A local automotive dealership has found a couple of surefire ways to successfully earn contracts from the City of North Bay — be the lowest (or only) bidder.
Tuesday, North Bay City Council will be asked to approve the award of two contracts to Farquhar Chrysler totalling $499,375.
The first contract is for the supply and delivery of four Class 5 dump trucks. According to the staff report, Farquhar Chrysler's bid of $338,616 was lower than Cambrian Ford Sales Inc.'s offer of $349,581 and was deemed to provide the best overall value to the City. The evaluation considered "mandatory technical requirements related to the vehicle’s performance and features, and price."
The second contract for $160,759 is to provide a work truck with a lifting device, plus the related onsite training. Farquhar Chrysler's proposal — the only one received — met all the requirements and the evaluation team considers the local company's bid as "fair and reasonable."
In March 2021, Farquhar Chrysler's bid to outfit the City of North Bay with three new half-ton pickup trucks came up just $744 short of the winning proposal of $117,930 by Blue Mountain Chrysler Ltd., based in Collingwood, Ont.
See related: Local company again a close second as recommendation to Council would see trucks purchased from out of town
The near-miss by Farquhar caused an uproar locally as many saw the decision as a slight to the local business community. It was explained then the City of North Bay could not opt to simply "shop local" by setting aside the bidding process and awarding contracts to local companies due to legalities.
Under its own by-laws, the City cannot give preference to a local bid. Such a practice would also go against the Canadian Free Trade Act. Essentially, the City risks legal action if the winning evaluated bid is passed over.
See also: Buy local debate delays city truck purchase
The near-miss last March by the local company is not the only one municipal politicians have navigated in recent years. In 2018, Farquhar Chrysler also finished as the runner-up — in an RFP process based on an evaluation formula — behind an out-of-town bidder. In that case, this Council's predecessors voted 5–4 against a staff recommendation to award a $269,179 contract for eight new 4x4 half-ton crew cab trucks from Highbury Ford Sales Ltd., located in London, Ont.
In those 2018 discussions, Coun. George Maroosis noted the RFP process is heavily regulated by the province and city councillors have little choice in the matter. "This has to be a level playing field," he reminded his colleagues then. "We are all bound by law in the process and the truth is there is nothing we can do about it."
See: Discriminatory Business Practices Act
Later in 2018, the Council of the day heavily debated but ultimately awarded a $180,000 contract for vehicles to an Ottawa dealership as local companies finished just out of the running.
North Bay City Council meets for its committee meeting Tuesday at 6:30 p.m., to be immediately followed by its regular meeting. Both meetings are available via the City of North Bay's live stream.
