February 1, 2000
(Works, Services and Transportation)

Minister responds to ferry allegations

Rick Woodford, Minister of Works, Services and Transportation, today responded to allegations that the tendering process used to award the St. Barbe-Blanc Sablon ferry service was biased.

"The allegations that this process was in any way biased are totally unfounded. I am amazed that this would even be challenged," said Mr. Woodford. "The department followed all aspects of the Public Tender Act and only one vessel, the Apollo, met the required specifications."

Prior to tendering, government met with the Combined Councils of Labrador and other users in the area to discuss their needs with regard to ferry services. Because of anticipated increases in tourism and business traffic, a larger, more enhanced vessel was needed.

The department issued the tender for the vessel on November 13, 1999, and bidding closed December 20, 1999. The department received four bids for the service, of which three were disqualified for not meeting the required specifications.

Puddister Shipping Ltd., an unsuccessful bidder, submitted two bids - one for the Northern Princess and the other for the Cozumel II. The two vessels submitted by Puddister�s did not comply with the new requirements of the service. The bids were disqualified because they did not have the necessary capacity for passenger vehicles and tractor trailers and did not have covered vehicle decks. The Northern Princess could also not be tendered because it is 34 years old. Puddister�s has subsequently charged that government changed the tender to favour a bid submitted by another company with Liberal ties.

The department issued an addendum to the tender on December 10. The addendum stated that the department was expanding, not restricting, the tender by allowing the age of the vessel to be increased from 25 to 30 years of age. The change was first requested in verbal discussions with Puddister�s and then in writing by Straits Syndicate, an unsuccessful bidder, and then by Labrador Marine Inc., the successful bidder. These companies asked the department to increase the age stipulation because of the difficulty, after searching world markets, in finding a vessel that would meet this requirement and the probability that this requirement would be more costly for government.

This change did not provide Labrador Marine Inc. with an unfair advantage, but rather opened an opportunity for Puddister�s to bid the 27 year old vessel Cozumel II. This change in the tender actually benefitted Puddister�s because they could now submit a vessel that they could not before the addendum was issued.

Puddister�s also claim that the successful vessel, the Apollo, does not meet the tender requirements for length of the vessel. The addendum states that "maximum overall length is not to exceed 85 metres unless it can be demonstrated to the satisfaction of the minister that a longer vessel is capable of docking at the ramp at Blanc Sablon in the normal position for loading and offloading without the need to angle the vessel or compensate in other ways to enable effective ramp transfer." Labrador Marine Inc. submitted detailed drawings to demonstrate that the 108 metre long Apollo could meet the tender requirement. The department also consulted with an independent naval architect to ensure this was the case.

Puddister Shipping requested an extension to the bidding deadline, which was refused by the department. Of the 10 companies to obtain the tender specifications from the department, Puddister�s was the only one to request an extension. "We have a very short time frame in which to obtain a vessel, have it inspected and get it ready for the May 1 run," said Mr. Woodford. "Time did not permit an extension."

In the February 1 edition of The Telegram, opposition critic Paul Shelley said that government has watered down the Public Tender Act, leaving it open to abuse. The recent amendments to the Public Tender Act, which deal with exemptions, economic development and requests for proposals, do not apply to this tender. As for the Trans City affair, no comparisons can be made as that issue involved calling requests for proposals and in this situation tenders were called - two different processes. In this case, Puddister Shipping has actually provided service to the area for almost 30 years without having to go through the tendering process.

Over the past three years, the needs of St. Barbe and Labrador have changed and a larger vessel is required to meet those needs. With the contract with Puddister�s expiring in March, government decided that because of this need, it would issue a tender.

"We needed an improved service there, it�s as simple as that," said Mr. Woodford. "If we had any bias against Puddister�s why would we let them operate for almost 30 years without going to tender? They had the same opportunity as everyone else to find an appropriate vessel."

Media contact: Lynn Evans, Communications, (709) 729-3015.

2000 02 01                                         4:20 p.m.