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NAFTA - Government Procurement
Chapter Ten
Government Procurement
Article 1001: Objectives
The Parties shall strive to achieve the liberalization of
their measures regarding government procurement, as specified by
the obligations in this Chapter, so as to provide balanced,
non-discriminatory, predictable and transparent government
procurement opportunities for the suppliers of each Party.
Article 1002: Scope and Coverage
1. Subject to Annexes 1002.1 through 1002.7, this Chapter applies
to any measure regarding the procurement of goods or services or
any combination thereof, by any entity listed in Annex 1002.1
(Federal Government Entities), Annex 1002.3 (Government
Enterprises) and, when completed, Annex 1002.2 (State and
Provincial Government Entities), where the value of the contract to
be awarded is estimated, at the time of publication of a notice in
accordance with Article 1010 (Invitation to Participate), to equal
or exceed the applicable threshold as set forth in paragraph 3.
2. Where the contract to be awarded by the entity is not covered
by this Chapter, this Chapter shall not be construed to cover any
good or service component of that contract. However, no Party shall
prepare, design or otherwise structure any procurement contract in
order to avoid the obligations of this Chapter.
3. Subject to Annex 1002-A, the applicable thresholds in U.S.
dollars are:
(a) for entities listed in Annex 1002.1 (Federal Government
Entities),
(i) $50,000 for goods contracts,
(ii) $50,000 for services contracts, except for
construction services contracts, and
(iii) $6.5 million for construction services
contracts; and
(b) for entities listed in Annex 1002.3 (Government
Enterprises)
(i) $250,000 for goods contracts,
(ii) $250,000 for services contracts, except for
construction services contracts, and
(iii) $8.0 million for construction services
contracts.
4. Threshold values are denominated in real terms and therefore
shall incorporate the inflation rate of the United States. The
United States shall, every two years, calculate and notify to the
other Parties the threshold values denominated in nominal terms
according to of Annex 1002.8 (1) (Indexation and Conversion of
Thresholds).
5. Each Party shall comply with Annex 1002.8 with respect to the
calculation and conversion of the value of thresholds into national
currencies.
6. For purposes of this Chapter, procurement includes procurement
by such methods as purchase, lease or rental, with or without an
option to buy, in accordance with the thresholds and coverage
applicable in this Chapter. Procurement does not include the
acquisition of fiscal agency or depository services, liquidation
and management services for regulated financial institutions and
sale and distribution services for government debt.
7. As between any Parties who are also party to the GATT
Agreement on Government Procurement or any successor agreement to
which such Parties are party, this Chapter shall prevail to the
extent of any inconsistency between the provisions of such
agreement and this Chapter.
Article 1003: Valuation of Contracts
1. Each Party shall ensure that its entities, in determining
whether any contract is subject to this Chapter, apply paragraphs
2 through 6 in calculating the value of that contract.
2. An entity, in calculating the value of a contract, shall take
into account all forms of remuneration, including premiums, fees,
commissions and interest.
3. An entity shall not select a valuation method, or divide
procurement requirements into separate contracts, to avoid the
application of this Chapter.
4. Where an individual requirement for a procurement results in:
(a) the award of more than one contract, or
(b) in contracts being awarded in separate parts,
the basis for valuation shall be either:
(c) the actual value of similar recurring contracts concluded
over the previous fiscal year or 12 months adjusted,
where possible, for anticipated changes in quantity and
value over the subsequent twelve months; or
(d) the estimated value of recurring contracts in the fiscal
year or 12 months subsequent to the initial contract.
5. In the case of a contract for lease or rental, with or without
an option to buy, or in the case of a contract that does not
specify a total price, the basis for valuation shall be:
(a) in the case of a fixed-term contract, where the term is
12 months or less, the total contract value for its
duration or, where the term exceeds 12 months, the total
contract value including the estimated residual value; or
(b) in the case of a contract for an indefinite period, the
estimated monthly installment multiplied by 48.
If the entity is uncertain as to whether a contract is for a fixed
or an indefinite term, the entity shall calculate the value of the
contract using the method set forth in subparagraph (b).
6. In cases in which tender documentation specifies the need for
optional purchases, the basis for valuation shall be the total
value of the maximum permissible procurement, inclusive of all
possible optional purchases.
Article 1004: National Treatment and Non-discrimination
1. With respect to all measures regarding government procurement
covered by this Chapter, each Party shall accord to goods of any
other Party, as determined in accordance with the rules of origin
referred to in Article 1005(1) (Rules of Origin), to services of
any other Party, as determined in accordance with Article 1005(2),
and to the suppliers of such goods or services, treatment no less
favorable than the most favorable treatment that it accords to:
(a) goods, services and suppliers of that Party; and
(b) goods, services and suppliers of any other Party.
2. With respect to all measures regarding government procurement
covered by this Chapter, no Party may:
(a) treat a locally established supplier less favorably than
another locally established supplier on the basis of
degree of foreign affiliation or ownership; or
(b) discriminate against a locally established supplier if
the goods or services offered by that supplier for the
particular procurement are goods or services of any other
Party.
3. Paragraph 1 does not apply to customs duties and charges of
any kind imposed on or in connection with importation, the method
of levying such duties and charges, and other import regulations,
including restrictions and formalities.
4. Each Party reserves the right to deny to an enterprise of any
other Party the benefits of this Chapter in accordance with the
provisions of Article 1113 (Denial of Benefits), except
subparagraph (a).
Article 1005: Rules of Origin
1. No Party shall apply to goods that are imported from any other
Party for purposes of government procurement covered by this
Chapter, rules of origin that are different from or inconsistent
with the rules of origin the Party applies in the normal course of
trade, which will be the non-preferential rules set out in Chapter
Three (for country of origin marking purposes) at such time as they
become the rules of origin applied in the normal course of trade.
2. Notwithstanding any other provision of this Chapter, a Party
may deny to an enterprise that is a supplier of services of another
Party the benefits of this Chapter if:
(a) nationals of any non-Party own or control that
enterprise; and
(b) that enterprise has no substantial business activities in
the territory of the Party under whose laws it is
constituted.
Article 1006: Prohibition of Offsets
Each Party shall ensure that its entities do not, in the
qualification and selection of suppliers, goods or services, or in
the evaluation of bids and the award of contracts, consider, seek
or impose offsets.
Article 1007: Technical Specifications
1. Each Party shall ensure that its entities do not, with the
purpose or the effect of creating unnecessary obstacles to trade,
prepare, adopt or apply any technical specification laying down:
(a) the characteristics of the goods or services to be
procured such as quality, performance, safety and
dimensions, symbols, terminology, packaging, marking and
labelling;
(b) the processes and methods for their production related to
the goods characteristics; or
(c) requirements relating to conformity assessment.
2. Each Party shall ensure that any technical specification
prescribed by its entities is, where appropriate:
(a) specified in terms of performance criteria rather than
design or descriptive characteristics; and
(b) based on international standards, national technical
regulations, recognized national standards or building
codes.
3. Each Party shall ensure that the technical specifications
prescribed by its entities do not require or refer to a particular
trademark or name, patent, design or type, specific origin or
producer or service provider unless there is no sufficiently
precise or intelligible way of otherwise describing the procurement
requirements and provided that, in such cases, words such as "or
equivalent" are included in the tender documentation.
4. Each Party shall ensure that its entities do not seek or
accept, in a manner that would have the effect of precluding
competition, advice that may be used in the preparation or adoption
of any technical specification for a specific procurement from a
person that may have a commercial interest in that procurement.
Article 1008:Tendering Procedures
1. Each Party shall ensure that the tendering procedures of its
entities:
(a) are applied in a non-discriminatory manner; and
(b) are consistent with the provisions of this Article and
with Articles 1009 (Qualification of Suppliers) through
1016 (Limited Tendering).
2. In this regard, each Party shall ensure that its entities:
(a) do not provide to any supplier information with regard to
a specific procurement in a manner that would have the
effect of precluding competition; and
(b) provide all suppliers equal access to information with
respect to a procurement during the period prior to the
issuance of any notice or tender documentation.
Article 1009: Qualification of Suppliers
1. No entity of a Party may, in the process of qualifying
suppliers in tendering procedures, discriminate between suppliers
of the other Parties or between domestic suppliers and suppliers of
the other Parties.
2. The qualification procedures followed by an entity of a Party
shall be consistent with the following:
(a) any conditions for participation by suppliers in
tendering procedures shall be published sufficiently in
advance so as to provide the suppliers adequate time to
initiate and, to the extent that it is compatible with
efficient operation of the procurement process, to
complete the qualification procedures;
(b) any conditions for participation by suppliers in
tendering procedures, including financial guarantees,
technical qualifications and information necessary for
establishing the financial, commercial and technical
capacity of suppliers, as well as the verification of
whether a supplier meets those conditions, shall be
limited to those that are essential to ensure the
fulfillment of the contract in question;
(c) the financial, commercial and technical capacity of a
supplier shall be judged both on the basis of that
supplier's global business activity and its activity, if
any, in the territory of the Party of the procuring
entity;
(d) no entity may misuse the process of, including the time
required for, qualification in order to exclude suppliers
of any other Party from a suppliers' list or from being
considered for a particular procurement;
(e) an entity shall recognize as qualified suppliers those
suppliers of any other Party that meet the conditions for
participation in a particular procurement;
(f) an entity shall consider for a particular procurement
those suppliers of any other Party that request to
participate in the procurement and that are not yet
qualified, provided there is sufficient time to complete
the qualification procedure;
(g) an entity that maintains a permanent list of qualified
suppliers shall ensure that suppliers may apply for
qualification at any time, that all qualified suppliers
so requesting are included in the list within a
reasonably short period of time and that all qualified
suppliers included in the list are notified of the
termination of any such list or of their removal from it;
(h) if, after publication of a notice in accordance with
Article 1010 (Invitation to Participate), a supplier that
is not yet qualified requests to participate in a
particular procurement, the entity shall promptly start
the qualification procedure;
(i) an entity shall advise any supplier that requests to
become a qualified supplier of its decision as to whether
that supplier has become qualified; and
(j) where an entity rejects a supplier's application to
qualify or ceases to recognize a supplier as qualified,
the entity shall, upon request of the supplier, promptly
provide pertinent information concerning the entity's
reasons for doing so.
3. Each Party shall:
(a) ensure that each of its entities uses a single
qualification procedure, except that an entity may use
additional qualification procedures where the entity
determines the need for a different procedure and is
prepared, upon request of any other Party, to demonstrate
such need; and
(b) make efforts to minimize differences in the qualification
procedures of its entities.
4. Nothing in paragraphs 2 and 3 shall prevent an entity from
excluding any supplier on grounds such as bankruptcy or false
declarations.
Article 1010: Invitation to Participate
1. An entity shall, in accordance with paragraphs 2, 3 and 5,
publish an invitation to participate for all procurements, except
as otherwise provided for in Article 1016 (Limited Tendering), in
the appropriate publication listed in Annex 1010.1 (Publications).
2. The invitation to participate shall take the form of a notice
of proposed procurement, which notice shall contain the following
information:
(a) a description of the nature and quantity of the goods or
services to be procured, including any options for
further procurement and, if possible
(i) an estimate of the timing when such options may be
exercised, and
(ii) in the case of recurring contracts, an estimate of
the timing of the subsequent tender notices for the
goods or services to be procured;
(b) a statement as to whether the procedure is open or
selective and whether it will involve negotiation;
(c) any date for starting delivery, or completion of
delivery, of goods or services to be procured;
(d) the address to which an application to be invited to
tender or to qualify for the suppliers' lists must be
submitted, the final date for receiving such an
application and the language or languages in which it may
be submitted;
(e) the address to which tenders must be submitted, the final
date for receiving tenders and the language or languages
in which tenders may be submitted;
(f) the address of the entity that will award the contract
and that will provide any information necessary for
obtaining specifications and other documents;
(g) a statement of any economic and technical requirements to
be met and of any financial guarantees, information and
documents required from suppliers;
(h) the amount and terms of payment of any sum payable for
the tender documentation; and
(i) a statement as to whether the entity is inviting offers
for purchase, lease or rental with or without an option
to buy, or more than one of these methods.
