Whitehorse Daily Star

Image title

Photo by Stephanie Waddell

LAYING OUT THE PROBLEM – Rick Savage of Castle Rock Enterprises explains to city council his concerns about how city officials treated his company's bid for asphalt overlay work.

Potential suit hinges on contract award

The city could face legal action depending on how council decides to award a contract next week.

By Stephanie Waddell on June 6, 2013

The city could face legal action depending on how council decides to award a contract next week.

At Tuesday evening's city council meeting, Castle Rock Enterprises' Rick Savage provided council with the legal opinion the company has sought over the proposed award for the asphalt overlay program this summer after his company's bid was rejected.

The only other bid on the project is the one recommended for award from Skookum Asphalt for $867,084, about $32,000 over what Castle Rock had bid.

Savage took issue with the city rejecting his company's tender as incomplete.

While Savage acknowledged the documents did not include the required résumés of the top supervisors who would be in charge of the project, he argued the bid should not be rejected based on that alone.

"It's a very frivolous issue,” he said in an interview following his presentation.

The tender documents, he said, include a clause that allows the city to seek further information prior to making a recommendation.

All city officials needed to do was to pick up the phone and call Castle Rock for that additional information, he added.

He pointed out Castle Rock has worked on a number of city contracts in the past.

"(City) staff are fully aware of our capabilities,” he said.

The most important factor in a tender, once all the criteria are met, is the price, Savage added.

The company added paving to its business in the last couple of years, he said, which has helped reduce the cost of paving throughout the city.

Losing this contract could seriously impact the company's ability to stay in the paving business, he warned.

Castle Rock submitted what it thought were all the required documents based on what was in the tender package.

When no one called for more information, officials were left with the impression the city had what was needed.

That was until Castle Rock was informed the bid had been rejected.

After his presentation, Savage reiterated he's never seen a bid rejected based on something so frivolous.

Normally, if a bid is rejected, it's because of major errors in the documents submitted, he pointed out.

With a tender process, once the tenders are reviewed to ensure they all meet the criteria set out, it comes down to pricing, with the lowest bid winning.

Savage said he hopes that over the next week prior to council's vote on the contract, council will review all the documents available on the matter and reconsider the bid award.

Questioned whether Castle Rock will move beyond obtaining a legal opinion should the work be awarded to Skookum, Savage replied, "We may have to (take further action).”

The city, however, has its own legal opinion on the matter.

It contends that the tender submitted was in non-compliance, so could not be considered for awarding.

Acting city manager Brian Crist said there were three specific references in the tender package to the résumés of supervisory staff required.

The city, he said, wants to ensure the contractor has all the required expertise needed for the job.

While tenders are price-driven, the documents must first meet all the requirements of the tender package before the price comparison between bids can be made.

Skookum's bid of $867,084, which is still well below the engineer's estimate of $986,261, would be for asphalt work planned this year:

• in Arkell on Heron Drive;

• in Riverdale on Selkirk Street, Liard Road, Firth Road, Pelly Road, McQuesten Road and at he roundabout at Nisutlin Drive and Lewes Boulevard;

• in Porter Creek on Wann Road and Cedar Crescent; and

• downtown on Second and Fourth avenues.

Comments (12)

Up 0 Down 0

DMZ on Jun 13, 2013 at 5:20 am

hmmm, Rick Savage had a detailed letter to the editor in the paper, which I mentioned. One of his points was that he found out another contractor had inquired about the issue and got an answer but an addendum wasn't issued. I said in my comment "if it happened" so I don't feel I was out of line in my comments.

I'm willing to believe it because I've seen it again and again. Government employees often simply don't have a good grasp of tendering principles.

As for your comment about "simple facts in a solicitation document", I'm afraid you're the one who is missing the point. I can believe Rick Savage's comments (in his letter to the editor)about the ambiguity of the forms because that's how the city works.

Most of the time it's not worth making waves to either level of government. Apparently this time it's seen as worth pursuing.

Up 0 Down 0

Josey Wales on Jun 13, 2013 at 1:42 am

DMZ is correct, a big culture of secrecy has infected both this town of Whitehorse AND the Territory. We will never see the big picture here as the culture is very very veeeery strong. I challenge anyone out here to think of one issue/topic that IS NOT ripe with this culture. Some will say how we may ever do this if the culture is so strong.

