CIDA's Aboriginal Procurement Strategy (CAPS) -Frequently Asked Questions

Q 1. What is CIDA's Aboriginal Procurement Strategy (CAPS)?

A. CAPS is a new initiative aimed at promoting Aboriginal business development through the procurement process at CIDA. The strategy has three components:

• The Aboriginal Supplier Incentive. This will provide Aboriginal organizations and individuals with opportunities to participate in programs and projects financed by CIDA's aid budget.
• Voluntary Set-Asides. Set-asides will restrict the bidding process for certain operating requirements at CIDA to Aboriginal suppliers.
• Information Sessions. CIDA will use a variety of means to inform its staff, existing suppliers, and Aboriginal suppliers about CAPS.

Q2. How does CIDA use partnerships to carry out its foreign aid mandate?

A. CIDA provides support to more than 100 developing countries in the form of goods, services, financial contributions, humanitarian aid, and the transfer of knowledge and skills (capacity building). The Agency works with a variety of partners including the business community, non-governmental organizations (NGOs), professional associations, cooperatives, educational institutions and international agencies. About 2,000 Canadian organizations and more than 100 universities and colleges currently benefit from aid-related contracts. CIDA is looking to broaden its partnerships with Canadian businesses, institutions, and NGOs to ensure growth and equity. It also intends to reach out to those who have not traditionally been involved in development cooperation but whose skills, experience, and know-how may be useful.

Q 3. What difference will CAPS make in the way CIDA does business?

A. CAPS will make it easier for Aboriginal suppliers to compete for CIDA contracts. The Aboriginal Supplier Incentive was designed to encourage all bidders with experience in development assistance to include Aboriginal organizations and individuals in their proposals as employees, sub-consultants, and suppliers. All consultants hired for aid-related projects must have experience in development assistance; however, consultants may hire sub-consultants or suppliers who don't have such experience. Participation in aid-related projects is a capacity-building exercise that will allow many more companies and individuals to compete directly for contracts in the future.

Q 4. Why should consultants with experience in development assistance include Aboriginal sub-consultants and suppliers in their proposals for CIDA projects?

A. Adding qualified Aboriginal suppliers to a proposal can increase the chances of winning a contract. The bonus points awarded for Aboriginal participation in the proposal can make a difference in a highly competitive bidding process.

Q 5. How can organizations find Aboriginal suppliers that they may want to include in their proposals?

A. Industry Canada maintains information on more than 3,500 Aboriginal businesses in its Aboriginal Business Directory.

Q 6. Where can companies find information about contract work available from CIDA?

A. CIDA uses a nationwide electronic tendering service called MERX to invite suppliers to respond to requests for proposals. Suppliers wishing to subscribe to MERX, or to find out more about the service, can call 1-800-964-6379, or look on the Internet at http://www.merx.com. Suppliers may also wish to look for business opportunities with organizations that have already been awarded contracts by CIDA by consulting it's Project Browser.

Q 7. Which CIDA contracts are eligible for the Aboriginal Supplier Incentive?

A. The Aboriginal Supplier Incentive applies to all competitive requests for proposals for projects and programs financed by CIDA's aid budget.

Q 8. How does the Aboriginal Supplier Incentive work?

A. The Aboriginal Supplier Incentive provides the possibility of up to a maximum of 50 points for Aboriginal participation in a proposal. This represents 5% of the maximum 1,000 points that proposals can normally earn for their technical component (800 points) and their financial component (200 points). The bonus points are calculated after the technical and financial evaluations have been completed. They are based on the value of Aboriginal participation in the proposal as a percentage of the overall dollar value of the proposal (in terms of fees and expenses). For example, to qualify for all 50 points, the proposal would have to be 100% Aboriginal. To cite another example, if the value of the Aboriginal component is 10% of the overall value of the proposal, five bonus points would be awarded (10% of 50 points). The maximum possible points is 1,050.

Q 9. Does the Aboriginal component have to meet a minimum point requirement?

A. No. There is no minimum passing score required. Points awarded in the Aboriginal Supplier Incentive process are considered to be bonus points.

Q 10. What happens in the case of a tie in the total number of points between two or more proposals?

A. Points awarded under the Aboriginal Supplier Incentive are added to the technical score and the financial score. The proposal receiving the highest total score represents the best value to CIDA. If there is a tie in this score, the normal contracting rules apply. Usually when valid identical low bids are received, the contract is awarded based on other criteria to be determined by the project team in accordance with Treasury Board guidelines. These criteria can include past performance by the bidder, best offer on delivery date, willingness of the bidder to assume all or part of the exchange rate adjustment risk, and equal distribution of work (rotation).

Q 11. Are the Aboriginal fees and expenses included in the overall fees of the proposal for the purpose of evaluating the financial component?

A. Yes.

Q 12. What is Form G?

A. Form G is filled out by the supplier to provide information about the involvement of Aboriginal firms or individuals as employees, sub-consultants, or suppliers in a proposal, and is placed in the same envelope as the financial component of the proposal.

Q 13. What kind of proof is required that a firm or individual participating in the bidding process is legitimately Aboriginal?

A. The Department of Indian and Northern Affairs (DIAND) defines an Aboriginal firm as one which is 51% owned and controlled by Aboriginal persons, and whose workforce is at least one-third Aboriginal, in the case of firms with six employees or more. For the purpose of this incentive, an Aboriginal person is an Indian, Métis, or Inuit who is a Canadian citizen and resides in Canada. CIDA will use the Aboriginal Business Directory, maintained by Industry Canada, to determine if suppliers are officially recognized as Aboriginal. At any time before or after the contract is signed, CIDA can request that the consultant provide official certification as to the Aboriginal status of employees, sub-consultants or suppliers.

Q 14. What steps can Aboriginal suppliers take to prepare for opportunities to participate in CIDA international development projects?

A. Aboriginal suppliers wishing to be included in the CIDA bidding process should first make sure that they are part of the Aboriginal Business Directory maintained by Industry Canada. CIDA uses the ASI to determine which suppliers are officially recognized as Aboriginal, and consultants may also use the resource to identify potential sub-consultants and suppliers. Any supplier wishing to supply goods and services under contract to CIDA should be familiar with the federal government's foreign policy statement, Canada's International Political Statement, which sets CIDA's priorities. The statement can be viewed on CIDA's Web site at http://www.acdi-cida.gc.ca. Suppliers should also seek out business opportunities by referring to the CIDA`s Contracts and Lines of Credit document to determine which organizations are already contracted by CIDA to carry out projects and programs abroad.

Q 15. What are voluntary set-asides?

A. Under CIDA's Aboriginal Procurement Strategy, only Aboriginal suppliers will be eligible to bid on certain operating requirements at CIDA. These restricted bids are called set-asides. They are valued at $420,000 each year of the program.

Q 16. What is meant by CIDA's operating requirements?

A. CIDA's operating requirements include such items as office supplies and furniture, and personal service contracts. The base figure of $14 million used to calculate voluntary Aboriginal set-asides does not represent CIDA's entire operating budget because many commodities such as telecommunications can be purchased from only one supplier.

Q 17. How can you find out more about CIDA's Aboriginal Procurement Strategy?

A. You can find details on CIDA's Internet site from CIDA's Aboriginal Procurement Strategy page. You can also contact CIDA by mail at Public Enquiries, 5th Floor, 200 Promenade du Portage, Gatineau, Québec, K1A 0G4, or by telephone at (819) 997-5456 or 1-800-230-6349 (toll-free).