Flood of controversy: company claims bidding process stinks

A company at the centre of a controversy involving Manitoba Infrastructure Minister SteveAshtonis facing new allegations of preferential treatment, this time involving the federal government.

• Whistleblower alleges Steve Ashton caught in conflict of interest

Last year, International Flood Control Corp. of Calgary was on the cusp of getting a $5-million untendered contract to supply Tiger Dams to the Interlake ReservesTribal Council. But provincial Treasury Board balked at approving the deal, and a whistleblower later accused Ashton of trying to push through the deal without a tender.

A complaint under the province's Whistleblower Protection Act alleges Ashton was in a possible conflict of interest by awarding a contract to a company that has contributed to his electoral campaigns.

The province eventually did put out a tender, but it has not been completed. Instead, a March 2015 tender funded by the federal government awarded International Flood Control a similar $5-million deal. But that tender is under fire.

Hold your nose

"This doesn't appear that it was ever intended to be competitive," said Greg Plett, spokesman for flood control company ABC Canada Technology Group Ltd.of Saskatoon. "I mean, kind of hold your nose because I don't think it smells very good."

He noted also that a purchase valued at $5 million was open to bids for only a few days.

"When you kind of see an RFP (request for proposal) of that value get rammed through the system in three or four days, you know it raises a couple of alarm bells," Plett said. "It's unfair for anybody else that would be a qualified bidder."

ABC sent a letter to Aboriginal Affairs and Northern Development Minister Bernard Valcourt asking him to do "an urgent review of the procurement practices and funding" related to the Interlake Reserves Tribal Council (IRTC) proposal call.

In the March 23 letter from ABC Canada, company director Don Adamssaid, "It is our contention that the award on this RFP should not be made and immediate action is required to ensure that sole-sourcing does not override a process that was fair, transparent and equitable."

Adams wrote that the federally-funded purchase was "directed to override a formal process and award the contract at substantially higher cost to a sole sourced supplier."

"There is no doubt that immediate action by your office is both required and necessary," Adams wrote.

Only one company could fit the bill

The minister's office acknowledged receipt of the company's letter and verbally indicated a letter would be forthcoming, but none was received, ABC said.

A spokesperson for the minister said he was not available for an interview.

Plett said the specifications for the tender were written such that the product of only one company -- the successful bidder -- would fit the requirements.

The president of International Flood Control, Paul Vickers, said from his office in Calgary that a short time frame for bidding is not unusual.

"It can happen. I mean sometimes it's.one day and sometimes they don't ever go to bid on some things," Vickers said.

In contrast, the province put out an RFP for flood dams to be used on First Nations on December 19, 2014 and that proposal call was open for six weeks, closing on January 28.

The province has never made an award from its RFP, but ABC Canada was qualified and did submit a bid.

The province's RFP said Manitoba would not accept a delivery date for the equipment later than March 31, 2015 but on that date, a provincial spokesperson said the province was still "in the final stages of awarding that contract."

When CBC News inquired about the awarding of a contract again on April 23, the spokesperson said "it is still under consideration."

Company denies it had unfair advantage

In a statement to CBC News, a spokesperson for the department of Aboriginal and Northern Development Canada said AANDC was responsible for authorizing the tribal council to issue a Request For Proposal for flood protection resources.

"The department has a role in reviewing the RFP, however the IRTC is responsible for the contract for this project," the spokesperson said.

The tribal council declined comment.

Vickers dismissed the idea his company had an unfair advantage. He said his company's product - called Tiger Dams - are stackable flood barriers, as requested in the RFP.

"If the customer wants something they can stack, that's what we sell and why we win bids all over the world, because ours is stackable. And it's something that, you know, other products can't do," Vickers said.