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.
- 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% 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 Nation business ownership;
- Yukon First Nation business location; and
- Yukon First Nation labour.
Who's eligible for bid-value reductions?
- Yukon First Nation businesses
- Non-Yukon First Nation businesses
Yukon First Nations businesses are eligible in 3 areas:
- The level of Yukon First Nations ownership
- Whether the Yukon First Nation business’s primary location is outside of Whitehorse and is in the traditional territory where the work is taking place
- 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
- Employing 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 Nation businesses or people.
Yukon First Nation ownership
- If a Yukon First Nation business is at least 50 per cent Yukon First Nation owned, then there's a 5 per cent reduction
- If a Yukon First Nation business is at least 75 per cent Yukon First Nation owned, then there's a 10 per cent reduction.
- If a Yukon First Nation business is 100 per cent Yukon First Nation owned, then there's a 15 per cent reduction.
Yukon First Nation subcontractor
If a subcontractor is a Yukon First Nation 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 Nation ownership for the reduction values.
Primary business location
- If a Yukon First Nation 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 Nation 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 firstname.lastname@example.org.