Federal managers must now sign a formal attestation confirming they “thought about” whether hiring consultants is appropriate before approving contracts, Treasury Board officials told senators Tuesday, as scrutiny mounts over $25 billion in annual consulting expenses despite a ballooning federal payroll.Blacklock's Reporter says Emilio Franco, an executive director with the Treasury Board, told the Senate national finance committee that new accountability measures have been implemented to curb overreliance on outside contractors. “Now before a professional services contract is signed, a manager has to attest to a number of things,” Franco said. “One, that they thought about whether or not consultants were the right path to go forward.”He said managers must also confirm they have taken proper steps to ensure the decision is backed by integrity and adequate controls..Despite a 2023 budget pledge to “reduce spending on consulting,” no meaningful reductions have occurred.Franco said new limits were introduced last week by the Department of Public Works, including caps on both the size and duration of consulting contracts.“These measures should play a key role in reducing the size of these contracts and how much is going to these types of firms,” he said.The announcement comes after years of criticism over lax oversight and excessive spending on contractors..Procurement Ombudsman Alexander Jeglic, who has reviewed federal contracting practices since 2017, told the same committee last November that the system is dysfunctional.“I am very confident in saying it’s time to replace the car,” said Jeglic, comparing the procurement system to a broken-down vehicle. “The Canadian system is kind of near the bottom tier,” he added.Jeglic’s concerns followed revelations about preferential treatment for McKinsey & Company, which was awarded $200.4 million in contracts since 2015.He said the firm’s case illustrates a broader problem.“What transpired with McKinsey is a symptom of a broken system,” he said. “My office has been identifying many of the same issues year after year, report after report.”
