F404 Propulsion Interim System Support Procurement

Table of Contents

1. Introduction
2. F404 Propulsion Interim System Support Requirement
3. Fairness Monitor Attestation of Assurance
4. Methodologies, Activities and Specific Findings
   1. 4.1 FM Activities and Observations: Request for Proposals
   2. 4.2 FM Activities and Observations: Evaluation Phase
5. Reference Documents

1. Introduction

Hallux Consulting Inc. (hereafter referred to as the Fairness Monitor) hereby submits its Fairness Monitor Contractor's Final Report (FM Final Report), pertaining to the competitive procurement process for the F404 PROPULSION GROUP INTERIM SYSTEM SUPPORT procurement undertaken by Public Works and Government Services Canada (PWGSC) through Solicitation Number W8485-14DL01/B.

Hallux Consulting Inc. is an independent third party with respect to this activity. We reviewed all of the information provided, attended proposal evaluation team meetings and observed all relevant activities as described below and in accordance with our mandate. We had full access to all aspects of the procurement process and co-operation from all stakeholders at PWGSC and the Department of National Defence (DND).

We hereby submit the Final Report, covering the activities of the Fairness Monitor, commencing with a review of the request for proposals on February 19, 2014 that had been posted, with the Notice of Proposed Procurement (NPP) on buyandsell.gc.ca and continuing through: one-on-one sessions with prospective suppliers; the evaluation of the proposals received; and, the issuing of a letter to the successful and the unsuccessful bidder on March 31, 2014 and April 4, 2014 respectively. It should be noted that the Fairness Monitor attended two one-on-one sessions, on February 20, 2014, that were offered to all potential bidders and were attended by two interested parties.

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

2. F404 Propulsion Interim System Support Requirement

The Notice of Proposed Procurement (NPP) - F404 Propulsion Interim System Support was issued on buyandsell.gc.ca to all potential suppliers in order to the meet a Department of National Defence requirement for the provision of services for the Program Support, Maintenance, Engineering, Material, Field Service Representatives, and Publications Support for the F404 Propulsion Group and ancillary components for the period 1 April 2014 to 31 March 2015 with a one year option.

In the performance of the Work, the contractor was requested to supply, other than Government Issue, all the resources, facilities, labour and supervision, management services, equipment, materials, drawings, technical data, technical assistance, engineering services, inspection and quality assurance procedures and planning necessary to perform the work, as specified in the Statement of Work and related documents.

This interim, short-term two-year transitional contract was required in order to avoid a gap in contractual coverage, which could significantly impact Royal Canadian Air Force (RCAF) operations.

3. Fairness Monitor Attestation of Assurance

The Fairness Monitor hereby provides the following unqualified assurance statement concerning the competitive procurement process for F404 Propulsion Interim System Support commencing with the request for proposals and continuing through to the selection of the successful bidder on March 31, 2014.

It is our professional opinion that the procurement process we observed for the above Interim System Support, was carried out in a fair, open and transparent manner.

Date: April 10, 2014

4. Methodologies, Activities and Specific Findings

Hallux Consulting Inc. was engaged as the Fairness Monitor (FM) to observe the competitive procurement process for F404 Propulsion Interim System Support, undertaken by Public Works and Government Services Canada (PWGSC), and to attest to the fairness, openness and transparency of this monitored activity.

In accordance with the terms of this engagement, we familiarized ourselves with the relevant documents – including reviewing the Request for Proposal (RFP) that had been posted on buyandsell.gc.ca February 3, 2014. We attended one-on-one sessions with two potential bidders and we reviewed Supplier questions and answers arising from the one-on-one sessions that were provided by the Crown (Q&As). We reviewed communications between the Contracting Authority (CA) and prospective bidders and with the F404 Technical Authority (TA). We observed the technical evaluation of the two bids received; and we reviewed the financial evaluation and Industrial and Regional Benefit (IRB) assessment of the bids. We provided fairness related comments to the Contracting Authority and we ensured that responses and actions were reasonable and appropriate.

4.1 FM Activities and Observations: Request for Proposals

On February 19, 2014, the FM reviewed the Notice of Proposed Procurement (NPP) posted on buyandsell.gc.ca on January 31, 2014; the RFP that had been posted on February 3, 2014, along with and the Amendment 1 announcing an Industry Day that had been posted on February 13, 2014.

The FM attended one-on-one sessions with two potential bidders on February 20, 2014. The FM reviewed questions posed by the potential bidders during and following the one-on-one sessions. The FM observed meetings with the Contracting Authority and the F404 Technical Authority to discuss responses to the questions received. The responses to the questions were posted to the buyandsell.gc.ca website, on March 7, 13 and 14, 2014. Revised RFP documents were posted on buyandsell.gc.ca on March 10, 2014. Throughout the RFP phase of the procurement, the closing date was extended four times, resulting in a final closure on March 19, 2014. In addition, the FM reviewed written communication between the Contracting Authority and the F404 Technical Authority.

At the close of the RFP, two proposals had been received.