3. Notwithstanding paragraph 2, any entity listed in Annex 1002.2
(State and Provincial Government Entities) or Annex 1002.3
(Government Enterprises) may use, as an invitation to participate,
a notice of planned procurement, which shall contain as much of the
information referred to in paragraph 2 as is available to the
entity but which shall include, at a minimum, the following
information:
(a) a description of the subject matter of the procurement;
(b) the time limits set for the receipt of tenders or an
application to be invited to tender;
(c) the address at which requests for documents relating to
the procurement should be made;
(d) a statement that interested suppliers should express
their interest in the procurement to the entity; and
(e) the identification of a contact point within the entity
from which further information may be obtained.
4. Any entity that uses a notice of planned procurement as an
invitation to participate shall subsequently invite suppliers that
have expressed an interest in the procurement to confirm their
interest on the basis of information provided by the entity, which
information shall include at least the information referred to in
paragraph 2.
5. Notwithstanding paragraph 2, any entity listed in Annex 1002.2
(State and Provincial Government Entities) or Annex 1002.3
(Government Enterprises) may use, as an invitation to participate,
a notice regarding a qualification system. Any entity that uses
such a notice shall, subject to the considerations referred to
Article 1015 (8) (Submission, Receipt and Opening of Tenders and
Awarding of Contracts), provide in a timely manner information that
allows all suppliers that have expressed an interest in
participating in the procurement to have a meaningful opportunity
to assess their interest. The information shall normally include
the information contained in the notices referred to in paragraph
2. Information provided to one interested supplier shall be
provided in a non-discriminatory manner to all other interested
suppliers.
6. In the case of selective tendering procedures, any entity that
maintains a permanent list of qualified suppliers shall publish
annually in one of the publications listed in Annex 1010.1
(Publications) a notice containing the following information:
(a) an enumeration of any lists maintained, including their
headings, in relation to the goods or services or
categories of goods or services to be procured through
the lists;
(b) the conditions to be fulfilled by suppliers in view of
their inscription on the lists referred to in
subparagraph (a) and the methods according to which each
of those conditions will be verified by the entity
concerned; and
(c) the period of validity of the lists and the formalities
for their renewal.
7. If, after publication of an invitation to participate, but
before the time set for the opening or receipt of tenders as
specified in the notices or the tender documentation, an entity
finds that it has become necessary to amend or reissue the notice
or tender documentation, the entity shall ensure that the amended
or reissued notice or tender documentation is given the same
circulation as the original. Any significant information given by
an entity to one supplier with respect to a particular procurement
shall be given simultaneously to all other suppliers concerned and
sufficiently in advance so as to provide all suppliers concerned
adequate time to consider such information and to respond to it.
8. An entity shall indicate, in the notices referred to in this
Article or in the publication in which the notices appear, that the
procurement is covered by this Chapter.
Article 1011: Selective Tendering Procedures
1. To ensure optimum effective competition between the suppliers
of all Parties under selective tendering procedures, an entity of
a Party shall, for each procurement, invite tenders from the
maximum number of domestic suppliers and suppliers of the other
Parties, consistent with the efficient operation of the procurement
system.
2. Subject to paragraph 3, any entity that maintains a permanent
list of qualified suppliers may select suppliers to be invited to
tender for a particular procurement from among those listed. In the
process of making any selection, the entity shall provide for
equitable opportunities for suppliers on the list.
3. Subject to Article 1009 (2)(f) (Qualification of Suppliers),
an entity shall allow any supplier that requests to participate in
a particular procurement to submit a tender and shall consider the
tender. The number of additional suppliers permitted to participate
shall be limited only by the efficient operation of the procurement
system.
4. If an entity does not invite or admit a supplier to tender,
the entity shall, upon request of the supplier, promptly provide
pertinent information concerning its reasons for not doing so.
Article 1012: Time Limits for Tendering and Delivery
1. An entity of a Party shall:
(a) in prescribing any time limit, provide adequate time to
allow suppliers of the other Parties to prepare and
submit tenders before the closing of the tendering
procedures;
(b) in determining any time limit, consistent with its own
reasonable needs, take into account such factors as the
complexity of the procurement, the extent of
subcontracting anticipated, and the time normally
required for transmitting tenders by mail from foreign as
well as domestic points; and
(c) take due account of publication delays when setting the
final date for receipt of tenders or applications to be
invited to tender.
2. Subject to paragraph 3, an entity shall provide that:
(a) in open procedures, the period for the receipt of tenders
is no less than 40 days from the date of publication of
the notice referred to in Article 1010 (Invitation to
Participate);
(b) in selective procedures not involving the use of a
permanent list of qualified suppliers, the period for
submitting an application to be invited to tender is no
less than 25 days from the date of publication of the
notice referred to in Article 1010 (Invitation to
Participate), and the period for receipt of tenders is no
less than 40 days from the date of issuance of the
invitation to tender; and
(c) in selective procedures involving the use of a permanent
list of qualified suppliers, the period for receipt of
tenders is no less than 40 days from the date of the
initial issuance of invitations to tender. If the date of
initial issuance of invitations to tender does not
coincide with the date of publication of the notice
referred to in Article 1010 (Invitation to Participate),
there shall not be less than 40 days between those two
dates.
3. An entity may reduce the periods referred to in paragraph 2 in
accordance with the following:
(a) where a notice referred to Article 1010 (3) or (5)
(Invitation to Participate) has been published for a
period of no less than 40 days and no more than 12
months, the 40 day limit for receipt of tenders may be
reduced to no less than 24 days;
(b) in the case of the second or subsequent publications
dealing with recurring contracts within the meaning of
Article 1010 (2) (Invitation to Participate), the 40 day
limit for receipt of tenders may be reduced to no less
than 24 days;
(c) where a state of urgency duly substantiated by the entity
renders impracticable the periods in question, the
periods may be reduced to no less than 10 days from the
date of publication of the notice referred to in Article
1010 (Invitation to Participate); or
(d) where an entity listed in Annex 1002.2 (State and
Provincial Government Entities) or Annex 1002.3
(Government Enterprises) is using as an invitation to
participate a notice referred to in of Article 1010 (5)
(Invitation to Participate), the periods may be fixed by
mutual agreement between the entity and all selected
suppliers; but in the absence of agreement, the entity
may fix periods which shall be sufficiently long to
enable responsive bidding and shall not be less than 10
days.
4. An entity shall, in establishing any delivery date for goods
or services and consistent with its own reasonable needs, take into
account such factors as the complexity of the procurement, the
extent of subcontracting anticipated and the time realistically
required for production, destocking and transport of goods from the
points of supply.
Article 1013: Tender Documentation
1. Where an entity provides tender documentation to suppliers,
the documentation shall contain all information necessary to permit
suppliers to submit responsive tenders, including information
required to be published in the notice of procurement, except for
Article 1010 (2)(h) (Invitation to Participate). It must also
include the following information:
(a) the address of the entity to which tenders should be
sent;
(b) the address where requests for supplementary information
should be sent;
(c) the language or languages in which tenders and tendering
documents may be submitted;
(d) the closing date and time for receipt of tenders and the
length of time during which any tender should be open for
acceptance;
(e) the persons authorized to be present at the opening of
tenders and the date, time and place of the opening;
(f) a statement of any economic and technical requirement to
be met and of any financial guarantee, information and
documents required from suppliers;
(g) a complete description of the goods or services required
and any requirements to be fulfilled, including technical
specifications, conformity certification and necessary
plans, drawings and instructional materials;
(h) the criteria for awarding the contract, including any
factors other than price that are to be considered in the
evaluation of tenders and the cost elements to be
included in evaluating tender prices, such as transport,
insurance and inspection costs, and in the case of goods
or services of any other Party, customs duties and other
import charges, taxes and currency of payment;
(i) the terms of payment; and
(j) any other terms or conditions.
2. An entity shall:
(a) forward tender documentation at the request of any
supplier that is participating in open procedures or has
requested to participate in selective procedures, and
reply promptly to any reasonable request for explanations
relating thereto; and
(b) reply promptly to any reasonable request for relevant
information made by a supplier participating in the
tendering procedure, on condition that such information
does not give that supplier an advantage over its
competitors in the procedure for the award of the
contract.
Article 1014: Negotiation Disciplines
1. An entity may conduct negotiations:
(a) in the context of procurements in which the entity has,
in the notice referred to in Article 1010 (Invitation to
Participate), indicated its intent to negotiate; or
(b) when it appears from the evaluation of the tenders that
no one tender is obviously the most advantageous in terms
of the specific evaluation criteria set forth in the
notices or tender documentation.
2. Negotiations shall be used primarily to identify the strengths
and weaknesses in the tenders.
3. An entity shall treat all tenders in confidence. In
particular, an entity may not provide to any person information
intended to assist any supplier to bring its tender up to the level
of any other tender.
4. An entity may not, in the course of negotiations, discriminate
between different suppliers. In particular, an entity shall:
(a) carry out any elimination of suppliers in accordance with
the criteria set forth in the notices and tender
documentation;
(b) provide in writing all modifications to the criteria or
to the technical requirements to all suppliers remaining
in the negotiations;
(c) permit all remaining suppliers to submit new or amended
tenders on the basis of the revised criteria or
requirements; and
(d) when negotiations are concluded, permit all remaining
suppliers to submit final tenders in accordance with a
common deadline.
Article 1015: Submission, Receipt and Opening of Tenders and
Awarding of Contracts
1. An entity shall use procedures for the submission, receipt and
opening of tenders and the awarding of contracts that are
consistent with the following:
(a) tenders shall normally be submitted in writing directly
or by mail;
(b) if tenders by telex, telegram, telecopy or other means of
electronic transmission are permitted, the tender made
thereby must include all the information necessary for
the evaluation of the tender, in particular the
definitive price proposed by the supplier and a statement
that the supplier agrees to all the terms, conditions and
provisions of the invitation to tender;
(c) a tender made by telex, telegram, telecopy or other means
of electronic transmission must be confirmed promptly by
letter or by the dispatch of a signed copy of the telex,
telegram, telecopy or electronic message;
(d) the content of the telex, telegram, telecopy or
electronic message shall prevail where there is a
difference or conflict between that content and the
content of any documentation received after the time
limit for submission of tenders;
(e) tenders presented by telephone shall not be permitted;
(f) requests to participate in selective tendering procedures
may be submitted by telex, telegram or telecopy and if
permitted, may be submitted by other means of electronic
transmission; and
(g) the opportunities that may be given to suppliers to
correct unintentional errors of form between the opening
of tenders and the awarding of the contract shall not be
permitted to give rise to any discriminatory practice.
In this paragraph, "means of electronic transmission" consists of
means capable of producing for the recipient at the destination of
the transmission a printed copy of the tender.
2. An entity may not penalize a supplier whose tender is received
in the office designated in the tender documentation after the time
specified for receiving tenders if the delay is due solely to
mishandling on the part of the entity. An entity may also consider,
in exceptional circumstances, tenders received after the time
specified for receiving tenders if the entity's procedures so
provide.
