March 28, 2014 – Gatineau, Quebec – Public Works and Government Services Canada
On March 28, 2014, the Government of Canada awarded a contract to Raytheon Canada Limited, for the operation and maintenance of the North Warning System.
Raytheon presented the lowest-cost compliant bid and will provide the greatest economic benefits for the Inuit. The contractor proposed achieving Inuit Benefits and projected targets towards jobs and growth for the Inuit well exceeding the 13 per cent requirement set out in the Request for Proposals.
This contract was awarded through an open, fair, transparent and competitive process that included structured and constructive engagement for more than two years with the three relevant Inuit Land Claim Authorities, as well as with industry.
Canadian taxpayers will also benefit from this agreement, at a savings of $13.8 million per year, as compared to the previous contract.
The North Warning System is comprised of 47 unmanned long- and short-range radar stations along the Arctic coast from Alaska to Labrador. The contract period is for five years, effective April 1, 2014.
The contractor’s obligations to provide Inuit Benefits under the three relevant Comprehensive Land Claims Agreements were strengthened and improved in the following ways:
- The Inuit Benefits, exclusive of profits, must be equal to 13 per cent or more of the value of the firm, fixed price portion of the contract. The previous contract was to achieve 10 per cent for both the firm, fixed price and additional work requests.
- A mandatory minimum of 20 per cent of the salaries of the contractor’s workforce must be for Inuit beneficiaries. This was not mandatory in the previous contract.
- A minimum of three Inuit beneficiaries must be in a full-time supervisory or management position, or be full time supervisors or management trainees. This was not mandatory in the previous contract.
- The company must hold at least one annual conference intended to train Inuit beneficiaries and subcontractors to properly and effectively bid for government- and contractor-issued projects. This was not mandatory in the previous contact.
- To build upon the social and economic benefits of the previous contract, a number of structured and constructive engagements were undertaken with Inuit Land Claim Authorities under the affected Comprehensive Land Claims Agreements. These included consultations with: Inuvialuit Regional Corporation, representing the Inuvialuit Final Agreement; Labrador Inuit Development Corporation, representing the Nunatsiavut Agreement; and Nunavut Tunngavik Inc., representing the Nunavut Land Claims Agreement.
- The North Warning System is used to ensure Canadian sovereignty in the North, and to support North American air surveillance and air defence operations under the North American Aerospace Defense Command (NORAD) agreement. This is done by gathering information about any airborne activity within the radar coverage area, and is remotely monitored and controlled by the Canadian Air Defence Sector, located at CFB North Bay, Ontario.
Office of the Honourable Diane Finley
Public Works and Government Services Canada
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