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The Ford administration is urging officials in Toronto to consider awarding a significant subway contract to a local Ontario firm, a move that would circumvent the standard competitive bidding process against a backdrop of tariff disputes with the United States.
Toronto is currently engaged in an expedited procurement effort to secure 55 essential new subway cars for its Bloor-Danforth line, a financial undertaking supported by both provincial and federal funding.
The city initially intended to open the contract for bidding to all eligible manufacturers. However, Transportation Minister Prabmeet Sarkaria has reached out to municipal leaders, advocating for a shift in strategy.
“I am asking the City of Toronto to seize this historic opportunity and consider a sole-source procurement with Alstom, which would bolster employment for Ontario workers in Thunder Bay and throughout the province,” wrote Sarkaria in his correspondence.
This appeal is part of a larger initiative by the provincial government aimed at reducing the influence of U.S. companies in Ontario’s supply chain, triggered by tariffs and potential economic repercussions announced by former President Donald Trump.
The tensions with the United States heightened in the spring, prompting Ontario Premier Doug Ford to announce the cancellation of a contract with Starlink, halt the sale of U.S. alcohol in LCBO stores, and prohibit American firms from participating in provincial contracts. At that time, he encouraged municipalities to consider similar actions and reiterated this sentiment after a recent address in downtown Toronto.
“If we’re going to purchase trains, let’s do our utmost to buy Canadian, and ideally, support Ontario manufacturing,” Ford stated during his remarks.
However, this suggestion has been met with skepticism by some city officials, especially since the request for proposals had already been concluded. They cautioned that altering the procurement approach could lead to higher costs.
“We definitely want to keep work within Ontario, but we would require support from the provincial government to cover any additional expenses,” said Councillor Dianne Sax, a member of the Toronto Transit Commission board.
Councillor Josh Matlow, a vocal critic of the Ford administration, struck a critical tone regarding the push for sole-sourced contracts. He noted the contradiction in Ford’s earlier stance against such procurement methods, questioning why the premier would now advocate for it specifically in this case.
“He has often criticized others for contemplating sole-sourced contracts; now he’s insisting on it for the rail industry,” Matlow remarked.
It is worth noting that prior to the current tariff situation, the Ford government chose not to award Alstom the contract for constructing trains for the Ontario Line in 2022, selecting Hitachi instead. Alstom later confirmed that their proposal for the Ontario Line was not accepted.
Toronto Mayor Olivia Chow offered limited commentary on the potential for a sole-sourced contract as a response to the tariffs, stating, “We will collaborate with the province and evaluate the feasibility of their request.”
Source
globalnews.ca