The document discusses the tendering process for procurement, including defining requests for proposals, the advantages and disadvantages of tendering, how to write effective RFPs, and how to evaluate bids and select proposals. It provides examples of RFPs for various types of services and assets, and outlines the typical stages involved in an RFP process from developing requirements to contract negotiation and award.

1. IV – Tendering
Employment Law pg 57
Ec Dev & JV Approaches
Part 2
1

2. Tendering Basics
Nait Bus Law
April 1, 2006
Chris Hylton
2

3. Definition of RFP
Contains very detailed requirements
Vendors‟ response targeted to RFP
Allows fairs and objective comparison
Forms basis for contract
3

4. Advantages
Potential lower cost
Precise specifications
Negotiation
Best solution accepted
4

5. Disadvantages
Takes longer to procure
Must evaluate less acceptable solutions
Can involve diverse organizations
5

6. Writing the RFP
Analyze your needs
Determine evaluation method
Provide complete and accurate data
Organize the RFP clearly
Communicate
Automate
6

7. Contents of RFP
 Info/instruction for  Timeline
bidders (response  Financial framework
guidelines)  Clauses to protect
 Background yourself
 Functional  Documentation
requirements requirements
 Testing parameters
7

8. Review/Selection Process
Decide on review criteria in advance
Decision matrix or other tool
Involve all decision makers
Expect delays
8

9. RFP
Terminology
– Informal Competitive Bidding
• Request for Quote (RFQ)
– Formal Competitive Sealed Bidding
• Invitation to Bid (ITB)
– Competitive Sealed Proposal
• Request for Proposal (RFP)
9

10. REQUEST for QUOTE
Small Expenditure
Emergency Purchase
Sole Source
10

11. INVITATION to BID
 Specific Product or Service
 Precise Specifications/Descriptions
 Lowest Price Determines Award to Responsive and
Responsible Bidder
 Negotiations Not Allowed
11

12. REQUEST for PROPOSAL
 Price Not the Only Factor
 Multiple Possible Solutions/Approaches
 Solicit Offerors Input to Define Problem and
Solution
 Evaluation Team
 Best and Final Offer (BAFO)
 Final Negotiations
 Best Value
12

13. RFP PROCESS FLOW
10 Steps to Successful RFP Process
Management
Typical Process
Acquisition Process Flow Chart
13

14. SUCCESSFUL RESPONSES
Pre-solicitation Steps
– Information Required of Offeror
– Bidders List
– Avoid Lists that are Too Narrow or Too Broad
14

15. RFP TIMETABLE
1. Develop Work Statement and RFP 2 weeks
2. Send out RFP, Q&A Period 3-5 weeks
3. Review/Evaluate Proposals, Negotiate
& Finalize Decision 2-4 weeks
4. Administrative Board Approval 4 weeks
5. Finalize Contract 2-4 weeks
Total 13-18 weeks
15

16. RFP ELEMENTS
Terms and Conditions
Work Statement/Specification
Proposal Submission Information
Offeror Information and Representations
16

17. EVAL/AWARD PROCESS
Evaluation Committee
– Scoring Methods
– Two Step Procurement Process
Best and Final Offers/Negotiations
Award
17

18. EXAMPLES
Asset Management
Maintenance Management
Fuel Contract
Welding services
Instruction
18

19. EXAMPLES
Category Subject RFP or Commodity Example Documents
RFQ or Service
RFP Commodity Vehicle Specifications
Vehicle Acquisition (250 pages examples)
RFQ Commodity Truck Spec
Asset RFP Commodity Patrol Vehicle Specs
Management RFQ Commodity Refuse Tractor Spec
Vehicle RFP Service Auction Services
Remarketing
Vehicle Leasing RFP Service Vehicle Lease Services
19

20. RFP Examples
Statement of Work
Questions to Ask
Evaluation
RFI Leas
Sale
e
Repai RFP Fuel
r
Asset RFQ
IT
20

21. Statement of Work
Asset Management -Acquisition
 Vehicle Specification & Quotes
 Factory & Stock Orders
 Ship Through & Pool Orders
 Special Order Bids
21

22. Statement of Work
Fuel Management
– Internal vs External Fuel Acquisition
– Universal Fuel Card vs Brand Card
– Multi Purpose Card
– Tax Exempt
– Type of Fuels
– Exception Parameters
– Expense Approval Parameters
– Expense Management
– Fuel Cost Savings Management
– New & Replacement Card Administration 22

