EPC votes to award $115-M sewage plant upgrade development contract to Canadian arm of U.S.-based company

The Canadian branch of a U.S. company is one vote away from winning a $115-million North End sewage treatment plant upgrade contract Winnipeg’s mayor expects will produce many local jobs.

Council’s executive policy committee voted to award the development phase agreement for the third and final portion of the $3.1-billion upgrade project to Kiewit Construction Services, pending final city council approval.

The company is a branch of Kiewit Canada Group, whose parent company is located in Omaha, Neb., according to its website.

While there has been a renewed push for governments to buy local in and beyond Winnipeg, Mayor Scott Gillingham said this contract should prove very beneficial to the city’s economy.

“This is Kiewit Canada Group. They’re employee-owned, they have approximately 4,000 employees across Canada. They have been in Canada for 85 years,” said Gillingham.

A city staff report notes the Kiewit bid also includes local engineering firm KGS Group, which was founded and is headquartered in Winnipeg.

The report lists three bids that were shortlisted to compete for the work.

A joint venture of Graham Infrastructure LP and PCL Constructors Canada Inc. also submitted a bid, as did Red River Nutrient Partners, a group that includes Aecon Water Infrastructure Inc., Oscar Renda Contracting of Canada Inc., and MWH Constructors Canada Ltd.

“Every (group) that bid on these projects has both a presence in Canada and the U.S.,” said Gillingham.

Websites show Graham Infrastructure and PCL Constructors both have headquarters in Canada and offices in the U.S.

Aecon also lists a Canadian headquarters and some U.S. locations, while Oscar Renda and MWH Constructors appear to have parent companies headquartered in the U.S.

The mayor said the winning bidder scored the most points on a technical, financial and interview evaluation and will meet requirements of the federal government’s Buy Canada policy.

To secure provincial funding, the contractor would also be required to fulfil a Manitoba jobs agreement to employ local staff.

“Ultimately, this is good for the people of Winnipeg. It’s good that we had a competitive bid process. That means that it’s better for taxpayers and ratepayers and, ultimately, it means the City of Winnipeg, after years of delay, is proceeding with the final phase of the North End (sewage treatment plant upgrade),” said Gillingham.

The Free Press called at least one company from each group of bidders, including Kiewit, but did not receive responses by 5 p.m. Thursday.

Tanya Palson, executive director of Manitoba Building Trades, said companies with headquarters in Canada are typically viewed as Canadian, including PCL.

“While we would have liked to see this go to a local construction project manager, our main focus is, regardless of who wins it and where they may be headquartered, that they… have strategies in place to employ local labour,” said Palson.

Manitoba Building Trades represents 13 unions with more than 8,000 construction workers.

Palson said a Manitoba Jobs Agreement tied to the project will require the contractor to prove they’ve exhausted the local workforce before they can bring in workers from outside of the province or country.

“It will create a lot of jobs,” she said.

Such a large and complicated project typically would attract only larger companies, limiting the pool the city can choose from, Palson said.

“There’s only so many companies who can do this type of work… they’re going to be multinational in order to do something like this,” she said.

Coun. Ross Eadie, chairman of the water and waste committee, agreed.

“This is an element of huge projects that require internationally based companies to undertake the work. There are no… all-Canadian companies that can do the work. You need to have expertise working on this,” said Eadie (Mynarski).

Coun. Brian Mayes said he’s pleased the city succeeded in attracting multiple bids for the work.

“There’s a lot of technical knowledge needed to do a project of this magnitude. I was amazed they got a couple of bids on this,” said Mayes (St. Vital), a former chairman of water and waste.

The councillor said he asked city staff questions about how local each bidder should be considered.

“There’s always going to be a line here somewhere (in terms of) what do you mean by ‘Canadian enough?’” said Mayes.

The award is currently limited to the $115-million development phase agreement, which will help design the project and determine its cost, scope, schedule and risks.

If the company and city reach an agreement through that process, Kiewit Construction Services would become the project’s design builder.

“There can be no doubt this gives the inside track for the whole construction,” said Mayes.

City council is expected to cast the final vote on the contract Sept. 24.

joyanne.pursaga@freepress.mb.ca

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