REQUEST FOR QUOTE # 39NN11DR

Disposal/Destruction of Canvas Mailbags

1.0 Invitation to Respond

Canada Post is looking for suppliers potentially capable of supplying Canada Post's needs in
support of the information requested in this "RFQ". You are invited to submit a response to
Canada Post, as described in the attached documentation.

2.0 Confidential Information

All information pertaining to Canada Post, its systems, and operating procedures received by you
from Canada Post including, but not limited to, all information contained in this RFQ constitutes
confidential information of Canada Post and is the sole property of Canada Post. You may not use
or disclose any such information for any purpose other than the preparation of your response.

3.0 Security Requirements (Mandatory)

The bidders are to be asked to complete the Request for PSOS form attached (if it has not already
been previously completed + submitted) at time of bid submission.

PSOS form with storage requirements to be completed and submitted as part of bid

Before contract award, potential Contractor will have needed to obtain DOS (unless otherwise
agreed to by S&IS).

Before contract start date, all individuals having access to the corporation assets will have obtained
Reliability Status level clearance (unless otherwise agreed to by S&IS). Due diligence measures
will be considered or alternate methods of clearing the individuals (in-house) will be used if not
complete.

4.0 Proposal Communications & Proposal Contracting Authority

For the purpose of requesting clarification, submission of bids or for any other purpose relating to
this RFQ, Proposers are to contact only the individual in authority for this RFQ (the “Contracting
Authority”) below:
David Robertson
Manager, National Contracting
Canada Post Corporation
2701 Riverside Dr, Suite N0760
Ottawa ON K1A 0B1
Tel: (613) 734-3018
E-mail: David.robertson@canadapost.ca

All communication concerning this RFQ is to be in writing and marked with the RFQ number and
may be sent to the Contracting Authority by e-mail at the above noted e-mail address. The
Corporation will not be responsible for the delivery of any communication. The Corporation
recommends the Proposer confirm receipt of all communications with the Contracting Authority.

In addition all questions will be formally responded to by e-mail and all Proposers will receive a
copy of all questions and all responses.

5.0 Cost of Submission Preparation

Nothing in this RFQ, receipt by Canada Post of a response thereto, or subsequent samples or
negotiations by Canada Post of terms of a contract to provide the goods or services shall in any
way impose a legal obligation on Canada Post to make any purchase from you or any obligation to
reimburse you or to pay you compensation for costs incurred in preparation of the response to this
RFQ or negotiation of a proposed contract except to the extent that such obligation is contained in
the formal written contract containing terms and conditions satisfactory to Canada Post and
executed by you and Canada Post.

6.0 Process Timeline

The following is the targeted timeline for this RFQ process:

Timeline Target
RFQ Issue Date June 7th, 2011
Deadline for Receipt of Questions June 14, 2011
RFQ Closing Date and Time June 17, 2011 @ 2:00 pm EST
Final Contract / Purchase Order Approval To be issued in 2011

7.0 Statement of Requirements

Canada Post has a requirement for the destruction and disposal of canvas mailbags, as identified in
the Statement of Requirements in this RFQ. This is a one time requirement.

Canada Post will require a single point of contact to manage and deliver the services. Prior to an
Agreement the delineation of responsibility within the Proposer’s organization shall be clearly
defined. To ensure all obligations are met, the Proposer shall appoint a project manager who shall
have the authority, responsibility and knowledge of the day-to-day activities under a proposed
Agreement.

No Obligation to Purchase

Nothing in this RFQ, receipt by the Corporation of a response to this RFQ, or subsequent
negotiations by the Corporation of terms of a contract to supply, shall in any way impose a legal
obligation on the Corporation to make any purchase from any Proposer. Proposals and samples
submitted will not be returned to the proposers.

The intention is to enter into agreements for the destruction and disposal of the canvas mailbags.
This RFQ will be awarded on best price submitted by the individual Proposers.

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Statement of Requirements

Scope: The complete destruction of approximately 100k to 250k canvas bags including metal tag and
grommets ( 400 to 1,000 monotainers filled with bags). The waste material can be recycled or sent to
landfill after the destruction. A sample bag can be provided upon request from supplier.

Includes but not limited to burning, shredding, or some other method of destruction. (Ideally we
wish to avoid landfill if at all possible)

Destruction rate: The destruction can begin as early as November 2011, but should not progress
longer than 14 months provided the Corporation supplies the bags in a timely manner.

Supplier must provide a detailed schedule of weekly destruction capability (i.e. number of 53’
trailers per week), if a staggered supply of material by Canada Post is required and maintained.

We will be co-ordinating and consolidating all operational bags throughout Canada to return to the
National Empty Container Facility (NECF), from which location they would be forwarded to the
supplier’s facility for disposal/destruction. We would like the suppliers to take this into
consideration when quoting. We will more than likely need to “stagger” shipments and as well
would like to begin the disposal destruction November of this year and ending no later than
December 31 2012.

Start of work: The tentative start of destruction is November 2011; however the actual date will
be mutually confirmed and agreed to by both of the parties.

Packaging/Transportation

Presently all bags are warehoused at the Canada Post NECF

102-425 Courtneypark Drive West
Mississauga Ontario
L5W 0E4

The intention is to distribute for destruction all of the mailbags from this location.

Presently all mailbags are packaged in metal “Monotainers” roughly 250 bags per Monotainer
• A 53’ trailer double-stacked with monos carries 52 monotainers or 13,000 bags
• Each Monotainer individually packaged with 250 bags holds approximately 40’cubic feet
• Each Monotainer can collapse for return transport

Canada Post may choose an alternative packaging option, if required or if more cost effective.

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 Monotainer
Specification

Canada Post is able to provide transportation but will entertain quotes for this aspect of the
process, which may or may not be accepted, depending on prices and/or Contractors’ operational
requirements

When quoting a cost for transportation, the Contractor shall be responsible for all costs incurred in
the transportation and delivery of Product to its facility and return of monotainers to the NECF.

We would like to have Transportation quoted separately regardless of method of

destruction/disposal being utilised.

Certificate of Destruction:

CPC will require a certificate of destruction. We will confirm with the successful supplier how we
want the information presented – either total weight or total number of containers.

8.0 Service Capability

a) The Proposer is to demonstrate its ability to supply services required.

b) The processing time from receipt of order to shipping and complete destruction of all materials
shall not exceed 14 months after commencement of destruction.

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9.0 Pricing

Proposals that meet the requirements outlined in this RFQ will have their pricing reviewed.
All pricing is to be quoted in Canadian dollars delivered including freight and taxes.
Payment terms will be Net 30 Days from receipt of valid invoice.

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10 Canada Post Group of Companies

It is possible that other members of The Canada Post Group (CPG) may wish to procure goods
from the Proposer(s) under the same or similar terms and conditions.

Members of The Canada Post Group (CPG) are:

Innovapost; Purolator; SCI Logistics Inc.

11 Copy of Sample Agreement

Attached is a Sample Agreement that will be used upon awarding the requirement.