44th Parl. 1st Sess.
February 27, 2024 10:00AM
- Feb/27/24 10:46:36 a.m.
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Mr. Speaker, when the member talks about accountability, what he has said is not really true. We need to put this into perspective with respect to what was taking place in a worldwide pandemic. Governments around the world were responding as much as they could. In Canada, I would like to think that we provided the types of supports that Canadians and businesses required, and there were all kinds of government expenditures.
We have a civil service, which is second to no other, and there is a process that needs to be followed, particularly for procurement. When the government has been made aware of issues related to it, it has been very transparent about it. Internal work has been done. Things have been been pointed out by the Auditor General, and the government is working to rectify those issues.
Is it not a responsible way for a government to react when it finds out, to take specific actions? That is exactly what this government has done.
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- Feb/27/24 10:52:31 a.m.
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Mr. Speaker, I would like to begin by taking a moment to state that this government expects all public servants to act in the manner that represents the values and ethics code for the public service, including the obligation to serve public interests under the law.
I can also tell members that the CBSA is comprised of dedicated and talented employees who are united in this effort to improve processes and maintain Canadians' confidence and trust as they continue to deliver on their important mandate.
I would like to extend my thanks to the Auditor General and the procurement ombud along with their respective teams. They undertook a tremendous project to dig deep into the complex procurement activities as it unfolded for the development of the ArriveCAN app. Their efforts are not wasted, as they are shedding light on an important issue that has a widespread impact across government. Both have pointed to significant gaps and shortcomings in the procurement processes, record keeping, roles and controls at the CBSA. The agency has assured the government that these recommendations, as set out in both reports, will serve as goal posts to addressing the gaps and concerns raised.
The CBSA has accepted all the recommendations and has already started implementing action plans in response to the recommendations set out in the reports. These plans reflect the work of the CBSA that it has already undertaken to date and the work it will be doing moving forward to ensure that all of its procurement actions are aligned with policies and processes, that the CBSA continues to operate transparently, that it has stronger regard for the value for money when outsourcing work and that all employees operate in a manner consistent with the CBSA code of conduct and public sector values and ethics.
Most notably, the CBSA has so far created the executive procurement review committee to approve contracts and task authorizations. This is providing more oversight on the contracting activities. Second, it will require employees to disclose interactions with potential vendors, which will increase transparency. Third, the CBSA has increased the capacity of its procurement group both to oversee procurement activities and establish a centre of expertise. It will act as a single window to help employees if they have questions or do not understand their authorities and obligations.
These examples are just a starting point of the CBSA, which continues to implement the action plans in response to the Auditor General's recommendations.
The CBSA recognizes that maintaining the trust of Canadians is paramount and will endeavour to do so by improving its internal management and ensuring that public policies are followed. Canadians deserve to have trust in their institutions and in the public service.
The CBSA is working with Public Services and Procurement Canada to improve its procurement practices to ensure strengthened controls, oversight and stewardship over contracting. So far, these discussions have led to its new procurement improvement plan. The agency already started to strengthen its processes and controls related to procurement planning, contract administration, corporate culture and proactive monitoring to reduce the risk of fraud, and more is to be done.
The CBSA is responding quickly to move forward in the right direction. One of the steps taken involved launching an internal audit of all contracting at the agency. It has also increased its oversight over the issuing of contracts and task authorizations. The CBSA is also now requiring employees with contracting authority to retake procurement certification courses.
Although these are simple steps, they will certainly improve the stewardship of contract administration within the agency, while still providing critical services to Canadians across the country.
I would like to use my time to also addressed concerns that have been raised around the value-for-money aspect of ArriveCAN, with the acknowledgement that the gaps in policies and controls existed in the procurement process. We do have to remember that the paper system was slow and costly and was not meeting the information requirements of public health officials. While we cannot disregard the very legitimate concerns raised in the Auditor General and procurement ombud reports over these allegations, there are still some positive aspects of the ArriveCAN app.
