Federal contracting is near “the bottom tier” in accountability and fairness, Procurement Ombudsman Alexander Jeglic told senators on Tuesday, per Blacklock’s Reporter. Jeglic told the Senate National Finance Committee that irregularities like sweetheart contracting were symptomatic of a “broken system.”“I would like to take this opportunity to share my frustration regarding the current state of federal procurement,” testified Jeglic.“To put it plainly, the federal procurement system requires urgent reform.”“The system has not improved during my tenure. I am in year six going into year seven. I have done significant volumes of reviews. I am very confident in saying it’s time to replace the car.”The Department of Public Works approves some $25 billion in contracts each year, said Jeglic. Federal management compared poorly to other countries, he added. “The Canadian system is kind of near the bottom tier.”.More federal contracting fraud uncovered, costing Canadians millions.Senators called Jeglic for questioning over his April 15 report on irregularities in contracts to one federal consultant, McKinsey & Company. The Procurement Practice Review Of Contracts Awarded To McKinsey & Co. found multiple cases in which bidding rules were rewritten to benefit McKinsey. The firm received a total $200.4 million in contracts since 2015.Dominic Barton, former managing director of McKinsey & Co., is a personal friend to Finance Minister Chrystia Freeland and had dined at her Toronto room.“I knew Chrystia Freeland when she worked at the Financial Times,” Barton testified at 2023 hearings of the Commons Government Operations Committee.“So I knew her from before. I did know her.”“Would you consider yourself a friend of Chrystia Freeland?” asked Conservative MP Stephanie Kusie.“I knew Chrystia Freeland,” replied Barton..Ombudsman calls for 'common sense' overhaul of federal contracting system .The McKinsey executive said he also personally introduced Prime Minister Justin Trudeau to businesspeople at a 2016 World Economic Forum conference in Davos, Switzerland. Trudeau in 2019 appointed Barton as ambassador to Beijing.“I think he respects me,” said Barton.Ombudsman Jeglic yesterday said preferential treatment for McKinsey was symptomatic.“What transpired with McKinsey is a symptom of a broken system and my office has been identifying many of the same issues year after year, report after report,” he said.“Nonetheless I remain hopeful.”The current system is painfully bad, said Jeglic. “We have to undergo procurement ourselves as an organization and feel the frustration of what that process feels like,” he said.“If you’re just abstract then it’s pretty easy to come in with recommendations, but when you’re a participant you feel those pains directly.”“The pain of actually procuring things in a timely manner and getting a successful outcome is not easy. I am not suggesting I have all of the answers but I do think it is incredibly important to stop applying Band-Aids to the existing system.” .Poilievre calls for probe into $66 million in federal contracts given to McKinsey & Company
