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Annex D

Microcomputer NMSO E60EJ-11000C/xxx/EJ


Annex D: RVD Process

1.1 Call-ups made by PWGSC Standing Offer Authority Using Request for Volume Discount Process:

  1. Use of RVD Process: For requirements that exceed the Call-up Limitations, PWGSC will issue a Request for Volume Discount (“RVD”). In addition to these requirements, PWGSC may, in its discretion, issue a Request for Volume Discount for any requirement. The Request for Volume Discount process allows Offerors to confirm to PWGSC their best and final offer in respect of a specific requirement for one or more Identified Users.

  2. Recipients of RVD: The RVD will be sent by PWGSC to all Offerors who hold a Standing Offer in the relevant Category(ies) and are listed in the selected Category(ies) at the date and time the RVD is issued (or to those Offerors that meet all the applicable security requirements). Where an RVD includes Products from multiple Categories of this NMSO, the RVD will be sent to Offerors who hold Standing Offers in any of the relevant Categories. Eligible Offerors will be determined on the date the RVD is issued by verifying the CAG website. The specifications (taken as a whole) in any given RVD will be sufficiently generic that a minimum of 50% of the Offerors in each of the relevant Category(ies) are able to submit an RVD Response.

  3. Technical Authority: PWGSC will act as the Technical Authority during the RVD process and for all Call-ups resulting from RVD.

1.2 Subject-matter of RVD :

  1. RVD may be issued for Products that are listed on the Standing Offers.

  2. Each RVD issued by PWGSC will specify:

    1. the time and date by which any interested Offeror must respond to the RVD to be considered for any resulting Call-up. PWGSC will generally provide Offerors with 5 working days from the date it issues the RVD to provide their RVD response. This period may be reduced (e.g. for urgent requirements) or extended (e.g. for more complex requirements), at the discretion of the Standing Offer Authority;

    2. any special security requirements, if they differ from those set out in the Resulting Contract Clauses;

    3. the applicable NMSO Category(ies);

    4. the required items in each Category;

    5. the required quantities for immediate delivery (every RVD will specify some quantities for immediate delivery);

    6. the optional quantities for delivery at a later date at Canada’s option. Optional quantities will generally be limited to 100% of the quantity specified for immediate delivery. Unless otherwise noted in the RVD, PWGSC must exercise the option to purchase the optional quantities within 12 months. Longer-term RVD with higher optional quantities will be considered only where PWGSC determines that an Identified User has demonstrated a requirement to purchase additional quantities over a longer period;

    7. if different from the standard delivery time required by the Resulting Contract Clauses, the required delivery date. From time to time, PWGSC may reduce the standard delivery period set out in the Article entitled “Delivery” in the Resulting Contract Clauses by specifying a shorter delivery period in the RVD;

    8. delivery location(s);

    9. whether installation is required;

    10. any desirable features (described below) and whether the basis of selection will be “lowest price” or “best value”. The definition of best value, if applicable, will be included in the RVD;and

    11. any requirements that differ from the NMSO Default System configuration for the selected Category(ies), including any Other Related Options.

  3. Cancellation of RVD: PWGSC may cancel an RVD process at any time and may later re-issue the same or a similar RVD.

1.3 RVD Response Requirements:

  1. Only responses to RVD that meet all the following requirements will be considered by PWGSC for a Call-up:

    1. The Products proposed for delivery in the RVD Response must be identical to the Offeror’s Default System(s) and/or Upgrades and/or Components and/or Other Related Items (as applicable) that have been approved and authorized for supply under this NMSO, as identified on the CAG website at the time the RVD was issued by PWGSC, unless:

      1. it is otherwise expressly stated in the RVD;

      2. the specifications listed in the RVD exceed the specifications in this NMSO; or

      3. for certain Products (as defined in (iii),below), the proposed Product exceeds the specifications of the currently listed NMSO Product.

    2. Proposed systems must be approved and authorized for supply under this NMSO. For greater certainty, Systems that have been the subject of requests for substitutions may not be proposed for delivery in response to an RVD, even if approved, unless they are listed on the CAG website at the time the RVD is issued by PWGSC.

    3. PWGSC will only consider Products allowable under the provisions of (i) (C) for: Optical Drives, Hard Drives, Mice, Keyboards, etc.

    4. If the RVD requests enhancement(s) to the minimum Default System specifications for any Category, the Offeror must offer either the requested enhancement or the Offeror’s existing approved and listed Default System specifications in that Category, whichever is greater.

