October 2, 1996
(Tourism, Culture and Recreation)

BACKGROUND
Awarding of Cabot Pageantry Contract to American Company

1. Of the 16 proposals received, only four were deemed "qualified bids".
2. Bids were disqualified for the following reasons: incomplete; not to spec; all requested samples were not supplied.
3. Of the four qualifying bids, only one was from a Newfoundland company.
4. The Newfoundland company ranked fourth with a bid $45,000 plus more than the American company. This bid is approximately 22 per cent higher than the successful bid.
5. The Newfoundland company did not list any Newfoundland manufacturing.
6. Government is morally and legally obliged to spend public funds in a responsible and economical fashion - this is what government did in issuing this contract.
7. This contract was awarded through Government Purchasing Agency (GPA). This contract followed all government-established rules and regulations for tendering contracts.
8. The specs for the pageantry items were devised in consultation with the department's Agency of Record - Target Marketing.
9. Cabot personnel were available to advise and provide additional information to proponents.
10. On the advice of Cabot personnel, the successful bidder has been in contact with three local companies to secure local manufacturing where possible.