Last week, the AG appeared before the Standing Committee on Public Accounts and said that she does not think the value should be quantified. She acknowledged that there was some value in digitizing the old paper system at the border. The OAG's 2021 report on border measures covered this as well. I will quote from the AG's appearance last week.
I would add that there is also an enduring value to this application, as CBSA has now springboarded off what was done here to automate the border, something they had been working on before the pandemic. They used this as a sort of springboard to go there. There is some sort of enduring value left, post its use during the pandemic.
On this side of the aisle, we can agree that things could have unfolded a lot better. I do note that the pandemic context is an incredible management challenge, but this is absolutely no excuse to throw policy and procedure out the window. What we have learned in that regard is unacceptable, and I am glad to see that CBSA is taking that very seriously.
Across government, departments were called upon to be fast and flexible in providing services to Canadians, but this bias to action should not have come at the price of sound stewardship. Then, as now, public servants need to remain focused on documenting decisions and taking care of basic management fundamentals.
I can report that the CBSA has already made changes to address this, and we will take further action to ensure management practices are aligned with policies and deliver value for money going forward.
In order to avoid restrictive requests for proposals, the agency's new executive procurement review committee will look at the mandatory criteria in contracts to ensure that they are not overly restrictive. In addition, contracts above $1 million need to be approved by the CBSA's executive committee to ensure they do not undermine the fairness and openness of the bid solicitation process.
The CBSA is reinforcing government spending requirements and has already curbed its use of management consultants. The CBSA will continue to adjust our procurement governance and supporting documents so that they act as a quality control process to ensure mandatory criteria are not overly restrictive and do not undermine the fairness and openness of the bid solicitation process.
A culture change in procurement is happening and is necessary. I think that all members can agree that federal procurement is difficult to understand, but we can all understand that it needs to be done properly.
Again, we would like to thank the Auditor General and the procurement ombud for their work. These reports, along with the work of various standing committee studies on this matter mean that Canadians can rest assured that procurement in Canada is being examined and the results should be a positive net gain for taxpayers as we think of what kind of work we outsource and how.
I have acknowledged that we need to get to the bottom of what happened in this case, and we can also ensure that we tighten procedures to prevent the procurement process from any wrongdoing in the future. I think all parliamentarians should be concerned about the details of this situation.
However, after listening to several speeches already in this House today, I do question the sincerity of the Conservative Party, which will say anything to grab power. Their actions do not actually match the tough talk that they often speak in this place. With my remaining time, I would like to demonstrate to Canadians that while we are deeply committed to fixing the procurement process, the tough talk of Conservative members in this place is all talk and not actually based in reality. I think Canadians need to get a picture of how deep this procurement issue goes.
In questions, my hon. colleagues have raised the fact that GC Strategies, which is at the heart of this issue, went by a different name previously, or merged from, Coredal Systems Consulting Inc.. With the remainder of my time, I would like to read into the record all of the contracts issued by the previous Conservative government using this very same company that it now claims to be Liberal insiders.
They include the following: April 1, 2015, total value over $541,000 for technology consultants; March 3, 2014, over $2.3 million for consultants and a programmer-analyst for Transport Canada while the Leader of the Opposition served as parliamentary secretary; March 26, 2013, over $1.8 million for Transport Canada; November 28, 2012, over $287,000 for management consulting; October 29, 2012, over $968,000 for telecom consultants; October 17, 2012, over $140,000 for other professional services not elsewhere specified; October 17, 2012, over $233,000 for other professional services not elsewhere specified; March 29, 2012, over $213,000 for management consulting; March 1, 2012, $675,000 for information technology consultants; August 9, 2011, over $24,000 for training consultants.
It continues: July 29, 2011, over $24,000 for a sole-source contract for IT consultants at the same company that the Conservatives claim does not do any IT work as I am reading out all of the IT contracts that they approved; July 29, 2011, over $24,000 for sole-source contracts for Transport Canada; May 24, 2011, over $129,000 for Public Works and Government Services, for a procurement tool; and October 26, 2010, over $21,000 for management consulting at Fisheries and Oceans.
