Manitoba’s auditor general released a report critical of the province, saying it broke its own tendering rules when awarding STARS an air ambulance contract worth $159 million.

Carol Bellringer released her office's annual report to the legislature Wednesday.

Bellringer says a 10-year contract signed in 2012 with the Shock Trauma Air Rescue Service, known as STARS, was never put out for public tender and was signed despite evidence the cost-per-mission would be up to 600 per cent more than in other provinces.

The report noted:

  • Procurement of the helicopter ambulance program was not in compliance with provincial tendering principles, policies and legislation
  • Department of Health conducts some oversight of the Service Purchase Agreements, but not in all key areas
  • Auditor general concluded that the department of health did not conduct a public tender
  • Value for money analysis was weak - Manitoba Health relied on STARS as the main source to define program delivery needs
  • Manitoba Health doesn't have adequate way of monitoring the "patient care that STARS provides"
  • Contract was signed despite evidence that cost-per-mission would be up 600 per cent more than in other provinces

The auditor general concluded that there was no justification for waiving competitive bids.

Bellringer said Manitoba didn't adequately explore other options, such as expanding its own fleet of 24 air ambulances called Lifeflight, before it signed the contract in 2012. The government's own analysis showed Lifeflight could have completed around 600 missions at a cost of $3 million, she said.

The NDP promised STARS service before the 2011 election. Premier Greg Selinger said the government used the service during the spring flood and didn't put the contract out for tender because it wanted "continuity."

"It was determined that continuity of service was fundamentally important to serve the needs of Manitobans," Selinger said in the legislature. "To put it out to tender would have taken 18 to 24 months to reboot a service potentially under another provider."

Bellringer recommended the province develop better ways to monitor STARS operations and ensure its insurance certificates are updated annually.

The idea of terminating the current contract with STARS and putting out a proper tender was not part of the scope of the audit.

- with a report from Rahim Ladhani and files from The Canadian Press