Alternate Dispute Resolution for contracts

The Canada Revenue Agency (CRA) has contracting authority for goods, services, leases and construction. While the CRA is not subject to the Government Contract Regulations, section 41 of the FAA, nor section 9 of the Public Works and Government Services Act, it does remain subject to the trade agreements as well as determinations of the Canadian International Trade Tribunal (CITT).

Complaints and disputes originate for a wide variety of reasons, real or perceived, however, they negatively reflect on the integrity of the CRA procurement and contracting process and we need to work vigorously to identify causes and implement solutions. This can be accomplished through a collaborative, interest-based process that seeks mutual gain in creating solutions, building trust and promoting open and clear communications.

The CRA will make every effort to prevent disputes from arising with the supplier community by being as clear as possible when communicating its needs and requirements and by using procurement processes which are open and fair. The CRA is committed to alternative forms of dispute resolution in its contracting and procurement activities in order that its employees and the supplier community are able to resolve disputes as early and quickly as possible. Therefore, the CRA has introduced an “Alternative Dispute Resolution System (ADR)” for procurement and contracting. The term ADR refers to a growing number of methods for resolving disputes before the matter is referred to arbitration, administrative tribunals or the courts.

Tribunals and the courts have become time-consuming and expensive for all sides in a dispute. They are increasingly less efficient in resolving disputes. There are less costly and non-confrontational ways to address issues that will enhance or preserve good relationships. Tribunals and the courts should be the last avenue of recourse and the CRA's ADR System for procurement and contracting should be the first.

Prior to initiating a written formal complaint, suppliers are strongly encouraged to resolve problems by contacting the contract officer, project manager or technical authority as identified in the request for proposal or contract document(s) within the CRA as Step 1 in the resolution process. If it is clear to both parties that this will not result in a settlement, the parties will move to Step 2. Although there are various processes that can still be tried, in an attempt to resolve disputes at this more formal step, ultimately, mediation is mandatory, before the parties can move further. Again, should mediation fail to resolve the matter(s) in dispute, the parties can pursue resolution through the more traditional means of arbitration, administrative tribunals or the courts. Suppliers are encouraged to use the Formal Complaint Form to submit their complaints to the CRA.

When ADR processes are used to resolve a dispute, the costs associated with the process will be shared equally between the CRA and the supplier. These costs may include, but are not limited to, the cost of a neutral third party to assist the disputants or the costs of facilities for the holding of meetings. All costs to be shared must be identified and agreed to by all parties before they are incurred. Internal costs, such as human resource costs, incurred by either party are not included in the shared costs.