3. All tenders solicited by an entity under open or selective
procedures shall be received and opened under procedures and
conditions guaranteeing the regularity of the openings. The entity
shall retain the information on the opening of tenders and the
information shall remain at the disposal of the competent
authorities of the respective Party so that it may be used if
required under the procedures of Article 1017 (Bid Challenge),
Article 1019 (Provision of Information) or Chapter Twenty
(Institutional Arrangements and Dispute Settlement Procedures).
4. An entity shall award contracts in accordance with the
following:
(a) to be considered for award, a tender must, at the time of
opening, conform to the essential requirements of the
notices or tender documentation and have been submitted
by a supplier that complies with the conditions for
participation;
(b) if the entity has received a tender that is abnormally
lower in price than other tenders submitted, the entity
may enquire of the supplier to ensure that it can comply
with the conditions of participation and is or will be
capable of fulfilling the terms of the contract;
(c) unless the entity decides in the public interest not to
award the contract, the entity shall make the award to
the supplier that has been determined to be fully capable
of undertaking the contract and whose tender is either
the lowest tender or the tender that in terms of the
specific evaluation criteria set forth in the notices or
tender documentation is determined to be the most
advantageous;
(d) awards shall be made in accordance with the criteria and
essential requirements specified in the tender
documentation; and
(e) option clauses shall not be used in a manner that
circumvents the provisions of this Chapter.
5. No entity of a Party shall make it a condition of the awarding
of a contract that the supplier has previously been awarded one or
more contracts by an entity of that Party, or that the supplier has
prior work experience within the territory of that Party.
6. An entity shall:
(a) upon request, promptly inform suppliers participating in
tendering procedures of decisions on contract awards and,
if so requested, inform them in writing; and
(b) upon request of a supplier whose tender was not selected
for award, provide pertinent information to that supplier
concerning the reasons for not selecting its tender and
the characteristics and relevant advantages of the tender
selected, as well as the name of the winning supplier.
7. An entity shall publish a notice in the appropriate
publication listed in Annex 1010.1 (Publications) no later than 72
days after the award of a contract, which notice shall contain the
following information:
(a) a description of the nature and quantity of goods or
services included in the contract;
(b) the name and address of the entity awarding the contract;
(c) the date of the award;
(d) the name and address of each winning supplier;
(e) the value of the contract, or the highest and lowest
tenders considered in the process of awarding the
contract; and
(f) the tendering procedure used.
8. Notwithstanding any other provision of this Article, an entity
may withhold certain information on the award of a contract, where
disclosure of such information would impede law enforcement or
otherwise be contrary to the public interest or would prejudice the
legitimate commercial interest of a particular person, or might
prejudice fair competition between suppliers.
Article 1016: Limited Tendering
1. An entity of a Party may, in the circumstances and subject to
the conditions specified in paragraph 2, deviate from the
provisions of Articles 1008 (Tendering Procedures) through 1015
(Submission, Receipt and Opening of Tenders and Awarding of
Contracts), provided that such limited tendering is not used with
a view to avoiding maximum possible competition or in a manner that
would constitute a means of discrimination between suppliers of the
other Parties or protection of domestic suppliers.
2. An entity may use limited tendering in the following
circumstances and subject to the following conditions, as
applicable:
(a) in the absence of tenders in response to an open or
selective tender, or when the tenders submitted either
have resulted from collusion or do not conform to the
essential requirements of the tender documentation, or
when the tenders submitted come from suppliers who do not
comply with the conditions for participation provided for
in accordance with this Chapter, on condition that the
requirements of the initial procurement are not
substantially modified in the contract as awarded;
(b) when, for works of art or for reasons connected with the
protection of patents, copyrights or other exclusive
rights, proprietary information, confidential consulting
services or, when there is an absence of competition for
technical reasons, the goods or services can be supplied
only by a particular supplier and no reasonable
alternative or substitute exists;
(c) in so far as is strictly necessary when, for reasons of
extreme urgency brought about by events unforeseeable by
the entity, the goods or services could not be obtained
in time by means of open or selective tendering
procedures;
(d) for additional deliveries by the original supplier that
are intended either as replacement parts or continuing
services for existing supplies, services or
installations, or as the extension of existing supplies,
services or installations, when a change of supplier
would compel the entity to procure equipment or services
not meeting requirements of interchangeability with
already existing equipment or services, including
software to the extent that the initial procurement of
the software was covered by this Chapter;
(e) when an entity procures a prototype or a first good or
service that is developed at its request in the course
of, and for, a particular contract for research,
experiment, study or original development. When such
contracts have been fulfilled, subsequent procurements of
goods or services shall be subject to Articles 1008
(Tendering Procedures) through 1015 (Submission, Receipt
and Opening of Tenders and Awarding of Contracts).
Original development of a first good may include limited
production in order to incorporate the results of field
testing and to demonstrate that the good is suitable for
production in quantity to acceptable quality standards.
It does not extend to quantity production to establish
commercial viability or to recover research and
development costs;
(f) for goods purchased on a commodity market;
(g) for purchases made under exceptionally advantageous
conditions that only arise in the very short term. This
provision is intended to cover unusual disposals by firms
which are not normally suppliers; or disposal of assets
of businesses in liquidation or receivership. It is not
intended to cover routine purchases from regular
suppliers; and
(h) for a contract awarded to the winner of an architectural
design contest, on condition that the contest
(i) has been organized in a manner that is consistent
with the principles of this Chapter, notably as
regards the publication, in the sense of Article
1010 (Invitation to Participate), of an invitation
to suitably qualified suppliers to participate in
the contest,
(ii) has been organized with a view to awarding the
design contract to the winner, and
(iii) is to be judged by an independent jury.
3. An entity shall prepare a report in writing on each contract
awarded by it under the provisions of paragraph 2. Each report
shall contain the name of the procuring entity, indicate the value
and kind of goods or services procured, the name of the country of
origin, and a statement indicating the circumstances and conditions
described in paragraph 2 that justified the use of limited
tendering. Each report shall remain with the entity concerned at
the disposal of the competent authorities of the respective Party,
so that it may be used if required under the procedures of Article
1017 (Bid Challenge), Article 1019 (Provision of Information) or
Chapter 20 (Institutional Arrangements and Dispute Settlement Procedures).
Article 1017: Bid Challenge
1. In order to promote fair, open and impartial procurement
procedures, each Party shall adopt and maintain bid challenge
procedures for procurements covered by this Chapter in accordance
with the following:
(a) each Party shall allow suppliers of any good or service
of another Party to submit bid challenges concerning any
aspect of the procurement process, which for purposes of
this Article begins after an entity has decided on its
procurement requirement, leading up to and including the
contract award;
(b) a Party may encourage a supplier to seek a resolution of
any complaint with the entity concerned prior to
initiating a bid challenge;
(c) each Party shall ensure that its entities accord fair and
timely consideration to any complaint regarding
procurement covered by this Chapter;
(d) whether or not a supplier has attempted to resolve its
complaint with the entity, or upon an unsuccessful
attempt at such a resolution, no Party shall prevent the
supplier from initiating a bid challenge or seeking any
other relief available to such supplier;
(e) a Party may require a supplier to notify the entity upon
initiation of a bid challenge;
(f) a Party may limit the period within which a supplier may
initiate a bid challenge, but in no case shall the period
be less than 10 working days from the time when the basis
of the complaint became known, or reasonably should have
become known, to the supplier;
(g) each Party shall establish or designate a reviewing
authority with no substantial interest in the outcome of
procurements to receive bid challenges and make findings
and recommendations concerning them;
(h) upon receipt of a bid challenge, the reviewing authority
shall expeditiously investigate the challenge, and may be
required to limit its considerations to the challenge
itself;
(i) in investigating the challenge, the reviewing authority
may delay the awarding of the proposed contract pending
resolution of the challenge, except in cases of urgency
or where such a delay would be contrary to the public
interest;
(j) the reviewing authority shall issue a recommendation to
resolve the challenge, which may include directing the
entity to reevaluate offers, terminate or re-compete the
contract in question;
(k) entities normally shall follow the recommendations of the
reviewing authority;
(l) each Party should authorize its reviewing authority,
following the conclusion of a bid challenge, to make
additional recommendations in writing to an entity
respecting any facet of the entity's procurement process
that is identified as problematic during the
investigation of the challenge, including recommendations
for changes in the procurement procedures of the entity
to bring them into conformity with the obligations of
this Chapter;
(m) the reviewing authority shall provide its findings and
recommendations respecting bid challenges in writing and
in a timely manner, and shall make them available to the
Parties and all interested persons;
(n) each Party shall specify in writing and shall make
generally available all its bid challenge procedures; and
(o) each Party shall ensure that each of its entities
maintains complete documentation concerning each of its
procurements, including a written record of all
communications substantially affecting each procurement,
for at least three years from the date the contract was
awarded, to allow verification that the procurement
process was carried out in accordance with the
obligations of this Chapter.
2. A Party may require that a bid challenge be initiated only
after the notice of procurement has been published or, where a
notice is not published, after tender documentation has been made
available. If a Party imposes such a requirement, the 10 working
day period described in paragraph 1(f) shall begin not earlier than
the date that the notice is published or the tender documentation
is made available.
Article 1018: Exceptions
1. Notwithstanding Article 2102 (National Security), for purposes
of this Chapter nothing shall be construed to prevent a Party from
taking any action or not disclosing any information which it
considers necessary for the protection of its essential security
interests relating to the procurement of arms, ammunition or war
materials, or to procurement indispensable for national security or
for national defense purposes.
2. Provided that such measures are not applied in a manner that
would constitute a means of arbitrary or unjustifiable
discrimination between Parties where the same conditions prevail or
a disguised restriction on trade between the Parties, nothing in
this Chapter shall be construed to prevent any Party from adopting
or maintaining measures:
(a) necessary to protect public morals, order or safety;
(b) necessary to protect human, animal or plant life or
health;
(c) necessary to protect intellectual property; or
(d) relating to goods or services of handicapped persons, of
philanthropic institutions or of prison labor.
Article 1019: Provision of Information
1. Each Party shall promptly publish any law, regulation,
precedential judicial decision, administrative ruling of general
application and any procedure, including standard contract clauses,
regarding government procurement covered by this Chapter in the
appropriate publications listed in Annex 1010.1 (Publications).
2. Each Party shall:
(a) be prepared, upon request, to explain to any other Party
its government procurement procedures; and
(b) ensure that its entities, upon request from a supplier,
promptly explain their procurement practices and
procedures.
3. A Party may seek such additional information on the award of
the contract as may be necessary to determine whether the
procurement was made fairly and impartially, in particular with
respect to unsuccessful tenders and further to Article 1015(6)
(Submission, Receipt and Opening of Tenders and Awarding
Contracts). To this end, the Party of the procuring entity shall
provide information on both the characteristics and relative
advantages of the winning tender and the contract price. In cases
where release of this information would prejudice competition in
future tenders, the information shall not be released except after
consultation with and agreement of the Party which gave the
information to the requesting Party.
4. Each Party shall provide, upon request, to any other Party,
information available to that Party and its entities concerning
covered procurement of its entities and the individual contracts
awarded by its entities.
5. No Party shall disclose confidential information the
disclosure of which would prejudice the legitimate commercial
interests of a particular person or might prejudice fair
competition between suppliers, without the formal authorization of
the person that provided the information to that Party.
6. Nothing in this Chapter shall be construed as requiring any
Party to disclose confidential information the disclosure of which
would impede law enforcement or otherwise be contrary to the public
interest.
