New and used vehicle motor sales statistics by model

1. Advance Contract Award Notice (ACAN) An ACAN is a public notice indicating to the supplier community that a department or agency intends to award a contract for goods, services or construction to a pre-identified supplier, thereby allowing other suppliers to signal their interest in bidding, by submitting a statement of capabilities. If no supplier submits a statement of capabilities that meets the requirements set out in the ACAN, on or before the closing date stated in the ACAN, the contracting officer may then proceed with the award to the pre-identified supplier.

2. Definition of the requirement The National Economic Accounts Division (NEAD) is continuously investigating new data sources to improve its products such as the quarterly gross domestic product (GDP) estimates, and to fulfill Statistics Canada’s requirements to the federal-provincial fiscal arrangements regulations and to the Harmonized Sales Tax (HST) allocation formula.

Understanding the motor vehicle market in Canada has always been a requirement at Statistics Canada because of its volatility and importance in the measurement of household expenditure on consumer goods together with its impact on GDP and household savings.

J.D. Power and Associates (JDPA) launched the Power Information Network (PIN) in Canada in 2003. PIN collects, processes, edits and releases monthly information on retail transactions with individuals. PIN collects statistics from the dealer management systems on new and used motor vehicles sold in Canada by participating new motor vehicle dealers operating in major metropolitan areas such as Vancouver, Edmonton, Calgary, Toronto and Montreal. Statistics available from the PIN include the number of new motor vehicle transactions by model and model year together with the vehicle price less customer cash rebate and the Manufacturer Suggested Retail Price (MSRP). It also breaks down the sales into cash purchases, financed purchases and leases. PIN covers approximately 25% of all transactions with individuals. Information on the actual transaction price of new vehicle purchases from JDPA combined with provincial and territorial registration data available represents a unique source to apply the concepts of the Canadian System of National Accounts (CSNA). Access to these monthly data is critical in supporting the analysis of the motor vehicle market as they determine the Canadian demand by household in terms of units and value. It represents an important component in the supply/disposition analysis carried out in the CSNA.

The JDPA data combined with the registration data will have a significant role in the federal-provincial fiscal arrangements regulations and in the Harmonized Sales Tax (HST) allocation formula as household demand for new motor vehicles represents approximately 8% of the representative average tax base for household expenditure. The price data from JDPA will also be exploited by the Consumer Price Division as an additional input into determining the Consumer Price Index (CPI) for new motor vehicle purchases and leases. The calculation of sales tax estimates in the CSNA also relies on the valuation by type of transactions, purchases or leases.

3. Criteria for assessment of the Statement of Capabilities (Minimum Essential Requirements) Statistics Canada requires new and used vehicle motor sales statistics by model. This data is required on a monthly basis, within one month following the reference month.

Data is required for the reference month starting January 2014 until reference month of December 2016. The data received must be electronically transferred in an easily accessible format such as MS Excel spreadsheet.

• The data provider must provide a client service representative when needed.

• The data must include new motor vehicle sales by sales month, by vehicle model, by model year, and by the counts sold that month. For all these aggregates, detail regarding the average final vehicle price paid by the customer (less customer rebate), the average type of sale (% cash, % finance, % lease), the average trade-in amount and the average percentage of trade-ins are also required.

• The data must include new motor vehicle leased by sales month, by vehicle model, by model year, and by the counts sold that month. For all these aggregates, detail regarding the average final vehicle price (less customer rebate), the average lease term, the average down payment, the average monthly payment, the average annual interest rate charged on leases and the average lease residual are also required.

• The data must include new motor vehicle sales for the top thirty five (35) vehicle models purchased (not leased), by sales month, by vehicle trim level (such as EX, DX, XLT), by model year, by certain urban centers (including Montreal, Toronto, Calgary/Edmonton and Vancouver), and by the counts sold that month. For all these aggregates, detail regarding the average final vehicle price paid by the customer (less customer rebate) and the percentage of trade-ins are also required.