Although this issue is deeply concerning, in regard to what happened here, we can see that the procurement issues are pervasive and it is why this review is absolutely necessary. It is why we committed to doing the work to fix the procurement process to put in better oversight and transparency. However, when Conservatives talk tough, Canadians should know that their actions are very different.
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- Feb/27/24 11:06:52 a.m.
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Mr. Speaker, we did no such thing. While the member opposite stands up and defends his party's record, let me just point out again April 1, 2015. While his leader sat around the cabinet table, their government approved $541,000 in IT, technology and telecommunications consultants for the very same company that the Conservatives are criticizing.
I acknowledge that there is a need to get to the bottom of what happened here and to fix the procurement process, but when Conservatives talk with outrage, we should know that it is very fake, given their record. I would ask for unanimous consent to table, in both official languages, the Coredal-Conservative contracts in this House so the members opposite can see just how much money they spent.
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- Feb/27/24 11:09:54 a.m.
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Mr. Speaker, I acknowledge that all parliamentarians should be very concerned about what we have learned. I thank the hon. member for his advocacy on this.
We do support the ongoing investigations. There are several, in terms of the Auditor General. There is now the Information Commissioner, who we also support. The CBSA has acknowledged that it will work with them.
As I said in my speech, we do want to get to the bottom of what happened here. The agency has already put in place a number of measures to improve the procurement process but it is also very open and willing, based on the further investigations that happen and based on the further work of the House and the committee, to implement recommendations that will ensure that this does not happen again.
I acknowledge my hon. colleague pointing out the smoke and mirrors from the Conservatives, because they raise no such issue except when they think it benefits them politically, except, again, as I pointed out in my speech, those in glass houses, given their history with this very company.
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- Feb/27/24 11:12:48 a.m.
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Mr. Speaker, in fact, I mentioned in my speech that the CBSA has already put in place conditions to cancel or no longer move forward with management consultants. There is more work to be done, based on the results of some of the work done in multiple reports.
I also want to point out that one of the things highlighted by the AG was the fact that the CBSA routinely approved and paid invoices that contained little or no details of the work completed. This is a very serious issue, an issue that, again, the Conservatives seem outraged about, yet they themselves did the same with the very same companies.
To my hon. colleague's question, this is why CBSA has also initiated a full review of CBSA procurement practices. It is because we want to make sure, as I said in my speech, that Canadians see value for money and that there is transparency in the system. This is not something that just happened overnight, but we are committed to fixing it and giving that assurance to Canadians.
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- Feb/27/24 11:14:52 a.m.
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Mr. Speaker, my hon. colleague has posed yet another question about this situation. That is why I am happy to see that the CBSA and the commissioner are working with all agencies to look into this. In fact, they have also reported any concerning allegations to the RCMP.
As my hon. colleague raised, this company has a long-standing history with the Government of Canada under the previous Conservative government, so perhaps it became very used to working in this system. I do not know, but I do think it is important that we not only get to the bottom of this and look at what happened here but also, more importantly, fix procurement across the system.
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- Feb/27/24 11:32:21 a.m.
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Mr. Speaker, nearly two weeks ago, the Auditor General released a scathing report regarding the government's handling of the ArriveCAN app. The Auditor General said that the management of the app was one of the worst examples she has seen in her career.
Now we are learning that the ArriveCAN file is just the tip of the iceberg. The purpose of the app was for people to register travel with the CBSA in the context of COVID‑19. The app was supposed to cost $80,000. Another company said it would have cost about $250,000 to develop. We are talking about an app that cost only $12 million in France for a population of 70 million people. I could name other examples where this app cost far less in other countries. Unfortunately, in Canada, it cost nearly $60 million.
