Ecological Gifts Program: Appraisal Review Panel Manager (Chair, Panel, and Operations) (2013-2017)

Ecological Gifts Program: Appraisal Review Panel Manager (Chair, Panel, and Operations) (2013-2017)


The bid closing date of this solicitation is now changed to July 3, 2013

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Mandatory Requirements:

Professional Credentials: 
The Bidder must demonstrate that the individual identified as the Chair has Current* designation as Accredited Appraiser Canadian Institute (AACI).

*NOTE: Current designation means that the resource is currently, as of the time of bid submission, a practicing member who qualifies for and carries appraiser liability insurance. The resource’s membership status must be clearly indicated in the proposal.

The Bidder must demonstrate that each proposed resource conducting appraisal reviews as ARP members or as Ad hoc Appraisal Reviewers have current* designation as Accredited Appraiser Canadian Institute (AACI), or current designation as Charter Appraiser (C.App/EA) for the Panel member who represents Quebec region.

*NOTE: Current designation means that the resource is currently, as of the time of bid submission, a practicing member who qualifies for and carries appraiser liability insurance. Each resource’s membership status must be clearly indicated in the proposal.

The Bidder must propose at least one ARP member for each of Environment Canada’s five regions (Atlantic Region, Ontario Region, Pacific and Yukon Region, Prairie and Northern Region and Quebec Region). The same person cannot be proposed for multiple regions.

Professional Work Experience:

The Bidder must demonstrate that it has at least three (3) years of direct, significant experience in project management and administration.

The Bidder must demonstrate that the individual identified as the Chair has at least fifteen (15) years of experience as a senior appraiser in a fee appraisal organization, during which time he/she has:

a) Prepared valuations of rural real estate that have included conservation lands with natural features such as wetlands, estuaries, parkland, woodlands; and,

b) Performed peer-reviews of appraisal reports valuing rural real estate that have included conservation lands with natural features such as wetlands, estuaries, parkland, woodlands.

The Bidder must demonstrate that each proposed resource conducting appraisal reviews as an ARP member or as an Ad hoc Appraisal Reviewer has at least seven (7) years of experience as an appraiser in a fee appraisal organization, during which time he/she has: 

a) Prepared valuations of rural real estate that have included conservation lands with natural features such as wetlands, estuaries, parkland, woodlands; and,

b) Performed peer-reviews of appraisal reports valuing rural real estate that have included conservation lands with natural features such as wetlands, estuaries, parkland, woodlands.

Security:

The Bidder must hold a valid Designated Organization Screening (DOS), with approved document safeguarding at the level of PROTECTED B issued by the Canadian Industrial Security Directorate (CISD), Public Works and Government Services Canada (PWGSC) at the time of response to this request for proposal. In order to demonstrate this requirement, the bidder must provide a copy of the confirmation letter from CISD for the DOS with Document Safeguarding – PROTECTED B registration.

Each resource proposed by the bidder must hold a security accreditation to the level of Reliability at the time of response to this request for proposal. In order to demonstrate this requirement, each resource must be listed, along with their clearance level and the security clearance number or a confirmation letter from the issuing department.


Intellectual Property:

The Crown has determined that any intellectual property arising from the performance of the Work under the Contract will vest in Canada, on the following grounds: 

6.2     Where statutes, regulations, or prior obligations of the Crown to a third party or parties preclude Contractor ownership of the Foreground Intellectual Property.

    Purpose: 
    
Environment Canada would like to obtain the services of a contractor to assemble a team of experienced appraisers, and manage the administration, operations, appraisal review, appraiser training, and reporting requirements of the Ecological Gifts Program’s Appraisal Review Panel under the direction of Environment Canada’s Ecological Gifts Program (EGP) National Secretariat.

Background: 

Canada’s Ecological Gifts Program provides a way for Canadians with ecologically sensitive land to protect nature and leave a legacy for future generations. Made possible by the terms of the Income Tax Act of Canada and the Taxation Act in Quebec, it offers significant tax benefits to landowners who donate land or a partial interest in land to a qualified recipient. Recipients ensure that the land’s biodiversity and environmental heritage are conserved in perpetuity.

