March 27, 2000
(Works, Services and Transportation)

Judge rules no bias in awarding Straits ferry tender

Supreme Court Justice Keith Mercer ruled Friday that the Department of Works, Services and Transportation was not biased in its decision to award a tender to Labrador Marine Inc. to provide ferry services for the Strait of Belle Isle.

"I am extremely pleased with Justice Mercer�s ruling," said Rick Woodford, Works, Services and Transportation Minister. "I am pleased for the province, because it reinforces that we made the right decision in the beginning. I am especially glad for the people of the Straits, who also had a lot riding on this judgement."

In a 40-page judgement issued March 24, Justice Mercer ruled he would not quash the decision made by the department in its selection of the M/V Apollo.

The document stated: "...I conclude that all potential bidders had a fair opportunity to bid on the Invitation to Tender, as revised by the addenda issued on December 10, 1999." He also ruled, "Accordingly I reject the contention of Puddister Shipping that the duty of procedural fairness was breached by either issuance of the addenda or denial of the request for an extension to the closing date."

Tens days before the tender was to close, the department changed the specifications to allow the age of the vessel to increase from 25 to 30 years. On this issue, Justice Mercer stated in his decision that: "The change to the age specification in the addenda therefore appears on the evidence to have assisted Puddister Shipping equally with Labrador Marine Inc., enabling each to bid vessels which they had previously been considering." He also ruled that government acted in good faith in considering requests from bidders to issue addenda to the tender invitation.

Changes to specifications before the closing date are a normal part of the tendering process.

As for claims that government acted unfairly against Puddister Shipping when it refused to extend the tender deadline, the judge ruled that "government was motivated to deny the request for an extension by its concern to meet the stated objective of having a new service operational by May 1, 2000."

The bid by Puddister Shipping for the Cozumel II was rejected for several reasons - insufficient vehicle capacity and failure to demonstrate that the vessel tendered would have a closed bow and vehicle deck for protection from weather. Justice Mercer said: "The evidence is therefore clear that the Cozumel II was found to be deficient in two respects and was not disqualified on the basis of insufficient vehicle capacity alone."

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

2000 03 27                                                     9:30 a.m.