I mentioned the tip of the iceberg. The fact is, the Auditor General and her team could not even put an exact figure on the cost of the app. That is where the problem starts. That is the crux of the problem. It has to do with a procurement process that was completely disregarded. The Auditor General and the procurement ombud have come forward with some pretty serious allegations that Public Services and Procurement Canada and other departments simply did not follow what is supposed to be an exemplary procurement process worthy of a G7 country.
Here are a few examples. The average daily cost for this app was about $1,090, whereas it is usually around $675 for IT positions.
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- Feb/27/24 11:34:07 a.m.
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We already know that the companies that billed their services to the government billed nearly double what it should normally cost. Here are other examples.
In roughly 76% of applicable contracts, the human resources detailed in the winning bid did not do any work. In other words, huge contracts were signed that included resources who, at the end of the day, never did any work. We have an entire department that is supposed to do its job when it comes to the procurement process and is supposed to have processes that work and are followed. In both cases, that work was not done.
Here is another example: 18% of the invoices submitted by contractors that were audited by the Auditor General were not supported by adequate documentation to determine whether they were related to ArriveCAN. That is why, from the outset, I said that they did not even know how much ArriveCAN cost. It is inherently problematic. There is such a lack of documentation that one might think we were in a third world country. Having audited procurement processes in developing countries myself, I think that they have better procurement processes than we do. It is shameful.
There is a second level to this. Serious misconduct is suspected. In her report, the Auditor General indicated that she noted situations in which Canada Border Services Agency employees who were part of the ArriveCAN project had been invited to dinners and other activities by suppliers. There is no evidence that the perks that these public servants received were reported to their superior as they should have been.
That is something that we do as parliamentarians. If we receive a gift, we report it. We are closely scrutinized, and that is how it should be. Obviously, the top priority of public servants is to serve the public. Public servants know that, when they accept their position, they must serve the public to the best of their abilities. As a result, they must report any appearance of a conflict of interest. That is essential when a person enters the public service.
There has been a lot of talk about GC Strategies. Let us not forget that GC Strategies was known as Coredal Systems Consulting back in the Conservatives' day, and it too received contracts. However, we have also heard about another company called Dalian. According to what we learned this morning, the owner of Dalian—another company that received millions of dollars for the ArriveCAN app—has bank accounts in tax havens. No surprise there. Receiving that much money but providing little or no service certainly raises questions about misconduct. That is where things stand now. We must let the RCMP do their job.
We also know that the owners of GC Strategies have numbered companies. I just wanted to share that. Numbered companies allow for a lot of leeway. Again, we will let law enforcement agencies investigate that. There are some serious questions about misconduct here.
One thing is certain, companies like Dalian and GC Strategies had contracts under the Conservatives. Whether we are talking about GC Strategies or Coredal Systems Consulting, these companies had contracts. However, there is another thing. The contracts with these consultants, these two companies in particular, simply skyrocketed starting in 2017. The increase started in 2016 or 2017. Companies such as Dalian received hundreds of contracts from the federal government. Where did the federal government, the Liberal government, lose complete control of its public service, its public servants, its departments? Was it a lack of leadership? Was it recklessness? That is what we are trying to understand in this story. Again, ArriveCAN is just the tip of the iceberg.
The number of contracts awarded on a non-competitive basis has also skyrocketed. Under this government, the problem is systemic. Expertise is being lost. On the one hand, we have the Conservatives. During their reign, they eliminated positions, cut public services, reduced the number of public servants and hobbled public servants' and departments' internal expertise. On the other, we have a Liberal government and its slew of middle managers. Many of those jobs were cut. They may no longer have the internal expertise, but they want to do development. They are zooming around all over the place trying to do development. They end up relying on external consultants like Dalian and GC Strategies to do the work that the government should be doing. The number of these contracts is growing by leaps and bounds.
We are not just talking about competitive procurement here. We are talking about the awarding of a huge number of non-competitive contracts. In 2023 alone, 27% of contracts were awarded non-competitively. Do members know in which department that happened? It was at Public Services and Procurement Canada, the department that is supposed to set the example and that is supposed to have processes and ensure that they are followed.
