The Auditor General of Canada has released a scathing report on the ArriveCAN project, highlighting significant mismanagement and lack of transparency in the contracting, development, and implementation of the application. The report reveals that the Canada Border Services Agency (CBSA), Public Health Agency of Canada, and Public Services and Procurement Canada failed to follow good management practices, resulting in a significant waste of taxpayer dollars.
Key Findings
– The CBSA’s documentation, financial records, and controls were so poor that the precise cost of the ArriveCAN application couldn’t be determined. However, estimates suggest that around $59.5 million was spent on the project.
– The agency’s disregard for policies, controls, and transparency in the contracting process restricted opportunities for competition and undermined value for money.
– GC Strategies was awarded the initial contract non-competitively, and later developed requirements for the request for proposal, raising concerns about favoritism.
– Essential information, such as clear deliverables and required qualifications, was often missing from contracts, making it difficult to determine the value of the work performed.
Project Management Concerns
– The CBSA released 177 versions of ArriveCAN with inadequate testing documentation, which led to errors, including a June 2022 update that incorrectly instructed around 10,000 travelers to quarantine.
– The agency’s reliance on external resources increased the cost of the application, with the average per diem cost for external resources estimated at $1,090, compared to $675 for equivalent IT positions in the Government of Canada.
– There was no formal agreement between the Public Health Agency of Canada and the CBSA from April 2020 to July 2021, which led to a lack of clear roles and responsibilities.
Recommendations
– The CBSA should maintain accurate financial records by correctly allocating expenses to projects and work with contractors to obtain invoices that accurately detail the work completed.
– The agency should fully document interactions with potential contractors and the reasons for decisions made during non-competitive procurement processes.
– The CBSA should ensure that potential bidders are not involved in developing or preparing any part of a request for proposal.
Implications
The report’s findings have significant implications for the management of government projects and the use of taxpayer dollars. The lack of transparency and accountability in the contracting process undermines trust in government institutions and highlights the need for improved project management practices.
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