AGREEMENTS, LEGISLATION AND POLICIES REGARDING PUBLIC PROCUREMENT IN NEW BRUNSWICK

ATLANTIC PROCUREMENT AGREEMENT (APA)

The Atlantic Procurement Agreement is an agreement among the governments of the four Atlantic provinces which establishes basic principles for procurement of goods services and construction by these provinces. The Agreement was originally signed in 1992 and was updated in 1996 to extend coverage to academic institutions (i.e. universities), schools and hospitals and to ensure that it was compatible with the Agreement on Internal Trade.

The agreement is available in both official languages:

Questions concerning this agreement may be address to:

Department of Supply and Services
Mr. Richard Dunphy
Executive Director, Supply and General Services
P.O. Box 6000
Fredericton, N.B.
E3B 5H1
Phone: (506) 453-8737
Fax: (506) 453-7462
E-mail: richardd@gov.nb.ca

or

Department of Economic Development and Tourism
Mr. John Adams
Executive Director, Industry Services
P.O. Box 6000
Fredericton, N.B.
E3B 5H1
Phone: (506) 453-2298
Fax: (506) 457-7282
E-mail: johna@gov.nb.ca

New Brunswick vendors are advised that they have certain specific privileges when bidding on covered procurements from other parties to this agreement. You are strongly encouraged to report any difficulties or problems to one of the contact points listed above.

QUEBEC - NEW BRUNSWICK PROCUREMENT AGREEMENT

The provinces of New Brunswick and Quebec have signed a bilateral agreement which establishes some basic principles governing public procurement of goods, services and construction by the governments of these provinces. The agreement covers procurement by central government departments and agencies in both provinces.

The text of this agreement is available in both official languages at:

Questions concerning this agreement may be address to:

Department of Supply and Services
Mr. Richard Dunphy
Executive Director, Supply and General Services
P.O. Box 6000
Fredericton, N.B.
E3B 5H1
Phone: (506) 453-8737
Fax: (506) 453-7462
E-mail: richardd@gov.nb.ca

New Brunswick vendors are advised that they have certain specific privileges when bidding on covered procurements from the province of Quebec. You are strongly encouraged to report any difficulties or problems to the contact point listed above.

AGREEMENT ON INTERNAL TRADE

In 1995 all ten provinces along with the federal government and the governments of the territories signed a major agreement covering several aspects of internal trade within Canada. Chapter 5 of that agreement contains detailed provisions regarding public procurement of goods, services and construction by the parties.

The full text of this agreement is available in both official languages at: http://xinfo.ic.gc.ca/ic-data/economy/internal.trade/toc-eng.html

Questions concerning the procurement provisions of this agreement may be addressed to:

Mr. Richard Dunphy
Executive Director, Supply and General Services
P.O. Box 6000
Fredericton, N.B.
E3B 5H1
Phone: (506) 453-8737
Fax: (506) 453-7462
E-mail: richardd@gov.nb.ca

New Brunswick vendors are advised that they have certain specific privileges when bidding on covered procurements from other parties to this agreement. You are strongly encouraged to report any difficulties or problems to the contact point listed above.

MASH SECTOR PROCUREMENT

The MASH sector includes municipalities, municipal organizations, academic institutions, schools and health and social services organizations. The provinces are developing provisions under the agreements listed above to extend coverage to procurement by these bodies. As of September 1, 1997 the MASH sector is not covered by the provisions of the Quebec-New Brunswick Procurement Agreement or the Agreement on Internal Trade. The Atlantic Procurement Agreement currently covers procurement by universities, schools and hospitals but not municipalities. It is expected that municipalities will be included in the near future.

THE PUBLIC PURCHASING ACT AND REGULATIONS

In New Brunswick the procurement of goods and services by central government departments and agencies, certain crown corporations, municipalities, regional landfill corporations, universities, schools and hospitals is governed by the Public Purchasing Act and its regulations. This legislation defines the tendering process which must be used, exemptions, etc. and lists all covered organizations. For central government departments and agencies as well as schools, the Minister of Supply and Services is responsible for all goods and services procurement. The Central Purchasing Branch of the Department of Supply and Services is responsible for conducting the procurement process on behalf of the Minister. Other covered bodies are responsible for conducting their own procurements as prescribed by the legislation.

To obtain official copies of the Act and Regulations contact:

The Queen's Printer
Department of Justice
P.O. Box 6000
Fredericton, NB
E3B 5H1
Phone: 453-2520
Fax: 457-7899

N.B. RECIPROCAL TREATMENT POLICY

For procurements above the thresholds defined in the interprovincial procurement agreements, the province is required to treat goods, services and suppliers from other provinces in exactly the same manner as a New Brunswick supplier would be treated. Consideration of local content or economic benefits that favor New Brunswick suppliers is forbidden for these procurements.

For procurements which are not covered by those agreements, the province may apply a small preference for New Brunswick products, services or suppliers. When determining if a preference will be given, the Central Purchasing Branch will apply a policy of reciprocal treatment to bidders from other provinces. This means that the Branch will consider how New Brunswick bidders are treated in those other provinces before determining if a preference will be used and the extent to which it may be applied.

The following statement from the standard terms and conditions used in all goods and services tenders explains the use of preferences:

"Vendors are advised that, for procurements which are not subject to the provisions of one or more of the interprovincial procurement agreements, the province of New Brunswick reserves the right to apply provincial or regional preferences, consider local content in the evaluation of bids and/or refuse to consider bids from vendors from other jurisdictions when it is considered to be in the best interests of the province. When determining the use of these conditions, the province will consider, among other factors, the extent to which New Brunswick vendors have access to equivalent procurement opportunities in those jurisdictions and the treatment accorded by those jurisdictions to bids from New Brunswick vendors. The province will be the sole judge of whether these conditions will be used and the extent to which they will be applied."
NOTE:
Bidders are cautioned that such preferences will not be applied in all cases. The Branch will apply the Reciprocal Treatment Policy and will only use preferences when it is considered to be in the province's best interests. In no instance will a preference of greater than 5% of the lowest bid price be considered. When considering the amount of preference to be applied, the total provincial or regional content in the bids will be considered. The decision on the use of preferences and the amount applied will be final and non-negotiable.