A Yukon business owner is wondering why an American company he believes doesn't appear to meet Canada Winter Games contract requirements was awarded hundreds of thousands of dollars' worth of business while a local operator who met the specifications was not.

Kyle Doll, G-P Distributing Ltd.'s owner and operations manager, told the Star this morning he revoked his $30,000 Games sponsorship because considerations promised to his and other Yukon companies in gaining business contracts for the event never materialized.

He maintains Yukon businesses were led to believe that sponsorship of the Games would go a long way to helping local companies secure business contracts.

'Discussions took place between G-P Distributing and the Canada Winter Games Sponsorship Committee in January, 2006,' Doll said this morning.

'At the time, it was my understanding from that committee they wanted to form a partnership and support local business. In return, local businesses were expected to provide sponsorship which would be taken into consideration when awarding contracts.

'I agreed to sponsor $30,000 worth of in-kind services, including procurement of additional reefer and freezer space. It was made clear at the initial meetings I'd not be willing to warehouse competitors' products for obvious reasons, including staff morale, liability issues from the time of accepting delivery of the competitor's products to delivery for preparation.'

He said he had no plans on transporting a competitor's product either.

Doll said prior to the tendering process, he was never made aware that Yukon College and not the Canada Games would be tendering the contract for food destined for the tables of coaches, athletes and managers.

Doll told the Star he's concerned the U.S. company awarded the contract, Sysco Corp., didn't actually meet the requirements as laid out in the Yukon College tender package, as he wasn't sure the company had its own warehouse space available as laid out in the tender package's terms of reference.

According to section four of the tender package's terms of reference, companies bidding on the contract were asked how much warehouse space they had available.

'Please ensure that you CLEARLY indicate in your submission the following key items ...

'The available warehouse space that you have in order to store products and ensure on-time deliveries,' the terms of reference state.

'Delivery services; what equipment do you have? If you contract this work out, who do you propose to use?'

Doll said he's curious to know why Sysco was awarded the contract if he was expected to store the food and deliver it at his own expense.

'Although it had not yet been asked, my suspicions were confirmed when this week's Wednesday, January 17 edition of the Whitehorse Star clearly indicates I was going to be asked to warehouse, store and deliver $500,000 worth of my competitor's goods.

'Labour costs alone from time of delivery of the competitor's goods at my warehouse, through delivery of those groceries to the college would have increased my sponsorship by thousands of dollars in addition to the already-committed $30,000.

'As with any business, there is a limit as to how much G-P Distributing can sponsor in our community before there are severe financial repercussions for my business,' Doll said.

After the initial surprise in December that Yukon College was tendering the contract, he added, he was disappointed his company was only being considered for $79,000 worth of a $500,000 food contract which was awarded to the American company.

'On January 3, 2007, a majority of the contract was given to a U.S.-based conglomerate; they've provided no sponsorship to the Games and employ one Yukoner, G-P Distributing was awarded about 20 per cent of the total contract,' Doll said.

He said he wasn't satisfied with the portion of his contract, which included items such as milk and bread.

Earlier this week, Games officials said they're currently searching for space to store Sysco's food.

Games manager Chris Morrissey said this morning his organization has received a large number of calls offering to help out with the food storage dilemma.

'There's been an outpouring of calls, literally.

'We're looking for space not just for food services; we're looking for storage for other things as well, things such as water.'

Morrissey said he wasn't aware if Sysco has the warehouse space and delivery trucks outlined in the tender package.

'I don't have that information on hand. I would refer you to my colleagues at Yukon College; they handled the tender.

'As far as I'm concerned, this matter is closed.'

In an interview Tuesday, Morrissey said he was disappointed with G-P's action.

'We're disappointed they've taken this course of action, that they've pulled their sponsorship at this time. We're here to deliver the Games in five weeks.'

Morrissey said Games officials explained to G-P staff in a meeting that companies that sponsor the Games are not given preferential treatment when it comes to the event's contracts, which are issued in a tendering process.

'We want to make it perfectly clear that because you are a sponsor of the Games doesn't guarantee you work at the Games,' Morrissey said Tuesday.

Wayne Coghill, the director of administrative services for Yukon College, said Wednesday the bids in the tendering process were weighed based on food values.

He said the contract was originally awarded to two companies but was later given entirely to Sysco when the other company declined its part of the awarded business.

Games president Piers McDonald said Wednesday he was disappointed to hear that G-P was pulling out but that he stood by the tendering process.

'We do need to ensure the integrity of the process, that it's open and fair.

'It's always unfortunate when misunderstandings or concerns arise.'

McDonald said he hoped another local business or businesses could step in to lend a hand.

Sysco officials were unavailable for comment.

See letter, p. 12.