Government of Canada procurement and leasing activity report in Nunavut for fiscal year 2021-22

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• Executive Summary
• 1. Key Observations of the Report

Executive Summary

The Government of Canada Procurement and Leasing Activity Report in the Nunavut Settlement Area (the report) provides information on the Government of Canada’s contracts, including real property leases, for fiscal year 2021-22. The Directive on Government Contracts, Including Real Property Leases, in the Nunavut Settlement Area (the directive) establishes the policy framework that applies to these contracts.

The Government of Canada is committed to meeting its procurement obligations under the Agreement Between the Inuit of the Nunavut Settlement Area and Her Majesty the Queen in right of Canada (Nunavut Agreement). The directive is a policy instrument to support the implementation of the Government of Canada’s obligations under Article 24 "Government Contracts" of the Nunavut Agreement. The objective of Article 24 is to provide reasonable support and assistance to Inuit firms to enable them to compete for government contracts. Throughout the implementation of Article 24, government contracting shall be conducted in a manner that is fair, open and transparent, demonstrates sound stewardship of public funds, and supports results for all Canadians through the delivery of programs and services.

The report presents statistical information about procurement contracts, including real property leases, entered into in the Nunavut Settlement Area (NSA) by federal government departments and agencies. The information is reported to Indigenous Services Canada (ISC) and the Treasury Board of Canada Secretariat. The report covers contracting activity and real property leasing for the fiscal year beginning April 1, 2021 and ending March 31, 2022. This marks the second full fiscal year that contracting activity data is reported to ISC. Previously reported data covered the following periods: Q4-2019-20 and fiscal year 2020-21.

In summary:

• 277 contracts, including amendments, were awarded with a total value of $47,009,949. Of the 277 transactions reported, 236 were new contracts only, 23 were transactions that were classified as amendments only, and 18 transactions were reported as contracts that were awarded and then amended during the same fiscal period.
• $31,891,941, representing 67.8% of the total value of contracts was awarded to Inuit firms, while the remaining $15,118,008 was awarded to firms not registered on IFR. See Table 1 for details.
• In terms of real property, a total of 45 leases were reported with a total dollar value of $46,641,322. Out of the 45 leases, 3 leases were awarded to a firm listed on the IFR. However, the total value of the leases awarded to the Inuit firm was $21,527,370 or 46.2% of the value of all leases in the Nunavut Settlement Area. See Table 2 for details.

1. Key Observations of the Report

• In fiscal year 2021-22, a total of 277 government contracts and amendments (total value of $47,009,949) were reported as awarded under the directive. Of the 277 transactions reported, 236 were new contracts only, 41 were transactions that were classified as amendments.
• Inuit firms were awarded a total of $31,891,941 (67.8%) of the total value of contracts and amendments, while firms not registered on the IFR were awarded the remaining $15,118,008 (32.2%).
• Inuit firms were awarded a total of 90 contracts and amendments (32.5%), while firms not registered on the IFR were awarded the remaining 187 contracts and amendments (67.5%). Of these 90 contracts awarded to Inuit firms, 70 contracts were competitive ($31,354,114) while 20 were non-competitive contracts ($537,827).
• When determining market capacity for the competitive contracts awarded, excluding amendments, the IFR was reported as consulted 62.6% of the time (87 out of 139 contracts)
  • Inuit firms were identified on the IFR in 71 contracts out of 87 competitive contracts awarded (81.6% of the time).
  • Notifications of opportunities were sent in 53 instances^{Footnote 1} out of 71 competitive contracts awarded where Inuit firms were identified on the IFR (74.6% of the time).
• When determining market capacity for the non-competitive contracts awarded, excluding amendments, the IFR was reported as consulted 58.2% of the time (53 out of 91 contracts). See Chapter 7 for details
• Of the 18 contracts (25.4%) where notifications of the opportunity were reported as not sent:
  • Inuit firms were awarded 16 of those contracts (88.9%), and firms not registered on the IFR were awarded 2 contracts (11.1%).
• Service contracts constitute $33.4 million, or 71.0% of the total value of contracts. Goods and construction constitute $10.3 million or 21.8%, and $3.4 million or 7.2%, respectively of the total value.
• Of the total dollar value of contracts awarded to Inuit firms:
  • Construction contracts constitute $3.3 million (10.4% of the total value of Inuit contracts);
  • Goods contracts constitute $7.7 million (24% of the total value of Inuit contracts); and,
  • Services contracts constitute $20.9 million (65.5% of the total value of Inuit contracts);
• There were 99 out of 236 new contracts that met the Limited Bidding (LB), or Right of First Refusal (ROFR) requirements established by the directive, with a total dollar value of $24,421,654. Of these contracts, 17 applied LB ($20,765,469), 24 applied ROFR ($1,626,623) and 58 ($2,029,561) met LB requirements but were reported as not applying LB. See Chapter 13 for details.
• Inuit and Nunavut Benefits reported as realized for fiscal year 2021-22 included:
  • 7,867 hours of Inuit employment reported for the value of $636,727;
  • Approximately 3,498 hours of Inuit training and skills development for a dollar value of $144,605; and,
  • 117 subcontractors for a dollar value of $317,172. See Chapter 18 for details.