We are capped to the dollar value in the letter of award, and the contract is subject to the appropriation being made available by this House.
Debates of Oct. 8th, 2008
This is page numbers 1593 to 1630 of the Hansard for the 16th Assembly, 2nd Session. The original version can be accessed on the Legislative Assembly's website or by contacting the Legislative Assembly Library. The word of the day was capital.
Topics
Tabled Document 93-16(2) Northwest Territories Capital Estimates 2009–2010
Consideration in Committee of the Whole of Bills and Other Matters
Aumond
Tabled Document 93-16(2) Northwest Territories Capital Estimates 2009–2010
Consideration in Committee of the Whole of Bills and Other Matters
Jane Groenewegen Hay River South
So to my question, then, just to be clear: in the letter of award is that clause included in that letter, that that is subject to the approval of this House?
Tabled Document 93-16(2) Northwest Territories Capital Estimates 2009–2010
Consideration in Committee of the Whole of Bills and Other Matters
Aumond
No. The letter of award does not state that it’s subject to approval of the House. Thecontract does.
Tabled Document 93-16(2) Northwest Territories Capital Estimates 2009–2010
Consideration in Committee of the Whole of Bills and Other Matters
Jane Groenewegen Hay River South
This is probably the largest capital project built in the history of our government, barring the Deh Cho Bridge, which is a P3 and a little bit different but an actual project within the purview of this government. To my knowledge this is the largest capital project ever built. Could we get some rationalization for why it was a negotiated contract as opposed to a competitive process? Were other means of procuring this project considered, like breaking it up into smaller pieces? On a negotiated contract, when the process has been described previously as having to meet with the agreement of the MLA, the mayor and the Cabinet, was the MLA who approved the negotiated contract the MLA for Inuvik Boot Lake, the Premier and the Chair of the Financial Management Board?
Tabled Document 93-16(2) Northwest Territories Capital Estimates 2009–2010
Consideration in Committee of the Whole of Bills and Other Matters
Michael Miltenberger Thebacha
I’m sure there are some very pointed questions that have some possible implications here. I want to be careful. This negotiated contract process was followed. It was supported by the Gwich’in in Inuvialuit, the mayor and the folks in the region. It’s within the Gwich’in Settlement Area, where we have an agreement for contracts. It has followed due process. It was brought forward through the appropriate channels and was approved based on the support from the Inuvialuit, Gwich’in, MLAs, the mayor and all the required community people.
Tabled Document 93-16(2) Northwest Territories Capital Estimates 2009–2010
Consideration in Committee of the Whole of Bills and Other Matters
Jane Groenewegen Hay River South
It’s a long period of time, so this will be end of my pointed questions. I thought pointed questions were allowed.
The question I asked previously was: were other procurement options than a negotiated contract considered for this particular capital project given its size and the cost to this government?
Tabled Document 93-16(2) Northwest Territories Capital Estimates 2009–2010
Consideration in Committee of the Whole of Bills and Other Matters
Tabled Document 93-16(2) Northwest Territories Capital Estimates 2009–2010
Consideration in Committee of the Whole of Bills and Other Matters
Aumond
Thank you, Mr. Chair. Yes, we were originally planning to design the school and put it out to tender. However, as I explained in standing
committee, based on our track record of, I guess, enticing competition, we knew that we ran a pretty good chance of designing the project until its completion, putting it out to tender and only having one company bid on it.
Then as we were working our way through the design process, we had a request for a negotiated contract. We went through the policy, the approvals were sought and received, and then we brought in the contractor in the early part of the project to get their input on the buildability of the project, with the intention of trying to save money. In a way it did provide some value to the design at that point. Construction costs were in excess of about $110 million. Through the use of value engineering brought forward by the contractor, we were able to get that down under a hundred million dollars for the construction. Based on previous experience, such as in Fort Good Hope when we put a design build-up for a school, we only really had one contractor. We did have a southern based contractor bid on the school, but we ended up paying a $1.3 million VIP premium on that facility. So I think we’re getting fair value if you look at what the costs are for this school versus what we’re paying for the renovation of St. Joe’s, where it’s a renovation project. You know, the cost of construction is around $6,100 to $6,200 a square metre. That cost was a given last year. Remember, we saved $9 million on that school.
