Advance Contract Award Notice

No. 1000180515 – Technical Advisory Services for the Giant Mine Project

1. Purpose of an Advance Contract Award Notice (ACAN)

The Department of Indian Affairs and Northern Development (DIAND) has a requirement for expert independent technical advisory services to provide quality assurance and subject matter expertise in the management of arsenic trioxide waste, freeze optimization, surface design, and community stakeholder engagement on these technical requirements, in order to assist DIAND during the refinement of the Remediation Plan and achievement of associated regulatory approvals for the Giant Mine Remediation Project (GMRP).

The purpose of this Advance Contract Award Notice (ACAN) is to signal the government’s intention to award a Standing Offer Agreement (SOA) for these Services to SRK Consulting - Oceanic Plaza, 22nd Floor, 1066 West Hastings Street, Vancouver, BC, Canada V6E 3X2.

Before awarding a SOA, however, the government would like to provide other suppliers with the opportunity to demonstrate that they are capable of satisfying the requirements set out in this Notice, by submitting a statement of capabilities during the 15 calendar day posting period.

If other potential suppliers submit a statement of capabilities during the 15 calendar day posting period that meet the requirements set out in this ACAN, the government will proceed to a full tendering process on the government’s electronic tendering service, in order to award the SOA.

If no other supplier submits, on or before the closing date, a statement of capabilities meeting the requirements set out in the ACAN, a contract will be awarded to the pre-selected supplier.

2. Definition of requirement

Giant Mine is a former underground gold mine, covering 949 hectares within the city limits of the City of Yellowknife, NWT. The mine operated nearly continuously from 1948 until its closure in July 1999, leaving approximately 237,000 tonnes of arsenic trioxide stored underground, as well as various buildings and surface areas contaminated with arsenic. As a result of the insolvency of Royal Oak Mines Incorporated (Inc), the Department of Indian Affairs and Northern Development (DIAND) established the Giant Mine Remediation Project (GMRP) Team to assist in the management of Canada’s responsibilities at the Giant Mine property. The remediation and closure (the Project) of the Giant Mine is co-managed by the Government of Canada (GoC), through DIAND, and the Government of the Northwest Territories (GNWT) as co-proponents. Public Services and Procurement Canada (PSPC - formerly Public Works and Government Services Canada) also plays an integral role by providing procurement and project management services to the Project.

The current Remediation Plan for Giant Mine calls for in situ storage of arsenic trioxide waste in the Mine’s underground chambers, through the application of advanced freezing techniques.

The Project is supported by the Giant Mine Advisory Committee (GMAC), representing the Yellowknives Dene First Nation (YKDFN), who provide the Project Team with continued advice and input on the remediation plan, and by the Giant Mine Working Group, comprised of Project stakeholders and key participants, including: the City of Yellowknife; the YKDFN,; and the North Slave Métis Alliance (NSMA), the Giant Mine Community Alliance, and Alternatives North. Other critical participants in the Project include regulatory bodies and other government departments and non-governmental organizations.

In 2013 the Project completed an Environmental Assessment (EA) and was approved in 2014 subject to the implementation of 26 additional measures to mitigate significant adverse impacts on the environment, including cumulative impacts and to address public concerns.

Presently, the GMRP is in the regulatory approvals phase (anticipated to be completed between 2015-2020), that is required in advance of the commencement of full remediation. The Project Team is in the process of advancing the Closure and Reclamation Plan from the conceptual design level to the preliminary and detailed design levels. The GMRP Team has also been working on addressing a number of the EA measures. Several of these measures require significant public and stakeholder engagement to complete. This engagement has been undertaken via an iterative and collaborative process with interested parties and Project stakeholders

To assist Canada in its role in the GMRP to:

• successfully advance the Project to the next phase in line with the Project objectives;
• support continued effective communications and collaborative engagement with Project stakeholders and participants;
• meet the requirements laid out in the Environmental Assessment measures; and
• achieve required regulatory approvals and licensing for the Project;

DIAND requires expert independent technical advisory services from a qualified firm with expertise in environmental and closure aspects of mining, remediation planning and implementation; surface engineering and the management of arsenic trioxide waste in mining applications North of 60°/in a permafrost environment; with a depth of experience and applied knowledge in the context of the Giant Mine.

