CGC Producer Payment Protection Model

CGC Producer Payment Protection Model IMPORTANT NOTICE TO SUPPLIERS Government of Canada is moving its Government Electronic Tendering Service from MERX to Buyandsell.gc.ca/tenders on June 1, 2013. Starting June 1, 2013, federal government tenders (tender notices and bid solicitation documents) will be published and available free of charge on a Government of Canada Web site on Buyandsell.gc.ca/tenders. The Government Electronic Tendering Service on Buyandsell.gc.ca/tenders will be the sole authoritative source for Government of Canada tenders that are subject to trade agreements or subject to departmental policies that require public advertising of tenders. Get more details in the Frequently Asked Questions section of Buyandsell.gc.ca/tenders. After June 1, 2013, all tenders and related documents and amendments will be on Buyandsell.gc.ca/tenders. On June 1, 2013, suppliers must go to Buyandsell.gc.ca/tenders to check for amendments to any tender opportunities that they have been following on MERX prior to June 1. Bookmark Buyandsell.gc.ca/tenders now to be ready for June 1! PROJECT TITLE CGC Producer Payment Protection Model OBJECTIVE The Canadian Grain Commission (CGC) is looking to qualify one (1) supplier who it is expected will establish a Master Insurance Policy Agreement for the provision of an insurance-based producer payment protection model (the Model) for eligible grain producers. It will be a requirement as part of licensing under the Canada Grain Act (CGA) and Canada Grain Regulations for CGC licensees to obtain security through insurance as part of this model. BACKGROUND Overview of the Canadian Grain Commission The CGC is a federal government agency that administers the provisions of the CGA. The CGC's mandate is to, "in the interests of the grain producers, establish and maintain standards of quality for Canadian grain and regulate grain handling in Canada, to ensure a dependable commodity for domestic and export markets". The CGC regulates the handling of 21 grains grown in Canada to ensure that Canada's grain is safe, reliable and marketable, and that grain producers are protected. Through its activities, the CGC supports a competitive and efficient grain sector that upholds Canada's international reputation for consistent and reliable grain quality. To achieve its mandate, the CGC: regulates grain handling in Canada through the grain quality and quantity assurance programs; carries out scientific research to understand all aspects of grain quality and grain safety and to support the grain grading system; and implements a number of producer protection programs and safeguards to ensure the fair treatment of Canadian grain producers when they deliver their grain to licensed grain elevators and grain dealers. This includes the producer payment protection function of the Licensing Program, the producer car allocation program, and the producer support program. For more information about the CGC, refer to http://www.grainscanada.gc.ca. GENERAL REQUIREMENTS Master Policy Agreement The Supplier must write a Master Insurance Policy Agreement that contains all of the terms and conditions identified in this Required content of the Master Insurance Policy Agreement and Request for Qualification to insure grain companies identified by the CGC. The Master Insurance Policy Agreement must cover up to 95% coverage to producers determined to be eligible for compensation by the CGC in the event of a licensee failure up to an annual aggregate limit of $100 million. This limit may be reviewed annually, depending on changes in aggregate liabilities. The Supplier must maintain sufficient financial capacity to provide coverage under the terms of the policy while adhering to the Canadian regulatory requirements for minimum capital adequacy. A service level agreement will be developed to identify the roles and responsibilities of both the CGC and Supplier to administer the Master Insurance Policy Agreement. The Master Insurance Policy Agreement will be required to provide coverage to eligible producers for unpaid grain deliveries dating up to 90 days prior to the effective date of the Master Insurance Policy Agreement. This is required to ensure a smooth transition to the Model and to ensure that producer payment protection coverage does not lapse during the transition period. Transition Phase The CGC's current group of licensees renews their respective licences in different months throughout the year. A licensing transition period is being considered from December 1, 2013 to November 30, 2014 to consolidate monthly renewals into a single annual renewal date for all licensees. The intention is to align the insurance policy renewal date with the licence renewal date. In order to begin this transition, all licensees