Government of Canada procurement and leasing activity report in Nunavut for fiscal year 2023-24
On this page
Executive Summary
The Government of Canada is pleased to release its Procurement and Leasing Activity Report in Nunavut. The purpose of the Report is to inform the Review CommitteeFootnote 1 of the effectiveness of the Directive on Government Contracts, Including Real Property Leases, in the Nunavut Settlement Area (the Directive) and to provide information on the Government of Canada's contracts, including real property leases, in Nunavut for fiscal year 2023-24.
The Directive is a policy instrument to support the implementation of the Government of Canada's obligations under Article 24 of the Agreement Between the Inuit of the Nunavut Settlement Area and His Majesty the King in Right of Canada (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. Inuit firms refers to those registered on the Inuit Firm Registry (IFR)Footnote 2. Throughout the implementation of Article 24, the Directive underscores that the Government conducts all contracting 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 includes analysis of contract data categorized by dollar value, number of contracts, and commodity type. It is further broken down by contracts awarded to Inuit firms registered on the IFR compared with firms that are not registered on the IFR. The solicitation methods used (such as limited bidding to Inuit firms) and requisitioning department information is also captured. Each department's Head of Procurement is responsible for ensuring that the government contract information, including real property leases, supplied is accurate and complete. In total, 18 departments reported contracts during the 2023-24 fiscal year.
Summary of key data
- A total of 540 contracts and amendments to contracts were awarded to both Inuit firms and firms not registered on the IFR for work that took place within the Nunavut Settlement Area (NSA) with a total value of $164,240,434. Of the 540 transactions, 477 were new contracts (including 70 contracts which were awarded and subsequently amended during the fiscal year) and 63 were amendments to contracts awarded in a previous fiscal year.
- $103,879,133, representing 63% of the total value of contracts, was awarded to Inuit firms, while the remaining $60,361,301 (37%) was awarded to firms not registered on the IFR. See Table 1 for details.
- In terms of real property leases awarded, a total of 36 leases were reported with a total dollar value of $28,955,952. Out of the 36 leases, 8 were awarded to a firm listed on the IFR. These 8 leases were valued at $10,001,569 or 35% of the total value of all leases in the NSA. See Table 2 for details.
- In 2023-24 the value of Construction contracts awarded to Inuit firms notably increased by 545%; similarly, the value of Service contracts awarded to Inuit firms rose by 405% while Goods contracts awarded to Inuit firms experienced a 63% increase.
| Commodity type | All firms | Inuit firms | % of Inuit firms | Firms not registered on the IFR |
|---|---|---|---|---|
| Construction | $44,881,168 | $42,067,162 | 94% | $2,814,006 |
| Goods | $21,332,075 | $15,622,454 | 73% | $5,709,621 |
| Services | $98,027,191 | $46,189,517 | 47% | $51,837,673 |
| Total | $164,240,434 | $103,879,133 | 63% | $60,361,301 |
| Type of commodity | All firms | Inuit firms | % of Inuit firms | Firms not registered on the IFR |
|---|---|---|---|---|
| Residential Buildings | $19,503,750 | $2,055,750 | 11% | $17,448,000 |
| Office Buildings | $9,452,202 | $7,945,819 | 84% | $1,506,383 |
| Total | $28,955,952 | $10,001,569 | 35% | $18,954,383 |
1. Key observations from the data
- In fiscal year 2023-24, a total of 540 contracts, and amendments to contracts, were awarded to both Inuit firms and firms not registered on the IFR for work that took place within Nunavut with a total value of $164,240,434. Of the 540 transactions, 477 were new contracts and 63 were amendments to contracts awarded in a previous fiscal year.
- Inuit firms were awarded a total of $103,879,133 (63%) of the total value of contracts and amendments, firms not registered on the IFR were awarded the remaining $60,361,301 (37%).
- Inuit firms were awarded a total of 205 contracts and amendments (38%) of which 181 were new contracts and 24 were amendments on contracts from previous years. Firms not registered on the IFR were awarded the remaining 335 contracts and amendments (62%). Of the 205 contracts awarded to Inuit firms, 152 contracts were competitive ($102,589,577) and 53 were non-competitive ($1,289,556).
- Under section 6.3.1 of the Directive, contracting authorities must consult the IFR to determine the capacity of Inuit firms before soliciting or inviting bids in the NSA. In terms of this requirement, the IFR was consulted in 201 out of the 293 competitive contracts.
- Of those 201 IFR consultations, Inuit firm capacity was identified in 175 contracts (87%) representing 60% of the total 293 competitive contracts awarded.
- Out of the 175 competitive contracts where Inuit firm capacity was identified, notifications were reported as sent in 145 instances (83%). See section 7 for details.
- Of the 145 competitive contracts where notifications of an opportunity to bid were reported as being sent to Inuit firms, there were 100 contracts identifying that bids were received from Inuit firms.
- The overall sum of new contracts (excluding amendments to contracts awarded in previous fiscal years) with Inuit firm bids received (including both competitive and non-competitive contracts) was 218 and from that, the number of compliant bids received was 193, resulting in a bid compliance rate of 89%.
- Table 3 (below) provides a breakdown of the percentage contracts by commodity type for all firms and Inuit firms.
| Commodity type | Total value of contracts | % of total value of all contracts | Total value of contracts awarded to Inuit firms | % of the total value of contracts awarded to Inuit firms |
|---|---|---|---|---|
| Services | $98,027,191 | 60% | $46,189,517 | 44% |
| Goods | $21,332,075 | 13% | $15,622,454 | 15% |
| Construction | $44,881,168 | 27% | $42,067,162 | 40% |
| Total | $164,240,434 | 100% | $103,879,133 | 100% |
- Of the 477 new contracts awarded in 2023-24, there were 203 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 $58,578,663. Of these contracts, 89 applied LB ($53,175,493), 40 applied ROFR ($1,930,939) and 83 ($3,472,231) met LB requirements but were reported as not applying LB. See section 13 for details.
- Inuit and Nunavut benefits reported as realized for fiscal year 2023-24 included:
- 52 contracts included Inuit employment for a dollar value of $6,496,817.
- Approximately 704 hours of Inuit training and skills development, the dollar value associated with this training has not been provided.
- At least two Inuit firm subcontractors for a dollar value of $616,392. See section 19 for details.
- In 2023-24 the total value of contracts awarded increased by 241%, and the total value of contracts awarded to Inuit firms increased by 311%.