Debates of October 14, 2016 (day 30)

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Statements

Member’s Statement on Sole-Source Contracting

Mahsi, Mr. Speaker. Mr. Speaker, in February, the Finance Minister announced changes in the limits for granting solesource contracts. To recap, solesource contract limits were increased from $5,000 to $25,000, $50,000, and $100,000 for different categories of purchases. That means GNWT purchasers can spend up to these amounts without having to go to tender or a negotiated contract.

I spoke on these changes in the June session, and the Minister may remember I questioned him on what controls are in place to ensure there is diligent oversight of the awarding of these solesource contracts. I didn't get the reassurance I was looking for from the Minister at that time. I also asked for the release of the 201516 Report on Contracts over $5,000 and have yet to receive the promised report from the Minister, even though we're now six months on from the end of that fiscal year.

Judging from the upswing in solesource spending between 2014 and 2015 yearend reports, there's good reason to be vigilant. In the 2015 end fiscal year, that is before greatly increasing the spending limits came into place, solesource spending soared to $90 million to 25 per cent of all contracts let, more than double the previous year.

Even more unsettling, the report reveals how some well-placed suppliers get major solesource contracts again and again. For example, one former deputy minister received 22 solesource contracts, totalling $567,000. Another former DM got 10 contracts, worth $242,000. Media has reported, and I can confirm, a former Premier received 15 solesource contracts, totalling almost $600,000 over the last eight years.

A consultant in BC has received 22 solesource contracts since 201112, totalling $1 million. This is significant spending, Mr. Speaker, all awarded without the test of tender or negotiation to periodically determine whether the public is getting the best value for its tax money spent, and that was under the much more modest limits on solesource spending. So, to go back to my question about oversight  I think I'm going to have to ask you, Mr. Speaker, for unanimous consent to conclude my statement. Thank you.

Unanimous consent granted

Mahsi, Mr. Speaker. So, back to my question about oversight, when the same consultants are repeated beneficiaries of solesource contracts, shouldn't we occasionally look to see whether other suppliers might not provide value for money? The only review of solesource contracting I can locate is the 2009 Auditor General's review of GNWT contracting. The OAG reported that one in five solesource contracts was not properly awarded. Mr. Speaker, the increased limits make the stakes that much higher. I will have questions for the Finance Minister. Mahsi, Mr. Speaker.

Speaker: MR. SPEAKER

Masi. Item 2, Members' statements. Member for Frame Lake.