Nunavut Land Claims Agreement

ARTICLE 24

GOVERNMENT CONTRACTS

PART 1
DEFINITIONS

24.1.1
In this Article:

"Government" means the Government of Canada or the Territorial Government;

"government contract" means a contract, other than a contract for government employment as defined in Article 23, between the Government and a party other than Government or any other government for procurement of goods or services, and includes

(a)
contracts for the supply of goods,

(b)
construction contracts,

(c)
contracts for the supply of services, and

(d)
leases;

"Government of Canada" means all federal departments and departmental corporations listed in Schedules I and II, and parent Crown Corporations listed in Schedule III, Part I of the Financial Administration Act RSC 1985, Chapter F-11;

"Inuit firm" means an entity which complies with the legal requirements to carry on business in the Nunavut Settlement Area, and which is

(a)
a limited company with at least 51% of the company's voting shares beneficially owned by Inuit,

(b)
a cooperative controlled by Inuit, or

(c)
an Inuk sole proprietorship or partnership; "invite" means to call publicly for bids;representative level of employment means a level of employment in the Nunavut Settlement Area that reflects the ratio of Inuit to the total population of the Nunavut Settlement Area;

"solicit" means to request bids from a limited number of businesses based on some form of prequalification;

"Territorial Government" means all territorial government departments and all public agencies defined by the Financial Administration Act, S.N.W.T. 1987 (1), c.16, Part IX, and Schedules A, B, and C, but excluding the Northwest Territories Power Corporation.

PART 2
OBJECTIVE

24.2.1
The Government of Canada and the Territorial Government shall provide reasonable support and assistance to Inuit firms in accordance with this Article to enable them to compete for government contracts.

PART 3
PROCUREMENT POLICIES

24.3.1 - Government of Canada Policies
Consistent with this Article, the Government of Canada shall develop, implement or maintain procurement policies respecting Inuit firms for all Government of Canada contracts required in support of its activities in the Nunavut Settlement Area.

24.3.2
The Government of Canada shall develop or maintain its procurement policies in close consultation with the DIO, and shall implement the policies through legislative, regulatory or administrative measures.

24.3.3
The measures referred to in Section 24.3.2 shall be binding on the Government ofCanada, and shall be given effect:

(a)
in all cases, no later than one year following the date of the ratification of theAgreement; and

(b)
with respect to survey contracts, prior to the award of survey contracts arising from Article 19.

24.3.4 - Territorial Government Policies
Subject to Section 24.9.2, the Territorial Government shall maintain preferential procurement policies, procedures and approaches consistent with this Article for all Territorial Government contracts required in support of Territorial Government activities in the Nunavut Settlement Area. The Territorial Government will consult with the DIO when developing further modifications to its preferential policies, procedures and approaches in order that the provisions of this Article may be met.

24.3.5 - Adaptability Over Time
Procurement policies and implementing measures shall be carried out in a manner that responds to the developing nature of the Nunavut Settlement Area economy and labour force. In particular, the policies shall take into account the increased ability, over time, of Inuit firms to compete for and to successfully complete government contracts.

24.3.6 - Policy Objectives
Procurement policies and implementing measures shall reflect, to the extent possible, the following objectives:

(a)
increased participation by Inuit firms in business opportunities in the NunavutSettlement Area economy;

(b)
improved capacity of Inuit firms to compete for government contracts; and

(c)
employment of Inuit at a representative level in the Nunavut Settlement Area work force.

24.3.7 - Consultation
To support the objectives set out in Section 24.3.6, the Government of Canada and the Territorial Government shall develop and maintain policies and programs in close consultation with the DIO which are designed to achieve the following objectives:

(a)
increased access by Inuit to on-the-job training, apprenticeship, skill development, upgrading, and other job related programs; and

(b)
greater opportunities for Inuit to receive training and experience to successfully create, operate and manage Northern businesses.

PART 4
BID INVITATION

24.4.1
In cooperation with the DIO, the Government of Canada and the Territorial Government shall assist Inuit firms to become familiar with their bidding and contracting procedures, and encourage Inuit firms to bid for government contracts in the Nunavut Settlement Area.