Empowered under the Income Tax Act, the Minister of the Environment is responsible for approving the eligibility of charitable organizations to receive ecological gifts, certifying ecological sensitivity and determining the fair market value for all ecological gifts. On October 4, 2000, Environment Canada (EC) announced the EGP’s Appraisal Review and Determination Process (ARDP) and the formation of the Appraisal Review Panel (ARP). As an integral part of the ARDP, Environment Canada (EC) developed a rigorous, fully accountable fair market value certification process, which was called for in the February 2000 Budget. 

The ARP is critical in carrying out ARDP for the EGP. The ARP is responsible for making recommendations to the federal Minister of the Environment on the fair market value of ecological gifts made under the Income Tax Act. The Minister’s certification of the fair market value of the properties for tax purposes is primarily based on the ARP’s recommendations. Due to the possibility that a certified value could be challenged in the Tax Court of Canada, the ARP must be comprised of independent, knowledgeable and experienced real estate appraisal professionals. This will ensure that the values recommended are reliable and will allow Panel members to serve as expert witnesses on behalf of the Minister of the Environment in Tax Court proceedings should that be necessary.

Environment Canada is seeking proposals from professional real estate appraisers and/or project managers across Canada to manage and administer the ARP supporting the EGP. The successful bidder will ensure that a team of experts on the valuation of conservation lands (including conservation easements, covenants and servitudes) is identified and available to undertake the work for Environment Canada and ensure that the ARP’s consolidated expertise covers all of the EGP’s appraisal review needs and appraiser training requirements. 

The contractor ultimately engaged in this contract must clearly identify the sole individual who will be assigned the responsibilities of the Panel Chair of the ARP (Chair) who in turn will be responsible for managing a team of five qualified real estate appraisal professionals, including the Chair, from across Canada assembled by the contractor to implement the Appraisal Review Panel Operational Guidelines (2008). It is important to note that the contractor and the sole person assigned the responsibilities of the Chair may be the same individual.

NOTE: An additional member of the ARP is the Legal Policy Specialist. This position will be contracted separately by Environment Canada to participate as a member of the ARP. The Legal Policy Specialist will be engaged on an as-needed basis at the discretion of Environment Canada in consultation with the Chair.

Scope: 

The scope of this contract is to support the EGP in certifying the fair market value of ecological gifts through the establishment and management of the EGP ARP.

Objectives: 

The Contractor will: 

1.    Assemble a team of accredited real estate appraisers from across Canada;
2.    Make recommendations of fair market value to the Minister of the Environment;
3.    Develop and implement relevant information and training sessions as required by the program; and,
4.    Develop and implement policy related to improved ARP function.
    
Statement of Work:

Environment Canada requires a contractor to assemble a team of qualified real estate appraisers to form the independent ARP for the EGP and to administer the requirements of the Appraisal Review Panel Operational Guidelines (2008). The overall purpose of the ARP is to make recommendations to the federal Minister of the Environment regarding the fair market value of ecological gifts. The Contractor must identify one qualified senior appraiser from the proposed team who will lead and manage the operations of the ARP for the EGP (the Chair) for the entire contract period. The Contractor and the sole person assigned the responsibilities of the Chair may be the same individual.

The selected Contractor will have the following responsibilities:

1.    The Contractor will be responsible for assembling a team of experienced real estate appraisers who currently possess the designation of Accredited Appraiser Canadian Institute (AACI), or Chartered Appraiser (C.App/EA) in the province of Quebec, and managing the ARP membership to ensure that each of Environment Canada’s five regions (Atlantic Region, Ontario Region, Pacific and Yukon Region, Prairie and Northern Region and Quebec Region) are represented by at least one ARP member. Similarly, the Contractor will be responsible for assembling a team of additional Ad hoc appraisers to undertake appraisal reviews in high-volume geographical areas as deemed necessary by the Chair. The Contractor will be solely personally responsible for quality control, value for services rendered, timeliness, and payment for services. One ARP member may be assigned the responsibilities of Ontario Region ARP Coordinator (at the discretion of the Chair) in order to assist the Chair in coordinating the high volume of appraisal reviews for this particular region.

