With the awarding of the main construction contract on the Giant Mine Remediation Project to Parsons Inc., work will soon begin in earnest to clean up what is one of Canada’s most contaminated sites.

Throughout the engagement and regulatory phases of preparing for this massive undertaking, officials have insisted that the work will be done in a way that benefits the North and Northerners.

Aboriginal Business Quarterly recently connected with members of the Giant Mine Remediation Team to learn how those benefits will be realized and how individuals can best prepare for the approaching opportunities. Three spokespeople took part in responding to our questions. They include: Brad Thompson, Senior Project Manager, Public Services and Procurement Canada; Dayal Madhavan, Construction Manager, Parsons Inc.; and, Natalie Plato, Deputy Director, Indigenous and Northern Affairs Canada.

ABQ:  What do you think was the biggest determining factor in Parsons Inc. being awarded the Giant Mine site’s Main Construction Manager contract? Did it hinge on price or were there other elements of the proposal that made the difference?

Giant Mine Remediation Team, 

Brad Thompson: Public Services and Procurement Canada evaluates the experience and qualifications of key personnel, as well as companies’ past experience to determine if the bidders have delivered other projects of a similar type successfully. All these criteria are factored in and combined with the price evaluation in accordance with the basis of selection as laid out in the request for proposals in order to ensure transparency of the process.  Parson’s proposal for the Main Construction Manager contract had both a strong technical proposal and competitive pricing.

ABQ: What do you feel are the biggest technical challenges related to the project? How will these obstacles be overcome?

GMRT, Natalie Plato: The scope and complexity of the Giant Mine Remediation Project, and the interconnectedness of all the technical aspects, make it difficult to pinpoint a single “biggest” challenge. However, I would like to highlight the freeze program, as this will be the first time thermosyphons are used to freeze arsenic trioxide. Freezing the arsenic trioxide in place is the best long-term management strategy to protect Northerners and the environment. 

Fifty-six management alternatives were considered for addressing the arsenic trioxide; 12 were studied in detail, and finally, the Frozen Block method was selected based on scientific evidence and community input. Of all the alternatives considered, it offers the least risks, including low risks to worker health and safety, low risk of arsenic release during the implementation of the management method, and low risk of arsenic release over the long-term. 

To help inform the design of the freeze program and ensure the Project team can address the challenges presented by this aspect of the remediation, we conducted a Freeze Optimization Study. In June 2009, the Project Team constructed a freeze plant and inserted pipes around one of the chambers, which became operational in early 2011. The study provided real time information on the speed of freezing and what types of technologies and methods work best in the Northern environment. Going forward, after remediation and once all the chambers and stopes are frozen, the Project team will continue to monitor the freeze to ensure it continues to work as designed.  In addition, I would like to highlight that the Giant Mine Oversight Board, which is independent from the Project, has been tasked with supporting research into technical approaches that could serve as a permanent solution for the arsenic trioxide.

ABQ: Other than Parsons’ earlier work on Giant Mine, are there any other projects the firm has been involved with previously that have prepared it for the environmental challenges inherent to operating in Canada’s North?

GMRT, Dayal Madhavan: We understand working in Canada’s North because we have been working there continuously since 1944. The lessons learned during our 74 years of experience have been used to develop approaches that are equal to or exceed the environmental challenges.

Parsons has constructed projects in Northern Canada since 1944, and has a long history with managing extensive environmental contaminants at high profile sites in North America. 

It serves as the Mine Manager and care and maintenance operator at the Faro Mine Complex in the Yukon – the largest abandoned mine site in Canada. For this work, Parsons prepared the Environmental Management Plan (EMP) and is performing all environmental monitoring activities, managing the data, and reporting daily, weekly, and monthly on operational and regulatory aspects. Parsons also manages three seasonal water treatment plants to treat acid rock drainage at the former lead/zinc mine site, located five hours northeast of Whitehorse.

Parsons’ Northern experience extends from Alaska to the Canadian Arctic and spans a variety of projects within the public and private sectors. In the 1940s, Parsons was part of the design and construction of the Canol refinery and associated 1,931-kilometre pipeline in the Northwest Territories and Yukon. It continued to work in Arctic regions after the Second World War on projects for the United States Department of Defense facilities, and the burgeoning oil and gas production and refining industries. In the 1970s and 1980s, Parsons conducted environmental studies for the Shakwak Highway improvement project, reconstructing 516 kilometres of the gravel-surfaced Haines Road and Alaska Highway in British Columbia and Yukon.

