Remotely Piloted Aircraft System for the National Aerial Surveillance Program

1. Attestation of assurance

The Fairness Monitor hereby provides the following unqualified assurance statement concerning the competitive selection process for the Remotely Piloted Aircraft System (RPAS) for the National Aerial Surveillance Program undertaken by Transport Canada, commencing with the initial Letter of Interest and continuing through to the close of the Request for Proposal (RFP) evaluation phase.

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

2. Project requirement

Samson & Associates was engaged as a Fairness Monitor (FM) on December 8, 2015 to observe the competitive acquisition process for the RPAS for the National Aerial Surveillance Program, undertaken by Public Works and Government Services Canada (PWGSC) on behalf of Transport Canada (TC) as solicitation number T8493-150035. Samson & Associates is an independent third party with respect to this activity.

This report covers the activities of the FM, commencing with the posting of the initial Letter of Interest (LOI) and continuing through to the close of the RFP evaluation phase on September 9, 2020.

TC requires an RPAS that is capable of operation beyond visual line of sight which will be used by TC as a proof of concept to evaluate RPAS technology as a supplement to the capabilities of manned surveillance aircraft operated under the NASP. The RPAS must include a Remotely Piloted Aircraft (RPA) or Optionally Piloted Aircraft; sensor equipment to be carried concurrently as payload on board the RPA; communication links; and the RPAS mission control station and launch and recovery equipment.

We reviewed all of the information provided and observed all relevant activities.

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.

3. Fairness monitoring engagement and observations

In accordance with the terms of our engagement, we familiarized ourselves with the relevant documents, observed procurement activities (industry engagement and related one-on-one sessions, the LOI and RFP documents and related questions and answers), identifying fairness-related matters to the contracting and technical authorities, and ensuring that responses and actions were reasonable and appropriate.

3.1 Activities and observations: industry engagement

The consultative process began on March 9, 2016 when PWGSC, on behalf of TC, posted an LOI, Solicitation number T8493-150035/A, to initiate engagement with industry. The LOI invited interested suppliers to participate in the engagement activities of a consultative process. Interested suppliers were required to register as participants in the process.

The consultative process would conclude when an official RFP is issued, or when Canada advises participants that the process has concluded.

The LOI informed industry of the various planned phases of the competitive acquisition process:

• Phase 1—LOI - initial contact with industry
• Phase 2—industry day session
• Phase 3—one-on-one meetings
• Phase 4—draft RFP
• Phase 5—second round industry engagement
• Phase 6—final RFP

LOI T8493-150035/A closed on March 23, 2016.

On August 24, 2016 Canada posted a second LOI, T8493-150035/B, providing a summary of feedback and outcomes of the industry consultative process that had taken place under LOI T8493-150035/A.

This second LOI updated and provided feedback to industry following the industry one-on-one consultation sessions that took place with potential suppliers between April 25 and May 19, 2016. It also invited additional questions and comments.

The highlights of the initial consultation process were:

• 15 companies provided an initial written response to the questions for industry before industry day or their one-on-one meeting
• April 27, 2016: Canada held an industry day which was open to all participants. 42 individuals representing 30 of the participant companies were in attendance. Canada provided a record of discussion and list of attendees to all participants
• April 25 to May 19, 2016: one-on-one meetings were open to participants that are potential prime bidders (RPAS suppliers) and potential major subcontractors to a prime. Canada held 18  one-on-one meetings with 23 companies. Canada provided a record of discussion to the individual companies of each meeting for their review

6 companies provided a final written response after their one-on-one meeting, as applicable to reflect any changes or additional feedback to their initial written response.

LOI T8493-150035/B closed on September 8, 2016.

On September 24, 2018, Canada notified industry participants that the potential acquisition of a surplus RPAS from the Federal Republic of Germany which meets the original mandatory requirements was being explored. On June 3, 2019, Canada notified industry participants that the option exploration was complete, and that Canada had determined to continue with industry engagement for an open competitive process.

On June 11, 2019, Canada posted a third LOI with a draft RFP under solicitation number T8493-150035/C. In addition to the draft RFP the LOI provided a set of questions for feedback. The LOI invited potential suppliers to provide feedback on the draft RFP and opened up one-on-one meetings with Canada’s RPAS project team to potential bidders upon request. The purpose of the LOI was to identify if the requirements of the draft RFP were understood and could be met by industry within the stated budget.

