Border Agency Chose Sole-Source Contracts for ArriveCan Against Procurement Department’s Recommendation

Border Agency Selects Single-Source Contracts for ArriveCan Despite Procurement Department’s Advice

March 8, 2024 TruthUSA

The Canadian Border Services Agency (CBSA) rejected recommendations from the procurement department to hold an open competition for contracts related to the troubled ArriveCan application, members of parliament learned during committee hearings.

The CBSA awarded millions of dollars in sole-sourced contracts to companies that did minimal work and subcontracted the tasks to others.

“Public Services and Procurement Canada (PSPC) had raised concerns about the CBSA’s decision to use non-competitive processes for awarding ArriveCan work,” Deputy Auditor General Andrew Hayes informed the House of Commons Standing Committee on Public Accounts on March 7. The committee is presently examining the auditor general’s report on ArriveCan released last month.

Hayes mentioned that PSPC suggested other contracting methods to the border agency, like using shorter non-competitive processes or competitive processes with quicker bidding periods. Despite the advice, the agency opted for a non-competitive approach.

The auditor general’s report revealed that modifications to the non-competitive contracts extended their timelines, resulting in additional costs amounting to an estimated $59.5 million. GC Strategies received close to $20 million, while Dalian and Coradix received $7.9 million.

All three companies have been suspended by PSPC from obtaining contracts, with GC Strategies also having their security status suspended. The companies have not responded to requests for comment from The Epoch Times.

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The ArriveCan application, that they were involved in, was initially used for border measures to electronically monitor public health requirements during COVID-19 quarantine restrictions, and eventually expanded to include travelers’ vaccination statuses. It is still operational but as an optional means for travelers to provide advanced customs declarations.

The auditor general’s report on ArriveCan from Feb. 12 indicates a “glaring disregard for basic management and contracting practices throughout the app’s development,” with several key records missing. The RCMP is currently investigating the issue.

On Feb. 21, the House of Commons voted to summon the owners of GC Strategies before the government operations committee to answer questions or face arrest by the Commons’ sergeant-at-arms. Although Kirstian Firth has testified before, he and Darren Anthony have ignored two summons to testify again, sent on Nov. 2, 2023, and Feb. 9, 2024.

PSPC’s Challenge Function

Arianne Reza, Deputy Minister of PSPC, informed the committee that while the agency suggested an alternative contracting process to CBSA, legal counsel later determined that “the justification provided by the CBSA for their approach was adequate and met the criteria for emergency use.”

“Regarding the lack of transparency in decision-making, we are committed to addressing root causes, enhancing document management practices, and continuing to roll out our electronic procurement solution,” she stated.

Dominic Laporte, Assistant Deputy Minister of PSPC’s Procurement Branch, explained that the agency’s role is to provide a “challenge function” in procurement. Despite having the authority to decline certain clients, the urgency of border solutions during the COVID-19 pandemic made this more challenging.

Mr. Laporte stated that PSPC officials would be more rigorous in challenging future projects, ensuring tasks are well-defined, linked to specific outcomes, and that security requirements are met.

The auditor general’s report recommended that PSPC and CBSA clarify tasks and deliverables in government contracts and associated task authorizations. Ms. Reza confirmed that the agency fully endorsed the recommendations and had already implemented actions to fortify their processes.

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