Required Services include:

• Supporting DIAND by providing technical expertise, third party review and input into its development and refinement of the Closure and Reclamation (C&R) Plan for the GMRP (including focus on the appropriate implementation of the 26 measures recommended by the Mackenzie Valley Environmental Impact Review Board - MVEIRB), including quality assurance to ensure the C&R Plan meets the requirements of Project stakeholders, the MVEIRB, Mackenzie Valley Land and Water Board - MVLWB, and other approval authorities;
• Providing access to and contribute to the sustainability of knowledge of the Giant Mine’s site history and knowledge from a technical, community and Project perspective;
• Providing expert technical and quality assurance review of proposed freeze systems and surface designs, to:
  • Assess optimization and technical feasibility of the freeze and water treatment plant system;
  • Complete an options analysis to assess the best locations for the arsenic chamber freeze piping and ancillary systems;
  • Assist DIAND in its development of the detailed, long-term performance specifications for components of the freezing system consistent with existing and potential future site conditions;
  • Determine and develop sound detailed cost estimates of the requirements to implement the proposed systems at the site in accordance with Association for the Advancement of Cost Engineering (AACE) requirements, including appropriate contingencies;
• Conducting cost reviews and cost validation of prepared estimates and associated budgets including contingencies;
• Participating in Surface Design Engagement (SDE) and other community and industry engagement, including participation in follow-up meetings with interested parties and Project stakeholders to contribute technical expertise and commentary in presentation of SDE and other engagement reports and other technical information for non-technical audiences; assist in answering questions; identifying, analyzing and refining options to support participants in evaluation of available options for the Project’s surface design;
• Finalizing reports from SDE and other engagement sessions to prepare for follow-on engagement with interested parties and GMRP stakeholders and to contribute to Project submissions for management, central agency, approval authority reviews and approvals and Oversight Body reviews;
• Providing expert technical review, commentary and reports on the overall preliminary design(s) for surface and underground remediation;
• Providing expert technical review and input to assist DIAND in finalizing the Closure and Reclamation Plan, and other technical documents, plans and reports, including participating, in Technical Review Committee and other meeting forums in order to provide additional technical back-up for the proposed Remediation Plan;
• Assisting DIAND to plan, organize and facilitate meetings with interested parties, stakeholders and other Project participants; providing clear explanations of technical decisions, Project scope, rationales for approaches in a manner that is readily accessible to non-technical audiences;
• Assisting DIAND, if required, by providing technical information and participate in meetings, public consultation, public hearings, media engagement and site tours of the Giant Mine, to assist in answering technical questions;
• Providing subject matter expertise in surface engineering, rock mechanics, management of arsenic trioxide waste in a Northern/permafrost environment, and other technical disciplines required to provide DIAND with quality assurance of plans, designs and approaches to the GMRP;
• At DIAND’s option, providing third party review of technical documentation to support the work of the IPRP and the GMRP Oversight Body;
• At DIAND’s option, providing professional advisory and technical services, subject matter expertise, advice, guidance and implementation support described below to assist DIAND in preparing an application for approval of a Water License for the Project, meeting the requirements of MVLWB; and
• Providing other independent expert technical advice, input and recommendations to assist DIAND in effectively advancing the Project.

3. Criteria for assessment of the Statement of Capabilities

Minimum Essential Requirements

Any interested supplier must demonstrate by way of a statement of capabilities that it meets all of DIAND’s requirements.

