Average Annualized Loss Methodology and Application

AVERAGE ANNUALIZED LOSS METHODOLOGY AND APPLICATION

1. Requirement Summary

Bid solicitation # 202302960 is issued for the following requirement. 

Public Safety Canada’s, Policy and Outreach Directorate - Emergency Management and Programs Branch, has a requirement for a Contractor to: (a) Develop an Average Annualized Loss (AAL) methodology that increases standardization across all natural hazards affecting Canada; and (b) Apply this methodology to calculate AAL values for winter storms and summer convective storms, recognizing the latter are comprised of several weather phenomena including hail, wind, lightning, tornados, and rain, applicable to the Canadian context. The Contractor is expected to use the inputs of hazard loss, damages, and exposure data both provided by Public Safety Canada (PS), insured loss data (e.g., CATIQ), as well as Contractor self-guided data collection.

2. Background

Disaster losses in Canada have grown significantly since the early 1990s. In Budget 2019, the Government of Canada committed to supporting an Emergency Management Strategy for Canada, including the development of a National Risk Profile (NRP). This involves moving forward with a number of measures to improve understanding of disaster risks and improve planning in all sectors of society.

Subsequent to Budget 2019, the Prime Minister of Canada reiterated the importance of understanding disaster risk, and instructed the Minister of Public Safety and Emergency Preparedness to develop a NRP to inform decision-making and planning as part of efforts to strengthen Canada’s all hazards approach to emergency management. In order to support this mandate priority, PS has continued work to advance the NRP, which aims to provide Canada with a strategic national risk and capability assessment to improve our understanding of the risk posed by hazards and our current capability to address them.

As part of the national strategic risk assessment, PS is conducting a series of risk and capability assessments using nationally representative disaster scenarios. Twelve risk and capability assessments were conducted in 2021-22, and a second series of assessments is set to take place in 2022-23. The first round of risk and capability assessments targeted floods, wildfires, and earthquakes, which were identified as the three costliest hazards that Canadians face based on average annualized loss at the time of assessment. The second round of risk and capability assessments targeted heat events, hurricanes, and space weather. This requirement supports the third round of risk and capability assessments for winter storms and summer convective storms.

3. Period of Work

The period of the Contract is from 6 months of date of Contract award.

4. Evaluation Process and Selection Methodology

Basis of selection – Highest Combined Rating of Technical Merit 70% and Price 30%

Detailed in the RFP, Part 4

5. Contracting Authority

Mathieu Lemieux
Public Safety Canada
Email: contracting@ps-sp.gc.ca

The Contracting Authority is responsible for all matters of a contractual nature.

6. Enquiries - solicitation stage

All enquiries or issues concerning this procurement must be submitted in writing to the Contracting Authority named as early as possible within the bidding period.

Enquiries and issues must be received by the Contracting Authority no later than five (5) business days prior to the bid closing date specified on the cover page or this RFP document to allow sufficient time to provide a response. Enquiries or issues received after that time may not be able to be answered prior to the bid closing date. To ensure consistency and quality of information provided to Bidders, the Contracting Authority will provide, simultaneously to all bidders to which this solicitation has been sent, any information with respect to significant enquiries received and the replies to such enquiries without revealing the sources of the enquiries.

It is the responsibility of the Bidder to obtain clarification of the requirements contained herein, if necessary, prior to submitting a bid.

7. Intellectual Property

Shall vest with the Public Safety Canada

8. Security

There is no security requirement identified.