PAD-PRE-AUTHORIZED DEBIT RECEIPTS

Trade Agreement: NONE Tendering Procedures: Attachment: None Competitive Procurement Strategy: Lowest/Lower Bid Comprehensive Land Claim Agreement: No Nature of Requirements: PROJECT TITLE

Pre-Authorized Debit (PADs) Services

OBJECTIVE

The primary objective is to provide a single service provider, hereafter referred to as Contractor, to process all Pre-Authorized Debit (PADs) in Canadian funds on behalf of Canada. A PAD is a transaction initiated by a government department or agency to commence pre-authorized deductions for fixed or variable amounts, on a recurring or sporadic basis, directly from a payor's bank account. PADs are authorized through written or electronic agreements between the payor and the initiating government department or agency.

SCOPE

As the Receiver General for Canada (RG), the Minister of Public Works and Government Services Canada (PWGSC) manages the operations of the federal treasury, including the receipt and payment of federal money into and out of the Consolidated Revenue Fund. PWGSC consolidates the management of the government's payments and revenue collection so as to achieve the most competitive rates for services available from Canada's financial institutions (Fis).

Although the RG collects remittances through many arrangements, the requirements described within this Statement of Work (SOW) are only for pre-authorized debit (PAD) services and are not to replace any other form of remittances made to the RG, such as cash; cheques; credit or debit cards; electronic funds transfers; or paper or electronic bill payments for which the RG has separate Contracts/arrangements.

A PAD is a transaction initiated by a government department or agency to commence pre-authorized deductions for fixed or variable amounts, on a recurring or sporadic basis, directly from a payor's bank account. PADs are authorized through written or electronic agreements between the payor and the initiating government department or agency.

The framework for processing PADs through the Canadian clearing system is set out in the Canadian Payments Association's (CPA) Rule H1 which outlines the procedures for the processing of PADs. The CPA Automated Clearing Settlement System (ACSS) Rules and Standards mentioned throughout this SOW, including Rules F5, H1, A4 and Standard 005, can be found on the CPA website at the following URL: http://cdnpay.ca/. The Contractor must comply with the CPA rules including any upcoming changes.

There are currently six departments and agencies using the PAD service. Other departments have expressed an interest, but would need to develop the interface between their systems and those of the RG. The current active departments are: Canada Revenue Agency (CRA) for personal and business income tax; Veterans Affairs Canada (VAC) for providing care to long term veterans at St. Anne de Bellevue Hospital; Atlantic Canada Opportunities Agency (ACOA) for their programs; Bank of Canada (BoC) for Canada Savings Bonds; Canadian Economic Development for Quebec Regions (CED) for their programs; and National Defense (DND) for its services. CRA and CED are working on initiatives to expand the use of PADs within the timeframe of the contract period. This was taken into consideration while developing the forecasted volumes provided in Annex A, Appendix 2 - Historical and Forecasted PAD Activity.

PERIOD OF THE CONTRACT

The services are to be delivered nationwide and are required from date of contract to March 31, 2016, with an irrevocable option on the part of Canada to extend the period of the Contract by (2) two additional (1) one year period and (1) one additional (4) four months transition period.

SECURITY REQUIREMENT

Security Requirement

1. The Contractor must, at all times during the performance of the Contract, 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 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 at 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 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)

MANDATORY TECHNICAL CRITERIA

MT1:The Bidder must be an Automated Clearing Settlement System (ACSS) direct clearer or ACSS group clearer member having direct clearing membership. The bidder should provide the necessary documentation to support compliance as applicable;

MT2: The Bidder must provide descriptions of 2 projects completed in the past 5 years, whereby the Bidder had processed PADS of at least $850,000 per project.

BASIS OF SELECTION

Lowest Evaluated Price

A bid must comply with the requirements of the bid solicitation and meet all mandatory evaluation criteria to be declared responsive.

The responsive bid with the lowest evaluated price will be recommended for award of a contract.

CONTRACTING AUTHORITY

The Contracting Authority for the Contract is

Jocelyne C Gagnon Supply Specialist Public Works and Government Services Canada Acquisitions Branch Professional Services and Procurement Directorate 11 Laurier Street, Phase III Gatineau, Québec K1A 0S5 Telephone: 819-956-0575 / Facsimile: 819-956-2675 E-mail address: jocelyne.c.gagnon@tpsgc-pwgsc.gc.ca Delivery Date: Above-mentioned

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

Documents may be submitted in either official language of Canada.