Logistics Vehicle Modernization: Review and refine requirements

On this page

• Introduction
• Attestation of assurance
• Project requirement
• Objectives of the fairness monitor assignment and methodology
• Reference documents

Introduction

HKA Global (Canada), Inc. was engaged as a fairness monitor (FM) on September 10, 2014 to observe the competitive procurement process for the Department of National Defence Logistics Vehicle Modernization (LVM) project. This competitive procurement process is being undertaken by Public Works and Government Services Canada, through a letter of interest (LOI) solicitation number W847L-150067/A, a draft invitation to qualify (ITQ) solicitation number W847L-190122/A, a final ITQ solicitation number W847L-190122/B and a review and refine requirements (RRR) solicitation number W8847L-190122/C. HKA Global (Canada), Inc. is an independent third party with respect to this activity.

We reviewed all the information provided and observed or monitored all relevant activities.

We hereby submit our RRR report covering our activities chronologically from September 10, 2014 through to the release of the request for proposal (RFP) to the qualified suppliers (QS) on December 9, 2021.

This report includes:

• our attestation of assurance
• a summary of the scope and objectives of our assignment
• the methodologies applied
• the details of our activities, including any relevant findings from the activities undertaken

Attestation of assurance

The FM hereby provides the following unqualified assurance statement concerning the LVM project.

It is our professional opinion that the RRR stage of the competitive procurement process that we observed or monitored was conducted in a fair, open, and transparent manner.

Original signed by:

Project requirement

The LVM project is a capability replacement project focusing on ensuring that the Canadian Armed Forces will have enough lift and logistics capability to operate anywhere it will deploy, and to train in Canada. The LVM project will procure fewer vehicles than the current fleet, while still achieving the required lift and logistics capability through an increase in vehicle cargo capacity, the introduction of sea containers and modularity, and an increased use of large cargo trailers. The LVM project will procure new light and heavy logistics vehicle capability with improved:

• payload
• functionality
• mobility
• sustainability
• protection relative to existing vehicle fleets

Acquisitions under consideration include, but are not limited to new:

• logistics vehicles
• trailers
• specialized vehicle mounted modules
• special containers
• bulk material handling systems
• material handling equipment

Acquisitions will also include initial in service and logistics support.

The scope of contract(s) resulting from any subsequent solicitation may include:

• vehicles, modules, trailers and associated equipment
• operator and technical training
• installation of vehicle and module communication systems cabling supplied by Canada
• an initial period of sustainment for the new fleets
• provision of in service support necessary to enable achievement of full operational capability of the new fleets

Canada’s Industrial and Technological Benefits Policy (ITB), including the value proposition will apply to the project.

Objectives of the fairness monitor assignment and methodology

The overall objective was to provide independent monitoring of the procurement process and to submit any fairness-related comments to project officials, as early as possible, so that appropriate action could be taken to address the comments before fairness was impacted. The director, Fairness Monitoring Program, would be advised of any fairness- related concerns that were not addressed promptly. At the conclusion of the procurement process, an assurance statement as to its fairness would be provided.

In this section

• Industry engagement stage
• Invitation to qualify stage
• Invitation to qualify evaluation
• Review and refine requirements stage

Industry engagement stage

On October 17, 2014, we reviewed the LOI that had been posted on buyandsell.gc.ca on August 14, 2014. No fairness deficiencies were identified.

We reviewed amendments 1 to 10 to the LOI on the dates shown below:

• amendment 1: October 22, 2014
• amendment 2: April 13, 2015
• amendment 3: December 9, 2015
• amendment 4: August 17, 2016
• amendment 5: November 22, 2016
• amendment 6: November 22, 2016
• amendment 7: May 2, 2017
• amendment 8: November 22, 2017
• amendment 9: August 15, 2018
• amendment 10: September 5, 2018

The amendments provided updated versions of the LOI and associated technical requirements and ITB requirements. Fairness related comments were provided and appropriate action was taken by project authorities.