Observation: Timeliness of Responses to Questions

The procurement authorities held one-on-one sessions with two prospective suppliers on February 20, 2014. During the one-on-one sessions, and following the sessions, questions were posed to the CA. With the FM in attendance, the CA and the Technical Authority met on two occasions to review and discuss potential responses to the questions received. During the meetings, fairness issues were considered and appropriately dealt with. The majority of questions arising from the one-on-one sessions were posted on the buyandsell.gc.ca website on March 7, 2014; however, responses that did not oblige changes to the RFP continued to be posted until March 14, 2014 – five days before the final closing date for the RFP phase of the procurement. On March 10, 2014, the CA had to repost Q&A to the buyandsell.gc.ca website, due to a technical or procedural issue.

It should be noted that revised RFP documents, addressing issues (Q&As) arising from the one-on-one sessions were posted on the buyandsell.gc.ca website on March 10, 2014 – nine days before the final closing date for the RFP phase of the procurement. As such, potential bidders are considered to have been provided sufficient time to ensure that their bid submissions were modified, if required, to reflect the revised requirements noted in the RFP documents.

No fairness issues resulted from the above observation.

4.2 FM Activities and Observations: Evaluation Phase

The FM attended the technical evaluation sessions on March 21-22, 2014, led by the Technical Authority. The technical evaluation team members were given specific, detailed instructions by the Contracting Authority and Technical Authority on how to proceed with the technical evaluation of the bids received. The three members of the technical evaluation team proceeded to independently evaluate the bids in accordance with the mandatory evaluation criteria described in the RFP. A fourth technical evaluator was added to provide additional subject matter expertise for the technical evaluation team's assessment of the Airworthiness mandatory requirements. The FM attended the consensus meeting and he reviewed the written consensus of the technical evaluation that was documented and signed on March, 24, 2014.

The FM reviewed the Contracting Authority's financial bid evaluation that was undertaken independently from the technical evaluation team as well as the results of the Industry Canada IRB assessment and the evaluation. The FM further reviewed the two pieces of correspondence advising the successful and unsuccessful bidders of the results of the bids' evaluation.

5. Reference Documents

The documents in the table below were reviewed by the FM.

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.

Reference Documents

No.	Document	Additional information
1	Notice of Proposed Procurement Solicitation Number: W8485-14DL01/B	Posted to buyandsell.gc.ca on January 31, 2014
2	Amendment 1 Announcement of Industry Day (One-on-One sessions)	Posted to buyandsell.gc.ca on February 13, 2014
3	Amendment 2 Extending closing date to March 4, 2014	Posted to buyandsell.gc.ca on February 13, 2014
4	Amendment 3 Extending closing date to March 10, 2014	Posted to buyandsell.gc.ca on February 27, 2014
5	Amendment 4 Extending closing date to March 17, 2014	Posted to buyandsell.gc.ca on March 5, 2014
6	Amendment 5 Posting of Questions and Responses to the majority of questions asked during the Industry Day	Posted to buyandsell.gc.ca on March 7, 2014
7	Amendment 6 Failed posting of Revised RFP documents to reflect answers to questions posed during the Industry Day	Posted to buyandsell.gc.ca on March 10, 2014
8	Amendment 7 Posting of Revised RFP documents to reflect answers to questions posed during the Industry Day	Posted to buyandsell.gc.ca on March 10, 2014
9	Amendment 8 Extending closing date to March 19, 2014	Posted to buyandsell.gc.ca on March 13, 2014
10	Amendment 9 Posting of additional Responses to Questions	Posted to buyandsell.gc.ca on March 14, 2014

Addendum to the Final Report
June 16, 2014

Addendum to the Fairness Monitor Final Report dated April 10, 2014 pertaining to the competitive procurement process for the F404 PROPULSION GROUP INTERIM SYSTEM SUPPORT procurement undertaken by Public Works and Government Services Canada (PWGSC) through Solicitation Number W8485-14DL01/B.

This Addendum to the Fairness Monitor Final Report covers the period following the conclusion of the evaluation phase and includes contract award and an allowance of time during which bidders could pose questions or request a debriefing. There were two proposals received by the contracting authority in response to this Request for Proposals. The winning bidder was advised by the contracting authority of the success of their bid on March 31, 2014. The unsuccessful bidder was advised on April 4, 2014 that their proposal was evaluated as not having met all of the mandatory technical evaluation criteria.

The unsuccessful bidder submitted written questions and requested a debriefing. The Fairness Monitor reviewed the questions received and the answers provided by the contracting authority. The Fairness monitor also attended the debriefing of the unsuccessful bidder on May 26, 2014. The Fairness Monitor remained in close communication with the contracting authority, until he had received copies of all documents and correspondence that addressed concerns raised by the unsuccessful bidder.

Fairness Monitor Attestation of Assurance

It is our professional opinion that the procurement process we observed for the above F404 PROPULSION GROUP INTERIM SYSTEM SUPPORT procurement, was carried out in a fair, open and transparent manner.

Date: June 16, 2014