OTTAWA – The Government of Canada has officially banned GC Strategies Inc., the largest contractor involved in the development of the ArriveCan app, from entering into contracts or real property agreements with the federal government for a period of seven years. This decision was made by Public Services and Procurement Canada after a comprehensive assessment of the supplier's conduct.
GC Strategies was previously suspended, with its security status revoked last year. According to a report published by Canada's Auditor General, the company had been awarded over $19 million for its work on the app. The federal government had earlier taken steps to suspend the contractor from any procurement processes within the department. Alongside GC Strategies, two other firms, Dalian Enterprises and Coradix Technology Consulting, were also barred from participating in procurement opportunities related to the ArriveCan project.
The ArriveCan app was launched in April 2020 as part of the federal government's efforts to manage health and contact information for individuals entering Canada during the COVID-19 pandemic. The app was designed to digitize customs and immigration declarations, facilitating a more efficient entry process. However, a report by Auditor General Karen Hogan revealed significant deficiencies in the government's record-keeping and the management of external contractors, which led to the project's costs skyrocketing to $60 million. Initially, the first contract for ArriveCan was valued at only $2.35 million.
On Tuesday, Auditor General Hogan is expected to deliver a report focusing specifically on the contracts awarded and payments made to GC Strategies and other associated companies. The audit aims to assess whether these contracts adhered to applicable policy guidelines and whether they represented good value for taxpayer money.
In a statement, Public Services and Procurement Canada confirmed its commitment to strengthening the integrity of the procurement process within the federal government. The Canadian Press has reached out to both GC Strategies and Public Services and Procurement Canada for further comments regarding these developments.
Additionally, Kristian Firth, a partner at GC Strategies, faced scrutiny from Members of Parliament (MPs) last year for his refusal to answer questions during a committee hearing. He was summoned to appear before the House of Commons but was subjected to an extended questioning session lasting two hours. Notably, representatives from the Liberal party opted out of addressing him after he provided a doctor's note citing mental health concerns that recommended he not participate in the hearing.
While GC Strategies did not directly develop or manage the ArriveCan app, it was tasked by the federal government to assemble a team that would complete specific elements of the project. This multifaceted investigation into the procurement practices surrounding the app continues to raise questions about the accountability and transparency of government contracting processes in Canada.
