Canadian Coast Guard Engineering Support Services

Introduction

Raymond Chabot Grant Thornton Consulting Inc. (RCGT) was engaged on June 29, 2020 as a fairness monitor (FM) to observe the Canadian Coast Guard (CCG) Engineering Support Services (ESS) procurement process, issued by Public Works and Government Services Canada (PWGSC), on behalf of the CCG, under solicitation F7044-190233/A, F7044-190233/B, and F7044-190233/C. RCGT is an independent third party with respect to this activity.

RCGT reviewed all the information provided and observed all relevant activities of the procurement process, as identified in section fairness monitoring engagement and methodology and activities and observations of this report. We hereby submit the FM final report, covering the activities of the FM, from July 9, 2020 through March 29, 2022.

This report includes:

• our attestation of assurance
• a summary of the scope and objectives of our assignment
• relevant observations from the activities undertaken

Attestation of assurance

Based on the activities performed and described in this report, the FM hereby provides the unqualified assurance statement below concerning the procurement process for the CCG ESS project.

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

Original signed by:

Project requirement

The CCG currently operates a fleet of over 100 vessels which it strives to keep operational so that it can deliver on its mandate and the various programs that exist to support that mandate. To support this effort, CCG conducts midlife modernizations, refits, and vessel life extensions to keep its fleet operational, even as vessels age.

The objective of the procurement is to secure additional support from naval architecture and marine engineering firms to support integrated technical services – marine engineering system engineers with the engineering and design work for midlife modernizations, major refits, and vessel life extensions. The selected contractor(s) will be responsible for engineering and design and ensures that integration of all vessel systems and will generate specifications and design drawings to be used by shipyards to conduct modification work.

Fairness monitoring engagement and observations

RCGT was engaged as an FM to observe the procurement process for the CCG ESS, and to attest to the fairness, openness and transparency of this monitored activity.

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

In accordance with the terms of our engagement, we:

• reviewed documents provided by the contracting authority (CA)
• monitored communications with proponents provided by the CA
• attended meetings that the CA requested our presence at
• identified any potential fairness-related matters to the CA
• ensured that responses and actions were reasonable and appropriate

This report is based on information made available to us by the CA from July 9, 2020 to March 29, 2022.

Activities and observations

In this section

• Letter of interest: Request for information – F7044-190233/A
• Letter of interest: Request for information – F7044-190233/B
• Request for proposal phase: F7044-190233/C
• Evaluation phase

Letter of interest: Request for information – F7044-190233/A

The following activities were performed by the FM during this phase:

• on July 9, 2020, reviewed the documentation to be posted on buyandsell.gc.ca, specifically the letter of interest (LOI) and amendment 1
• from July 20, 2020 to July 30, 2020, attended 16 one-on-one meetings with potential bidders on the matters outlined in the LOI

As RCGT was not engaged until June 29, 2020 and received its first communication from the CA on July 9, 2020, the FM reviewed the LOI and amendment 1 after being published on buyandsell.gc.ca. RCGT did not identify any fairness issues with the published information.

The LOI was posted on buyandsell.gc.ca on May 26, 2020; and the LOI closed on August 14, 2020 at 14:00 Eastern daylight time.

In accordance with the terms of our engagement, we familiarized ourselves with the relevant documents and observed the industry engagement phase. The FM did not identify any fairness-related matters. All minor comments communicated by the FM throughout the industry engagement phase were appropriately resolved by the CA.

Letter of interest: Request for information – F7044-190233/B

The following activities were performed by the FM during this phase:

• on November 23, 2020, reviewed the documentation to be posted on buyandsell.gc.ca, specifically the updated LOI
• from December 8, 2020 to January 5, 2021, attended 17 one-on-one meetings with potential bidders on the matters outlined in the updated LOI

The LOI was posted on buyandsell.gc.ca on November 25, 2020; and the LOI closed on May 28, 2021 at 14:00 Eastern daylight time.

