RESTRICTED
WORLD TRADE GPA/13
27March 1997
ORGANIZATION(97-1278)
Original: English Committee onGovernment Procurement
NOTIFICATION OFNATIONAL IMPLEMENTING LEGISLATION
Communication from Canada
Theattached communication hasbeenreceived fromCanada inaccordance withtheCommittee
Decision of4June1996 relating totheprocedures fortheNotification ofNational Implementing
Legislation (GPA/1/Add.1).GPA/13
Page2
SUMMARY OFLEGISLATION
1. Basic Legislation Giving Effect totheAgreement
BillC-57, AnActtoImplement theAgreement establishing theWorld Trade Organization (the
WTO Implementation Act), entered intoforce on1January 1995. TheWTO Implementation Act
accomplished allthatwasnecessary, bywayoflegislation, toensure thatCanada 'sobligations under
theAgreement onGovernment Procurement (AGP) canbemet. Section 3provides thatthepurpose
oftheWTO Implementation Actistoimplement theAgreement Establishing theWorld Trade
Organization, including theagreements setoutinAnnexes 1A,1B,1C,2and3thereof andthe
agreements setoutinAnnex 4thereof thathavebeenaccepted byCanada (collectively, theWTO
Agreement). Section 4provides thattheWTO Implementation Actisbinding ontheGovernment of
Canada.
PartIoftheWTO Implementation Actcontains general provisions applicable toimplementation
oftheWTO Agreement. Section 8provides thattheWTO Agreement isapproved. Sections 9to13
empower theFederal Cabinet totakevarious kinds ofaction infurtherance ofadministering Canada 's
activities under theWTO Agreement.
2. Additional Legislation Giving Effect totheAgreement
PartIIoftheWTO Implementation Actalsoprovides forrelated andconsequential amendments
toother federal legislation required togiveeffect totheWTO Agreements, including theAGP.
Section 116oftheWTO Implementation Actprovides foramendments totheFinancial
Administration Actthatpermit theFederal Cabinet togiveadirective toanyparent crown corporation
forthepurpose ofimplementing theWTO Agreement. Thisenables theFederal Cabinet torequire
thegovernment enterprises listed inCanada 'sAnnex 3ofAppendix IoftheAGPtocomply withthe
requirements oftheAGP.
Sections 40to42and44to46oftheWTO Actprovide foranumber ofminor amendments
totheCanadian International Trade Tribunal Act.More extensive amendments oftheCanadian
International Trade Tribunal Procurement Inquiry Regulations wereundertaken inorder toempower
theCanadian International Trade Tribunal (the"Tribunal") toconduct aninquiry intoacomplaint
regarding anyaspect oftheprocurement process inrespect ofacontract fortheprocurement ofgoods
orservices, oranycombination ofgoods andservices, described inArticle IoftheAGP. Prior to
these amendments, theTribunal hadjurisdiction toconduct aninquiry foranysuchcontract described
inArticle 1001 oftheNorth American FreeTrade Agreement (NAFTA) orinArticle 502ofthe
Agreement onInternal Trade (AIT).
TheCanadianInternationalTradeTribunalRulesgoverntheproceedings,practiceandprocedures
oftheTribunal indealing withprocurement complaints. Therulesalready provided forprocurement
complaints under theNAFTA andtheAITwhen theAGP entered intoforce anddidnotrequire
amendment.GPA/13
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3. Effect oftheLegislative Changes
Thecombined effect oftheWTO Implementation Actandtheamendments totheCanadian
International Trade Tribunal Procurement Inquiry Regulations is:
(i) torequire allgovernment entities andenterprises listed inCanada 'sAnnex 1and
Annex 3ofAppendix IoftheAGP toabide bytheprovisions oftheAGP; and
(ii) toempower theTribunal toconduct aninquiry intoanycomplaint thatacovered
government entity orenterprise hasfailed toabide bytheprovisions oftheAGP and
torecommend aremedy foranycomplaint thatitfindstobevalid, including awarding
acontract orpayment ofcompensation, asappropriate.
Government entities thataresubject totheAGP areexpected tocarry outtheirprocurement
activities inaccordance with theprovisions oftheAGP, aswellastheNAFTA andtheAIT.
Accordingly, theGovernment ofCanada usestheOpen Bidding Service (OBS), aninternationally
accessible electronic database, andpublishes abulletin called Government Business Opportunities which
contains most oftheopportunities listed ontheOBS. Each notice contains afieldfor"Agreement
Type" which identifies allapplicable tradeagreements. Tendering procedures andawarding ofcontracts
arealsocarried outinaccordance withtherequirements ofanyapplicable tradeagreements. Domestic
suppliers andforeign suppliers alike mayfileacomplaint withtheTribunal iftheybelieve thata
government entity hasfailed tocomply withtherequirements ofanyapplicable trade agreement.
