Macauley & Associates Consulting Inc. 742 Hampshire Road, Victoria, BC V8S 4S4 June 25, 2012 Mr.

Shane Simpson, MLA Vancouver-Hastings Room 201 Parliament Buildings Victoria, BC V8V 1X4 By Email and Mail Dear Mr. Simpson: I would like to thank you for your letter of June 22, 2012 which I received by email at about 2:00 in the afternoon on Friday. I understand the nature of the concerns that you have expressed in your letter, and appreciate your input. However, my role as fairness monitor is limited to the terms of my engagement. The terms of reference set out in my contract for this engagement are: a) Review the procurement documentation so as to understand the negotiated request for proposal process that will be used on the distribution of liquor project (the NRFP); Monitor the procurement process for adherence to the terms of the NRFP, including participating at the proponents meeting, site visits (if any), providing advice related to fairness in the NRFP, oversight during evaluation of submissions and subsequent proposal refinement process as well as final selection of the selected proponent; and Prepare a written fairness summary report based on observations made during delivery of the procurement process.

b)

c)

My observations of and comments on activities of the participants within the NRFP process and fairness within the NRFP process as developed will be contained in the written fairness summary report that I will provide to the Province at the conclusion of the procurement process. To the extent that I have any concerns about fairness within the NRFP process, these concerns will be reflected in my written fairness summary. I would like to thank you once again for your letter. Yours truly [ Original Signed ] George Macauley cc. Richard Poutney (Contract engagement official)