Question Period Note: Amazon COVID-19 supply distribution deal

On April 1, 2020 the Government of Canada entered into an agreement with Amazon to help manage the distribution of personal protective equipment (PPE) and supplies purchased by the government, to support the COVID-19 response. Amazon is providing these services to Canadians at cost, without profit until June 30th.

• The health and safety of Canadians is our top priority, and that means ensuring life-saving medical supplies reach our frontline healthcare providers as quickly as possible
  • We have entered into an agreement with Amazon, providing us with an access to its technology interface to allow provincial and territorial health authorities to order PPE purchased by the federal government
  • Canada Post and Purolator are delivering the PPE and supplies ordered
  • This agreement will enhance distribution capabilities of the federal government to help ensure that supplies make it into the hands of healthcare workers across the country as quickly as possible

If pressed on the rationale for Amazon:

• This agreement will support the distribution of vast quantities of masks, gloves and other equipment purchased by the federal government
• This is about getting life-saving medical equipment into the hands of our frontline workers as quickly as possible

If pressed on the Public Health Agency of Canada’s (PHAC) role:

• PHAC will maintain oversight of all orders from provinces and territories to ensure supplies are distributed appropriately

If pressed on Amazon’s role:

• These services are being provided at cost, without profit until June 30th
• Amazon provided an adapted customer interface that allows provincial and territorial health authorities to request supplies directly

If pressed on Canada Post and Purolator’s role:

• Canada Post is currently handling the warehousing through its subcontractor Maritime Ontario, with Purolator assisting in getting the supplies to the warehouse from airports. Canada Post and Purolator, through their distribution networks, are delivering the supplies across Canada

If pressed on the health and safety of workers:

• Our government believes that every Canadian has the right to a safe and healthy workplace
• We fully expect Amazon to follow the guidelines put forward by Canada’s public health organizations and protect their workers during this crisis
• We urge all employers during this critical time to go above and beyond standard health and safety measures to make sure that workers are safe in this extraordinary situation, and accommodate reasonable requests from employees

On April 1st, 2020, the Government of Canada signed a contract with Amazon to efficiently get health care professionals PPE. The agreement with Amazon is mostly to access its technology interface where the supplies will be catalogued, to allow provincial and territorial health authorities to order them directly through the Amazon business store.

The delivery of the PPE and supplies ordered and approved by PHAC will be done by Purolator for large shipments and by Canada Post for smaller shipments. The PPE and supplies are currently warehoused at the facility of Maritime Ontario in Brampton, where the technology of Amazon has been installed to treat the orders of provincial and territorial health authorities. Maritime Ontario is an on-going key sub-contractor of Canada Post.

Canada will pay Amazon its standard costs without profit until June 30th, 2020. Amazon fees after June 30, 2020 will be lower than Amazon’s standard commercial fees for the same services.

This agreement will support the distribution of vast quantities of masks, gloves and other equipment purchased by the government to front-line healthcare workers and others in need as quickly as possible.

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