Government Operations committee  When the contracts or task authorizations are let, it is actually the responsibility of the department—the technical authority, CBSA—to verify that the resources put forward have the credentials required to carry out the work. In terms of reviewing the résumés and the qualifications of the subcontractors and their resources, that work would have been conducted by CBSA.

Government Operations committee  Again, we're talking about the division of responsibility with respect to contracts. It is the responsibility of the contracting department, the CBSA, to verify the receipt of deliverables and make the payments based on the receipt and the acceptance of the deliverables under those contracts.

Government Operations committee  I don't know if it's typical to have multiple layers of recruitment companies, but in very complex IT projects, it is typical that there will be a number of subcontractors. Many of those subcontractors will actually be individuals, and those individuals will be incorporated individually.

Government Operations committee  Mr. Chair, thank you for the questions. We do about 10,000 contractual measures a year, and many of those contracts involve subcontracts. Unfortunately, it is common in certain cases that there will be disputes between prime contractors and subcontractors about payment. This is probably the reason that our department has been very active in spearheading efforts for prompt payment requirements, so that we can ensure that prime contractors pay their subcontractors in a timely fashion after the Government of Canada has paid out claims.

Government Operations committee  I'm not sure I can answer what's necessarily different.

Government Operations committee  I would argue, Mr. Chair, that this has come through because of the allegation that there was misappropriate use of subcontractors' résumés and credentials in terms of obtaining the work. However, from a contracting perspective, in our understanding this was a task authorization that was issued to a company that had a task-based contract.

Government Operations committee  Perhaps I will turn to Angela or someone else to explain what we normally do when a dispute comes in.

Government Operations committee  I will wrap up very quickly. I would just like to conclude by noting that IT contracting is a very important area also for the support of small businesses in Canada, indigenous businesses in particular. At this committee, you heard from Dalian, which is an indigenous business. Under the procurement strategy for indigenous businesses, federal departments and agencies can set aside contracts when there is known capacity among indigenous businesses.

Government Operations committee  Good afternoon, Mr. Chair and committee members. Thank you for the opportunity to appear before you today to describe Public Services and Procurement Canada's role in supporting the Canada Border Services Agency on the ArriveCAN work. I am joined today by three members of my team working under our professional services procurement directorate: Ms.

Public Accounts committee  Thank you, Mr. Chair. In terms of procurement best practices, some of them were mentioned in the report, in terms of looking at the integrity of companies and doing financial checks, but also what is important for us is to focus on determining your requirements and your needs.

Government Operations committee  Mr. Chair, yes, the contract would have the security requirements. We have a contract security program. GC Strategies would be required to ensure that any resources they were using met those requirements. They would bring forward the information on those individuals and they would be vetted through the contract security program of the Government of Canada.

Government Operations committee  That is correct.

Government Operations committee  Thank you, Mr. Chair. With respect to sole-source contracts, there is a requirement for the department wanting the contract to provide a justification. There are a number of reasons for justification in terms of national security or an urgent emergency issue. In this case, as we were dealing with COVID in a pandemic situation, we were trying to move and act on the most urgent basis possible, so we would have had a justification for moving quickly in terms of meeting the needs of the government to respond to COVID.

Government Operations committee  Not that I'm aware of. As we mentioned, we have contracts with the firms. What GC Strategies would have in terms of compensation and those mechanisms would be within their own agreements.

Government Operations committee  Mr. Chair, I'll turn to my colleague, Ron Cormier, to talk about the security checks we do on the employees who work for these firms.