NTI, government group proposes new Article 24 policy

MICHAELA RODRIGUE

IQALUIT — A proposed new Nunavut government contracting policy could give Inuit businesses and those who employ Inuit a leg up when bidding on Nunavut government contracts.

A discussion paper released recently by a working group made up of territorial government and Nunavut Tunngavik officials recommends that the government give Inuit businesses extra points when they apply for any Nunavut government contract.

The draft policy suggests that companies bidding for Nunavut government contracts be given an advantage for Inuit ownership or Inuit hiring.

Nunavut-owned businesses who hire and train Nunavut or local employees would also be given extra points under the proposed policy. Companies could also gain points for using Inuit, northern, or local sub-contractors.

Grandfathering comes to an end

Some points would be given to companies with resident managers, but companies grandfathered under the current policy would lose their special status.

The working group was struck last fall to overhaul the territorial government’s contracting policies to comply with Article 24 of the Nunavut land claim agreement.

Article 24 states the government of Nunavut should help Inuit to compete for government contracts by providing “reasonable support and assistance.”

As a target, the agreement says the level of Inuit contracts awarded by the Nunavut government should reflect the population base of Nunavut.

John Lamb, an NTI representative on the working group, said the proposed policy tries to level the playing field for Inuit businesses and encourage them to participate in the economy.

But he said the proposal won’t make everyone happy.

“Nobody’s going to be entirely pleased and nobody’s going to be entirely displeased. You can say that there will be people who say this goes beyond where it should have gone. But you will find other people who will say you didn’t go far enough,” Lamb said.

John Purdy, a Nunavut government representative on the working group, said the proposal was the best the group could come up with after its public consultations.

New point system

Under the proposed system, a complex point system, awarded according to equally complex sliding scales, would be applied to contract bids, taking into account Inuit ownership, Nunavut ownership and local ownership.

Points would also be awarded for the employment of Inuit, the employment of Nunavut residents, the employment of local residents, and training.

Under the proposed policy, contractors could potentially have their bid prices reduced by up to 20 per cent if they can score points in the desired areas.

Another option in the proposed policy would be to pay out cash bonuses to firms able to prove that they have achieved certain levels of Inuit employment, ownership, or training once a contract is completed.

Under the current business incentive policy inherited from the GNWT, “northern” and “local” businesses are given a competitive advantage when competing for government contracts.

Under the proposed new policy, Inuit content is considered when the government buys goods and services.

The Nunavut government would use NTI’s list of Inuit registered businesses as a guide as to which businesses are Inuit-owned or not.

The proposed policy was put together after a series of meetings with Nunavut businesses in the fall.

During one of those meetings, the Baffin Regional Chamber of Commerce argued that under the land claim agreement, only fledgling Inuit businesses, not established ones, should be given advantages in getting government contracts.

But the proposed policy would grant points to any Inuit business. Purdy said giving extra points to some Inuit companies, but not others, may raise legal challenges.

“It’s very difficult to differentiate between one company or another. Someone would probably challenge it in court and win,” Purdy said.

The working group has also proposed changes to the way that government contracts are administered. An appeal and arbitration process could be created, and monitoring and enforcement increased, the draft paper states.

The proposed policies are being distributed to businesses and hamlets across Nunavut. Businesses are asked to submit their reactions by Jan. 14. After that, a more complete policy will be drafted.

A final contracting policy must be approved by NTI’s leadership and the Nunavut cabinet.

The working group hopes to have the new policy in place for this year’s sea-lift.