Question Period Note: Tango Communications

Last spring the Government of Canada awarded a procurement-related contract to Tango Communications for KN95 respirators. Upon delivery, it was determined that a significant percentage of the 11 million masks did not meet the quality assurance test standards.

• Transparency is critically important to the Government of Canada, and we are committed to providing Canadians with information relating to Canada's response to the COVID-19 pandemic
  • The Government of Canada expects that suppliers meet their contractual obligations. As the company has been unable to do so, PSPC terminated the 3 KN95 respirator contracts with the company on May 3, 2021
  • It is Canada’s position that the vast majority of respirators tested do not meet the terms and conditions of the contracts, for example, regarding filtration efficiency. This constitutes a breach of contract terms with the company. Canada is thus proceeding to seek to recover advance payments made to Tango
  • Specifically, Canada has initiated legal action by filing a Statement of Claim to recover advance payments made, as well as damages for other costs incurred resulting from the alleged contractual breach
  • As litigation has commenced, we are unable to provide further comment at this time

If pressed on use of supplies:

• None of the KN95 respirators that failed PHAC standards were distributed for medical use

In March 2020, the company responded to the Government of Canada’s proactive call to action on Buyandsell.gc.ca, which asked suppliers to come forward with products or services they could offer to support Canada’s response to COVID-19, and to expand the federal government’s supplier network for these life-saving goods in the face of a surge in global demand.

Subsequently, on behalf of the Public Health Agency of Canada (PHAC), Public Services and Procurement Canada (PSPC) awarded the company three contracts totalling approximately $111 million for 37 million KN95 respirators, through emergency authorities within the department.

A significant percentage of the approximately 11 million KN95 respirators initially received in Canada from the supplier did not meet the requirements set out in the contracts.

As a result, in early May 2020, Canada took steps to suspend further shipments of KN95 respirators from the supplier. None of the KN95 respirators that failed testing were distributed for medical use.

Following the suspension of shipments, the Government began working with the company to seek a resolution. Despite these efforts, the supplier has been unable to consistently provide respirators that met the requirements of the contracts.

As the company has been unable to do so, PSPC has terminated the three KN95 respirator contracts with the company for default, effective Monday, May 3, 2021.

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