CRA Records Management and Storage Services fairness monitor final report

Submission date:
January 24, 2022

Submitted to:
Director, Fairness Monitoring
Departmental Oversight Branch
Public Services and Procurement Canada

Submitted by:
RFP Solutions Inc.
301-1150 Morrison Drive
Ottawa ON K2H 8S9
Telephone: (613) 728-1335
Fax: (613) 728-6565
Website: www.rfpsolutions.ca

Table of contents

• 1. Attestation of assurance
• 2. Project requirement
• 3. Fairness monitor engagement and observations
  • 3.1 Development of first invitation to qualify
  • 3.2 First invitation to qualify issuance
  • 3.3 First invitation to qualify closing, evaluation and cancellation
  • 3.4 Development of second invitation to qualify
  • 3.5 Second invitation to qualify issuance
  • 3.6 Second invitation to qualify closing and evaluation
  • 3.7 Review and refine requirements phase
• 4. Reference documents

1. Attestation of assurance

The Fairness Monitor hereby provides the following unqualified assurance statement concerning the Canada Revenue Agency Records Management and Storage Services requirement.

It is our professional opinion that the Invitation to Qualify and Review, Refine Requirements processes for the Canada Revenue Agency Records Management and Storage Services requirement that we observed or monitored were carried out in a fair, open and transparent manner.

2. Project requirement

RFP Solutions Inc. was engaged on August 26, 2020 as a Fairness Monitor to observe all phases of the competitive procurement process for Records Management and Storage Services, issued by Canada Revenue Agency (CRA) under solicitation #1000353414 and #1000353414A. RFP Solutions Inc. is an independent third party with respect to this activity.

The procurement process involved multiple stages, starting with an Invitation to Qualify (ITQ) under solicitation #1000353414. As this solicitation did not result in any compliant responses, the solicitation was revised and reissued under solicitation #1000353414A, which cancelled and superceded the first ITQ. Subsequent to the second ITQ which resulted in one (1) Qualified Respondent, as set out in the ITQ, CRA moved forward with industry engagement through a Review and Refine Requirements (RRR) phase. Seven (7) one-on-one discussions were held between CRA and the Qualified Respondent and observed by the Fairness Monitor prior to CRA determining to transition to direct negotiations with the sole compliant ITQ Respondent.

This report covers the activities of the Fairness Monitor, during the two (2) ITQ processes (commencing with Fairness Monitor kick-off on September 9, 2020), through to the conclusion of the seventh RRR meeting (July 8, 2021), following which the Fairness Monitor received official notification by CRA of the transition of the process to direct negotiations (November 24, 2021).

We reviewed all of the information provided and observed all relevant activities within the identified period. This report includes our attestation of assurance, a summary of the scope and objectives of our assignment, and relevant observations from the activities undertaken.

3. Fairness monitor engagement and observations

In accordance with the terms of our engagement, we familiarized ourselves with the relevant documents, observed the activities leading up to and during the two (2) ITQ processes, and observed the activities during seven (7) one-on-one meetings during the RRR phase, identifying fairness-related matters to the Contracting Authority and ensured that responses and actions were reasonable and appropriate. The following summarizes the specific activities and observations of the Fairness Monitor.

3.1 Development of first invitation to qualify

RFP Solutions Inc. was engaged to conduct Fairness Monitor activities beginning with CRA's development of the first ITQ. A review of the draft and final ITQ documentation was conducted by the Fairness Monitor. This included:

• General Information
• Procurement Process
• Respondent Instructions
• Response Preparation Instructions
• Security and Other Requirements
• Evaluation Procedures and Basis of Qualification and
• Related Annexes and Appendices.

The Fairness Monitor provided assurance as to the neutrality of the requirements, the objectivity of requirements and process and the clarity of the documentation to support understandability by interested suppliers.

Observations

In reviewing the draft and final ITQ documentation, no fairness issues were identified by the Fairness Monitor.