The school in Inuvik is really two schools under one roof. It’s K to 12. It’s about four times the size of St. Joe’s, and St. Joe’s is about $30 million. So if you look at the ratio proportion — plus this is a cost that’s going to be carried over the next four years — I think the cost is quite reasonable given what we’re paying here in Yellowknife for construction now for St. Joe’s or what we paid in N’dilo for École Allain St-Cyr.
So to answer the MLA’s questions, we did consider other options. However, we have a process for a negotiated contract that was supported by the region and the community, and I think we’re getting decent value for the proposal that we have in front of us. Thank you.
Tabled Document 93-16(2) Northwest Territories Capital Estimates 2009–2010
Consideration in Committee of the Whole of Bills and Other Matters
Michael Miltenberger Thebacha
Mr. Chair, I just wanted to reiterate for the record that this project is replacing Sir Alexander Mackenzie and Samuel Hearne, two fairly large schools, and as Mr. Aumond indicated, it’s going to provide the schools under one roof. Those are two large facilities. There’s a large school population. So we have to keep that in mind as well. It speaks to the size. Thank you.
Tabled Document 93-16(2) Northwest Territories Capital Estimates 2009–2010
Consideration in Committee of the Whole of Bills and Other Matters
Jane Groenewegen Hay River South
Mr. Chairman, I would like to move that we report progress. Our Members are little down on this side, so I will ask to report progress, please.
Tabled Document 93-16(2) Northwest Territories Capital Estimates 2009–2010
Consideration in Committee of the Whole of Bills and Other Matters
The Chair Bob Bromley
Thank you, Mrs. Groenewegen. Unfortunately, we do not have a quorum on the floor, so we’ll ring the bell, unless you have another comment.
Thank you. We do have a quorum. The motion is in order and not debatable.
Motion carried.
Tabled Document 93-16(2) Northwest Territories Capital Estimates 2009–2010
Consideration in Committee of the Whole of Bills and Other Matters
The Chair Bob Bromley
I will now move and report progress. I’d like to thank the Minister and the witnesses. The Sergeant-at-Arms may escort the witnesses out of the House. Thank you.
Report of Committee of the Whole
Report of Committee of the Whole
Report of Committee of the Whole
Report of Committee of the Whole
Report of Committee of the Whole
Report of Committee of the Whole
Bob Bromley Weledeh
Thank you, Mr. Speaker. Your committee has been considering Tabled Document 93-16(2), Northwest Territories Capital Estimates 2009–2010, and would like to report progress.
Mr. Speaker, I move that the report of the Committee of the Whole be concurred with. Thank you.
Report of Committee of the Whole
Report of Committee of the Whole
The Speaker Paul Delorey
Thankyou, Mr. Bromley. A motion is on the floor. Seconder, the honourable Member for Nunakput, Mr. Jacobson.
Motion carried.
Report of Committee of the Whole
Report of Committee of the Whole
Orders of the Day
Orders of the Day
Doug Schauerte Deputy Clerk Of The House
Mr. Speaker, Orders of the Day for Thursday, October 9, 1:30 p.m.
1) Prayer
2) Ministers’
Statements
3) Members’
Statements
4) Reports of Standing and Special Committees
5) Returns to Oral Questions
6) Recognition of Visitors in the Gallery
7) Acknowledgements
8) Oral
Questions
9) Written
Questions
10) Returns to Written Questions
11) Replies to Opening Address
12) Petitions
13) Reports of Committees on the Review of Bills
14) Tabling of Documents
15) Notices of Motion
16) Notices of Motion for First Reading of Bills
17) Motions
Motion 22-16(2): Extended Adjournment of the House to October 15, 2008 (Bisaro)
18) First Reading of Bills
19) Second Reading of Bills
20) Consideration in Committee of the Whole of
Bills and Other Matters
MS 80-16(2): Sessional Statement
TD 93-16(2): Northwest Territories Capital Estimates 2009–2010
21) Report of Committee of the Whole
22) Third Reading of Bills
23) Orders of the Day
Orders of the Day
Orders of the Day
The Speaker Paul Delorey
Thank you, Mr. Clerk. Accordingly, this House stands adjourned until Thursday, October 9, at 1:30 p.m.
The House adjourned at 5:49 p.m.