Evidence of meeting #108 for Government Operations and Estimates in the 44th Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was contract.

A video is available from Parliament.

On the agenda

MPs speaking

Also speaking

Clerk of the Committee  Mr. Thomas Bigelow
Kristian Firth  Partner, GC Strategies

2:20 p.m.

Conservative

The Chair Conservative Kelly McCauley

Thanks.

We'll finish up with you, Mr. Bains.

2:20 p.m.

Liberal

Parm Bains Liberal Steveston—Richmond East, BC

Thank you, Mr. Chair.

Mr. Firth, you said GC Strategies stands for Government of Canada Strategies. Don't you think that's misleading?

2:20 p.m.

Partner, GC Strategies

Kristian Firth

Not really. We didn't think so in 2015.

2:20 p.m.

Liberal

Parm Bains Liberal Steveston—Richmond East, BC

You said that you've worked here since 2007. You're not an employee of the government. Does that not give the sense that you solely do work for the Government of Canada? You talked about doing private work as well.

2:20 p.m.

Partner, GC Strategies

Kristian Firth

Not really. I mean, we used the acronym GC. We didn't spell out Government of Canada Strategies. It could be open to interpretation. I don't think so.

2:20 p.m.

Liberal

Parm Bains Liberal Steveston—Richmond East, BC

To me, it's misleading. My issue here is that since you've been working here with government offices and public officials in the different departments, since 2007, it appears they've gotten comfortable with you doing the work. You claim you've done great work. That's why you're navigating the processes.

Don't you think that by continuing, as the member before called it, the loop of attaining these contracts over and over, that's an unfair advantage to those who have long-standing experience with government contracts? Others are at a disadvantage because you may be more familiar and comfortable with these officials, who have also been working there for decades. What do you have to say about that?

2:20 p.m.

Partner, GC Strategies

Kristian Firth

I'm sorry. I don't understand the question.

2:20 p.m.

Liberal

Parm Bains Liberal Steveston—Richmond East, BC

I just don't like the fact that we have people—

2:20 p.m.

Partner, GC Strategies

Kristian Firth

I don't make the decision, do I? I don't make the decision. The government sees value.

2:20 p.m.

Liberal

Parm Bains Liberal Steveston—Richmond East, BC

I don't like the fact that people are getting comfortable receiving these contracts. Then we may have officials who are comfortable with people they may have built relationships with and who keep getting these contracts. Do you believe that's something that's happening here?

2:20 p.m.

Partner, GC Strategies

Kristian Firth

I think that....

2:20 p.m.

Liberal

Parm Bains Liberal Steveston—Richmond East, BC

This is since 2007. We're talking from 2007, and now it's 2024. You're still around.

2:20 p.m.

Partner, GC Strategies

Kristian Firth

Not anymore.

2:20 p.m.

Liberal

Parm Bains Liberal Steveston—Richmond East, BC

Maybe that's a good decision.

2:20 p.m.

Partner, GC Strategies

Kristian Firth

Again, the decisions are made by the government. It obviously sees value in what I do. I've had 65 contracts since 2015.

I believe that if you do a good job, then that becomes recognized. That can become a referral. It can be a feather in your cap. When you go to propose a solution the next time, these are jobs well done. I think it's just sales.

2:20 p.m.

Liberal

Parm Bains Liberal Steveston—Richmond East, BC

I want to go back to earlier, when you said something about the vendors not being screened. You said you had 35 people you subcontracted out to, but that they were not required to be screened. Is that accurate?

2:20 p.m.

Partner, GC Strategies

Kristian Firth

No, I said that they actually, specific to ArriveCAN, had two lines of security. There was PSPC security and then CBSA security.

2:20 p.m.

Liberal

Parm Bains Liberal Steveston—Richmond East, BC

They can't speak directly to them. Is that what it is?

2:20 p.m.

Partner, GC Strategies

Kristian Firth

No, they can speak directly to them. They cannot give a contract directly to them. They're not qualified vendors.

2:25 p.m.

Liberal

Parm Bains Liberal Steveston—Richmond East, BC

I want to just get some clarity on earlier questions regarding the pay being determined. These 35 subcontractors can't say, “This is my price.” They have to fall within a certain....

2:25 p.m.

Partner, GC Strategies

Kristian Firth

They can, 100%.

You have the price of the Crown. Whatever price they actually ask for is typically what we give them. That can be anything from zero to the ceiling price. That's where the negotiations happen, which is how the margin is determined. There's no cut-off, saying, “You must get paid this.” They get what they ask for. If they want $1,000, $1,100 or $1,200 and their bill rate is full.... This is why the industry standards vary between 15% and 30%.

2:25 p.m.

Liberal

Parm Bains Liberal Steveston—Richmond East, BC

Okay, Mr. Chair, those are all the questions I have. I want to say that I'm looking forward to reviewing these processes. I'm looking forward to seeing the commissioner of the Competition Bureau come before us to see where we need to do things better, considering this has been going on since 2007.

That's all I have for today.

2:25 p.m.

Conservative

The Chair Conservative Kelly McCauley

Thank you, Mr. Bains.

I thank everyone for sticking with us a bit past time.

Yes, I'll get to you, Mr. Genuis.

Mr. Firth, thanks as well.

Quickly, before you leave, Mr. Firth....

Mr. Genuis, sir.

2:25 p.m.

Conservative

Garnett Genuis Conservative Sherwood Park—Fort Saskatchewan, AB

Thank you, Chair.

I think you can dismiss the witness, but having heard the totality of his testimony, I think it's important to raise a question of privilege regarding his non-responses.

Thank you.

2:25 p.m.

Conservative

The Chair Conservative Kelly McCauley

Mr. Firth, we're going to dismiss you right now.

Thank you for your time.