23. Statement of Work
Welding Services
23

24. Evaluation Techniques
Evaluation Criteria Point System Evaluation
Rating based on a 1 - 5 scale
A Company B Company
Technical Expertise 4 3
Price 4 4
Financial Status 4 3
Service Locations 2 5
Management Skills 3 3
Quality Control Programs 3 3
20 21
24

25. Evaluation Techniques
Evaluation Criteria Weighted Scale Evaluation
Weighted A B
Multiplier Company Company
Technical Expertise 0.25 1.00 0.75
Price 0.25 1.00 1.00
Financial Status 0.15 0.60 0.45
Service Locations 0.10 0.20 0.50
Management Skills 0.10 0.30 0.30
Quality Control Programs 0.15 0.45 0.45
1.00 3.55 3.45
25

26. Summary
RFP is just a starting point
Customize to your company
Take the best from all examples
Involve others and get feedback
Evaluate for Best Value
Manage suppliers & solutions
Contract management critical
26

27. Job Candidate Evaluation
Evaluation Criteria Point System Evaluation
Candidate
Rating based on a 1 - 5 scale
A B
Technical Expertise 4 3
Salary Req’d 4 4
Education 4 3
Experience 2 5
Management Skills 3 3
Language/Culture 3 3
20 21
27

28. Job Candidate Evaluation
Evaluation Criteria Weighted Scale Evaluation
Weighted
Multiplier A B
Technical Expertise 0.25 1.00 0.75
Salary Req’d 0.25 1.00 1.00
Education 0.15 0.60 0.45
Experience 0.10 0.20 0.50
Management Skills 0.10 0.30 0.30
Language/Culture 0.15 0.45 0.45
1.00 3.55 3.45
28

29. Performance Appraisal
Evaluation Criteria Point System Evaluation
Manager
Rating based on a 1 - 5 scale
A B
Customer Service 4 3
Meeting Deadlines 4 4
# New Customers 4 3
Training 2 5
Profit / Obtaining Funding 3 3
Language/Culture 3 3
20 21
29

30. Performance Appraisal
Evaluation Criteria Weighted Scale Evaluation
Weighted
Multiplier A B
Customer Service 0.25 1.00 0.75
Meeting Deadlines 0.25 1.00 1.00
# New Customers 0.15 0.60 0.45
Training 0.10 0.20 0.50
Profit / Obtaining Funding 0.10 0.30 0.30
Language/Culture 0.15 0.45 0.45
1.00 3.55 3.45
30

31. QUESTIONS

32. What Is Employment?
Compare employee with agent and
independent contractor
Control test - degree of control exercised over
an employee is greater than over an
independent contractor
Organization test - is person an essential part
of employer‟s organization?
32

33. What Is Employment?/2
An agent enters into legal relationships with
others on behalf of a principal
Agent may be an employee or an independent
contractor
Liability will be determined by
nature of the relationship.
33

34. Employee or Independent Contractor?
Test Independent Employee
Contractor
Does employer control hours, work Control No Yes
etc ?
Does employer supervise the work? Control No Yes
Desired outcome – the “end” or the Control The “end” The
“means”? result “means”
Is there freedom to work for other Control Yes Probably
employers of clients? not
Accepts liabilities (risk) for the Control Yes No
task?
34

35. Employee or Independent Contractor?
Test Independent Employee
Contractor
Profit or salary? Control Profit Salary
Owns equipment? Control Yes No
Authority to hire staff? Control Yes Only if
delegated
Is position essential to the Organization No, except Yes
organization? for duration
of project
35

36. Law of Master and Servant
Contract law apply
Statute law - Employment Standards Act –
– determining responsibilities of employers to
employees
Common law
36

37. Law of Master and Servant
Common law –
– Employer must provide –
• safety, defined work, clear direction, wages,
reasonable termination notice
• Vicariously liable for employee torts/performance
– Employee must have
• skills claimed, reasonable competence, punctual,
honest, good faith, confidentiality, non competition,
notice of leaving etc.
37

38. Termination pg 58
 Reasonable notice (if no just cause) by both employer
and employee
 Employer is required to give reasonable notice or pay
(severance) in lieu of notice
– may dismiss for any reason unless it violates
human rights legislation
 Reasonable notice standard set by –
– Employment Standards Act,
– The employment contract,
– Common law (similar precedent cases), or
– Collective agreement
38

39. Termination/2
 Just cause dismissal requires no notice.
 Dismissal without notice if –
– Incompetence or failure to perform (document,
warnings, don‟t approve behaviour)
– Misconduct – dishonesty, disrespect, conflict of
interest, sexual harassment etc
– Not – personality conflict
39

