Untendered helicopter ambulance deal to Alta. jeered

MANITOBA Aviation Council members are up in arms over the fact the province is about to sign a long-term arrangement with an Alberta operator for the province's helicopter ambulance service -- without a public tender.

STARS (the Shock Trauma Air Rescue Society), a non-profit operation based in Alberta, had provided emergency service in the province during flood seasons in 2009 and 2011.

In the summer, the province signed a memorandum of understanding with STARS to make the emergency service permanent in Manitoba.

Aviation industry folks recently got wind of the fact a formal contract is being negotiated.

"The membership had anticipated the earlier announcement (in April 2011) was a simple response to an emergency situation," said Ron Coles, executive director of MAC. "People thought that eventually there would be a public tender and that they would be able to bid."

It seems fair to say there aren't any operators in the province right now with the equipment and the operating systems in place to handle the varied, mission-critical requirements of this type of helicopter medivac.

But it's also hard not to agree with the general expectations that industry players ought to have the chance to at least throw their hat in the ring.

Alberta-based STARS celebrated its 25th anniversary in 2010 and by all accounts, seems to have an unparalleled level of expertise.

A spokeswoman for the province said STARS delivers "high-quality trauma and critical-care transports. The service they offer is more comparable with Lifeflight (a service delivered by the province of Manitoba using a jet) than with air-ambulance services offered by commercial carriers in Manitoba focused on less urgent patient transports."

Even the people who run some of the largest helicopter companies in Manitoba do not dispute STARS' unique skill set.

The Manitoba Aviation Council position is a tricky one. On the one hand, of course they have a right to expect a public tender, but on the other, it seems apparent STARS is the industry leader. And then there is the dicey matter of local preference on government procurement. If practised across the country, Manitoba companies would likely come out net losers in that game.

A spokeswoman for the Department of Health said the province is still working on completing a long-term contract with STARS and would not disclose the terms yet.

"The question is, are you just going to sole-source the contract without even putting it up for tender, without giving others a chance?" said Dennis Lyons, an executive with Fast Air, who is president of MAC.

There are helicopter companies in Manitoba that have made it clear they would like to get into the medical business.

Custom Helicopters, probably the largest in the province with about 24 aircraft, was recently purchased by Exchange Income Corp., which owns several Manitoba airlines, including Keewatin Air.

Company officials have said they hope to leverage Keewatin's medevac expertise into the helicopter business.

Paul Gibson said his family's Lac Du Bonnet company, Provincial Helicopters, has long been interested in the medical market. Five years ago, it acquired a special-purpose helicopter in anticipation of an opportunity to get into the medevac business, but it never materialized.

He said there are several Manitoba companies that might have been able to tool up to make themselves eligible.

"We would at least like the opportunity to bid on the program if it suited our business," Gibson said. "That's what everyone is asking for."

The STARS website notes that between April 1 and June 28, 2011, it responded to 60 emergencies and transferred 34 critically ill patients in Manitoba.

The province clearly believes STARS is the best service provider.

"Our government made the decision to pursue a long-term agreement with STARS, not based on aviation experience which Manitoba companies possess, but rather based largely on the highest degree of specialized medical experience required to deliver this life-saving service," the provincial official said.

A letter MAC sent to Health Minister Theresa Oswald this week said of the potential sole-source contract: "If the rumoured actions are true, they will erode industry's confidence in this government."

martin.cash@freepress.mb.ca

Republished from the Winnipeg Free Press print edition February 9, 2012 B5