Design-Build Services for Underground Stabilization Work at Giant Mine (Giant Mine) - Fairness Monitoring Services

Table of Contents

• 1. Background / Introduction
• 2. Project Requirement
• 3. Attestation of Assurance
  • 3.1 Conclusion and Attestation
  • 3.2 Summary of Fairness Observations
• 4. Methodology
• 5. Reference Documents

1. Background / Introduction

PPI Consulting Limited (PPI) was engaged as a Fairness Monitor (FM) to observe the procurement process for the Design-Build Services for underground stabilization work at Giant Mine (Giant Mine) project which was issued by Public Works and Government Services Canada as a result of RFP # EW702-131876/A.

PPI is an independent third party with respect to this activity.

The PPI Fairness Monitoring team was engaged with the project on November 2, 2012, while the project team was preparing the RFP. Throughout the project we reviewed all of the information provided and observed all relevant activities.

The Giant Mine project RFP was issued on April 4, 2013. A mandatory site visit and Bidders' Conference was held on April 17 – 18, 2013 at the Giant Mine site in Yellowknife, Northwest Territories. The RFP close date was May 22, 2013. The Evaluation Phase began on May 27, 2013 and was concluded with the Evaluation Board Meeting on June 3 and 4, 2013.

We hereby submit the Final Report covering the activities of the Fairness Monitor, commencing on November 2, 2012, and continuing through the completion of the solicitation period, the evaluation phase, and final ranking of proposals.

This report includes our attestation of assurance, a summary of the scope and objectives of our assignment, the methodologies applied and relevant observations from the activities undertaken.

2. Project Requirement

Giant Mine is near Yellowknife, Dettah and Ndilo in the Northwest Territories (NWT). The former gold mine opened in 1948 and operated for more than 50 years. After the owner of the mine went bankrupt in 1999, Indian and Northern Affairs Canada (INAC) took over the site. INAC and the Government of the Northwest Territories (GNWT) are now responsible for site management and cleanup. Giant Mine is the second largest contaminated site in Canada that is being managed by the federal government. The total area of the mine site covers approximately 850 hectares or twice the size of downtown Yellowknife and is 700 metres deep.

Since 2000, INAC and the GNWT have been working with independent experts and the public to develop a plan to clean up the site. This "Remediation Plan" is now being looked at by the MacKenzie Valley Environmental Impact review Board (Review Board). The Review Board is the co-management group that does environmental assessments in the MacKenzie Valley.

A variety of environmental concerns left at Giant Mine need to be cleaned up and managed. The greatest challenge on the site is the 237,000 tonnes of arsenic dust stored underground. This dust needs to be managed long term to make sure the people and animals in the area are safe.

A Remediation Plan for Giant Mine was developed by INAC and its Technical Advisor after extensive consultation with the general public, other government departments and industry experts. The Remediation Plan was subsequently vetted by an Independent Peer Review Panel. In 2007, the Remediation Plan for Giant Mine was submitted to the regulatory process for review in support of a water license application.

A contract for Design-Build Services for underground stabilization work is expected to be awarded in June 2013 with all work expected to be completed by March 31, 2018.

On April 4, 2013, Public Works and Government Services Canada (PWGSC) issued a Request for Proposals via the MERX tendering management system. A mandatory site visit and Bidders' Conference was held on April 17 – 18, 2013 at the Giant Mine site in Yellowknife. The RFP close date was May 22, 2013. The Evaluation Phase began on May 27, 2013 and was concluded with the Evaluation Board Meeting on June 3 and 4, 2013.

3. Attestation of Assurance

3.1 Conclusion and Attestation

In summary, it is our professional opinion that the Giant Mine RFP process we observed was carried out in a fair, open and transparent manner.

3.2 Summary of Fairness Observations

During the initial review of project documentation, the PPI FM Specialist provided feedback concerning all documents to the Giant Mine project team. No fairness-related issues were observed.

No fairness-related issues were observed with respect to the e-mail communications between Canada and Bidders.

No fairness-related issues were observed with respect to the mandatory site visit and Bidders' Conference.

No fairness-related issues were observed with respect to the final RFP documents (updates, amendments), answers to questions and other documentation provided to Bidders.

The Technical evaluation was conducted in accordance with the process defined in the RFP. No fairness-related issues were observed.

