Madam Chairman, by way of background perhaps I could offer a bit more explanation.
In November 1999 the auditor general tabled a report on the use of advance contract award notices, otherwise known as ACANs. The more significant observations made by the auditor general included the following: that there was in her view no independent review of challenges to ACANs; there was a lack of justification for posting of ACANs; there was a lack of information contained in ACANs; and ACANs were often not posted for the required 15 days. Those were the observations back in November 1999.
The auditor general's report was the subject of a series of meetings by the Standing Committee on Public Accounts. The committee reported similar observations and criticisms about the ACAN system as those referred to by the auditor general. It made a couple of recommendations that in fact went beyond the observations of the auditor general.
In any event, following the tabling of the auditor general's report back in November 1999, an interdepartmental working group chaired by the Treasury Board Secretariat and of course involving my department was formed to address the various issues the auditor general had raised about ACANs.
As a result of that process, guidelines were prepared. They were subsequently published in November 2000. This information has been broadly circulated throughout the government to all procurement officers, noting the key points and the way in which this policy is evolving and changing over time.
We are obviously anxious to ensure that ACANs are fair and reasonable, that they are handled properly within the system, that they enhance a competitive system. I think the statistics bear that out.
As I mentioned earlier, the statistics we have for 2001 would indicate that there were in that year 3,311 ACANs issued. About 10% of them were challenged, that is 323. So the vast majority were not challenged, even though the opportunity to challenge was there. Of those that were challenged, 76 were found to be cases where the challenge was valid and in 76% of those cases they proceeded to a formal tendering process.
As the hon. member mentioned in his question, the ACAN system provides the opportunity for competition. In the statistics I have cited that opportunity seems to be a legitimate one.
I would point out that there is now a minimum requirement of a posting of 15 calendar days so that everyone has a full and fair opportunity to know that the notice is out there and has the ability to respond within that time frame.
I would also point out, contrary to some assertions that were made earlier tonight, we have put measures in place to provide an independent review of the statements of capabilities that come in to make sure it is not the same person sitting as judge and jury on the appeal, that there is in fact due process and fairness. Sometimes it will be totally different officials from the first officials that looked at the case. Sometimes it will be independent third party fairness advisors from outside the government.
We understand the concerns that were expressed by the auditor general. We are trying very hard to make sure that the ACAN system is not a way to circumvent competition, but a means to complement competition and make sure that the system is transparent and fair.