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Contracting, Procurement & Leasing Activity

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Contracting, Procurement & Leasing Activity Contracting, Procurement & Leasing Activity Fiscal Year 2014-2015 Prepared by QEC – Finance December 2015 Table of Contents Overview ...................................................................................................................................................... 2 Procurement Objectives ............................................................................................................................. 2 NNI Considerations ..................................................................................................................................... 3 Structure of this Report .............................................................................................................................. 3 Contracting & Procurement –Results Summary ........................................................................................ 3 Section 1 Service Agreements .................................................................................................................. 4 Section 2 Contracts .................................................................................................................................. 5 Section 3 Air Charters .............................................................................................................................. 6 Section 4 Purchase Orders ....................................................................................................................... 7 Section 5 Leases ........................................................................................................................................ 8 Terminology ................................................................................................................................................ 9 Appendices .................................................................................................................................................. 11 Appendix 1 Service Agreements ......................................................................................................... 12 Appendix 2 Contracts .......................................................................................................................... 14 Appendix 3 Air Charters...................................................................................................................... 15 Appendix 4 Purchase Orders .............................................................................................................. 17 Appendix 5 Leases ...............................................................................................................................32 Qulliq Energy Corporation Page 1 Overview Qulliq Energy Corporation (QEC) is a Territorial Corporation wholly owned by the Government of Nunavut and operates in compliance with the Qulliq Energy Corporation Act. QEC generates and distributes electrical energy to Nunavummiut through the operation of twenty-six diesel generation plants in twenty-five communities and provides mechanical, electrical and line maintenance as well as support services from three regional centres. QEC supports the Minister responsible for Qulliq Energy Corporation on regulatory and intergovernmental issues, attends to corporate objectives provided by legislation, and has the mandate to coordinate all contracting, procurement and leasing activities to fulfil all operational requirements of the Corporation. QEC is pleased to present its annual report on contracting, procurement and leasing activities for the 2014-2015 fiscal year. This is the second year of a comprehensive report replacing three independent reports as prepared in past years. Procurement Objectives QEC is committed to ensuring fair value and ethical practices in meeting its contracting, procurement and leasing responsibilities. This is accomplished through effective policies and procedures aimed at: • Obtaining the best value for Nunavummiut; • Creating a fair and open environment for vendors; • Operating with integrity and transparency; • Maintaining current and accurate information; and • Ensuring effective approaches to meet QEC’s requirements. The Corporation is presenting this document to support the integrity and transparency of its procurement activities. With the release of this information QEC is bound legally to safeguard competitive information which may prove harmful if disclosed to the public. QEC strives to fully comply with the reporting requirements of QEC's procurement policies and frame of reference. The information contained in the report is obtained from various reports and is deemed to be accurate. Readers should keep in mind that the information presented is