Rideau Hall has been ordered to compensate an unsuccessful bidder after Canada's Procurement Ombudsman found the Office of the Secretary to the Governor General violated federal contracting rules when awarding a $42,780 IT contract.Procurement Ombudsman Alexander Jeglic concluded the office improperly evaluated bids using a requirement that had not been disclosed to competing suppliers.“There is sufficient evidence to conclude the Office of the Secretary to the Governor General evaluated the complainant’s bid using a criterion that was not disclosed,” Jeglic wrote in his report.The watchdog ordered Rideau Hall to pay the unidentified complainant $4,278, representing 10% of the contract's pre-tax value.The findings were detailed in a report titled Acquisition Of Senior IT Security Systems Operator Professional Services By The Office Of The Secretary To The Governor General.According to the report, Rideau Hall issued a tender for IT services in 2025 that attracted bids from four companies.The $42,780 contract was awarded to an unidentified supplier on November 26, but unsuccessful bidders were not immediately notified of the decision.One of the losing companies contacted Rideau Hall on December 5 seeking confirmation of whether a contract had been awarded.Officials did not respond until January 14, when they informed the company another supplier had won the contract based on its ability to meet a delivery deadline.However, the deadline used to evaluate the bids had not been clearly disclosed in the tender documents..The ombudsman's investigation found the original contract notice “contained inconsistent information regarding the anticipated contract period, start date and delivery date.”Companies that did not commit to completing the work by March 31 were disqualified, even though that requirement had not been communicated to bidders.Rideau Hall acknowledged problems with the contracting process.“We recognize certain aspects of the technical evaluation process may not have been conducted in a manner fully consistent with the principles of fairness and transparency,” the office said in a statement.The findings come after repeated warnings from Jeglic about broader problems with federal procurement practices, including concerns that contracting rules are being manipulated to benefit certain suppliers.During 2024 testimony before the Commons government operations committee, Jeglic warned that stronger action was needed to address irregularities in federal contracting.“I am fearful if I don’t start acting in a more aggressive manner, significant changes will not come,” he told MPs.“I don’t think Band-Aid solutions are the answer.”Then-Bloc Québécois MP Julie Vignola (Beauport-Limoilou, Que.) questioned whether the problems extended throughout the federal government.“Are we dealing with a systemic problem here?” Vignola asked.“The answer is a big one,” Jeglic replied.“I was hoping I would have the opportunity to raise this. We are seeing consistent problems across the federal procurement landscape.”.Jeglic warned some individuals were taking advantage of weaknesses in the federal contracting system.“People are using the system in ways it shouldn’t be used,” he said.The ombudsman called for Parliament to appoint a chief procurement officer to oversee federal contracting, which is currently managed through the Department of Public Works.Liberal MP Parm Bains (Steveston-Richmond East, B.C.) also raised concerns during the committee hearings about personal connections influencing the awarding of government contracts.“Things are happening where you know someone,” Bains said.“All the people getting procurement processes all know one another.”The Rideau Hall investigation did not establish that personal relationships influenced the IT contract award. Its findings focused on the use of an undisclosed evaluation requirement and inconsistencies in the tender process.The ombudsman's decision requires the Office of the Secretary to the Governor General to compensate the unsuccessful bidder for the unfair procurement process.