40. Termination/3
An employee discharged without
adequate notice can sue for wrongful
dismissal
An employee can leave without notice
when required to work in dangerous
conditions or when work involves
immoral or illegal activities
40

41. Termination/4
Constructive dismissal - employment
contract may be breached when nature of job
changes or working conditions become
intolerable.
Compensation based on reasonable notice,
lost benefits and pension rights
– Employee must mitigate losses
41

42. Employment Standards Code pg 60
Statutes designed to protect employees
by setting minimum standards for:
– safety
– Wages, hours of work, overtime,
– child labour
– Termination
– Penalties
– Just cause
42

43. Ee Notice to Employer
Less than 3 mos – nil
> 3 mos, < 2 yrs – one week
> 2 yrs – two weeks
43

44. Employer Notice to Ee pg 61
> 3 mos 1 week or pay in lieu
Two years or more 2 weeks
Four years or more 4 weeks
Six years or more 5 weeks
Eight years or more 6 weeks
Ten years or more 8 weeks
More like 3 weeks / yr is common in courts
44

45. Question for Discussion
A considerable amount of legislation in
the field of employment affects the
responsibilities of the parties.
Is this legislative intervention
detrimental to our economic system? Is
there any other justification for such
interference?
45

46. V Courts and Civil Procedure
should you sue? Pg 7
 cost
 evidence
 Chance of recovery
 Other options?
46

47. The Provincial Courts
All Canadian provinces have a four-tier court
system made up of the following:
 Provincial Court
 Court of Queens Bench
 Court of Appeal of Ab
 The Supreme Court of Canada, considered to
be the highest court in each province.
47

48. Limitation periods pg 8
2 yrs
10 yrs
other
48

49. Who to sue? Pg 8
Be careful
Corporation or individual?
49

50. What to sue for? Pg 9
Debt or damages (breach of contract)
Damages in tort actions
– Special
– General
– punitive
Other remedies
– Accounting
– Injunction
– Specific performance
50

51. Where to sue? Pg 9
Provincial court, small claims do on own
Fill in the blank forms
$100 fee
Court of Queens Bench mostly need a
lawyer, although it is possible to do it
yourself
51

52. Civil Court Process
P prepares Claim, filed, get docket no
P gets blank dispute note to serve on D along
with the Civil Claim
P, or someone hired serves D. P files affidavit
of service with Court
Wait 20 days
If D files Dispute Note, court may choose
52

53. Court Chooses pg 11
Compulsory mediation
Pre-trial conference
Trial
If D does not file Dispute Note, P can apply
for Default Judgement
53

54. Court of Queens Bench Trial Process
pg 11
 The person commencing the law suit, the
plaintiff, must file a Statement of Claim
and serve it on the defendant;
 The defendant must file a defence to the
claim;
 Documentary disclosure;
 The parties attend Discovery, pg 12
 Often a pretrial is held; and
 The matter is set down for trial.
54

55. The Trial pg 13
The trial is the culmination of the action:
 Plaintiff normally has the burden of proof
 Plaintiff calls witnesses to give evidence,
defendant can cross-examine
 Defendant may call witnesses, and plaintiff can
cross-examine
 Judge determines if evidence is admissible
 Counsel present arguments
 Judge (or jury) give decision
55

56. Enforcement pg 14
10 years to collect
Register judgment with clerk, file writ of
Enforcement with clerk, File writ with
PPSR, (personal property register)
Examination in aid of Enforcement
File writ with land titles
Garnishment of wages
Seizure of property
56

57. Question for Discussion
Consider the phrase, “justice delayed is
justice denied,” and apply it to the process
of civil litigation in Canada.
– Complex procedure of court adjudication
– Expense and delay because of an overburdened
court system
Do the process and the system serve or
defeat the ends of justice?
57

58. Alternative Dispute Resolution pg 17
Process for resolving disputes outside of the
courts
Main methods
– Negotiation
– Mediation
– Arbitration
58

59. Alternative Dispute Resolution/2
Advantages
– Parties of dispute maintain control of the solution
– Disputants determine and schedule resolution
processes
– Minimal costs associated with process
– Matters remain private
– Preserves good will
59

60. Alternative Dispute Resolution/3
Disadvantages
– Courts have more power to extract information
– Fair process cannot be ensured
– Decisions do not follow precedent
– Agreements may not be enforceable
– No public record of dispute or decision
60

