Frequently Discussed Topics
1. Legal Review Process
2. NPP Contracting Divisional Representatives
3. Insurance Requirements
4. Standing Offers
5. Indemnification
1. Legal Review Process
NPP contract template should be used whenever possible, but there are circumstances whereby third-party agreement may used. Third party contracts/agreements must be reviewed by a Divisional Contracting Representative who will conduct the preliminary risk assessment. Based on the preliminary results, contracts/agreements requiring further assessment are to be forwarded to the NPP Procurement and Contracts Officer for liaison with CFLA.
To expedite the process and avoid multiple inquires , all requests for a CFLA contract/agreement review must contain the following:
- Contract/agreement;
- A copy of any previous or current contract/master agreement with the vendor;
- Copy of an RFP, if applicable;
- Statement of Work; and
- Any other relevant documentation or communication with the vendor.
The CFLA contract review process requires minimum three weeks, therefore you should ensure that the legal review is incorporated into the project timeline.
2. NPP Contracting Divisional Representatives
Each CFMWS division has a dedicated NPP contracting representative who is the first point of contact for divisions in all contracting/procurement issues.
3. Insurance Requirements
The purpose of insurance clauses in contracting is to minimize and/or control the risk exposure. The NPP Contracting Policy requires that contractors obtain and maintain, for the duration of the contract, a Commercial General Liability Insurance issued for an amount not less than $2M per occurrence. Commercial General Liability insurance provides broad coverage for claims made in respect of bodily injury, death and damage to the property of third parties arising from the contract-related activities. Risk arising from work under the contract should be identified and assessed to determine whether increased insurance requirements should be included in the contract.
According to the NPP Contracting Policy, the removal of the insurance requirements can only be authorized by a CFMWS Division Head or a Base/Wing Commander. NPP contracting authorities do not have the capacity to remove the insurance requirement for an NPP contract. Each division has its own procedure for processing those requests. If in doubt, contact the NPP Contracting Divisional Representative or the NPP Procurement and Contracts Officer.
4. Standing Offers
NPP does not have a standing offer capacity. Due to our legal status and the nature of NPP, CFMWS is not recognized as a distinct organization by the Public Services and Procurement Canada (PSPC) and cannot be listed as a qualified user. NPP is a distinct type of property that operates under a different accountability framework and is subject to different laws and regulations from the Public.
Until the internal capacity to provide standing offers is developed, NPP contracting authorities can use a DND standing offer as one of the minimum three requested quotes. If a supplier is willing to extend the standing offer terms to NPP, it can be used as a part of a solicitation process. Regardless if a supplier has a Standing Offer with a Base, this has no bearing on the NPP contracting and procurement process. Using a public arrangement as a source for NPP expenditure is a breach of the NPP Contracting Policy.
5. Indemnification
Contracting authorities do not have the capacity to indemnify Her Majesty or the CDS therefore signing contracts with indemnification clauses, without prior approval/authorization, is a breach of the NPP Contracting Policy. Third party contracts should not be signed without a review by a Divisional Contracting Representative and/or the NPP Procurement and Contracts Officer who will determine whether a CFLA legal review is required.
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