Full and Fair Opportunity/First Consideration – Procurement

Operators must provide a full and fair opportunity for businesses in the Province and other parts of Canada to participate in supplying goods and services used in support of work activities. Providing a full and fair opportunity means that the Operator must demonstrate that efforts have been taken, to the satisfaction of the C-NLOPB, to ensure that Newfoundland and Labrador and Canadian suppliers have been afforded an opportunity to participate in the contracting process.

The first consideration provision of the legislation clearly requires that the Operator and its contractors look first to the Newfoundland and Labrador market to meet their requirements for goods and services. Local suppliers of goods and services that are competitive on those terms should be given first consideration. Selecting suppliers on a competitive basis means that the selection must be determined on the basis of fair market price, quality and delivery. Operators and contractors are encouraged to limit bids to qualified Newfoundland and Labrador suppliers; or, in the event there is a single qualified supplier in the province, to sole source to that supplier instead of conducting a national or international bidding process.

Operators must ensure their contracting strategies do not unfairly disadvantage Newfoundland and Labrador and Canadian suppliers. For example, work scopes should be sized appropriately in quantity and geographic scope, in recognition of the capabilities of the supply community.

The use of global frame agreements, or contracting arrangements of a similar nature, may not be viewed as providing full and fair opportunity to Newfoundland and Labrador and Canadian suppliers to participate in the procurement process on a competitive basis.

The C-NLOPB designates a number of contracts for detailed review to ensure the legislative benefits principles of full and fair opportunity and first consideration are followed. Procurements and contracts which have significant national or provincial benefits implications may be subject to a detailed review by the C-NLOPB. Designated contracts are monitored by reporting to the C-NLOPB throughout the bidding/contracting process. Proposed contract awards for designated contracts are reviewed by the C-NLOPB and the opinions of both Governments are also sought before the C-NLOPB advises whether the contracting process was conducted fairly and consistent with the legislation and the Operator’s Benefits Plan.