The Ontario Glass and Metal Association (OGMA) is upset a $140-million contract for supply and installation of a glass and aluminum façade at the new Trillium Health Partners Hospital project in Mississauga has been awarded to Permasteelisa/Benson, a U.S.-owned company.
The Oakville-based association has sent a letter to Ontario Premier Doug Ford and Infrastructure Minister Kinga Surma, recommending they re-evaluate the current engagement with the American firm and instruct the construction manager on the project to initiate a competitive procurement process that gives priority to Ontario-based glazing contractors.
Additionally, the OGMA wants any outstanding invitations to non-Canadian-based glazing contractors and suppliers for the upcoming Ottawa Civic Hospital project to be rescinded to ensure alignment with the province’s objectives of supporting domestic industry and job creation.
The new hospital will be a 2.8-million-square-foot structure at Queensway West and Hurontario Street. The façade work is part of a larger $14-billion project to rebuild and expand the hospital.
The Daily Commercial News reached out to the offices of both Ford and Surma for comment but did not receive a response.
The association learned in June the contract for the façade had been awarded to the American firm. Moreover, the company plans to manufacture the façade components in Mexico.
The OGMA maintains due to the uncertain economic climate and policies being implemented by the U.S. government, it makes sense to award contracts to Ontario-based companies.
“Our main beef is that this is taxpayers’ money funding the project and it was awarded to an American company,” OGMA president Blake Sanders explained in an interview. “The Ontario taxpayers are not getting anything out of it. They’re obviously getting services once this building opens up but the money from building could have gone into our economy. That’s where my issue is.”
The Permasteelisa/Benson bid came in approximately 15 per cent below the others. However, Sanders argued that, considering the steep tariffs that have been imposed on Canada by the Trump regime, the façade project should have been awarded to a Canadian company.
“It’s almost like a slap in the face, if I’m being honest, considering everything the U.S. has put us through. After everything that Trump has done and what his tariffs have done, the economy in Canada has taken a huge hit because of this. This would have been a great project to spark things and we gave it to the Americans. On top of that, they’re getting their materials from Mexico.”
Many OGMA members in Ontario are bitter the tender was awarded to a U.S. company, said Sanders.
“They are upset by it because their taxes also went to this. It’s just really poor timing to give this to an American company.”
There are plenty of companies in Ontario that can do the work, Sander said, and – if they’d been given a chance to revise their bids – they probably could have found a way to sharpen their pencil and reduce the price.
Government incentives could have been a good way to keep the work in Ontario, he said, as taxpayers probably would prefer to subsidize five per cent rather than give it to the Americans.
In its letter, the OGMA asks the Ontario government “to help prevent what we believe could become a costly misstep for the province, both in terms of public perception and financial impact on Ontario taxpayers.”
While the association understands the construction manager’s decision may have been guided by lowest-price considerations, the economic landscape has changed significantly in recent months, the letter states.
“In our association’s view, the lowest price does not necessarily represent the best value for Ontarians – particularly in today’s uncertain economic climate.”
The letter, signed by Sanders, states awarding the contract to Permasteelisa/Benson risks undermining Ontario’s economy at a time when everything possible should be done to support local workers and businesses.
Sanders notes awarding the contract locally would help keep jobs, spending and economic benefits within the province – where they are needed most.
In a perfect world, he said, the project would be retendered, and, in the end, a Canadian firm would be awarded the project. But he is fully aware the ship may have already sailed.
“If it’s too late, and they’re already going and the materials have been purchased, then on the next project coming up, which I believe is the Ottawa hospital, that one better be Canadian.”
In the U.S., he noted, federally funded projects have Build America, Buy America provisions that stipulate authorities must prioritize the use of domestically produced iron, steel and construction materials.
“Every U.S.-funded government-funded project has that clause. Why can’t we have that? Build Canada, Buy Canada.”
