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Friday, August 24, 2012

Canada procurement Ombudsman issues report card

Government-appointed watchdog highlights major problems with federal procurement
A federal watchdog’s new report highlights a series of problems in how Ottawa procures some of its $20 billion in annual goods and services, including complaints about sole-sourced contracts, government ignoring its own rules, and departments doing business with firms known for producing “inferior” work.

The ombudsman’s office is responsible for reviewing complaints on the awarding of federal contracts for goods below $25,000 and for services less than $100,000 (which amounts to 90 per cent of all federal contracts). However, the office can review any complaint on the administration of a federal contract for goods and services, regardless of dollar value, as well as examine the purchasing practices of federal departments and agencies to assess fairness, openness and transparency.

The document highlights two “unexpected areas of concern” with federal procurement, including vendor performance and “the disparate nature” of procurement documents. But it also identifies problems with lack of training among procurement officials, questionable sole-sourcing of contracts among more than 100 federal departments and agencies, and concerns that government favours certain suppliers with its purchasing.

Six years after an optional certification program was introduced, only 26 of the approximately 3,200 procurement specialists working in the federal government have been certified at the program’s first of three levels, and none have been completely certified.

Some small and medium-sized businesses complained the patchwork system of procurement rules throughout the federal government is a barrier to doing business, the report says, while government officials highlighted the inefficiencies of preparing different procurement documents for similar services.

“This fragmented approach within the federal government is allowing suppliers identified as underperforming by one department to successfully bid and be awarded contracts from other departments,” the report says.

NDP deputy finance critic Guy Caron said the report highlights a troubling trend in government sole-sourcing contracts, when more competition should be promoted to ensure government receives good value for the goods and services it purchases. “The fact that we have to have competition means that we should rely less and less on those advance contracts, and we do more and more, which to me signifies a problem,” Caron said.

“What this underlies is the need for more transparency and the need to actually lower the costs of those various goods and services towards competition. I really don’t understand why government is actually going toward more of those (ACAN) contracts.”

Similar:
Major flaws in Ottawa's contract bidding process

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