Bell Canada is threatening to take action against the City of Ottawa over a $17 million deal to buy technology for transit buses that would automatically call out stops.

As a result, city council has postponed a vote scheduled for Wednesday on the deal with Plainview, N.Y.-based Clever Devices.

If the city awards the contract to Clever Devices, Bell Canada will consider the city "in breach of its obligations" and "will consider all of its remedies at law and in equity," said a letter sent to city solicitor Rick O'Connor on Tuesday by McCarthy Tétrault LLP, the law firm representing Bell.

At issue is the fact the deal with Clever Devices includes not just the stop-calling system, worth $6.72 million, but also:

• A wireless GPS system that would help the city schedule buses and let passengers track buses using their cellphones or the internet.
• A system to monitor a vehicle's mechanical condition.
• The ability to send out system-wide public announcements from a central location.

Bell alleges the additional $10 million was not included in the city's original request for proposals and therefore neither Bell Canada nor any other company was given the opportunity to bid on those applications.

"In short, the City of Ottawa issued an RFP for the provision of a certain solution and is now contemplating the award of a contract for a completely different solution at a cost of approximately three times the approved budget," the letter alleges, "without a competitive process that is open, transparent and fair to all suppliers, as required by law."

Bell is asking the city to limit its contract with Clever Devices to the original stop-calling system.