The Financial Assessment was conducted in accordance with the process defined in the RFP. No fairness-related issues were observed.

The final ranking of proposals was completed in accordance with the process defined in the RFP. No fairness-related issues were observed.

4. Methodology

PPI Consulting Limited (PPI) was engaged as a Fairness Monitor (FM) to observe the procurement process for the Giant Mine project and to attest to the fairness, openness and transparency of this monitored activity.

In accordance with the terms of our engagement, we familiarized ourselves with the relevant project documentation, reviewed communications between Canada and the Bidders that was provided to us, observed the site visit and Bidders' Conference and observed the Evaluation Committee meetings. Throughout these activities we have identified fairness-related matters to the Contracting Authority, and ensured that responses and actions were reasonable and appropriate.

The PPI Fairness Monitoring team became familiar with project documentation including the Request for Proposals (RFP) and the Evaluation Criteria for the RFP stages. The PPI FM Specialist assessed the fairness of all RFP documentation, provided feedback to the project team concerning any fairness issues and/or deficiencies with respect to the project documentation, and ensured that responses and actions were reasonable and appropriate.

The PPI FM Specialist attended the site visit and Bidders' Conference on April 17 – 18, 2013 at the Giant Mine site in Yellowknife. The PPI FM Specialist monitored and provided feedback concerning the fairness of the process conducted and information provided to Bidders.

The PPI FM Specialist monitored communications with Bidders such as, but not limited to, Bidders' questions and Canada's responses, requests for clarification, e-mail exchanges and any other communication involving Bidders during the Solicitation Response Period. All fairness considerations were satisfactorily addressed.

The PPI FM Specialist attended the Evaluation Consensus meetings held on June 3 and 4, 2013 at the PWGSC office in Edmonton. The PPI FM Specialist monitored activities by Board members, information gathered, documentation prepared and decisions reached. Appropriate actions were taken by project officials.

The PPI FM Specialist was present to observe the Aboriginal Employment Incentive and Penalty Evaluation, Financial Proposal Assessment, and final ranking of proposals. The PPI FM Specialist monitored activities by Board members, information gathered, documentation prepared and decisions reached. Appropriate actions were taken by project officials.

5. Reference Documents

The following documents are referenced in this report and are available through PWGSC.

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.

#	Document	Document Details
1	Request for Proposals EW702-131876/A	Posted on MERX on 04 April, 2013
2	Solicitation Amendment 1	Posted on MERX on 29 April, 2013
3	Solicitation Amendment 2	Posted on MERX on 30 April, 2013
4	Solicitation Amendment 3	Posted on MERX on 1 May, 2013
5	Solicitation Amendment 4	Posted on MERX on 13 May, 2013
6	Solicitation Amendment 5	Posted on MERX on 15 May, 2013
7	Solicitation Amendment 6	Posted on MERX on 15 May, 2013
8	Solicitation Amendment 7	Posted on MERX on 16 May, 2013
9	Giant Mine Confidentiality Conflict of Interest Declaration	Provided to Evaluation Team
10	Giant Mine Consensus Evaluation Form	Provided to Evaluation Team
11	Giant Mine Guide to the Evaluation Board	Provided to Evaluation Team
12	Giant Mine Individual Evaluation Form	Provided to Evaluation Team
13	Giant Mine Aboriginal Employment Incentive and Penalty Evaluation	Provided to Evaluation Team
14	Giant Mine Submission Requirements And Evaluation Procedure	Provided to Evaluation Team

Addendum to the Final Report
August 26, 2013

Addendum to Fairness Monitor Final Report dated August 26^th, 2013.

This Addendum to the Fairness Monitor Final Report covers the period following the conclusion of the evaluation phase.

RFP Cancellation, Communications and Debriefing

The RFP process was cancelled on 19 June, 2013 because all bids/offers were non-responsive or did not represent fair value. PWGSC stated its intention to modify (significantly) the RFP and re-issue it in the fall of 2013. On this basis (and according to PWGSC directive PN-91R1, Debriefings) bidders were only informed of which mandatory criteria or rated criteria requiring a minimum score were failed. No detail was provided as to why the bidders failed each criteria. No information on other rated criteria was provided.

Debriefing letters were prepared and issued to all four unsuccessful bidders July 9, 2013.

It is our professional opinion that the Giant Mine procurement we observed was carried out in a fair, open and transparent manner.