City coping with new buying realities

E-bidding now allows city to hear bids from U.S. and other nations

Post COVID-19, the competitive municipal bid process is under stress. Many small to medium sized companies that once regularly bid on city tenders have either gone out of business or merged with others in their field to survive, often leaving Kawartha Lakes with fewer choices when purchasing goods and services.

Two recent city tenders laid this trend bare as the city awarded an almost $200,000 baseball diamond infield restoration contract to a single source bidder who had merged with their main competitor to form a larger entity, and a $1.1 million ambulance contract to the only remaining company in Canada who also claimed the entire paramedic market to themselves after merging with their main competitor.

Is this lack of competition forcing the city to settle for inferior goods? Do these monopolies cost Kawartha Lakes citizens more than if competition existed? Are there additional restrictions on municipal purchasing that they have no control over?

The Advocate posed those questions and more to Kawartha Lakes chief of procurement Launa Macey.

In an exchange of emails, Macey shared her take on the current municipal bidding process.

“The municipality runs a competitive process whenever possible to ensure value and quality,” Macey said, “while adhering to legislation and standardization requirements. Because of our rural location, we face challenges such as distance from bidders or distributor territory restrictions.”

Macey points out that some city commodities have seen an increase in competition, while others have decreased.

“For example,” Macey said, “some companies feel they are less competitive due to supply chain issues as a result of COVID, including lack of supply or increased prices. However, the pandemic allowed us to rethink our (bidding) processes and move to an e-bidding format, removing the need for in-person public meetings. We now receive submissions from across Canada, the United States and other trade approved countries for some of our procurement. Casting the net wider has definitely been a good thing for the municipality.”

Macey directly addressed the additional issues they face in purchasing vehicles like ambulances that are governed by another layer of provincial regulation contained in the Ontario Provincial Land Ambulance and Emergency Vehicle Standards (OPLAEVS) administered by the Ministry of Health and Long-Term Care.

“Ambulances are governed by the OPLAEVS,” Macey said. “Demers and Crestline (past Canadian ambulance manufacturers) were the only two companies certified to this standard. The two companies merged…meaning there is now only one listed to choose from.”

When asked if she is concerned about buying from a monopoly, Macey had few qualms because of the track record for quality the newly merged company, based in Saskatoon, has blazed.

“While this (merger) has resulted in a monopoly,” Macey said, “these (provincial) standards ensure high quality and standardized units. This is very important when we are talking about life and death situations. When we share our units with bordering municipalities, having standardized units allows paramedics to provide rapid and consistent care.”

Macey shared an excerpt from the newly updated OPLAEVS regulations that make it clear that quality and standardization of fleets is the goal of the legislation, but that municipalities have to abide by single source bids for ambulances because the province has only approved Crestline as a provider.

“Ontario has a sound history of having high quality land ambulances. This has been achieved by setting standards for the construction and conversion of land ambulance vehicles that meet the need for patient care, delivery, and safety,” the legislation reads.

“The current version of the Standard,” the legislation continues, “describes the minimum requirements for new and re-mounted ambulances to be used in the province. Ambulances operated by (all) service providers must comply with this Standard. Compliance requirements for the Standard are accomplished through a series of performance tests. The test results are submitted to the Director, Emergency Health Regulatory and Accountability Branch for certification approval. Certification is necessary to show compliance with the Standard for any ambulance intended for use in Ontario. Demers and Crestline (now the same company) are the only ambulance contractors certified to the OPLAEVS.”

Macey believes that her department is doing their best to serve the taxpayers of Kawartha Lakes.

“The municipality is always committed to getting the best value for money while ensuring the quality and safety of services we provide,” Macey said.