24.4.2
In inviting bids on government contracts in the Nunavut Settlement Area, the Government of Canada and the Territorial Government shall provide all reasonable opportunities to Inuit firms to submit competitive bids, and, in doing so, shall take, where practicable and consistent with sound procurement management, the following measures:

(a)
set the date, location, and terms and conditions for bidding so that Inuit firms may readily bid;

(b)
invite bids by commodity groupings to permit smaller and more specialized firms to bid;

(c)
permit bids for goods and services for a specified portion of a larger contract package to permit smaller and more specialized firms to bid;

(d)
design construction contracts in a way so as to increase the opportunity for smaller and more specialized firms to bid; and

(e)
avoid artificially inflated employment skills requirements not essential to the fulfilment of the contract.

24.4.3
Where the Government of Canada or the Territorial Government intends to invite bids for government contracts to be performed in the Nunavut Settlement Area, it shall take all reasonable measures to inform Inuit firms of such bids, and provide Inuit firms with a fair and reasonable opportunity to submit bids.

PART 5
BID SOLICITATION

24.5.1
Where the Government of Canada or the Territorial Government solicits bids for government contracts to be performed in the Nunavut Settlement Area, it shall ensure that qualified Inuit firms are included in the list of those firms solicited to bid.

24.5.2
Where an Inuit firm has previously been awarded a government contract, and has successfully carried out the contract, that Inuit firm shall be included in the solicitation to bid for contracts of a similar nature.

24.5.3
In the absence of competitive bidding for government contracts, qualified Inuit firms will be given fair consideration.

PART 6
BID CRITERIA

24.6.1
Whenever practicable, and consistent with sound procurement management, and subject to Canada's international obligations, all of the following criteria, or as many as may be appropriate with respect to any particular contract, shall be included in the bid criteria established by the Government of Canada for the awarding of its government contracts in the Nunavut Settlement Area:

(a)
the existence of head offices, administrative offices or other facilities in theNunavut Settlement Area;

(b)
the employment of Inuit labour, engagement of Inuit professional services, or use of suppliers that are Inuit or Inuit firms in carrying out the contracts; or

(c)
the undertaking of commitments, under the contract, with respect to on-the- job training or skills development for Inuit.

24.6.2
Whenever practicable and consistent with sound procurement management, and subject to Canada's international obligations, all of the following criteria, or as many as may be appropriate with respect to any particular contract, shall be included in the bid criteria established by the Territorial Government for the awarding of its government contracts in the Nunavut Settlement Area:

(a)
the proximity of head offices, administrative offices or other facilities to the area where the contract will be carried out;

(b)
the employment of Inuit labour, engagement of Inuit professional services, or use of suppliers that are Inuit or Inuit firms in carrying out the contract; or

(c)
the undertaking of commitments, under the contract, with respect to on-the- job training or skills development for Inuit.

PART 7
LIST OF INUIT FIRMS

24.7.1
The DIO shall prepare and maintain a comprehensive list of Inuit firms, together with information on the goods and services which they would be in a position to furnish in relation to government contracts. This list shall be considered by the Government of Canada and the Territorial Government in meeting their obligations under this Article.

PART 8
EVALUATION AND MONITORING

24.8.1
The Government of Canada and the Territorial Government, in cooperation with the DIO, shall take the necessary measures to monitor and periodically evaluate the implementation of this Article.

PART 9
IMPLEMENTATION

24.9.1
The objectives of this Article shall be achieved through the allocation or re- allocation of government expenditures without imposing additional financial obligations on the Government of Canada or the Territorial Government.

24.9.2
The Territorial Government will carry out the terms of this Article through the application of Territorial Government preferential contracting policies, procedures and approaches intended to maximize local, regional and northern employment and business opportunities.

24.9.3
The Government of Canada, the Territorial Government and the DIO shall conduct a review of the effect of this Article within 20 years of its implementation. If the DIO and the Government of Canada or the Territorial Government, as the case may be, agree after the review that the objectives of this Article have been met, the obligations under this Article of the Government of Canada or the Territorial Government, as the case may be, shall cease within one year of the completion of the review. If the obligations of the Government of Canada or the Territorial Government under this Article remain in effect after the initial review, the Parties shall review the requirement to continue such provisions every five years or at such other times as they may agree.