Modèle de protection de paiements CCG

Trade Agreement: NONE
Tendering Procedures:
Attachment: None
Competitive Procurement Strategy: Best Overall Proposal
Comprehensive Land Claim Agreement: No
Nature of Requirements:
IMPORTANT NOTICE TO SUPPLIERS

This Request for Qualification is a continuation of the
5K002-133712/B

PROJECT TITLE

CGC Producer Payment Protection Model

OBJECTIVE

The Canadian Grain Commission (CGC) is looking to qualify one
(1) supplier who it is expected will establish a Master
Insurance Policy Agreement for the provision of an
insurance-based producer payment protection model (the Model)
for eligible grain producers. It will be a requirement as part
of licensing under the Canada Grain Act (CGA) and Canada Grain
Regulations for CGC licensees to obtain security through
insurance as part of this model.

BACKGROUND

Overview of the Canadian Grain Commission

The CGC is a federal government agency that administers the
provisions of the CGA. The CGC's mandate is to, "in the
interests of the grain producers, establish and maintain
standards of quality for Canadian grain and regulate grain
handling in Canada, to ensure a dependable commodity for
domestic and export markets". The CGC regulates the handling of
21 grains grown in Canada to ensure that Canada's grain is
safe, reliable and marketable, and that grain producers are
protected. Through its activities, the CGC supports a
competitive and efficient grain sector that upholds Canada's
international reputation for consistent and reliable grain
quality. To achieve its mandate, the CGC:

regulates grain handling in Canada through the grain quality and
quantity assurance programs;
carries out scientific research to understand all aspects of
grain quality and grain safety and to support the grain grading
system; and
implements a number of producer protection programs and
safeguards to ensure the fair treatment of Canadian grain
producers when they deliver their grain to licensed grain
elevators and grain dealers. This includes the producer payment
protection function of the Licensing Program, the producer car
allocation program, and the producer support program.

For more information about the CGC, refer to
http://www.grainscanada.gc.ca.

GENERAL REQUIREMENTS

Master Policy Agreement

The Supplier must write a Master Insurance Policy Agreement that
contains all of the terms and conditions identified in this
Required content of the Master Insurance Policy Agreement and
Request for Qualification to insure grain companies identified
by the CGC. The Master Insurance Policy Agreement must cover up
to 95% coverage to producers determined to be eligible for
compensation by the CGC in the event of a licensee failure up to
an annual aggregate limit of $100 million. This limit may be
reviewed annually, depending on changes in aggregate
liabilities. The Supplier must maintain sufficient financial
capacity to provide coverage under the terms of the policy while
adhering to the Canadian regulatory requirements for minimum
capital adequacy. A service level agreement will be developed to
identify the roles and responsibilities of both the CGC and
Supplier to administer the Master Insurance Policy Agreement.

The Master Insurance Policy Agreement will be required to
provide coverage to eligible producers for unpaid grain
deliveries dating up to 90 days prior to the effective date of
the Master Insurance Policy Agreement. This is required to
ensure a smooth transition to the Model and to ensure that
producer payment protection coverage does not lapse during the
transition period.

Transition Phase

The CGC's current group of licensees renews their respective
licences in different months throughout the year. A licensing
transition period is being considered from December 1, 2013 to
November 30, 2014 to consolidate monthly renewals into a single
annual renewal date for all licensees. The intention is to align
the insurance policy renewal date with the licence renewal date.

In order to begin this transition, all licensees would need to
be included in the new insurance model effective December 1,
2013. In the months prior to this, the Master Insurance Policy
Agreement and the service level agreement must be developed and
finalized, all licensee premiums must be established, the
premiums and new requirements must be communicated to licensees,
and licensees must be allowed time to adjust and comply with the
new requirements.

PERIOD OF THE ARRANGEMENT

The period of the Arrangement will be for three (3) years from
the master insurance policy agreement effective date with an
irrevocable option to extend the term of the Arrangement by up
to two (2) additional one (1) year period(s) under the same
conditions.

SECURITY REQUIREMENT

Security Requirement

1. The Supplier must, at all times during the performance of
the Work, hold a valid Designated Organization Screening (DOS)
with approved Document Safeguarding and Production Capabilities
at the level of PROTECTED B, issued by the Canadian Industrial
Security Directorate, Public Works and Government Services
Canada.

