The GNWT will reduce the threshold on requiring a formal tender process in procurement to $10,000 from $25,000 for general goods and services starting April 1.
The short-term procurement policy change will stay in effect until July 31, 2021, the GNWT stated in a news release on March 23.
Procurement change
All GNWT purchasing above $10,000 will now go through the formal . Government departments or employees seeking goods and services estimated to be $10,000 and over will use a public competitive procurement request such as a request for proposals (RFP), or a tender.
Purchases under $10,000 will continue to follow the order for purchasing, with local (BIP) registered businesses getting first priority; NWT, BIP registered business receiving second priority; local businesses, third; NWT businesses, fourth priority; and non-NWT based businesses getting fifth priority.
The process and limits for professional, architectural and engineering services will remain unchanged, however.
Response to business feedback
The revision comes in response to feedback from the business community and from business development staff in NWT communities.
It is also in line with mandate commitments of the 19th Legislative Assembly to ensure government procurement and contracting maximizes benefits to residents and businesses.
SA国际影视传媒淕NWT procurement is a significant contributor to the NWTSA国际影视传媒檚 economy and to businesses all across our territory,SA国际影视传媒� said Finance Minister Caroline Wawzonek. SA国际影视传媒淭his change to the GNWTSA国际影视传媒檚 procurement process is being enacted to ensure that more Northern businesses feel they have a fair and equal opportunity to compete for GNWT contracts.SA国际影视传媒�
This change will be assessed, along with other existing procurement policies, as part of the GNWT procurement and contracting review.
Roots out 'gaming of system'
Great Slave MLA Katrina Nokleby, who supports the procurement change, said it could counteract what she calls SA国际影视传媒�gaming the systemSA国际影视传媒� that has occurred in tender processes.
SA国际影视传媒淚t's my understanding when there is a sole-source tender you have to get two quotes. You're allowed to pick the lowest one. You'll have regional centres where someone has a buddy, and (the government will) go to one in the region and one in Yellowknife. The Yellowknife quote comes back higher, so they can say they gave it to the lowest bidder.
SA国际影视传媒淚 do believe there is some movement now that can stop that gaming of the system,SA国际影视传媒� said Nokleby.
With the four-month window of the change, Nokleby thinks the government might draw it out longer if it's found to be effective.
SA国际影视传媒淚t does make me think this is a bit of a short-term solution to something that could get out of control,SA国际影视传媒� she said.
The only drawback she sees in the policy change is that it could create more paperwork and administrative burdens in the procurement process.
Jenni Bruce, president of the NWT Chamber of Commerce, also supports the policy change.
SA国际影视传媒�(It) seems to align with feedback that we have heard from businesses during the procurement review process and we are happy to see it,SA国际影视传媒� she said.
The GNWT launched the with the announcement of an independent panel.
