Thank you, Mr. Speaker. I hope I get the questions to the right Minister here. This is towards the Minister of Infrastructure. Recently, I've been advised of a sole-source contract. It seems to be a little bit out of the ordinary, and I'm looking for some clarification. Can the Minister of Infrastructure advise this House if the department has entered into a sole-source contract with Imperial Oil for providing fuel for the communities that rely on GNWT? Thank you, Mr. Speaker.
Minister of Infrastructure.
Thank you, Mr. Speaker. Yes, the department has entered into a sole-source contract for a period of three years. Thank you, Mr. Speaker.
I appreciate the Minister's answer. He kind of took part of my next question. Can the Minister advise this House how much the sole-source contract is worth for this three-year period?
The term of the contract is three years. It has a value of approximately $54 million, depending on the volume of fuel that is required to resupply the communities by barge. It should be noted that either party can terminate the contract with proper notice, and the GNWT has saved approximately $600,000 per year with this contract.
I appreciate the Minister for providing that answer to us here today, and a little bit more information, as well. It was very helpful. Can the Minister explain why the contract was not sent out for tender process, and if he reached out to northern businesses to see if they are able to deal with this contract?
In 2016 the department issued a tender for a resupply of fuel, and Imperial Oil was the only company that submitted a bid because Imperial Oil is the only company in Hay River that owns the infrastructure to safely unload from rail to cars into the barges.
Masi. Oral questions. Member for Nahendeh.
Thank you, Mr. Speaker, and I thank the Minister for that answer. Mr. Speaker, this seems to be a large amount of money to be sole-sourced. I've looked at the Financial Administration Act, and I know the Executive Council made on behalf of the government authorized contracts, authorized to enter into a contract that falls within a class of contracts. However, the Executive Council must record its reasons for authorized contracts entered into these things. Can the Minister advise how he was able to enter a sole-source contract for this type of huge amount of money, and if there was a record of decision? Thank you, Mr. Speaker.
The department has the authority to enter into this sole-source contract, and it was posted and recorded on the Government of the Northwest Territories e-Procurement website. Thank you, Mr. Speaker.
Masi. Oral questions. Member for Tu Nedhe-Wiilideh.
