Debates of February 25, 2016 (day 6)

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Question 70-18(2): Negotiated Contracts in Small Communities

Thank you, Mr. Speaker. Mr. Speaker, today, I have a question for the Minister of Transportation. As the Minister has heard numerous times in this House, in the small communities, not the big centres like Hay River, Inuvik, Yellowknife, Fort Smith, it is very important to have projects done with local contractors where possible, or with a joint venture, so the money can stay in the community. Therefore, can the Minister please explain the process used to set up negotiated capital projects with his department? Thank you, Mr. Speaker.

Speaker: MR. SPEAKER

Masi. Minister of Transportation.

Thank you, Mr. Speaker. The Department of Transportation applies the Negotiated Contracts Policy to all requests received from communities interested in pursuing a negotiated contract. Thank you, Mr. Speaker.

I thank the Minister for his short but sweet answer. Can the Minister please explain how the department works with small communities so they can address their desire to go into negotiated contracts?

The department considers contracting methodology based upon the scope of work; safety requirements of the scope in the construction industry. When a community expresses an interest in a project and in contrast, the methodology affords itself to a negotiated contract, the department will assist by advising on policy requirements. On the other hand, when contracting methodology does not suit a negotiated contract, the department will advise communities to partner with contractors having those specialized trades and equipment. We also encourage communities to take part in training offered by the Department of Municipal and Community Affairs School of Community Government.

I thank the Minister for a better answer, and a longer answer I should say.

---Laughter

Can the Minister please explain to me how the Somba K’e Runway internal project was dealt with, since the runway was done by a negotiated contract with the First Nation and a regional company, and the air terminal wasn't?

As mentioned, these decisions are made based on the scope of the contract, safety requirements of the scope, and the construction industry. The work associated with construction of a runway is primarily gravel hauling and moving and compaction. It was completed through a variety of approaches, including construction management initially, and then through a negotiated contract with Rowe's Construction in the community. The ATP was a smaller contract that required bonding and specialized skills that could not be learned and transferred based on the duration of that contract. During the tendering period, the community was encouraged to partner with the general contractor who has the necessary trades and equipment and bonding capabilities to finance this project during construction.

Speaker: MR. SPEAKER

Masi. Oral questions. Member for Nahendeh.

Thank you, Mr. Speaker, and I thank the Minster for his answer. I did ask this question to the Minister in an email, if the terminal is going to modular built or stick-built. The response I received it was going to be stick-built, but it was going to be done outside the community and will be trucked in. The reason for doing this was they needed special tools. Can the Minister please explain what special tools were needed that could not be brought into the community to do the stick-built project for Somba K’e? Thank you, Mr. Speaker.

The air terminal project was delivered through a public tender. Determining the methodology is a responsibility of the contractor delivering the project. In this case it is speculated that the contractor use an off-site construction because of the proximity of specialized trades and building materials in Hay River. This keeps the cost of construction down and avoids unnecessary delays. I'll add that the new air terminal building for the Trout Lake Airport is designed as a stick-built structure that will be transported by truck and arriving in Trout Lake soon as one item. The building is expected to arrive on site during the first week of March, and the Department of Transportation encourages the community to contact Rowe’s Construction to identify local job opportunities for the final delivery and set-up of the building.