THUNDER BAY -- First Nations sovereignty has trumped the provincial procurement process in the Far North.
At the request of six First Nations, Hydro One revoked a newly-awarded contract to carry diesel fuel into the Far North and transferred it to a company owned by those First Nations.
North Star Air's Cargo North division tendered the lowest bid in Hydro One's Request for Proposals to transport fuel to Kitchenuhmaykoosib Inninuwug, Kingfisher Lake, Sandy Lake, Wapekeka and Fort Severn First Nations, along with some transport to Kasabonika Lake First Nation and two other communities.
On June 16, Hydro One awarded Cargo North contracts for 2015-2018 with extensions possible into 2020.
Over the next month, those First Nations passed Band Council Resolutions directing Hydro One to support the First Nation-owned Wasaya Group "exclusively."
The resolutions also state, "the First Nation will not transport nor allow a third party to transport fuel from the airport location to Hydro One fuel storage if fuel is delivered to our community by any other carrier other than Wasaya Airways LP or supplied by Wasaya Petroleum."
Hydro One revoked Cargo North's contract and gave it to Wasaya.
Hydro One spokesman Daffyd Roderick said the public utility negotiated new pricing with Wasaya. He admitted the Crown Corporation violated Ontario's procurement policy in the process, adding the Chiefs and Councils have jurisdiction over their communities.
"Hydro One did initiate a robust and thorough RFP process in alignment with principles established by the Ontario Public Sector Procurement Directive," he said. "However, Hydro One respects that the Band Council is the communities' governing authority."
Before Sandy Lake First Nation purchased a share of Wasaya four years ago, Chief Bart Meekis pointed out, that company was also required to ask Chief and Council for its blessing to conduct business in the community.
Although Meekis said Sandy Lake respects Canadian and Ontarian law, the First Nation's traditional governance practice of granting companies permission to conduct business in the territory precedes the Treaty 9 agreement.
"Our sovereignty issue is, we govern ourselves the way we have always governed ourselves in our land. The constitution backs that up," Meekis said. "When we signed treaty in 1910, we weren't part of Ontario yet so we signed the treaty with the Queen -- not with Ontario and not with Canada."
Neither Hydro One nor Cargo North would speculate on future actions but Cargo North issued a statement expressing its disappointment over how it feels its proposal has been denied "fair competition" in the case.
"Cargo North was awarded a contract for the fuel deliveries to eight Hydro One remote communities through a fair, competitive and impartial bidding process," the statement reads.
"Unfortunately, we will no longer be able to service five of the communities under that agreement. We remain hopeful this situation can be resolved and reversed."
