Vancouver's Co-operative Auto Network Could Lose City Contract to US Firm

The Co-operative Auto Network (CAN) is presently embroiled in a battle with US companies to retain and expand it's contract with Vancouver City Hall for it's shared cars.

Presently CAN provides access to it's vehicles to several City employees and has done so for the past nine years, additionally they have been looking to expand this service for the last two years. Now the City is planning to expand it's fleet to 40 vehicles and has opened up the contract to competition. Two American companies have expressed interest; Zipcar and Flexcar are both preparing bids. CAN believes that it is somewhat unfair that they have to compete with these American private interests when they are a non-for-profit co-operative, nonetheless they have said their bid will be very competitive.

The City has responded that the contract could be worth up to $100,000 and therefore needs to be an open and competitive bid process. "We want to ensure we are getting the best value for the citizens, as well as we want to maintain some transparency," said Sean Pander, City of Vancouver Climate Protection Program Manager (source).

In my opinion while I know it is necessary for the city to open this contract to a competitive bid process, I also think it is important for that the City of Vancouver to support local businesses, and especially a pioneering local business such as CAN.

I spoke to Tracey Axelsson, Executive Director of CAN earlier this week about her views on the process:

BR:

Will you find it difficult competing with the US companies because you are a non-profit?

Axelsson:

Certainly the allure to business that are not-for-profit is an assumption that the only reason someone would start one is because the service will not make a profit. CAN is often treated like the poor cousin. That said -- CAN has consistently made a surplus that has been rolled back into the service we provide for the past 4 years. Our projections based on our historical data suggests we will be very profitable very soon. Our next big decision as a democratically held business will be how to make the best use of this surplus. Our credibility does suffer somewhat because we are a co-op -- so many people think -- argh-- who needs that argument -- or worse think co-ops are just for hippies and farmers. That said some of the best and most sustainable companies in BC are co-ops; Vancity and MEC. So we probably win as many as we lose with this.

BR:

How do you feel about the statement that the contract has to be an open competitive process?

Axelsson:

I'm okay with it -- my concerns are more about what under-lies the contract purpose than the process itself. Is the contract on offer to better utilize the city fleet and funds to greater staff and community advantage or is this contract geared at offering an anchor tenant situation for great competition in the car sharing market in Vancouver? Frankly - our bid will be incredibly compelling -- if CAN is not selected I'd have grave concerns about the process. I suppose time will tell.

BR:

Other than support local business, what other benefits to the city would be obtained by CAN getting the contract.

Axelsson:

I think this is primarily being done for the optics. The City wants to be seen to be doing more -- especially for car sharing -- which they've done almost nothing in the last decade. I suppose picking CAN will be a sustainable choice -- it will be a choice that will have a marriage with the union influences of the city staff (Co-ops and unions have historically been one the same team), and in a city where the population doesn't want another Home Depot opening or ever having a Wal-mart -- I am certain the right pick with citizens that don't want their dollars going to the US -- and wish for local support of local businesses.