Future Aircrew Training

Fairness monitor final report: August 15, 2023

Addendum to final report: June 13, 2024

Submitted to: Director, Fairness Monitoring Program

Submitted by: KPMG

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Attestation of assurance

The fairness monitor (FM) hereby provides the unqualified assurance statement below concerning the request for proposal (RFP) process for Future Aircrew Training (FAcT).

It is our professional opinion that the RFP process we observed or monitored, was carried out in a fair, open, and transparent manner. 

Original signed by:

Abrar Husain
Chartered Professional Accountant
Fairness Monitor
KPMG

Zyna Boubez
Fairness Monitoring Team Leader
Fairness Monitoring Contractor’s Representative
KPMG

Leslie Maughan
Chartered Professional Accountant
Certified Management Accountant
Back-up Fairness Monitor
KPMG

Leah Carson
Back-up Fairness Monitor
KPMG

Project requirement

The mandate of the FAcT program is to develop a relevant, flexible, responsive, and effective aircrew training program for pilots, air combat systems officers and airborne electronic sensor operators to meet future aerospace requirements of the Canadian Armed Forces (CAF). Aircrew are the core of a combat capable, multi-purpose air force and are essential to the mission of the Royal Canadian Air Force. Aircrew training is vital to support the roles and missions assigned to the CAF and has a significant role to play in enabling Canada’s new defence policy: Strong, secure, engaged.

The Department of National Defence (DND) is seeking an aircrew training services provider in support of the FAcT program. These services will be provided in collaboration with DND. The scope of the goods and services to be provided by the successful FAcT supplier will include:

KPMG was engaged by Public Works and Government Services Canada (PWGSC) on February 6, 2018, as an FM to observe all stages of the competitive procurement processes associated with the FAcT program. The FAcT solicitation took place in 3 phases:

KPMG is an independent third party with respect to this activity.

The procurement process involved a letter of interest (LOI) issued by PWGSC on April 12, 2018, prior to phase 1: ITQ, a subsequent ITQ process (phase 1: ITQ), which began with the issue of the ITQ (W3471-130001/K) on November 15, 2018, and concluded with the list of qualified suppliers issued on December 10, 2018. This was followed by engagement with the qualified suppliers (phase 2: Engagement), which began with the issue of the list of qualified suppliers and concluded with the issue of the RFP on February 11, 2022. All of these activities were observed by the FM.

The RFP (W3471-130001/O) issued on February 11, 2022, was observed from a fairness perspective by the FM. Bidders were invited to submit bids in which they were asked to demonstrate experience and resource experience as well as approach and methodology. In addition, bidders were asked to provide certifications, pricing and terms offered.

We hereby submit the final report, covering the activities of the FM commencing with the LOI issued on April 12, 2018, on buyandsell.gc.ca continuing through the RFP phase and the evaluation of proposals leading to the identification of the successful bidder.

This report includes:

Fairness monitoring activities and observations

KPMG was engaged as an FM by PWGSC on behalf of DND, to observe the solicitation process for the FAcT solicitation, and to attest to the fairness, openness, and transparency of this monitored activity.

In accordance with the terms of our engagement, we:

In this section

Activities prior to phase 1: Letter of interest review

KPMG was engaged to begin fairness monitoring activities commencing with the development of the LOI. Prior to the publication of the LOI on April 12, 2018, on buyandsell.gc.ca, the FM reviewed the LOI. In reviewing the draft LOI documentation, fairness considerations were identified by the FM and discussed with the contracting authority (CA). All of the fairness considerations were addressed in the LOI prior to issuance, and none resulted in fairness deficiencies.

Activities prior to phase 1: Letter of interest posting and close

The LOI was issued via buyandsell.gc.ca on April 12, 2018. The closing date was May 4, 2018. The LOI was accessible to all potential participants, without unjustified restrictions as to who may participate. Following the release of the LOI, 2 amendments were released on April 18 and 30, 2018. Amendments provided modifications to the LOI. The amendments were reviewed by the FM prior to posting.

Fairness considerations identified regarding the publication of the LOI were discussed with the CA. All fairness considerations were addressed, and none resulted in fairness deficiencies.

At close of the LOI on May 4, 2018, 82 vendors had signed the rules of engagement. No fairness deficiencies were observed.

Activities prior to phase 1: Industry engagement session and one-on-one meetings

Thirty-one one-on-one sessions were held with interested industry players between May and June 2018. The objective of the sessions was to obtain feedback from vendors regarding the FAcT program. Information discussed was treated as confidential and used to inform project requirements and next steps in the procurement process. The FM attended the one-on-one sessions.

Fairness considerations identified before or during the one-on-one sessions were discussed with the CA. No fairness deficiencies were observed.

Phase 1: Invitation to qualify review

Prior to the publication of the ITQ on November 15, 2018, on buyandsell.gc.ca, the FM reviewed the ITQ.

In reviewing the ITQ documentation, fairness considerations were identified by the FM and discussed with the CA. All of the fairness considerations were addressed in the ITQ prior to issuance, and none resulted in fairness deficiencies.