would need to be included in the new insurance model effective December 1, 2013. In the months prior to this, the Master Insurance Policy Agreement and the service level agreement must be developed and finalized, all licensee premiums must be established, the premiums and new requirements must be communicated to licensees, and licensees must be allowed time to adjust and comply with the new requirements. PERIOD OF THE ARRANGEMENT The period of the Arrangement will be for three (3) years from the master insurance policy agreement effective date with an irrevocable option to extend the term of the Arrangement by up to two (2) additional one (1) year period(s) under the same conditions. SECURITY REQUIREMENT Security Requirement 1. The Supplier must, at all times during the performance of the Work, hold a valid Designated Organization Screening (DOS) with approved Document Safeguarding and Production Capabilities at the level of PROTECTED B, issued by the Canadian Industrial Security Directorate, Public Works and Government Services Canada. 2. The Supplier 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). Until the security screening of the Supplier personnel has been completed satisfactorily by the Canadian Industrial Security Directorate, Public Works and Government Services Canada, the Supplier personnel MAY NOT HAVE ACCESS to (CLASSIFIED/PROTECTED) information or assets, and MAY NOT ENTER sites where such information or assets are kept, without an escort. 3. The Supplier 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 Supplier must comply with the provisions of the: (a) Security Requirements Check List and security (if applicable), attached at Annex C; (b) Industrial Security Manual (Latest Edition) MANDATORY TECHNICAL CRITERIA MT1: The Supplier must have provided payables, receivables, credit insurance or financial guarantee policies similar to the model described in this RFQ within the past five (5) years, with annual aggregate limits of at least $100 million each. Supplier must provide the names, contact information, and description for at least three (3) current or prior insurance policies involving payables/receivables or similar financial guarantees. Each program must have been provided to one or more clients based in Canada. Referenced projects must have operated for a duration of at least the twelve (12) months. The following information must be provided for each example: i. Client organization name ii. Client contact information iii. Program description iv. Start and end dates (if the policy is not longer in place) v. Annual aggregated coverage limit; MT2: The Supplier must provide evidence that its financial capacity is in compliance with regulatory requirements for minimum capital adequacy and sufficient to include the CGC master policy, with an annual aggregate limit of $100 million, as described in the RFQ. Examples of evidence would include the Minimum Capital Test (MCT) and Branch Adequacy of Assets Test (BAAT). Evidence from other similar tests will be accepted; MT3: Supplier must hold the necessary insurance license(s) in Canada to provide the insurance underwriting services, invoice and collect premiums, and issue insurance policies and endorsements as required by this RFQ.A copy of the required valid license(s) to operate in Canada must accompany the response for evaluation. A copy of the required valid license(s) to operate in Canada must accompany the bid. BASIS OF SELECTION To be declared responsive, an arrangement must: (a) comply with all the requirements of the solicitation; (b) meet all the mandatory evaluation criteria; and (c) obtain a minimum total of 60 points for the point rated criteria as specified in Attachment 1 to Part 4 for the point rated technical criteria. Arrangements not meeting (a) or (b) or (c) will be declared non-responsive. Neither the responsive arrangement obtaining the highest number of points nor the one with the lowest evaluated price will necessarily be accepted. Suppliers meeting the mandatory criteria of the solicitation, and who attain the minimum pass mark for the point rated evaluation criteria will be evaluated financially based on their response to the evaluation criteria contained at Clause 1.2.1 Financial Evaluation. The responsive arrangement with the highest total score will be ranked number one and will be recommended for award of an Arrangement, subject to the provisions of this solicitation. The Supplier's total score will be the sum of its score for the point rated evaluation criteria, and its score from the financial evaluation as detailed at Clause 1.2.1 Financial Evaluation. PWGSC CONTACT: 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 Suppliers who are interested in submitting an arrangement shoud order the sollicitation document and follow all the instructions.