Doug Ashbury
Northern News Services

NNSL (Jun 15/98) - By extending the current North Warning System contract, Ottawa will meet land claim requirements, the chairman of Pan Arctic Inuit Logistics said.

"A contract renewal represents the most cost-effective means for Canada to continue its North Warning System operations and maintenance responsibilities, while at the same time meeting its land claims commitments to the Inuit," Russell Newmark said.

Pan Arctic, with joint-venture partner Frontec Corp., currently has the contract to staff, repair, support and supply the North Warning System, a string of long-range radar sites across Canada's Arctic.

The current five-year contract, which expires in 2000, is up for renewal this year, came under scrutiny because it appeared the federal government was set to single-source the deal to the Pan Arctic-Frontec joint venture.

Critics want the contract, which could be worth $550 million over 10 years, tendered.

"Our decision to proceed with Frontec as our chosen joint-venture partner was carefully considered and consequently fully supported by Inuit leadership after having satisfied ourselves the best interests of the Inuit were served by continuing our relationship with our current partner," said Newmark, who is also president and CEO of the Western Arctic's Inuvialuit Petroleum Corp.

Through respective strengths, experience and abilities, the joint-venture partners have provided a cost-effective service that has exceeded all contract performance criteria, Ottawa-based Pan Arctic said last week.

The joint-venture partners have also developed cost savings, technical efficiencies and aboriginal training programs, Pan Arctic said.

The programs have helped Canada meet the spirit, intent and articles of the various land claim settlements it has entered into with the Inuit, the company said in a release.

Article 24 of the Nunavut Land Claims Agreement states: "The Government of Canada shall develop, implement or maintain procurement policies respecting Inuit firms for all government of Canada contracts required in support of its activities in the Nunavut Settlement Area."