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Decentralized Democracy

House Hansard - 286

44th Parl. 1st Sess.
February 27, 2024 10:00AM
  • Feb/27/24 11:05:55 a.m.
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Mr. Speaker, I heard my colleague make some quotes about $24,000 contracts and $100,000 contracts. This is a $20-million middleman contract. It is absurd and it was done with no accountability, no contracts and nothing of any sort to show what the money was for. It was a shovelling of taxpayer money into the pockets of a few chosen so-called IT consultants who are really just middlemen. It is something that is beyond the realm of what Canadians see as acceptable. Would my colleague please address the fact that this needs to be explored; but also explain to the House why her party filibustered, obfuscated and tried to hide this from Canadians for almost two years?
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  • Feb/27/24 11:27:50 a.m.
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Mr. Speaker, first of all, I did not name the member, I simply named the company. Second, I did not lie because FTI Professional Grade Inc. did indeed receive a contract seven days after the company was created. It then transferred that contract to Baylis Medical. Seven days after it was created, that company, FTI, received a $237-million contract for which we can assume there was a 15% to 30% commission. So I did not make anything up. All one needs to do is follow the paper trail in the newspapers as well as the budgets and contracts allocated during the pandemic.
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  • Feb/27/24 11:28:42 a.m.
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Mr. Speaker, I appreciate the comments made by my colleague from Quebec, but I have other comments and questions about other companies that received a lot of grants and contracts from the Liberal government during the pandemic. In my opinion and that of my colleagues, the Liberals hid behind the pandemic to hand out a lot of money to their friends. Is the member aware of the other contracts like the one that went to Medicago? What has been happening with Medicago from the time the contract was awarded until now?
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  • Feb/27/24 11:43:43 a.m.
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Mr. Speaker, I have a question for my colleague from the Bloc Québécois. In her speech, our Liberal colleague talked about the contract awarded to GC Strategies, a company formed in 2015. We have heard that this company had a number of contracts with the Government of Canada before that. However, the company did not exist before 2015. What does that mean?
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  • Feb/27/24 1:15:22 p.m.
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Madam Speaker, it is important to recognize that all governments present and past, Liberal and Conservative here in Ottawa have used contracting out, as have all political parties at the provincial level. Even New Democratic governments will contract out consistently. There are varying amounts of money for which they will contract out and there are different sizes of budgets. However, I would like to emphasize that all political parties at different levels of government see the true value of contracting out and at times and in different cycles, such as a worldwide pandemic, recessions or whatever it might be, there is more contracting out done than at other times. I am sure that the Government of Canada, a great supporter of our civil service, will continue to support the civil service the best it can.
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  • Feb/27/24 4:54:31 p.m.
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Madam Speaker, that is a good point. We actually did deliberate that during our committee sessions. We also noted that this practice is constant throughout procurement in industry and various other governments, and certainly it was the case in the Conservative government previously. For the portion of the contract that was provided, oftentimes the employer will determine other relevant activities that are occurring, things change and then they are used for other functions, but that is not a common practice. In this particular case, because things were being done so quickly and urgently, I think the ombudsman made it clear that there was quite a lot of that switching that was taking place during that moment of crisis. We need to be careful about ensuring that the work that was prescribed and the reasons they were contracted is what they will ultimately do. That is the case in a contract and subcontract basis, which, as I said, is a very common practice throughout the industry. We are sensitive to the degree of skills and abilities within our civil service to do that work, and when it is not able to, we prescribe outside to do so, and that is what has occurred here.
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  • Feb/27/24 5:13:11 p.m.
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Madam Speaker, I agree a tiny bit with my colleague from Vancouver Kingsway's comments. There is some value done that cannot be done internally, but there is a lot being done that should have been done internally. I will give an example. The government gave three contracts to Deloitte, at $75,000 per contract, to do RFP fairness assessments for a security contract for the same event on Vancouver Island. This is work that PSPC should be doing: fairness assessments. We do not need to hire outside contractors to tell the government that the work it would be doing follows the rules. The government should just follow the rules, and use the employees we have to ensure the work is done correctly.
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  • Feb/27/24 6:30:59 p.m.
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Madam Speaker, the member opposite raises an important issue about procurement activity, which was actually prevalent during the Conservative time and similar to what we are unravelling today with the same characters at play. Our government takes the responsibility as stewards of public funds very seriously, and we are committed to ensuring that the government's spends stand to the highest level of scrutiny. Contracting for goods and services is a routine part of the business of government, it is instrumental in enabling us to deliver the services and programs that Canadians need and expect, and we have an important need to put guardrails in place to maintain the integrity of that process. When it comes to deciding whether to contract out certain projects, many factors are taken into consideration. It starts with the proposition that contractors are there to support the good work of our public servants where it is determined that there is a need for professional services. Public Services and Procurement Canada, as the federal government's central purchasing agent, will work with departments to procure those services in an open, fair and transparent fashion. The department procures on behalf of other departments and agencies when requirements are beyond their own spending authority and advises on the steps needed to then ensure that the money is well spent. However, what we have unravelled, and what our government has been reviewing, is what occurred or what did not occur with respect to those guardrails. These procurements are carried out by public servants in accordance with a number of regulations, trade agreements, policies, procedures and guidelines. The Government of Canada has a governing framework in place when it comes to procurement that public servants are expected to follow. The ArriveCAN app was put in place urgently to track and trace travellers as they crossed the border to limit the spread of COVID-19 within Canada. Our government acted with extreme urgency on a number of fronts during those early days of the pandemic to keep Canadians safe, and the ArriveCAN app was a crucial tool at the time. We are proud that we could be there for Canadians during the pandemic, notwithstanding the fact that the opposition was opposed to many of the services and supports that were given to Canadians and businesses, including the opportunity to keep border crossings open. However, as has been noted repeatedly during today's debate, we know that there are serious and valid questions surrounding the management and integrity of the procurement processes for professional services associated with ArriveCAN, and we owe it to Canadians to take immediate action to improve our processes. The reports by the Auditor General and the procurement ombudsman underscore the need for these improvements. Public servants and PSPC officials have already taken steps to implement the ombudsman's recommendations to strengthen the integrity of the procurement process. This includes work to improve evaluation requirements, increase transparency for suppliers around their pricing and use of subcontractors, improve contract documentation, improve clarification of work requirements and activities. It also includes work to evaluate resources just before the start of work to make sure that their services are actually delivered by the proposed resources to avoid some of that switching of services by those who are appointed. We will ensure that the lessons learned from the ombudsman and the Auditor General reports are turned into concrete action and make certain that the deficiencies uncovered do not occur again. We are committed to a fair and transparent procurement process for the best value for all Canadians.
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