3.2 First invitation to qualify issuance

The first ITQ was issued to potential suppliers via buyandsell.gc.ca on December 22, 2020 as solicitation number 1000353414 with a final closing date of February 10, 2021 at 11:59 pm Eastern Time.

During the ITQ posting a total of two (2) amendments, containing responses to nine (9) questions, were issued via buyandsell.gc.ca. Each amendment was reviewed by the Fairness Monitor prior to release.

The Fairness Monitor provided assurance as to the neutrality of the requirements, the objectivity of requirements and process; and the clarity of the documentation to support understandability by interested suppliers.

Observations

In reviewing the responses to questions the Fairness Monitor did not observe any fairness issues.

3.3 First invitation to qualify closing, evaluation and cancellation

As of the closing of the first ITQ, two (2) responses were received from interested suppliers.

The two (2) responses were received and handled in accordance with CRA's receipt practices, the closing requirements and deadline stated in the ITQ.

Three (3) evaluators from CRA conducted the evaluation of ITQ responses. Based on initial review, one (1) response was determined to be non-responsive to the mandatory criteria of the solicitation and was set-aside in accordance with the ITQ. One (1) response was initially identified as meeting the requirements of the mandatory criteria, however, during subsequent review, the need to issue a request for clarification was identified by CRA and the clarification considered in the evaluation of the response. As a result, both ITQ responses were determined to be non-responsive to the mandatory criteria of the solicitation and were set-aside in accordance with the ITQ.

Following the completion of the consensus evaluation, CRA provided the Fairness Monitor with the consensus evaluation record signed by the three (3) evaluators and access to the two (2) ITQ responses received and the request for clarification and its response, to enable the Fairness Monitor to conduct a review of the evaluation.

CRA prepared draft notification letters to each of the Respondents, which were reviewed by the Fairness Monitor prior to their issuance to Respondents on March 24, 2021.

The ITQ was formally cancelled on April 6, 2021, with the issuance of the second ITQ on buyandsell.gc.ca (see further below).

Observations

In reviewing the receipt and handling of the ITQ responses, no fairness considerations were identified by the Fairness Monitor.

In reviewing the evaluation documentation, the evaluation of ITQ responses was conducted on the basis of the process and mandatory criteria set out in Part 6 and Annex C of the ITQ. The clarification of one (1) response was conducted as set out in section 6.1.3 of the ITQ.

In reviewing the assessment of Respondents' non-responsiveness to the mandatory criteria, the Fairness Monitor did not observe any fairness issues.

No fairness concerns were observed with the notification letters issued to the Respondents.

3.4 Development of second invitation to qualify

CRA developed a second ITQ. A review of the draft and final ITQ documentation was conducted by the Fairness Monitor. This included:

• General Information
• Procurement Process
• Respondent Instructions
• Response Preparation Instructions
• Security and Other Requirements
• Evaluation Procedures and Basis of Qualification and
• Related Annexes and Appendices.

The Fairness Monitor provided assurance as to the neutrality of the requirements, the objectivity of requirements and process and the clarity of the documentation to support understandability by interested suppliers.

Observations

In reviewing the draft and final ITQ documentation, no fairness issues were identified by the Fairness Monitor.

3.5 Second invitation to qualify issuance

The second ITQ was issued to potential suppliers via buyandsell.gc.ca on April 6, 2021 as solicitation number 1000353414A with an initial closing date of April 20, 2021 at 2:00 pm Eastern Time.

During the ITQ posting one (1) amendment was issued via buyandsell.gc.ca to make changes to the Respondent Instructions and Response Preparation Instructions to clarify submission via facsimile or other electronic means. This amendment also extended the closing date to April 23, 2021 at 2:00 pm Eastern Time. The amendment was reviewed by the Fairness Monitor prior to release.

The Fairness Monitor provided assurance as to the neutrality of the requirements, the objectivity of requirements and process; and the clarity of the documentation to support understandability by interested suppliers.

Observations

In reviewing the amendment, the Fairness Monitor did not observe any fairness issues.

3.6 Second invitation to qualify closing and evaluation

As of the closing of the second ITQ, two (2) responses were received from interested suppliers.

