ROYALTY RETURN AUDIT SERVICES

NOTICE OF PROPOSED PROCUREMENT (NPP)

PROFESSIONAL AUDIT SUPPORT SERVICES (PASS) SUPPLY ARRANGEMENT

Solicitation No.: A7136-13-0005 Contracting Authority: Christian Martineau Telephone No.: 819-956-1601 Fax No.: 819-953-7721 E-mail Address: Christian.Martineau@aadnc-aandc.gc.ca

This RFP is only for pre-qualified Suppliers for Stream 5: External Audit against Professional Audit Support Services (PASS) Supply Arrangement (E60ZG-060004)

List of pre-qualified suppliers invited to bid

1. Samson & Associés 2. BDO Dunwoody LLP 3. Collins Barrow Management Consultants 4. Deloitte & Touche LLP 5. Ernst & Young LLP 6. KPMG LLP 7. Meyers Norris Penny LLP 8. Pricewaterhouse Coopers LLP 9. Raymond Chabot Grant Thornton 10. Collins Barrow Edmonton LLP 11. Marcil Lavallée 12. Welch & Company LLP

DESCRIPTION OF REQUIREMENT

ROYALTY RETURN AUDIT SERVICES

In the Northwest Territories and Nunavut the federal government, through the Department of Indian Affairs and Northern Development Canada (DIAND), is responsible for the collection and assessment of royalties for mineral resources. As such, DIAND is responsible for the administration of the Territorial Lands Act.

The Territorial Lands Act gives the Governor-in-Council the authority to “...make regulations for the leasing of mining rights in, under or on territorial lands and the payment of royalties therefore,...”. In the Northwest Territories and Nunavut, the Northwest Territories and Nunavut Mining Regulations provide for the disposition of mineral rights for most minerals, other than industrial and quarry minerals, coal, petroleum and related hydrocarbons, in return for payment of a royalty to the Crown.

Professional expertise in auditing is routinely required to ensure that mining operations adhere to the mining royalty regime to generate a fair return to the Crown from extraction of Crown mineral or mineral-bearing substances.

DIAND is therefore soliciting bids for two (2) three (3) year contracts for the provision of auditing services related to mining operations in the Northwest Territories and Nunavut .

Bidders will be assessed on their professional qualifications and previous experience in auditing mining companies and having completed diamond royalty audits as well as experience with mining legislation i.e. the Northwest Territories and Nunavut Mining Regulations; the number, qualifications and experience of personnel to be made available or to be assigned; the depth and detail of their proposal which indicates an understanding of the size, complexity and time constraints of the work; proposed time schedule for the work in relation to the department’s time frame; management of the work, delegation of responsibility, work plans, schedule and cost control, reporting and quality control; the methodology proposed for the performance of the work; any innovative or constructive ideas presented and costs. As well, for evaluation purposes, Bidders are required to submit a per diem costs for the partner, manager, senior auditor, auditor and junior auditor.

DURATION OF CONTRACT The period of the Contract is from contract award to August 31, 2017 inclusive. EVALUATION PROCESS AND SELECTION METHODOLOGY

Only compliant Proposals will be considered.

Only Proposals that have met all Mandatory Requirements, and have achieved or exceeded the required minimum score for the Point-Rated Criteria will be considered. All Proposals will be rated on technical acceptability before price is considered. The contract will be awarded based on a determination of Best Value taking into account both the technical merit of the Proposals and the Financial Evaluation. To arrive at an overall score achieved by a Bidder, technical merit will be valued at 70% of the Proposal and price will be valued at 30% of the Proposal. Best value is defined as the highest combined total score SECURITY REQUIREMENTS 1. The Contractor/Offeror must, at all times during the performance of the Contract/Standing Offer/Supply Arrangement, hold a valid Designated Organization Screening (DOS) with approved Document Safeguarding at the level of PROTECTED B, issued by the Canadian Industrial Security Directorate, Public Works and Government Services Canada. 2. The Contractor/Offeror 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). 3. The Contractor 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 up to 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 Contractor/Offeror 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).

CONFIDENTIAL INFORMATION FOR BIDDING

In order to prepare a bid in response to the bid solicitation, suppliers must have access to information that is confidential or proprietary to Canada or a third party. It is a condition of the bid solicitation that bidders sign a Confidentiality Agreement substantially in the form set out in Attachment 1 to Part 2, Confidentiality Agreement, before it is provided to them as part of the bid solicitation.

Suppliers must submit a signed confidentiality agreement, substantially in the form set out below (Attachment 1 to Part 2), before being given access to the bid solicitation, as it contains information that is confidential or proprietary to Canada or a third party.