Generator delay sparks doubt about procurement
California company hasn't delivered $2.5M worth of equipment 18 months after order
Jessica Davey-Quantick
Northern News Services
Wednesday, March 22, 2017
SOMBA K'E/YELLOWKNIFE
Delays in the arrival of four generators the NWT Power Corporation bought from a California company has led to questions in the legislative assembly about government procurement policies.
But Industry, Tourism and Investment Minister Wally Schumann didn't want to hear them.
"I don't know how many creative ways I've got to say this," he said on March 9. "I believe our system is fine, it's working."
NWT Power Corporation contracted Virdi Power of California for four generators, to the tune of around $2.5 million, in 2015, to be delivered in six months. The company received a $1 million deposit and no generators have been delivered 18 months later.
"One thing is for sure," said Yellowknife North MLA Cory Vanthuyne to legislative assembly on March 3. "This circumstance is not inspiring confidence in the ratepayers in the North."
The NWT Power Corporation is looking at its options, according to Louis Sebert, the minister responsible for the NWT Power Corporation. He told the legislative assembly on March 9 that the power corp. has its own procurement policies but they closely mirror territorial government's.
"I don't imagine it is very different," he said.
The delay has led to Kam Lake MLA Kieron Testart asking Schumann to commit to "comprehensive procurement reform" but Schumann defended the system in the face of Testart's criticisms. He rejected Testart's request that he commit to establishing a committee of business people and procurement experts to evaluate the current system.
"I believe we have a robust system that's in place and procurement is well-documented in the Government of the Northwest Territories," said Schumann.
Testart isn't so sure, and suggested "some business people might disagree."
"Good is the enemy of great, and I think we deserve a world-class procurement system," he said.
Schumann doubled down, adding that as long as he's been minister, he has not received any complaints about the procurement process, which again caused Testart to allude to public dissatisfaction with the system.
"Perhaps my constituents aren't complaining directly to the minister because they don't feel like they can," he said.
The GNWT reports it currently spends more than $260 million annually on products and services.
Currently, the GNWT's policy states government procurement will be conducted in a manner that observes the "highest standards," passing the test of public scrutiny and reflecting "fairness in the spending of public money."
Additionally, the Business Incentive Policy gives preference to businesses that are owned and operated within the NWT by adjusting the bid to make the companies more competitive.
