Corel wins fed complaint
...Corel's case has been closely watched by government suppliers. Since adoption of the North America Free Trade Agreement, the trade commission has become a cheaper and faster alternative to courts for firms that have a beef with the feds.
Corel's case was the first test of the NAFTA provision and the commission's ability to settle disputes...
canoe.com
Corel scores big in Canadian government settlement
...Some analysts suggested that Corel's cash settlement, rather than the opportunity to bid on business, is a poor second prize.
"Obviously it would have been better if it were opened up to a competition again and they (Corel) would have won," said Ralph Garcea, analyst at Scotia Capital Markets in Toronto.
"The cash settlement helps their balance sheet obviously, but from a marketing standpoint it doesn't really help their cause," Garcea said.
Corel supplies about a dozen federal departments with office automation software, with Foreign Affairs its largest customer at approximately 8,000 workstations.
Corel won't have another opportunity to supply Revenue Canada with office software until 2006.
"It's very good to have government as a customer," said a Bay Street watcher who asked not to be named, pointing out such deals are steady and reliable. "Here is C$9.9 million of compensation, but I'm sure Microsoft made much more."
The existing supply deal could be worth up to C$55 million if all the options are exercised, said Alan Williams, assistant deputy minister for supply operations service.
He adds the government will examine the way it followed its procurement policy, part of a regular review process, to determine if improvements can be made. "We're going to be doing that with the software industry, I think, next week," said Williams...
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