2. The Supplier personnel requiring access to PROTECTED
information, assets or work site(s) must EACH hold a valid
RELIABILITY STATUS, granted or approved by the Canadian
Industrial Security Directorate (CISD), Public Works and
Government Services Canada (PWGSC).

Until the security screening of the Supplier personnel has been
completed satisfactorily by the Canadian Industrial Security
Directorate, Public Works and Government Services Canada, the
Supplier personnel MAY NOT HAVE ACCESS to (CLASSIFIED/PROTECTED)
information or assets, and MAY NOT ENTER sites where such
information or assets are kept, without an escort.

3. The Supplier MUST NOT utilize its Information Technology
systems to electronically process, produce or store PROTECTED
information until the CISD/PWGSC has issued written approval.
After approval has been granted or approved, these tasks may be
performed at the level of PROTECTED B.

4. Subcontracts which contain security requirements are NOT to
be awarded without the prior written permission of CISD/PWGSC.

5. The Supplier must comply with the provisions of the:

(a) Security Requirements Check List and security guide (if
applicable), attached at Annex C;
(b) Industrial Security Manual (Latest Edition)

MANDATORY TECHNICAL CRITERIA

MT1: The Supplier must have provided payables, receivables,
credit insurance or financial guarantee policies similar to the
model described in this RFQ within the past five (5) years, with
annual aggregate limits of at least $100 million each.

Supplier must provide the names, contact information, and
description for at least three (3) current or prior insurance
policies involving payables/receivables or similar financial
guarantees. Each program must have been provided to one or more
clients based in Canada. Referenced projects must have operated
for a duration of at least the twelve (12) months.

The following information must be provided for each example:

i. Client organization name
ii. Client contact information
iii. Program description
iv. Start and end dates (if the policy is not longer in place)
v. Annual aggregated coverage limit;

MT2: The Supplier must provide evidence that its financial
capacity is in compliance with regulatory requirements for
minimum capital adequacy and sufficient to include the CGC
master policy, with an annual aggregate limit of $100 million,
as described in the RFQ. Examples of evidence would include the
Minimum Capital Test (MCT) and Branch Adequacy of Assets Test
(BAAT). Evidence from other similar tests will be accepted;

MT3: Supplier must hold the necessary insurance license(s) in
Canada to provide the insurance underwriting services, invoice
and collect premiums, and issue insurance policies and
endorsements as required by this RFQ.A copy of the required
valid license(s) to operate in Canada must accompany the
response for evaluation.

A copy of the required valid license(s) to operate in Canada
must accompany the bid.

BASIS OF SELECTION

To be declared responsive, an arrangement must:

(a) comply with all the requirements of the solicitation;

(b) meet all the mandatory evaluation criteria; and

(c) obtain a minimum total of 60 points for the point rated
criteria as specified in Attachment 1 to Part 4 for the point
rated technical criteria.

Arrangements not meeting (a) or (b) or (c) will be declared
non-responsive. Neither the responsive arrangement obtaining the
highest number of points nor the one with the lowest evaluated
price will necessarily be accepted.

Suppliers meeting the mandatory criteria of the solicitation,
and who attain the minimum pass mark for the point rated
evaluation criteria will be evaluated financially based on their
response to the evaluation criteria contained at Clause 1.2.1
Financial Evaluation.

The responsive arrangement with the highest total score will be
ranked number one and will be recommended for award of an
Arrangement, subject to the provisions of this solicitation. The
Supplier's total score will be the sum of its score for the
point rated evaluation criteria, and its score from the
financial evaluation as detailed at Clause 1.2.1 Financial
Evaluation.

PWGSC CONTACT:

Jocelyne C Gagnon
Supply Specialist
Public Works and Government Services Canada
Acquisitions Branch
Professional Services and Procurement Directorate
11 Laurier Street, Phase III
Gatineau, Québec K1A 0S5
Telephone: 819-956-0575 / Facsimile: 819-956-2675
E-mail address: j••••••••@••••••••.••.ca

Suppliers who are interested in submitting an arrangement shoud
order the sollicitation document and follow all the instructions.
Delivery Date: Above-mentioned

The Crown retains the right to negotiate with suppliers on any
procurement.

Documents may be submitted in either official language of Canada.