Such was not the case since 27% of the contracts awarded by Public Services and Procurement Canada were awarded non-competitively. How then can we guarantee that the government is providing proper services for every dollar spent? Let us remember that we are talking about taxpayers' money. Perhaps some people are so far up their ivory tower that they forget that they are managing taxpayers' money. What is more, when contracts are awarded non-competitively, there is no guarantee that they will be effective or managed properly. We see that Public Services and Procurement Canada did not even follow up on those contracts, and it is not the only one. The CBSA also has a lot to account for. I have given examples of poorly monitored procurement and talked about how serious misconduct is suspected. Basically ArriveCAN is just the tip of the iceberg.
The Bloc Québécois will support this motion. However, as my colleague from Beauport—Limoilou said, this motion may not go far enough. Our leader was the first to call for a public inquiry. The Canada Border Services Agency may be the worst, but we do not need to look far to see that quite a few problems exist elsewhere. Perhaps it should be put under administrative supervision. In any case, a lot more needs to be done to get to the bottom of this, because there really is a widespread problem. We saw it with the spending on McKinsey. Ultimately, McKinsey was not necessarily the problem. The Liberal government may have lost full control of the departments, leading it to become dependent on consulting firms to the point where it has now lost all control. Part of the blame lies with the Conservative government's irresponsible actions, including cuts to the public service, which created a need for outside expertise.
To conclude, Quebeckers can see that they will have an irresponsible government if the Conservatives come to power. They also see that the Liberals are an irresponsible government that is incapable of managing its departments. Fortunately, we have other options in Quebec. We have the best option, which is to leave and govern ourselves, because, strangely enough, we do not hear of many cases like ArriveCAN in Quebec. In fact, Quebec's app cost a fairly reasonable amount, about $10 million, which is not the case for Canada's app. I would like to end on that note and on the fact that, in Quebec, we are far better at managing our own affairs. If we have to choose between the plague and cholera, we prefer our country, by far.
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- Feb/27/24 11:57:09 a.m.
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Mr. Speaker, for me there are a couple of issues, and I will very quickly break it down. There is the procurement process, but there is also, from my perspective and what I think my constituents would be saying to me, the question of how one company gets into a position in which it could do what GC Strategies actually was able to do.
Part of it is that we have to look at the origins of the company, which had actually been around for many years; it was under a new name, of course, as it had been under Coredal. I wonder whether the member could provide his thoughts on that aspect. To what degree should we be looking at how a company could surface and get into a situation like we find ourselves in today?
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- Feb/27/24 12:28:46 p.m.
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Madam Speaker, there are two issues. There is the issue of the procurement process, and I will get into that. Quite frankly, my constituents would be very much concerned about how a company would be able to get these types of contracts and they would ultimately question the real value of those contracts.
One way we can find out is to look at where this company comes from. This company was not just created in the last few years; it has been around for a number of years. It was created under Stephen Harper. This is a company where the board received contracts, many contracts, under the Stephen Harper government. Would the member not agree that we should get a better sense in terms of—
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- Feb/27/24 1:18:54 p.m.
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Madam Speaker, my hon. colleague spoke about the Conservatives' speeches and behaviour in the House today. I found it interesting because the government has acknowledged that there was a problem, that procurement practices need to be improved and that we need to get to the bottom of this. We have even already implemented solutions to prevent this from happening again. However, the Conservatives do not offer any solutions.
In his speech, my hon. colleague spoke about a stunt. I found it interesting that when I went to Conservative Twitter accounts that spoke about this issue, they were linked to the Conservative Party page to donate.
Should Canadians be concerned about the fact that Conservatives are trying to use this to fundraise instead of protecting transparency for Canadians' dollars?
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- Feb/27/24 1:32:31 p.m.
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Madam Speaker, not one idea was presented with respect to improving procurement. The question I have for the member is this. He posted something on Twitter about this issue, which goes to show just how serious he is. If we click on the link he has provided on Twitter, it then goes to a Conservative fundraising page, which states. “Investigate the ArriveScam boondoggle....Donate.”
