Local companies were faced with a murky tendering process and unfair competition from a multibillion dollar transnational corporation when looking to bid on Canada Winter Games contracts, Whitehorse business owners say.

In an interview Saturday, Yukon Meat and Sausage owners Sandra and Ralph Wohlfarth said they were told they would be the official meat supplier to the Games.

They were subsequently disappointed and confused with how a contract to supply food to athletes, coaches and managers was handled by Yukon College.

Sandra said following a request to raise their initial $1,000-sponsorship contribution to the Games last April, the couple was asked to provide quotes to Yukon College to supply meat for the event.

She said while the couple was led to believe they would be awarded $35,000 worth of business to the event, they were surprised that after months of discussions with the college, the entire food contract was put out to tender in December.

'In April, we were approached to increase our sponsorship and to consider being part of the college's needs.

'We increased our sponsorship and began discussions with the college at the same time,' she said.

'The items we provided quotes for, we believed we were going to get,' she said.

Sandra said a number of businesses were informed that sponsoring the Games could improve their chances of being awarded Games contracts.

According to a July 19, 2006 letter from the Games sponsorship fulfillment co-ordinator, Kendra Issak, sponsors were told they would be considered first in contract awards.

'One of the benefits of being a sponsor is improved exposure and access to business opportunities associated with the Games. We are committed to ensuring that sponsors and friends of the Games are considered first as preferred suppliers.'

Sandra said after spending nearly 25 hours collecting and providing quotes to the college, the couple decided they had had enough and decided not to bid in December's tender.

Ralph said the couple became confused two weeks ago when they were informed by college officials they had been awarded an $8,500-portion of a contract they hadn't bid on.

'The contract had already been given to somebody else, and then it was given to us,' Ralph said.

He said while they are happy to receive the business, they're not sure how they got it.

They are disappointed with the way Yukon College handled the matter, they added.

Paul Sippel, the president of Sippel's Fine Foods Inc., said he was also disappointed in how food contracts were handled.

Sippel said he refused to bid in December's tender when he became aware he'd be bidding against a huge corporation he could not hope to compete with.

'The process shouldn't go strictly to tender. It should have been split up and given to everyone and given everyone an equal opportunity to share.

'How can I compete? It's cutting out the private sector and leaving a bad taste in the mouths of local business.

'As a federal event, I think it should be bringing local private sector business some dollars to support the local economy instead of tendering out to an American conglomerate,' Sippel said this morning.

December's $500,000-food contract was tendered in December and awarded to Sysco Corp. in January.

According to the Games website, Sysco Corp. is not a sponsor in the event.

Sysco, according to its website, has over 170 locations in North America and over 47,000 employees.

'Since the initial public offering in 1970, when sales were $115 million, SYSCO an acronym for Systems and Services Company has grown to $30.3 billion in sales for fiscal year 2005,' the company's website states.

Sippel's concerns follow the sponsorship pullout of G-P Distributing Inc.

On Jan. 11, G-P revoked its $30,000 in-kind sponsorship after learning the majority of the college's $500,000-food contract had been awarded to Sysco.

G-P was to provide the Games with refrigerated food storage and transportation services.

Kyle Doll, G-P's owner and operations manager, told the Star he had revoked his sponsorship when it came to light he would be expected to store and transport his competitor's products.

'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,' Doll said.

'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 was awarded $79,000 worth of the $500,000-contract but refused the business. He did so because he was disappointed the majority of the business had gone to an American conglomerate that didn't appear to meet the terms of reference as outlined in Yukon College's tender package.

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?'

Brad Hudson, with Sysco's Edmonton office, told the Star this morning his company has no warehouse space in Whitehorse.

'We don't have a warehouse there. I can tell you that Pacific Northwest is our carrier.'

He said he was not able to comment on the matter in detail and questions would have to be referred to Sysco's Houston office.

Wayne Coghill, Yukon College's director of administrative services, said this afternoon while he couldn't comment on the specifics of the tendering process, Sysco Corp. did meet all the criteria.

Sysco, Coghill added, is the company which regularly supplies the college with food.

Coghill said he would have to look into the details of how Yukon Meat and Sausage received $8,500 worth of business without bidding on it.

Last week, Games manager Chris Morrissey said companies should not expect business as a result of sponsoring the event.

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

Games and Pacific Northwest Freight Systems officials could not be reached for comment by press time this afternoon.

With files from Stephanie Waddell.