Procurement

Determinations

DEROUARD MOTOR PRODUCTS LTD.
File No. PR-2008-022

Decision made
Thursday, July 24, 2008

Decision and reasons issued
Tuesday, August 5, 2008

• DECISION
• STATEMENT OF REASONS
• • DECISION

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IN THE MATTER OF a complaint filed under subsection 30.11(1) of the Canadian International Trade Tribunal Act, R.S.C. 1985 (4th Supp.), c. 47

DECISION

Pursuant to subsection 30.13(1) of the Canadian International Trade Tribunal Act, the Canadian International Trade Tribunal has decided not to conduct an inquiry into the complaint.

André F. Scott
André F. Scott
Presiding Member

Susanne Grimes
Susanne Grimes
Acting Secretary

STATEMENT OF REASONS

1. Subsection 30.11(1) of the Canadian International Trade Tribunal Act ¹ provides that, subject to the Canadian International Trade Tribunal Procurement Inquiry Regulations, ² a potential supplier may file a complaint with the Canadian International Trade Tribunal (the Tribunal) concerning any aspect of the procurement process that relates to a designated contract and request the Tribunal to conduct an inquiry into the complaint. Moreover, subsection 30.13(1) of the CITT Act provides that, subject to the Regulations, after the Tribunal determines that a complaint complies with subsection 30.11(2) of the CITT Act, it shall decide whether to conduct an inquiry into the complaint.

2. Derouard Motor Products Ltd. (Derouard) of Kenora, Ontario, alleged that the Department of Public Works and Government Services violated sections 2.6.1 and 2.6.2 of the Treasury Board of Canada Secretariat’s (TBS) policy entitled Procurement Strategy for Aboriginal Business: Guidelines for Buyers/Government Officials (Contracting Policy Notice 1997-6), specifically with respect to its procurement practices regarding automobiles, light trucks and executive vehicles.

3. In addition, Derouard alleged that section 5.2.1 of TBS’s Directive on Fleet Management: Light Duty Vehicles and section 5.4.1 of TBS’s Directive on Fleet Management: Executive Vehicles contradicted the above-noted sections with respect to the procurement strategy for aboriginal businesses.

4. Paragraph 7(1)(c) of the Regulations requires that the Tribunal determine whether the information provided by the complainant discloses a reasonable indication that the procurement has not been carried out in accordance with whichever of Chapter Ten of the North American Free Trade Agreement, ³ Chapter Five of the Agreement on Internal Trade ⁴ or the Agreement on Government Procurement ⁵ applies.

5. The Tribunal notes that Derouard’s complaint alleged no violation of the trade agreements. The Tribunal’s authority relates exclusively to examining alleged violations of the trade agreements. Its mandate does not extend to the application or enforcement of government policies, such as TBS’s procurement strategy for aboriginal businesses, TBS’s directives on fleet management and the alleged contradictions between them. Accordingly, the Tribunal does not have the authority to conduct an inquiry into the alleged violations of TBS’s policies regarding vehicle management or aboriginal business opportunities raised in Derouard’s complaint, as they do not fall within the Tribunal’s mandate.

6. In light of the foregoing, the Tribunal will not conduct an inquiry into the complaint and considers the matter closed.

DECISION

7. Pursuant to subsection 30.13(1) of the CITT Act, the Tribunal has decided not to conduct an inquiry into the complaint.

¹ . R.S.C. 1985 (4th Supp.), c. 47 [CITT Act].

² . S.O.R./93-602 [Regulations].

³ . North American Free Trade Agreement Between the Government of Canada, the Government of the United Mexican States and the Government of the United States of America, 17 December 1992, 1994 Can. T.S. No. 2 (entered into force 1 January 1994).

⁴ . 18 July 1994, C. Gaz. 1995.I.1323, online: Internal Trade Secretariat <http://www.ait-aci.ca/index_en/ait.htm>.

⁵ . 15 April 1994, online: World Trade Organization <http://www.wto.org/english/docs_e/legal_e/final_e.htm>.