The two (2) responses were received and handled in accordance with CRA's receipt practices, the closing requirements and deadline stated in the ITQ.

Three (3) evaluators from CRA conducted the evaluation of ITQ responses.

One (1) ITQ response was determined to be non-responsive to the mandatory criteria of the solicitation and was set-aside in accordance with the ITQ. One (1) ITQ response was determined to be responsive to the mandatory criteria of the solicitation and was deemed eligible to move forward to the planned RRR phase.

Following the completion of the consensus evaluation, CRA provided the Fairness Monitor with the consensus evaluation record signed by the three (3) evaluators and access to the two (2) ITQ responses received, to enable the Fairness Monitor to conduct a review of the evaluation.

CRA prepared draft notification letters to each of the Respondents, which were issued on May 5, 2021. The Fairness Monitor had the opportunity to review the notifications following their issuance.

Observations

In reviewing the receipt and handling of the ITQ responses, no fairness considerations were identified by the Fairness Monitor.

In reviewing the evaluation documentation, the evaluation of ITQ responses was conducted on the basis of the process and mandatory criteria set out in Part 6 and Annex C of the ITQ. The clarification of one (1) response was conducted as set out in section 6.1.3 of the ITQ.

In reviewing the assessment of Respondents against the mandatory criteria, the Fairness Monitor did not observe any fairness issues.

No fairness concerns were observed with the notification letters issued to the Respondents.

3.7 Review and refine requirements phase

Following the conclusion of the ITQ, CRA prepared for the conduct of the Review and Refine Requirements (RRR) phase. As set out in section 2.4 of the ITQ, the intent of this phase was to seek feedback from the Qualified Respondent to clarify and further refine the preliminary Statement of Work (SOW) that had been attached to the published ITQ document.

The RRR phase consisted of structured one-on-one meetings between CRA and the Qualified Respondent, overseen by the Fairness Monitor.

Seven (7) one-on-one meetings were held between CRA and the Qualified Respondent, and overseen by the Fairness Monitor, over the period of June 2 – July 8, 2021. Meetings were conducted using MS Teams.

Prior to each one-on-one meeting, CRA prepared and issued a meeting agenda. Following the first one-on-one meeting, and for each subsequent one-on-one meeting, CRA prepared and issued a Record of Findings from the previous meeting which was reviewed by the participants as a formal agenda item. The Fairness Monitor reviewed the agenda for each of the seven (7) meetings and reviewed the Record of Findings following each of the first six (6) one-on-one meetings.

One-on-one meetings consisted of a dialogue between representatives of CRA and the Qualified Respondent, making inquiries on topics related to the Statement of Work, as set out in each meeting agenda. Participants had the opportunity to ask questions and seek clarification.

Concurrent to the conduct of the one-on-one meetings, CRA continued to refine its requirements in updates to the preliminary Statement of Work, in consideration of the findings from these sessions. This work was undertaken internally and the Fairness Monitor was not involved in this process.

Following the conclusion of the seventh one-on-one meeting, CRA indicated that it was considering a decision to proceed to a direct negotiation for this requirement. As a result, the Fairness Monitor was not engaged in any further one-on-one meetings held between CRA and the Qualified Respondent. CRA continued its preparations internally and notified the Qualified Respondent of its intention to proceed to direct negotiation via a meeting held on MS Teams on November 10, 2021. The Fairness Monitor was officially notified of this determination on November 24, 2021.

Observations

In reviewing the agenda for each one-on-one meeting, the agenda reflected the scope of the RRR phase as set out in the ITQ.

In observation of each of the seven (7) one-on-one meetings, the dialogue aligned to the agenda set for each session and was consistent with the process set out in the ITQ.

In reviewing the Records of Findings following each meeting, the Records reflected the discussions held.

No fairness issues were observed during the RRR phase overseen by the Fairness Monitor.

4. Reference documents

Documents related to solicitation numbers 1000353414 and 1000353414A are available on buyandsell.gc.ca and/or through the project office.