Picco: QC must follow GN contracting rules

Ed Picco, Nunavut’s minister of health and social services, said this week that the Qikiqtaaluk Corporation – under a 1998 agreement — must follow territorial government rules when awarding contracts related to the construction of a replacement hospital in Iqaluit.

“They can’t change the rules after the game has begun and they understand that,” Picco said.

Under a service contract signed with the government of the Northwest Territories in 1998 and then renewed by the government of Nunavut, Qikiqtaaluk took on the job of handling the construction of a replacement hospital for the Baffin region in Iqaluit.

Under that agreement, Qikiqtaaluk must abide by all territorial government tendering procedures and policies when issuing contracts and sub-contracts for hospital work.

Since April 1, 1999, that includes the Nunavummi Nangminiqaqtunik Ikajuuti, or “NNI” policy, which is aimed at helping Inuit-owned firms compete for government work.

Abraham Tagalik, Qikiqtaaluk’s departing president, said in a story published in Nunatsiaq News last week that, in his opinion, a non-Inuit firm submitted the best bid for a Baffin hospital construction management contract advertised last year.

But when Tagalik took that recommendation to QC’s board of directors, they suspended him without pay from his job just before Christmas.

Tagalik said that’s because QC’s board wanted the Inuit-owned Nunavut Construction Corporation to get the contract instead.

QC owns 25 per cent of the NCC. Johnny Mike, vice-chair of QC’s board, also sits on the board of the NCC.

Tagalik said even after applying the NNI policy to the two proposals on QC’s short-list, the proposal submitted by the non-Inuit firm was superior to the proposal submitted by NCC. He said he had them analyzed by an independent consultant, who agreed with Tagalik’s assessment.

“Johnny Mike didn’t like that. He sits on the NCC board, and the NCC wasn’t getting it [the construction management contract]. That’s why it went crazy,” Tagalik said.

Picco, however, said he met with Johnny Mike and with Harry Flaherty, QC’s acting president, on Jan. 10 to discuss the replacement hospital process.

“I told them at that time that they will be expected, on this project, as QC has agreed to on numerous occasions, that those [the GN’s] procedures and policies had to be in place, that the process had to be transparent, and so on.”

Picco said he doesn’t care who wins the contract, as long as QC follows GN rules when awarding it.

“It doesn’t matter to me who the company is. But we have to get the best value for the dollar,” Picco said.

He also said GN officials will scrutinize how QC handles the request for proposals process to ensure it’s up to their standards.

“If it doesn’t, it’s not acceptable,” Picco said. “The minister responsible must ensure that spending of public money for the public good is accountable to the public.”

He said he expects to hear from QC soon about a decision on the construction management contract.

Picco said that after that work is carried out, QC will then be in a position to advertise and award another contract for the actual construction of the replacement hospital.

The estimated cost of a new Baffin hospital is $25 million, plus another $10 million worth of renovations to Iqaluit’s existing hospital building.

The Kivalliq and Kitikmeot regions are to each receive “extended health care facilities” worth $15 million a piece.

The GN will lease the Iqaluit hospital building from QC, but will have an option to buy the building after five years, Picco said.

Meanwhile, Johnny Mike did not return telephone messages left Jan. 14, 15 and 16 at Qikiqtaaluk’s office.

Tagak Curley, the president of the Nunavut Construction Corporation, told Nunatsiaq News on Jan. 11 that NCC is an efficient, well-managed, competitive company. He suggested that Abraham Tagalik may not have enough experience to properly evaluate the construction management contract proposals.

This week, a Toronto law firm representing NCC faxed Nunatsiaq News a letter alleging the entire Jan 11. article reporting on Abraham Tagalik’s employment status is “defamatory of Nunavut Construction Corporation.”