Appendix 1 - Guidelines for the development of First Nations' own tendering policies

4.1. Key principles

Section 7.2 of the ISC tendering policy outlines the key principles that guide how calls for tenders and calls for proposals should be conducted. The overarching goal is to establish a process that is open, transparent, accountable, and free from bias.

First Nations are encouraged to develop other key principles that align with their community's values and priorities.

4.2. Thresholds for construction and professional services

Section 7.5 and Appendix 3 of the ISC tendering policy provide the requirements for applying thresholds for professional services and construction to capital project. These thresholds are to be used to determine the appropriate solicitation method (i.e., an open competitive, invited competitive, or non-competitive process) that may be used for a given project.

First Nations may choose to establish lower threshold values for professional services and/or construction projects in their own tendering policies if desired.

4.3. Evaluation criteria and methodology

Section 7.7 and Appendix 5 of the ISC tendering policy outline the requirements and guidance for establishing evaluation criteria and methodology.

First Nations' tendering policies must require calls for tenders and calls for proposals for open competitive and invited competitive processes to provide all prospective bidders and proponents with the criteria that will be used to evaluate bids and proposals, the technical evaluation grid that will be used to determine how the bids or proposals will be ranked, and the methodology that will be used to select the winning bidder or proponent.

Per section 7.7 of the ISC tendering policy, all bids and proposals must be evaluated based on price. However, First Nations' tendering policies may also permit the use of non-price evaluation criteria, such as industry experience, project team expertise, use of local content, and other factors determined by the First Nation, to evaluate tenders and proposals.

6.1. ISC review

For First Nations' own tendering policies to be applied to capital projects funded by ISC through the CFMP and FNIF authorities, the appropriate ISC regional office must review and confirm that these policies comply with the minimum requirements outlined in sections 7.1 (First Nations' own tendering policies) and 7.1.1 (minimum policy requirements) of the ISC tendering policy.

The ISC regional office will maintain a copy of the signed version of the First Nations tendering policy and any updated versions.

6.2. Legal review

It is recommended that First Nations consult their legal counsel for any questions or concerns related to their tendering policies.

6.3. First Nations’ review

Per section 7.1 of the ISC tendering policy, First Nations are required to review and update their own policies if the minimum requirements in the ISC tendering policy are updated. It is also considered best practice for First Nations to regularly review and update their tendering policies to ensure they are aligned with their community's needs.

1. Introduction

This section provides context information for this policy.

Example:

This policy outlines the procedures and guidelines for selecting and hiring contractors and consultants by [First Nation Name]. It has been prepared under the direction of [community's leadership or governing body], and takes effect on [effective date].

2. Purpose

This section explains the purpose of the policy: why it exists and what it aims to achieve.

Example:

Purpose:

• to ensure transparency, fairness, and accountability in the process of selecting and hiring contractors and consultants to meet community needs.
• to promote local economic opportunities while ensuring compliance with relevant legal and policy requirements

3. Scope

This section defines who and what the policy applies to.

Scope:

• this policy applies to all activities related to selecting and hiring contractors and consultants by [First Nation name], including for capital projects funded by Indigenous Services Canada (ISC) through the Capital Facilities and Maintenance Program (CFMP) and First Nations Infrastructure Fund (FNIF) authorities.

4. Guiding Principles

This section outlines the core values that guide the selection and hiring of contractors and consultants.

Example:

This policy is guided by the following principles:

Fairness:

• [First Nation name] is committed to a fair, equitable and transparent process based on good faith and fair dealing. All activities will be conducted in a consistent, impartial, and unbiased manner, ensuring equal opportunity for all potential bidders and proponents

Transparency:

• all processes will be conducted openly, with clear communication and accessible information. Evaluation criteria and methodology will be established and disclosed to all potential bidders and proponents in advance. All relevant inquiries, addenda, and available information relevant to the tender or call for proposal will be equally disclosed to all potential bidders and proponents. All bids and proposals will be assessed using clear, consistent, and predefined evaluation criteria and methodology

Accountability:

• [First Nation name] will maintain accurate records of all activities related to the selection and hiring of contractors and consultants and provide clear documentation and justifications for all decisions. This ensures responsible stewardship of resources and supports community trust

Sustainability:

• decisions will take into account environmental, social, and economic impacts

Support for community:

• [First Nation name] is committed to developing First Nation resources and capacity by encouraging the use of qualified local contractors, consultants, and businesses to deliver projects. A regularly updated sources list will be maintained to identify and engage these service providers