• The data must include new motor vehicle leased for the top thirty five (35) vehicle models leased, by sales month, by vehicle trim level (such as EX, DX, XLT), by model year, by certain urban centers (including Montreal, Toronto, Calgary/Edmonton and Vancouver), and by the counts sold that month. For all these aggregates, detail regarding the average final vehicle price (less customer rebate), the average lease term, the average down payment, the average monthly payment, the average annual percentage rate of return and the average lease residual are also required.

• The data must include used motor vehicle sales sold by new car dealers by sales month, by vehicle model, and by the counts sold that month. For all these aggregates, detail regarding the average final vehicle price paid by the customer (less customer rebate) and the average vehicle age are also required.

• The data must have a good coverage of the economy. The new motor sales data are required to have a sample of at least 10% of the annual new motor vehicle sales. For the used motor vehicles, a required sample of 10% of the annual used motor vehicle sales by new motor vehicle dealer is also required.

4. Applicability of the trade agreement(s) to the procurement This procurement is subject to the following trade agreement(s): o Agreement on Internal Trade (AIT)

5. Justification for the Pre-Identified Supplier J.D. Power and Associates is the exclusive owner of the PIN database. No other qualified vendor currently exists.

Currently, in Canada, two other firms provide car-related data: Desrosiers Automotive Consultants Inc. and HIS Automotive (formerly Polk Canada). However these firms specialize in number of vehicle units instead of price-related data. Desrosiers Automotive Consultants Inc. does offer some revenue-related data, but those are based on Statistics Canada’s surveys.

6. Government Contracts Regulations Exception(s) The following exception to the Government Contracts Regulations is invoked for this procurement under subsection:

subsection 6(d) - "only one person is capable of performing the work".

7. Exclusions and/or Limited Tendering Reasons The following exclusion(s) and/or limited tendering reasons are invoked under the section of the trade agreement specified: Agreement on Internal Trade (AIT) Article 506.12(b) is applicable on the basis “where there is an absence of competition for technical reasons and the goods or services can be supplied only by a particular supplier and no alternative or substitute exists.”

8. Ownership of Intellectual Property Ownership of any Foreground Intellectual Property arising out of the proposed contract will vest in the Contractor.

9. Period of the proposed contract or delivery date The proposed contract period is estimated to commence in January 2014 and run until December 31, 2016. The monthly report deliverables include the following: • Report 1, Used Motor Vehicle Sales, contains transaction counts by model at the Canada level together with vehicle price, vehicle cost and vehicle age.

• Report 2, New Motor Vehicle Sales/leases, contains transaction counts by model, model year and type of sale at the Canada level together with MSRP, vehicle price less customer cash rebate, percentage of trade-in and value of trade-in.

• Report 3, Top 35 New Motor Vehicle Sold, contains transaction counts by model, model year, trim level and market (urban centers) together MSRP, vehicle price less customer cash rebate and percentage of trade-in.

• Report 4, New Motor Vehicle Leases, contains transaction counts by model and model year at the Canada level together with MSRP, vehicle price les customer cash rebate, term, down payment, monthly payment, annual percentage rate/internal rate of return and lease residual.

• Report 5, Top 35 New Motor Vehicle Leased, contains transaction counts by model, model year, trim level and market (urban centers) together MSRP, vehicle price less customer cash rebate, term, down payment, monthly payment, annual percentage rate/internal rate of return and lease residual.

10. Cost estimate of the proposed contract The estimated value of the contract is $148,800.00 (GST/HST extra).

11. Name and address of the pre-identified supplier J.D. Power and Associates 130 King Street West, Suite 1309 PO Box 486 Toronto, Ontario M5X 1E5

12. Suppliers' right to submit a statement of capabilities Suppliers who consider themselves fully qualified and available to provide the goods, services or construction services described in the ACAN 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.

13. Closing date for a submission of a statement of capabilities The closing date and time for accepting statements of capabilities is January 6, 2014 at 2:00 p.m. EST.

14. Inquiries and submission of statements of capabilities Inquiries and statements of capabilities are to be directed to: Michael Tsoukanas Statistics Canada 150 Tunney’s Pasture Driveway Main Building – SC 1405 H Ottawa, Ontario K1A 0T6

Tel.: 613-951-2488 Fax: 613-951-2073 macs-bids@statcan.gc.ca