Therefore a Respondent MUST provide evidence that it meets the following requirements:

1. Significant experience in the planning, design, development and implementation of remediation/closure plans for underground mines North of 60° or in a permafrost environment; as demonstrated through a minimum of fifteen (15) years of experience in mine remediation projects in this environment, including a minimum of ten (10) years direct experience at Giant Mine;
2. Demonstrated experience and applied expertise in the use of freeze optimization for mine reclamation or closure applications North of 60° or in a permafrost environment, and in the context of the Giant Mine Remediation Plan for a minimum of seven (7) years;
3. Expertise in the application of freeze technical design to the management of arsenic trioxide waste and in depth experience of the challenges and approaches to addressing mass quantities of arsenic trioxide stored in underground storage chambers; including applied knowledge of the challenges for arsenic trioxide storage at Giant Mine for a minimum of seven (7) years;
4. Demonstrated experience and applied knowledge in the operating conditions and reclamation requirements of the Giant Mine for a minimum of ten (10) years ;
5. Demonstrated experience in and applied understanding of meeting the requirements of the Northern regulatory framework under the Mackenzie Valley Resource Management Act (MVRMA) and associated regulations, including the requirements of the Mackenzie Valley Environmental Impact Review Board and the Mackenzie Valley Land and Water Board;
6. Extensive experience in conducting collaborative stakeholder engagement with government and non-governmental organizations in review of technical design options, alternatives and analysis of surface design(s), including an established network, demonstrated track record of collaboration and positive working relationships with Project stakeholders and participants, including, but not limited to: the Giant Mine Advisory Committee (GMAC); the City of Yellowknife; the YKDFN,; the North Slave Métis Alliance; the Giant Mine Community Alliance, and Alternatives North for a period of three (3) years; and
7. Corporate independence from the Project’s contractors, including the Design Engineer (AECOM) and environmental engineering advisors (Golder & Associates Ltd.).

4. Applicability of the trade agreement(s) to the procurement

This procurement is subject to the following trade agreements:

• the Agreement on Internal Trade;
• the North American Free Trade Agreement;
• the Canada Chile Free Trade Agreement;
• the Canada-Colombia Free Trade Agreement;
• the Canada-Honduras Free Trade Agreement;
• the Canada-Korea Free Trade Agreement;
• the Canada-Panama Free Trade Agreement;
• the Canada-Peru Free Trade Agreement;
• the World Trade Organization – Agreement on Government Procurement .

5. Set-aside under the Procurement Strategy for Aboriginal Business

Not applicable.

6. Comprehensive Land Claims Agreement(s)

This procurement is subject to the Tlicho Land Claims and Self-Government Agreement.

7. Justification for the Pre-Identified Supplier

Established in 1974, and with an established practice in the NWT since 1999, SRK Consulting’s practice includes specialization in underground mine design, planning and engineering; mine closure and reclamation; and remediation of contaminated sites; including expertise in both surface and underground design techniques, rock mechanics, and pit slope stability. SRK Consulting is also the recognized industry leader in the application of freeze techniques to arsenic trioxide waste for mine reclamation or closure applications.

This includes extensive experience on mine sites North of 60° in a permafrost environment, and in the context of the Giant Mine Remediation Plan. SRK Consulting has, pursuant to competitive contracting processes, been the lead Technical Advisor to the GMRP, since 2000, and has over 15 years of demonstrated experience in this area, including:

• Evaluation of management options for the approximately 237,000 tonnes of highly toxic arsenic trioxide dust stored underground at Giant Mine and recommendation of the most appropriate arsenic dust management alternative. This included evaluation of fifty six (56) possible technologies to manage the arsenic trioxide dust that were subsequently down to twelve (12) of the most viable alternatives, each of which were evaluated in detail;
• Presentation of its report on management options for arsenic trioxide dust storage at a public workshop and recommendation that two of the twelve alternatives be given further consideration. Based on public input from a series of public meetings and workshops, and taking into account the Technical Advisor’s recommendation and further comments and recommendations from the Independent Peer Review Panel (IPRP), DIAND decided to proceed with in-situ freezing as the arsenic management alternative;
• Completion of numerous baseline studies related to arsenic contamination and other environmental aspects of the site both underground and on surface. These studies were undertaken to provide a clear understanding of the site condition in order to formulate an integrated underground and surface Remediation Plan. Numerous aspects of the site were studied including arsenic chamber investigations and crown pillar rock mechanics, arsenic trioxide dust properties, exploration and development of bulkhead stabilization options, continuation of the freeze design, mine water and arsenic load balance, groundwater monitoring, air quality monitoring, drilling and sampling of the calcine pond, historic tailings deposits, and both polishing and settling ponds;
• Development of a comprehensive site data base that incorporated multi-parameter site data.
• Development of a comprehensive site Remediation Plan for Giant Mine that addresses all known underground and surface elements on the site requiring remediation. SRK Consulting also included in the Remediation Plan an, conceptual engineering design, identification of contingency measures, a monitoring plan and an implementation schedule which include cost estimates; and
• Oversight of successful completion of a full-scale test of the Project’s Remediation Plan’s methods to isolate arsenic dust through ground freezing.
• Development of an extensive Design Basis Report (DBR) which summarizes the result of the full-scale test and recommendations for further design of the freeze program

