Question Period Note: Auditor General Report on Professional Services contracts with GCStrategies

This audit sought to determine whether the contracts awarded and the payments made to GCStrategies and other companies incorporated by its cofounders aligned with applicable policy instruments and whether value for money for these contracts was obtained.

• The Government of Canada is committed to conducting procurements in an open, fair, and transparent manner
  • Public Services and Procurement Canada continues to transform its procurement processes to address the gaps identified in previous audits related to professional services contracting
  • Public Services and Procurement Canada is strengthening the procurement of professional services in Information Management / Information Technology (IM/IT) by improving data collection, increasing transparency in procurement decisions, clarifying roles and responsibilities, and reinforcing oversight and accountability in procurement activities
  • Public Services and Procurement Canada will support the Treasury Board of Canada Secretariat in ensuring that departments have the guidance and tools necessary to improve their procurement processes and the way the Government does business with suppliers, while ensuring best value for Canadian taxpayers

The scope of the audit included the 106 professional services contracts awarded by federal organizations to GCStrategies from April 2015 through to March 2024. The contracts were for services that included technology support, and had a maximum value of $92.7 million, of which $64.5 million was ultimately paid out. Of this amount, $30.9 million was for 4 contracts related to ArriveCAN. These 4 contracts were excluded from the detailed work carried out for this audit because they were the focus of a February 2024 ArriveCAN Auditor General report. The Office of the Auditor General (OAG) also confirmed that no PSPC contracts were included in the February 2024 audit.

As part of the audit in question, the OAG concluded that the professional services contracts and the payments made were not in accordance with applicable policy instruments, and that value for money was not obtained. The Auditor General of Canada did not issue recommendations in this audit report, rather it encouraged federal organizations to implement the recommendations from recent procurement audits and reviews.

PSPC has already taken actions to strengthen its procurement practices, including implementing recommendations from the AG's 2024 reports on Professional Services Contracts and ArriveCAN. This includes:

• Improved guidance to other Government departments
• Issuance of about 100 revised Master Level User Agreements, which strengthened the terms of use of PSPC’s mandatory Methods of Supply for the procurement of professional services
• Development of new tools, templates and checklists

• In March 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
  • On June 6, 2025, Public Services and Procurement Canada determined GCStrategies Inc. to be ineligible from entering into contracts or real property agreements with the Government of Canada for 7 years
  • The Auditor General determined the scope of this audit to be from April 2015 to March 2024, and included the review of a total of 106 professional services contracts