ABQ: What experience does Parsons have working with and engaging Indigenous people? Are there any specific success stories you can highlight for our readers?

GMRT, Dayal Madhavan: Parsons has received client awards for its successful engagement with Indigenous people. Its strong track record in delivering sustainable socio-economic benefits has been realized at the Giant Mine.

At Faro Mine Complex, Parsons is meeting or exceeding all Yukoner and Affected Yukon First Nations targets on training, employment, and procurement. Parsons has successfully developed and implemented training programs that resulted in Indigenous workers comprising approximately 10 per cent of site staff. 

At both Giant and Faro mines, Parsons is responsible for engaging local and Indigenous communities to help complete scopes of work, and it hires local and Indigenous people in the communities in which it operates. Parsons has worked with local and Indigenous subcontractors to maximize their participation, for example by conducting training and apprenticeship programs and implementing contractor incentives and penalties directly related to the Indigenous commitments and guarantees made as part of the benefits plan. 

Parsons has also encouraged Indigenous contractors to pursue new procurements. Working with the Ross River Dena Council, Parsons assisted in the creation of an Indigenous-owned fuel supplier to provide fuel to the Faro site. Also at the site, it trained and hired unskilled and semi-skilled Indigenous workers from the local communities of Faro and of Ross River. Parsons has informed school students and staff of available training and employment opportunities during such events as Career Days.

ABQ: Approximately how many total jobs do you expect to be created in Term 1 and Term 2 of the project? How many Parsons’ employees are expected to be actively working in the NWT? What percentage will be based in Yellowknife versus rotating in and out of the territory?

GMRT, Natalie Plato: The Project team completed a labour resource study, which estimates the number of jobs that will be created as part of the remediation. It is important to note that the bulk of jobs created will be created during Term 2 of the MCM contract, when the sub-contracting for remediation work will begin.  Estimates suggest a peak of 250-300 workers in the first five years of the remediation work. These are early projections, however; several factors, such as how the work packages are parceled out and sequenced by Parsons during Term 2, will influence these numbers. Parsons will have a number of core staff who will be working in Yellowknife, some of whom will reside in the city, such as its Community Economic Development Officer. Implementation is expected to take approximately 10 years, and we anticipate being able to begin in late 2020, subject to being granted a water license.

ABQ: Carolyn Bennett, Canada’s Minister of Crown-Indigenous Relations and Northern Affairs has stated the contract will create “…economic growth and opportunities for the North and Indigenous peoples.” What sorts training programs can Northern and Indigenous people expect during the project and when will they typically begin (i.e. during Term 1 or 2)? Will Parsons conduct them in house or work with a training partner?

GMRT, Natalie Plato: The Project team has already begun fostering relationships with organizations that offer training which might benefit Northern and Indigenous workers. For example, we have been collaborating with the Yellowknives Dene First Nation, including funding their ECO Canada-run BEAHR training program. Going forward, we anticipate the development of training programs, in collaboration with our stakeholders and interested parties to ensure training addresses their unique needs. However, we are still in the early stages of development, so we are not yet able to speak in detail about what this might look like. I would like, however, to highlight that there are a number of programs offered through organizations such as CanNor, the Mine Training Society, and individual business that may help position individuals for upcoming opportunities, and I would encourage anyone interested to speak to those organizations directly.

ABQ: Michael McLeod, Member of Parliament for Northwest Territories, has said, “I am glad this project is moving forward with the awarding of the contract to Parsons Inc. and the commitment to local employment.” The contract is said to contain both sticks and carrots related to Northern and Indigenous employment. What thresholds have been set in terms of overall percentage of Northern and Indigenous workers?

