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Create free accountTrade Agreement: Agreement on Internal Trade (AIT) Tendering Procedures: All interested suppliers may submit a bid Attachment: YES (MERX) Electronic Competitive Procurement Strategy: Best Overall Proposal Comprehensive Land Claim Agreement: No Nature of Requirements: DISPOSAL BY DEMILITARIZATION
W8486-14YC03/A Derby, Sandra Telephone No. - (819) 956-0257 Fax No. - (819) 956-5650
Director Ammunition and Explosives Management and Engineering (DAEME) Letter of Interest (LOI)
The Department of National Defence/Canadian Forces (DND/CF) maintains a stockpile of ammunition. Within this inventory reside select natures of Ammunition and Explosives (A&E), Munitions Scrap (MS), Aids to Production (A to P) and Ammunition Salvage which are surplus to requirements or are obsolete. The DND/CF, therefore, has a requirement for a contracted Disposal by Demilitarization service capability.
A&E and A to P inventory is held to support a multitude of tasks, missions and training. Part of this inventory has reached the end of its life by being declared life expired, surplus or obsolete to requirements. In addition, accumulation of MS is expected to increase as a result of future Range Clearances/Unexploded Ordnance (UXO) activities and requires Disposal by Demilitarization before it may be safely released for public sale or final disposal.
Throughout the life cycle of A&E, items may become deteriorated, obsolete, or be declared surplus to requirement; resulting in A&E and A to P that require safe disposal. When disposal through sale is not possible or appropriate, the DND/CF is required to find approved acceptable methods to demilitarize A&E and A to P that are compliant with established explosive safety policies and standards and that are in line with International Traffic in Arms Regulations (ITAR), Controlled Goods Regulations (CGR), Explosive Safety, Intellectual Property (IP) and End User Certificates (EUC) while also complying with environmental laws and regulations. Historically, the disposal of this material has been achieved through sale, functioning, or destruction by open burning/open detonation (OB/OD) and the use of static small arms ammunition (SAA) type furnaces.
Due to a lack of Disposal by Demilitarization technologies and equipment capabilities available, the DND/CF continues to accumulate A&E, MS, A to P and salvage that requires it to undergo a safe Disposal by Demilitarization process that is environmentally acceptable prior to final disposal.
The disposal, Demilitarization and recycling of A&E, its subcomponents, MS, A to P and ammunition salvage is labour intensive and at times complex as there is no one particular procedure, process and/or equipment that is capable of solely meeting or exceeding all regulations and requirements.
1. To give an opportunity for Industry to provide input to aid DND/PWGSC in further developing the Statement of Work (SOW) documentation and Bid Evaluation methodology. Interested firms are encouraged to review the attached documentation and provide comments or questions including but not limited to the following:
i. The achievability of the requirements as outlined in the attached documentation; ii. Identification of any areas of the requirement which could be deemed to be medium or higher risk to achieve and why; iii. Any suggested changes to the SOW in order to improve clarity, feasibility and/or completeness; iv. Any suggested changes to the Request for Proposal (RFP) framework in order to improve clarity, feasibility and/or completeness; v. Any suggest changes to the Bid Evaluation in order to improve clarity, feasibility and/or completeness.
2. To give an opportunity for Industry to provide input to aid DND/PWGSC in further developing the Basis of Payment (BoP) and the Financial Terms and Conditions in the RFP Documentation. Interested firms are encouraged to review the attached documentation and provide responses to the following:
i. A 10-year, firm fixed-price contract with options for 2, 3-year additional extension periods is being considered. The DND/PWGSC requests that Industry indicate if this is viable and achievable. ii. Due to the varying locations of the stockpile of A&E, MS, A to P and Ammunition Salvage to be Demilitarized across the country and the varying locations of potential bidders and to ensure an equitable and transparent Bid Evaluation process is followed, the DND/PWGSC intends to request two financial proposals from Industry - one for the Processing of A&E, MS, A to P and Ammunition Salvage and one for Transportation. The Crown requests Industry to indicate if this is a viable and achievable pricing methodology. iii. The financial response expected from Industry for Processing will request all-inclusive (full-up) pricing (excluding the associated Transportation costs) for "Each", "Kit", "Kg", "Ft", "Metre" and "Box" units of measure for all natures within each of the 26 categories appearing in the Inventory List located at Appendix B4 and in the Draft BoP financial response sheet. Given that certain natures require a higher level of handling and unpacking - in many cases resulting in a secondary stream of packaging and Aids to Production waste to be processed - the DND/PWGSC requests that Industry indicate if this a viable and achievable pricing methodology. iv. The financial response expected from Industry for Transportation will request Full Truck-load (TL) and Less than Truck-load (LTL) costs from any of the various locations across Canada where A&E, MS, A to P and Ammunition Salvage are currently stockpiled to the Bidder's location. Although the DND/PWGSC cannot at this time provide the exact total quantity of truck-loads in each of these locations, the intent is to apply a point-rated scoring methodology to the Transportation Financial response during the Financial Bid Evaluation. The DND/PWGSC requests that Industry indicate if this a viable and achievable pricing methodology. v. The DND/PWGSC is strongly recommending that Transportation costs be based on road shipments only due to the fact that none of the locations where A&E, MS, A to P and Ammunition Salvage is currently stockpiled and awaiting demilitarization