Businesses get more time to respond to contract policy

MICHAELA RODRIGUE

IQALUIT — The government of Nunavut has agreed to give businesses more time to digest and respond to a proposed new Nunavut contracting policy.

The Baffin Regional Chamber of Commerce complained that businesses weren’t given enough time to respond to the proposed new contracting policy, which the Nunavut government released to the public just three days before Christmas.

Businesses and other interested groups now have until Jan. 21 to send submissions to the joint Nunavut government and Nunavut Tunngavik Inc. working group that produced the draft policy, said John Purdy, the Nunavut government representative on the working group.

Responses to the proposed policy were originally due by Jan. 14.

But some businesses didn’t receive the document until last week and some still haven’t received it, prompting a plea from the Baffin and Iqaluit chambers of commerce for more time.

“We’ll give them up to the twenty-first. Hopefully that’s enough time to get a response,” Purdy said.

So far, Purdy has received only one response to the proposal via fax.

The proposed changes to the terrritorial government’s contracting policies are extensive and require more time for consultation, said Cheri Kemp-Kinnear, the president of the Iqaluit Chamber of Commerce.

In fact, the Iqaluit chamber still hasn’t received a copy of the proposal from the working group, and instead received a copy from another source.

The chamber has since sent copies to its members and scheduled a board meeting for a time after Nunatsiaq News’ press-time this week. They will hold another meeting with their general membership on Jan. 18.

The working group was formed to come up with a new Nunavut contracting policy that conforms to Article 24 of the Nunavut land claim agreement. The policy would replace the current Business Incentive Policy, which gives competitive advantages to “northern” companies that bid on government contracts.

The working group held public consultation meetings with Nunavut business people last fall.

It’s proposing a new point system that would gives extra points to contractors with Inuit, Nunavut or local content. Contractors with high levels of Inuit, Nunavut or local content could have their bid price lowered by up to 20 per cent under the proposal.

When contacted by Nunatsiaq News many business people were still digesting the proposal and declined to comment.

Kenn Harper, the vice-president of Nunavut operations for Urbco Inc. limited his comments saying he hasn’t made up his mind.

But he did say the policy is “too much a construction-oriented policy.” Harper would not explain his position, but he added, the policy, as proposed, is “very profligate with government money,” and he called for a $50,000 cap on bid adjustments.

Tagak Curley, the head of one of Nunavut’s largest construction companies, Nunavut Construction Company, called the proposed policy “a good first start.”

Curley said the point system proposed is not complex and he said the policy spells out some requirements to contractors.

“Make the rules clear and we’ll abide by them,” Curley said.

The discussion paper outlines two possible ways of rewarding high levels of Inuit, Nunavut and local content in government contracts.

One way would be for a bid price to be lowered by up to 20 per cent depending upon how the bid scores on Inuit, Nunavut and local content.

The second option would be to pay out cash bonuses after work is complete to firms that can prove they’ve met certain hiring levels.

Curley said he prefers the first option. Curley said a cash pay-out system that kicks in after the contract is complete would be “tedious” and would create extra administrative work.

Curley also said only awarding points to firms with at least 51 per cent Inuit, Nunavut or local content makes sense under the land claim agreement.

The working group is now awaiting responses from businesses and other interested groups across the territory.

After those submissions are reviewed, a complete policy will be drafted. A new policy would be reviewed by a legislative assembly standing committee and requires approval from the cabinet and the NTI leadership.