Does the member use any public dollars at all in regard to his Twitter account? If there is a scam, it is coming from the Conservative Party.
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- Feb/27/24 3:32:51 p.m.
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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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- Feb/27/24 3:35:46 p.m.
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Madam Speaker, in debating this, I have tried to break this into two components. One is on the procurement process. The member provided a lot of positive thoughts with respect to that issue. The other one is related to how a company such as GC Strategies has been able to get to the point where it can get those sorts of contracts. I made the suggestion that we look at the origins of the company, which goes back a number of years. It is the same company but it just changed its name.
Is there merit in looking at how an individual company was able to come virtually from nowhere a decade ago to the point where it is today?
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- Feb/27/24 3:36:46 p.m.
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Madam Speaker, that is the essence. The essence was that there were practices in procurement that fostered a two-man company, dating back decades, to find ways to become a preferred client of the Government of Canada and through that preferential treatment being able to source resources, individuals, to serve whether it is this government, the government before or the department during the time that is needed.
It goes back to what we should be doing, and I hope we will do it, which is re-evaluating our procurement processes so it is not such a lengthy time, and also accounts for other individuals who actually do the work to speed up the process of engaging with the government.
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- Feb/27/24 4:21:54 p.m.
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Madam Speaker, the word that comes to mind is “wow”. That is quite the extreme statement coming from the member. So much for facts. I hope he does not believe 90% of the things he said.
The question that comes to mind is this. I wonder whether he would hold the very same standard to his own leader, who was responsible for the issuing of millions of dollars in contracts to Coredal Systems Consulting Inc., the very same people who are with GC Strategies. Would he apply the same principles to the leader of the Conservative Party of Canada that he is applying to others? Maybe he should skip the character assassinations and focus on the issue.
If he is not going to answer that question, maybe he could offer an idea from Conservatives as to how we can improve the procurement process.
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- Feb/27/24 4:24:23 p.m.
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Madam Speaker, I too enjoy working with my friend on a number of committees. I always value her sage advice, her thoughtful questions and the probing way she too wants to get to the bottom of this. I think she touched upon a very important point.
We are basically speaking in the House about GC Strategies and what it did to the procurement process within the arrive scam context. However, with respect to the broader point and to respond to my colleague, I think it is symbolic of what has been allowed to occur with the corrupt Liberal government. If it occurred with arrive scam, one only has to wonder how many other millions, if not billions, of wasted dollars have gone to other similar contractors and subcontractors, so I think there is an excellent opportunity to expand this in many other ways onto many other committees.
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- Feb/27/24 4:40:58 p.m.
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Madam Speaker, misconduct of any kind in our procurement processes is never acceptable. For about 10 minutes, I gave a speech about all the things we have in place that will protect processes. They do everything they can to inform our bureaucracy and our government officials, who act on behalf of our government, to ensure that they have processes in place such that we are doing our best to spend our public money ethically. When things go wrong, we have a number of mechanisms that allow us to look at what went wrong and how we can do better the next time around.
I started my whole speech by giving some context. We went through a huge pandemic that had huge economic consequences on our lives and in the world today. Surely there were going to be some mistakes made, and it is right for us to be looking at that right now. We will make some corrections and do better as we move forward.
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- Feb/27/24 4:42:36 p.m.
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Madam Speaker, our government takes its responsibility for the stewardship of public funds very seriously, and we are committed to ensuring that government spending stands up to the highest levels of scrutiny. Contracting for goods and services is a routine part of business in any government. It enables us to deliver the services and programs that Canadians need and expect, and we have important guardrails in place to maintain the integrity of the process.
Government procurement is carried out in accordance with a number of regulations, trade agreements, policies, procedures and guidelines. This is the governing framework when it comes to federal procurement that public servants are expected to follow. Even in a time of crisis, such as what we faced during the global pandemic, basic rules must be followed to ensure that we are getting value for money while meeting the needs of Canadians, as urgent as those needs may be. Clearly, that did not happen in the case of ArriveCAN.
