Court Awards Damages for Flawed Evaluation

By Paul Emanuelli

In its November 2017 decision in Mega Reporting Inc. v. Yukon, the Supreme Court of Yukon found the government liable for conducting a flawed evaluation. The case dealt with an RFP for transcription services. The plaintiff submitted the low bid but its bid was rejected for failing to meet minimum technical requirements. The court found that the government failed to keep proper contemporaneous evaluation records. While one member of the evaluation committee kept handwritten notes on the complainant’s proposal, those notes failed to explain why the proposal was rejected. The court ordered $336 000 (CAD) in lost profit damages notwithstanding the liability disclaimer in the RFP.