Learn about bid value reductions

What’s a bid value reduction?

Bid value reductions are a tool in the Yukon First Nation Procurement Policy. They're a mathematical way of re-ranking bids to reflect increased participation by Yukon First Nations businesses and people.

The greater the participation of Yukon First Nations businesses and Yukon First Nation people, the greater reduction we'll apply to a bidder’s price during the tender evaluation process.

The 3 types of bid value reductions are:

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

Who’s eligible for bid value reductions?

Both Yukon First Nation and Non-Yukon First Nation businesses are eligible.

Yukon First Nation businesses must be verified through the Yukon First Nation Chamber of Commerce before they can qualify for any ownership or business location-related bid value reductions.

Yukon First Nations businesses are eligible in 4 areas:

  • The level of Yukon First Nations ownership of a bidder or proponent.
  • The level of Yukon First Nations ownership of a subcontractor.
  • 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.

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

  • Partnering 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 am I eligible for?

There are different levels of bid value reductions. We apply reductions to the value of the work or labour being 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 there's a 5 per cent reduction to the work being performed by a Yukon First Nation business.
  • If a Yukon First Nation Business is at least 75 per cent Yukon First Nation owned there's a 10 per cent reduction to the work being performed by a Yukon First Nation business.
  • If a Yukon First Nation Business is 100 per cent Yukon First Nation owned there's a 15 per cent reduction to the work being performed by a Yukon First Nation business.

Yukon First Nation subcontractor

  • If a subcontractor is a Yukon First Nation owned 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 Yukon community other than Whitehorse and the contract activities are occurring 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

  • The dollar value of wages to be paid to Yukon First Nations employees on the project will receive a 15 per cent reduction on that dollar value.

How do I calculate a bid value reduction?

To 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 at 867-667-5385 or contracts@yukon.ca.

View the Yukon First Nations Business Registry

Search the Yukon First Nations Business Registry or find out how to add your Yukon First Nations business to the registry.

If I receive bid value reductions for using Yukon First Nation sub-contractors or labour, do those commitments form part of my contract?

Yes. If you receive bid value reductions during the tender evaluation, those commitments become obligations within the contract you will sign with the Government of Yukon. We'll actively monitor your progress in meeting these commitments.

If I have more than 1 subcontracted business that's Yukon First Nations owned can I get multiple bid value reductions?

Yes. The bid value reduction may be applied to each of the proposed subcontracted businesses based on:

  • the dollar value of the work they'll perform; and
  • their percentage of Yukon First Nation ownership.

For example, if you've subcontracted a Yukon First Nation business completing $5,000 of a $10,000 project and they're 100 per cent Yukon First Nation owned, you can apply for a 15 per cent bid value reduction on the $5,000 portion of work completed by the sub-contracted Yukon First Nation business.

In addition, if you subcontract another Yukon First Nation business to do $2,000 of the $10,000 project and they're 50 per cent Yukon First Nation owned, you can also apply for a 5 per cent bid value reduction to the $2,000 portion of work that the Yukon First Nation subcontracted business is completing.

If my bid price received bid value reductions for the evaluation and I win the contract, what's the value of the contract for?

The contract is for the bid amount you submitted at the time of tender close.

What if I do not want to submit for a bid value reduction or I am not eligible for bid value reduction, do I still need to complete these forms with my bid submission?

No, these forms are not mandatory.

Why was the bid value reduction not applied to my evaluation score?

There may have been an issue with how you calculated the bid value reduction or your eligibility. For questions about calculating bid value reductions, contact the Procurement Support Centre at the details below. If you have questions about eligibility, contact the Yukon First Nations Chamber of Commerce which maintains the Yukon First Nations Business Registry and verification system.

Who calculates and applies bid value reductions to the tenders?

The staff at the Procurement Support Centre apply bid value reductions.

 

Yes. If you receive bid value reductions during the tender evaluation, those commitments become obligations within the contract you will sign with the Government of Yukon. We'll actively monitor your progress in meeting these commitments.

Yes. The bid value reduction may be applied to each of the proposed subcontracted businesses based on:

  • the dollar value of the work they'll perform; and
  • their percentage of Yukon First Nation ownership.

For example, if you've subcontracted a Yukon First Nation business completing $5,000 of a $10,000 project and they're 100 per cent Yukon First Nation owned, you can apply for a 15 per cent bid value reduction on the $5,000 portion of work completed by the sub-contracted Yukon First Nation business.

In addition, if you subcontract another Yukon First Nation business to do $2,000 of the $10,000 project and they're 50 per cent Yukon First Nation owned, you can also apply for a 5 per cent bid value reduction to the $2,000 portion of work that the Yukon First Nation subcontracted business is completing.

There may have been an issue with how you calculated the bid value reduction or your eligibility. For questions about calculating bid value reductions, contact the Procurement Support Centre at the details below. If you have questions about eligibility, contact the Yukon First Nations Chamber of Commerce which maintains the Yukon First Nations Business Registry and verification system.

The staff at the Procurement Support Centre apply bid value reductions.

 

Contact: 

Contact Procurement Support Centre at 867-667-5385 or contracts@yukon.ca.