Trade Tribunal Inquiries and CRTC Cost Rules

Summary#

• The Canadian International Trade Tribunal has opened two inquiries into recent federal procurements after formal complaints from suppliers. The inquiries relate to a body-armour solicitation and a marine fuel supply solicitation (both decisions to inquire were made on May 16, 2024 and May 17, 2024).
• The Canadian Radio-television and Telecommunications Commission (CRTC) published proposed Cost Recovery Regulations under the Online News Act that set out how the CRTC would charge operators based on their news revenue. Those draft rules say they would come into force on April 1, 2025 (with a registration caveat).

What it does#

• Tribunal inquiries:
  • Opens an inquiry into a complaint by Med-Eng Holdings ULC (Med-Eng) about a Department of National Defence procurement, alleging unclear requirements about testing male- and female-shaped ballistic panels and an unreasonable refusal to extend testing time. Decision to inquire: May 16, 2024.
  • Opens an inquiry into a complaint by Nation Clean Energy Inc. (NCE) about a Canadian Coast Guard fuel procurement, alleging it was put at a competitive disadvantage during retendering and evaluation for the supply of up to 950 000 litres of marine fuel. Decision to inquire: May 17, 2024.
• CRTC proposed Cost Recovery Regulations (under the Online News Act):
  • Create a formula to calculate a yearly charge for each “operator” based on that operator’s share of total news revenue.
  • Require operators to file an annual return about their news revenue by April 30 each year.
  • Require payment of the invoice within 30 days.
  • Require operators to report their 2024 news revenue within 60 days after the regulations come into force.
  • Require the CRTC to publish the Commission’s estimated costs in the Canada Gazette each year.
  • Say the rules would come into force on April 1, 2025, or on the day they are registered if that is later.

Who's affected#

• Suppliers and bidders for federal contracts in these cases, especially:
  • Med-Eng Holdings ULC, other body-armour manufacturers or test labs, and the Department of National Defence and Public Works and Government Services (the contracting department).
  • Nation Clean Energy Inc., other marine-fuel suppliers, the Canadian Coast Guard, and Public Works and Government Services.
• Digital news operators and platforms that fall under the Online News Act and the proposed Cost Recovery Regulations. This includes operators that generate news revenue from digital news intermediaries (the notice uses the term “operator” rather than listing specific companies).
• The public indirectly, because procurement outcomes affect which vendors supply military and coast guard needs, and cost-recovery rules affect how digital news services are funded or run.

Why it matters#

• Tribunal inquiries can affect who wins or can compete for government contracts. If the Tribunal finds a problem, it can lead to re-evaluation, changes to the procurement, or other remedies. For suppliers, questions about testing rules or evaluation fairness can change costs and timelines.
• The CRTC draft rules set out how the regulator would recover its costs for overseeing the Online News Act. That could mean new reporting work and fees for news operators, with costs tied to each operator’s share of news revenue. The rules give operators time to prepare but set clear filing and payment timelines and an effective date of April 1, 2025 (subject to registration timing).