Bid value reductions

What’s a bid value reduction?

Bid value reductions are a tool within the policy that increase the competitiveness of bids that have Yukon First Nations participation.

This means that if a bid has Yukon First Nations participation, we reduce the  bid price accordingly when we evaluate the tender. The reduction in price is only for the evaluation process, not the contract amount. 

For example:

• you are a 100 per cent owned Yukon First Nations business;
• you will be completing all of the work on the contract; and,
• you bid $100,000. 

We'll reduce your bid by 15 per cent and evaluate your bid at $85,000. We only reduce the amount during the evaluation process to make the bid more competitive. The actual contract value is the original bid amount of $100,000. 

Types of reductions

There are 3 types of reductions:

• Yukon First Nations business ownership;
• Yukon First Nations business location; and
• Yukon First Nations labour.

Who's eligible for bid-value reductions?

 

• Yukon First Nations businesses; and,
• non-Yukon First Nations businesses.

Yukon First Nations businesses are eligible in 3 areas:

• the level of Yukon First Nations ownership;
• whether the Yukon First Nations business’ primary location is outside of Whitehorse and is in the traditional territory where the work is taking place; and,
• the value of Yukon First Nations labour.

It is important to note that if you own a Yukon First Nations business and you’re interested in using bid-value reductions for ownership or location, you must be a verified business on the registry. 

Non-Yukon First Nations businesses are eligible in 3 areas:

• working with Yukon First Nations businesses through either partnership or corporate arrangements;
• subcontracting to Yukon First Nations businesses; and,
• mploying Yukon First Nations labour

What bid-value reduction level are you eligible for?

 

There are different levels of bid-value reductions. We apply reductions to the value of the work or labour performed by Yukon First Nations businesses or people.

Yukon First Nation ownership

• If a Yukon First Nations business is at least 50 per cent Yukon First Nation owned, then there's a 5 per cent reduction. 
• If a Yukon First Nations business is at least 75 per cent Yukon First Nation owned, then there's a 10 per cent reduction.
• If a Yukon First Nations business is 100 per cent Yukon First Nation owned, then there's a 15 per cent reduction.​

 

 

 

 

 

 

 

Yukon First Nations subcontractor

If a subcontractor is a Yukon First Nations business, we'll apply a Yukon First Nation ownership bid-value reduction to the value of the work being performed by that subcontractor. Refer above to Yukon First Nations ownership for the reduction values.

Primary business location

If a Yukon First Nations business is located in a community in the Yukon, other than Whitehorse and the contract activities occur within the traditional territory in which the business is located, there's an additional 5 per cent reduction to the work being performed by that business.

This reduction would also be applied to the value of work being performed by a verified sub-contracted business.

Employing Yukon First Nations labour

There is 15 per cent reduction on the dollar value of wages paid to Yukon First Nations employees.

 

 How do you calculate a bid-value reduction?

Download our bid-value reduction calculation spreadsheet and input your estimated values. If you have any questions, contact the Procurement Support Centre. Phone 867-667-5385 or email contracts@yukon.ca.

Return to home page