Aircraft Maintenance Support Equipment

Introduction

KPMG was engaged on June 4, 2018 as a Fairness Monitor (FM) to observe all stages of the competitive procurement processes associated with the Aircraft Maintenance Support Equipment (AMSE) project.

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

The procurement process involved 3 letters of interest (LOI):

• W8485-19SJ01/A
• W8485-19SJ01/B
• W8485-19SJ01/C

The request for proposal (RFP) W8485-19SJ01/D was issued on March 4, 2021. The RFP process was also observed from a fairness perspective by the FM. Bidders were invited to submit bids for either the simple AMSE or complex AMSE, or both. They were asked to demonstrate corporate experience with specific items of equipment. In addition, bidders were asked to provide certifications and pricing and terms offered.

We hereby submit the final report, covering the activities of the FM commencing with the LOI issued on July 5, 2018 (W8485-19SJ01/A), December 23, 2019 (W8485-19SJ01/B), and April 29, 2020 (W8485-19SJ01/C) on buyandsell.gc.ca continuing through the RFP phase and the evaluation of proposals leading to the identification of the successful proponents.

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.

Project requirement

Canada intends to develop and implement an optimized sustainment solution for the significant number of AMSE items being used to support the Royal Canadian Air Force aircraft fleets. AMSE comprises numerous hydraulic, electrical and mechanical systems which are held and used at Canadian Forces Bases and Wings across Canada, at contractor facilities and on deployments and operations. AMSE has historically been procured through a combination of capital projects, standing offers and miscellaneous procurements, typically without provision for in-service support beyond the scope of any applicable warranties.

The overall objective of the project is to award 2 separate contracts: 1 for the simple AMSE, and the second for the complex AMSE. The 2 contracts will be awarded resulting from 1 RFP posted on buyandsell.gc.ca, through a competitive process. The initial contract periods for both simple and complex AMSE will be 5 years with a potential of 1 2-year optional period.

Attestation of assurance

The FM hereby provides the following unqualified assurance statement concerning the procurement process for the AMSE project. It is our professional opinion that the procurement process we observed or monitored was carried out in a fair, open and transparent manner.

Methodology

KPMG was engaged as an FM to observe the procurement process for the AMSE project issued by Public Works and Government Services Canada (PWGSC) on behalf of Department of National Defence (DND), 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 documents, observed bid solicitation activities, which included the RFP, amendments and questions from and answers provided to bidders, identifying fairness-related matters to the contracting authorities, and ensured that responses and actions were reasonable and appropriate.

Next section of this report identifies the specific activities and observations of the FM in respect to those activities.

Fairness monitoring activities and observations

In this section

• Letter of interest review: W8485-19SJ01/A
• Letter of interest posting: W8485-19SJ01/A
• Industry engagement day and sessions with interested industry
• Letter of interest close: W8485-19SJ01/A
• Letter of interest review: W8485-19SJ01/B
• Letter of interest posting: W8485-19SJ01/B
• Letter of interest close: W8485-19SJ01/B
• Letter of interest review: W8485-19SJ01/C
• Letter of interest posting: W8485-19SJ01/C
• Letter of interest close: W8485-19SJ01/C
• Request for proposal review
• Request for proposal posting
• Evaluation worksheets
• Request for proposal close
• Evaluation instructions
• Compliance review
• Technical evaluation
• Price evaluation and proponent selection

Letter of interest review: W8485-19SJ01/A

KPMG was engaged to begin FM activities commencing with the development of the first LOI W8485-19SJ01/A. Prior to its publication on July 5, 2018 on buyandsell.gc.ca, the FM reviewed the LOI.

Observations

In reviewing the draft LOI documentation, fairness considerations were identified by the FM and discussed with the contracting authority. All of the fairness considerations were addressed in the LOI prior to issuance and none resulted in fairness deficiencies.

Letter of interest posting: W8485-19SJ01/A

The LOI was issued via buyandsell.gc.ca on July 5, 2018. The closing date was October 31, 2018. The LOI was accessible to all potential participants, without unjustified restrictions as to who may participate.

Following the release of the LOI, 2 amendments were released on October 15 and 23, 2018. The first amendment was the presentation used during the industry engagement day and the second amendment provided answers to questions raised by industry. The amendments were reviewed by the FM prior to posting.

Observations

Fairness considerations identified regarding the publication of the LOI were discussed with the contracting authority. All fairness considerations were addressed, and none resulted in fairness deficiencies.

