Facility Operating & Service Agreements
If you are considering entering into an agreement with the
Government of Alberta (the Province) for facility operation or
service delivery, this provides information and guides you through
the contract process.
To be considered eligible to enter into an agreement with the
Province, the following minimum requirements apply.
- Proof of coverage is required before start up.
- The minimum requirements are defined in Schedule "D". The
sample below is from the Facility Operating Agreement document.
The General Liability and Automobile Liability Insurance
requirements are the same for Service Agreements.
The Operator shall
- insure its operations under a contract of General Liability in
an amount not less than $2,000,000 per occurrence, insuring against
bodily injury, personal injury and property damage including loss
of use thereof. Such insurance shall include non-owned
automobile liability, tenant's/occupier's legal liability
and extend to include loss or damage to the Premises and/or
Equipment in Appendix B in the care, custody and control of the
Operator; providing such damage arises from the Operator's
- maintain Automobile Liability Insurance on all vehicles owned,
operated or licensed in the name of the Operator in an amount not
less than $1,000,000;
- maintain "All Risks" property insurance on all property owned
by the Operator;
- ensure that the policy of insurance required in (a) and (c)
above is endorsed to provide the Province with 30 day advance
written notice of cancellation; and,
- provide evidence satisfactory to the Province of all required
insurance prior to the commencement of this Agreement and annually
thereafter. On request the Operator shall promptly provide the
Province with a certified true copy of each policy.
- All other insurance requirements may vary depending on the
- Schedule "D" can be taken to a private insurer to obtain a
Workers Compensation Board (WCB) Coverage
- WCB coverage is a standard industry
- Proof of coverage is required before start-up.
Guarantee of Performance
- Operators/contractors must perform their contracted services to
a predetermined standard. Failure to meet these standards may
result in a penalty or "debt."
- An operator/contractor must provide a performance security
deposit at the time an agreement is signed. This is like
a damage deposit for an apartment rental.
- The deposit assures the means to pay any penalties or "debt" to
- The performance security deposit required is
- A minimum of 10% of the total value of the agreement or
- An amount determined by the Province.
- A safety plan is required to ensure the safety of the
public, the operator/contractor and employees.
- This document identifies how emergencies will be dealt with,
contact information, and how all tasks will be performed
- There may be some start-up costs related to Occupational Health and
Safety requirements. Examples include purchase of personal
protective equipment or first aid training for employees.
- A Certificate of Recognition (COR) meets
this requirement as it includes a safety plan. A COR is
awarded to employers who develop health and safety programs that
meet established standards. Note that a COR is not required to bid
on park operations opportunities. However, if an
operator/contractor has a COR, it covers the required safety
"Seed Money" Considerations
- "Seed money" is generally required to cover the time
between incurring expenses and generating revenue. This
depends on a number of factors including the size of the park or
campground and the complexity of the services offered.
- Expenses that may be incurred before the operating season
begins include wages, spring cleaning costs, and purchase of
firewood and supplies.
All agreement and contract opportunities with Alberta
Tourism, Parks & Recreation are advertised on the Alberta
Purchasing Connection. Sign on as a Vendor. Use "Search
Opportunities" with keyword "park" or "parks."
The bidding process is open to all eligible individuals and
organizations. All bid packages are compared against each
other and the mandatory requirements.
- The Province is looking for the best value for the services
- The lowest bid will not necessarily be accepted.
- The Province also conducts a cost-benefit analysis to
determine cost-effectiveness of in-house delivery of the same
If you are already signed up as a Vendor on
the Alberta Purchasing Connection, the Commodity
Codes utilized for Facility Operating Agreements are
- K107A - Landscaping and Horticultural Services
- M1 - Operation of Government Owned Facilities
- M2 - Operation of Government Owned Facilities (Non
- R119L - Facility Operations Service
Types of Agreements
The Province uses two types of contracts for park
Facility Operating Agreement (FOA)
- A Facility Operating Agreement is to operate and maintain
specific facility areas of a park on behalf of the
Province (e.g. campground, day use area, boat launch).
- This includes
- Collecting fees
- Completing administration processes
- Performing all maintenance duties to government standards
- Fulfilling basic levels of security duties for the public,
- Providing services as required to ensure a safe and clean
environment for "happy campers."
- A FOA operator retains
- Camping fees net of any government imposed levies and
- Any other money collected on site.
- This money retained by the operator is expected to cover all
their expenses and generate a profit. Generally, the Province makes
no payment to the operator.
- Service agreements vary in size and complexity.
- Where the Province operates the park facilities, service
agreements may be used for private contractors to
provide specific maintenance tasks.
- The Province advertises for potential bidders to complete
specific tasks to a given standard. Some examples are grass
cutting or building cleaning.
- The Province pays a specific fee for the contracted
Process for Facility
Operating Agreements and Service Agreements
- All agreement and contract opportunities are advertised on
the Alberta Purchasing Connection.
- Advertising in local, large city, or out of province
media (like newspapers) is determined by the:
- Estimated value of the agreement and
- Likelihood of making contact with an appropriate person or
Bid Proposal Packages
- Potential bidders can purchase a bid proposal package from the
location indicated in the advertisement.
- The bid proposal package and associated information can be
downloaded for free on the Alberta
- These packages are meant to enable the Province to receive
viable and competitive bids for the services required. The
package information includes a
- Map of the facilities in question
- Summary of previous revenue and costs, and
- Sample agreement.
- To make a bid, complete the forms for all aspects of the
- Contact information
- References and
- Other information that constitutes your proposal.
Information Sessions and Site Tour
- Information sessions provide potential bidders an opportunity
- Meet the Province's representative and
- Learn about the bid package.
- A tour of the park and facilities is conducted if weather and
access conditions permit.
Submission of Bid Proposal Package
- The bid submission deadline is clearly identified in the
advertisement. The date can be confirmed at the information
- Failure to meet the deadlines makes a bid invalid.
- Bid openings are public events.
- Once all of the bid proposals are received, they are reviewed
by a panel consisting of
- Government employees from Alberta Tourism, Parks &
- Independent reviewers (if applicable), selected from other
government departments or the local community.
- A bid proponent may be requested to attend an interview to
clarify and confirm information in their proposal.
- After the review panel completes interviews and assessment of
the bid packages, an offer is made to the successful
- Throughout the term of the agreement, the Province's
- Meets with the operator/contractor at regular intervals
- Completes inspections of the facilities and
- Collects all applicable administrative paperwork.
- The Province expects the park to be operated and
maintained to service standards set out in the agreement.
- At the end of the agreement period, a final inspection is
completed. If there are no account arrears or outstanding
operational or administrative issues, the performance security
deposit is returned to the operator/contractor.
To assess an applicant's eligibility and viability to enter into
an agreement, information is requested on
- Past experience with this type of work, and
- Contact and personal information.
We collect and use this information in accordance with
the Freedom of Information and Protection of Privacy
Act. The act is available online through the Queen's Printer.
Contact Anita Schmidt by
- Phoning 780-427-3155. To be connected toll-free in
Alberta, dial 310-0000 followed by 780-427-3155.
- Email email@example.com