have a rail-siding or rail capability and the distance from these locations to the nearest Rail facility varies. Additionally, all railcars - regardless of their size and capacity - must be pre-certified for Dangerous Goods movement in accordance with Provincial, Territorial and Federal law in advance of loading as these locations do not have the requisite lifting capacity to perform the certification on-site at the time of loading. This represents a significant increase in the level of effort to ship by Intermodal rail and will undoubtedly result in increased costs which may equal or exceed that of shipping by road. A Rail Transportation cost model, however, would be acceptable providing Industry can fully substantiate their proposal. The DND/PWGSC requests that Industry comment on this methodology. vi. The DND/PWGSC intends to request first year costing by nature within each of the 26 categories appearing in the Inventory List located at Appendix B4 and in the Draft BoP financial response sheet. Canada's overall rate of inflation will then be applied to the first year costing for each additional year of the contract to determine the costing structure for out years and subsequently, the full contract value. Pricing will become effective at contract award regardless of the duration of the equipment commissioning period. The DND/PWGSC requests that Industry indicate if this a viable and achievable pricing methodology. vii. The DND/PWGSC intends to provide a Minimum Yearly Work Guarantee clause in the resulting contract. Canada's minimum obligation under the Contract will be to request Work up to the amount of the Minimum Yearly Work Guarantee value which will form Canada's minimum yearly financial obligation to the winning Bidder. In consideration of such an obligation, the Contractor agrees to stand in readiness throughout the Contract period to perform the Work described in the Contract. In the event that Canada does not request work up to value of the Minimum Yearly Work Guarantee during the period of the Contract, Canada will pay the Contractor the difference between the Minimum Yearly Work Guarantee value and the total cost of the Work requested. The Minimum Yearly Work Guarantee value clause will only become effective once the Contractor's facility is at Full Operating Capacity (FOC) or Initial Operating Capacity (IOC) such that the DND/PWGSC can begin tasking the Contractor to perform a portion of the work detailed in the Contract up to or exceeding this stated value. The DND/PWGSC requests that Industry indicate what the value of the Minimum Yearly Work Guarantee should be and if this a viable and achievable methodology? viii. The Financial Bid Evaluation will be based on a combination of Processing cost, Transportation cost and a Minimum Yearly Work Guarantee value. Industry is asked to comment on this methodology. ix. Industry is requested to provide Rough order of Magnitude costing for their proposed capability by completing the Draft BoP financial response sheets for both Processing and Transportation.
3. To advise Industry of a proposed Canadian Forces Ammunition Depot (CFAD) Dundurn, Saskatchewan site visit and allow Industry to register for the event which is planned for the 14th and 15th of May, 2014. Interested firms are to contact the DND Procurement Lead, Mr. Sean Burke DLP 3-1 (Sean.Burke@Forces.GC.CA, 819-994-0125) no later than 25 April 2014 with their intention to attend.
4. To allow Industry the opportunity to engage Crown representatives from both DND and Public Works and Government Services Canada (PWGSC) in bilateral discussions which will be held in Gatineau, QC during June 2014 (exact dates and times TBA). A formal schedule of these meetings will be compiled at a later date and provided to respondents. Interested firms are to contact the DLP Procurement Lead, Mr. Sean Burke DLP 3-1 (Sean.Burke@Forces.GC.CA, 819-994-0125) no later than 19 May 2014 with their request for a bilateral discussion.
DND will accept inquiries regarding the referenced documents throughout the LOI posting period. DND requests that a formal response to this LOI be submitted to the Procurement Lead, Mr. Sean Burke DLP 3-1 (Sean.Burke@Forces.GC.CA, 819-994-0125) no later than 20 May 2014.
Based on the information contained in the responses to this LOI, the outcome of the upcoming CFAD Dundurn, Saskatchewan site visit and the feedback received from Industry, the SOW, RFP and other aspects of this requirement may be altered which may affect the schedule. It is anticipated that a RFP for this requirement may be released by PWGSC late in 2014.
This is not a bid solicitation and a contract will not result from this LOI.
Requirements are subject to change which may be as a result of information provided in response to this LOI. Potential respondents are advised that any information submitted to Canada in response to this LOI may or may not be used by Canada in the development of a subsequent competitive RFP.
The issuance of this LOI does not create an obligation for Canada to issue a subsequent RFP and does not bind Canada - legally or otherwise - to enter into any agreement or to accept or reject any suggestions from responding organizations. Canada reserves the right to accept or reject any or all comments received.
Respondents to this LOI should clearly identify any information submitted that is to be considered as either commercial in confidence or proprietary.
PWGSC and DND reserve the right to have further discussions with any individual firms at any time to further discuss issues of mutual concern and/or to clarify elements of a firm's response to this LOI. A point of contact should be clearly identified to facilitate this.
Other than already specified herein, inquiries and communication related to this LOI must be directed to the PWGSC Contracting Authority. The PWGSC Contracting Authority is Sandra Derby:
Sandra.Derby@tpsgc-pwgsc.gc.ca 819-956-0257
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.
Not stated in the notice: procurement type, procurement method, selection criteria, region of delivery, region of opportunity, expected contract period, end user
No attachments listed in the open data.
No contact listed in the open data.