Industry News
Commissionaires lose $12M tax agency guard contract in Canada
Security contract dispute in Canada: a motion to cancel a $12 million tax agency award to an Allied Universal unit failed, and Commissionaires raise concerns.
A Conservative motion to cancel a Canada Revenue Agency security contract failed in Parliament this week, The Canadian Press reported via BNN Bloomberg on Nov. 7. The $12 million contract went in June to a Canadian unit of Allied Universal, replacing Commissionaires, a not-for-profit guard company with a mandate to hire veterans.
Key points#
- The agency awarded the $12 million contract to Universal Protection Service of Canada, BNN Bloomberg reported.
- Commissionaires said the two bids were about $80,000 apart, which is under 1% of the contract's value, CBC News reported.
- The group also said it was told it would lose its right of first refusal on most federal contracts, according to BNN Bloomberg.
- A government spokesperson said evaluations go beyond price and can include past performance and the ability to recruit staff, BNN Bloomberg reported.
How the contract changed hands#
The tax agency job was always competitively bid, and Commissionaires held it until the latest tender, CBC News reported. A government procurement site says the award went to the "highest combined rating of technical merit and price," according to BNN Bloomberg.
Geoff Hamilton, a Commissionaires executive, said his concern extends to the 8,000 Commissionaires now working on federal sites, about 2,000 of them veterans, BNN Bloomberg reported.
What each side says#
Wayne Long, the secretary of state responsible for the agency, told the House of Commons that the process was independent and did not involve politicians, BNN Bloomberg reported. His spokesperson said the agency now has a policy to prioritize Canadian suppliers.
Allied Universal said it is a registered Canadian company with more than 10,100 employees and 19 offices in the country, and that it has hired several employees from the previous provider, according to BNN Bloomberg.
Opposition lawmakers from the Conservatives and the NDP criticized the award in the House, CBC News reported.
What it means for your company#
- Do not count on a preference lasting. A set-aside or first-refusal right can end, so keep your pricing and your proposals ready for open competition.
- Read the scoring before you price. When technical merit and price are combined, a small price gap may not decide the result either way.
- Keep proof of performance. Past performance can count, so save attendance, patrol and client reporting records from each contract.
- Plan for transition. A winning bidder may hire the outgoing company's officers, so review your contracts and retention plan before the rebid.
- Get advice on the rules. Government procurement rules differ by country and agency, so check with an attorney or the contracting agency.
Guardix is software for security companies that keeps proposals, contracts and client reporting in one place.
Frequently asked questions#
Who won the Canada Revenue Agency security contract?#
Universal Protection Service of Canada, a subsidiary of Allied Universal, won the $12 million contract in June, BNN Bloomberg reported.
What are the Commissionaires?#
Commissionaires is a private, not-for-profit security organization founded in 1925 to provide work for veterans of the Canadian Armed Forces and police services, CBC News reported.
Sources#
- Contracts
- Canada
- Government