4. Copies ofRelevant Legislation
Copies havebeenprovided totheWTO Secretariat of:1
(i) thepreamble, sections 1to13,andsections 40to45oftheWorld Trade Organization
Implementation Act,S.C.1994, C.57;
(ii) sections 1to3,13,16,17,30.1, 30.11 to30.19, 31to37,39,40and43to48of
theCanadian International Trade Tribunal Act,R.S.C. 1985, C.47;
(iii) Canadian International Trade Tribunal Procurement Inquiry Regulations (unofficial
consolidation); and
(iv) sections 1to29and93to108oftheCanadian International Trade Tribunal Rules,
SOR/91-409, SOR/93-601.
1Available forconsultation inoffice no.3012.GPA/13
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CHECKLIST OFISSUES
I. GENERAL ELEMENTS
1. HastheAgreement beentransposed intonational lawand/or doesitapply directly?
BillC-57, AnActtoImplement theAgreement Establishing theWorld Trade Organization ,
brought theAGP intoforce forCanada on1January 1996. Certain amendments totheFinancial
Administration Act,theCanadian International Trade Tribunal ActandtheCanadian International
Trade Tribunal Procurement Inquiry Regulations wererequired toimplement theAGPintoCanadian
law.
2. Inthecasethatentities below thefederal orcentral statelevelarecovered: arethesecategories
ofentities autonomous fromfederal orcentral statelevelgovernment intheimplementation
oftheAgreement?
n.a.
3. InthecasethatAnnex 3entities arecovered: arethese categories ofentities autonomous in
theimplementation oftheAgreement ordotheyapply thelegislation provided bythe
federal/central orsub-central level?
n.a.
4. Which main differences (ifany)existbetween theimplementing lawsatthefederal orcentral
level, thesub-central levelandforAnnex 3entities?
n.a.
5. Towhatextent isinformation technology usedintheprocess ofgovernment procurement?
TheGovernment ofCanada usestheOpen Bidding Service (OBS), aninternationally accessible
electronicdatabase.TheGovernmentalsopublishesabulletincalledGovernmentBusinessOpportunities
(GBO) which contains most oftheopportunities listed ontheOBS. Most bidding opportunities for
goods andservices valued atoverCAN $25,000 areadvertised ontheOBS, aswellasconstruction,
maintenance, architecture, engineering andleasing opportunities overCAN $60,000, communications
professional services valued atover CAN $50,000 andprinting requirements valued atover
CAN $10,000. Allprocurement covered bytheWTO Agreement isadvertised ontheOBSandin
theGBO. Each notice contains afieldfor"Agreement Type" which identifies allapplicable trade
agreements, including theAGP, forthatrequirement. Canada hassubmitted afullexplanation ofthe
useofinformation technology inprocurement totheWTO.2
2GPA/W/24/Add.2GPA/13
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II. SPECIFIC ELEMENTS
6. Identify thespecific provisions inyourlegislation which reflect thenational treatment andnon-
discrimination commitments ofArticle IIIoftheAgreement.
TheWTO Implementation Actdoesnotcontain specific provisions thatreflect thenational
treatment andnon-discrimination commitments ofArticle III.Rather, itapproves theAgreement
Establishing theWorld Trade Organization, including theagreements setoutinAnnexes 1A,1B,1C,
2and3thereof andtheagreements setoutinAnnex 4thereof thathavebeenaccepted byCanada (i.e.,
theAGP, among others). Italsoprovides forrelated andconsequential amendments toother federal
legislation required togiveeffect tothevarious agreements, including theAGP.
TheCanadian International Trade Tribunal Act(CITT Act)andtheCanadian International
Trade Tribunal Procurement Inquiry Regulations (CITT Regulations) wereamended toempower the
Canadian International Trade Tribunal (Tribunal) toconduct aninquiry intoacomplaint intoanyaspect
oftheprocurement process inrespect ofacontract fortheprocurement ofgoods orservices, orany
combination ofgoods andservices, described inArticle IoftheAGP. Prior tothese amendments,
theTribunal hadjurisdiction toconduct aninquiry foranysuchcontract described inArticle 1001
oftheNAFTA orinArticle 502oftheAIT.
Section 30.14 (2)oftheCITT Actprovides:
(2) Attheconclusion ofaninquiry, theTribunal shall determine whether the
complaintisvalidonthebasisofwhethertheproceduresandotherrequirements
prescribed inrespect ofthedesignated contract, ortheclass ofcontracts to
which itbelongs, havebeenorarebeing observed.
