A report released Tuesday by the Auditor General cites the federal government's failure to follow contracting policy. It states that between April 2015 to March 2024, the government awarded 106 professional service contracts to GC Strategies Inc., an information strategy company based in Ottawa that produced the ArriveCan app.The contracts were valued at $92.7 million, with $64.5 million ultimately paid out. Auditor General Karen Hogan said the Canadian Border Services Agency gave four contracts worth $49.9 million to GC StrategiesHogan wrote that only 54% of contracts her office examined had evidence of goods and services being delivered. "We concluded that professional services contracts awarded and payments made by federal organizations to GCStrategies and other companies incorporated by its co-founders were not in accordance with applicable policy instruments and that value for money for these contracts was not obtained," said the AG.“Despite this, federal government officials consistently authorized payments,” reads the report.Conservative leader Pierre Poilievre was appalled.“This is a massive scandal. The facts are extraordinary. There was no evidence of added value. In a case where you see no added value, why are you paying the bill?” said Pierre Poilievre. .The Auditor General also reports security clearance requirements for the contracts were not followed. .In the report's sample of 35 contracts, 33 required a security clearance. The report found that in 50% of these contracts — valued at approximately $6 million — federal organizations were unable to provide the appropriate security clearances before the contracts were issued. Furthermore, 21% of contracts with security requirements had contract resources working throughout the contract period without the proper security clearances on file. The report reveals the federal government did not take into account the market rate for the services provided. Claiming that the government has a responsibility to ensure this, when applicable.
