Evidence of meeting #112 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 cbsa.
A video is available from Parliament.
Vice-President, Comptrollership Branch, Canada Border Services Agency
It was written, to my understanding, on the first of June. I'm sorry that we don't seem to have the date on the letter.
Conservative
Vice-President, Comptrollership Branch, Canada Border Services Agency
It was June 1, 2020.
Conservative
Luc Berthold Conservative Mégantic—L'Érable, QC
Mr. Leahy, earlier on you seemed to want to answer questions. I'd like to ask you one.
I'll return to the passage that says, “We have identified a supplier that has already successfully implemented a modern tool...”. You told us that the supplier in question was Lixar.
Is that correct?
Director General, CARM Project Directorate, Canada Border Services Agency
Yes, I had a meeting with Mr. Utano's team and we attended a presentation by Lixar, which had worked for Transport Canada.
Conservative
Luc Berthold Conservative Mégantic—L'Érable, QC
Who arranged the meeting with the Lixar representatives?
Director General, CARM Project Directorate, Canada Border Services Agency
It was Mr. Utano's team.
Conservative
Luc Berthold Conservative Mégantic—L'Érable, QC
Do you know whether Lixar has any ties to GC Strategies?
Director General, CARM Project Directorate, Canada Border Services Agency
The names of the two companies were written together on the agenda.
Conservative
Director General, CARM Project Directorate, Canada Border Services Agency
Yes. That's all I know. On the agenda, the names of the two companies were written together.
Conservative
Luc Berthold Conservative Mégantic—L'Érable, QC
A while ago, I asked you to name the supplier. You told me it was Lixar, but it was actually Lixar and GC Strategies. I'd like an explanation. What you are about to say, Mr. Leahy, is important.
Why did you omit to tell me about GC Strategies just now?
Director General, CARM Project Directorate, Canada Border Services Agency
On the invitation I received in April, both companies were named on the agenda. It said “Lixar/GC Strategies”. The two names were written together.
Conservative
Luc Berthold Conservative Mégantic—L'Érable, QC
Mr. Moor, in the letter that you signed, we see an allusion to GC Strategies for the first time, although the company isn't named.
Were you aware that the supplier that you were recommending in that letter to the deputy minister of PSPC was a company composed of BDO Lixar and GC Strategies?
Vice-President, Comptrollership Branch, Canada Border Services Agency
I was not aware of that. The letter was provided to me by the individuals who were responsible for preparing it, and, as you said, it did not refer to the actual name. That's why I asked Mr. Leahy to answer, because he was aware of the names.
Conservative
Luc Berthold Conservative Mégantic—L'Érable, QC
Then that was how GC Strategies became involved in the ArriveCAN file.
Vice-President, Comptrollership Branch, Canada Border Services Agency
I would say for my comment that the reference was not to an individual company that I was aware of. Also, it was a reference to a company which was doing commercial goods rather than doing traveller goods with ArriveCAN—
Conservative
Luc Berthold Conservative Mégantic—L'Érable, QC
I know that French and English interpretation is a factor to take into consideration, but you are hesitating. You are avoiding saying the names of these two companies, which are not mentioned in the letter.
We now know, following Mr. Leahy's revelations, that this presentation was given by both companies, which work together without necessarily being connected by contracts or shareholders. This is the first time, then, in this letter, that any mention is made of allowing these companies to bypass the normal procurement process.
This is the first time that GC Strategies is involved in the file.
Is that correct?
Executive Director, Procurement, Canada Border Services Agency
I believe that GC Strategies was awarded sole-source contracts prior to the June 1 letter.
It's important to make a distinction between a justification for awarding a sole-source contract subject to rules and an exemption granted for national security reasons when international agreements exist.
Conservative
Luc Berthold Conservative Mégantic—L'Érable, QC
Privately awarded contracts were issued in the ArriveCAN case following that exemption letter.
Executive Director, Procurement, Canada Border Services Agency
No. Some privately awarded contracts were issued before the letter.
Executive Director, Procurement, Canada Border Services Agency
Some contracts were awarded after the letter.
Conservative
Luc Berthold Conservative Mégantic—L'Érable, QC
What percentage of contracts were awarded before and after the letter, Mr. Martel?
Executive Director, Procurement, Canada Border Services Agency
I can get back to you with the answer to that question, but generally speaking—