7. With a view to ensuring effective monitoring of procurement
covered by this Chapter, each Party shall collect statistics and
provide to the other Parties each year an annual report in
accordance with the following reporting requirements, unless the
Parties unanimously agree to modify such requirements:
(a) statistics on the estimated value of all contracts
awarded, both above and below the applicable threshold
values, broken down by entities;
(b) statistics on the number and total value of contracts
covered by this Chapter above the applicable threshold
values, broken down by entities, categories of goods or
services according to uniform classification systems to
be determined by the Parties, and country of origin of
the contract;
(c) statistics, broken down by entities, and by categories of
goods or services, on the number and total value of
contracts awarded under each use of the procedures
described in Article 1016 (Limited Tendering), and
country of origin of the contract; and
(d) statistics, broken down by entities, on the number and
total value of contracts awarded under derogations to the
Chapter listed in the appropriate annexes.
8. With respect to the reports described in paragraph 7 that
pertain to entities listed in Annex 1002.2 (State and Provincial
Government Entities), each Party may organize such reports by state
or province.
9. Each Party shall give favorable consideration, where
appropriate, to a request from any other Party for the exchange of
additional information on a reciprocal basis.
10. The Parties shall undertake and complete by the date of entry
into force of this Agreement further technical work to make
available the complete goods and services classification list to be
used by their entities in procuring goods and services under this
Chapter and develop concordances between each of these systems,
and, if necessary, the agreed uniform system.
Article 1020: Technical Cooperation
1. The Parties shall cooperate, on mutually agreed terms, to
increase understanding of their respective government procurement
systems, with a view to maximizing access to government procurement
opportunities for the suppliers of all Parties.
2. Each Party shall provide to the other Parties and to the
suppliers of such Parties, on a cost recovery basis, information
concerning training and orientation programs regarding its
government procurement system, and access on a non-discriminatory
basis to such programs as it conducts.
3. The training and orientation programs referred to in paragraph
2 include:
(a) training of personnel directly involved in government
procurement procedures;
(b) training of suppliers interested in pursuing government
procurement opportunities;
(c) explanation and description of specific elements of each
Party's government procurement system, such as the bid
challenge mechanism; and
(d) information about government procurement market
opportunities.
4. Each Party shall establish at least one contact point to
provide the information regarding the training and orientation
programs pertaining to its government procurement system.
Article 1021: Joint Programs for Small Business
1. The Parties shall establish, within 12 months after the date
of entry into force of this Agreement, the Committee on Small
Business comprising representatives of the Parties. The Committee
shall meet as mutually agreed, but no less than once a year, and
shall report annually to the Commission on the efforts of the
Parties to promote government procurement opportunities for their
small businesses.
2. The Committee shall work to facilitate the following
activities of the Parties:
(a) identification of available opportunities for the
training of small business personnel in their government
procurement procedures;
(b) identification of small businesses interested in becoming
trading partners of small businesses in the territory of
any other Party;
(c) development of data bases of small businesses in the
territory of each Party for use by entities of any other
Party wishing to procure from small businesses;
(d) consultations regarding the factors that each Party uses
in establishing its criteria for eligibility for small
business programs, if any; and
(e) actions to address any related matter.
Article 1022: Rectifications or Modifications
1. A Party may make modifications to its coverage under this
Chapter only in exceptional circumstances.
2. Where a Party makes modifications to its coverage under this
Chapter, the Party shall:
(a) notify the other Parties and its Section of the
Secretariat of the modification;
(b) reflect the change in its schedule of the appropriate
Annex; and
(c) propose to the other Parties appropriate compensatory
adjustments to its coverage in order to maintain a
comparable level of coverage as existed prior to the
modification.
The other Parties shall consider whether any proposed adjustment
made pursuant to subparagraph (c) is adequate to maintain a
comparable level of the mutually agreed coverage under this
Chapter. Where any Party does not agree that the proposed
adjustment is sufficient, it may have recourse to dispute
settlement procedures under Chapter Twenty (Institutional
Arrangements and Dispute Settlement Procedures).
3. Notwithstanding paragraphs 1 and 2, a Party may make
rectifications of a purely formal nature and minor amendments to
its Annexes 1002.1 through 1002.7, provided that it notifies such
rectifications to the other Parties and its Section of the
Secretariat, and any other Party does not object to such proposed
rectification within 30 days. In such cases, subparagraph 2(c)
shall not apply. If a Party does object that the proposed
rectification would result in a substantive change in the balance
of coverage under this Chapter, it may have recourse to dispute
settlement procedures under Chapter Twenty (Institutional
Arrangements and Dispute Settlement Procedures).
4. Notwithstanding any other provision of this Chapter, a Party
may undertake legitimate reorganizations of its government
procurement entities covered by this Chapter, including programs
through which the procurement of such entities is decentralized or
the corresponding government functions cease to be performed by any
government entity, whether or not subject to this Chapter. In such
cases, subparagraph 2(c) shall not apply. No Party shall undertake
such reorganizations or programs to avoid the obligations of this
Chapter. If a Party objects to the withdrawal on the grounds that
the functions continue to be performed by a government entity, that
Party may have recourse to dispute settlement procedures under
Chapter Twenty (Institutional Arrangements and Dispute Settlement
Procedures).
Article 1023: Divestiture of Entities
1. Nothing in this Chapter shall be construed to prevent a Party
from divesting an entity subject to the obligations of this
Chapter.
2. If, upon the public offering of shares of an entity listed in
Annex 1002.3 (Government Enterprises), or through other methods,
such entity is no longer subject to federal government control, the
respective Party may delete the entity from Annex 1002.3
(Government Enterprises), and withdraw the entity from the
obligations of the Chapter, upon notification to the other Parties.
3. If a Party objects to the withdrawal on the grounds that the
entity remains subject to federal government control, that Party
may have recourse to dispute settlement procedures under Chapter
Twenty (Institutional Arrangements and Dispute Settlement Procedures).
Article 1024: Further Negotiations
1. The Parties shall commence further negotiations no later than
December 31, 1998, with a view towards the substantial
liberalization of their respective procurement markets. The Parties
recognize that such liberalization would ensure more competitive
opportunities for all suppliers of the Parties in their respective
procurement markets.
2. The Parties will review all features of government procurement
practices for the purposes of:
(a) assessing the workings of the procurement system;
(b) seeking to expand the coverage of this Chapter;
(c) including within the obligations of this Chapter
(i) government enterprises, and
(ii) legislated and administrative exceptions; and
(d) reviewing thresholds.
3. Prior to the review specified in paragraph 2, the Parties will
endeavor to consult with their state and provincial governments
with a view to obtaining commitments, on a voluntary and reciprocal
basis, to include within the obligations of this Chapter
procurement by state and provincial government entities and
enterprises.
4. If the negotiations pursuant to Article 96B of the GATT
Agreement on Government Procurement (the Code) are completed prior
to the new review specified in paragraph 2, the Parties shall:
(a) immediately begin consultations with their state and
provincial governments with a view to obtaining
commitments, on a voluntary and reciprocal basis, to
include within the obligations of this Chapter
procurement by state and provincial government entities
and enterprises; and
(b) increase the obligations and coverage of this Chapter to
a level at least commensurate with that of the Code.
5. The Parties shall undertake further negotiations no later than
December 31, 1998, on the subject of electronic transmission of
tender information with a view to exploring the feasibility of
amending this Chapter to permit electronic transmission as an
additional or alternate means of publication.
Article 1025: Definitions
For purposes of this Chapter:
construction services contract means a contract which has as its
objective the realization by whatever means of civil or building
works, as specified in the Appendix of Annex 1002.5 (Construction
Services);
entity means an entity listed in Annexes 1002.1 (Federal Government
Entities), Annex 1002.2 (State and Provincial Government Entities)
or Annex 1002.3 (Government Enterprises) to this Chapter;
offsets means conditions imposed or considered by an entity prior
to or in the course of its procurement process that encourage local
development or improve its Party's balance of payments accounts,
and can involve requirements of local content, licensing of
technology, investment, counter-trade or similar requirements.
services includes construction services contracts, unless otherwise
specified;
supplier means a person that has provided or could provide goods or
services in response to an entity's call for tender; and
tendering procedures means:
(a) open tendering procedures, being those procedures under
which all interested suppliers may submit a tender;
(b) selective tendering procedures, being those procedures
under which, consistent with Article 1011 (3) (Selective
Tendering Procedures), those suppliers invited to do so
by an entity may submit a tender; and
(c) limited tendering procedures, being those procedures
where an entity contacts suppliers individually, only in
the circumstances and under the conditions specified in
Article 1016 (Limited Tendering).
ANNEX 1002.1
Federal Government Entities
Schedule of Canada
1. Department of Agriculture
2. Department of Communications
3. Department of Consumer and Corporate Affairs
4. Department of Employment and Immigration
5. Immigration and Refugee Board
6. Canada Employment and Immigration Commission
7. Department of Energy, Mines and Resources
8. Atomic Energy Control Board
9. National Energy Board
10. Department of the Environment
11. Department of External Affairs
12. Canadian International Development Agency (on its own account)
13. Department of Finance
14. Office of the Superintendent of Financial Institutions
15. Canadian International Trade Tribunal
16. Municipal Development and Loan Board
17. Department of Fisheries and Oceans
18. Department of Forestry
19. Department of Indian Affairs and Northern Development
20. Department of Industry, Science and Technology
21. Science Council of Canada
22. National Research Council of Canada
23. Natural Sciences and Engineering Research Council of Canada
24. Department of Justice
25. Canadian Human Rights Commission
26. Statute Revision Commission
27. Supreme Court of Canada
28. Department of Labour
29. Canada Labour Relations Board
30. Department of National Health and Welfare
31. Medical Research Council
32. Department of National Revenue
33. Department of Public Works
34. Department of Secretary of State of Canada
35. Social Sciences and Humanities Research Council
36. Office of the Co-ordinator, Status of Women
37. Public Service Commission
38. Department of the Solicitor General
39. Correctional Service of Canada
40. National Parole Board
41. Department of Supply and Services (on its own account)
42. Canadian General Standards Board
43. Department of Transport (Pursuant to Article 1018 the national
security considerations applicable to the Department of
National Defence are equally applicable to the Canadian Coast
Guard.)
44. Secretariat and the Office of the Controller General
45. Department of Veterans Affairs
46. Veterans Land Administration
47. Department of Western Economic Diversification
48. Atlantic Canada Opportunities Agency
49. Auditor General of Canada
50. Federal Office of Regional Development (Quebec)
51. Canadian Centre for Management Development
52. Canadian Radio-television and Telecommunications Commission
53. Canadian Sentencing Commission
54. Civil Aviation Tribunal
55. Commission of Inquiry into the Air Ontario Crash at Dryden,
Ontario
56. Commission of Inquiry into the Use of Drugs and Banned
Practices Intended to Increase Athletic Performance
57. Commissioner for Federal Judicial Affairs
58. Competition Tribunal Registry
59. Copyright Board
60. Emergency Preparedness Canada
61. Federal Court of Canada
62. Grain Transportation Agency
63. Hazardous Materials Information Review Commission
64. Information and Privacy Commissioners
65. Investment Canada
66. Multiculturalism and Citizenship
67. The National Archives of Canada
68. National Farm Products Marketing Council
69. The National Library
70. National Transportation Agency
71. Northern Pipeline Agency
72. Patented Medicine Prices Review Board
73. Petroleum Monitoring Agency
74. Privy Council Office
75. Canadian Intergovernmental Conference Secretariat
76. Commissioner of Official Languages
77. Economic Council of Canada
78. Public Service Staff Relations Office
79. Office of the Secretary to the Governor General
80. Office of the Chief Electoral Officer
81. Federal Provincial Relations Office
82. Procurement Review Board
83. Royal Commission on Electoral Reform and Party Financing
84. Royal Commission on National Passenger Transportation
85. Royal Commission on New Reproductive Technologies
86. Royal Commission on the Future of the Toronto Waterfront
87. Statistics Canada
88. Tax Court of Canada, Registry of the
89. Agricultural Stabilization Board
90. Canadian Aviation Safety Board
91. Canadian Centre for Occupational Health and Safety
92. Canadian Transportation Accident Investigation and Safety
Board
93. Director of Soldier Settlement
94. Director, The Veterans' Land Act
95. Fisheries Prices Support Board
96. National Battlefields Commission
97. Royal Canadian Mounted Police
98. Royal Canadian Mounted Police External Review Committee
99. Royal Canadian Mounted Police Public Complaints Commission
100. Department of National Defence
The following goods purchased by the Department of National
Defence and the Royal Canadian Mounted Police are included in
the coverage of this Chapter, subject to the provisions of
Article 1018(1) (Exceptions).