2.    The Contractor shall remain solely personally responsible to Environment Canada for any work conducted by the Chair and any appraisal review work or other work that the ARP may engage in including the following:

a.    preparing and submitting a recommendation of fair market value and the associated documentation to support this recommendation (including the reasons for the ARP’s recommended fair market value differing from the value recommended in the valuation report submitted with the donor’s application) to the EGP National Secretariat in accordance with the Appraisal Review Panel Operational Guidelines (2008);

b.    preparing and submitting subsequent recommendations of fair market value of redetermined ecological gifts and the associated documentation to support the redetermined value (including the reasons for the redetermined value as compared to the value stated in the original appraisal report and the value in the Notice of Determination of Fair Market Value of an Ecological Gift) to the EGP National Secretariat in accordance with the Appraisal Review Panel Operational Guidelines (2008) within 60 days from the conclusion of the meeting of the Redetermination Committee.

3.    The Contractor must ensure that the Chair and all appraisers engaged by the Contractor to conduct work related to the ARP operations adhere to all guidelines set forth in the Appraisal Review Panel Operational Guidelines (2008). This document also includes specific guidelines on the conduct of the ARP, conflict of interest rules for the ARP members and Ad hoc appraisal reviewers, restrictions related to the use of ARP information, and restrictions on what types of communications with donors, recipients, the media, and the general public are authorized by Environment Canada.

4.    The Contractor will be responsible for managing the administration, training and operation of the ARP, fulfilling the Panel’s reporting requirements for the ARP operations, preparing materials for information and training purposes, and delivering training, information presentations, and other communications as directed and authorized by Environment Canada.

5.    The Contractor will be solely personally responsible for the efficient and effective administration of the ARP including all communications, training, and delegation of review assignments to members of the ARP or Ad hoc appraisal reviewers. All expenditures related to the Panel operations must be invoiced to Environment Canada.

6.    The Contractor will be required to budget for the following potential travel requirements involving the Chair and ARP members:

a.    Attendance of the Chair and all ARP members at up to one meeting of the ARP per year;
b.    Attendance of the Chair and all or most of the ARP members at up to two Redetermination Committee meetings of the ARP per year (note that these potential meetings may be conducted in association with ARP meetings);
c.    Attendance of the Chair at up to two workshops or conferences per year in Canada; 
d.    Attendance of the Chair at up to one meeting per year at Environment Canada Headquarters in Gatineau, Quebec on an as-requested basis by the EGP National Coordinator.

7.    The Contractor and the Chair (if not the same individual) must be readily available by telephone, email, fax, and if requested, in person, to consult with the EGP National Coordinator or other staff of the EGP on an as-needed basis. On a weekly basis, an appraisal review operations meeting will be conducted via teleconference with the National Secretariat to discuss the status of active files and any issues.

8.    The contractor must complete an Appraisal Review Tracking Form for every appraisal report that the ARP reviews and must submit the Form along with the Chair’s Determination of Fair Market Value documentation to the EGP National Secretariat at the completion of every file review. The information that is to be added to the Appraisal Review Tracking Form includes the following:

a.    ARP Coordinator
b.    Date report received by ARP
c.    Name of Reviewer assigned to review the appraisal
d.    Date appraisal referred to Reviewer
e.    Date requested Secretariat to forward appraisal to Reviewer
f.    Date received by Reviewer
g.    Notes
h.    Date review completed
i.    Recommended Fair Market Value
j.    Date ARP Coordinator advises Chair that review is complete
k.    Date Chair advises Minister of Panel recommendation 
l.    Reason for the variance from original appraisal report (if any)
m.    Comments
n.    Names of any additional experts contracted for the review of the file
o.    Total fees paid to these experts 
p.    Rationale for requiring additional expertise for the review of this/these valuation report(s)

9.    The contractor must complete and submit a semi-annual report to the National Secretariat that itemizes and describes any requests for redeterminations received during the previous six months. The report must summarize the proposed date, location, and intended participants for a meeting of the Redetermination Committee, with the objective of combining multiple requests for redetermination into a single meeting agenda.

10.    The contractor will be responsible for the preparation of an ARP Summary Report to be produced annually for the EGP National Coordinator, which outlines and summarizes the information on the operations of the ARP during the previous fiscal year and presents recommendations for improvements to the Appraisal Review and Determination Process.

