General Design Services for Giant Mine Remediation Project

Table of Contents

1. Background and Introduction
2. Project Requirement
3. Attestation of Assurance
4. Objectives of the Fairness Monitor Assignment and Methodology
5. Fairness Monitor Specific Activities and Findings
6. Reference Documents

Background and Introduction

Knowles Consultancy Services Inc. and Hill International Inc. in Joint Venture was engaged as the Fairness Monitor (FM) to observe the competitive procurement processes required for long term contracts to support the Giant Mine Remediation Project undertaken by Public Works and Government Services Canada (PWGSC). Knowles Consultancy Services Inc. and Hill International Inc. in Joint Venture is an independent third party with respect to this activity.

The Giant Mine Remediation Project in Yellowknife, NWT, requires a number of support services and design services contracts. The subject of this report is the procurement of General Design Services undertaken through Solicitation Number EW702-140229/A.

We hereby submit the Final Report on our activities during the procurement process for General Design Services, commencing with a Site Visit and Industry Day held for interested firms covering all consulting support services and design services required for the remediation project, reviews of a draft and final Request for Proposal (RFP), the evaluation of proposals and the selection of the recommended bidder.

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

Project Requirement

After the owner of the Giant Mine located in Yellowknife in the Northwest Territories went into receivership, the Government of Canada took on the responsibility for the existing environmental liabilities on the Giant Mine property. Environmental liabilities include 237,000 long tons of arsenic trioxide dust produced during the gold roasting process stored in fourteen chambers underground, eight open pits, 35 openings to the mine, four tailing ponds, and 100 buildings including a roaster house complex that is highly contaminated with arsenic and fibrous asbestos.

An environmental assessment, part of the water licensing process, has recently been completed and is being reviewed by project officials. Remediation planning is underway through advancement of design, development of specifications, as well as coordination of the overall remediation work.

Remediation planning involves several phases: care and maintenance contract activities currently underway; contracts specific to time critical site stabilization and supporting services some of which are underway with others imminent; and long term contracts for long term remediation. Long term remediation includes contracts for environmental support services, mining support services, civil design services, general design services and construction management services. 

The General Design Services may include but are not limited to:

• development of specifications and drawings to support a Design-Bid-Build project delivery approach for the Ground Freeze System;
• development of performance based specifications to support a Design-Build-Operate project delivery approach for the Effluent Treatment Plant; and
• development of specifications and drawings to support a Design-Bid-Build project delivery approach for supporting on site and off site infrastructure including site services and utilities.

The Work to be performed under the Contract will be on an “as and when required basis” using Task Authorizations.

Attestation of Assurance

The FM hereby provides the following unqualified assurance statement concerning the procurement process to select a company to provide General Design Services for the Giant Mine Remediation Project:

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

Objectives of the Fairness Monitor Assignment and Methodology

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 as 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 Buy and Sell postings regarding the overall Giant Mine Remediation Project along with observing a Site Visit and Industry Day;
• reviewed the Request for Proposal (RFP);
• reviewed all amendments and addenda to the RFP including questions submitted by bidders and answers provided;
• reviewed the procedures to be used for the evaluation of responses and the guidance provided to the evaluation team;
• observed the evaluation of responses to the RFP to ensure that the specified evaluation and contractor selection procedures and departmental policy were followed and consistently applied during the evaluation and selection process; and
• observed the debriefing of unsuccessful bidders. (This activity will be reported on in an addendum to this report after any debriefings.)

Fairness Monitor Specific Activities and Findings

Fairness Monitor Activities and Findings prior to the RFP Posting Period

On August 1, 2012 we observed a Site Visit and Industry Day held in Yellowknife that were held for industry for all required consulting services including general design services that would be required for the Giant Mine Remediation Project.  Attendees were provided with background information on the project and an outline of the proposed procurement plan including the types of services that would be required. The attendees were also provided with a tour of the Giant Mine site.  No fairness deficiencies were identified.

On May 16, 2013 we reviewed a draft of the RFP for General Design Services. No fairness deficiencies were identified. 

Fairness Monitor Activities and Findings during the RFP Posting Period

On June 21, 2013 we reviewed the RFP for General Design Services (Document 1) as posted on Buy and Selland during the period June 24, 2013 to July 26, 2013, we reviewed Amendments 1 to 8 (Documents 2 to 9) including questions from interested firms and answers provided. Fairness related comments were provided and appropriate action was taken by project officials. 

On July 10, 2013 we monitored by teleconference the optional Bidders’ Conference. Fairness related comments were provided and appropriate action was taken by project officials. 

The RFP closed on August 7, 2013.

FM Activities and Findings during the Evaluation Phase

On August 14 and 15, 2013, we observed the consensus evaluation of the proposals received in response to the RFP and provided fairness related comments to the Contracting Authority. Appropriate action was taken by project officials. On August 15, 2013 we also observed the financial evaluation and the application of the basis of selection. No fairness deficiencies were identified.

Reference Documents

The following documents are referenced by number in this report. Unless otherwise indicated, these documents are available through the Giant Mine Remediation project office.

Addendum to the Final Report
January 20, 2014

Addendum to Fairness Monitor Contractor’s Final Report dated September 9, 2013 concerning General Design Services for the Giant Mine Remediation Project

This Addendum to the Fairness Monitor Contractor’s Final Report covers the period following the conclusion of the evaluation phase and includes contract award and debriefings of bidders.

A contract was awarded to the successful bidder on December 10, 2013 and we reviewed the individual letters forwarded to the unsuccessful bidders on the same day. Each letter provided comprehensive details of the evaluation results of the respective proposal and an invitation to contact the Contracting Authority if further information was required. On January 10, 2014 we were informed by project officials that no requests had been received for further information.  No fairness deficiencies were identified.

Fairness Monitor Attestation of Assurance

It is the opinion of the Fairness Monitor that the post evaluation activities, including the written debriefings, were carried out in a fair manner. In this context, fairness is defined as decisions made objectively, free from personal favouritism and political influence, and encompasses the elements of openness, competitiveness, transparency and compliance.