To that I say LOOK around you, one need not a media or inquiry to see what Rick is suggesting. Scads of folks hiding in AND "out" of their "offices"...family and friends having job descriptions written for them...government equipment/supplies being used at home or on their side jobs...for many in "The Machine" we work for them...rules do not apply to the nobles only the peasants.

I've lived here a long time, and I've never seen a more entitled attitude EVER up here in regards to Ricks points and my own. I know not Rick have ZERO dealings with he or the company, I too just see what he sees...and loathe the "complacency" we seem to have here...tolerating it all?

Up 0 Down 0

hmmm on Jun 12, 2013 at 6:22 am

I am astounded at the comments made by people after reading an article and no mention of the information is found in the article. Nowhere in the article does it say one company was given information that the other was not. He is complaining that he did not submit the resumes which was a requirement. Thus it is a incomplete bid. You can't go back and "cure" a bid by asking for missing information. That is illegal as I said already. You can ask for clarification on information provided as long as it does not alter the bid. Wow please people don't go into public procurement if you can't understand simple facts in a solicitation document.

Up 0 Down 0

Jackie Ward on Jun 12, 2013 at 4:20 am

Well, when I read in the Star as a CORRECTION, small little box, that he indeed submitted a résumé, that's what I will go off.

Up 0 Down 0

DMZ on Jun 11, 2013 at 1:39 pm

Rick Savage's (Castle Rock) letter in the newspaper is enlightening. I don't know why people are so willing to believe the city's processes are above reproach. Castle Rock isn't doing anything wrong here -- when you're in business you have to insist on fair tendering practices and sometimes you have to go to lengths to stand up for them.

The city needs to bring its own A game to the table. Letting one contractor have information another doesn't (as what Castle Rock says happened) is a gross violation of fairness.

There's a culture of secrecy around city business, it just doesn't make sense that they're not running into issues on an ongoing basis with all the tendering and construction going on. The law of averages says that.

So give a bona fide business man a break and the benefit of the doubt as he takes care of his business.

Up 0 Down 0

hmmm on Jun 10, 2013 at 5:18 am

Jackie sorry but the guy admitted he did not include resumes so sorry it's public record that he did not. You should give your head a shake on this one.

Up 0 Down 0

Joel on Jun 10, 2013 at 1:18 am

"While Savage acknowledged the documents did not include the required résumés of the top supervisors who would be in charge of the project, he argued the bid should not be rejected based on that alone."

Jackie, is the article wrong or are you?

Up 0 Down 0

Jackie Ward on Jun 8, 2013 at 8:50 pm

Castle Rock did indeed include a resume. So everyone above here is wrong. I hope they get sued. Go get em.

Up 0 Down 0

Joel on Jun 7, 2013 at 8:18 am

I have to agree. If you can't put in a tender, you shouldn't get the job. Price is a big part of every tender, but it is only a part.

If missing one job is going to put you out of business I think your business can't be doing that well.

Up 0 Down 0

Sharon griesley on Jun 7, 2013 at 6:33 am

I thought this mayor and council was all about increasing revenue without raising taxes....this would be a good start don't you think? Seems like an intentional road-block for this company that has obviously worked successfully for the city in the past. Sounds fishy to me...

Up 0 Down 0

hmmm on Jun 7, 2013 at 5:16 am

I am not offering a legal opinion but, my personal opinion.

I work in procurement and I will warn the city that if you had done what Mr. Savage said you would find yourself being sued by the other company because that is called bid fixing. Mr Savage you should get proper legal advise because the lawyer who told you you have a case based on this is wrong!! You did not submit a complete bid and therefore your bid considered incomplete. This is also not frivolous as it is called bate and switch and companies do it all the time. They will either not put the resumes forward or once the award is done switch the personnel. The reason why the government wanted this is to ensure you don't do that I am sure.

Up 0 Down 0

jimmy on Jun 6, 2013 at 2:51 pm

If you cant figure out how to put everything asked of you in your tender response you should not be awarded it. For a contract that large figure it out, obviously other people manage.

Add your comments or reply via Twitter @whitehorsestar

In order to encourage thoughtful and responsible discussion, website comments will not be visible until a moderator approves them. Please add comments judiciously and refrain from maligning any individual or institution. Read about our user comment and privacy policies.

Your name and email address are required before your comment is posted. Otherwise, your comment will not be posted.