Bypass, hospital builders top-paid gov’t contractors
In 2017-18, consortiums received almost $700M from public purse
SASKATOON The consortiums behind the Regina Bypass and the new Saskatchewan Hospital in North Battleford were once again the highest-paid government contractors last year, accounting for almost three-quarters of a billion dollars in payments.
Public records show that SGTP Highway Bypass Limited Partnership received $565,413,624 from government coffers last year, while Access Prairies Partnership was paid $123,139,813 from the public purse.
The money paid to the bypass consortium last year and the $536,129,677 it was paid in 2016 are exponentially more than the $400 million the bypass was originally estimated to cost, before its scope was expanded.
Those sums dwarf what was provided to the third-highest-paid government contractor last year: the highway construction company Langenburg Redi Mix Ltd., which received $36,236,813 in the 2017-18 fiscal year.
Two other highway construction companies — Potzus Paving and Road Maintenance Ltd. and HJR Asphalt Ltd. — were also among the top 10 highest-paid contractors, all of which made at least $20 million.
Also among the top 10 companies and organizations to benefit from large government contracts were IBM Canada Ltd., Saskatchewan Research Council, Peter Kiewit Infrastructure Co. and Aecon Transportation West Ltd.
The $21,812,824 paid to BMO to cover purchase cards issued to the Ministry of Highways and Infrastructure also ranked among the top 10 government supplier expenses reported for last year.
Although it didn’t crack the top 10, the Ministry of Justice was the next highest-spending government ministry in 2017-18, with BMO purchase card charges totalling $13,552,325.
Altogether, the provincial government paid 162 companies, organizations and municipalities $1 million or more last year, down slightly from 165 in 2016-17. Sixteen of them were paid more than $10 million, compared to 18 in the previous year.
The bulk of the companies to receive the largest government contracts do infrastructure work — construction, paving, consulting, engineering. Others include aviation, automotive, real estate, finance and energy companies.
There are others, too, including at least three pharmaceutical companies paid by the Ministry of Health: Abvie Corp. received $1.4 million, Pfizer Canada Inc. got $3.7 million, and Sanofi Pasteur Ltd. was paid $1.3 million.
Those contracts covered vaccines and antibodies, according to the government.
In both years, the Ministry of Central Services paid at least $1 million to a numbered company: 101049086 Saskatchewan Ltd.
While the money was paid to lease property from the numbered company last year, it’s “standard practice not to identify the exact property location” to avoid affecting future lease renewal discussions, the government said.
The Ministry of Health also bought $2.4 million worth of lab supplies from Siemens Healthcare Ltd., which according to its website, supplies medical imaging, diagnostics, tests and other health care-related products and services.
The government also paid $1.1 million to Phoenix Advertising Group Inc., a Regina-based advertising agency, and $1.8 million to the security and investigation firm SRG Security Resource Group Inc., which is also headquartered in Regina.
Much of the money paid to the advertising agency was subsequently paid to media companies, including Postmedia, the province said. Around $600,000 was paid to “third-party vendors” to put Ministry of Economy advertising online.
The latter contract also came from the Ministry of Central Services, which it said covered “IT security and consulting.”
The Ministry of Highways and Infrastructure paid $12.6 million to Husky Oil Ltd. — money it says was spent on oil and liquid asphalt used for paving and maintenance such as sealing and patching roads.
Information about government contracts is included in the public accounts, which list contractors
and the sums they were paid, but no details about the type of contract or contracts signed with the province.