Debates of February 3, 2006 (day 22)

Thank you, Mr. Speaker. Mr. Speaker, in October of last year, I rose in this House with questions to the lucky Health Minister we have over here about sole sourcing purchases that are going directly south and the concern that several Yellowknife businesses had brought to me with the fact that they felt left out of the picture of bidding opportunities. They felt slighted by the process. Mr. Speaker, I wrote to the Minister about the policy. Two days ago in this House, I tabled a letter to me from the Minister of Health and Social Services regarding medical supply businesses. He says they follow the GNWT procurement program process. If I read one sentence, I am going to ask him what they are doing about it, which is some authorities appear to comply. Others have misinterpreted the policy and others appear to comply. What is the Minister doing about this problem that people are not complying to our policies? Thank you, Mr. Speaker.

Thank you, Mr. Hawkins. The honourable Minister of Health and Social Services, Mr. Miltenberger.

Return To Question 334-15(4): Compliance With GNWT Sole Source Contract Procedures

Thank you, Mr. Speaker. Mr. Speaker, the deputy has been tasked and quickly recognizes the need to follow-up with all of the CEOs and the various authorities to review the processes and appropriate procedures and ensure that they are put into place on an ongoing basis. Thank you.

Thank you, Mr. Miltenberger. Supplementary, Mr. Hawkins.

Supplementary To Question 334-15(4): Compliance With GNWT Sole Source Contract Procedures

Thank you, Mr. Speaker. I emphasize Yellowknife businesses were missing out on opportunities that they felt that they didn’t even get to see the bid on. These are the same businesses that are filing taxes here, so that should make our Finance Minister happy, but they are also being asked to donate to the community. If I can point out sole sourcing on a tabled document here on May 31, 2005, for Health and Social Services, it is a sole source directly that was $18.5 million out of their total contracting budget area which was $20 million, so that represents 92 percent of contracts went sole sourcing. What is the Minister going to do to make sure we correct this and have it measurable, deliverable, so I can go out to the Yellowknife Centre businesses and say to them that this government is doing something about this problem? Thank you, Mr. Speaker.

Thank you, Mr. Hawkins. Mr. Miltenberger.

Further Return To Question 334-15(4): Compliance With GNWT Sole Source Contract Procedures

Thank you, Mr. Speaker. Mr. Speaker, we will ensure that we are appropriate and guidelines are followed and procedures are followed. But I would like to point out, as well, that we have some very significant contracts that are with a specific provider. The one that immediately comes to mind, of course, is the capital health authority, where we have over a $10 million arrangement with them to provide services. We have numerous arrangements for children in care that are very specialized services that we just don’t put out to tender. In cases where it is appropriate, we are talking about goods and services and it makes sense, we make sure that the guidelines and policies are followed. I have committed to that. The Member should just be aware that there are a significant number of contracts in the business that we do. By virtue of necessity, they are done the way they are. Thank you.

Thank you, Mr. Miltenberger. Supplementary, Mr. Hawkins.

Supplementary To Question 334-15(4): Compliance With GNWT Sole Source Contract Procedures

Thank you, Mr. Speaker. I really appreciate the Minister pointing that out because that lead well into my next question. The Minister said that there are significant contracts. I will bow to his expertise. Yes, there are very significant contracts that probably do need to go to sole source. But, Mr. Speaker, out of the 75 contracts awarded that are over $5,000 on this tabled document, 58 of those are sole sourced. That means 17 went out to any type of competitive bid. That is telling you that 77 percent of these contracts of over $5,000 went to sole source. Mr. Speaker, how can we measure that in a fair and equitable way? I think people in the Northwest Territories are missing out on fair opportunity. What is the Minister going to do about that? Thank you, Mr. Speaker.

Thank you, Mr. Hawkins. Mr. Miltenberger.

Further Return To Question 334-15(4): Compliance With GNWT Sole Source Contract Procedures

Thank you, Mr. Speaker. Mr. Speaker, the Member has the document. I am not quite sure what the question is. I have indicated that we have identified, in some parts of our operation, we have to pay better attention and be more diligent in how we apply the contracting processes. We are going to do that. I would suggest that, as we bring forward in our accountable way how contracts are let and what contracts are let, we should hopefully see an improvement. Thank you.

Thank you, Mr. Miltenberger. Final supplementary, Mr. Hawkins.

Supplementary To Question 334-15(4): Compliance With GNWT Sole Source Contract Procedures

Thank you, Mr. Speaker. To further emphasize my point, and I do appreciate how the Minister was very forthcoming on this information, because I believe it was a lot of work to put it together, but under Stanton Territorial Hospital authority, northern suppliers supplied $156,000. In comparison, southern suppliers supplied $1.75 million. That means northern suppliers supplied eight percent at the Stanton Territorial Hospital.

Mr. Speaker, the Department of Health and Social Services, under the sole source contracting ledger here, made up 43.6 percent as a government as a whole for sole source. So it looks like the Department of Health and Social Services certainly has a different conduit for putting out public tenders. Mr. Speaker, my last question to the Minister is, what is he going to do to ensure that every single contract that can get out there gets out there for a fair and public opportunity for businesses? Thank you, Mr. Speaker.

Thank you, Mr. Hawkins. Mr. Miltenberger.

Further Return To Question 334-15(4): Compliance With GNWT Sole Source Contract Procedures

Thank you, Mr. Speaker. Mr. Speaker, I believe I spent the last three questions providing the information of what we intend to do. I will just stand by those commitments that I made in previous answers to previous questions. We will ensure that, where appropriate, we go to public tender. Recognizing the business we are in, we require the latitude to do sole source in certain areas. Where it has been identified that the rules haven’t been applied properly, we have taken the steps with the deputy minister to ensure that everybody involved is clearly aware of what is expected of them. Thank you.