(Numbers refer to the Federal Supply Classification code)
22. Railway equipment
23. Motor vehicles, trailers and cycles (except buses in
2310, military trucks and trailers in 2320 and 2330 and
tracked combat, assault and tactical vehicles in 2350)
24. Tractors
25. Vehicular equipment components
26. Tires and tubes
29. Engine accessories
30. Mechanical power transmission equipment
32. Woodworking machinery and equipment
34. Metal working equipment
35. Service and trade equipment
36. Special industry machinery
37. Agricultural machinery and equipment
38. Construction, mining, excavating and highway maintenance
equipment
39. Materials handling equipment
40. Rope, cable, chain and fittings
41. Refrigeration and air conditioning equipment
42. Fire fighting, rescue and safety equipment (except 4220
Marine Life-saving and diving equipment, 4230
Decontaminating and impregnating equipment)
43. Pumps and compressors
44. Furnace, steam plant, drying equipment and nuclear
reactors
45. Plumbing, heating and sanitation equipment
46. Water purification and sewage treatment equipment
47. Pipe, tubing, hose and fittings
48. Valves
49. Maintenance and repair shop equipment
52. Measuring tools
53. Hardware and abrasives
54. Prefabricated structures and scaffolding
55. Lumber, millwork, plywood and veneer
56. Construction and building materials
61. Electric wire and power and distribution equipment
62. Lighting fixtures and lamps
63. Alarm and signal systems
65. Medical, dental and veterinary equipment and supplies
66. Instruments and laboratory equipment (except 6615:
Automatic pilot mechanisms and airborne Gyro components
6665: Hazard-detecting instruments and apparatus)
67. Photographic equipment
68. Chemicals and chemical products
69. Training aids and devices
70. General purpose automatic data processing equipment,
software, supplies and support equipment (except 7010
ADPE configurations)
71. Furniture
72. Household and commercial furnishings and appliances
73. Food preparation and serving equipment
74. Office machines, text processing system and visible
record equipment
75. Office supplies and devices
76. Books, maps and other publications (except 7650 drawings
and specifications)
77. Musical instruments, phonographs and home-type radios
78. Recreational and athletic equipment
79. Cleaning equipment and supplies
80. Brushes, paints, sealers and adhesives
81. Containers, packaging and packing supplies
85. Toiletries
87. Agricultural supplies
88. Live animals
91. Fuels, lubricants, oils and waxes
93. Non-metallic fabricated materials
94. Non-metallic crude materials
96. Ores, minerals and their primary products
99. Miscellaneous
Notes:
1. Notwithstanding anything in this Annex, this Chapter does not
apply to procurements in respect of:
(a) the Departments of Transport Canada, Communications
Canada and Fisheries and Oceans respecting FSCs 70
(automatic data processing equipment, software supplies
and support equipment), 74 (office machines, text
processing systems and visible record equipment) and 36
(special industry machinery); and
(b) agricultural products made in furtherance of agricultural
support programs or human feeding programs.
2. The General Notes for Canada as set out in Annex 1002.7 apply
to this Annex.
=============================================================================
ANNEX 1002.1
Schedule of Mexico
1. Secretar¡a de Gobernaci¢n
- Centro Nacional de Estudios Municipales
- Comisi¢n Calificadora de Publicaciones y Revistas
Ilustradas
- Consejo Nacional de Poblaci¢n
- Archivo General de la Naci¢n
- Instituto Nacional de Estudios Hist¢ricos de la
Revoluci¢n Mexicana
- Patronato de Asistencia para la Reincorporaci¢n Social
- Centro Nacional de Prevenci¢n de Desastres
- Consejo Nacional de Radio y Televisi¢n
- Comisi¢n Mexicana de Ayuda a Refugiados
2. Secretar¡a de Relaciones Exteriores
- Secci¢n Mexicana de la Comisi¢n Intercional de L¡mites y
Aguas M‚xico-EEUU
- Secci¢n Mexicana de la Comisi¢n Internacional de L¡mites
y Aguas M‚xico-Guatemala
3. Secretar¡a de Hacienda y Cr‚dito P£blico
- Comisi¢n Nacional Bancaria
- Comisi¢n Nacional de Valores
- Comisi¢n Nacional de Seguros y Fianzas
- Instituto Nacional de Estadistica , Geograf¡a e
Inform tica
4. Secretar¡a de Agricultura y Recursos Hidraulicos
- Instituto Mexicano de Tecnolog¡a del Agua
- Instituto Nacional de Investigaciones Forestales y
Agropecuarias
- Apoyos a Servicios a la Comercializaci¢n Agropecuaria,
Aserca
5. Secretar¡a de Comunicaciones y Transportes (including the
Instituto Mexicano de Comunicaciones and the Instituto
Mexicano de Transporte)
- Comisi¢n Nacional Coordinadora de Puertos
6. Secretar¡a de Comercio y Fomento Industrial
7. Secretar¡a de Educaci¢n P£blica
- Instituto Nacional de Antropolog¡a e Historia
- Instituto Nacional de Bellas Artes y Literatura
- Radio Educaci¢n
- Centro de Ingenier¡a y Desarrollo Industrial
- Consejo Nacional para la Cultura y las Artes
- Comisi¢n Nacional del Deporte
8. Secretar¡a de Salud
- Administraci¢n del Patrimonio de la Beneficencia P£blica
- Centro Nacional de la Transfusi¢n Sanguinea
- Gerencia General de Farmacias
- Gerencia General de Biol¢gicos y Reactivos
- Consejo Interno del Centro de Obras y Equipamiento en
Salud
- Instituto de la Comunicaci¢n Humana Dr. Andr‚s Bustamante
Gurr¡a
- Instituto Nacional de Medicina de la Rehabilitaci¢n
- Instituto Nacional de Ortopedia
- Consejo Nacional para la Prevenci¢n y Control del
S¡ndrome de la Inmunodeficiencia Adquirida, Conasida
9. Secretar¡a del Trabajo y Previsi¢n Social
- Procuradur¡a Federal de la Defensa del Trabajo
- Unidad Coordinadora del Empleo, Capacitaci¢n y
Adiestramiento
10. Secretar¡a de la Reforma Agraria
- Instituto de Capacitaci¢n Agraria
11. Secretar¡a de Pesca
- Instituto Nacional de la Pesca
12. Procuradur¡a General de la Rep£blica
13. Secretar¡a de Energia Minas e Industria Paraestatal
- Comisi¢n Nacional de Seguridad Nuclear y Salvaguardias
- Centro de Promoci¢n y Evaluaci¢n de Proyectos
- Centro Nacional de Ahorro Energ‚tico
14. Secretar¡a de Desarrollo Social
15. Secretar¡a de Turismo
16. Secretar¡a de la Contralor¡a General de La Federaci¢n
17. Comisi¢n Nacional de Zonas Aridas
18. Comisi¢n Nacional de Libros de Texto Gratuito
19. Comisi¢n Nacional de Derechos Humanos
20. Consejo Nacional de Fomento Educativo
21. Secretar¡a de la Defensa Nacional
22. Secretar¡a de Marina
The following products purchased by the Secretar¡a de la
Defensa Nacional and the Secretar¡a de Marina are included in
the coverage of this Chapter, subject to the application of
paragraph 1 in Article 1018(1) (Exceptions).
(Numbers refer to the Federal Supply Classification Code, FSC)
22. Railway equipment
23. Motor vehicles, trailers and cycles (except buses in
2310, military trucks and trailers in 2320 and 2330 and
tracked combat, assault and tactical vehicles in 2350)
24. Tractors
25. Vehicular equipment components
26. Tires and tubes
29. Engine accessories
30. Mechanical power transmission equipment
32. Woodworking machinery and equipment
34. Metal working machinery
35. Service and trade equipment
36. Special industry machinery
37. Agricultural machinery and equipment
38. Construction, mining, excavating and highway maintenance
equipment
39. Materials handling equipment
40. Rope, cable, chain and fittings
41. Refrigeration and air conditioning equipment
42. Fire fighting, rescue and safety equipment
43. Pumps and compressors
44. Furnace, steam plant, drying equipment and nuclear
reactors
45. Plumbing, heating and sanitation equipment
46. Water purification and sewage treatment equipment
47. Pipe, tubing, hose and fittings
48. Valves
49. Maintenance and repair shop equipment
52. Measuring tools
53. Hardware and abrasives
54. Prefabricated structures and scaffolding
55. Lumber, millwork, plywood and veneer
56. Construction and building materials
61. Electric wire and power and distribution equipment
62. Lighting fixtures and lamps
63. Alarm and signal systems
65. Medical, Dental, and Veterinary Equipment and Supplies
66. Instruments and laboratory equipment
67. Photographic equipment
68. Chemicals and chemical products
69. Training aids and devices
70. General purpose ADPE, software, supplies and support
equipment
71. Furniture
72. Household and commercial furnishings and appliances
73. Food preparation and serving equipment
74. Office machines, text processing system and visible
record equipment
75. Office supplies and devices
76. Books, maps and other publications (except 7650: Drawings
and specifications)
77. Musical instruments, phonographs and home-type radios
78. Recreational and athletic equipment
79. Cleaning equipment and supplies
80. Brushes, paints, sealers and adhesives
81. Containers, packaging and packing supplies
85. Toiletries
87. Agricultural supplies
88. Live animals
93. Non-metallic fabricated materials
94. Non-metallic crude materials
96. Ores, minerals and their primary products (except 9620:
minerals, natural and synthetic)
99. Miscellaneous
Notes:
1. National security exceptions include procurements made in
support of safeguarding nuclear materials or technology.
2. The General Notes for Mexico as set out in Annex 1002.7 apply
to this Annex.
=============================================================================
ANNEX 1002.1
Schedule of the United States
1. Department of Agriculture (This Chapter does not apply to
procurement of agricultural products made in furtherance of
agricultural support programs or human feeding programs.)
Federal buy national requirements imposed as conditions of
funding by the Rural Electrification Administration will not
apply to products and services of Mexico and Canada.
2. Department of Commerce
3. Department of Education
4. Department of Health and Human Services
5. Department of Housing and Urban Development
6. Department of the Interior, including the Bureau of
Reclamation (For suppliers of goods and services of Canada,
the obligations of this Chapter will apply to procurements by
the Bureau of Reclamation of the Department of Interior only
at such time as the obligations of this Chapter take effect
for procurements by Canadian Provincial Hydro utilities.)
7. Department of Justice
8. Department of Labor
9. Department of State
10. United States Agency for International Development
11. Department of the Treasury
12. Department of Transportation (Pursuant to Article 1018, the
national security considerations applicable to the Department
of Defense are equally applicable to the Coast Guard, a
military unit of the United States.)
13. Department of Energy (This Chapter does not apply, pursuant to
Article 1018, to national security procurements made in
support of safeguarding nuclear materials or technology and
entered into under the authority of the Atomic Energy Act; and
to oil purchases related to the Strategic Petroleum Reserve.)
