Ben Redd of The Washington Group (photo supplied).

After years of political wrangling, the largest project in the history of Ottawa will be officially underway Tuesday when the City releases the terms, conditions and requirements for potential contractors for the North/South light rail transit corridor.

The release of the Request For Qualifications documents marks a new beginning for public transit in Ottawa and presents extensive economic opportunities for local contractors over the next few years.

"The interest in the marketplace for this project is very keen," said Réjean Chartrand, director of economic development and strategic projects for the City of Ottawa. "There will be lots of opportunities for Ottawa companies to work on this project."

The enormous scope and cost of the project, estimated at $700 million to $725 million, has sparked the interest of many high-profile Canadian and international companies. Speculation is that companies such as Siemens, Bombardier and The Washington Group have already begun to develop strategies and business plans to respond to the RFQ and the Request For Proposals.

The North-South line is just the first phase in the city's overall light rail plan. The environmental assessment process has already begun on an East-West line, although given the magnitude of the cost for that arm – pegged at $1.2 billion – it is still a long way from becoming reality.

Mr. Chartrand said that the number of qualified respondents is very positive for this competition process. Even if the prime companies involved are from outside Ottawa, the eventual workforce on the project will be about 90 per cent local as subcontractors will be hired from the area.

"We have a local base no matter who wins the bid," he said. "There will be a very competitive environment for local contractors with the light rail construction. Most of the international companies bidding already have ownership or association with Canadian companies."

Ben Redd, vice-president of project development for The Washington Group (named after founder Dennis Washington, not the city), acknowledges that his company will be bidding on the Ottawa project. He said his company views Canada as a very attractive place to do business and the City of Ottawa has been very proactive and impressive in setting up a sophisticated procurement process for the light rail project.

The Washington Group, based in Boise, Idaho, has 25,000 employees in 30 countries. It has completed 24 major projects in Canada over the past 30 years, including work on PEI's Confederation Bridge and a phosphate mining operation in Kapuskasing.

Mr. Redd confirmed that The Washington Group will be maximizing local content in its workforce if it is awarded the light rail contract. The company does have a Canadian subsidiary – Washington Group Northern Ltd.

"We are in the process of establishing contact with companies we believe will make good partners," said Mr. Redd. "We believe it is important to have local companies on-board and we will have local representatives working with us."

Councillor Peter Hume, chair of Ottawa's planning and environment committee, has one of six spots on the light rail selection committee. He says the city is looking for companies that can ensure stability and accountability.

"This is not a learn-as-you-go project. It's too much money and it's too important for there to be mistakes," Counc. Hume said.

Mr. Redd believes his company is the right choice for the project and can provide the turn-key option that the city is seeking – design, build, operate and maintain (DBOM). He says Ottawa light rail is a unique opportunity because the city is seeking a public/private partner (P3) to fully integrate everything from construction to technology initiatives to facility design and program management – a comprehensive approach that The Washington Group has worked with before.

In 1996, the company was awarded a US$1.1-billion contract by New Jersey Transit to form a public-private partnership for the design and construction of a light rail commuter train corridor. The project, known as the Hudson-Bergen Line, was considered the largest and most successful DBOM light rail system in North America, according to Mr. Redd. He said the project was completed on schedule and opened for business in 2000.

Mr. Redd has been impressed with how Ottawa has managed its project. He believes that the procurement process allows every company to compete on a level playing field and the city has heeded the advice of people with experience in the light rail field.

"We believe The Washington Group has a legitimate opportunity to compete for this project," he said.

That is the key for Mr. Chartrand and the city – to ensure every company has a legitimate shot at winning the bid. "This competitive environment will ensure we get the company that has the most stability, expertise and management potential for such a large project," Mr. Chartrand said.

BY CHRIS GILLCASH