Section 11oftheCITT Regulations provides:
11. Where theTribunal conducts aninquiry intoacomplaint, itshalldetermine
whether theprocurement wasconducted inaccordance withtherequirements
setoutinwhichever oneoftheNAFTA, theAgreement onInternal Trade or
theAgreement onGovernment Procurement applies.
Thus,allegedfailuretoaccordnationaltreatmentornon-discriminationasrequiredbyArticleIII
oftheAgreement would beamatter fortheTribunal toconsider indetermining whether acomplaint
isvalid.
7. Article IX:2oftheAgreement foresees thattheinvitation toparticipate maytaketheformof
anoticeofproposedprocurement.Ifyourimplementinglegislationprovidesforthisopportunity,
givedetails.
Inaccordance withArticle IX:2oftheAgreement, alloftheentities covered bytheAgreement
arepermitted topublish aninvitation toparticipate intheformofanotice ofproposed procurement.
8. Article IX:3oftheAgreement foresees thatentities atthesub-central levelaswellasAnnex 3
entities mayuseanotice ofplanned procurement oranotice regarding aqualification system
asaninvitation toparticipate. Ifyourimplementing legislation provides forthisopportunity,
givedetails.
n.a.GPA/13
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9. Inthecaseofselective tendering procedures: towhat extent areentities allowed touse
permanent listsofsuppliers oristhere arequirement forlistsofsuppliers tobeselected on
acontract-by-contract basis?
Inthecaseofselective tendering procedures, theprocuring entity decides whether touseopen
orselective tendering procedures depending onthenature oftherequirement.
10. Article XIVoftheAgreement allows fornegotiation under certain conditions. Areentities
allowed toproceed tonegotiations? Ifso,which categories andwhat aretheconditions
imposed?
Alloftheentities covered bytheAgreement arepermitted toconduct negotiations on
procurements thatarecovered bytheAgreement. Thenegotiations mustbecarried outaccording to
theprovisions setoutinArticle XIVoftheAgreement.
11. Article XIcontains thetime-limits fortendering anddelivery. Time-limits shallnormally be
"notlessthatXdays". Does thedomestic legislation reflect thevarious minimum time-limits
assetoutintheAgreement? Ifnot,giveinformation onanylonger timelimits which have
beenestablished.
Consistent withourinternational agreements, theperiod forthereceipt oftenders varies from
7to40daysfrom thedateofpublication, depending upon therelevant legislation orpolicy.
Time limits fordelivery areestablished based ontherequirement andmustbeconsistent with
theprovisions setoutinArticle XIoftheAgreement.
12. Towhatextent doestheimplementing legislation allow entities, inpursuance ofArticle XII:1,
topermit tenders tobesubmitted inseveral languages (oneofwhich hastobealanguage
oftheWTO)? Towhatextent doentities usethisflexibility?
Tenders forAGP-covered procurement maybesubmitted inEnglish orFrench, Canada 'stwo
official languages.
III. CHALLENGE PROCEDURES -ARTICLE XX
13. Paragraph 3ofArticle XXrequires eachParty toprovide itschallenge procedures inwriting
andmake themgenerally available. Please provide thisinformation.
Acopyofthepublication Procurement Review Process -ADescriptive Guide, January 1996,
hasbeenprovided totheWTO. Thisguide describes Canada 'schallenge procedures.
14. Totheextent thatthisinformation doesnotfullyrespond tothefollowing points, please provide
thesupplementary information necessary todoso.
(i) Thetime-limit tolaunch acomplaint contained intheAgreement is"notlessthan
10days". What arethelimits indomestic legislation?
Acomplaint must befiledwithin 10working daysafterthedayonwhich thebasis
ofthecomplaint became known orreasonably should havebecome known tothepotential
supplier.ApotentialsupplierwhohasmadeanobjectionregardingaprocurementtotherelevantGPA/13
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government institution, andisdenied relief bythatgovernment institution, mayfileacomplaint
withtheTribunal within 10working daysafterthedayonwhich thepotential supplier has
actual orconstructive knowledge ofthedenial ofrelief, provided thattheobjection wasmade
within 10working daysafterthedaythatthebasisfortheobjection became known orreasonably
should havebecome known.
TheTribunal canextend thetimelimittoamaximum of30daysifitdetermines that
thefailure tofilethecomplaint intimewasattributable toacause beyond thecontrol ofthe
potential supplier orthatthecomplaint concerns anaspect oftheprocurement process ofa
systemic nature.
