Heat Exchanger

Trade Agreement: NAFTA/AIT/Canada FTAs with Peru/Colombia/Panama Tendering Procedures: All interested suppliers may submit a bid Attachment: None Non-Competitive Procurement Strategy: Exclusive Rights Comprehensive Land Claim Agreement: No Vendor Name and Address: XCHANGER INC. 1401 South 7th St Hopkins Minnesota United States 55343 Nature of Requirements: Title: Heat Exchanger

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, a contract will be awarded to the pre-identified supplier

2. Requirement description The National Research Council (NRC) has a requirement for a heat exchanger in order to provide the required environment to perform certification tests including water ingestion, hail ingestion, ice slab ingestion, icing conditions operation tests, altitude conditions operation tests, etc. on aircraft engines for its major clients around the world.

NRC requires a heat exchanger that will drop the temperature for an additional 330C (from the current minus 230C down to minus 560C) at a mass airflow rate of 4.5kg/sec (around 8000 scfm or 226,535 litres per minute). This heat exchanger must be capable of operating in an altitude chamber with large pressure and temperature differentials. The heat exchanger also has to withstand continuous operation for at least 8 hours in such conditions without maintenance or failure.

3. Criteria for assessment of the statement of capabilities (Minimum Essential Requirements) Any interested supplier must demonstrate by way of a statement of capabilities that its product meets the following capabilites:

operate in an altitude chamber capable of high pressure and temperature differentials, drop the temperature for additional 33oC (from minus 23oC down to minus 56oC) at the mass airflow rate of 4.5kg/sec (around 8000 scfm or 226,535 litres/min) and withstand continuous operation for at least 8 hours in such conditions without shutting down due to maintenance or failure.

4. Applicability of the trade agreement(s) to the procurement This procurement is subject to the following trade agreement(s): Agreement on Internal Trade (AIT) North American Free Trade Agreement (NAFTA) Canada/USA

5. Justification of the Pre-Identified Supplier XChanger Inc. is considered to be the only known source that meets the technical requirement description.

6. Government Contracts Regulations Exception The following exception to the Government Contracts Regulations is invoked for the procurement under 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:

Agreement on Internal Trade (AIT) - Article 506 subsection 12 (b) "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." North American Free Trade Agreement (NAFTA) - Article 1016 subsection 2 (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."

8. Delivery date: Heat Exchanger is to be delivered to NRC in Ottawa, Ontario by March 31, 2015 or the best delivery offered by the supplier.

9. Cost estimate of the proposed contract The total all-inclusive estimated value of the contract is $37,410.00CDN (GST/HST extra).

10. Name and address of the pre-identified supplier XChanger Inc. 1401 7th Street S. Hopkins, MN 55343

11. Suppliers' right to submit a statement of capabilities Suppliers who consider themselves fully qualified and available to meet the goods described in the ACAN may submit 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.

12. Closing date for a submission of a statement of capabilities The closing date and time for accepting statements of capabilities is November 24, 2014 at 14:00 EST.

13. Inquiries and submission of statement of capabilities Inquiries and statements of capabilities are to be directed to:

Bobbi MacLeod Place du Portage, Phase III, 7A2, 11 Laurier Street Gatineau, Quebec K1A 0S5 bobbi.macleod@tpsgc-pwgsc.gc.ca Telephone No. - (819) 956-3949 Fascimile No. - (819) 956-5227 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.