Council could demand more info on controversial SNC-Lavalin bid - Action News
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Ottawa

Council could demand more info on controversial SNC-Lavalin bid

Councillorscould demand more information on the controversial SNC-Lavalin contract to extend the Trillium Line if they pass a motion being planned for Wednesday's council meeting.

Bid for Trillium Line failed to meet technical grade, according to sources

Kitchissippi Coun. Jeff Leiper is working with other councillors and city staff on a motion to demand more information on the SNC-Lavalin bid process. (Amanda Pfeffer/CBC)

Councillorscould demand more information on the controversial SNC-Lavalin contract to extend the Trillium Line if they pass a motion being planned for Wednesday's council meeting.

Last week, CBCreported that SNC-Lavalindid not meet the minimum 70 per cent technical score needed to qualify forthe $1.6-billion contract, while its two competitors easily met the threshold, according to three sources with direct knowledge of the evaluationprocess.

Citing commercial confidentiality, city officialshave refused to say whetherSNC-Lavalin met the technical threshold.

Asked if there are provisions inthe request for proposals that would allow a bidder to win without earning a 70 per cent grade, the city wouldn'texplicitly say.

Coun. Jeff Leiper saidhe heard a "non-stop stream of reaction from residents" about thestory over the weekend.

"Residents are concerned that the bidding process was not fair," said the Kitchissippi councillor.

"I think it's incumbent on us as a city to put those questions to rest."

Now, the councillor is working with colleagues, city staff and the clerk's office on the wording of a motion that "would simply request more information from the city" before the SNC-Lavalin contract is finalized at the end of the month.

Council would have to waive the usual rules of procedure at Wednesday's council meetingto allow such a motion to be discussed.

Council refused answers on minimum scoring

Earlier this monthin a 19 to 3 vote, council approvedthe contracts for both the east-west Confederation Line and north-south Trillium Line extensions.

Councillors Diane Deans (Gloucester-Southgate), Rick Chiarelli(College) and Shawn Menard(Capital) voted against the deal.

At the time, Deans and a few other councillorspressed city officials and their lawyer, Geoffrey Gilbert of Norton Rose Fulbright, on whether SNC-Lavalinachieved the minimum technical score.

Mayor Jim Watson defended the city's procurement process last Friday, saying it was carried out by professionals and "not politicians" and overseen by a hired fairness commissioner.

The SNC-Lavalin bid was also "the best deal for taxpayers," according toWatson.

'I have full confidence'

6 years ago
Duration 1:13
Mayor Jim Watson and city manager Steve Kanellakos say they have no doubts about the procurement process that resulted in SNC-Lavalin winning the $1.6-billion contract to extend and maintain Ottawa's north-south LRT line.

SNC-Lavalin'scontract to extend the Trillium Line from Greenborostationto Riverside South is worth about $800 million $230 million more than the city was expecting to pay.

When the 27-year maintenance contract is includedthe contract is worth $1.6 billion, about $100 million less than expected.

It remains unclearwhy city officials have spoken about SNC-Lavalin'sfinancial score they have said repeatedly that the Montreal-based company submitted the cheapest bidbut are not able to confirm that it met the technical threshold.

A red public transit train in winter.
SNC-Lavalin won the Trillium Line extension bid, worth $1.6 billion over three decades. The contract has not yet been signed. (Krystalle Ramlakhan/CBC)

Concerns over litigation

Not all councillorssee eye-to-eye with Leiper.

Cumberland ward Coun. Stephen Blais, who has not yet seen the wording of the motion in progress, said he is "never against getting more information."

But he trusts that no rules were broken during the evaluation processand is worried about potential legal action against the city.

"What we heard was that providing information on technical scores would violate the terms of the [request for proposals]," said Blais.

"This would open us up to litigation, whichwould lead to extra costs for taxpayers in legal fees, settlements anddelays in construction."

'We need to have confidence in this process'

6 years ago
Duration 0:38
Coun. Diane Deans is calling on city staff to explain to council how SNC-Lavalin won the $1.6-billion contract for the expansion and maintenance of the LRT's Trillium Line.

Leiper said he's also concerned about any council action that "could trigger millions [of dollars] in penalties."

He's also willing to believe there is a mechanism in the process that could allow a proposal that did not meet the minimum technical thresholdto be named the winning bidder.

"But we need to know what that mechanism is," said Leiper.

"We need to know what the balance of considerations was that led staff to recommend SNC-Lavalin."