Amazon COVID-19 supply distribution deal: Committee of the Whole—July 8, 2020

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Context

On April 1, 2020 the Government of Canada entered into an agreement with Amazon to help manage the distribution of personal protective equipment (PPE) and supplies purchased by the government, to support the COVID-19 response. Amazon is providing these services to Canadians at cost, without profit until June 30.

Suggested response

If pressed on the rationale for Amazon:

If pressed on Public Health Agency of Canada’s (PHAC) role:

If pressed on Amazon’s role:

If pressed on Canada Post and Purolator’s role:

If pressed on the letter of interest (LOI) / request for information (RFI) for extended logistics services in Canada:

If pressed on the health and safety of workers:

Background

On April 1, 2020, PSPC, on behalf of PHAC, signed a $5 million contract with Amazon to get health care professionals the PPE and supplies they need to protect themselves and continue caring for Canadians during the COVID-19 pandemic. PHAC will maintain oversight of all orders from provinces and territories to ensure supplies are distributed appropriately.

The delivery of the PPE and supplies ordered is being done by Purolator and Canada Post. PPE and supplies were initially warehoused at the facility of Maritime Ontario in Brampton, where the technology of Amazon has been installed for the orders of provincial and territorial health authorities. Maritime Ontario is an on-going key sub-contractor of Canada Post. As Maritime Ontario has started running out of space to warehouse the PPE ordered for PHAC, other facilities have also started being used.

Amazon is offering their assistance to Canada for no profit until June 30, 2020. Fees beyond June 30, 2020 will be less than Amazon’s standard commercial fees. The bulk of the $5 million announced is to pay Purolator or Canada Post for transportation charges.

Pricing for after June 30 with Amazon was anticipated to be finalized by May 31, but Amazon has requested additional time to validate costs to date. Proposed revised pricing is anticipated by June 5.

Amazon has agreed that the current price structure will remain in place until such a time that a new one has been agreed upon.

Furthermore, Amazon has reiterated its intention to continue to offer the service at cost, without profit for the duration of the agreement.

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