based upon contracting, purchasing and leasing records, and may differ slightly from actual payment data. Qulliq Energy Corporation Page 2 NNI Considerations In 2014-2015 no contracts administered by QEC were evaluated under the GN’s Nunavummi Nangminiqaqtunik Ikajuuti (NNI) Policy. NNI adjustments may result in a company being awarded a contract when the company would not have otherwise won the contract without the adjustment. At the time of writing, QEC is reviewing its corporate obligations under Article 24 of the Nunavut Land Claim Agreement and is providing input to the review of the NNI Policy. As a major review and re-write of the NNI policy is in process and nearing completion, QEC is deferring implementation of the NNI policy until such time as the review by GN and NTI is complete and adopted. Structure of this Report This report is divided into five sections and summarizes all contract, procurement and leasing activities for the Corporation for the 2014-2015 fiscal year: Section 1 Service Agreements Section 2 Contracts Section 3 Air Charters Section 4 Purchase Orders Section 5 Leases Contracting & Procurement –Results Summary Service Agreements Air Charters Property Leases Contracts Purchase Orders 2012-2015 Three Year Average Air Charters $451,900 Service Agreements $1,617,200 Property Leases $3,515,600 Contracts $21,361,900 Non Fuel Purchase Ord Qulliq Energy Corporation Page 3 Section 1 Service Agreements Service Agreements are normally used by QEC for the procurement of services other than the provision of goods and construction. In the 2014-2015 fiscal year, 35 Service Agreements were issued for more than $25,000. Overall, 86%* of these agreements were acquired through the tender or RFP/RFQ process, including SOAs of the GN. Nine Service Agreements were signed with a value exceeding $100,000 for such services as fuel tank and gen-set upgrades, hazardous waste removal, and the renewal of the agreement for satellite communications. Service Agreements are used primarily for maintenance type services and quite often are for multiple communities or regions. Service Agreements by Value 2014/15 2013/14 Type Number Value Number Value Up to $10,000 7 12% 56,566 2% 1 11% 7,130 3% $10 - $24,999 15 26% 288,671 7% 5 56% 101 ,627 43% $25,000 + 35 60% 3,615,480 91% 3 33% 129,370 54% Hourly / Unit 1 2% - - - - - - Total 58 100% 3,960,717 100% 9 100% 238,127 100% Service Agreements by Contracting Method 2014/15 2013/14 Type Number Value Number Value IT/IRFP/IRFQ 17 29% 1,114,582 28% - - - - Public Tender 4 7% 516,147 13% - - - - RFP/RFQ 10 17% 1,007,923 25% 6 67% 159,892 67% Sole Source 8 14% 852,181 22% - - - - SOA 19 33% 469,884 12% 3 33% 78,235 33% Total 58 100% 3,960,717 100% 9 100% 238,127 100% *(86% = 100% less 14% sole sourced contracts) Service Agreements by Location 2014/15 2013/14 Type Number Value Number Value Qikiqtaaluk 24 41% 2,264,632 57% 4 45% 101,100 43% Kivalliq 11 19% 288,776 7% 3 33% 98,297 41% Kitikmeot 12 21% 833,058 21% - - - - Multiple 11 19% 574,251 15% 2 22% 38,730 16% Total 58 100% 3,960,717 100% 9 100% 238,127 100% Qulliq Energy Corporation Page 4 Section 2 Contracts Contracts are used primarily for the purchase of Capital Assets. These assets are acquired for project construction and large scale installations and are traditionally awarded by Invitational and Public Tender. The majority of contracts issued in 2014-2015 were over $100,000 and were primarily the result of expansion and improvements at a number of power plants. Of these contracts, over $15,000,000 were for contracts issued for the construction of new plants in Taloyoak and Qikiqtarjuaq. It should be noted that the data presented is for award values at the time the contract was awarded. The award value is a static value and may not reflect what was actually paid to a vendor throughout the life of a construction or similar contract. Contracts by Value 2014/15 2013/14 Type Number Value Number Value Up to $25,000 3 14% 43,000 - 7 10% 108,433 1% $25 - $99,999 2 10% 91,565 1% 17 25% 943,008 7% $100,000 + 16 76% 22,991,183 99% 27 40% 12,198,665 92% Hourly / Unit - - - - 17 25% - - Total 21 100% 23,125,748 100% 68 100% 13,250,106 100% Contracts by Contracting Method 2014/15 2013/14 Type Number Value Number Value IT/IRFP/IRFQ 2 9% 61,253 - 5 8% 785,761 6% Public Tender 15 72% 21,739,600 94% 26 38% 9,512,770 72% RFP/RFQ 1 5% 1,251,583 6% 26 38% 1,290,020 10% Sole Source 2 9% 67,812 - 7 10% 1,454,558 11% SOA 1 5% 5,500 - 4 6% 206,997 1% Total 21 100% 23,125,748 100% 68 100% 13,250,106 100% Contracts by Location 2014/15 2013/14 Type Number Value Number Value Qikiqtaaluk 8 38% 10,599,471 46% 22 32% 4,744,880 36% Kivalliq 5 24% 3,568,995 15% 3 5% 875,695 7% Kitikmeot 3 14% 7,616,387 33% 5 7% 857,425 6% Multiple 5 24% 1,340,895 6% 38 56% 6,772,106 51% Total 21 100% 23,125,748 100% 68 100% 13,250,106 100% Qulliq
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