Mr. Speaker, we agree that the observations contained in the report on the contract for professional services awarded to GC Strategies are unacceptable. I would like to thank the Auditor General of Canada and her team for their hard work.
Based on audits and verifications conducted between 2023 and 2025, Public Services and Procurement Canada is changing and modernizing how it awards contracts for professional services where required. The objective is to adopt measures aimed at reducing market risks, set goals and define the tasks needed to make an informed decision with regard to a tailored solution when we call on private companies and, lastly, improve management practices when it comes to contracts already under way.
We totally agree with the Auditor General of Canada when she says that we do not need more rules; rather, we need to make sure that our public servants properly apply the ones already in place. That is why the monitoring framework surrounding contracting practices has been enhanced.
We also need to make sure that we are working with suppliers with unimpeachable integrity. In 2024, the Auditor General of Canada made recommendations in the report on ArriveCAN. Since then, the government has done its homework. I am pleased to inform the House that seven out of the eight recommendations have been implemented: require more accurate financial records in order to correctly allocate expenses to projects; fully document interactions with suppliers and prohibit them from participating both in the drafting of the call for tenders and in the bidding process; require that all contracts and task authorizations comply with all applicable policies and guidelines; ensure that the required experience and qualifications are clearly defined from the outset; clarify requirements and work activities and ensure that deliverables are clearly defined.
Our new government is determined to provide a better framework for federal procurement practices. From now on, public servants will have to justify their needs and follow the strictest standards when they are seeking professional services to support the implementation of their programs.
The Auditor General of Canada made no new recommendations this year. In other words, she thinks we are doing our job.
I would also like to point out to members that the Government of Canada updated the ineligibility and suspension policy last year. To better respond to wrongdoing, the government recently created an office of supplier integrity and compliance, affirming its desire to do business only with companies that have the highest standards.
With respect to GC Strategies specifically, Public Services and Procurement Canada suspended the company's security status in March 2024. That would have already prevented the company from participating in all federal government contracts with security requirements.
We have done even more. GC Strategies has been suspended; it can no longer be awarded any contracts for professional services or other types of contracts by Public Services and Procurement Canada. What is more, last week, the office of supplier integrity and compliance declared GC Strategies ineligible for Government of Canada contracts for the next seven years, from June 6, 2025, to June 6, 2032. This is a severe sanction, reflecting the fact the the government is not taking this lightly and that it is acting decisively. I can also say that, even at the end of its suspension, the company is in no way assured of being able to bid on contracts issued by the Government of Canada.
Our friends across the aisle had an opportunity to adopt these measures, since the same individuals received contracts between 2010 and 2015, but they did nothing. It is the Liberal Party of Canada that is implementing these measures.
Moreover, as part of the procedures under way, the company could lose its ability to receive contracts from the Crown indefinitely if it is convicted by the courts of fraud against the Crown. In short GC Strategies will not get another penny of taxpayers money.
When it comes to reimbursement, we will first have to get a court order. If our attorneys can provide that there was indeed fraud or overbilling, we will not hesitate to demand exemplary damages.
As for ArriveCAN, specific allegations of misconduct have been filed, and the Canada Border Services Agency has launched an investigation that is still under way. As my hon. colleague from Edmonton West mentioned, the Royal Canadian Mounted Police was made aware of these allegations. However, the CBSA did not wait to complete its investigation before taking action. It has already taken measures to improve the management and control of its procurement processes.
It implemented a procurement improvement plan to enhance its practices and make sure that all of its purchases comply with the Government of Canada's procurement rules, support the CBSA's mandate and bring value to Canadians. The improvement plan includes several important elements. From now on, agency employees with financial authority at the national level will be required to follow four compulsory courses on procurement contracts. Employees are also required to disclose all of their interactions with prospective suppliers. In addition, the agency has established a centre of expertise to help employees fully understand their powers and their obligations. The agency now has a purchasing and contracting branch with the power to centralize all procurement activities. Thus, as part of the annual planning, budget and approval process, the agency now requires all divisions and regions to prepare detailed multi-year budget plans for their procurement and contracting activities. These plans will be meticulously studied and approved by the agency's governance committee. The agency also recently established a new recourse, standards and program integrity branch, which will control management activities and implement a culture of excellence when it comes to program and service delivery, including in areas related to procurement activities. The idea is to enhance procurement procedures at the agency and enable it to proceed with confidence and diligence in the awarding of future contracts.
Our government is intent on ensuring compliance with procurement procedures for goods and services. Offenders will be held appropriately accountable. The CBSA shares this conviction, and is in agreement with our actions. The agency's directors have already publicly indicated several times in committee and before the members of the House that they are taking the problem seriously and that they have implemented the necessary measures.
In addition to the agency's efforts to improve their procurement practices and enhance monitoring, Public Services and Procurement Canada is also taking steps to enhance every aspect of the federal procurement system. We assure the House that we will use the results of the latest Auditor General's report to further improve how the Government of Canada does business with its suppliers.
To carry out its mandate, the agency is always looking to innovate and improve its tools so that legitimate travellers, goods and services can circulate freely at our country's borders, while ensuring the safety and security of Canadians and respecting their rights and freedoms.
I will conclude my remarks on the subject by highlighting the work that Canada Border Services Agency employees do every day from coast to coast to coast. The agency has an important mandate, and its employees are well aware of it. Today more than ever, border security is a priority concern for Canadians, as it is for this government. This work is essential for protecting Canadians and contributing to our country's prosperity.
I think that all this illustrates the government's commitment to establishing and improving sound practices when it comes to contracts and learning. Our new government believes that all of the negligence and excess associated with GC Strategies and other suppliers are unacceptable. In the last Parliament, MPs and the Auditor General worked extensively to ensure that the contracts awarded to suppliers by the government are scrutinized, and that they continue to be scrutinized in the future. The government will demand accountability for any wrongdoing. It now has the means of doing so effectively, while ensuring that its public servants exercise the appropriate control measures. Canadians have the right to know that their hard-earned money is well managed. Given the new guarantees and rigorous measures implemented to hold GC Strategies accountable and to prevent any further violations on the part of other suppliers, we can now look to the future and focus on the work ahead.