A number of key players in the Ottawa Confederation Phase 1 tender were worried that the $ 2.1 billion budget was not big enough to attract proposals for the massive infrastructure project, a public light rail investigation said Tuesday.
Rob Pattison, who heads the LRT department for the Provincial Infrastructure Agency of Ontario, told the commission Tuesday morning that he had been told “the budget is not for debate” and was worried that no one would apply for the 12.5-kilometer project. LRT, which was opened with a delay in the 2019 schedule.
“That’s the amount the city had to spend,” Pattison said. “And, you know, that raised the flag of, you may have a failed order.”
Even the former city manager, who oversaw public procurement for LRT, said in a May 30 interview that he feared bidders might fail to collect bids that met the price ceiling, especially since the tunnel in the center of the city poses a certain risk to builders.
“Personally, I don’t know if I was ever comfortable until the day we opened the bids and we had claims that we would be able to continue,” Kent Kirkpatrick told the commission’s lawyer.
In the end, however, two of the three selected consortia had bids of up to $ 2.1 billion, including the winning Rideau Transit Group (RTG) receiving the highest score.
Many problems with the Confederation Line, especially the two derailments last summer, have led the province to call a public inquiry into what went wrong with the project. (Jean Delil / CBC)
Budget constraint under surveillance
A public inquiry into the LRT in Ottawa, convened by the province last fall, is investigating what trade and technical problems may have led to problems with the Confederate line, starting as planned, especially the two derailments last summer.
The commission, led by Ontario Court of Appeals Judge William Hurrigan, looked at the project somewhat chronologically and spent the first two days focusing on the procurement process – including whether the project’s budget could have limited the quality of the line.
The $ 2.1 billion budget for LRT was set in 2009, but it was preliminary: it was before any detailed engineering was completed and did not take inflation into account.
At the same time, federal and provincial governments at the time pledged only $ 600 million to the project.
In the following years, the city and its experts found ways to keep the project within budget, including shortening the city center tunnel, relocating it so that it was shallower, and shortening station platforms – all problems that are expected to to be resolved former deputy Nancy Sheppers asked when she would appear at the investigation on Wednesday afternoon.
Trust professional offers
Investigation lawyers pressured witnesses to see if the city’s budgetary inflexibility had implications for the quality of the project and whether there was political pressure to keep the price down.
“Have there been discussions about whether the budget or the ceiling poses a risk or increases the risk that the private sector will exceed its promises in its bids to go under the ceiling or fulfill the budget?” Tuesday afternoon.
Kate McGran, co-advisor to the Ottawa Light Rail Investigation Department, spent hours interviewing former city treasurer Marian Simulik about the budget and funding model for the Cofnederation line. (Frederick Pepin / Radio Canada)
Simulik not only denied such discussions, but said the city is confident that the consortia bidding for the project, which consists of giant multinational corporations, will gather professional proposals.
“In principle, we have trusted the private sector to act wisely and present a document or offer that reflects what they think will be the cost,” Simulik told the commission.
Pattinson also said on Tuesday that the fact that two price-responsive proposals had been submitted was proof that the budget seemed feasible for many experienced corporations applying for the project.
Both Simulik and Pattison said it was not uncommon for a project to be budgeted, something investigative lawyers speculated could happen.
Marian Simulik, the longtime former treasurer of the city of Ottawa, appeared on June 14, 2022, before the commission investigating the Confederate line. (Kate Porter / CBC)
Pattison said that sometimes there is a number and you can’t exceed it and you’re ready [scale it back] or kill the project if you can’t fit in. “
The study found that the city’s request for proposals includes an emergency plan in case all applicants go over the budget, which would require additional approval from the council.
Along with Sheppers, John Trayanopoulos of Infrastructure Ontario is also on schedule for Wednesday’s hearing.
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