Norman Wells (Dec 20/04) - The president of Ernie McDonald Land Corporation says $18 million in Sahtu geotechnical work will do little to provide benefits to the region.

At the centre of Todd McCauley's concern is an $8 million construction contract awarded by the Gas Project to Rowe's Construction, which has offices in Hay River and Fort Simpson, even though the firm has a joint venture with Blackwater Lake Contracting. Blackwater is a Tulita-based firm owned by Alvin Yallee, a former president of Tulita Land Corporation.

Yallee said he planned to meet with Owen Rowe on Dec. 18 and is in the process of making employment notices available in Tulita, Deline, Fort Good Hope and Norman Wells.

"I want to get as many workers as I can from the Sahtu," said Yallee. "It works for me because I don't have the financial and mechanical resources. It allows us to do things with other companies so that I can capacity-build."

Blackwater was started up three and a half years ago and began working in the oil and gas field last year, said Yallee.

Owen Rowe, an owner/partner in Rowe's Construction, said Colt KBR, the general contractor representing the producers group, is looking for six to 10 pieces of heavy equipment as well as labourers.

"They designate how many hours and days you work. It's between four and eight weeks work, depending on whether it gets the go ahead or not," said Rowe.

McCauley said he's still suspicious.

"It's what we in the Sahtu call a front company. I'd be interested to see what assets Blackwater has that do construction work," said McCauley. "What's happened is that last year we signed an access and benefits agreement and started to talk to the producers about their geotechnical work. A benefits plan was put in place at the last hour because they wanted to do their work last January.

"One of the negotiators said, 'Show us some good faith and we'll show you how we support local businesses,'" said McCauley.

Now, he said, the largest contract has been awarded to a company from outside the region.

The work was delayed until this winter so a traditional knowledge study could be done in the Tulita area.

McCauley's company Aurora Technologies lost out on a $1 million communications contract associated with the same producers' work project. He argued the hurry-up-and-wait negotiation tactics of individuals representing the producers group resulted in a weakness in the agreement with respect to local companies getting the work.

McCauley said while his company lost the large communications end of the contract, it had at the same time been the successful bidder on a smaller communications contract associated with the bid.

"The fact is, I represent 225 people and I can't do nothing because of my own business. We lost the big communications contract and won a smaller part of it," he said.

Hodgson's Contracting and SRP Ventures were two other companies that launched unsuccessful bids on the general services end of the producers' contract.

Fair and square

A Gas Project spokesperson says the winning bidders won contracts fair and square.

"Some of the bids we received were not cost competitive. We've now conditionally awarded the contracts, but all of the work went to companies based in the North or joint ventures with Northern parties. Nine of the 10 contracts we awarded went to either Sahtu companies or joint ventures within the Sahtu," said project spokesperson Hart Searle.

Whether or not the work will go ahead this winter remains to be seen.

The Sahtu Land and Water Board is scheduled to discuss the project at meetings today and Tuesday in Norman Wells.