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The process to evaluate bids for city projects needs to be reviewed, said a project manager with Lacroix Construction.
Jordan Binotto said the city awarded the contract to tear down the Ash Street water tower to an out-of-town contractor, despite his company submitting a bid that was about $85,000 cheaper than the successful bidder.
Furthermore, Lacroix's estimated time frame from start to finish for the project was three to four weeks, about half of the time it would take Priestly Demolition from Toronto to complete the work.
Lacroix submitted a tender of $107,680 plus HST; Priestly Demolition's tender came in at $191,500 plus HST. That means the city will spend an additional $83,820 of taxpayers money to bring in a company from another city to do local work, Binotto said.
Binotto said he is well aware that contracts should not be awarded based on the lowest bid, and pointed out the city's “mistake” when it awarded its 2011-2013 street sweeping contract to Orangeville-based DeAngelo Brothers Corporation.
In August, the city stated the contractor “arrived in the city with insufficient equipment to complete the contract within the designated timeline.” This required the city to step in and assist the contractor to complete the work.
In most cases, “you get what you pay for,” Binotto said.
But this particular contract was not based on price alone. The city uses a points system, where points are awarded for experience, price, proposed methodology, lead time to complete the project and references. A total of 100 points are available: 30 points for experience, 15 points for price, 25 points for methodology, 15 points for lead time and 15 points for references.
Binotto said the local construction company was told by the city's Capital Projects manager, Ed Vildis, that the the company's methodology is where it lost points; however, the city agreed in principal that Lacroix's methodology compared to Priestly was the same in nature.
“The proposal submitted by Priestly, we were told, was 'more colourful and contained pictures.'” Binotto said. “This underscores a flaw in the current point system.”
There is nothing wrong with how the city handled the request for proposals, but there is definitely something wrong with the system as a whole, he said.
The current system could very well mean that Lacroix could have submitted a bid of zero dollars to do the work, and Priestly could have submitted a bid of millions of dollars, and the contract could potentially still go to Priestly, Binotto said.
Binotto was quick to point out that the company isn't holding a grudge, nor is it questioning the reputation and quality of work that can be done by Priestly. The intention is to merely inform the public of how tax dollars are being spent and for what reasons.
“It's very frustrating, and not just as an employee from Lacroix, but as a taxpayer,” Binotto said. “The city is a very valuable client, and we've had many successful projects, and we look forward to even more projects.”
When Binotto went in search of answers, he said the city was very “forthcoming” with its answers. He said he believes the city wasn't trying to hide anything when questioned why the contract was awarded to a Toronto-based company, but he does wonder why the city didn't post its decision on its website. This information is usually made public within hours of awarding the contract, he said.
Lacroix Construction Co. has operated in Sudbury for more than 51 years, he said. The company employs people from more than 80 families and the company pays its taxes on time. Lacroix is more than overqualified for the project.
In a letter to Mayor Marianne Matichuk, Lacroix owner and president, Murray Lacroix, stated he was “utterly appalled by the decision that was made to pay an extra $83,820 to mobilize an out-of-town company to complete work that local contractors are fully capable of doing.”
He said the mayor needs to know about the decisions that are being made, especially those that counter the growth and prosperity of the city's own taxpaying members.
Mayor Marianne Matichuk was not immediately available for comment.
Posted by Arron Pickard