61. Negotiation
– Parties discuss the problem with each other in
order to find a solution
– Process requires cooperation and compromise
• Good communication skills
– May be conducted through representatives
– Process may enhance relationship
– Agreement may not be legally binding
61

62. Mediation
– Neutral outsider helps party settle the dispute
– Communication facilitated by mediator
• Finds common ground
• Encourages concessions
– Mediator does not make decision
– Mediation sometimes required before court will
hear case
– Court may affirm mediated resolution
62

63. Mediation/2
– Not the process to use when there is an imbalance
of power or where blame or liability for injury
must be determined
– Parties must be willing to disclose information
– Can result in costs and still not resolve matter
63

64. Arbitration
– Parties agree on an independent third party to
make a decision that will be binding on
themselves
– Often required in contract
– Arbitrators are specialists in the matter under
dispute
– Procedure must be fair
– A decision will be made
64

65. – Decision of arbitrator is binding on the parties
– Decision cannot be appealed although procedure
may be reviewed by the courts
– Process is private, faster, less costly than
litigation, but more formal and more adversarial
than mediation
65

66. Question for Discussion
Consider the advantages and disadvantages of
alternative dispute resolution processes.
Would a business person benefit from using
such a process in a dispute over the delayed
delivery of material required in the
manufacturing process?
66

67. Civil law vs Criminal Law pg 18
Criminal law
– Protection of society
– Officers of the state
– Crown prosecutor
– Jail fines
Civil law
– Deals with disputes between parties
– Compensate wronged party
Burden of proof
67

68. VI Sole Proprietorships,
Corporations, Partnerships

69. Types
Sole Proprietorship - an individual carrying
on business alone
Partnership - two or more people carrying on
business together for the purpose of making a
profit
Corporation – an incorporated company that
is a legal entity separate from the people who
make it up.
69

70. Sole Proprietorship
An individual carrying on business alone
Must comply with government regulations
– avoid restricted/illegal activities
– meet zoning bylaws
– comply with workers compensation, employment
insurance and income tax regulations
 Easy to start up, simple, keep all profits
70

71. Sole Proprietorship pg 52
Limited capital
Taxed as individual
Unlimited liability
for debts
– Vicarious liability
for torts of
employees
71

72. Partnerships pg 52
Group of people carrying on business together
for the purpose of making a profit
Regulated by Partnership Act common to
common law provinces.
– Sets out circumstances that do not create a
partnership such as
• owning property in common
• sharing gross returns from business activity
72

73. Creation of Partnership
By Inadvertence - implied from conduct
– the finding of a partnership has serious financial
liability implications for partners
By Agreement - primarily a contractual
relationship - oral or written
– must contain all the elements of a contract
 Do not need to register
73

74. Partner as Agent
Partners are each agents of each other
– agency law applies to partners
– contracts made by a partner are binding on all the
partners
Vicarious liability - all partners are liable for
the tortious conduct of a partner or an
employee
74

75. Unlimited Liability
Partners‟ liability is not limited to the assets
of the partnership
– personal assets may be used to satisfy claims
against partnership
– third party can collect from any partner
Registration - failure to register where
required may increase liability
75

76. Rights and Obligations
Fiduciary Duty - a partner must act in best
interest of other partners:
– account for all profits
– not use partnership property for personal benefit
– cannot compete with partnership
– disclose all information and not use it for personal
gain
76

77. Rights and Obligations/2
Partnership Act governs partner
relationship:
– partners share profits equally
– expenses are reimbursed by partnership
– all partners have right to participate in
management
77

78. Rights and Obligations/3
– no right to salary or wages
– major changes must have unanimous agreement
– no right to assign their partnership status without
consent of all partners
– can be modified by contract
78

79. Advantages of Sole Prop
Easy to set up
Requirements of unanimous consent protects minority partners
Easy to dissolve
79

80. Disadvantages
Taxes
Unlimited personal liability
80

81. Limited Partnerships
Limited partners are liable only to the extent
of their investment
– must follow provisions set out in the Act
– to avoid risk of being considered a general
partner
• should register as limited partner
• refrain from participating in decision-making
81

82. LLP Partnerships
Several provinces not permit limited liability
partnerships
Available for professions
A partner is not personally liable for conduct
of other employees or partners
Must be registered and include LLP in name
82

83. Vicarious Liability
 When agent is  Where Fraud or
employee, principal negligent
may be vicariously misstatement is
liable for agent‟s involved, principal
tortious conduct may be liable even
where the agent is
not an employee
83

