City had right to cancel request for quotations without awarding contract

Ontario civil | Municipal Law | Municipal contracts | Tenders

City requested quotations for diving services at water treatment facilities. Plaintiff A Ltd. was lowest compliant bidder in response to request for quotations (RFQ). After close of bids, chief purchasing official (CPO) of City cancelled RFQ because integrity of tender process was compromised. CPO issued second RFQ for essentially same services. A Ltd. bid on second RFQ but was not lowest bidder. A Ltd. commenced action against City for damages for loss of contract. A Ltd. claimed City breached duty of fairness by cancelling first RFQ and retendering contract. A Ltd. brought motion for summary judgment. Motion dismissed. Tender contract gave City right to accept or reject bids and right to cancel RFQ without awarding contract. City’s purchasing bylaw gave CPO authority to cancel any call for tenders or quotations where integrity of call process was compromised. First RFQ was cancelled because of concern that not all bidders were provided access to facility drawings and diving inspection reports. City had duty to investigate those concerns, which affected integrity of tender process. City did not breach duty of fairness and was not liable to A Ltd..
ASI Group Ltd. v. Toronto (City) (2017), 2017 CarswellOnt 12929, 2017 ONSC 3385, J.R. Henderson J. (Ont. S.C.J.).


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