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More Jobs, Economic Benefits for Canada's Inuit Through North Warning System Project

GATINEAU, QUEBEC -- (Marketwired) -- 03/28/14 -- Public Works and Government Services Canada

On March 28, 2014, the Government of Canada awarded a contract to Raytheon Canada Limited, for the operation and maintenance of the North Warning System.

Raytheon presented the lowest-cost compliant bid and will provide the greatest economic benefits for the Inuit. The contractor proposed achieving Inuit Benefits and projected targets towards jobs and growth for the Inuit well exceeding the 13 per cent requirement set out in the Request for Proposals.

This contract was awarded through an open, fair, transparent and competitive process that included structured and constructive engagement for more than two years with the three relevant Inuit Land Claim Authorities, as well as with industry.

Canadian taxpayers will also benefit from this agreement, at a savings of $13.8 million per year, as compared to the previous contract.

The North Warning System is comprised of 47 unmanned long- and short-range radar stations along the Arctic coast from Alaska to Labrador. The contract period is for five years, effective April 1, 2014.

Quick Facts

The contractor's obligations to provide Inuit Benefits under the three relevant Comprehensive Land Claims Agreements were strengthened and improved in the following ways:

--  The Inuit Benefits, exclusive of profits, must be equal to 13 per cent
    or more of the value of the firm, fixed price portion of the contract.
    The previous contract was to achieve 10 per cent for both the firm,
    fixed price and additional work requests.

--  A mandatory minimum of 20 per cent of the salaries of the contractor's
    workforce must be for Inuit beneficiaries. This was not mandatory in the
    previous contract.

--  A minimum of three Inuit beneficiaries must be in a full-time
    supervisory or management position, or be full-time supervisors or
    management trainees. This was not mandatory in the previous contract.

--  The company must hold at least one annual conference intended to train
    Inuit beneficiaries and subcontractors to properly and effectively bid
    for government- and contractor-issued projects. This was not mandatory
    in the previous contact.

--  To build upon the social and economic benefits of the previous contract,
    a number of structured and constructive engagements were undertaken with
    Inuit Land Claim Authorities under the affected Comprehensive Land
    Claims Agreements. These included consultations with: Inuvialuit
    Regional Corporation, representing the Inuvialuit Final Agreement;
    Labrador Inuit Development Corporation, representing the Nunatsiavut
    Agreement; and Nunavut Tunngavik Inc., representing the Nunavut Land
    Claims Agreement.

--  The North Warning System is used to ensure Canadian sovereignty in the
    North, and to support North American air surveillance and air defence
    operations under the North American Aerospace Defense Command (NORAD)
    agreement. This is done by gathering information about any airborne
    activity within the radar coverage area, and is remotely monitored and
    controlled by the Canadian Air Defence Sector, located at CFB North Bay,


"Jobs, growth and long-term prosperity is our commitment to Canadians and this new contract for the North Warning System helps to achieve that for the Inuit people in the North."

Diane Finley
Minister of Public Works and Government Services

"Canada and the United States have jointly protected the air space over the northern reaches of our continent through the North Warning System for close to three decades. We are committed to protecting our air space and cooperating with our allies for our shared security."

Rob Nicholson
Minister of National Defence

PWGSC news releases are also available on our Internet site.

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Marcel Poulin
Office of the Honourable Diane Finley

Media Relations
Public Works and Government Services Canada

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