84. Corporations

85. Separate Legal Entity
Incorporation creates a distinct legal entity
separate from the people who make it up.
– Isolates shareholders from business activity
– limits liability of shareholders and directors
– provides flexibility for investors to buy and sell
shares
– courts may “lift corporate veil” to get at managers
who commit crimes or avoid regulations
85

86. Question for Discussion
Because a corporation is a separate legal
entity, the shareholders (and that may be a
single individual) are protected from
liability to the creditors and may in fact be
secured creditors as well.
Is it reasonable to give them priority over
other creditors if it is their actions that have
caused the company to go into debt?
86

87. Capacity
All methods of incorporation now provide
for corporations to have all the capacity of
a natural person
– Power to contract may be limited in certain
situations specified in the legislation
87

88. External Obligations
Directors/Managers
Duties imposed by statute
– Directors may be personally liable for :
• unpaid wages
• breaches of company employment standards
• unpaid taxes
• damage to the
environment
88

89. Officers and Senior Executives
Responsible for day-to-day management
– fiduciary duty
– duties of care and competence
– Statutorily imposed duties similar to those of
directors
– Sarbanes Oxley US
89

90. Advantages of Incorporation
Limited Liability
– unless directors/officers give personal
guarantees for loans
– or courts “lift corporate veil” and hold
principals liable for company‟s obligations
– shareholders protected from claims against
the corporation
90

91. Advantages/2
Tax advantages may be gained through
incorporation
Succession and Transferability
– continues to exist after death of a
shareholder
– shares can be transferred at will
91

92. Advantages/3
Shareholders owe no duty to the
company
Shareholders elect directors who appoint
managers so are removed from day-to-
day operation of company
92

93. Disadvantages
Major changes in company structure or
purpose must be reflected in incorporation
documents
position of minority shareholder is weak
Somewhat more expensive way to operate a
business
93

94. Termination of Corporation
Dissolution of a company can take place in
a number of ways.
– Winding up provisions in incorporation
documents
– voluntarily by the directors
– involuntarily by a creditor
– failure to file annual report
94

95. Trade Secrets
Confidential information that creates a
competitive advantage
– information must be valuable to the business
– not commonly known or readily available
– disclosure may be prohibited by contract in a
restrictive covenant
– non-disclosure agreement protects employer
95

96. Remedies
Plaintiff must show that the disclosure of
information has caused harm
Remedies - injunction, damages - general and
punitive, accounting
– contract may provide remedies for breach
– claims in tort - trade slander, invasion of privacy
– Criminal Code - theft, fraud, mischief
96

97. Implications for Tort Law
 Defamation
 On-line publication is considered broadcasting and
therefore an offence can be treated as libel
 No intervention to exert controls on what is
published on email or in a chat room
 Identification of perpetrator
 Determining the appropriate jurisdiction in which
to sue
 Obligations of Internet Service Providers
97

98. Employer Concerns
– Employer should have policies in place to
monitor and restrict employee use of internet
– Opportunity and means for employees to interfere
with company data
– Employer may be vicariously liable for
defamation by employee
98

99. Question for Discussion
Employees leaving their jobs may be
restricted from using the information they
have gained in another job, restricting their
chances of new employment.
What social and public policy issues are
associated with these kinds of employment
restrictions?
99

100. Ec Dev and Joint Venture
Strategies for
Aboriginal Development
NAIT
Workshop April 1, 2006
100

101. Agenda
 Some Myths
 Harvard Project
 What is needed for
success
 Success Stories
 Your Questions
101

102. Some Myths about
Aboriginal Workers
 They are rural
 They are uneducated
 They are economically
insignificant
 Numbers are small
 They are unwilling to
work
102

103. Rural Myth Shattered
Most are within one hour
of urban centre!
103

104. Myth: Few
First Nations
people are
educated
104

105. Myth: Aboriginal people have little
purchasing power
Tripled 91 to
96
From $4.5B
to $11.35 B
Land claims –
25% of Canada
total area
105

106. Myth:
Aboriginal
population is
small in
numbers
106

107. Saskatchewan
Population Pyramid, 1996 (%)
65 +
55-64
Non-Aboriginal
45-54
35-44
25-34
20-24
15-19 Aboriginal
10-14
5-9
0-4
-10.0 -8.0 -6.0 -4.0 -2.0 0.0 2.0 4.0 6.0 8.0 10.0
Source: W Weir U Sask 107

108. Growth of Saskatchewan Aboriginal
Population (1995 - 2045)
 The Aboriginal Saskatchewan Aboriginal Population
Population in Growth
Saskatchewan is Aboriginal
projected to increase 500
over the next fifty years
400
Population (ooo's)
from 135,000 1995 to 300
434,000 people in 2045
200
100
0
1995
2015
2045
Year
Source: W Weir U Sask
108