Industry engagement day and sessions with interested industry

An industry engagement day was held on August 28, 2018. 10 companies attended industry day. 7 1-on-1 sessions were held with interested industry on August 28 and 29, 2018. Each session lasted 1.5 hours. The objective of the sessions was to obtain clarifications regarding the questions in the LOI and the materials provided by the respondents. Information discussed was treated as confidential and used to inform project requirements and next steps in the procurement process. The FM attended the 1-on-1 sessions.

Observations

Fairness considerations identified before or during industry engagement day and 1-on-1 sessions were discussed with the contracting authority. No fairness deficiencies were observed.

Letter of interest close: W8485-19SJ01/A

At close of the LOI on October 31, 2018, 9 LOI responses were received.

Observations

Responses were received and handled in accordance with the deadline and requirements stated in the LOI. No fairness deficiencies were observed.

Letter of interest review: W8485-19SJ01/B

Prior to the publication of the second LOI (W8485-19SJ01/B) on December 23, 2019 on buyandsell.gc.ca, the FM reviewed the LOI.

Observations

In reviewing the draft LOI documentation, fairness considerations were identified by the FM and discussed with the contracting authority. All of the fairness considerations were addressed in the LOI prior to issuance and none resulted in fairness deficiencies.

Letter of interest posting: W8485-19SJ01/B

The LOI was issued via buyandsell.gc.ca on December 23, 2019. The closing date was January 17, 2020. The LOI was accessible to all potential participants, without unjustified restrictions as to who may participate.

Following the release of the LOI, 1 amendment was released on January 17, 2020. The amendment provided answers to questions raised by industry. The amendments were reviewed by the FM prior to posting.

Observations

Fairness considerations identified regarding the publication of the LOI were discussed with the contracting authority. All fairness considerations were addressed, and none resulted in fairness deficiencies.

Letter of interest close: W8485-19SJ01/B

Although the LOI was informational in nature, at close of the LOI on January 17, 2020, 1 LOI response was received.

Observations

LOI close was handled in accordance with the deadline and requirements stated in the LOI. No fairness deficiencies were observed.

Letter of interest review: W8485-19SJ01/C

Prior to the publication of the third LOI (W8485-19SJ01/C) on April 29, 2020 on buyandsell.gc.ca, the FM reviewed the LOI.

Observations

In reviewing the draft LOI documentation, fairness considerations were identified by the FM and discussed with the contracting authority. All of the fairness considerations were addressed in the LOI prior to issuance and none resulted in fairness deficiencies.

Letter of interest posting: W8485-19SJ01/C

The LOI was issued via buyandsell.gc.ca on April 29, 2020. The closing date was May 12, 2020. The LOI was accessible to all potential participants, without unjustified restrictions as to who may participate.

Following the release of the LOI, 1 amendment was released on May 11, 2020. The amendment provided answers to questions raised by industry. The amendments were reviewed by the FM prior to posting.

Observations

Fairness considerations identified regarding the publication of the LOI were discussed with the contracting authority. All fairness considerations were addressed, and none resulted in fairness deficiencies.

Letter of interest close: W8485-19SJ01/C

The LOI was informational in nature and no response was required.

Observations

LOI close was handled in accordance with the deadline and requirements stated in the LOI. No fairness deficiencies were observed.

Request for proposal review

The FM reviewed the RFP prior to the publication of the RFP on March 4, 2021 on buyandsell.gc.ca.

Observations

In reviewing the draft RFP documentation, fairness considerations were identified by the FM and discussed with the contracting authority. All fairness considerations identified by the FM were addressed in the RFP prior to issuance. No fairness deficiencies were observed.

Request for proposal posting

The RFP (dated March 3, 2021) was issued via buyandsell.gc.ca on March 4, 2021. The original closing date was April 14, 2021 but subsequent amendments extended the deadline to May 25, 2021. The RFP was accessible to all potential bidders, without unjustified restrictions as to who may participate.

8 amendments were released providing responses to questions received during the tendering period.

Each amendment was reviewed by the FM.

Observations

Fairness considerations identified by the FM with respect to the amendments were discussed with the contracting authority. All fairness considerations identified by the FM were addressed prior to issuance of amendments. No fairness deficiencies were observed.

Evaluation Worksheets

The FM reviewed the evaluation worksheets prior to the start of the bid evaluation process. The evaluation worksheets consisted of the mandatory evaluation criteria, point rated evaluation criteria, and the financial evaluation worksheet.

