Bidding opens for Giant Mine cleanup contract worth hundreds of millions

Bidding is now open for the main Giant Mine remediation contract worth hundreds of millions of dollars.

There is no exact price tag for thecontract it's a competitive bidding process.But the cost of remediation is estimated at $600 million, according to thefederal government tender posted online last week.

Companies have until March 16, to submit expressions of interest to become the main construction manager for the enormous toxic site.

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The project is expected to take up to 10 years, starting in 2018.

Work includes freezing 237,000 tons of arsenic-trioxide dust underground, securing the integrity of mining pits, tunnels and tailings ponds and demolishing buildings on site.

Price tag?

While the document puts the price tag for remediation at $600 million, it also notes thatthis could vary by as much as 50 percent. That meansit could cost as little as $300 million or as much as $900 million.

That's also on top ofan estimated $82million worth of construction and demolition work to be done before underground remediation even gets underway in 2022.

Local impact

The contractis expected to be awarded in December of this year, with the winning bidder taking over management of the mine site in early 2018.

The winner would be in charge of subcontracting out work, and an emphasis is being put on using Indigenouslabour and business.

"Bidders will be evaluated on their firm guarantee to use Aboriginal employment from the area [and] the use of sub-contractors or suppliers that are Aboriginal, or Aboriginal firms, in carrying out the contract," states the RFP.

A system of financial rewards and penalties is built into the contract, so the winning company will get paid more if it exceeds its guaranteed levelof Aboriginal employment and less if it falls short.

The bidding process will roll out in two phases.

Companies will be screened to ensure they understand the project and have a proven record of completing large scale projects like this. Companies that make it through phase one will then be evaluated based on their proposals.