109. Saskatchewan Population 1995 to 2045
Percentage of Aboriginal and Non-Aboriginal
By the year 2045, People in Saskatchewan
Aboriginal People will
make up approximately 100%
ONE THIRD (32.5%) of
Percent of Population
80% Non-
Saskatchewan's 86.7 Aboriginal
60% 80.0 Aboriginal
population compared to 67.5
approximately one tenth 40%
(13.3%) in 1995 20% 32.5
13.3 20.0
0%
1995
2015
2045
Year
Source: W Weir U Sask
109

110. Age Distribution of Sask Pop
Age Distributions in 2003  The older end of the “baby
20,000 boom” generation is
Canada already contemplating
18,000 equivalent retirement. (The average
16,000 age of retirement in
Canada is now 60 years.)
14,000
 The “echo” in is relatively
12,000 large compared with
10,000
Canada as a whole because
of the Aboriginal
8,000 Echo population.
Boom
6,000  There is Saskatchewan‟s
competitive advantage -
4,000
Bust the presence of a large
2,000 potential labour force - to
mitigate the effects of a
0
0 4 8 12 16 20 24 28 32 36 40 44 48 52 56 60 64 68 72 76 80
shortage caused by retiring
Source: Labour Market Trends Report www.sasked.gov.sk.ca
boomers.
110

111. The Challenge
 Aboriginal working age
population of 600,000
 unemployment rate of
70%
 Huge opportunities to
create jobs to solve this
problem
111

112. Harvard Project
 Founded by Professors Stephen Cornell and
Joseph P Kalt at Harvard University in 1987
 Through research and service, the goal is to
understand and foster the conditions which
will sustain social & economic development
in Ab communities
 Research shows Ab communities with
autonomy and control have far greater
success of the resources they want to
develop to obtain self-government.
112

113. Researched Success Stories
White Mountain Apache (east central region
of Arizona)
Operates 9 tribally owned enterprises
including a ski resort with 9M/yr in
revenues
Sawmill with 95% Apache employees
Official unemployment rate is 11% vs
national rate of 45%
113

114. Success Stories
Mississippi Choctaw (East Central Mississippi)
2nd largest employer in the US employing 100%
tribal members and creating jobs for thousands of
non-native workers
Plastics/electronics manufacturing, automobile
assembly, American Greeting Cards, construction
and golf resort, casino & other projects generate
12K jobs & 170M in annual wages
As a result of economic ventures, the tribe now
invests in cultural heritage such as language
See Video, for copy contact Choctaw, or Hylton
114

115. THE DEVELOPMENT GAMBLE
The odds are not promising
The required effort is
tremendous
The results are at best,
uncertain
And look at all the obstacles
FNs communities
face…..
115

116. Obstacles
 Lack of financial or human capital
 Lack of natural resources or lack of
sufficient control over them
 Lack of capable governing institutions
 Non-Indian outsiders control or confound
tribal decision-making
 Aboriginal culture gets in the way
116

117. Obstacles
 Communiy savings rates are low
 Entrepreneurial skills scarce
 management techniques won't work in
communities
 cannot persuade investors to locate on reserves
because of intense competition from outside
communities
 Federal and provincial policies are
counterproductive and/or discriminatory
117

118. Obstacles
 unworkable and/or externally imposed
systems of government
 politicians & bureaucrats are inept or corrupt
 Factionalism destroys stability in nations
decisions
 The instability or lack of governance &
political institutions keeps outsiders from
investing
118

119. Obstacles
 The long-term effects of racism have
undermined self-confidence
 Alcoholism and other social problems are
destroying human capital
 Reserves are disadvantaged by their distance
from markets and the high costs of
transportation
 Any other obstacles you can think of?
119

120. What do you need for success?
The first is political control
 The power to make decisions about your own
future
The second is institutions
 Effectively exercise control
The third factor is a good ec dev strategy
 Choose policies and specific development
projects to pursue
120

121. For success also need HR
Job descriptions
Org chart
Corporate strategy
Compensation plan
Training
121

122. Development Choices
 collective Enterprise or JV
 Private Enterprise with Member
Ownership
 Private Enterprise with outside Control
 Any other choices?
122

123. DEVELOPMENT ACTIVITY
These projects range from chopstick
factories to casinos, hazardous waste
facilities to resort hotels to golf courses …
123