Observations

Fairness considerations identified by the FM with respect to the evaluation worksheets were discussed with the contracting authority. All fairness considerations identified by the FM were addressed prior to finalization of the documents. No fairness deficiencies were observed.

Request for proposal close

At close of the RFP on May 25, 2021, 3 proposals had been received for the simple AMSE and 3 proposals for the complex AMSE. The FM discussed the manner in which the bid responses to the RFP were received and handled with the contracting authority.

Observations

The bids were received and handled in accordance with the deadline and requirements stated in the RFP. No fairness deficiencies were observed.

Evaluation instructions

Prior to proposal evaluations, the FM reviewed the evaluation guidelines and evaluation methodology.
The FM provided assurance as to the impartiality of evaluation methodology.

Observations

The FM reviewed the evaluation methodology and related requirements. No fairness deficiencies were observed.

Compliance review

Following the RFP closing, the review of the compliance requirements was undertaken by the contracting authority for the proposals received. The bids were reviewed to confirm that the requested certifications and requested information were provided. The technical portion of the bids did not contain any financial information. The financial bids for 2 proposals (both for complex AMSE) had incomplete financial information, or information that was not in the format requested. Accordingly, a compliance assessment report (CAR) was sent to both bidders requesting the missing information to be submitted. Both bidders provided the information in the format requested within the deadline provided by the contracting authority.

Observations

The FM oversaw and reviewed the results of the compliance review. No fairness deficiencies were observed.

Technical evaluation

The technical evaluation meetings were held virtually.

A technical evaluation kick-off meeting was held on May 27, 2021. During the kick-off meeting, each technical bid evaluator was provided a single copy of the technical bid along with the bid evaluation assessment sheet in order to conduct individual reviews. Evaluation guidelines and fairness, openness and transparency principles were explained to the evaluators by the contracting authority.

The evaluation process began with a review of the mandatory criteria. For the simple AMSE, all bidders demonstrated compliance with all mandatory criteria. For the complex AMSE, 1 bidder failed to meet 1 of the mandatory criteria. Accordingly, a CAR was issued to the bidder, requesting the missing information. Its response met the mandatory criteria stated in the RFP. Therefore, all 3 proposals for the simple AMSE and all 3 proposals for the complex AMSE were deemed to be responsive to the mandatory criteria stated in the RFP, thus were eligible to proceed to the evaluation of the point-rated criteria.

Following the individual technical evaluations, the contracting authority held virtual consensus evaluation meetings from June 2 to 28, 2021. Evaluators discussed their individual assessments to arrive at a consensus on the bidders’ technical evaluation.

The FM was present and monitored the entire technical evaluation consensus process. The FM provided assurance that it was undertaken in a consistent fashion and that the results reflect the consensus of all evaluation team members.

Observations

The FM oversaw and reviewed the results of the technical evaluation. No fairness deficiencies were observed.

Price evaluation and proponent selection

The contracting authority verified the pricing details on the forms provided by the bidders. An evaluation summary sheet containing the financial bid details was prepared by the contracting authority and reviewed by the FM.

Observations

The selection of the successful proponent was consistent with the provisions and methodology outlined in the RFP. No fairness deficiencies were observed.

Reference documents

Documents related to solicitation number W8485-19SJ01/A to D are available on CanadaBuys or through the project office.

Addendum to the final report

October 28, 2021

Addendum to the FM final report dated August 17, 2021 pertaining to the competitive procurement process associated with the Aircraft Maintenance Support Equipment project, issued by PWGSC on behalf of the DND, as a result of solicitation W8485-19SJ01/D.

This addendum to the FM final report covers the period following the conclusion of the evaluation phase.

Activities Related to Contract Award and Debriefings

3 proposals were received for each of the simple and complex Aircraft Maintenance Support Equipment by PWGSC in response to the RFP. The successful bidder for each contract was notified of contract award on September 9th, 2021. The FM reviewed the contract award letters and the regret letters prior to them being sent to the successful and unsuccessful bidders. No fairness deficiencies were observed.

There were 3 requests for debriefings. The FM reviewed all correspondence with bidders in relation to the debriefings, and also attended the debriefing sessions with bidders. No fairness deficiencies were observed.

Attestation of Assurance

The FM hereby provides the following unqualified assurance statement concerning the Aircraft Maintenance Support Equipment project procurement process.

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