After its late-July to mid-September recess, Vancouver city council rubber-stamped six contracts worth almost $30 million in open meetings without mentioning the names of the losing bidders, the dollar values of their bids or how they were ranked.

That has raised questions over the transparency of competition for municipal contracts and left taxpayers in the dark over whether the competition was fair and their tax dollars were spent wisely.

article continues below

A year after Mayor Gregor Robertson’s 2008 swearing-in, which included a pledge to make city hall more open and accountable, city council agreed to lower the threshold for competitive bidding from $100,000 to $75,000.

But at the same time, council surrendered authority over decisions on bigger deals to closed-door committees of senior managers.

Until early 2010, city council voted on contracts worth $300,000 and up. Under the new regime, the committees — made up of managers from the department seeking the contract, along with city manager Penny Ballem — decide on contracts up to $2 million. Only those contracts worth more than $2 million need council’s approval.

But when city council is on summer or election recess, the committees do not have to abide by the $2-million cap.

Four contracts announced in September were decided by the committees alone, including a $12.5-million contract to Mainland Sand and Gravel Ltd. for the supply and delivery of mineral aggregates.

Of 2013’s top 10 contracts, Graham Infrastructure’s winning $5.38 million Burrard Bridge bearings rehabilitation deal was the only one where the staff report contained the full bidders list. In that case, Graham Infrastructure was the lowest bidder.

Jordan Bateman, B.C. director of the Canadian Taxpayers Federation, said “more scrutiny from the elected officials is better than less,” when it comes to entering into contracts.

Also, the tendering process should “be handled in an open and transparent manner.”

“Let taxpayers decide if they’ve gotten good value for money,” Bateman said.

In September, the Office of the Information and Privacy Commissioner (OIPC) ordered the city to disclose the financial terms of the bids that led in 2012 to PayByPhone scoring a $4-million, three-year deal for payment by phone for parking meters.

City hall claimed in February 2013 that disclosure of bids would harm both it and the bidders. By July 2013, after OIPC intervention, city hall revealed the names of the four losing bidders.

The city has now disclosed, after the OIPC ruling, that PayByPhone’s average $0.13.8 transaction fee was the lowest bid.

“The city has already selected a successful proponent and has awarded a contract, therefore there is no risk that disclosure will somehow harm the selection process,” wrote adjudicator Caitlin Lemiski.

“In short, the city’s arguments are no more than bald assertions that are not sufficient to discharge the burden of proof that it must meet.”

In an email reply regarding the OIPC order, Ballem wrote: “Our practices are benchmarked and we continue to update our practices on a regular basis based on the related legislation and practices and benchmarks from the literature and from municipal and other government practices across the country.

“Council is fully briefed on all procurements where they are the decision-maker. Our bidding process is public and available on B.C. Bid and award of the contract is based on the extensive consideration of all variables unless it is an [invitation to tender] which is awarded on price alone if all bid criteria are met.”

Despite the OIPC ruling, Ballem referred questions about bids for the six most recently awarded contracts to city hall’s freedom of information office.

Toronto, by comparison, has a bid committee that proactively releases same-day minutes and bid lists.

Surrey also proactively publishes bid lists.

Contract awards announced in September 2014

Vacuum Truck Services: McRae’s Environmental, $4.53 million. Awarded by bid committee during summer recess.

Provision of managed print services: Ricoh Canada Inc., $2.029 million. Awarded by bid committee during summer recess.

Supply and delivery of mineral aggregates: Mainland Sand and Gravel Ltd., $12.562 million. Awarded by bid committee during summer recess.

Asphalt, concrete and rock crushing services: Regehr Contracting, $3.05 million. Awarded by bid committee during summer recess.

Supply of two 40-foot fire rescue boats and service: MetalCraft Marine, $3.1 million. Approved by city council.

Provision of wireless services and devices: Bell Mobility, $4.4 million. Approved by city council.

Total: $29.671 million

bob@bobmackin.ca

twitter.com/bobmackin