Evidence of meeting #12 for Government Operations and Estimates in the 43rd Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was masks.

A recording is available from Parliament.

On the agenda

MPs speaking

Also speaking

Clerk of the Committee  Mr. Paul Cardegna
Bill Matthews  Deputy Minister, Department of Public Works and Government Services
Sally Thornton  Vice-President, Health Security Infrastructure Branch, Public Health Agency of Canada
Éric Dagenais  Vice-President, Public Health Agency of Canada
Arianne Reza  Assistant Deputy Minister, Procurement, Department of Public Works and Government Services
Raphaëlle Deraspe  Committee Researcher

11:45 a.m.

Conservative

The Chair Conservative Tom Lukiwski

Thank you, Mr. Green.

We will now go to our four-minute round of questioning starting with Mr. McCauley for four minutes.

May 15th, 2020 / 11:45 a.m.

Conservative

Kelly McCauley Conservative Edmonton West, AB

Thank you, Chair.

Mr. Matthews, we'll go over to you, please. Was the Medicom deal a sole-sourced contract, the one to make and purchase masks?

11:45 a.m.

Deputy Minister, Department of Public Works and Government Services

Bill Matthews

Yes, it was a sole-sourced contract.

11:45 a.m.

Conservative

Kelly McCauley Conservative Edmonton West, AB

Were there other companies involved that had bid on this contract?

11:45 a.m.

Deputy Minister, Department of Public Works and Government Services

Bill Matthews

Mr. Chair, because it was a sole source, it was not a bidding process. Medicom was one that was identified as being qualified at making masks.

11:45 a.m.

Conservative

Kelly McCauley Conservative Edmonton West, AB

Who identified them, please?

11:45 a.m.

Deputy Minister, Department of Public Works and Government Services

Bill Matthews

We would have worked with ISED to identify companies that might have the domestic capacity, and this is the approach on all domestic capacity to identify potential companies. They would be—

11:45 a.m.

Conservative

Kelly McCauley Conservative Edmonton West, AB

They don't have the domestic capacity—

11:45 a.m.

Conservative

The Chair Conservative Tom Lukiwski

Excuse me for interrupting. I'm really sorry, Mr. McCauley.

Mr. Matthews, could you please keep your microphone closer to your mouth so the interpreters have a better chance of translating?

11:45 a.m.

Deputy Minister, Department of Public Works and Government Services

Bill Matthews

Will do, Mr. Chair. Thank you.

11:45 a.m.

Conservative

Kelly McCauley Conservative Edmonton West, AB

Is 3M involved in licensing the products in any way, are you aware?

11:45 a.m.

Deputy Minister, Department of Public Works and Government Services

Bill Matthews

I'm not aware of their role in that, but my colleague Ms. Reza may have more to add on that front. I believe the deal is just straight through Medicom.

11:45 a.m.

Conservative

Kelly McCauley Conservative Edmonton West, AB

Maybe you can send us a note, Ms. Reza, so that we don't take any time.

I'm wondering if it's true that a North American-based company offered to make masks in Canada and do so by the end of May, and yet we refused or did not engage with them.

11:45 a.m.

Deputy Minister, Department of Public Works and Government Services

Bill Matthews

Mr. Chair, I'm not sure which company the member is referring to. I don't have knowledge of that one, but again the approach—

11:45 a.m.

Conservative

Kelly McCauley Conservative Edmonton West, AB

That's very strange.

Let's move on. I have another question, please. It was yes or no.

What is Deloitte's role, please, with PSPC on the purchasing? I've seen the mandate letter that they speak for PSPC on purchasing. Quickly, what is their role?

11:45 a.m.

Deputy Minister, Department of Public Works and Government Services

Bill Matthews

There are a few things they're helping us with. PSPC is accountable for the actual contracting. Deloitte has been used to help us with reporting, number one. They have also taken on a role in helping vet potential companies on the ground in China, but at the end of the day PSPC is responsible with our colleagues at PHAC to contract or not to contract.

11:45 a.m.

Conservative

Kelly McCauley Conservative Edmonton West, AB

I have a letter from PSPC. It says that Deloitte is therefore allowed to speak on behalf of PSPC about its interests in the procurement process.

I want to follow up with that. Are we still in the process of procuring more masks for Canada?

11:45 a.m.

Deputy Minister, Department of Public Works and Government Services

Bill Matthews

We are absolutely still in the process of procuring more masks.

11:45 a.m.

Conservative

Kelly McCauley Conservative Edmonton West, AB

I have a set of emails from Deloitte as recently as last week, saying that there is still a buying suspension for masks.

Why would Deloitte be telling potential suppliers of legitimate masks that there is a buying suspension while the government is procuring contaminated or substandard masks from Chinese suppliers?

11:45 a.m.

Deputy Minister, Department of Public Works and Government Services

Bill Matthews

Mr. Chair, I don't have the email in front of me, but I think what might be important to understand here is what kind of mask they are referring to. N95—

11:45 a.m.

Conservative

Kelly McCauley Conservative Edmonton West, AB

It's an N95 mask.

11:45 a.m.

Deputy Minister, Department of Public Works and Government Services

Bill Matthews

We are still actively purchasing N95 masks, but we do some vetting on the—

11:45 a.m.

Conservative

Kelly McCauley Conservative Edmonton West, AB

Why would Deloitte—which in its mandate letter from PSPC, says that it speaks on behalf of PSPC—be telling potential suppliers that there is still a buying suspension? I have this series of emails from Deloitte telling suppliers—and these are legitimate North American and European-based suppliers, not these shoddy ones, and not these ones you have commented on about difficulty from China...? Why would the government be telling these people that there is a buying suspension?

11:45 a.m.

Conservative

The Chair Conservative Tom Lukiwski

Mr. Matthews, unfortunately we're completely out of time but I would appreciate if you could give a complete answer to Mr. McCauley's question, in writing to our clerk, as quickly as possible. Thank you.

We will go on to Mr. Weiler for four minutes, please.

11:45 a.m.

Liberal

Patrick Weiler Liberal West Vancouver—Sunshine Coast—Sea to Sky Country, BC

Thank you, Mr. Chair.

I will be splitting my time with MP May.

I'd like to thank officials for joining our call today. I know the departments are working really hard in a very challenging situation and in a very competitive environment.

This question is for PHAC. Could you tell us how you are administering PPE, and how PHAC is working with the provinces and territories to get these supplies out the door and into local hospitals?