Question Period Note: Public Services and Procurement Canada contracts with GCStrategies

On October 21, 2024, the Auditor General wrote to the Speaker of the House of Commons to inform the House that her office will conduct a performance audit on all payments and government contracts awarded to GCStrategies.

• Public Services and Procurement Canada is committed to open, fair and transparent procurement processes, while obtaining the best possible value for Canadian taxpayers
  • The Department is prepared to cooperate with and support the Office of the Auditor General in its audit of all payments and contracts to GCStrategies, and other companies incorporated by its cofounders
  • We are focused on strengthening all aspects of contract management as part of the federal procurement process, which includes ensuring that all procurement files are well managed and documented

If pressed on how GCStrategies was qualified under Task-Based Informatics Professional Services:

• GC Strategies provided a submission in response to the Request for Supply Arrangement posted on Canada’s electronic tendering system. The submission was evaluated against the criteria in the Request for Supply Arrangement and was deemed compliant

If pressed on subcontracting:

• Within the Information Technology industry, it is common for firms to subcontract or collaborate with other suppliers or individuals to address particular Information Technology challenges and solutions
• Canada does not have a contractual relationship with any subcontractors. The prime contractor is responsible for the performance and the contractual obligations of subcontractors

Public Services and Procurement Canada has awarded 7 contracts to GC Strategies for a total of $59,904,530. Public Services and Procurement Canada has awarded 6 contracts as a common service provider and 1 contract as a department.

• 4 contracts for Canada Border Services Agency for a total value of $56,362,699
  • 3 non-competitive contracts and 1 competitive contract for various IT services
• 1 contract for the Department of National Defence for a total value of $2,148,651
  • Competitive contract for Information Technology services
• 1 contract for the Treasury Board Secretariat for a total value of $1,368, 203
  • Non-competitive contract for Information Technology services
• 1 contract for Public Services and Procurement Canada under Public Services and Procurement Canada’s own delegation for $24,977
  • Non-competitive contract for Information Technology services

The Auditor General is in the process of gathering information and determining the scope of the audit. She has noted in her letter to the House Speaker that she will keep the House of Commons informed on the timing of the audit once the scope has been determined.

Within the broader federal procurement environment, Public Services and Procurement Canada undertook an in-depth review of the security verifications of the existing contracts with the supplier, and took appropriate action following the results of its assessment, cancelling the five ongoing supply arrangements with the company on February 14, 2024, as they no longer met the requirements of these methods of supply, and terminating its remaining contract with the supplier on March 15, 2024.

• Since January 1, 2011, Public Services and Procurement Canada has awarded 7 contracts to GCStrategies for a total value of $59.9 million
  • Between January 1, 2011 to February 16, 2024, the Government of Canada as a whole awarded 120 contracts to GCStrategies and its predecessor Coredal for a total value of $107.8 million
  • On March 15, 2024, Public Services and Procurement Canada terminated all contracts and supply arrangements awarded to GCStrategies, and suspended its security clearances, rendering GCStrategies ineligible to participate in Public Services and Procurement Canada and Government of Canada tenders