11.    The contractor must produce itemized invoices which list the number of hours and per diem rates billed for the following tasks during the specified billing period:

a.    the costs for the operations of the ARP including administration, training, development of communications products and ARP policy development, itemized for each task by individual person including their hours and their per diem rates;;
b.    for each appraisal report reviewed for every ecological gift processed:
-    the work conducted by the Chair, including hours and per diem rate;
- the appraisal review work conducted by a qualified appraiser, itemized by individual person, including their hours and their per diem rates;
- the professional services of any specialists or experts engaged in the gift review itemized by individual person;
c.    the travel expenditures and receipts for reimbursement in accordance with current Treasury Board policies and guidelines itemized by individual traveler; and,
d.    a justification of the reasons for any higher than average charges or travel expenditures.



12.    The Contractor will be solely personally responsible for the work performed by his/her team of experts who are engaged in the development and professional delivery of training and communication materials designed for specific target audiences at specific events or venues as directed and authorized by the EGP National Coordinator. The contractor is responsible for providing the necessary training to qualified appraisers engaged in the Panel including the Chair and Ad hoc appraisal reviewers to ensure that all the policies and procedures of the ARP are implemented in a cost-effective manner and in accordance with the Appraisal Review Panel Operational Guidelines (2008).

13.    The Contractor will be responsible for policy development related to the Appraisal Review and Determination Process and for identifying the need for and preparing updates to the Appraisal Review Panel Operational Guidelines (2008) in consultation with the EGP National Coordinator.

14.    ARP members and Ad hoc appraisal reviewers will be responsible for undertaking reviews of valuation reports as may be assigned to them by the Chair, for managing their time and work loads appropriately, and for undertaking each review in a timely and efficient manner.

The Chair will have the following responsibilities:

The Chair will be responsible for preparing expert recommendations on the fair market value of proposed donations of ecologically sensitive lands, or partial interests in such lands, to the federal Minister of the Environment. In preparing the expert recommendations, the Chair will be required to fulfill the following responsibilities:

1.    The Chair will be responsible for ensuring that all valuation reports and recommendations are reviewed in accordance with the Standards of the Appraisal Institute of Canada, or the Ordre des évaluateurs agréés du Québec (for donations in Quebec), and the EGP’s Guidelines for Appraisals. Similarly, the Chair will be responsible for ensuring that each appraisal review is assigned to a qualified appraiser who is well suited and available to perform the appraisal review for the particular region in which the ecological gift is located and that the review be conducted in compliance with the Appraisal Review Panel Operational Guidelines (2008).

2.    The Chair will ensure that the work related to the ARP operations in each region of the country is properly distributed to an appropriate member of the team of experienced ARP members or other Ad hoc appraisal reviewers.

3.    For each completed appraisal review, the Chair must submit an ARP recommendation of fair market value via a letter to the National Secretariat of the EGP along with supporting documentation. 

4.    When a donor indicates that she/he does not accept the federal Minister’s determination of fair market value and requests a redetermination of the fair market value, the Chair must assemble a Redetermination Committee to meet within four months of the request to review and reconsider the original application, including any new information submitted by the donor(s) and their representatives, and make a second recommendation on the fair market value to the Minister of the Environment. At a minimum, the Redetermination Committee should consist of the Chair, the appraisal reviewer who reviewed the original submission and at least one other member of the ARP as deemed necessary and as directed by the Chair. The timing and location of meetings and the membership of the Redetermination Committee shall be determined in collaboration with the EGP National Coordinator. 

5.    The Chair is required to ensure that all tracking sheets, letters, memos and supporting documentation are completed and delivered to the National Secretariat of the EGP within the timelines specified in the Appraisal Review Panel Operational Guidelines (2008). 



Duration of Contract:

Contract award to March 31, 2017

A copy of the Appraisal Review Panel Operational Guidelines (2008) is attached (pdf copy), which will provide bidders with a sufficient understanding of the roles, responsibilities and procedures of the Chair and Appraisal Review Panel as currently structured for the EGP (Ecological Gifts Program)


Project Description and Deliverables:


Identifying and securing a team of professional real estate appraisers from across Canada 
• Identifying appraisal review resources (Panel participation, reviewer participation, other valuation professionals) as required.
• Producing an EC-approved statement of work, advertising mechanism and evaluation criteria for additional Ad hoc reviewer resource needs.
• Inviting qualified professionals to provide Ad hoc appraisal reviewer services described in the Statement of Work using professional associations, institutes and other medium deemed necessary. 
• Issuing, administering and reporting on the subcontracts for required resources.

