Yes. Thank you, Mr. Chair.
Let me introduce to you, Mr. Chair, and to the committee members Scott Leslie, who is the senior director who has worked very closely with the centre and continues to work very closely on this file with the RCMP.
In my opening remarks, Mr. Chair, I want to thank the committee and you for providing me with this opportunity to discuss federal contracting services in relation to chapter 4 of the Auditor General's May 2006 report.
To deliver the best value procurement services, Public Works and Government Services Canada works as a strategic partner with our customer departments. We help them throughout the procurement process from defining requirements and procurement approaches; managing the bidding process; and supporting them in ensuring accountability throughout the contract.
The Department of Public Works and Government Services has supported the Canada Firearms Centre since its inception through the provision of contracting services, including those related to IT.
The department has issued two principal contracts, both competitively tendered and awarded, to support the Canadian firearms information systems, referred to as CFIS I and CFIS II. These contracts are highlighted in chapter 4 of the Auditor General's report.
Managing these two CFIS contracts in an uncertain operating and legislative environment has proven to be a significant challenge. Numerous changes to both contracts have been required over the years to accommodate these evolving realities. We do acknowledge, however, that lessons learned from our experience with CFIS I could have been better applied to the CFIS II procurement, which has proven to be a particular challenge. Many of the assumptions upon which it was based had to be adjusted, as the environment, particularly the Firearms Act legislation, has changed.
With the assistance of third-party analysis, Public Works and Government Services Canada, the RCMP Canada Firearms Centre, and the CFIS II contractor have agreed to halt work to ensure that no further expenses are being incurred while we assess the situation.
The Auditor General cited cases dating from 1997 to 2004 in which the firearms centre retained a number of contractors for several years using PWGSC's informatics professional services database, a tool that allows federal departments to search for consultants based on skills and experience to justify a non-competitive procurement process. The Auditor General reports that in many cases, the searches of the IPS database would yield only the name of an incumbent contractor. PWGSC concurs that these contracts should not be justified as competitive, and we note that the firearms centre ceased this practice in 2004.
The Auditor General recommends that Public Works and Government Services review how client departments use its contracting tools and be better able to provide assurance that the tools are not being used to circumvent contracting policies and procedures. We take the Auditor General's recommendation very seriously and have taken corrective measures to address the issues highlighted in the chapter. Such measures include the training of users on accountabilities, policies, processes, increased monitoring and reporting of usage, and, where appropriate, restricting use of these tools. As of December last year, PWGSC has improved, rebranded, and expanded the professional services online database to allow better monitoring of departmental usage.
In conclusion, we recommend that we must continue to find ways to further improve our services to federal departments while continuing to exercise a vigorous check and balance role in the interest of Canadians. PWGSC is in the midst of transforming the way it does business, and we're seeking innovative ways to deliver services smarter, faster, and at reduced cost to Canadians. We are committed to fair, open, and transparent competitive procurement practices to meet government needs while ensuring equal access to businesses that will withstand the test of public scrutiny.
Thank you. I'd be pleased to answer your questions, Mr. Chair.