The city of Portage la Prairie's 2017 Pavement Program tender process is bringing the 'Buy Local' debate back to the forefront of council.

In its committee meeting Monday, council discussed tender bids received for the city's 2017 paving contract. The administrative recommendation is to award the work to Winnipeg-based Maple Leaf Construction Ltd., for a price of $994,700 — the lowest bid. Meseyton Construction Ltd., of Portage la Prairie, is the second-lowest bidder on the contract, at $1,001,358.

A lively local purchasing discussion ensued during the meeting as Coun. Ryan Espey urged councillors to consider the local option over the lowest bid, considering the difference between the contracts is a mere $7,000.

“Money staying local, tax dollars staying local ... equates to a whole lot more than the one per cent difference in those two bids,” Espey said. “...It's one per cent of $1-million, less than one per cent. To give that to a company from outside town just doesn't seem right to me.”

“It seems like something we have the power to give to a local bidder,” continued Espey. “Where the money, jobs and all that stuff stays right here in Portage.”

Administration warned, however, the city could face litigation if council doesn't opt with the lowest bid. The paving contract is a Class A tender and a legal opinion sought by administration and provided to council explained there is precedent for contractors to be awarded a claim when governments opt against the lowest bid — in this type of tender — for criteria unknown to bidders and not included in policy prior to the process.

That would seem contrary to council's recent decision to award the city's by-law services contract to Corps of Commissionaires of Manitoba over local company Orion Security, which was the lower bidder. However, administration explained the policy varies for different types of tenders. The by-law enforcement contract was a Request For Proposals, which includes far more scoring criteria beyond price in making a recommendation to award a contract. Class A tender awards are dictated by price, unless an exemplary reason — such as the bidder's ability to complete the work — is provided to vary.

Coun. Wayne Wall echoed administration and said current tender policy doesn't allow council to do anything other than award to the lowest bidder. He consulted other municipal contacts for opinions on varying from price determinant tender selection.

“Without exception, the opinions I got were: 'Do not talk about local preference. Don't go there. Don't do it. You will be sued and you will lose,'” Wall recalled.

Council will vote on the 2017 Pavement Program contract at its next meeting.