GMRT, Brad Thompson: One of the main objectives of the Project, while ensuring the protection of the environment and people’s health and safety, is to deliver social and economic benefits to Indigenous and local communities. Parsons Inc. will subcontract its remediation work packages to target the local work force, based on its labour-capacity studies. Indigenous involvement is encouraged through the Aboriginal Opportunities Considerations (AOCs). Each work package will include an AOC, which are measures aimed at maximizing opportunities for Indigenous communities, businesses and individuals local to the Comprehensive Land Claim Agreement area. This increased participation will realize tangible socio-economic benefits and capacity development within the land claim area. The AOC will be a component of the technical merit portion or the price portion of their bid evaluation process.

ABQ: Carla Qualtrough, Canada’s Minister of Public Services and Procurement said, “This contract will target maximum local involvement…” It has also been estimated that the full value of the contract could be in excess of $900 million. What percentage of the total value do you expect to go to Northern and Indigenous suppliers and subcontractors?

GMRT, Brad Thompson: The value of both terms of the Main Construction Manager contract is estimated to be up to $900 million, the majority of which represents sub-contracts tendered by the Main Construction Manager over the life of the project.  The Main Construction Manager will subcontract its remediation work packages that target the local work force, based on its labour-capacity studies, resulting in the structuring of the work packages in a manner that maximizes competition and optimizes value and socio-economic benefits. Rather than pre-determining specific percentage stipulations, this process will allow capacity and market forces to guide bidders in making meaningful and achievable commitments.

ABQ: What specific procurement processes or mechanisms do you have in place or under development to ensure that these spending objectives are met?

GMRT, Brad Thompson: The Government of Canada requires that each work package tender includes Aboriginal Opportunities Considerations (AOC) criteria to be used in the bid solicitations.

All work packages greater than $100,000, must use an open, public tender process, obtaining more than two bids if they exist. These work packages will be posted to MERX Private.  

If a work package is valued between $25,000 and $100,000, the Main Construction Manager must obtain at least two other bids via a competitive process.

For work valued at under $25,000, the Main Construction Manager may approach one company, but must also prove it is providing value for money. 

Some work may be set aside for Aboriginal businesses to compete on, using the Procurement Strategy for Aboriginal Businesses, or PSAB.

ABQ: What can local companies do to prepare for those opportunities?

GMRT, Natalie Plato: We encourage local companies to contact us at the Giant Mine Remediation Project and to attend information sessions to learn about what is coming up for the Project. Opportunities will also be included in the e-newsletter, which is available to view on our website (giant.gc.ca). We are also actively working with our territorial, federal and municipal partners to communicate initiatives, programing and funding opportunities for local companies and residents.

In addition, Parsons is creating a website that they are working to have online in the coming months. This site will list the upcoming contract opportunities that businesses may be interested in competing for. The contract opportunities will also be posted to MERX (under Private Construction) and available for public view. Finally, Parsons and federal staff will be active within the community to make sure members of 

the local communities are aware of upcoming opportunities.

ABQ: What expectations will be placed on subcontractors in terms of Northern and Indigenous employment? How will those requirements be policed?

GMRT, Brad Thompson: The Main Construction Manager will schedule and oversee the execution of the remediation work packages by its sub-contractors, as it will subcontract its remediation work packages that target the local work force, based on its labour-capacity studies. Consideration for Aboriginal businesses will be evaluated based on an Aboriginal Opportunities Consideration (AOC). An AOC includes commitments by the contractor for Aboriginal labour, subcontracting and/or training programs. These commitments will form part of the work package subcontracts and will be subject to audit and incentive provisions to ensure subcontractor commitments are honored.  The incentive provisions encourage the successful bidder to look for opportunities to exceed commitments throughout the execution of the work.

ABQ: How will the project team engage with the Giant Mine Oversight Board and the rest of the Northern community throughout the duration of the project?

GMRT, Natalie Plato: Engagement is an important and valued part of the Giant Mine remediation process. The Project team recognizes that Indigenous and local concerns must be appropriately understood and taken into consideration in order to result in a successful remediation. Input from various engagement activities is carefully considered by the team as it works to finalize the Closure and Reclamation Plan. 

Going forward, we will continue to engage and communicate through our regular mechanisms such as monthly meetings with the Giant Mine Work Group, the Giant Mine Advisory Committee, and Yellowknife City Council administration; ongoing public information sessions (including our annual public forum); our website and the e-newsletter; and other avenues of communications as appropriate, to ensure the public continues to be informed throughout the duration of the Project. ABQ