Study on Aviation Charges, Fees and Taxes

The Government of Canada, through Transport Canada, is seeking a contractor to conduct a comprehensive, evidence-based study on air passenger charges, fees, and taxes in Canada and to compare them with those of selected international jurisdictions. The study aims to establish a current and accurate baseline of how these costs are determined, collected, and allocated within Canada’s air transportation system, including the roles of government entities, airport authorities, NAV CANADA, and airlines. The Government does not set the fees of private entities like NAS airport authorities or NAV CANADA, which rely on commercial negotiations, making this study critical to evaluating the appropriateness and effectiveness of Canada’s user-pay model. The contractor will deliver six key tasks: an overview of airfare components and stakeholder roles, detailed breakdowns of representative passenger tickets across domestic and international routes, comparative analysis with three to four other countries, an assessment of price elasticity and past system shocks, an examination of policy implications for specific charges like the Air Travellers Security Charge, and coordinated stakeholder engagement with Transport Canada officials. The project must be completed within six months of contract award, with deliverables structured as a kick-off meeting, an interim report, and a final report with supporting products, paid in three installments representing 10%, 40%, and 50% of the firm price, respectively. The contract is a firm-price agreement with customs duties included and applicable taxes excluded, and payment terms require undisputed invoices to be settled within 30 days of receipt in acceptable form. The solicitation is open under NAICS code 541720 with a submission deadline of August 5, 2026, and no incumbent currently holds this contract. Offers must be submitted electronically as three distinct volumes including technical and financial proposals and mandatory declaration forms, and all offerors must possess a valid Procurement Business Number. Evaluation will prioritize technical merit at 70% weight and price at 30%, with mandatory technical criteria acting as pass/fail gates. Technical evaluation will assess relevant project experience, methodology, team capacity, subject matter expertise, and geographic experience, totaling 45 points. The contractor must comply with Canadian laws, including the Conflict of Interest Act and anti-forced labor requirements, and maintain records for seven years after final payment or until all claims are settled. All deliverables and materials produced will be the property of Canada, with confidentiality obligations surviving contract termination. Insurance is the contractor’s responsibility, subcontracting requires prior written approval, and the contractor remains fully liable for all