(ii) What body isresponsible forthechallenge procedures? Isthisa"court" oran
"impartial andindependent review body"? Ifthelatter:
TheCanadian International Trade Tribunal isresponsible fordetermining thevalidity
ofprocurement complaints. Itisaquasi-judicial tribunal and,asregards certain matters,
including theattendance andexamination ofwitnesses, theproduction ofdocuments andthe
enforcement ofitsorders, hasthepowers ofasuperior court ofrecord. TheTribunal isan
impartialandindependentreviewbodyforthepurposeofdeterminingthevalidityofprocurement
complaints.
- Howareitsmembers selected?
TheTribunaliscomprisedofaChairman,twoVice-Chairmen,uptosixotherpermanent
members anduptofivetemporary members, allofwhom areappointed bytheFederal Cabinet.
Permanent appointments areforafive-year term. TheChairman mayassign onemember of
theTribunal todealwithaprocurement complaint. Amember soassigned hasallofthe
Tribunal 'spowers, duties andfunctions inrelation tothecomplaint.
- Areitsdecisions subject tojudicial review?
Yes.
- Ifnot,howaretherequirements ofparagraph 6ofArticle XXtaken into
account?
n.a.
(iii) What istheapplicable lawbyreference towhich thechallenge body willexamine
complaints?
TheTribunal determines thevalidity ofprocurement complaints byreference tothe
standards setoutintheAGP, theNAFTA andtheAIT. Seesection 11oftheRegulations,
reproduced aspartofCanada 'sresponse toquestion 6.
(iv) Which rapid interim measures areprovided tocorrect breaches oftheAgreement and
topreserve commercial opportunities?
AnypartytoaprocurementcomplaintproceedingmayrequestthattheTribunalconsider
thefeasibility ofusing the"express option" procedure which isdesigned tobring about the
resolution ofacomplaint within 45daysinstead oftheusual 90-day time-frame.GPA/13
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- Dothesemeasures include thepossibility tosuspend theprocurement process?
Onwhatconditions?
TheTribunal mayorder thegovernment institution responsible fortheprocurement
topostpone theawarding ofthecontract untiltheTribunal determines thevalidity ofthe
complaint. TheTribunal shallrescind suchanorder if,within seven working daysofthemaking
oftheorder, thegovernment institution certifies inwriting thattheprocurement isurgent or
thatadelay inawarding thecontract would becontrary tothepublic interest. TheTribunal
hasnopower tosuspend acontract thathasalready beenawarded.
(v) Howdochallenge procedures provide forcorrection oftheAgreement? What types
ofcompensation forlossordamages suffered canthechallenge bodyorder?
WheretheTribunaldeterminesthatacomplaintisvalid,itmayrecommendsuchremedy
asitconsiders appropriate, including anyoneormore ofthefollowing:
(a) thatanewsolicitation forthecontract beissued;
(b) thatthebidsbere-evaluated;
(c) thatthecontract beterminated;
(d) thatthecontract beawarded tothecomplainant; or
(e) thatthecomplainant becompensated byanamount specified bytheTribunal.
Thegovernmentinstitutioninvolvedintheprocurementwouldberequiredtoimplement
theTribunal 'srecommendations tothegreatest extent possible. Ifthegovernment institution
doesnotintend tofullyimplement theTribunal 'srecommendations, itmustnotify theTribunal
ofthereasons fornotdoing so.
There isnoprescribed limitation onthekinds oflosses orthetotalamount thatthe
Tribunalcanrecommendascompensation.TheTribunaltendstorelyoncommonlawprinciples
applicable toassessment ofdamages. TheTribunal mayaward thecomplainant thereasonable
costs ofresponding toabidsolicitation, independently ofanyamount thatitrecommends as
compensation.
(vi) Giveanyavailable information onthetimeperiods forthestages ofthechallenge
process, including toobtain interim measures andafinaldecision.
SeeAppendix 1andAppendix 2ofthepublication Procurement Review Process -
ADescriptive Guide.
(vii) What aretheusual costs toconduct achallenge procedure? Arethere possibilities
foreseen todosofreeofcharge?
There isnofeeforfiling acomplaint withtheTribunal andparties mayfilematerials
andappear before theTribunal without being represented byalawyer. Thecomplainant would
havetobearanylegalexpenses thatitdoesincur which itmayrecover (inwhole orinpart)
under anaward ofcosts granted inthediscretion oftheTribunal. Similarly, acomplainant
maybeliable topayanaward ofcosts infavour oftherelevant government institution and
anyinterveningpartyiftheTribunaldismissesthecomplaintduringthecourseoftheproceedings
orultimately determines thatthecomplaint isinvalid.