NDP wants probe of Pan Am security contract that went to U.S. firm

The New Democrats are urging the auditor general to investigate the decision to award the Pan Am Games’ security contract to a U.S.–based firm whose $81-million bid was $14 million higher than a runner-up Ontario company.

In a letter obtained by the Star, NDP MPP Paul Miller said Ontario taxpayers deserve to know whether “public dollars are being respected and whether the government’s decisions have put the interests of Ontarians first.”

The decision “raises concerns and questions about who is making these decisions” Miller added in an interview. “The auditor should be looking into this.”

The criticism of the contract comes as the 2015 Pan Am/Parapan Games is already facing questions for ballooning security costs, firings of senior officials, including former CEO Ian Troop, and spending controversies.

Earlier this month, the provincial government said the security tab for the Pan Am Games was now pegged at $239 million — more than double the original anticipated cost of $113 million.

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Miller said it’s also troubling that the province’s request for proposal selection committee is spending more money on a company that was charged and fined $45,000 four years ago for not having the proper licences to provide private security for the G8/G20.

The company, Contemporary Security Canada, referred all questions regarding the contract to the OPP, which has taken the lead on the Games’ security planning.

In an email, OPP Inspector Mike McDonell, of the Pan/Parpan AM Games Integrated Security Unit, said “the government conducted a fair, open and transparent process” overseen by the Office of the Fairness Commissioner.

“The contract was awarded to the firm with the strongest bid and demonstrated experience in large-scale security initiatives while meeting all the required private security parameters throughout the Games,” McDonell added.

All four members of the request for proposal selection committee are members of the OPP’s Integrated Security Unit.

The decision to go with Contemporary Security Canada has also raised eyebrows within the security industry, including the losing bidder, a consortium led by Reilly Security of Toronto.

After weeks of considering a number of bidders it came down to Reilly Group of Companies of Toronto and Contemporary Security Canada, a B.C.–based division of California-based Contemporary International.

“Our strategy was that we make it to the final stage, which we did, and even though our bid was $14 million less we didn’t get the Games. That’s what shocked us,” said Nick Migliore, president of Reilly Security, which took the lead on a joint bid.

The committee’s decision “infuriated all of us,” said Fawzi Bidawi, president of Ontario Security Training Inc., which trains 80 per cent of the security guards in the province.

Tory critic MPP Rod Jackson said the decision to reject the Reilly bid is “ridiculous . . . the whole thing sounds fishy to me.”

Reilly Security has contracts with the Rogers Centre, Oxford Properties, the Metro Convention Centre, the Canadian National Exhibition and Downsview Park.

Contemporary Security Canada also provided the private security contract for the 2010 Vancouver Winter Olympics.

Miller’s letter is to be delivered Wednesday to the provincial auditor’s office.

“I am asking that your office investigate why a U.S.-based security company with a history of licence violations was given the Pan/Parapan Am security contract ahead of an Ontario-based company with a lower bid, and whether this creates value or risk for Ontarians,” Miller wrote.

As for CSC being fined, the OPP’s McDonell said, “The prior violations were not a concern in selecting CSC for the Pan Am Games as they are a private security provider in Ontario with a licence in good standing.”

It is not the first time the 2015 Games have come under fire for eschewing local companies for foreign bidders. The transportation contract was given to a German-based firm with offices in the GTA.

Veteran security expert Paul Carson, a director at Paragon Security, said what troubles him most is “that there is some type of stigma in this province and country that localized expertise can’t be utilized.”

It will cost taxpayers at least $2.5 billion to host the Games, which will host 7,666 athletes competing in 51 sports at venues in 14 municipalities, including Toronto, Hamilton, Milton, Ajax, Whitby, Oshawa, Caledon, St. Catharines, and Welland.