Phase 1: Invitation to qualify posting and close

The ITQ was issued via buyandsell.gc.ca on November 15, 2018. The closing date was November 30, 2018. The ITQ was accessible to all potential participants, without unjustified restrictions as to who may participate.

Following the release of the ITQ, a total of 5 amendments were released. Amendments provided answers to questions raised by industry as well as modifications to the ITQ documents.

Fairness considerations identified regarding the publication of the ITQ were discussed with the CA. All fairness considerations were addressed, and none resulted in fairness deficiencies.

At close of the ITQ on November 30, 2018, 10 responses were received and handled in accordance with the deadline and requirements stated in the ITQ. No fairness deficiencies were observed.

Phase 1: Evaluation instructions

Prior to responses evaluations, the FM reviewed the evaluation guidelines, including:

The FM provided assurance as to the impartiality of the evaluation methodology.

The FM reviewed the evaluation methodology and related requirements. No fairness deficiencies were observed.

Phase 1: Technical evaluation and compliance review

The technical evaluation of the responses was performed by evaluators individually on December 4, 2018. Following the individual technical evaluation, evaluators convened a consensus evaluation meeting on December 5, 2018, to identify the technical score of each of those responses.

The FM was present and monitored the technical evaluation consensus process. The FM provided assurance that it was undertaken in a consistent fashion and that the results reflected the consensus of all evaluation board members. Following the technical evaluation, the review of the compliance requirements was undertaken by the CA for the responses received. Six qualified respondents were invited to participate in the industry engagement and RFP processes. The FM oversaw and reviewed the results of the technical and compliance evaluations and observed no fairness issues.

Phase 2: Engagement activities

Following the close of the ITQ, phase 2: Engagement took place with qualified suppliers, starting on December 14, 2018, and ending on February 11, 2022.

The phase 2: Engagement process included:

Phase 2: Workshops

The objective of the workshops was to provide qualified suppliers with additional information regarding FAcT and to obtain feedback from qualified suppliers. Information discussed was treated as confidential and used to inform project requirements and next steps in the procurement process. The FM attended all the workshops between 2018 and 2022.

Site visits were held between April 30 and May 7, 2019, and included infrastructure tours of Canadian Forces Base (CFB) Winnipeg, Southport Airport and CFB Moose Jaw. All qualified suppliers attended the site visits, as well as the FM.

All fairness considerations identified by the FM were addressed before or during the workshops and site visits. No fairness deficiencies were observed.

Phase 2: First release of draft request for proposal — December 2020

The objective of releasing the first draft RFP was to provide qualified suppliers with additional information regarding proposed FAcT requirements, statement of work, and evaluation, and to obtain feedback from qualified suppliers. Information provided was treated as confidential and used to inform development of the final RFP. The FM was provided with copies of the draft RFP for review. All fairness considerations identified by the FM were addressed before the release of the draft RFP. No fairness deficiencies were observed.

Phase 2: Second release of draft request for proposal — July and August 2021

The objective of releasing the second draft RFP was to provide qualified suppliers with additional information regarding proposed FAcT requirements, statement of work, and evaluation, and to obtain feedback from qualified suppliers. Information provided was treated as confidential and used to inform development of the final RFP. The FM was provided with copies of the draft RFP for review. Fairness considerations were identified and were discussed with the CA. No fairness deficiencies were observed.

Phase 2: Third release of draft request for proposal — December 2021

The objective of releasing the third draft RFP was to provide qualified suppliers with additional information regarding proposed FAcT requirements, statement of work, evaluation, and to obtain feedback from qualified suppliers. Information provided was treated as confidential and used to inform development of the final RFP. The FM was provided with copies of the draft RFP for review. Fairness considerations were identified and were discussed with the CA. No fairness deficiencies were observed.

Phase 2: Additional presentations and meetings

The objective of holding additional presentations and meetings with the qualified suppliers was to obtain feedback from qualified suppliers on various aspects of the proposed plan for the FAcT solicitation. Information provided was treated as confidential and used to inform development of the final RFP. The FM attended additional presentations and meetings between the FAcT team and the qualified suppliers. Fairness considerations were identified and were discussed with the CA. No fairness deficiencies were observed.

Phase 2: Questions and answer process

The objective of allowing the qualified suppliers to submit written questions and provide them with written answers was to provide the qualified suppliers with additional information regarding proposed FAcT requirements, statement of work, and evaluation. Information provided was treated as confidential, unless the qualified suppliers indicated it could be shared more broadly, and was used to inform development of the final RFP. The FM was provided with the questions and draft responses for review. Fairness considerations were identified and were discussed with the CA. No fairness deficiencies were observed.

Phase 3: Request for proposal review

The FM reviewed the RFP prior to the publication of the RFP via AWARD on February 11, 2022.

In reviewing the draft RFP documentation, fairness considerations were identified by the FM and discussed with the CA. All fairness considerations identified by the FM were addressed in the RFP prior to issuance. No fairness deficiencies were observed.

