Yukon gov't minister ignored watchdog to hand out $1.3M contract

A Yukon government watchdog's recommendation to put a telecommunications contract out for competition was overruled in April by Economic Development Minister Stacey Hassard, who signed an exemption so the contract could be sole sourced to a Whitehorse company.

The contract was part of a $3.8 million pilot project to install what's called a "Municipal Area Network" (MAN) in several Yukon rural communities.

According to a government news release, it will "provide faster internet" and "enhance e-services" at schools, health centres and territorial government buildings.

Documents obtained by CBC through Access to Information said the government had negotiated a three-year, $2.1 million contract with Whitehorse-based Total North Communications to carry out the pilot project. The contract was not put out for competition.

On Thursday, the government released new numbers saying Total North was eventually awarded a $1.3 million contract and Northwestel an additional $2.5 million as part of the project. The government's contract registry does not indicate that a contract has been signed with Northwestel at this time.

The Total North deal far exceeds the government's limit of $75,000 for direct-award contracts and the $100,000 limit that Yukon has agreed to with other Canadian jurisdictions.

The government's Procurement Support Centre analysed the original Total North contract and recommended that it be put out for competition, instead of a direct award.

But Hassard dismissed the recommendation and ultimately OK'd the sole source contract.

In the release issued Thursday, Hassard said the pilot project would provide benefits to youth and college students, health care improvements and development opportunities for the local information technology sector.

The Procurement Support Centre, however, said there was no evidence that the same objectives could not be met through an open competition.