In addition to the above, SRK Consulting has over 15 years in depth experience and expertise in the operating environment and remediation requirements of Giant Mine. In its role as lead Technical Advisor, SRK Consulting has provided technical assistance and advice on the various care and maintenance, risk assessment and risk mitigation activities completed at the Giant Mine site. This has included completion of numerous and varied in-depth scientific mine studies (both on surface and underground) at the Giant Mine site in order to determine the baseline environmental and geo-technical conditions, particularly in the areas of the arsenic chambers. As a result of completing these studies, SRK Consulting has become intimately familiar with, and have developed an extensive understanding of, the current mine situation including all aspects of the conditions relating to the arsenic trioxide chambers and the water management and treatment systems. SRK Consulting’s ready access to technical information/documentation (i.e. studies and research which they have undertaken over the past several years and three dimensional mine models and hydrogeological models of the Giant Mine which they have developed and hold proprietary rights to) and their in-depth knowledge of current technical site information relative to the GMRP (i.e. steps being taken to manage the underground arsenic trioxide at the Giant Mine) will form an integral part of, and are essential to the successful engagement with Project stakeholders and participants, as well as defense and approval of the Remediation Plan for the Giant Mine site through the regulatory approval process.

SRK Consulting has demonstrated extensive experience and applied understanding of the concerns, requirements, and objectives of the Project stakeholders, and has an established track record of working collaboratively with the City of Yellowknife; the YKDFN; the NSMA; the Giant Mine Community Alliance, and Alternatives North, in community consultation and engagement.

Over the past three (3) years, this has included participation as a lead technical advisor in numerous public meetings and consultation sessions with Project stakeholders on the issues, options, risks and mitigating measures for the management of arsenic trioxide waste underground at the site via the freeze method; including leading two (2) stakeholder engagement sessions with the YKDFN.

SRK Consulting has also been a lead contributor in the collaborative process for Surface Design Engagement (SDE) undertaken with Project stakeholders in 2015 and 2016. The SDE is a critical step and input will be carefully considered by the Project Team in finalizing the surface remediation plan and developing the updated project description that will be submitted to the MVLWB for licensing. SRK Consulting has provided technical expertise in initial communications and design of the SDE sessions; and has participated as a technical advisor in the first six (6) steps of the SDE process to support informed review and decision-making by Project stakeholders. This has included:

• Participation in a number of sessions for information sharing that were successful at familiarizing engagement groups with the steps to identify, define, develop and review options for various aspects of the surface design plan;
• Provision of technical advice in Options Definition workshops with approximately 100 participants, wherein Project stakeholders were able to share ideas, discuss their vision for the site, and identify a range of options for the mine’s surface objective identification;
• Working with YKDFN and the Giant Mine Working Group, providing technical input, to identify site-wide options and develop each option into a conceptual plan;
• Participation as a technical advisor in workshops with Project stakeholders to review the risks associated with each Option with a view to determine how these options may be improved.
• Facilitation and lead in the Evaluation Workshop with approximately 80 participants, wherein Project stakeholders were able to evaluate surface options against objectives and communicate their vision for the site.

