The Procurement Ombud released a report detailing the findings of his Procurement Practice Review (PPR) of "Bait and Switch" tactics in the replacement of resources in federal professional services contracts. The review uncovered results that were both good and bad, and highlighted the potential unintended consequences of recent policy changes.
When replacing resources whose personal experience and qualifications helped a supplier win the contract, policies and guidelines must be followed to ensure the fairness of the procurement process and that Canada obtains the best-value supplier. OPO reviewed these replacement of resources practices to determine whether they were conducted fairly and transparently.
The review revealed mixed outcomes. The Ombud found that in more than half of the files reviewed, the practice of replacing resources was done correctly and did not impact Canada's selection of the best-value supplier. However, in some cases, replacement resources did not meet or exceed the qualifications of the original resource proposed to secure the bid, calling into question Canada's selection of the winning supplier and the fairness of the procurement process. The Ombud also noted how policy changes made by PSPC effectively eliminate the use of 'Bait and Switch' tactics from being used, but may bring with them negative impacts to certain suppliers that departments should mitigate.
To address these concerns, the Ombud made 4 recommendations to strengthen the existing controls at Canada's disposal and to ensure that the replacement of resources in professional services contracts are done in a way that does not jeopardize the fairness of the procurement process or Canada's obtainment of the best-value supplier.
A follow-up review will be conducted in 2 years to assess whether federal organizations have implemented the Ombud's recommendations.
