Calls to retender a contract worth about $6 million that was awarded to an Ontario firm were rejected by a city committee, despite protests from MTS, the losing bidder.

Calls to retender a contract worth about $6 million that was awarded to an Ontario firm were rejected by a city committee, despite protests from MTS, the losing bidder.

On Friday, the city announced the new telephone contract that was selected by the public service online. The overall combination of awards is expected upon approval to transfer about 4,000 landlines to VOIP service and the award is expected to save $1.5 million over a period of 5 years.

However, MTS held the view that it was competitive on all contracts, including the VOIP landline that it lost to FlexITy Solutions. The company further questioned why the executive policy committee supported investment from outside Manitoba.

Kelvin Shepherd, MTS’s president alleged that the small firm that won the tender may lack the necessary security level that is needed to safeguard sensitive city data.EPC members on the other hand noted that the tender would have immense benefits to the city residents and it voted to support the proposal, with a descanting vote coming from Coun. Brian Mayes (St. Vital).

City staff noted that they are not permitted to discriminate on a tender process basing on geographical location.

Cisco is a business partner of FlexITy and its  regional director, Shane Warnez intimated that the company has over 9 years of experience with VOIP, has a proven security record and already operates in the Winnipeg Regional Health Authority.

MTS was awarded several services by city including landline and cellular contracts worth nearly $10.6 million.

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