Confidentiality:

• all bids and proposals, whether submitted on paper or electronically, will be opened publicly or in the presence of at least three individuals with appropriate safeguards. All tender and proposal documents and bidder or proponent information will be treated as confidential, with appropriate measures in place to protect sensitive information throughout the process

5. Definitions

This section defines key terms used throughout the policy to ensure clarity and consistency in interpretation and application. These key terms could include:

• the functions of relevant individuals and committees (e.g., Project Manager, Procurement Officer, Evaluation Committee)
• types of solicitation methods, such as open competitive, invited competitive, and non-competitive (i.e., sole source)
• thresholds that determine the applicable solicitation method and approval process that reflect ISC requirements
• standard documents, such as calls for tenders, calls for proposals, requests for qualification, and evaluation criteria and methodology

6. Roles and responsibilities

This section defines the roles, responsibilities, and governance structures that support effective and accountable processes.

First Nations could consider the following when developing this section:

• Governance and oversight: identify the individuals or bodies responsible for oversight and decision-making, including leadership, project managers, procurement officers, and/or committees. Clarify how authority is delegated and how decisions are approved
• Legal and financial frameworks: outline how activities align with applicable legal, financial, and policy frameworks. For example, capital projects funded by ISC through the CFMP and FNIF authorities are required to comply with the Protocol for ISC-Funded Infrastructure
• Approval limits and procedures: establish clear approval thresholds and procedures for different types and values of projects. This helps ensure consistency, accountability, and appropriate levels of review
• other critical roles and responsibilities identified by the [First Nations Community]

For reference, section 8.3 of ISC's tendering policy outlines First Nations' roles and responsibilities for capital projects funded by ISC through the CFMP and FNIF authorities.

7. Thresholds

This section explains how thresholds are established and how they are applied to the solicitation methods that may be used for various types of projects.

For capital projects funded by ISC through CFMP and FNIF authorities, the threshold values established for [First Nation name] are outlined in Appendix 3 of the ISC tendering policy.

8. Solicitation processes and methods

This section outlines the various approaches that may be used to solicit bids and proposals for the completion of projects. Each method should be clearly defined, with guidance on when and how it may be applied.

For capital projects funded by ISC through CFMP and FNIF, guidance on the use of different solicitation methods can be found in Section 7.4 of the ISC tendering policy.

9. Preparation and distribution of tender and proposal documents

This section provides guidance on preparing calls for tenders and calls for proposals.

Guidance could also be developed to describe the method(s) and type of communication that could be used to contact and communicate with potential bidders or proponents.

Guidance on preparing calls for tenders and calls for proposals for projects funded by ISC through the CFMP and FNIF can be found in section 7.6 of the ISC tendering policy. Appendix 4 of the ISC tendering policy outlines some industry best practices that may also be adopted.

10. Bid and proposal evaluation and contract award

This section describes how bids and proposals are evaluated and how the winning bidder or proponent is selected.

It could also provide guidance on how local resources should be considered during the evaluation process.

Guidance on evaluating bids and proposals for capital projects funded through the CFMP and FNIF is available in section 7.7 of the ISC tendering policy and in Appendix 5. Requirements for awarding contracts for these projects can be found in section 7.8 of the ISC tendering policy.

11. Record keeping and documentation

This section provides guidance on maintaining accurate and complete records to support transparency, accountability and audit readiness.

First Nations may wish to define expectations for record keeping, including the types of documents to be retained, such as documents related to calls for tenders and calls for proposals, records of evaluation processes, and contract awards.

Clear procedures should be established to ensure records are organized, accessible, and securely stored with an appropriate retention period for procurement records, in alignment with applicable laws, funding agreements, and organizational policies.

Section 7.9 of the ISC tendering policy outlines the types of written records that must be maintained.

12. Conflict resolution

This section outlines the steps and measures to prevent personal interests from influencing contracting decisions and resolve conflicts as they arise.

Topics to be considered in this section could include:

• disclosure requirements
• examples of conflicts
• procedures for addressing and managing conflicts

First Nations are strongly encouraged to consult their legal counsel for advice on conflict resolution and to ensure that their policies align with applicable laws and funding agreement requirements.  

13. Policy review and updates

First Nations are encouraged to establish a regular review cycle to ensure the policy continues to meet community needs and aligns with applicable funding agreements, legal requirements, and industry best practices.

14. Contact information

Provide the contact information for inquiries related to the policy.

15. Appendices

Provide any supporting documents and templates.