ARRISCAN Scanner update

Trade Agreement: NAFTA / CFTA / FTAs with Peru / Colombia / Panama / Korea Tendering Procedures: Generally only one firm has been invited to bid Non-Competitive Procurement Strategy: Interchangeable Parts Comprehensive Land Claim Agreement: No Vendor Name and Address: ARRI CANADA LIMITED 1200 Aerowood Drive Unit 29 Mississauga Ontario Canada L4W2S7 Nature of Requirements:

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 Film Board of Canada is to award a contract for the acquisition of the new version of the "ARRISCAN" XT film scanner. The update changes all electronic, optical and computer components of the system. The XT version is more optimized for the archive movie than the current version. Based on Arri's experience with their ALEXA camera, this new version integrates the optical sensor of the ALEXA XT. This new generation doubles the processing speed and speeds up scanning.

•Exchange of the following hardware components: ?Camera Head ?Image processing unit ?Power supply unit ?Host PC and new UPS ?Touch panel and Arri XT branding •Integration of Host PC in the Arriscan housing •Integration of an uninterruptable power supply (UPS) in the Arriscan housing •Fully compatible to all existing film gates •Renewed 12 month manufacturer warranty for exchange of new components

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 it meets the following requirements:

•Improved overall image quality for high density film scanning (print film, reversal, etc.) due to enhanced sensitivity, improved signal to noise ratio and extended dynamic range. ?Arriscan XT single exposure mode delivers the same or even better image quality as Arriscan Classic double exposure mode ?Optimized print film scanning mode and easy to use GUI setup •Scanning Speed of the Arriscan XT is up to sixty-five (65%) percent faster than the Arriscan Classic depending on the film transport settings adjusted according to the brittleness and fragility of the film stock. ?7.0 fps @ 3K, 2K resolution, dual gain Alexa XT HDR mode ?2.2 fps @ 6K, 4K resolution dual gain Alexa XT HDR mode •Reliable and robust Alexa factory camera calibration ?Speeds up the machine calibration procedure ?Less maintenance and readjustment required on-site.

4. Applicability of the trade agreement(s) to the procurement This procurement is subject to the following trade agreement: Canadian Free Trade Agreement (CFTA)

5. Justification for the Pre-Identified Supplier The proposed sole-source market is linked to a purchase and a prior acquisition strategy. In September 2008, the NFB began a transition to improve imaging equipment to support high-resolution HD, 2K, 4K, and 6K resolutions. Thus, a contract was awarded in a competitive process to the company ARRI Limited. Since this acquisition, the NFB has a digital installation with the ability to perform scanning, color calibration, restoration and archiving of current and archived film productions.

This contract relates to the improvement of the current Arri scanner, serial number: 107 which must be replaced by the hardware components: (camera head, image processing unit, light box, power supply, host PC and new power supply uninterrupted, touch screen and distinctive brand Arriscan XT). There is no other manufacturer that offers an equivalent device for backward compatibility and smooth integration into the digital workflow. No other alternatives have been considered in light of the licenses held by Arri Canada Limited.

In addition, the proposal takes into account the common modes of operation and compatibility with the Arri scanner currently in production and post-production facilities. These devices are needed for logistical and compatibility reasons, as the use of a non-standard device would result in operational, workflow and maintenance issues, as well as additional costs.

6. Government Contracts Regulations Exception(s) The following exception(s) to the Government Contracts Regulations is invoked for this procurement under subsection: 6(d) - "only one person-enterprise 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 North American Free Trade Agreement (NAFTA) - Annex 1001.1a-1 Federal Government entities.

8. Period of the proposed contract or delivery date The ARRISCAN XT must be delivered on January 17th 2019.

9. Cost estimate of the proposed contract The estimated value of the contract is between 100 000$ and 150 000$ (GST/HST included).

10. Name and address of the pre-identified supplier ARRI Canada Limited 1200 Aerowood Drive, Unit 29 Mississauga, ON, Canada L4W 2S7

11. 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.

12. Closing date for a submission of a statement of capabilities The closing date and time for accepting statements of capabilities is October 17th, 2019 at 2 pm (EST).

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

Marc Jr Joseph Senior Supply Officer Acquisitions Directorate - Quebec Region Public Services and Procurement Canada / Government of Canada marc.joseph@tpsgc-pwgsc.gc.ca / Tel: (514) 708-8426

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.