‘Profoundly insulting’: Ottawa’s construction industry frustrated with city’s procurement for Sprung structure

Ottawa’s construction industry is calling the City of Ottawa’s decision to hire a Toronto contractor to build a $15 million newcomer reception centre in Nepean “profoundly insulting to the abilities of the local industry.”

Now, two leading construction associations are calling on the city to take three to six months to reopen the procurement process and allow local companies to find pre-engineered solutions to build a new facility for asylum seekers.

Last week, the city announced it intends to enter into a contract with BLT Construction Services (BLTCS) for the design and construction of the Sprung structure near the Nepean Sportsplex on Woodroffe Avenue.

Staff say a market assessment determined the company is the “only available and qualified vendor to perform the scope of the work required for this project.” Other companies will have two weeks to demonstrate their ability to meet the builder’s requirements for building the facility, according to the city.

In a letter to Mayor Mark Sutcliffe, the Ottawa Construction Association and the General Contractors Association of Ottawa said they are “dismayed that the city staff never reached out to the industry” to ask for input on building the new reception centre for asylum seekers, and want the city to reopen the bidding process.

“The reaction of many of our members is that it is profoundly insulting to the abilities of the local industry that the City has relied on a consultant’s market assessment that concludes that there are no local contractors capable of designing and building the proposed Sprung structure,” says the letter.

“We are advised by the City’s Chief Procurement Manager that the market assessment is not publicly available and we therefore request that it be released immediately in the interest of transparency.”

The letter adds the two-week period for local companies to demonstrate their ability to meet the requirements to build the structure “is totally inadequate for bidders to assemble serious proposals.”

The Ottawa Construction Association and the General Contractors Association of Ottawa letter says “local ‘bidders’ understand that internally, City staff have already declared their chosen path with a Sprung structure by BLTCS.”

The associations add the “only reasonable remedy to this unfortunate situation” is for the city to reboot the procurement process and put out a request for proposals to the local construction agency.

In an interview on Newstalk 580 CFRA’s The Morning Rush with Bill Carroll, Ottawa Construction Association President John DeVries says the industry is feeling “out in the cold” by the city.

“It’s obvious that they’ve got a solution in mind. They’ve now just opened up a procurement; a very tight window for our membership to respond,” DeVries said Tuesday morning.

“No consultation.”

DeVries says the two weeks notice on the procurement website is a “tight window” to draft a proposal, and “three to six months” is a good timeframe.

“There are lots of proposals possibly out there; there are pre-engineered solutions that, given enough time, our membership can come up with some innovative solutions,” DeVries said.

DeVries says the city shouldn’t focus entirely on the Sprung structure and look at pre-engineered solutions.

Last November, the city announced plans to build two Sprung structures to house and support asylum seekers. One would be near the Nepean Sportsplex and a second facility, if necessary, would be built at 40 Hearst Way in Kanata. The federal government will cover the cost of building the structures.

The City estimates it will take 12 months from the awarding of a contract to “substantial performance” for the facility to be ready in Nepean.

According to the city, the newcomer reception centre is part of a broader “Newcomer Reception System” that includes other traditional housing facilities – including a former nunnery on St. Joseph Boulevard.

A memo from Ottawa’s interim director of Housing and Homelessness Services Kale Brown last week said there are currently an estimated 300 newcomers, including asylum claimants, being served in community shelters.

In a statement to Newstalk 580 CFRA, the City of Ottawa’s acting chief procurement officer Joanne Graham said the city followed all necessary due diligence in determining the requirements for the newcomer reception centre.

“As part of this process, an Advanced Contract Award Notice (ACAN) has been posted on MERX.com. An ACAN is an effective and efficient procurement process that allows the City to determine if another qualified supplier can meet the highly specialized requirements for this project through a statement of capabilities. It provides suppliers an opportunity to submit a statement of capabilities including the respondent’s qualifications and experience necessary to meet the City’s minimum requirements within the desired timeframe. A respondent’s statement of capabilities does not include details such as financial offers, proposed level of effort, work plans, methodologies, or approaches, which expedites the open, fair and transparent procurement process,” Graham wrote.

“The posting will remain open until Tuesday, January 28, and all submissions will be carefully reviewed against the scope of work. We encourage interested vendors to submit their response before the closing date.”