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House Hansard - 286

44th Parl. 1st Sess.
February 27, 2024 10:00AM
Context: House Hansard - 286 - Feb/27/24
Mr. Majid Jowhari (Richmond Hill, Lib.)
  • Feb/27/24 1:53:46 p.m.
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Madam Speaker, I will be sharing my time with the member for Vaughan—Woodbridge. As members of the House, we share a profound duty to ensure that public funds are used effectively and for the public good. This principle is paramount, especially in times of crisis, when swift action is necessary and resources are stretched thin. The COVID-19 pandemic presented unprecedented challenges requiring urgent and innovative responses. Among them was the development of the ArriveCAN app, a tool swiftly implemented to manage the risks associated with international travel during the pandemic. It is crucial to recognize the context in which ArriveCAN was developed. It was a period marked by uncertainty and the urgent need to protect public health. ArriveCAN was instrumental in mitigating the spread of the virus by international travel. By simplifying the submission of travel and health information for individuals entering Canada, it made a substantial contribution to our efforts to manage the pandemic effectively. Drawing from my background in IT consultancy and project management, I aim to provide a nuanced perspective on ArriveCAN, which may not have been shared in the House as of yet. I will focus on three aspects: the development process, cost avoidance and its true valuation. I will start with the development process. In addressing the development cycle of ArriveCAN, it is important to highlight the extraordinary circumstances under which the application was developed. Traditionally, a development life cycle spans several sequential phases over approximately nine months to a year. These sequential phases are complete business requirements, looking at scope finalization, solution design and solution development, doing testing and piloting, and rolling out and supporting. The total requirements were 177 different functionalities that the app had to do. However, given the urgent demand created by the pandemic, we shifted to a rapid, agile methodology, progressing on a requirement-by-requirement basis. As the requirements kept evolving and the number of stakeholders, such as the provinces, PHAC, the World Health Organization, security and data protection put extra requirements on how this application was evolving, this approach allowed us to dynamically integrate new requirements as they emerged, ensuring the app was continually updated and adapted to respond to the evolving pandemic situation. This agile development strategy not only expedited the app's rollout but also ensured its flexibility and responsiveness to public needs. This type of development, by virtue of the fact that requirements come at different stages rather than all being identified up front, leads to an increased cost of development. I do not want to justify the $60 million, because I think there is a lot of room for improvement on that. Nevertheless, through our discussions and the examination by the Auditor General and the procurement ombudsman, it has become evident that there are concerns regarding the financial management and procurement processes of the ArriveCAN app. While these concerns are valid and demand our attention, it is essential to contextualize the financial aspects of the app within the broader scope of pandemic management and the digital transformation. It is also crucial to discuss the cost savings or cost avoidance facilitated by ArriveCAN. Replacing the traditional paper-based system, the app presented a significant advantage in terms of cost-efficiency. The estimated cost of processing each paper transaction was $3 per transaction. Taking into account that this app was used over 60 million times, this would total anywhere from $120 million to about $180 million in potential cost savings. If we look at even the lower end, the $120 million, that is twice the amount that was spent on ArriveCAN. This figure underscores the financial prudence of the ArriveCAN project, highlighting how technical innovation can lead to substantial savings in public expenditures, especially in a time of crisis. Lastly, on the topic of valuation, it is essential to differentiate between the cost of developing an app and its market value. If we consider an e-commerce application with 18 million users and 60 million transactions, facilitating billions of dollars in monetary transactions, I would ask any member of this House what its valuation would be.
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Context: House Hansard - 286 - Feb/27/24
Mr. Majid Jowhari (Richmond Hill, Lib.)
  • Feb/27/24 3:32:51 p.m.
  • Watch
Mr. Speaker, let me summarize what I talked about during the first minutes of my speech. I talked about the fact that the ArriveCAN application could not have been developed for $80,000, but it should not have cost $60 million either. We talked about the paper cost of this application. Had we processed 60 million transactions, it would have cost $180 million. We talked about the valuation of an application as such. If it were an e-commerce application, transactions at the transactional level, it would have been hundreds of millions of dollars. This perspective is vital in understanding the true value of ArriveCAN. The app's development cost, while substantial, represented just one aspect of its overall contributions. The efficiency, safety and economic benefits it delivered during a critical time offers a more comprehensive picture of its value to Canada and its citizens. Our commitment to rectifying the identified shortcomings in the ArriveCAN project extend beyond mere acknowledgement. The departments are actively implementing measures to enhance the procurement and project management practices to prevent such discrepancies in the future. These efforts are crucial in restoring public trust and ensuring that taxpayer funds are utilized effectively and responsibly. We recognize that there is more work to be done. The journey toward improving our procurement processes and ensuring the efficient use of public funds is ongoing. However, it is important for Canadians to know that these steps toward corrective action are not merely planned; they are already in motion. As we move forward, we will continue to support the ongoing work of investigators and auditors. We welcome their recommendations and are committed to implementing them to strengthen our procurement practices further. The Government of Canada remains resolute in its pledge to uphold the principles of accountability, transparency, process integrity and value for money in all its endeavours. Let me reiterate our unwavering dedication to learning from the ArriveCAN experience. Our goal is to ensure that our responses to any challenges are both effective and aligned with the prudent management of public resources.
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