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Request For Proposal (RFP) For:

PRINCE RUPERT (BC) & HAIDA GWAII LTL/WAREHOUSING

RFP TS474BE051112

May 11, 2012

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Table of Contents

Section 1.0 Overview and Procedures .................................................................................................. 3 1.1 Objectives of this RFP ............................................................................................ 3 1.2 Participating Members of the Canada Post Group of Companies .......................... 3 1.3 Definitions............................................................................................................... 5 1.4 Proposal Preparation Instructions and Submission Requirements.......................... 7 1.5 RFP Timetable ........................................................................................................ 9 1.6 Proposal Communications & Proposal Contracting Authority............................... 9 1.7 Right to Amendments or Withdrawal of Proposal by Proposer ........................... 10 Section 2.0 Rights of the Corporation and Additional Information................................................ 10 2.1 The Corporations Rights...................................................................................... 10 2.2 Additional Information, Clarification and Addenda............................................. 11 2.3 Pre-Proposal Conference ...................................................................................... 13 2.4 Disqualification of Proposals on Grounds of Faulty Submission......................... 13 2.5 Proposer's Ingenuity and Innovation..................................................................... 13 2.6 Pricing and Value Analysis Considerations.......................................................... 14 2.7 Costs Incurred By Proposers................................................................................. 14 2.8 No Obligation to Purchase .................................................................................... 14 2.9 Contract Award..................................................................................................... 14 2.10 Litigation............................................................................................................... 15 2.11 Entire RFP............................................................................................................. 15 2.12 Ownership ............................................................................................................. 15 Section 3.0 Evaluation and Selection Process .................................................................................... 16 3.1 Objective: .............................................................................................................. 16 3.2 Evaluation Team: .................................................................................................. 16 3.3 Evaluation Methodology....................................................................................... 16 3.4 Evaluation Stages.................................................................................................. 16 Section 4.0 Mandatory Requirements ................................................................................................ 19 4.1 Signed Offer to Supply ......................................................................................... 19 4.2 Security Requirements .......................................................................................... 19 4.3 Other Mandatory Requirements............................................................................ 19 Section 5.0 Rated Requirements ......................................................................................................... 20 5.1 Qualifications Questionnaire ................................................................................ 20 5.2 Terms and Conditions (Not rated) ....................................................................... 20 5.3 Security .................................................................................................................. 20 5.4 Pricing .................................................................................................................... 20 Attachment 1: Statement of Requirements .................................................................. 21 (a) Schedule A Canada Post ................................................................................... 21 (b) Schedule A - Purolator Inc. ................................................................................. 21 Attachment 2(a): Canada Post Terms and Conditions................................................... 21 Attachment 2(b): Purolator Terms and Conditions........................................................ 21 Attachment 3: Pricing Table Schedule B ............................................................... 22 Attachment 4: Letter of Offer ........................................................................................ 24 Attachment 5: Qualifications Questionnaire.................................................................. 27 Attachment 6: Private Sector Organization Screening Form......................................... 27 Attachment 7: Safety and Security Requirements ......................................................... 27 Attachment 8: Physical Security and Storage Questionnaire ........................................ 27

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Section 1.0 Overview and Procedures

1.1 Objectives of this RFP The Corporation and Purolator Inc. (Purolator) have a requirement for carriage and storage of mail between Prince Rupert (BC) to Haida Gwaii (BC), as identified in the Statement of Requirements documented in Attachment #1 - Statement of Requirements to this RFP. The Objective of this RFP is to ensure continued service between Prince Rupert (BC) and Haida Gwaii. It is the intent of the Corporation and Purolator to establish separate agreements with a proposer that qualifies with the mandatory and rated requirements stage. The RFP intends to award the agreements for both the Corporation and Purolator to the lowest priced solution based as specified in Section 3.4 on that Proposers solution meeting the minimum service requirements as per each requirement in Attachment #1 - Statement of Requirements. The Proposer must follow Article 1.4.5 for each proposal submitted. The term of Agreement(s) will be up to 60 months from August 1, 2012 to July 31, 2017. This RFP sets out the process by which a Proposer or Proposers will be identified for potential contract award.

1.2 Participating Members of the Canada Post Group of Companies Canada Post Corporation The Corporation is a Crown Corporation with business activities across Canada. The Corporations vision is to be a world leader in providing innovative physical and electronic delivery solutions, creating value for its customers, employees and all Canadians. The Corporation processes approximately 10.4 billion pieces of mail annually. In doing so, they serve more than 34.4 million Canadians and over one million businesses and public institutions. The Corporation collects, processes, and delivers mail across the world's second-largest country. Each working day, the Corporation delivers an average of 42.7 million pieces of mail, processed through 22 major plants and many other facilities, to over 15 million addresses in Canada, and forwards mail to almost every country in the world. The Corporation is the 41st largest Canadian business in terms of revenue and is the sixth largest employer in Canada. The Corporation has commercial, operational, and financial links with over 200 postal administrations around the world. For additional information on the Corporation, refer to the Corporations web site at www.canadapost.ca.

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Purolator Inc.

Overview Purolator is Canadas leading integrated freight and parcel solutions provider. Celebrating 50 years of delivering Canada, the company continues to expand its reach to more people, more businesses and more places across the country and around the world. Purolator is proud of its Canadian heritage and is positioning itself for future growth and success. As the recent recipient of the Logistics Quarterly Third-Party Logistics Sustainability Award, Purolator is growing globally in a sustainable manner while contributing to the well-being of the communities where its over 11,500 teammates live, work and play. Whatever you need Flexibility and responsiveness are the hallmarks of Purolators approach to customer service. We continuously focus on delivery best-in-class customer service and upholding our standards of quality. Furthermore, our committed teammates deep understanding of customer needs and on-the-ground decision-making allows us to be responsive in delivering what our customers need. Wherever you are As Canadas leading integrated freight and parcel solutions provider, we have built one of Canadas most extensive national transportation network and supporting infrastructure. The advantages of this size and scale benefit our customers, with more facilities in more regional centers than any other freight and parcel solutions provider in Canada. Nationally, provincially and regionally, Purolator delivers the same exceptional, consistent service and support, wherever you are. Whatever it takes Purolators strengt