14. General Services Administration (except Federal Supply Groups
51 and 52 and Federal Supply Class 7340)
15. National Aeronautics and Space Administration
16. The Department of Veterans Affairs
17. Environmental Protection Agency
18. United States Information Agency
19. National Science Foundation
20. Panama Canal Commission
21. Executive Office of the President
22. Farm Credit Administration
23. National Credit Union Administration
24. Merit Systems Protection Board
25. ACTION
26. United States Arms Control and Disarmament Agency
27. The Office of Thrift Supervision
28. The Federal Housing Finance Board
29. National Labor Relations Board
30. National Mediation Board
31. Railroad Retirement Board
32. American Battle Monuments Commission
33. Federal Communications Commission
34. Federal Trade Commission
35. Inter-State Commerce Commission
36. Securities and Exchange Commission
37. Office of Personnel Management
38. United States International Trade Commission
39. Export-Import Bank of the United States
40. Federal Mediation and Conciliation Service
41. Selective Service System
42. Smithsonian Institution
43. Federal Deposit Insurance Corporation
44. Consumer Product Safety Commission
45. Equal Employment Opportunity Commission
46. Federal Maritime Commission
47. National Transportation Safety Board
48. Nuclear Regulatory Commission
49. Overseas Private Investment Corporation
50. Administrative Conference of the United States
51. Board for International Broadcasting
52. Commission on Civil Rights
53. Commodity Futures Trading Commission
54. The Peace Corps
55. National Archives and Records Administration
56. Department of Defense, including the Army Corps of Engineers
This Chapter will not apply to the following purchases of the
DOD:
(a) Federal Supply Classification (FSC) 83 - all elements of
this classification other than pins, needles, sewing
kits, flagstaffs, flagpoles, and flagstaff trucks;
(b) FSC 84 - all elements other than sub-class 8460 (luggage);
(c) FSC 89 - all elements other than sub-class 8975 (tobacco
products);
(d) FSC 2310 - (buses only);
(e) speciality metals, defined as steels melted in steel
manufacturing facilities located in the United States or
its possessions, where the maximum alloy content exceeds
one or more of the following limits, must be used in
products purchased by DOD: (1) manganese, 1.65 per cent;
silicon, 0.60 per cent; or copper, 0.06 per cent; or
which contains more than 0.25 per cent of any of the
following elements: aluminium, chromium, cobalt,
columbium, olybdenum, nickel, titanium, tungsten, or
vanadium; (2) metal alloys consisting of nickel, iron-
nickel and cobalt base alloys containing a total of other
alloying metals (except iron) in excess of 10 per cent;
(3) titanium and titanium alloys; or (4) zirconium base
alloys;
(f) FSC 19 and 20 - that part of these classifications
defined as naval vessels or major components of the hull
or superstructure thereof;
(g) FSC 51; and
(h) the following FSC categories are not generally covered
due to application of Article 1018(1) (Exceptions): 10,
12, 13, 14, 15, 16, 17, 19, 20, 28, 31, 58, 59 and 95.
This Chapter will generally apply to DOD purchases of the
following FSC categories subject to United States Government
determinations under the provisions of Article 1018(1)
(Exceptions):
22. Railway Equipment
23. Motor Vehicles, Trailers, and Cycles (except buses in
2310)
24. Tractors
25. Vehicular Equipment Components
26. Tires and Tubes
29. Engine Accessories
30. Mechanical Power Transmission Equipment
32. Woodworking Machinery and Equipment
34. Metalworking Machinery
35. Service and Trade Equipment
36. Special Industry Machinery
37. Agricultural Machinery and Equipment
38. Construction, Mining, Excavating, and Highway Maintenance
Equipment
39. Materials Handling Equipment
40. Rope, Cable, Chain and Fittings
41. Refrigeration and Air Conditioning Equipment
42. Fire Fighting, Rescue and Safety Equipment
43. Pumps and Compressors
44. Furnace, Steam Plant, Drying Equipment and Nuclear
Reactors
45. Plumbing, Heating and Sanitation Equipment
46. Water Purification and Sewage Treatment Equipment
47. Pipe, Tubing, Hose and Fittings
48. Valves
49. Maintenance and Repair Shop Equipment
52. Measuring Tools
53. Hardware and Abrasives
54. Prefabricated Structures and Scaffolding
55. Lumber, Millwork, Plywood and Veneer
56. Construction and Building Materials
61. Electric Wire, and Power and Distribution Equipment
62. Lighting Fixtures and Lamps
63. Alarm and Signal Systems
65. Medical, Dental, and Veterinary Equipment and Supplies
66. Instruments and Laboratory Equipment
67. Photographic Equipment
68. Chemicals and Chemical Products
69. Training Aids and Devices
70. General Purpose ADPE, Software, Supplies and Support
Equipment
71. Furniture
72. Household and Commercial Furnishings and Appliances
73. Food Preparation and Serving Equipment
74. Office machines, text processing system and visible
record equipment
75. Office Supplies and Devices
76. Books, Maps and Other Publications
77. Musical Instruments, Phonographs, and Home Type Radios
78. Recreational and Athletic Equipment
79. Cleaning Equipment and Supplies
80. Brushes, Paints, Sealers and Adhesives
81. Containers, Packaging and Packing Supplies
85. Toiletries
87. Agricultural Supplies
88. Live Animals
91. Fuels, Lubricants, Oils and Waxes
93. Non-metallic Fabricated Materials
94. Non-metallic Crude Materials
96. Ores, Minerals and their Primary Products
99. Miscellaneous
Note:
The General Notes for the United States as set out in Annex 1002.7
apply to this Annex.
=============================================================================
ANNEX 1002.2
State and Provincial Government Entities
Coverage under this Annex will be addressed following
consultations with state and provincial governments under the terms
and conditions set out in Article 1024 (Further Negotiations).
Note:
The General Notes as set out in Annex 1002.7 apply to this Annex.
=============================================================================
ANNEX 1002.3
Government Enterprises
Schedule of Canada
1. Canada Post Corporation
2. National Capital Commission
3. St. Lawrence Seaway Authority
4. Royal Canadian Mint
5. Canadian National Railways
6. Via Rail
7. Canadian Museum of Civilization
8. Canadian Museum of Nature
9. National Gallery of Canada
10. National Museum of Science and Technology
11. Defence Construction (1951) Ltd.
Notes:
1. With respect to procurements by Canadian National Railways,
St. Lawrence Seaway Authority and Via Rail, coverage is subject to
Article 1019(5) (Provision of Information), respecting the
protection of the commercial confidentiality of information
provided.
2. The General Notes for Canada as set out in Annex 1002.7 apply
to this Annex.
Schedule of Mexico
Printing and Editorial
1. Talleres Gr ficos de la Naci¢n
2. Productora e Importadora de Papel S.A de C.V., Pipsa
Communications and Transportation
3. Aeropuertos y Servicios Auxiliares, ASA
4. Caminos y Puentes Federales de Ingreso y Servicios Conexos,
Capufe
5. Puertos Mexicanos
6. Servicio Postal Mexicano
7. Ferrocarriles Nacionales de M‚xico, Ferronales
8. Telecomunicaciones de M‚xico, Telecom
Industry
9. Petr¢leos Mexicanos, Pemex (This Chapter does not apply to
procurement of fuels and gas.)
10. Comisi¢n Federal de Electricidad, CFE
11. Consejo de Recursos Minerales
12. Comisi¢n de Fomento Minero
Commerce
13. Compa¤¡a Nacional de Subsistencias Populares, Conasupo (This
Chapter does not apply to procurement of agricultural products
made in furtherance of agricultural support programmes or
human feeding programmes.)
14. Bodegas Rurales Conasupo, S.A. de C.V.
15. Distribuidora e Impulsora de Comercio, Diconsa
16. Leche Industrializada Conasupo, S.A. de C.V., Liconsa (This
Chapter does not apply to procurement of agricultural products
made in furtherance of agricultural support programmes or
human feeding programmes.)
17. Procuradur¡a Federal del Consumidor
18. Instituto Nacional del Consumidor
19. Laboratorios Nacionales de Fomento Industrial
20. Servicio Nacional de Informaci¢n de Mercados
Social Security
21. Instituto de Seguridad y Servicios Sociales de los
Trabajadores del Estado, ISSSTE
22. Instituto Mexicano del Seguro Social, IMSS
23. Sistema Nacional para el Desarrollo Integral de la Familia,
DIF (This Chapter does not apply to procurement of
agricultural products made in furtherance of agricultural
support programmes or human feeding programmes.)
24. Servicios Asistenciales de la Secretar¡a de Marina
25. Instituto de Seguridad Social para las Fuerzas Armadas
Mexicanas
26. Instituto Nacional Indigenista, INI
27. Instituto Nacional Para la Educaci¢n de los Adultos
28. Centros de Integraci¢n Juvenil
29. Instituto Nacional de la Senectud
Others
30. Comite Administrador del Programa Federal de Construcci¢n de
Escuelas, Capfce
31. Comisi¢n Nacional del Agua, CNA
32. Comisi¢n Para la Regularizaci¢n de la Tenencia de la Tierra
33. Consejo Nacional de Ciencia y Tecnolog¡a, Conacyt
34. Notimex, S.A . de C.V.
35. Instituto Mexicano de Cinematograf¡a
36. Loter¡a Nacional para la Asistencia P£blica
37. Pron¢sticos Deportivos
Notes:
1. National security exceptions include procurements made in
support of safeguarding nuclear materials or technology.
2. The General Notes for Mexico as set out in Annex 1002.7 apply
to this Annex.
Schedule of the United States
1. Tennessee Valley Authority
2. Power Marketing Administrations of the Department of Energy
- Bonneville Power Administration
- Western Area Power Administration
- Southeastern Power Administration
- Southwestern Power Administration
- Alaska Power Administration
3. St. Lawrence Seaway Development Corporation
Notes:
1. For suppliers of goods and services of Canada, the obligations
of this Chapter will apply to procurements by the Tennessee Valley
Authority and the Power Marketing Administrations of the Department
of Energy only at such time as the obligations of this Chapter take
effect for procurements by Canadian Provincial Hydro utilities.
2. The General Notes for the United States as set out in Annex
1002.7 apply to this Annex.
=============================================================================
ANNEX 1002.4
Services
I. General Provisions
1. Except for the services listed in Part II of this Annex, all
services procured by the entities listed in Annex 1002.1 (Federal
Government Entities) and Annex 1002.3 (Government Enterprises) are
subject to this Chapter.
2. Contracts for construction services are subject to this
Chapter as specified in Annex 1002.5 (Construction Services).
3. The Parties shall adopt a universal list of services for
reporting purposes, which is indicative of the services procured by
the entities of the Parties, and is contained in the Appendix to
this Annex.
4. The Parties shall update, as appropriate, the list of
universal services included in the Appendix to this Annex at such
time as they mutually agree.
5. Notwithstanding paragraph 1, for Mexico only the services
included in the Temporary Schedule of Mexico will be subject to
this Chapter, until such time as Mexico has completed its schedule
under Part II pursuant to paragraph 6.
6. Mexico will develop and, after consultations with the other
Parties, complete its list of services set out under the Schedule
of Mexico in Part II of this Annex no later than July 1, 1995.