In accordance with the terms of our engagement, we familiarized ourselves with the relevant documents and observed the industry engagement phase. RCGT noted that 5 amendments were posted on buyandsell.gc.ca between February 25, 2021, to May 18, 2021. For 4 of these 5 amendments, RCGT had not reviewed the proposed amendments to the LOI prior to being posted. Notwithstanding the previous, the FM did not identify any fairness-related matters with these amendments, nor any of the information published or discussed by representatives of PWGSC or the CCG. All minor comments communicated by the FM throughout the industry engagement phase were appropriately resolved by the CA.

Request for proposal: F7044-190233/C

The following activities were performed by the FM during this phase:

• from April 24, 2021, to August 11, 2021, a review of the request for proposal (RFP) was performed and questions, comments and identified issues were discussed
• RCGT received the first draft of the RFP on April 24, 2021
• the RFP was posted on buyandsell.gc.ca on August 27, 2021
• 11 amendments to the RFP were issued, from September 21, 2021, to November 25, 2021, respectively
• a review of all questions and answers responses and the corresponding RFP amendments was conducted

The RFP closed on December 3, 2021, at 14:00 Eastern standard time.

In accordance with the terms of our engagement, we familiarized ourselves with the relevant documents, observed the activities above, identifying fairness-related matters to the CA and ensured that responses and actions were reasonable and appropriate

The FM provided to the CA minor comments to the proposed RFP document and related amendments which were appropriately resolved by the CA. There are no unresolved matters related to the RFP phase, nor any observations to report which would impact our attestation.

Evaluation phase

The following activities were performed by the FM during this phase:

• attended evaluation consensus meetings held on January 17, 21, 25, 27, and February 1, 2, and 10, 2022 and:
  • observed the evaluation process including the consensus meetings of the evaluation team
  • reviewed documentation related to the evaluation results
  • reviewed correspondence issued to proponents

The evaluators performed individual evaluations first and then conducted a series of meetings to come to a consensus score. The meetings were mediated by the technical authority with support from the CA.

A total of 8 bids were received. During the phased bid compliance process phase 1, 6 of those bidders did not fully comply with the financial requirements. Following the submission of additional supporting documentation, 4 of the 6 were deemed compliant and 2 were deemed non-compliant.

During the phased bid compliance process phase 2, 5 of the 6 bids did not fully meet the mandatory requirements. Following the submission of additional documentation, all 5 were deemed compliant. A total of 6 were deemed compliant.

All 6 bids were subsequently evaluated for the financial criteria and were deemed financially compliant. Points were awarded based on a formula. Using the results, the successful bidders were identified.

All comments or issues identified by RCGT throughout activities monitored or observed were resolved by the CA. There are no unresolved matters, nor any observations to report which would impact our attestation.

Reference documents

The documents related to solicitation number F7044-190233/A. F7044-190233/B and F7044-190233/C are available on CanadaBuys or through the project office.

Addendum to the final report

May 18, 2022

This addendum covers the period following the conclusion of the evaluation phase including contract award and debriefings.

RCGT reviewed all the information provided and observed or monitored all relevant activities of the contract award and debriefing activity, as identified in this report. We hereby submit the FM’s addendum to the final report, which is based on information made available to us by the CA from April 4, 2022 to April 28, 2022.

In accordance with the terms of our engagement, we:

• reviewed documents provided by the CA
• monitored communications with proponents provided by the CA
• attended meetings that the CA requested our presence at
• identified any potential fairness-related matters to the CA
• ensured that responses and actions were reasonable and appropriate

The following activities were performed or monitored during this phase:

• on April 6, 2022, a review of 3 contract award letters and 5 regret letters to be issued to bidders was performed:
  • no fairness issues were identified
• on April 25, 2022, attended 1 debriefing session
  • no other requests for debriefing were received
  • no fairness issues were identified

There are no unresolved matters related to the contract award and debriefing activity, nor any observations to report which would impact our attestation.

RCGT reserves the right, but will be under no obligation, to review or revise the report if further information that may impact our observations becomes known to us after the date of this report.

Attestation of assurance

Based on the activities performed or monitored and described in this report, the FM hereby provides the unqualified assurance statement below concerning the contract award and debriefing activity for the CCG ESS.

It is our professional opinion that the contract award and debriefing activity that we observed or monitored was carried out in a fair, open and transparent manner.

Original signed by: