Sole-source contracts for Watson Lake's new multi-level care facility are entirely justified, above board and probably the first of many, says Health Minister Peter Jenkins.

The fact that $351,000 in sole-sourced work went to the father of a fellow cabinet minister in the riding of Premier Dennis Fentie did not demand that the Yukon Party government stick to the more traditional tender process for the work, he said in an interview Monday.

The community, Jenkins insisted, wanted Ivan Raketti of Raketti Construction as the man in charge of its new $5-million care facility.

The contractor has a proven track record of quality work, and can ensure maximum benefits flow from the project to the community and its residents, Jenkins said.

'He was the project manager selected by the contractors association in Watson Lake and the chamber of commerce of Watson Lake,' Jenkins said.

The minister said there was a third group recommending Raketti, but he could not recall its name.

'It was a decision by the community of Watson Lake, that was supported by cabinet.'

Jenkins emphasized, however, that at no time whatsoever did Tourism and Culture Minister Elaine Taylor Raketti's daughter participate in any discussions surrounding the contract awards.

Raketti Construction was awarded a seven-month sole-sourced contract in early July to project-manage the work, approved by Jenkins. Four days later, the company was awarded a $281,000 sole-sourced contract to complete the necessary foundation work.

Under general policy, the government is supposed to call for interest from at least three companies or advertise proposed contracts of between $25,000 and $50,000; and call publicly for bids on any contracts in excess of $50,000, unless the minister responsible authorizes sole-sourcing the work.

While some in the contracting business and members from opposing political parties do not question Raketti's capabilities or the quality of his work, they are critical of what sort of message the Yukon Party government is sending and the public perception being created.

Mike Johnson, a construction engineer and president of the Yukon Contractors Association, says the decision to sole-source this level of work is a significant departure from the normal bid process to ensure the public gets the best value for its dollar.

The public tender, he said, is recognized as the best way to ensure the public does receive the greatest value for its dollar.

'We understand they want to make sure there is as much local involvement as possible, but what it does is it precludes competitive interests in Whitehorse from even getting a look at something,' Johnson said.

He wonders if it creates a precedent or perception that Yukon government work will go only to companies from that community.

'Is it Watson Lake today, and Haines Junction tomorrow?' he asked.

This is not Toronto or Vancouver, where companies have the advantage of large populations and the luxury of staying fairly close to home to find work, he pointed out.

With 30,000 people in the territory, he said, contractors need to be able to move around.

It would be in nobody's interest to be restricted to bidding on government work only in the community where they reside, Johnson said.

And contractors, he added, are fully aware of the cost benefits of using the local workforce and suppliers to meet as much of their labour needs as possible.

There is also the danger of creating the expectation that contractors need to be government-friendly if they want work, Johnson said.

Opposition Leader Todd Hardy said Fentie's government likes the sole-source way of doing business.

But if there was ever a time to stick with the public tender process, it was with Watson Lake's multi-level care facility, if for nothing else, because it's in the premier's riding, he said.

Liberal Leader Arthur Mitchell said he can't believe Jenkins and other cabinet members would go this route, and put their colleague, Taylor, in what has to be an uncomfortable position.

The circumstances alone, the premier's riding, the relationship between the contractor and a member of cabinet, should have clearly spelled out the need for public tender process, said Mitchell, who is currently running in the Nov. 21 Copperbelt byelection.

'But now we don't know if there was another company or consortium, perhaps a first nation, capable and interested in bidding on this, and if not, it would have gone to Raketti anyways,' he said.

'So if the Whitehorse Chamber of Commerce recommends Pelly Construction get a contract, then we don't talk to Golden Hill just because the chamber says so? That is not how government is supposed to work.'

Jenkins said by sole-sourcing the work to Raketti, the government ensures the benefits of the project remain in the community.

Going to public tender, he said, would probably have seen the work go to a company from B.C., Alberta or Saskatchewan, given the capabilities of Yukon companies to post bid bonds for a job that size.

Jenkins also suggested a public tender process is not necessarily the most effective method of getting the best value in a 'super-heated market' for contractors.

'This is a win-win situation for the Yukon,' Jenkins insisted. 'I don't think people are concerned about it in Watson Lake, and I know the Yukon is going to receive very good value for its money.'

The minister also suggested the entire $5-million project cost could be sole-sourced, based on the project management structure in place in Watson Lake.

Raketti has the necessary professional assistance at his side, Jenkins said, with the involvement of both a project engineer and an architectural engineer.

'They are moving this project ahead.'

To date, there have been six contracts sole-sourced for the multi-level care facility, explained John Greschner, deputy minister of Health and Social Services:

ï the two to Raketti Construction for $351,000.

ï $50,000 to Liard Engineering and Management.

ï $3,000 to Dorward Engineering Ltd.

ï $21,000 to EBA Engineering.

ï $33,750 to Sinoltor (or Sinclair and Associates).

Greschner said there will be no more contracts awarded until cabinet accepts the final design package, expected to be sometime in the next month.

Whether future contracts will be sole-sourced will be up to cabinet, he said.

Raketti's contract for project manager will expire Dec. 31. Greschner said it would be his recommendation to cabinet that it maintain a project manager for the job, which he expects will be completed next year if everything stays on schedule.

Pat Living, the department's communication officer, said this morning that three more sole-source contracts have been advanced to cabinet for approval, though nothing will happen until final design is approved, she said.

The three additional sole-source contracts were recommended from within the department, based on discussions within the Watson Lake community, she said.

Living said she could not reveal the value of each contract proposal. She indicated that combined, they make up something less than a third of the remaining $4.5 million budgeted for the multi-level care facility.

Peter Densmore of Ketza Construction said Jenkins' suggestion of a 'super-heated market' applies to down south, where oil and gas activity is the driving force, but not in the Yukon.

There are at least five companies in the Yukon that could have bid on that job, said Densmore, whose company is just finishing up the new Canada Games Centre in Whitehorse.

The government's decision to go the sole-source route for the Watson Lake project is a breach of standard protocol used by governments across North America to ensure taxpayers get the best value for their money.

The public tender process for work above the value outlined in government policy is the best way to provide that assurance, Densmore insisted.

He suggested the government can't go around choosing what companies it wants for different work of this magnitude in certain communities.

'They are a territorial government, and they have to look at the bigger picture.'