Vellux Blanket Material - Various CORCAN Locations Across Canada

Trade Agreement: WTO-AGP/NAFTA/AIT/Canada-Peru FTA/Canada-Colombia FTA Tendering Procedures: Generally only one firm has been invited to bid Attachment: None Non-Competitive Procurement Strategy: Exclusive Rights Comprehensive Land Claim Agreement: No Vendor Name and Address: WESTPOINT HOME LLC 28 EAST 28TH STREET NEW YORK New York United States 10016 Nature of Requirements: Vellux? Blanket Material - Various CORCAN Locations Across Canada

21C11-130001/A Mack, Wayne Telephone No. - (306) 975-4004 ( ) Fax No. - (306) 975-5397

To supply Vellux? fabric as detailed herein for Correctional Services of Canada (CSC), CORCAN Industries, various CSC CORCAN locations across Canada "as and when requested", during the period of the National Individual Standing Offer from date of Standing Offer issue to 30 June 2015.

If the Standing Offer is authorized for use beyond the initial period, the Offeror offers to extend its offer for three (3) additional twelve (12) month periods, from 01 July 2015 to 30 June 2016; 01 July 2016 to 30 June 2017 and 01 July 2017 to 30 June 2018.

About CORCAN CORCAN is a program of the Correctional Service of Canada (CSC), dating back to the mid-1800s, when the first federal prisons were built. The objective of CORCAN is to promote offender rehabilitation by developing or improving employability.

CORCAN became a Special Operating Agency in 1992, financed through a revolving fund and is subject to the same federal legislative and regulatory authority as CSC.

CORCAN operates in 39 sites across Canada with four business lines: textiles, manufacturing, construction and services (such as printing and laundry). A principal goal of CORCAN is to provide Offender Workers with positive job-related work habits and the opportunity to acquire real-world marketable skills. CORCAN shops operate in as businesslike a manner as possible, given their institutional setting and training imperatives. All shops are ISO-certified.

CORCAN's mission is to aid in the safe reintegration of offenders into Canadian society by providing employment and employability skills training to offenders incarcerated in federal penitentiaries and, for brief periods of time, after they are released into the community.

Further information can be found within the CSC website at: www.corcan.gc.ca

Sole Source Justification: Vellux? material (patent and trademark) is solely owned by the Original Equipment Manufacturer (OEM) Westpoint Marketing Australia Pty Ltd. Westpoint Marketing Australia Pty Ltd., are the developers of the fabric and exclusive owners of the Intellectual Property (IP)/patent/trademark for the Vellux? . The trademark is registered under their subsidiary WP IP, LLC. The Registration Numbers are US - 0936147, International - 0994577, Canada - TMA198098. The manufacturing process is proprietary.

The company has multiple approved retailers of finished goods (blankets), however CSC CORCAN want to purchase the material raw so that it can be sewn and finished in CORCAN shops by inmate labour. The Australian company is the only one that can process the order for raw material. They have appointed the NY office to administer this SO and process all resulting call-ups. They do not authorize resellers or distributors for their raw material.

There are no other manufacturers or distributors of Vellux? material in bulk/rolls due to patent and trademark ownership.

CORCAN has existing Standing Offers for blanket material which were tendered competitively. As a result, CORCAN currently produces 4 types of blankets: wool, Leanoweave (100% cotton), fleece (100% polyester) and Nomex fire suppression.

Since CORCAN shops operate in as businesslike a manner as possible, CORCAN has identified a growing demand for Vellux? blankets and would like to be able to respond to its clients requests for such material. CORCAN forecasts that the demand for Vellux? will be for at least ten years. The current requirement is for an initial five year period, after which the market will be reassessed to see if the requirement still exists. If demand warrants, CORCAN's intentions are to have other fabric requirements tendered competitively to allow CORCAN clients more choice in products.

Vellux? is the only product that will meet all of the following minimum specifciations:

1) Abrasion Resistance: Must have passed Teledyne Taber Abrader Test

2) Construction will not pill or unravel

3) Insulating Properties: Using the Reeves Thermal Method, fabric must have a minimum Clo value of 0.80

4) Hypoallergenic

5) Non-woven, synthetic product

6) Does not absorb moisture

7) Flammability Test: Must pass as a Class 1/DNI product under ASTM D4151 and 16 CFR 1610 TexTests for flammability.

8) Machine washable, does not require dry cleaning

9) The core scrim construction results in a product that will not stretch or shrink (less than 1%).

10) Back/Base: network fabric (100% Terylene)

11) Middle: Polyurethane Foam (double sides)

12) Surface: 100% nylon fibre

13) Weight: minimum 230 g/m²

maximum 240 g/m²

14) Width: minimum 233.7cm - 92" maximum 238.8 cm - 94"

15) Roll Size: minimum 50 metres/roll maximum 60 metres/roll

16) Pattern/Colour: available in 6 colours (tan, ivory, blue, gray, navy and pink)

GCR Exemption: d) only one supplier (person or firm) is capable of performing the contract.

NAFTA Limited Tendering Reason: (b)where, for works of art, or for reasons connected with the protection of patents, copyrights or other exclusive rights, or proprietary information or where there is an absence of competition for technical reasons, the goods or services can be supplied only by a particular supplier and no reasonable alternative or substitute exists;

WTO Limited Tendering Reason: Article XV (b) when, for works of art or for reasons connected with protection of exclusive rights, such as patents or copyrights, or in the absence of competition for technical reasons, the products or services can be supplied only by a particular supplier and no reasonable alternative or substitute exists;

AIT Article 506: 12) to ensure compatibility with existing products, to recognize exclusive rights, such as exclusive licences, copyright and patent rights, or to maintain specialized products that must be maintained by the manufacturer or its representative;

Total Estimated Cost: $282,500.00 per year HST included. Delivery Date: Above-mentioned

You are hereby notified that the government intends to negotiate with one firm only as identified above. Should you have any questions concerning this requirement, contact the contracting officer identified above.

An Advance Contract Award Notice (ACAN) allows departments and agencies to post a notice, for no less than fifteen (15) calendar days, indicating to the supplier community that it intends to award a good, service or construction contract to a pre-identified contractor. If no other supplier submits, on or before the closing date, a Statement of Capabilities that meets the requirements set out in the ACAN, the contracting authority may then proceed with the award. However, should a Statement of Capabilities be found to meet the requirements set out in the ACAN, then the contracting authority will proceed to a full tendering process.

Suppliers who consider themselves fully qualified and available to provide the services/goods described herein, may submit a statement of capabilities in writing to the contact person identified in this Notice on or before the closing date of this Notice. The statement of capabilities must clearly demonstrate how the supplier meets the advertised requirements.

The PWGSC file number, the contracting officer's name and the closing date of the ACAN must appear on the outside of the envelope in block letters or, in the case of a facsimile transmission, on the covering page.

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

Documents may be submitted in either official language of Canada.