PAD-PRE-AUTHORIZED DEBIT RECEIPTS

Trade Agreement: NONE
Tendering Procedures: 
Attachment: None
Competitive Procurement Strategy: Lowest/Lower Bid
Comprehensive Land Claim Agreement: No
Nature of Requirements: 
PROJECT TITLE

Pre-Authorized Debit (PADs) Services

OBJECTIVE

The primary objective is to provide a single service provider,
hereafter referred to as Contractor, to process all
Pre-Authorized Debit (PADs) in Canadian funds on behalf of
Canada.  A PAD is a transaction initiated by a government
department or agency to commence pre-authorized deductions for
fixed or variable amounts, on a recurring or sporadic basis,
directly from a payor's bank account. PADs are authorized
through written or electronic agreements between the payor and
the initiating government department or agency.

SCOPE 

As the Receiver General for Canada (RG), the Minister of Public
Works and Government Services Canada (PWGSC) manages the
operations of the federal treasury, including the receipt and
payment of federal money into and out of the Consolidated
Revenue Fund.  PWGSC consolidates the management of the
government's payments and revenue collection so as to achieve
the most competitive rates for services available from Canada's
financial institutions (Fis).

Although the RG collects remittances through many arrangements,
the requirements described within this Statement of Work (SOW)
are only for pre-authorized debit (PAD) services and are not to
replace any other form of remittances made to the RG, such as
cash; cheques; credit or debit cards; electronic funds
transfers; or paper or electronic bill payments for which the RG
has separate Contracts/arrangements.

A PAD is a transaction initiated by a government department or
agency to commence pre-authorized deductions for fixed or
variable amounts, on a recurring or sporadic basis, directly
from a payor's bank account. PADs are authorized through written
or electronic agreements between the payor and the initiating
government department or agency. 

The framework for processing PADs through the Canadian clearing
system is set out in the Canadian Payments Association's (CPA)
Rule H1 which outlines the procedures for the processing of
PADs. The CPA Automated Clearing Settlement System (ACSS) Rules
and Standards mentioned throughout this SOW, including Rules F5,
H1, A4 and Standard 005, can be found on the CPA website at the
following URL:  http://cdnpay.ca/.   The Contractor must comply
with the CPA rules including any upcoming changes.

There are currently six departments and agencies using the PAD
service. Other departments have expressed an interest, but would
need to develop the interface between their systems and those of
the RG. The current active departments are: Canada Revenue
Agency (CRA) for personal and business income tax; Veterans
Affairs Canada (VAC) for providing care to long term veterans at
St. Anne de Bellevue Hospital; Atlantic Canada Opportunities
Agency (ACOA) for their programs; Bank of Canada (BoC) for
Canada Savings Bonds; Canadian Economic Development for Quebec
Regions (CED) for their programs; and National Defense (DND) for
its services. CRA and CED are working on initiatives to expand
the use of PADs within the timeframe of the contract period.
This was taken into consideration while developing the
forecasted volumes provided in Annex A, Appendix 2 - Historical
and Forecasted PAD Activity.

PERIOD OF THE CONTRACT

The services are to be delivered nationwide and are required
from date of contract to March 31, 2016, with an irrevocable
option on the part of Canada to extend the period of the
Contract by (2) two additional (1) one year period and (1) one
additional (4) four months transition period.


SECURITY REQUIREMENT

Security Requirement 

1. 	The Contractor must, at all times during the performance of
the Contract, hold a valid 		Designated Organization Screening
(DOS) with approved Document Safeguarding at the 		level of
PROTECTED B, issued by the Canadian Industrial Security
Directorate, Public 		Works and Government Services Canada. 

2. 	The Contractor 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).

3. 	The Contractor 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 Contractor must comply with the provisions of the:

	(a) 	Security Requirements Check List and security guide (if
applicable), attached at 				Annex C;
	(b) 	Industrial Security Manual (Latest Edition)

MANDATORY TECHNICAL CRITERIA

MT1:The Bidder must be an Automated Clearing Settlement System
(ACSS) direct clearer or ACSS group clearer member having direct
clearing membership.  The bidder should provide the necessary
documentation to support compliance as applicable;

MT2: The Bidder must provide descriptions of 2 projects
completed in the past 5 years, whereby the Bidder had processed
PADS of at least $850,000 per project.

BASIS OF SELECTION
  
Lowest Evaluated Price	

A bid must comply with the requirements of the bid solicitation
and meet all mandatory evaluation criteria to be declared
responsive.  

The responsive bid with the lowest evaluated price will be
recommended for award of a contract.

CONTRACTING AUTHORITY

The Contracting Authority for the Contract is:

	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
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.