Orka Management Group, a company formed by Invest Medicine Hat staffers is the only bidder for the private contract (Orka Management Group)

By Tiffany Goodwein

Orka Management Group lone bidder on Invest Medicine Hat contract

Jul 19, 2021 | 5:32 PM

MEDICINE HAT, AB- A private company formed by three city staffers is the only bidder for the Invest Medicine Hat contract.

Bidding closed Monday, July 19, at 2 p.m., and the city’s website shows Orka Management Group as the only company that applied.

The Invest Medicine Hat contract is 10 years with the possibility of two extensions of up to 10 years each.

A corporate registry search indicates Orka Management Group is founded by Jason Melhoff, Invest Medicine Hat’s current managing director. The company was formed in February, and Chris Perret and Erik Van Eck, two Invest Medicine Hat employees, also hold a stake in the company.

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Last week, CHAT News pressed city manager Bob Nicolay about Jason Melhoff registering to bid with his private company. When asked if Jason Melhoff would get the contract, Nicolay wouldn’t say but assured that “a fair and proper process” would take place.

“It’s a competitive process, and the city is very good at doing requests for proposals in an objective and level playing field configuration. So certainly any internal groups are welcome to put their name in the hat,” he said.

Nicolay also maintained that there is no conflict of interest, which was echoed Friday by Councillor Phil Turnbull, who had high praises for Melhoff and the current Invest Medicine Hat team.

“People seem to think that this is some sort of an inside deal or something like that. Just look at the record of Invest Medicine Hat in the last year and a half under Jason Melhoff. It’s been tremendously exciting,” Turnbull said, noting council approval is still required prior to the awarding of the contract.

The latest budget update stated Invest Medicine Hat is projected to lose $912,000 by the end of the year, losses Nicolay attributed to COVID-19 and struggles to sell city land.

A request for proposals for the Invest Medicine Hat contract was issued on June 15, with little public notice, something Nicolay admitted was a mistake on his part.

“The key messages were prepared, as soon as the RFP was ready to go out. They came to me and were supposed to be distributed beyond my desk and out in the community and it was me that neglected to sign off on them and get them out in the community,” he said.

The union representing city employees, CUPE 46, told CHAT News they were not adequately informed either about the city’s decision to contract out Invest Medicine Hat. There is at least one CUPE employee within the department.

“We were surprised by this and really we should be engaging in these discussions to find out if there truly is some cost savings,” vice-president Jason Fenske said.

The union confirmed a grievance has been filed, but they were not able to speak on the specifics.

The city was also not able to comment on the grievance, but they said a process is in place.

“This particular RFP process is specifically designed to give the city an informed view as to what re-contracting IMH might look like from third-party proponents. This information will be evaluated against internal options. No decisions have been made regarding contracting out the service and when those decisions are made, they will be respectfully considerate of any collective agreement provisions,” stated Colleen Graham, manager of marketing and communications for the City of Medicine Hat.

A contract is expected to be awarded in early September.