Procurement inquiries and CRTC cost rules

Summary#

The Canadian International Trade Tribunal has decided to open two inquiries into procurement complaints: one from Med‑Eng Holdings ULC about a body‑armour tender and one from Nation Clean Energy Inc. about a marine fuel tender (decision dates May 16, 2024 and May 17, 2024). The Canadian Radio‑television and Telecommunications Commission has published the Proposed Cost Recovery Regulations under the Online News Act, which would set rules for reporting news revenue and charging digital news operators; the rules are slated to come into force on April 1, 2025 (this is a proposal, not final law).

What it does#

• For procurement complaints:
  • The Canadian International Trade Tribunal will hold an inquiry into a complaint by Med‑Eng Holdings ULC about a Department of Public Works and Government Services solicitation for infantry body‑armour systems. Med‑Eng says the tender was unclear about testing male and female ballistic panels and that it was unreasonably denied more time to test the female panels.
  • The Tribunal will also inquire into a complaint by Nation Clean Energy Inc. about a reissued solicitation from the Canadian Coast Guard for up to 950,000 litres of blended marine fuel for Vancouver and Victoria. NCE alleges it was put at a competitive disadvantage during retendering and evaluation.
• For broadcasting rules:
  • The Proposed Cost Recovery Regulations would require operators under the Online News Act to file an annual return by April 30 reporting their news revenue for the preceding calendar year.
  • The CRTC would calculate each operator’s charge using a formula based on that operator’s share of aggregate news revenue and the Commission’s estimated costs for the year.
  • Operators would have to pay invoices within 30 days. The rule would require operators to report their 2024 news revenue within 60 days after the regulations come into force.
  • The CRTC would publish its estimated recoverable costs in the Canada Gazette each year.
  • A public consultation document was posted (publication date May 23, 2024) with a deadline to file comments of June 24, 2024.

Who's affected#

• Procurement inquiries:
  • Med‑Eng Holdings ULC, other bidders on the same body‑armour solicitation, Department of Public Works and Government Services (PWGSC) and the Department of National Defence. These inquiries could affect how that contract is awarded or whether the procurement is reopened.
  • Nation Clean Energy Inc., other marine fuel suppliers bidding for Coast Guard contracts in Vancouver and Victoria, and the Canadian Coast Guard.
• Broadcasting cost recovery proposal:
  • Digital news operators and the digital news intermediaries they run (the businesses that host or distribute news online).
  • The Canadian Radio‑television and Telecommunications Commission (CRTC), and indirectly news publishers and online platforms that interact with those operators.
• If anything above is unclear in the original notices, the source does not make the broader effects fully detailed.

Why it matters#

• Procurement inquiries can delay or change government contracts. Suppliers who bid on the contested tenders may see their chances of winning affected, or the department may need to re-evaluate or reissue the solicitation.
• For the marine fuel market, an inquiry could affect supply arrangements in Vancouver and Victoria and the terms under which companies bid for public fuel contracts.
• The CRTC’s proposed regulations would create a routine reporting and payment obligation for digital news operators. That means additional paperwork and a potential new cost based on each operator’s share of news revenue. The rules aim to recover CRTC costs related to the Online News Act, but they are still at the proposal stage and open for comment until June 24, 2024.