We observed one on one meetings with vendors on the dates shown below:

• November 12, 2014
• June 16 and 22, 2015
• March 1 and May 24, 26 and 27, 2016
• May 30, June 13 and 14 and October 5, 2017
• February 2 and 14, March 8 and 16, April 11, May 29, June 6, August 13 and 30, and October 15 and 18, 2018
• January 22 and 23, 2019

No fairness deficiencies were identified.

Invitation to qualify stage

On March 7, 2019 we reviewed a draft ITQ. Fairness related comments were provided and appropriate action was taken by project officials.

The draft ITQ was posted on buyandsell.gc.ca on March 18, 2019.

During the period March 26 to April 5, 2019, we reviewed questions from suppliers and proposed answers. On March 27 and April 5, 2019, we reviewed amendments 1 and 3 to the draft ITQ. Fairness related comments were provided on the proposed answers to suppliers’ questions. Appropriate action was taken by project officials which was reflected in amendments 1 and 3. We did not review amendment 2 which served to extend the closing date of the draft ITQ from April 4 to April 9, 2019.

On April 26, 2019 we reviewed the draft final ITQ. Fairness related comments were provided and appropriate action was taken by project officials.

The ITQ was published on buyandsell.gc.ca on April 30, 2019.

Invitation to qualify evaluation

On May 9, 2019, we reviewed the ITQ evaluation handbook and provided fairness related comments to the contracting authority. Appropriate actions were taken to address these comments.

At the evaluation kick off meeting on May 17, 2019, we received confirmation that all evaluators had signed the evaluator instructions and acknowledgement form which contained a declaration that no conflict of interest situation existed between the evaluators and the bidders and the evaluator’s engagement to keep confidential the information contained in the bid and the evaluation results.

On May 17, 2019, we observed the evaluation kick off briefing where the project authority and the contracting authority provided evaluation guidelines based on the ITQ evaluation handbook. On the same day we observed the evaluation consensus meeting of the evaluation team for the mandatory criteria at which pass/fail results and the rationales for the consensus decisions and the resulting evaluation report were agreed. No fairness related deficiencies were identified.

On May 21, 2019, we reviewed the evaluator instructions and acknowledgement form signed by all evaluators. No fairness related deficiencies were identified.

On May 28, 2019, we reviewed a clarification request to 1 of the bidders. On June 11, 2019, we reviewed a follow-on clarification question to the same bidder. No fairness related deficiencies were identified.

On June 19 and July 4, 2019, we reviewed the draft letters informing the 8 bidders of the results of the evaluation, which were issued on July 4, 2019. Seven bidders were qualified. The list of qualified suppliers was published buyandsell.gc.ca under the file number W847L-190122/C on July 8, 2019. No fairness related deficiencies were identified. No debriefing meetings were requested by any of the 8 bidders.

Review and refine requirements stage

On July 17, 2019, we received a copy of the draft rules of engagement for the RRR stage and provided fairness related comments on it to the contracting authority. We provided further comments on July 29 and 30, 2019. All comments were addressed appropriately.

On August 16, 19 and 20, and October 4, 2019, we monitored teleconference one-on-one kickoff meetings with the QS and provided fairness related comments to the contracting authority. All comments were addressed appropriately.

During the period September 6 to 19, 2019, we provided fairness related comments to the contracting authority concerning the upcoming one-on-one meetings with QS. All comments were addressed appropriately.

During the period October 7, 2019 to December 3, 2021, we carried out the following activities:

• observed or monitored one-on-one meetings with QS
• reviewed written communications and monitored oral communications with QS
• monitored site visits
• reviewed draft parts of the proposed RFP prior to release to QS
• reviewed questions and comments from QS and answers and comments provided by Canada
• reviewed questions and comments from Canada and answers and comments provided by QS
• monitored presentations to QS on the LVM project

Fairness related comments were provided to the contracting authority and appropriate action was taken.

Canada informed the QS that the RFP W847L-190122/D was released on December 9, 2021 and provided instructions as to how to download the RFP.

Reference documents

Documents related to the LVM solicitations are available through the LVM project office.