All information previously provided by Canada was posted publicly and registration to participate in this stage of the process was not required. Previously registered participants were informed that the email distribution list for registered participants would no longer be used for communication from Canada and to visit buyandsell.gc.ca regularly.

The engagement activities gave industry the forum to provide their input into the development of the final RFP and make known any issues, comments, suggestions and questions for Canada to consider when finalizing the RFP for solicitation.

Canada received 8 written responses to the questions for feedback. Respondents included RPAS manufacturers and sensor and integration companies. 7 one-on-one meetings were held from August 6-12, 2019 with Canada’s RPAS project team and potential bidders. Some potential bidders included subcontractors at the meeting. Canada provided a record of discussion to the individual companies of each meeting for their review.

There were 7 amendments issued during the process to respond to questions. Amendment #7 provided a summary and outcomes of the consultative process.

LOI T8493-150035/C closed on December 17, 2019.

The overall consultative process concluded with the publication of the formal RFP on January 31, 2020 under Solicitation # T8493-150035/D.

The FM observed and reviewed all related supporting documentation throughout this phase and participated in the industry day and one-on-one sessions.

3.2 Activities and observations: request for proposal

The final RFP was posted on January 31, 2020 under Solicitation # T8493-150035/D. The initial closing date of March 9, 2020 was extended through amendments until July 2, 2020. There was a total of 18 amendments issued and 66 questions were received and responded to. The FM reviewed the RFP documents and all the amendments prior to posting, in addition to all Questions and Answers posted.

4 bids were submitted in response to the RFP.

3.3 Activities and observations: request for proposal evaluation

In accordance with the RFP documents, the Phased Bid Compliance Process (PBCP) was used in this evaluation. This included the use of a Compliance Assessment Report (CAR) sent to the bidders, identifying any eligible mandatory criteria for which their bid did not demonstrate compliance. Bidders were given an opportunity to submit additional or new information in order to demonstrate compliance. The basis of selection was highest combined rating of technical merit (60%) and price (40%).

Evaluator training was held on July 8, 2020 with both the FM and the Chartered Accountant (CA) in attendance.

2 proposals required clarification regarding conditions in their bids prior to being evaluated.

Letters requesting clarification were sent to the 2 bidders on July 16, 2020. Responses were received on July 19 and 20, 2020. After PWGSC reviewing clarification from the 2 bidders, 1 bid was deemed non-responsive due to conditions included in their bid. The remaining 3 bids continued to the PBCP mandatory criteria review, which was held on July 27, 2020, with the CA and FM in attendance. Only 1 bid demonstrated compliance with all mandatory criteria.

CAR letters were sent to all bidders. The FM reviewed the letters before they were sent. Both bidders who had not met the requirements responded with new or additional information on August 12, 2020. The evaluation of the new information was conducted on August 25, 2020, with the CA and FM in attendance. After evaluation for the 2 bidders, 1 demonstrated compliance to all mandatory criteria, and 1 did not and accordingly, was deemed non-compliant.

The 2 remaining bids that passed the mandatory technical evaluation continued to the point-rated evaluation. The point-rated evaluation was conducted on September 8 and 9, 2020, with the CA and FM in attendance. The bids were ranked in accordance with the basis of selection and the highest ranked bidder has been recommended to TC for contract award.

4. Reference documents

The documents related to solicitation # T8493-150035 are available on buyandsell.gc.ca and/or through the project office.

5. Addendum to final report, February 10, 2021

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

5.1 Fairness monitoring activities related to contract award and debriefings

There were 4 bids submitted in response to the Request for Proposal. 2 bids were deemed responsive. The successful bidder was announced, and the contract awarded on December 7, 2020. Unsuccessful bidders were advised of the results on December 10, 2020.

The information set out in the letters of December 10, 2020 was provided to bidders as a debriefing regarding the outcome of this solicitation. The letter provided each bidder with their technical and financial evaluation scores, if applicable, and those of the selected bidder. Each non-responsive bidder was also provided with information on which requirement(s) their bid did not comply with.

Where requested, additional debriefing material was provided to bidders. Only 1 firm requested additional information and it was provided on December 22, 2020. The same firm requested additional information and it was provided on January 21, 2021. The debriefing process concluded January 22, 2021.

The FM reviewed the letters and debriefing information shared with each bidder.

5.2 Attestation of assurance

The fairness monitor hereby provides the following unqualified assurance statement concerning the competitive selection process for the RPAS for the National Aerial Surveillance Program.

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