Making fair market value recommendations to the Minister of the Environment
• Reviewing valuation reports for ecological gifts in accordance with the Standards of the Appraisal Institute of Canada, the l’Ordre des évaluateurs agréés du Québec (for donations in Quebec), and the Ecological Gifts Program’s Appraisal Review and Determination Process.
• Making recommendations to the Minister of the Environment or the Minister’s designate about the fair market value of ecological gifts.
• Recommending a value for the Notice of Determination of the Fair Market Value of an Ecological Gift, to be issued to donors by Environment Canada, in accordance with the Appraisal Review and Determination Process on the fair market value of ecological gifts. 
• Recommending a value for the Notice of Redetermination of the Fair Market Value of an Ecological Gift, to be issued to donors by Environment Canada, in accordance with the Appraisal Review and Determination Process on the fair market value of ecological gifts.

Panel administration, communication and training
• Leading the communication, policy development and training initiatives on behalf of the Appraisal Review Panel in cooperation with Environment Canada.
• Implementing the policies and procedures of the Appraisal Review Panel as outlined in the Operational Guidelines of the Appraisal Review Panel (December 2008, or subsequent versions of this guideline document).
• Updating as required the Operational Guidelines of the Appraisal Review Panel (2008) in consultation with Environment Canada.
• Preparing a Summary Report that highlights the trends and activities of the Appraisal Review Panel and delivering this report to Environment Canada.
• Making recommendations about improvements to the operation of the Appraisal Review Panel and the Appraisal Review and Determination Process and, where appropriate, including those recommendations in the Summary Report.
• In the last year of the contract (Year 4; 2016-2017), to act as a resource to both Environment Canada and the subsequent contractor responsible for assembling and managing the Appraisal Review Panel and administering the requirements of the Operational Guidelines of the Appraisal Review Panel. NOTE: In the event that the Contractor is deemed to be the successful bidder in the subsequent competitive bid process for the next-anticipated contract term spanning April 1, 2016 through to March 31, 2020, then this contract will terminate once the new contract begins.

Project Cost 

Environment Canada has estimated total funding for this contract, over four fiscal years (assuming that year four is a transition year to a new panel), at a maximum amount of $1,230,000.00 excluding GST/HST (from contract award to March 31, 2017) broken down as follows. The Contactor will be engaged on an as-needed basis at the discretion of Environment Canada. Environment Canada makes no guarantee of a minimum amount of work that will result from this contact – compensation will be based on the amount of work performed, submitted, received and reviewed by the EGP National Coordinator at Environment Canada.

The fiscal year for the Government of Canada ends on March 31, and for contracts which span more than one fiscal year, the contractor will be required to specify the level of effort in fees and expenses achievable between the date of the contract and March 31 of one year as well as April 1 and the end of the contract in subsequent fiscal years.

Fiscal Year 1 – from contract award to March 31, 2014
•    Up to a maximum amount of $ 303 000 for professional fees
•    Up to a maximum amount of $25 000 for travel expenses (original receipts required)
•    
Total: $ 328 000

Fiscal year 2 - from April 1, 2014 to March 31, 2015
•    Up to a maximum amount of $ 387 000 for professional fees
•    Up to a maximum amount of $ 30 000 for travel expenses (original receipts required)
•    
Total: $ 417 000

Fiscal year 3 - from April 1, 2015 to March 31, 2016
•    Up to a maximum amount of $ 406 000 for professional fees
•    Up to a maximum amount of $ 30 000 for travel expenses (original receipts required)
•    
Total: $ 436 000

Fiscal year 4- from April 1, 2016 to March 31, 2017
•    Up to a maximum amount of $ 45 000 for professional fees
•    Up to a maximum amount of $ 4 000 for travel expenses (original receipts required)
•    
Total: $49 000

Estimated Maximum Total Value of Contract: 
$1,230,000 (excluding GST/HST)