Whitehorse Daily Star

Yukon government seeks dismissal of company’s claim

The territorial government is appealing a Yukon Supreme Court decision in a dispute over its procurement process that would see it pay more than $300,000 to a local transcription company.

By Emily Blake on December 14, 2017

The territorial government is appealing a Yukon Supreme Court decision in a dispute over its procurement process that would see it pay more than $300,000 to a local transcription company.

Justice Myra Bielby ruled in favour of Mega Reporting Inc. on Nov. 16, awarding it damages totalling $335,844.93 plus interest.

The company had sued the government alleging its evaluation of bids for a court transcription contract in early 2014 was unfair.

It also claimed the evaluation process contradicted principles of accountability and transparency cited in the Department of Highways and Public Works’ Contracting and Procurement Directive.

Legal counsel for the government is now asking that Mega’s claim be dismissed with costs.

During trial, Mega had raised the issue that no contemporaneous notes were taken during the evaluation of its proposal – and that the evaluation committee did not record the reasons for its decisions.

An expert on government procurement also concluded the process was neither fair nor transparent. He said the request for proposals had insufficient information.

The government, however, disputed allegations of unfairness, noting that the same process was applied to Mega and the successful proponent.

It also argued any disputes should have been dealt with through its dispute resolution mechanism. Mega had missed the deadline for the bid challenge process.

The government further claimed that Mega was barred from claiming damages due to a waiver in the request for proposals which waived “claims for damages from actual or alleged unfairness on the part of the Yukon Government at any stage of the request for proposals process.”

In her written decision, however, Bielby found, “To give effect to the waiver would permit Yukon to continue to represent to the public that it engages only in fair, accountable, open and transparent procurement processes without suffering any consequences for not doing so.

“In other words, it would allow Yukon to say one thing and then to do the opposite with impunity.”

She also noted that the public “has an overriding interest in making sure that its funds are being expended in such a manner as to ensure the competent provision of adequate goods and services at a reasonable price.”

Mega has yet to respond to the appeal.

Comments (5)

Up 0 Down 0

Just Sayin' on Dec 20, 2017 at 2:00 pm

Sigh! Another YTG procurement issue that the tax payer will have to pay for. That being said, perhaps if the Government had qualified people in positions rather than friends of friends, then the YTG would not have to pay out so many of these cases. I wonder how many other payouts have occurred which YTG has not disclosed.

Up 1 Down 0

The Government is above Court challenges on Dec 15, 2017 at 3:16 pm

Hi Mr. Premier what are you going to do about the unfairness?

Up 2 Down 0

Yukon Liberals on Dec 15, 2017 at 11:45 am

were going to change the bad contracting out system in the first 90 days.

Up 1 Down 0

CJ on Dec 14, 2017 at 6:47 pm

"The same process was applied to Mega and the successful proponent". What does that mean? Out of two submissions, one was going to get it. That one of them was successful doesn't mean it was a fair process. It doesn't even mean they shouldn't have got it.

It's really too bad the government is dragging Mega through as expensive a process as possible. I guess it serves as a deterrent to anyone who questions the process, though.

Up 2 Down 0

My Opinion on Dec 14, 2017 at 3:37 pm

The whole process needs work.

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