation instructions and procedures	Final version reviewed by FM Specialist on September 14, 2011