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Local company awarded Yukon’s air ambulance value-driven contract

For release 18-152
Jul 17, 2018

(Note: we have added explanations of the phrases “fit up term” and “tendered service” to the quick facts below.)

For the first time in 19 years, the Government of Yukon has awarded the territory’s air ambulance service contract through a value-driven procurement process.

Local company Alkan Air received the contract valued at $25 million.

The value-driven procurement process used to award this contract considers both the price and quality of the bid. Value-driven procurements are commonly used in other jurisdictions and have been successfully used by the Government of Yukon for other procurements such as Nares River Bridge replacement.

Alkan Air has experience flying in remote northern climates and in providing air ambulance services in the North. Under the terms of this contract, Alkan Air will also be providing a third plane to serve as a dedicated back up to ensure continuity of service should one of their medevac aircraft be out of service or if both regular medevac aircraft are in use.

The contract is for a four-year initial term with the option for extensions of up to three years. The new contract started with fit up term on June 25, 2018, and tendered service beginning April 1, 2019, with the existing contract expiring March 31, 2019.

"I am pleased to see a local company winning a competitive value-driven procurement." Minister of Highways and Public Works Richard Mostyn

"Air ambulance services play a crucial role here in Yukon, and we are extremely pleased that locally-owned Alkan Air has once again been awarded this contract. Alkan has held this contract for many years, and has a proven record of providing Yukoners with safe, reliable service. We look forward to continuing our successful relationship." Minister of Health and Social Services Pauline Frost

Quick Facts

  • Since 2016 more than 1,900 people have been transported by air ambulance both within and outside of the territory. In 2016–17 air ambulances flew more than 530,000 miles transporting patients to receive the urgent care they required.
  • The Department of Health and Social Services is responsible for the air ambulance budget; the Department of Community Services is responsible for the staffing of health professionals as well as managing the contract; and the Department of Highways and Public Works is responsible for administering the procurement.
  • The fit up term is the time period the contractor has to prepare in order to be able to provide the tendered medevac service.
  • The current contract to provide medevac service remains in place until Mar 31, 2019. The new tendered service begins April 1, 2019.

 

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