Trade Impact Evaluation

1.0 Definition of the requirement

The Atlantic Canada Opportunities Agency (ACOA) is seeking to obtain detailed, sector-specific economic research related to the impact of United States tariffs on each of the Atlantic Canadian provinces from the contractor to assist in policy and program development within the Agency.

For each Atlantic Canadian province (Newfoundland and Labrador, Prince Edward Island, Nova Scotia and New Brunswick), the contractor is to provide one direct impact assessment of tariff projected increases, including a review of product movements and country market share, and the direct, indirect and induced economic impact on provincial economies. During this work, consulting and advisory sessions are to be provided to Agency analysts for each Atlantic province (4 sessions in total), including one final consulting and advisory session to explain model results.

2.0 Applicability of the trade agreement(s) to the procurement

This procurement is subject to the following trade agreement(s)

Canadian Free Trade Agreement (CFTA) Canada-Chile Free Trade Agreement (CCFTA) Canada-Colombia Free Trade Agreement Canada-Honduras Free Trade Agreement Canada-Panama Free Trade Agreement

3.0 Justification for the Pre-Identified Supplier

The contractor is the sole provider in Atlantic Canada for econometric modeling of trade tariff impacts with the desired level of industry detail (covering 240 industries). The contractor has worked with industry stakeholders in Atlantic Canada to guide the development of this model, to understand the effects of imposed tariffs on the affected sectors in Atlantic Canada and on other parts of the regional economy, and to support actions that can help mitigate these impacts.

While existing macroeconomic models and research are focused on national impacts and Canada’s international trade position, the Agency is focused on detailed sectoral impacts specific to Atlantic Canadian provinces. The proposed Contractor is the only provider for this information with the required level of detail by industry sectors.

There is no alternative supplier for the same or equivalent material or support. ACOA officials looked into whether the desired information could be produced internally by Global Affairs Canada (GAC). After consulting with GAC officials, it was concluded that their model would not provide the level of regional detail needed regarding the industry sectors affected by tariff impacts. Due to the uncertainty and fluidity of when tariff increases might occur, consultations with Atlantic industry officials require established industry contacts and current, in-depth knowledge of major Atlantic industries, including significant experience in Atlantic economic research and analysis, which the contractor has. The contractor is the only provider of this information with the required level of detail for Atlantic industry sectors.

The contractor has exclusive ownership of its input output impact model, including the Armington substitution elasticities to be used to undertake the economic impact assessment of proposed tariff increases. The Crown will be able to use the model results and IP intellectual property generated by the contractor’s model for policy and program development within the Agency.

4.0 Government Contracts Regulations Exception(s)

The following exception(s) to the Government Contracts Regulations is (are) invoked for this procurement under subsection 6 (d) where only one person is capable of performing the contract.

5.0 Period of the proposed contract or delivery date

The proposed contract is for a period of 1 year, from date of award.

6.0 Cost estimate of the proposed contract

The estimated value of the contract, including option(s), is $40,000.00, excluding applicable taxes.

7.0 Name and address of the pre-identified supplier

Canmac Economics Limited 497 Sackville Drive Lower Sackville, NS B4C 2S1

8.0 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.

9.0 Inquiries and submission of statements of capabilities

Inquiries and statements of capabilities are to be directed to: Gary LeBlanc, Contracting Support Officer Atlantic Canada Opportunities Agency tenders-soumissions@acoa-apeca.gc.ca