The revelations brought forth by the Auditor General and the procurement ombudsman are deeply troubling, to say the least. I think we can all agree with that. We know that there are other investigations under way, which we fully support, so we can get to the bottom of this issue. I can assure the House that any wrongdoing will be addressed. In the meantime, we owe it to Canadians to immediately act upon the recommendations of the Auditor General and the procurement ombudsman, and that is precisely what our government is doing.
Public Services and Procurement Canada, or PSPC, as it is commonly known, plays an important role in these matters. When it comes to deciding whether to contract out certain projects, the government takes many factors into consideration. It starts with the proposition that contractors are there to support the good work of our world-class public servants. Where it is determined that there is need for professional services, PSPC then works as the federal government's central purchasing agent with departments to procure those services in an open, fair and transparent fashion. PSPC procures on behalf of other departments and agencies when requirements are beyond their own contracting authority and advises on the steps needed to ensure that money is well spent.
With regard to ArriveCAN, we know that it was put in place urgently to track and trace travellers as they crossed the border and limit the spread of COVID-19 within Canada. Public servants acted with extreme urgency on a number of fronts during the early days of the pandemic to keep Canadians safe, and the ArriveCAN app was a critical tool at that time. I want to be clear that the issues with ArriveCAN should not reflect on the public service's overall response to the pandemic. It should be proud of its work to procure vital supplies, as well as the vaccines, that ultimately helped lift Canada out of crisis.
However, unlike those other urgent procurements at the time, it is clear now that the way procurement was done in support of the creation and maintenance of the ArriveCAN app was unacceptable. Indeed, there are many questions surrounding the management and integrity of the government's procurement processes for IT services associated with ArriveCAN.
For its part, PSPC is already taking action to ensure that lessons learned are turned into concrete action. That means going beyond addressing the specific issues related to any one specific contractor, as important as it is to hold them to account, and fixing the broader issues that have allowed this mismanagement to happen in the first place. In November, PSPC temporarily suspended all delegated authorities, including the authorities of the Canada Border Services Agency, to authorize professional services based on task authorizations. The department also provided direction to its procurement officers to ensure that all task authorizations include a focus on clear tasks and deliverables. We are glad to see that the Auditor General agreed with the actions we have taken.
All federal departments must now formally agree to a new set of terms and conditions to obtain access to select professional service methods of supply. PSPC is also updating its guidance to aid departments in procuring effectively and responsibly when using PSPC's procurement instruments under their own authorities.
Of course, adhering to procurement policies, directives and guidelines is a shared responsibility across government departments and agencies. In the case of ArriveCAN, it is quite clear that a handful of public servants failed on that front. Our government is committed to fixing the system so that cannot happen again.
Let me be clear, when it comes to holding suppliers accountable, PSPC is looking at ways to improve its integrity regime, including with regards to fraud, which will help us take swift action against bad actors for their misconduct. I will note that, on an ongoing basis and as part of the regular business, PSPC proactively seeks to uncover improper conduct and investigates potential wrongdoings in its contracts. Should an investigation reveal wrongdoing, PSPC informs law enforcement for possible criminal investigation. The department also seeks to recover funds when wrongdoing is found.
However, members opposite want to push lies. They say that “Well, we're focused on finding the truth and making sure that those responsible are held accountable—
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- Feb/27/24 4:53:51 p.m.
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Madam Speaker, I spend a fair amount of time with that colleague on OGGO on the issue. I appreciate his comments and I take him at his word on his sincerity to address the procurement issues. One of the things that came up from the procurement ombudsman's report is what it calls a bait and switch, where services are proposed but actual services delivered to the government are less than what was in the contract. I wonder if the member can fill us in on what PSPC is doing across the breadth of government to address the bait and switch issues that have been brought forward by the ombudsman.
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