New provincial rules attempt to level playing field
The provincial government unveiled its new procurement legislation Wednesday, promising it would “level the playing field” for Saskatchewan businesses.
While it’s not the sexiest topic in the world, the fact is procurement impacts almost every project in the province, from building roads, schools and hospitals, to supplying furniture in government offices and food in prisons.
Up until this point, contracts were awarded to the company that could provide goods or services for the lowest cost — period. Not anymore. Now, government ministries and Crowns will consider a much broader set of criteria, including a vendor’s history and their local knowledge of things like geotechnical concerns, environmental factors or local laws.
That’s not to say Saskatchewan-based companies will automatically be considered above a company from, say, Alberta — to do so would contravene the New West Partnership Agreement, of which Saskatchewan is a signatory — but it does mean companies from this province will get more of a look-in on government contracts.
SaskBuilds Ministry Gordon Wyant said “a number of other provinces” are moving toward a best-value approach, “so we’re really just levelling the playing field ... to make sure Saskatchewan businesses have an equal opportunity to compete.”
That thought was echoed by president of the Saskatchewan Heavy Construction Association, Shantel Lipp.
Lipp said the new approach will “create a more competitive industry.”
She also thinks it will allow her industry to be “more innovative,” saying there are a lot of innovative techniques and technologies being developed by Saskatchewan companies, “but there was never an opportunity (to use them), because with technology and with innovation there’s a cost associated with that, so now it’s going to level the playing field and make the industry stronger.”
The NDP welcomed the legislation, but deputy leader Trent Wotherspoon said it will be a moot point if the government continues to its push for public-private partnerships (P3s).
That’s because the very nature of P3s — huge projects with multi-million dollar pricetags — generally puts them beyond the grasp of Saskatchewan companies, which tend to be smaller than your average international conglomerate.
The NDP put forward a local procurement private members bill about a year ago.
Wotherspoon said Wednesday that had the government adopted that bill, it would have avoided “delaying action,” and perhaps would have allowed Saskatchewan companies more of a chance to get their hands on the big contracts government has “doled out” for the likes of the Regina bypass and jointuse schools.
Wyant stood by the changes, saying, “We think it’s a well-thought-out plan with a tremendous amount of consultation and the support of the industry in moving forward.”