Phase 3: Request for proposal posting

The RFP was accessible to all qualified suppliers, without unjustified restrictions as to who may participate. The original closing date was October 11, 2022, but subsequent amendments extended the deadline to January 05, 2023.

Thirty-one amendments were released outlining revisions to the RFP documents and providing responses to questions received during the tendering period. Each amendment was reviewed by the FM.

Fairness considerations identified by the FM with respect to the amendments were discussed with the CA. All fairness considerations identified by the FM were addressed prior to issuance of amendments. No fairness deficiencies were observed.

Phase 3: Evaluation framework and evaluator training

The FM reviewed the evaluation framework to be followed by evaluators prior to the start of the bid evaluation process. The evaluation materials were accessible to evaluators within the AWARD platform and the individual evaluations were to be completed within the platform. The evaluation framework covered both the mandatory evaluation criteria and point rated evaluation criteria. The FM also observed the training sessions provided to evaluators.

Fairness considerations identified by the FM with respect to the evaluation framework were discussed with the CA. All fairness considerations identified by the FM were addressed prior to finalization of the framework. No fairness deficiencies were observed.

Phase 3: Request for proposal close

At close of the RFP on January 5, 2023, 2 bids were received. The FM discussed the manner in which the bid responses to the RFP were received and handled with the CA.

Two bids were received and handled in accordance with the deadline and requirements stated in the RFP. No fairness deficiencies were observed.

Evaluation instructions

Prior to proposal evaluations, the FM reviewed the evaluation guidelines, including:

The FM provided assurance as to the impartiality of the evaluation methodology.

The FM reviewed the evaluation methodology and related requirements. No fairness deficiencies were observed.

Completeness and conformity check

Following the RFP closing, the completeness and conformity check was undertaken by the CA for the proposals received. The bids were reviewed to confirm that the requested information was provided.

The FM oversaw and reviewed the results of the completeness and conformity check. No fairness deficiencies were observed.

Technical evaluation

The technical evaluation of the bid was held virtually.

Technical evaluation kick-off meetings were held between January 5 and January 11, 2023. During the meetings, each technical bid evaluator was provided an evaluation overview, including the:

The evaluators were also briefed on the submission requirements, evaluation criteria, along with examples of how to score the submissions in accordance with the processes laid out in the RFP. The CA also explained fairness, openness, and transparency principles to the evaluators.

The evaluation process began with the initial partial bid evaluation (round 1). Both proposals failed to meet some of the mandatory criteria. Compliance assessment reports (CAR) were issued to both bidders. The second partial bid evaluation (round 2) commenced upon the receipt of the bidder’s responses to the CARs. At this stage, both proposals failed to meet some of the mandatory criteria. CAR were issued to both bidders. The complete bid evaluation (round 3) commenced with the receipt of the responses to the CARs. Both responses met the mandatory criteria stated in the RFP, and were deemed eligible to proceed to the evaluation of the point-rated criteria. This assessment was confirmed by all evaluation team members.

For each round of evaluation, the CA held virtual consensus evaluation meetings from following the individual technical evaluations. At each consensus meeting, evaluators discussed their individual assessments to arrive at a consensus on the bidders’ technical evaluation.

The FM was present and monitored the entire technical evaluation consensus process. The FM provided assurance that it was undertaken in a consistent fashion and that the results reflect the consensus of all evaluation team members.

The FM oversaw and reviewed the results of the technical evaluation. No fairness deficiencies were observed.

Financial evaluation and proponent selection

As part of the complete bid evaluation (round 3), the CA verified the pricing details provided by the bidders through AWARD. The FM was present during the financial bid evaluation.

The selection of the successful proponent was consistent with the provisions and methodology outlined in the RFP. No fairness deficiencies were observed.

Reference documents

Documents related to solicitation number W3471-130001 are available on CanadaBuys or through the project office.

Addendum to the final report

June 13, 2024

Addendum to the final report dated August 15, 2023 for the FAcT.

This addendum covers the period following the conclusion of the evaluation phase including contract award and debriefing activities.

Activities related to contract award and debriefings

Two proposals were received by PWGSC in response to this RFP. The successful bidder was notified of contract award on May 29, 2024. The FM reviewed the contract award letter prior to it being sent to the successful bidder. No fairness deficiencies were observed.

There was 1 request for a debriefing. The FM reviewed all correspondence with bidders in relation to the debriefing, and also attended the debriefing session with the bidder. No fairness deficiencies were observed.

Attestation of assurance

The FM hereby provides the unqualified assurance statement below concerning the FAcT procurement process up to and including the conclusion of the contract award and debriefing activities.

It is our professional opinion that the process we observed or monitored was carried out in a fair, open and transparent manner.

Original signed by:

Abrar Husain
Chartered Professional Accountant
Fairness Monitor
KPMG

Zyna Boubez
Fairness Monitoring Team Leader
Fairness Monitoring Contractor’s Representative
KPMG

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