Province says six deals with U.S. firms necessary, despite trade war

The Manitoba government has defended a series of costly deals with U.S. companies, saying it had no choice but to sign the contracts in question.

The Opposition Tories have tabled the details of six deals this week that challenge the NDP’s pledge to buy local amid the trade war with the United States.

They show the province has agreed to pay more than $4.5 million to six companies that are headquartered on American soil in recent months.

Each contract was issued or updated after President Donald Trump followed through on his threat to impose 25 per cent tariffs on March 4, as per the province’s contract disclosure database.

All of the vendors sell software or other information technology services, many of which government officials said could not be sourced elsewhere.

Progressive Conservative Leader Obby Khan accused the government of failing to do “the heavy work behind the scenes” and find Canadian alternatives.

“We are exposing Wab Kinew and this NDP government for what they really are — smoke and mirrors,” Khan told reporters after question period on Thursday.

Three of the contracts were direct awards, meaning vendors in Canada and elsewhere could not bid on them.

The largest is worth $1.8 million. It was signed with Actian, a software development firm in California.

The other two involve First Databank, a Washington, D.C.-based company that runs drug and medical device databases, and the Iowa department of transportation. Both were for computer services and amounted to about $150,000 each.

New Technology Minister Mike Moroz said the province wants to give preferential treatment to Canadian suppliers and introduced legislation to cement that goal, but it is not always possible.

“In order to ensure Manitobans can access the services they currently rely on, some contracts have been extended with American firms,” Moroz said in a statement.

Bill 42, introduced earlier this session, establishes a “buy Canadian policy” for government purchases.

The major contract with Actian was a renewal to ensure continued operation of existing software for essential services, Moroz said.

The minister indicated a recent $1.8-million deal with Texas-based Aurigo Software Technologies was initially awarded prior to the new direction on procurement practises.

A spokesperson for his office indicated a $206,000 top-up to the existing contract with EAP Global was to continue helping post-secondary institutes administer online courses.

Provincial officials were preparing to release more information about the remaining three contracts to the Free Press prior to a media scrum with Kinew on Thursday.

Both the bureaucracy and cabinet communications teams were directed not to release further details after the premier spoke to reporters — despite the fact he did not offer any answers.

Kinew dodged more than a dozen questions about why his government is continuing to issue major contracts to U.S. firms.

He insisted the province is buying Canadian and repeatedly mentioned Khan in his replies to accuse the PC leader of supporting Trump.

Khan called the premier’s behaviour “embarrassing.”

“Manitobans deserve better,” he said. “(Reporters) ask legitimate questions and he is giving you lies for his answers. It’s shameful.”

Earlier in the day, Trade Minister Jamie Moses introduced a bill that would proclaim June 1 as “Buy Manitoba, Buy Canadian Day.”

Bill 47 establishes new rules that would reduce red tape to increase trade with other governments in Canada that are reducing barriers as well.

— with files from Carol Sanders

maggie.macintosh@freepress.mb.ca