124. Ec Dev Example
Community Goal Performance
Objective is to: Last year we met our objectives in the following
 increaseemployment ways:
 increase in # of members working, as a % of
 increase # of businesses
available workforce
 access new investment  4 new businesses
 sustain existing jobs where appropriate  supported 8 local businesses to get access to new
 support young people to develop business skills investment
 increase in jobs in forestry sector
 youth skills training program launched
Employment Rate Analysis
# members available to work has increased:
People
50
employed as a  growth of community population
40 percentage of  social assistance recipients have upgraded
30
available their skills and are now looking for work
workforce
20 increased from
10 31% in 1996 to A major barrier is accessing capital investment
40% in 1999. to expand existing businesses, and to create
0
1996 1997 1998 1999 new ones.
124

125. Training is Key
Trades
– Carpenters
– Electricians
– Iron Workers
– Millwrights
– Plumbers / Pipefitters
– Heavy Duty Mechanics
Require 4 – 6 years of training and on the job
experience
125

126. Support Occupations
– Clerical
– Catering
– Labourer
– Security
– Maintenance
– Marketing
Require up to 2 years of training and
on the job work experience
126

127. 5 Year Plan
2005 2006-8 2009-10
New phases or current project or
commence new project
Expand or reorient project
- New strategy
Commence project Implementation
Financing Period of seeking
Project or business plan including partners, Stakeholders
& co-sponsors.
human resource training and strategy
Foster assets and expertise to
exploit good development idea Period of learning,
understanding and
Support of community assessing internal
and external
Political control strengths
127

128. Ec Dev Success
Piikani First Nation – Wind Turbine Project
“WeatherDancer 1”
Alexis First Nation – Construction Co
Tourism Venture – Tsuu T‟ina
128

129. Success # 1:
Piikani (Peigan) Nation
Wind Turbine Project
“Weather Dancer 1”
Piikani Initial Vision: Construct a
100MW wind farm to harness power of
the wind to generate green electricity
In 1980, the Piikani FN was
approached by Shinook Projects Inc. to
develop a 9.9 MW wind power project in
partnership
129

130. First Attempt
First Step:
 Environmental assessment as well as approach
local utilities to invest in the project
 A total of five (5) different Business cases were
developed, to justify the economics of the project
and secure joint venture partners
130

131. Second Attempt
 In 1995, the Piikani Nation was encouraged to
make a second attempt to successfully attain the
Initial Vision
 Entailed seeking partners, searching for the best
approach and developing a network of contacts in
the fields of renewable energy/wind generation
 Discussions with Advanced Thermo Dynamics
(affiliated with Batchewana FN, Ontario) who
marketed Nordex turbines & NEG MICON a
Danish Turbine Manufacturer
131

132. Choosing the site
 Local site-specific wind data was needed in
order to choose optimum site
 Several anemometers were installed on
reserve to collect data on wind speeds at
various locations
 First site chosen was located on land
designated to an individual band member,
as a result, a second site was located on
community owned land
132

133. Finding a Partner
 At the time, 50% of the development costs of
renewable energy was tax deductible
 Piikani entered into a Joint Venture
Partnership with EPCOR who was able to
capitalize on tax incentives
 Piikani FN provided the land and the location,
EPCOR provided the financial assistance
 Piikani FN formed the Piikani Utilities Corp. in
order to move ahead with projects and joint
venture partners
133

134. Joint Venture Partnership
 Piikani FN administered an opinion survey to over
280 nation members to gain support of project
prior to initializing plans with ongoing public
consultation
 Partnership had to ensure employment
opportunities with Piikani FN, 10 FN members
employed during construction phase of project
 Partnership also included training of 2 FN
members who were trained in Denmark on the
turbine, maintenance and development of future
sites
134

135. Technology & Project Costs
 A 900 kW MICON wind turbine from
Denmark was selected
 The wind turbine tower stands 72 meters
high with installation area of 24 sq meters
 20 yr contract with EPCOR who is to
purchase 80% of power produced
 Remaining 20% is to be sold to the regional
power pool at market prices
135

136. Success
 Ribbon Cutting Ceremony October 2002
 Piikani Nation to construct future wind farm
with 3 additional turbines
 Piikani Utilities Corp to buy back the
transmission line which will improve the
asset base and allow the Corporation to
charge a distribution tariff
 Also looking at selling a portion of the
electricity directly to homes in the community
136