Temporary Schedule of Mexico: Services Included
(Based on the United Nations Central Product Classification, CPC)
Professional Services
863 Taxation services (excluding legal services)
8671 Architectural services
86711 Advisory and pre-design architectural services
87612 Architectural design services
87713 Contract administration services
86714 Combined architectural design and contract
administration services
86719 Other architectural services
8672 Engineering services
86721 Advisory and consultative engineering services
86722 Engineering design services for foundations and
building structures
86723 Engineering design services for mechanical and
electrical installations for buildings
86724 Engineering design services for civil engineering
construction
86725 Engineering design for industrial processes and
production
86726 Engineering design services n.e.c.
86727 Other engineering services during the construction
and installation phase
86729 Other engineering services
8673 Integrated engineering services
86731 Integrated engineering services for transportation,
infrastructure turnkey projects
86732 Integrated engineering and project management
services for water supply and sanitation works
turnkey projects
86733 Integrated engineering services for the
construction of manufacturing turnkey projects
86739 Integrated engineering services for other turnkey
projects
8674 Urban planning and landscape architectural services
Computer and Related Services
841 Consultancy services related to the installation of
computer hardware
842 Software implementation services, including systems and
software consulting services, systems analysis, design,
programming and maintenance services
843 Data processing services, including processing,
tabulation and facilities management services
844 Data base services
845 Maintenance and repair services of office machinery and
equipment including computers
849 Other computer services
Real Estate Services
821 Real estate services involving own or leased property
822 Real estate services on a fee or contract basis
Rental/Leasing Services without Operators
831 Leasing or rental services concerning machinery and
equipment without operator, including computers
832 Leasing or rental services concerning personal and
household goods (excluding in 83201, the rental of
prerecorded records, sound cassettes, CD's and excluding
83202, rental services concerning video tapes)
Other Business Services
865 Management consulting services
86501 General management consulting services
86503 Marketing management consulting services
86504 Human resources management consulting services
86505 Production management consulting services
86509 Other management consulting services, including
agrology, agronomy, farm management and related
consulting services
8676 Technical testing and analysis services including quality
control and inspection
8814 Services incidental to forestry and logging, including
forest management
883 Services incidental to mining, including, drilling and
field services
5115 Site preparation for mining
8675 Related scientific and technical consulting services
86751 Geological, geophysical and other scientific
prospecting services, including those related to
mining
86752 Subsurface surveying services
86753 Surface surveying services
86754 Map making services
663 Repair services of personal and household goods
8861 Repair services incidental to metal products, to
machinery and equipment including computers,
8866 and communications equipment
874 Building-cleaning
876 Packaging services
Environmental Services
940 Sewage and refuse disposal, sanitation and other
environmental protection services, including sewage
services, nature and landscape protection services and
other environmental protection services n.e.c.
Hotels and restaurants(including catering)
641 Hotel and other lodging services
642/3 Food and beverage serving services
Travel agency and tour operators services
7471 Travel agency and tour operator services
II. Services Excluded from Coverage
[Subject to review]
The following services contracts are excluded in their entirety by
the Parties:
Schedule of Canada
(Based on the United Nations Central Product Classification, CPC)
CPC
1. Transport, storage and communication services
- Land Transport services 71
- Water Transport services 72
- Air Transport Services 73
- Supporting and Auxiliary Transport services (except
7471: Travel Agencies and Tour Operator services) 74
- Post and Telecommunication services (except 7512:
Courier services and 7523: Data Transmission
services) 75
Note: All transportation services, including related
repair and overhaul and launching services and
transportation services, where incidental to procurement
contracts, are not subject to this Chapter.
2. Business services; agricultural, mining and manufacturing
services
- Financial, Intermediation services and Auxiliary
services therefor 81
- Leasing or rental services concerning televisions,
radios, video cassette recorders and related
equipment and accessories 83201
- Leasing or rental services concerning video tapes 83202
- Research and Development services 85
- Legal services (except: Advisory services on
Foreign Law) 861
- Legal services incidental to Taxation Services 863
- Market Research and Public Opinion Polling
services 864
- Financial Management consulting services (except
corporate tax) 86502
- Public relations services 86506
- Services related to management consulting 866
- Related scientific and technical consulting
services 8675
- Business Services, n.e.c. (except 8740: Building
cleaning services and 8760: Packaging services) 87
- Services incidental to agriculture, hunting and
forestry (except 8814: services incidental to
forestry and logging; and 8830: services incidental
to mining) 881
- Services incidental to fishing 882
- Services incidental to manufacturing, except to the
manufacture of metal products, machinery and
equipment 884
- Services incidental to the manufacture of metal
products, machinery and equipment (except 8852:
Manufacture of fabricated metal products, except
machinery and equipment on a fee or contract
basis) 885
- Repair services, n.e.c. of motor vehicles, trailers
and semi-trailers, on a fee or contract basis 8867
- Repair services of other transport equipment, on a
fee or contract basis 8868
- Services incidental to energy distribution 887
- Intangible assets 89
3. Community, Social and Professional Services
- Education services 92
- Health and Social Services 93
- Services of Membership Organizations 95
- Recreation, cultural and sporting services 96
- Other services 97
- Services provided by extraterritorial organizations
and bodies 99
4. Contracts of the departments of Transport Canada,
Communications Canada and Fisheries and Oceans respecting FSCs
70 (automatic data processing equipment, software supplies and
support equipment), 74 (office machines, text processing
systems and visible record equipment), 36 (special industry
machinery).
5. Research and development services.
6. Dredging.
7. All services purchased in support of military forces located
overseas.
8. Management and operation contracts awarded to federally-funded
research and development centers or related to carrying out
government sponsored research programs.
9. Public utilities services.
10. Printing and publishing.
Note:
The General Notes for Canada as set out in Annex 1002.7 apply to
this Annex.
Schedule of Mexico
(Based on the United Nations Central Product Classification, CPC)
CPC
1. All transportation services, including transportation
services incidental to procurement contracts:
- Land transportation 71
- Water transport 72
- Air transport 73
- Supporting and auxiliary transport 74
- Post and telecommunication 75
- Repair services of other transport equipment, on a
fee or contract basis 8868
2. All risk-sharing contracts by Pemex.
3. Public utilities services (including telecommunications,
transmission, water or energy services).
4. Management and operation contracts awarded to federally-funded
research and development centers or related to carrying out
government sponsored research programs.
5. Financial services
6. Research and development services
7. Confidential consulting services (provided that they are not
used with a view to avoiding maximum possible competition or
in a manner that would constitute a means of discrimination
among suppliers of the other Parties or protection to Mexican
suppliers).
Note:
The General Notes for Mexico as set out in Annex 1002.7 apply
to this Annex.
Schedule of the United States
(Based on the Procurement Data System Services Codes)
FSC
1. Transportation and related services (except V231:
Lodging and Hotel/Motel; and V302: travel agent)
- Transportation V
- Maintenance, Repair and Rebuilding of Ships JO19
- Non-nuclear Ship Repair J998 and J999
- Modification of Ships KO19
In addition, transportation services, where incidental
to procurement contracts, are not subject to this Chapter.
2. Dredging Y216
3. All services purchased in support of military forces
overseas.
4. Management and operation contracts awarded to
- federally-funded research and development centers
(FFRDCs) or related to carrying out
government-sponsored research programs
(classification to be clarified) M181-184
- by DOD, DOE, and NASA M
5. Public utilities and telecommunications services:
- Utilities S1
- ADP Telecommunications and Transmission Services D304
- ADP Teleprocessing and Timesharing Services D305
- Telecommunications Network Management Services D316
- Automated News Services, Data Services, or other
information D317
- Other ADP and Telecommunications services D399
6. Research and Development services A
Note: The General Notes for the United States as set out in Annex
1002.7 apply to this Annex.
Appendix to ANNEX 1002.4
Universal List of Services
ANNEX 1002.5
Construction Services
I. General Provisions
1. Except for the construction services listed in Part II of this
Annex, all construction services as specified in the Appendix to
this Annex, which are procured by the entities listed in Annex
1002.1 (Federal Government Entities) and Annex 1002.3 (Government
Enterprises) are subject to this Chapter.
2. The Parties will update, as appropriate, the list of
construction services included in the Appendix at such time as they
mutually agree.
II. Construction Services Excluded from Coverage
The following services contracts are excluded in their entirety by
the Parties:
Schedule of Canada
1. Dredging.
2. Construction contracts tendered by or on behalf of Department
of Transport.
Note: The General Notes for Canada as set out in Annex 1002.7
apply to this Annex.
Schedule of Mexico
All risk-sharing contracts by Pemex.
Notes:
The General Notes for Mexico as set out in Annex 1002.7 apply
to this Annex.
Schedule of the United States
Dredging.
Notes:
1. In accordance with the obligations of this Chapter, buy
national requirements on articles, supplies, and materials acquired
for use in construction contracts subject to the obligations of
this Chapter will not apply to products of Canada or Mexico.
2. The General Notes for the United States as set out in Annex
1002.7 apply to this Annex.
Appendix to ANNEX 1002.5
List of Construction Services
List of contracts for construction services which are subject to
the obligations of this Chapter, except as otherwise provided:
(Based on the United Nations Central Product Classification, CPC)
Division 51 Construction work
511 Pre-erection work at construction sites
5111 Site investigation work
5112 Demolition work
5113 Site formation and clearance work
5114 Excavating and earthmoving work
5115 Site preparation work for mining
5116 Scaffolding work
512 Construction works for buildings
5121 For one and two dwelling buildings
5122 For multi-dwelling buildings
5123 For warehouses and industrial buildings
5124 For commercial buildings
5125 For public entertainment buildings
5126 For hotel, restaurant and similar buildings
5127 For educational buildings
5128 For health buildings
5129 For other buildings
513 Construction work for civil engineering
5131 For highways (except elevated highways), streets, roads,
railways and airfield runways
5132 For bridges, elevated highways, tunnels and subways
5133 For waterways, harbours, dams and other water works
5134 For long distance pipelines, communication and power
lines (cables)
5135 For local pipelines and cables; ancillary works
5136 For constructions for mining and manufacturing
5137 For constructions for sport and recreation
5139 For engineering works n.e.c.
514 5140 Assembly and erection of prefabricated constructions
515 Special trade construction work
5151 Foundation work, including pile driving
5152 Water well drilling
5153 Roofing and water proofing
5154 Concrete work
5155 Steel bending and erection, including welding)
5156 Masonry work
5159 Other special trade construction work
516 Installation work
5161 Heating, ventilation and air conditioning work
5162 Water plumbing and drain laying work
5163 Gas fitting construction work
5164 Electrical work
5165 Insulation work (electrical wiring, water, heat, sound)
5166 Fencing and railing construction work
5169 Other installation work
517 Building completion and finishing work
5171 Glating work and window glass installation work
5172 Plastering work
5173 Painting work
5174 Floor and wall tilling work
5175 Other floor laying, wall covering and wall papering work
5176 Wood and metal joinery and carpentry work
5177 Interior fitting decoration work
5178 Ornamentation fitting work
5179 Other building completion and finishing work
518 5180 Renting services related to equipment for construction or
demolition of buildings or civil engineering works, with
operator
=============================================================================
ANNEX 1002.6
Transition Provisions for Mexico
Notwithstanding any other provision of this Chapter, Annexes 1002.1
through 1002.5 are subject to the following:
Pemex, CFE and Non-Energy Construction
1. The obligations of this Chapter shall not apply to:
(a) 50 percent of the total annual procurement above
thresholds of goods, services and construction services
by Pemex;
(b) 50 percent of the total annual procurement above
thresholds of goods, services and construction services
by CFE; and
(c) 50 percent of the total annual procurement above
thresholds of construction services, excluding
construction services procured by Pemex and CFE.
2. Loans from regional and multilateral financial institutions
will not be included for purposes of calculating the reservations
specified in paragraph 1 or subject to other restrictions.
3. As of January 1st, 1994, the reservation specified in
paragraph 1 will decrease according to the following schedule:
1994 1995 1996 1997 1998
50% 45% 45% 40% 40%
1999 2000 2001 2002 2003 and thereafter
35% 35% 30% 30% 0%
4. For Pemex and CFE, no more than 10 percent of their respective
reserved procurement under paragraphs 1 and 3 shall be applied
within a single Federal Supply Classification (FSC) class (or other
classification system as agreed by all Parties) in a single year.
