Today, the Auditor General of Canada released her report on the Performance Audit of Professional Services Contracts, which included all professional services contracts awarded, and payments made by federal organizations to GC Strategies and other companies incorporated by its co-founders.
I welcome the findings of the Auditor General, and the Government of Canada remains committed to maintaining fairness, openness and transparency in federal procurement.
In March 2024, Public Services and Procurement Canada (PSPC) suspended the security status of GC Strategies Inc., which precluded it from participating in all federal procurements with security requirements. In addition, PSPC also suspended the company from all professional services contracts and contract vehicles administered by the department. Last week, GC Strategies was determined to be ineligible from entering into contracts or real property agreements with the Government of Canada for 7 years under the Ineligibility and Suspension Policy.
The results of this report are in line with previous internal and external audits and reviews relating to professional services contracts and other procurements. While the report did not make any new recommendations, the Government of Canada has taken significant actions on past recommendations and continues to take strong steps to improve oversight and management of federal procurement.
PSPC is transforming and modernizing how the department procures professional services by simplifying existing mandatory procurement tools, while addressing the audits and reviews completed between 2023 and 2025. This includes measures to mitigate procurement risks, improve contract management practices and encourage the use of business approaches that focus on comprehensive solutions to achieve best value from the private sector.
To date, the department has taken the following actions on previous recommendations from the Auditor General, including:
- improving evaluation requirements to ensure resources are appropriately qualified
- requiring increased transparency from suppliers around their pricing and use of subcontractors
- improving documentation when awarding contracts and issuing task authorizations
- clarifying work requirements and activities, and specifying which initiatives and projects are being worked on by contractors
Our new government remains committed to strengthening federal procurement practices. We also expect public servants and departments to operate with the highest standards of integrity when procuring professional services to support their program delivery.
