Schedule of Newfoundland and Labrador

Annex 519.1: Party-Specific Exceptions

Schedule of Newfoundland and Labrador

Procurement Exceptions

For Newfoundland and Labrador the following is not covered by this Chapter:

A. Excluded Entities

The following entities are not covered by this Chapter:

1. Research & Development Corporation of Newfoundland and Labrador and any subsidiary thereof

B. Exceptions and Notes

1. Subject to otherwise applicable exceptions, this Chapter covers procurements undertaken by Nalcor Energy and any of its existing or future subsidiaries or affiliates (collectively “Nalcor”), as follows:
   1. All procurements undertaken by Newfoundland & Labrador Hydro above the applicable monetary thresholds;
   2. All procurements undertaken by any other Nalcor entity above the applicable monetary thresholds, except for:
      1. Any procurements that relate to the oil and gas sector;
      2. Any construction-related procurements where work on the applicable construction project has commenced prior to the effective date; and
      3. With regard to construction projects where work on the project commences after the effective date, Nalcor reserves the right to derogate from the Chapter for up to 30 percent of construction-related procurement on the project, based on total value of all construction-related procurement undertaken on the project; and
2. Any of Newfoundland and Labrador’s covered entities may derogate from this Chapter in order to promote regional economic development, subject to the following conditions:
   1. Any procurement qualifying for a derogation pursuant to this paragraph shall:
      1. be of a total value estimated at $1 million, or less; and
      2. support small firms or employment opportunities in non-urban areas.
   2. If the procurement meets the requirement of subparagraph (a)(ii) but its total value exceeds $1 million, the value of that part of the contract that would be affected by the derogation will not exceed $1 million.
   3. Newfoundland and Labrador’s covered entities may not derogate pursuant to this paragraph more than ten times in total per calendar year.
   4. A procurement will not qualify for a derogation pursuant to this paragraph if it is funded by the Government of Canada.
   5. Newfoundland and Labrador will notify the other Parties of any derogation taken pursuant to this paragraph at least 30 days prior to the signing of the relevant procurement contract. Such notice will include:
      1. details of the circumstances justifying a derogation pursuant to this paragraph;
      2. information regarding the name of the firm(s) and/or area(s) where the procurement is expected to provide regional economic benefits; and
      3. an explanation as to how the procurement complies with the requirements of this paragraph.