    5. For proposed Products that are not listed in the NMSO, the RVD Response must include technical specification sheets or the specific URL address for the technical specifications demonstrating that the offered Product meets the requirements of the RVD and the NMSO.

    6. If the RVD response is being submitted by, or any portion of the Work will be performed by, an Authorized Reseller on behalf of the Offeror, the RVD response must include a completed Authorized Reseller Certification;

    7. All quoted prices must be in Canadian dollars;

    8. The quoted prices of NMSO items must not exceed the current ceiling prices of that Offeror listed for that item on the CAG website;

    9. Where the response includes more than one Product in a single Category, the RVD response must also include an individual price and the make and model number of each line item requested in the RVD and must clearly identify which System the Offeror will supply if issued the Call-up;and

    10. All prices must be unit prices and include all discounts off the NMSO ceiling prices, rather than bundled discounts. Where PWGSC believes that any unit price does not correspond to the extended pricing, PWGSC will use the unit prices to determine the correct extended pricing and notify the Offeror. Where multiple items have been priced on a bundled basis, PWGSC may request that the Offeror break down the pricing; in those cases, the Offeror’s total price for the items, once broken down into separate prices, must equal the originally submitted price for the bundle.

1.4 Selection of Offeror for RVD Call-up:

  1. Basis of Selection: An Offeror may be selected for an RVD Call-up on the basis of “lowest price” or “best value”.

    1. If the basis of selection is lowest price, Canada will calculate the aggregate cost of all items (both the initial and optional quantities) listed in the RVD. The responsive RVD response with the lowest aggregate cost will be recommended for award of a contract.

    2. If the basis of selection is best value, Canada will calculate the aggregate cost of all items (both the initial and optional quantities) listed in the RVD after applying the applicable reduction percentages from the RVD Discounts and/or Desirable Features.

      1. Benchmark Discounts: The Benchmark Discount percentages that will be applied are those indicated on the Benchmark Testing Report section of the PWGSC CAG website at the date and time of RVD issuance. The Benchmark Discount percentages will be applied to the price of the NMSO System(s) only. The Benchmark Discount percentages will be included in an Annex to the RVD.

      2. Desirable Features: Where approved by the PWGSC Technical Authority, an RVD may specify desirable features that will be taken into account in selecting the Offeror for Call-up. Desirable features will be associated with a percentage by which the quoted price for the RVD will be notionally reduced to reflect the added value to Canada represented by those features. When the Product quoted in response to an RVD includes the desirable feature(s) specified in the RVD, then the corresponding percentage (e.g., 2%) will be deducted from the price of the mandatory (plus any optional) quantities of the applicable Products. A maximum of 5% for any single item will apply, along with a maximum overall reduction to an Offeror’s quoted price of 10%.

      3. Example: If an RVD is issued for Systems and another Product and uses the best value basis of selection with Benchmark Discounts for the System and a Desirable Feature on the other Product, the Best and Final Offer Price (BFOP) will be calculated as follows:

        BFOP = System Unit Price X Quantity X (100% - Applicable RVD Discount %) + Product 2 Unit Price X Quantity X (100% - Applicable Desirable Features Discount)

      4. PWGSC will apply the price reduction to the quoted price(s) and Offerors are not required to do so in their RVD responses. These price reductions will be used only for the purposes of selecting an Offeror for Call-up and will not affect the price chargeable if a Call-up is issued.

      5. The responsive RVD response with the lowest BFOP will be recommended for award of a contract.

  2. Multiple Categories: When a RVD is issued for multiple Categories:

    1. If the all Offerors active in each category covered by the RVD are identical, evaluation will be done on the requirement as a whole. If requested by the Identified User, and described in the RVD, evaluation will be done on a per Category basis.

    2. If the Offerors active in each category covered by the RVD are different, evaluation will be done on a per Category basis. Where approved by the PWGSC Technical Authority, a desirable feature discount may be applied to the price offered by Offeror/Authorized Reseller submitting a response to multiple Categories. Any RVD where this applies will explain how the desirable feature discount will be applied.

  3. Multiple Responses: If an Offeror submits multiple responses to an RVD offering to supply the same System (e.g., the Offeror has more than one of its Authorized Resellers submit responses as its agent), and the Offeror wishes to withdraw one of those responses, the PWGSC Standing Offer Authority reserves the right to require that all of the Offeror’s responses offering the same System be withdrawn.

  4. Withdrawal of RVD Response by Offeror: An Offeror may withdraw its response to an RVD at any time, in which case PWGSC will no longer consider that Offeror’s response, but may continue to consider all other responses.

