Public Services and Procurement Canada has recently announced the prohibition of GC Strategies Inc., the primary contractor involved in the development of the ArriveCan app, from engaging in government contracts or property agreements for a period of seven years. This action follows an evaluation of the supplier’s behavior, which led to the company being classified as “ineligible.” Last year, GC Strategies had its security status suspended by the department, despite having received over $19 million for the project, as highlighted by the auditor general.
Additionally, two other contributors to the ArriveCan initiative, Dalian Enterprises and Coradix Technology Consulting, have also been restricted from participating in procurement opportunities due to their involvement in the project. The app was introduced by the federal government in April 2020 to monitor health and contact details of individuals entering Canada amidst the COVID-19 pandemic, and to streamline customs and immigration procedures.
A report by Canada’s Auditor General Karen Hogan exposed inadequate record-keeping practices within the government and revealed that reliance on external contractors caused the project’s costs to skyrocket to $60 million, significantly exceeding the initial contract value of $2.35 million. Hogan is scheduled to present an audit report on the contracts and payments made to GC Strategies and other companies to assess compliance with policies and value for money.
Public Services and Procurement Canada emphasized ongoing efforts to enhance the integrity of the procurement process. The Canadian Press has sought comments from GC Strategies and Public Services and Procurement Canada regarding the matter. Notably, GC Strategies partner Kristian Firth faced scrutiny from MPs and was compelled to appear before the House of Commons due to his reluctance to respond to inquiries during a committee hearing. Despite not directly developing or managing the ArriveCan app, GC Strategies was responsible for assembling a team to execute certain aspects of the project.