SRK Consulting has demonstrated having extensive experience and applied understanding of the requirements of the NWT regulatory regime, including demonstrated experience in addressing the requirements of the Mackenzie Valley Environmental Impact Review Board (MVEIRB) and the Mackenzie Valley Land and Water Board (MVLWB), as demonstrated through:

• Previous work experience in the NWT in support of both mine remediation and private sector mining projects, including work with the GNWT, the Yellowknives Dene First Nation, the City of Yellowknife and other community stakeholders;
• Acting as Technical Advisor to the Environmental Assessment (EA) process for the GMRP, including development of written submissions to the MVEIRB and MVLWB;
• Participation through the provision of technical expertise on the Remediation Plan, and in particular on the management of arsenic trioxide waste at the site, in the public hearings of the EA process pursuant to the MVRMA in 2012-2013; and
• Responding to information requests from the MVEIRB and MVLWB as part of the EA process.

The design for creating the frozen shell or blocks of underground stored arsenic trioxide was found, in the MVEIRB’s 2013 report of the Project’s EA process to be sound from an engineering perspective for the 100-year Project lifespan.

SRK Consulting is an independent, international consulting practice, owned independently by its employees; with independence from the Project’s Design Engineer, environmental engineering advisors, and the Project’s Independent Peer Review Panel.

To DIAND’s knowledge, there are no other suppliers available that possess the required experience and technical expertise in freeze optimization and arsenic trioxide waste management in remediation applications on underground mines in a permafrost environment North of 60°; or a sufficient level of understanding and in-depth knowledge of the Giant Mine site, the overall Project requirements and objectives, the Project’s Remediation Plan, regulatory body and Project stakeholder and public concerns relative to the Site and its proposed Remediation Plan; to meet DIAND’s current and immediate needs.

8. Government Contracts Regulations Exception(s)

The following exception to the Government Contracts Regulations is invoked for this procurement:

subsection 6(d) - "only one person is capable of performing the work".

9. Exclusions and/or Limited Tendering Reasons

Agreement on Internal Trade (AIT) – Article 506 Paragraph12 (b), where there is an absence of competition for technical reasons and the goods or services can be supplied only by a particular supplier and no alternative or substitute exists.

World Trade Organization - Agreement on Government Procurement (WTO-AGP) – Article XV (15), Paragraph 1 (b), the products or services can be supplied only by a particular supplier and no reasonable alternative or substitute exists.

North American Free Trade Agreement (NAFTA) – Article 1016.2(B) the goods or services can be supplied only by a particular supplier and no reasonable alternative or substitute exists.

10. Ownership of Intellectual Property.

Canada intends to retain ownership (where it applies) of any Foreground Intellectual Property arising out of the proposed Contract related to the development of bibliographic or library cataloguing information, based on the following exemptions contained within Appendix A of the Policy on Title to Intellectual Property Arising under Crown Procurement Contracts:

(4.1) The main purpose of the Contract, or of the deliverables contracted for, is to generate knowledge and information for public dissemination.

11. The period of the proposed contract or the delivery date(s)

The proposed SOA is for a period of four (4) years, from contract award to March 31, 2020.

Canada retains the irrevocable option to extend the period of the Contract by up to two (2) additional one(1)-year long extensions to this initial period, at Canada’s exclusive discretion.

12. A cost estimate of the proposed contract

The estimated value of any and all Call-ups under the SOA, including option(s), is $2,000,000.00 (applicable taxes included ).

13. Name and address of the pre-identified supplier:

Name: SRK Consulting (Canada) Inc.

Address: Oceanic Plaza, 22nd Floor, 1066 West Hastings Street, Vancouver, BC, Canada V6E 3X2

14. 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 minimum essential requirements described herein.

15. The closing date for a submission of a statement of capabilities.

The closing date and time for accepting statements of capabilities is June 16, 2016 at 2:00 p.m. EDT.

16. Inquiries and submission of statements of capabilities

Inquiries and statements of capabilities are to be directed to:

Céline Viner

10 Wellington, Gatineau, QC, K1A 0H1

Telephone: (819) 994-7304

Facsimile: (819) 819-953-7721

E-mail: celine.viner@aandc-aadnc.gc.ca