5. After December 31, 1998, Pemex and CFE each will make all
reasonable efforts to assure that their respective total
reservation in each FSC class (or other classification system as
agreed by all Parties) shall not exceed 50 percent in a single year.
Pharmaceuticals
6. The provisions of this Chapter shall not apply to drugs whose
patents have expired or are not currently patented (FSC class 6505)
procured by the Secretar¡a de Salud, IMSS, ISSSTE, Secretar¡a de
Defensa and the Secretar¡a de Marina. This exception shall be
eliminated after 8 years from the date of entry into force of this
Agreement. Procurement of biologicals and patented drugs shall not
be exempted under any other provision of the Annexes of this
Chapter. Nothing in this Chapter shall be interpreted in a way
which will impair the protection provided by Chapter 17
(Intellectual Property) of this Agreement.
Time Limits for Tendering and Delivery
7. Upon the date of entry into force of this Agreement in January
1, 1994, Mexico will make best efforts to comply with the
provisions of Article 1012 (Time Limits for Tendering and Delivery)
with respect to the 40 day time limits. However, Mexico will fully
comply with such obligations as from January 1, 1995.
Provision of Information
8. The Parties recognize that Mexico may be required to undertake
extensive retraining of personnel, introduce new data maintenance
and reporting systems and make major adjustments to the procurement
systems of certain entities in order to comply with the obligations
of this Chapter. The Parties also recognize that Mexico may
encounter difficulties in making the transition to procurement
systems that facilitate full compliance with the obligations of
this Chapter.
9. The Parties shall, therefore, consult on an annual basis for
the first five years that the Agreement is in effect to review
transitional problems and to develop mutually agreed solutions.
Such solutions may include, when appropriate, temporary adjustment
to the obligations of Mexico under this Chapter, such as those
related to reporting requirements.
10. In addition, the United States and Canada shall cooperate with
Mexico to provide technical assistance, as appropriate and mutually
agreed pursuant to Article 1020 (Technical Cooperation) of this
Chapter, to aid Mexico's transition.
11. Notwithstanding any other provision of this Annex, each Party
shall assume all of its obligations specified in this Chapter upon
the date of entry into force of this Agreement.
Note: The General Notes for Mexico as set out in Annex 1002.7
apply to this Annex.
=============================================================================
ANNEX 1002.7
General Notes
Schedule of Canada
1. Notwithstanding any other provision of this Chapter, this
Chapter does not apply to procurements in respect of:
(a) shipbuilding and repair;
(b) urban rail and urban transportation equipment, systems,
components and materials incorporated there in as well as
all project related materials of iron or steel;
(c) contracts respecting FSC 58 (communications, detection
and coherent radiation equipment);
(d) set-asides for small and minority businesses;
(e) pursuant to Article 1018 national security exemptions
include oil purchases related to any strategic reserve
requirements; and
(f) national security exceptions include procurements made in
support of safeguarding nuclear materials or technology.
2. Procurement in terms of Canadian coverage is defined as
contractual transactions to acquire property or services for the
direct benefit or use of the government. It does not include
non-contractual agreements or any form of government assistance,
including but not limited to, cooperative agreements, grants,
loans, equity infusions, guarantees, fiscal incentives, and
government provision of goods and services, given to individuals,
firms, private institutions, and sub-central governments.
Schedule of Mexico
1. Notwithstanding any other provision of this Chapter, this
Chapter does not apply to procurements made:
(a) with a view to commercial resale by government-owned retail
stores;
(b) pursuant to loans from regional or multilateral financial
institutions to the extent that different procedures are
imposed by such institutions (except for national content
requirements); and
(c) between entities.
2. Notwithstanding any other provision in this Chapter, Mexico
may allocate a non-specific sector set-aside as follows:
(a) upon the date of entry into force of this Agreement, up
to the equivalent in real terms of $1.0 billion USD of
1994 shall annually be available to all procurements of
entities subject to this Chapter, except Pemex and CFE
and construction services procured by other entities
subject to this Chapter as well as those procurements of
goods in FSC class 6505;
(b) after December 31, 2002, up to the equivalent in real
terms of $1.2 billion USD of 1994 shall annually be
available to all procurement of entities subject to this
Chapter, except Pemex and CFE and construction services
procured by other entities subject to this Chapter as
well as those procurements of goods of FSC class 6505;
(c) after December 31, 2002, up to the equivalent in real
terms of $300 million USD of 1994 shall annually be
availble to Pemex and CFE combined; and
(d) for purposes of this paragraph
(i) no more than 10 percent of the total procurement
reserved shall be applied within a single FSC
category (or other classification system as agreed
by all Parties) in a single year, and
(ii) no more than 20 percent may be used by a single
entity.
These values shall remain constant in real terms.
3. Notwithstanding any other provision of this Chapter, the
entities subject to this Chapter may impose a local content
requirement of no more than:
(a) 40 percent, for labor intensive turnkey or major
integrated projects; and
(b) 25 percent, for capital intensive turnkey or major
integrated projects.
For purposes of these provisions, a turnkey or major integrated
project means, in general, a construction, supply or installation
project undertaken by a person pursuant to a right granted by an
entity subject to this Chapter with respect to which:
(c) the prime contractor is vested with the authority to
select the general contractors or subcontractors;
(d) Mexico does not fund the project itself;
(e) the person bears the risk of performance; and
(f) the facility will be operated by an entity subject to
this Chapter or through a procurement contract of that
entity.
4. Regardless of the thresholds, Pemex shall apply the
disciplines of Article 1004 regarding national treatment and
non-discrimination to:
(a) procurements of oil and gas field supplies and equipment,
when such supplies and equipment are procured at the
location where works pursued by Pemex are being
performed; and
(b) the selection of suppliers, when such suppliers are
established at the location where works pursued by Pemex
are being performed.
5. If the obligations of the procurements covered by this Chapter
are not met, the Parties may seek compensation in the form of more
market opportunities during the following year, or through reliance
of Chapter 20 (Institutional Arrangements and Dispute Settlement
Procedures).
6. Procurement in terms of the Mexican coverage is defined as
contractual transactions to acquire property or services for the
direct benefit or use of the government. It does not include
non-contractual agreements or any form of government assistance,
including, but not limited to, cooperative agreements, grants,
loans, equity infusions, guarantees, fiscal incentives, and
governmental provisions of goods and services, given to
individuals, firms, private institutions and state governments.
Schedule of the United States
1. Notwithstanding any other provision of this Chapter, this
Chapter does not apply to set asides on behalf of small and
minority businesses.
2. Procurement in terms of U.S. coverage is defined as
contractual transactions to acquire property or services for the
direct benefit or use of the government. It does not include
non-contractual agreements or any form of government assistance,
including, but not limited to, cooperative agreements, grants,
loans, equity infusions, guarantees, fiscal incentives, and
governmental provision of goods and services, given to individuals,
firms, private institutions, and subcentral governments.
=============================================================================
ANNEX 1002.8
Indexation and Conversion of Thresholds
1. The calculations described in Article 1002(4) (Scope and
Coverage) shall be made in accordance with the following:
(a) the United States inflation rate shall be measured by the
the Producer Price Index for Finished Goods published by
the United States Department of Commerce; and
(b) the inflationary adjustment shall be estimated according
to the following formula
T0 x (1+ pi) = T1
T0= threshold value at base period
pi= accumulated U.S. inflation rate for the ith two
year-period
T1= new threshold value.
2. Mexico and Canada shall calculate and convert the value of the
thresholds specified in paragraph 3 into their national currencies
using the conversion formulas set out in paragraph 3 or 4, as
appropriate. Mexico and Canada shall notify each other and the
United States of the value, in their respective currencies, of the
newly calculated thresholds not less than one month before the
respective thresholds take effect.
3. Canada shall base the calculation on the official conversion
rates of the Bank of Canada. From January 1, 1994 through December
31, 1995, the conversion rate shall be the average of the weekly
values of the Canadian dollars in terms of the U.S. dollars over
the period October 1, 1992 through September 30, 1993. For each
subsequent two-year period, beginning January 1, 1996, the
conversion rate shall be the average of the weekly values of the
Canadian dollar in terms of the U.S. dollar over the two-year
period ending September 30 of the year preceding the beginning of
each two-year period.
4. Mexico shall use the conversion rate of the Banco de M‚xico.
The conversion rate shall be the existing value of the Mexican peso
in terms of the US dollar as of December 1 and June 1 of each year,
or the 1st working day after. The conversion rate as of December 1
shall apply from January 1 to June 30 of the following year, and as
of June 1 shall apply from July 1 to December 31 of that year.
=============================================================================
ANNEX 1002-A
Country-Specific Thresholds
As between Canada and the United States,
a) for covered federal entities, thresholds on procurement
between Canada and the United States are as follows:
i) goods and services: goods -- US$25,000; services --
US$50,000. Canada and the United States shall consult
regarding these threshold values, and
ii) Construction: US$6,500,000; and
b) for covered government enterprises, thresholds on procurement
between Canada and the United States are as follows
i) goods and services: US$250,000, and
ii) construction: US$8,000,000.
=============================================================================
ANNEX 1010.1
Publications
I. Publications for Notices of Procurement in Accordance with
Article 1010 (Invitation to Participate)
Schedule of Canada
1. Government Business Opportunities (GBO).
2. Open Bidding Service, ISM Publishing.
Schedule of Mexico
1. Major daily newspapers of national circulation.
2. Mexico will endeavor to establish a specialized publication
for purposes of notices of procurement. When such publication is
ready, it will substitute those referred to in paragraph 1.
Schedule of United States
Commerce Business Daily (CBD).
II. Publications for Measures in Accordance with Article 1019
(Provision of Information)
Schedule of Canada
1. Precedential judicial decisions regarding government
procurement:
(a) Dominion Law Reports;
(b) Supreme Court Reports;
(c) Federal Court Reports;
(d) National Reporter.
2. Administrative rulings and procedures regarding government
procurement:
(a) Government Business Opportunities; and
(b) Canada Gazette.
3. Laws and regulations:
(a) Revised Statutes of Canada;
(b) Canada Gazette.
Schedule of Mexico
1. Diario Oficial de la Federaci¢n.
2. Semanario Judicial de la Federaci¢n (for precedential judicial
decisions only).
3. Mexico will endeavor to establish a specialized publication
for administrative rulings of general application and any
procedure, including standard contract clauses.
Schedule of United States
1. All United States laws, regulations, judicial decisions,
administrative rulings and procedures regarding government
procurement covered by this Chapter are codified in the Defense
Federal Acquisition Regulation Supplement (DFARS) and the Federal
Acquisition Regulation (FAR), both of which are published as a part
of the United States Code of Federal Regulations (CFR). The DFARS
and the FAR are published in title 48 of CFR. Copies may be
purchased from the Government Printing Office. These regulations
are also published in loose-leaf versions that are available by
subscription from the Government Printing Office. Changes are
provided to subscribers as they are issued.
2. For those who wish to consult original sources, the following
published sources are provided:
Material Publication Name
United States Laws U.S. Statutes at Large
Decisions:
- United States Supreme Court U.S. Reports
- Circuit Court of Appeals Federal Reporter - 2nd Series
- District Courts Federal Supplement Reporter
- Court of Claims Court of Claims Reports
Decisions:
- Boards of Contract Appeals Unofficial publication by Commerce Clearing
House
Decisions:
-Comptroller General of the Those not officially United States
published as decisions of the Comptroller General are published
unofficially by Federal Publications, Inc.
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