  5. Socio-economic considerations: The selection of an Offeror for Call-up using an RVD process will not be based on socio-economic considerations; however, desirable features may include Product qualities or supplier commitments that are more consistent with Canada’s commitments to Green Procurement and Sustainable Development.

  6. Only one response: If only one response that meets the RVD requirements is received, Canada may request that the Offeror submit price support in the form of one or more of the following:

    1. a current published price list and the percentage discount available to Canada;

    2. paid invoices for like goods or services (like quality and quantity) sold to other customers;and

    3. a price certification from the Offeror.

    4. If Canada determines that the prices being offered by do not represent good value to Canada, Canada reserves the right to reject the response or negotiate with that Offeror.

  7. Demonstration or Compatibility Testing: PWGSC may require that the Offeror demonstrate through testing (including compatibility testing) that any items that it proposes to deliver in response to an RVD meet the RVD specifications. Canada is not obligated to test any or all Products offered.

  8. Multiple Call-ups Resulting from RVD Process: If specified in the RVD, the total requirement may be split between two or more Offerors.

  9. Negotiation: Further negotiations may be conducted before issuing a Call-up resulting from an RVD. Any negotiations will be conducted by the Standing Offer Authority specified in the RVD. The Standing Offer Authority may also require a certification before issuing a contract, confirming that the pricing satisfies the requirement described in Article 7.13 of the Resulting Contract Clauses.

1.5 RVD Contract:

  1. Terms and Conditions: The RVD Contract consists of the Resulting Contract Clauses set out in the NMSO, plus any additional terms and conditions identified in the RVD.

  2. Option to Include Implementation Services: For RVD, PWGSC reserves the right to request an up-front fixed price for implementation. The definition of implementation may be defined during PWGSC and client engagement.

  3. Expansion (for UNIX, Blade Systems and Servers with 4 or more CPU sockets): RVD under this Standing Offer will be conducted to satisfy a requirement for one or more Systems. Over the course of any contract awarded as a result of this RVD, the required computing capacity may expand; compatibility and proprietary issues may arise with respect to any expansion once the Systems(s) is/are put in place. Therefore, Offerors are advised that Canada may negotiate with the resulting Contractor for these computing expansion requirements by way of amendments to any contract awarded as a result of an RVD, as long as:

    1. contract amendments expanding the computing capacity of the RVD Product(s) will be made only within the System warranty period for the System put in place as a result of this RVD;

    2. the general scope of the Work will remain unchanged; any computing expansion must clearly be an expansion of the System(s) purchased (and not a replacement or a completely new System in order to circumvent the Call-up terms and conditions) and it must be for use by the same Identified User (unless the Identified User under the Contract has been amended since award, so that the System is now being used by another Identified User);

    3. the final contract value will be no more than double the value of the total value of any Contract (including the exercised options) resulting from this RVD;

    4. no more than 3 amendments to the contract can be made for computing expansion requirements (although additional amendments may be made for other reasons);and

    5. any amendment expanding the computing capacity of the System(s) purchased under this RVD must come through the PWGSC Standing Offer Authority for review and approval.

    6. pricing for equipment purchased through an RVD Call-up Amendment to expand the capacity of the System will not exceed 10% above the RVD price proposed for that equipment. Where an item is quoted in both the Mandatory and Option quantity sections of the RVD, the RVD Option pricing will be used for comparison purposes. For all other items: in order to qualify for capacity expansion a similar discount must be offered.

  4. Non-Standing Offer Items: PWGSC reserves the right to add up to $25,000.00 of Non-Standing Offer items (which were not specified in the RVD document) to any Call-up resulting from a RVD. These items must be provided at a price in accordance with the Offeror's current published price list less any applicable government discounts; a minimum 10% discount must be offered, otherwise the Non-Standing Offer items will not be included in the Call-up.

1.6 Notification of RVD Results:

  1. All Offeror/Authorized Resellers who respond to an RVD will be notified in writing of the outcome of the RVD process. This notice will include the following information:

    1. RVD Number (e.g., RVD # 12345-012345);

    2. Offeror(s) selected for Call-up (e.g., XYZ Inc.);

    3. Value of Call-up (e.g., $177,004.33, GST/HST Included);and

    4. Number of RVD responses received by PWGSC (e.g., 5); and

    5. Best and Final Offer Price of the Offeror to whom the notification is being sent and the Best and Final Offer Price of the Offeror selected for Call-up.

  2. Unless required to do so by a court or other body of competent jurisdiction, Canada will not disclose the unit prices quoted by an Offeror in response to an RVD. Nor will Canada identify in the notification of RVD results the specific quantities of items subject to the Call-up.