The Brampton Guardian The Brampton Guardian The Brampton Guardian The Brampton Guardian
SEARCH SITE
The Brampton Guardian
MARKET PLACE
Companies accuse Peel of unfair business practices
The Brampton Guardian
Sunday May 4 2008
PETER CRISCIONE, Staff Writer
 
BRAMPTON - Senior bureaucrats were called upon to defend the way Peel tenders out contracts Thursday after several telecommunications firms accused the region of unfair business practices.

Three companies presented their grievances before councillors with respect to a near $5 million telephone system and installation deal between the municipality and Avaya Canada.

The various delegates, among them Kevin Watson, MTS Allstream vice president of sales, claimed the difference between what his company and Avaya tabled stands between $800,000 and $1 million for practically the same product.

Ken Harrison, Black Box Network services account manager, claimed Avaya's price is about $2 million more than what his company tendered.

Both Black Box and Allstream deal with technology engineered by Nortel Networks, whereas Avaya handles a completely different, yet comparable, system.

Peel has agreed to purchase telephone system hardware, software and associated installation services for both the old region headquarters at 10 Peel Centre Dr. and the new wing currently being constructed next door.

The telephone system in use now at the old building is the Nortel Network variety and has been used by staff for years.

It would have to be completely replaced.

Harrison claimed that during the short-list interview and presentation process Nortel Channel partners were denied the right to have any manufacturers (Nortel) representation or presence. He also said there was no regional executive representation on hand at any of the Nortel presentations-- a move perceived to be a snub on the part of senior region staff.

Laura Nashman, Peel's commissioner of employee and business services, responded by declaring region officials selected Avaya in the end because that company offered "a superior package."

Nashman disputed Harrison's claim that his bid came in $2 million cheaper than Avaya, stating the number is more along the lines of $200,000 after everything, including tech support, was factored in.

Technical proficiency was also a consideration that tipped the decision in Avaya's favour, Nashman added.

The delegates challenged that notion, arguing vehemently the differences between Nortel systems and Avaya "are very subtle."

"Avaya Canada was the recommended solution to be awarded this contract as the most cost-effective solution. There is not a clear view of the price comparison that was provided to council," said Watson who conceded that what system is deemed better is subjective. "There is definite uncertainly about the technological assessment that were made and it was evident Nortel did not have the same opportunity to showcase its capabilities both technically and otherwise over Avaya."

Both Harrison and Watson said this is the first time they've made a formal complaint on a contract tender.

Councillors agreed that an independent audit should be conducted for transparency sake, but decided to consult municipal lawyers first seeing as the contract has already been awarded to Avaya Canada.

With the new Peel headquarters nearing completion, councillors voiced concern that it could delay the construction schedule.

Reader Comments