137. Weather Dancer 1
Chief Strikes With a Gun &
William Big Bull
137

138. Success #2
The Alexis First Nation # 133 is located
on the shores of Lac Ste. Anne, in
Alberta. The Band has other reserve
lands in Whitecourt, Cardinal River near
Jasper National Park, and Elk River
Crossing in the foothills of Jasper
138

139. 139

140. Alexis Band Profile
There are approximately 1400 Alexis
Band Members, of which 800 members
reside on reserve # 133. There are 600
members residing off reserve to pursue
higher education or employment
There is a high youth population
between the ages of 16 to 30, which
comprises about 45% of their population
140

141. Nakoda Construction Co
Oil field construction business in
operation for 2 years. The business is
run like a temp agency with 5 or 6
permanent employees and
approximately 30 to 40 temporary
finding work in the oil field for bands
members
The employee base is predominantly
from Tsuu T’ina or Alexis Nakota Sioux
Nation
141

142. Mission Statement
NCL was established to initiate the participation
of the Nation within the Construction industry.
Our company is mandated to pursue the
principle of self-reliance by promoting the
core values of our peoples and Nation.
We believe that partnerships are integral to
accomplishing our goal of building a profitable
company, and pursue when feasible
partnerships that benefit all parties involved.
Returning customers is our ultimate goal.
142

143. Day Rates
Foreman (with 4x4 & cell) $500
Supervisor On Site $40 / hour
Labour $35 / hour
Environment Impact Liaison (with 4x4 pick up / cell)
$300
Professional Fees $1,000
Meals, Incidentals, Travel $150
Subsistence $125
143

144. Nakoda
Co does not discriminate so will certainly
hire outside the band
Last year they made around $1.5 M and
recently received a grant for equipment
from INAC
www.alexisnakotasioux.com
144

145. 145

146. Success #3
Aboriginal Tourism
Model for development
Era of eco tourism has arrived
Europeans are hungry for Ab experience
Abs usually have good supply of beautiful
lands, traditions to share
Environmentally friendly
Spiritual issues?
146

147. Piikani
Piikani
Kainaiw
Kainaiw a
a
147

148. Rebirth of the
Residential School
148

149. Deeper Meaning
We were continually guided by the vision of
one of our elders, Mary Paul, who said in „94
“it was within the St. Eugene Mission
that the culture of the Kootenay
Indian was taken away, and it should
be within that building that it's
returned”
149

150. St Eugene Mission
Near Cranbrook
Chief Sophie Pierre
Partnership between a Delta Hotel, and the
Ktunaxa Nation who had the location, valued
heritage landmark, history and cultural
features
150

151. Transformed to Hotel & Conf Centre
151

152. Delta Hotels built and operated a separate
125-room hotel, casino and conference
centre opened in May 2002
Went Bankrupt in 2004
Resurrected in 2005
152

153. Tsuu T’ina Tourism Efforts
 In Kelowna FN‟s have a 18 hole Stan
Leonard designed course with adjoining
condos
 In the early 70's Chief and Council from Tsuu
T‟ina visited Kelowna and learned how FNs
have used golf courses for ec dev
153

154. Other Tsuu T’ina Efforts
 Ordinance (Explosives) Removal
 Ordinance (Explosives) Removal creates 80 jobs
– April to Oct.
 Nation has 6 members trained at the highest level
of bomb removal
 Sent to Kosovo for mine removal
154

155. Tsuu T’ina Efforts
 Golf course employs 10 FT and 20 PT FNs
 Created careers for several FNs
3 of whom are now certified greens keepers
2 are now Pros
155

156. Tsuu T’ina Efforts
Planned casino and hotel
Will create 500 jobs initially
Many more in the future
156

157. Summary
 Harvard Project
– Development is a huge gamble
– Countless Obstacles
 Key Ingredients
– Vision
– Political control
– Assets
– Development Strategy
157

158. Information Sources
 http://www.ksg.harvard.edu/hpaied/pubs/p
ub_120.htm
 Professors Stephen Cornell and Joseph P. Kalt
 Tembec Corporate Communication
 Statistics Canada
158

159. Our offer to you
Please call if you have any HR, or workplace
issue that you are overwhelmed with
We can help you
We also are pleased to do Free Workshops for
your organization (some limits apply) Let us
know what your needs are and we will make it
happen!
159

160. CG Hylton - Services
 HR Consulting  Benefits, Pensions,
 Job Descriptions EAP
 Salary Grids  Strategic Planning
 Wellness at Work  Drug and Alcohol
programs
 Staff Morale
 Dept re-orgs
 Training and
Workshops  Leadership
compensation
Tel 403 264 5288
chris@hylton.ca
160