In a significant development tied to one of Canada’s most controversial pandemic-era projects, the federal government has officially barred GC Strategies—the consulting firm involved in developing the ArriveCan app—from bidding on federal contracts for the next seven years.
The decision follows a high-profile investigation into procurement practices surrounding the ArriveCan app, a digital tool launched to manage traveler health information during the COVID-19 pandemic. GC Strategies, which had received millions of dollars in federal contracts related to the app, is now at the center of a government crackdown on questionable contracting practices.
According to Public Services and Procurement Canada (PSPC), the company was added to the list of ineligible suppliers under the government’s Integrity Regime, a framework that prohibits companies involved in unethical or illegal activities from doing business with the federal government. The ban took effect after officials determined that GC Strategies violated procurement rules, although specific details regarding the violations have not yet been fully disclosed.
The ArriveCan app has faced intense scrutiny since its rollout, with critics pointing to cost overruns, questionable billing practices, and a lack of transparency in how contracts were awarded. Originally budgeted at under $100,000, the app’s development and maintenance eventually ballooned to over $54 million, raising red flags and prompting parliamentary inquiries.
GC Strategies was one of the most prominent beneficiaries of ArriveCan-related contracts, despite being a small consulting firm with few full-time employees. The firm primarily acted as an intermediary, subcontracting much of the work to other IT professionals, a model that many critics say undermines public sector accountability and inflates costs.
“This action demonstrates our commitment to ensuring transparency, fairness, and integrity in the use of public funds,” said a spokesperson from PSPC. “Canadians deserve to know that government contracts are awarded based on merit and value—not on backdoor deals or unethical practices.”
The ban means that GC Strategies will be disqualified from bidding on any new federal government contracts until 2032, significantly impacting its business operations. While the company has denied any wrongdoing, the reputational damage from this high-profile fallout may be long-lasting.
Government watchdogs and opposition leaders have welcomed the move, saying it’s a step toward rebuilding trust in public procurement. However, many are calling for broader reforms, including a full audit of the ArriveCan project and increased oversight of third-party contracting within federal departments.
The controversy has also reignited debates over the federal government’s reliance on external consultants and contractors, especially for technology projects. Critics argue that too much public money is being funneled into private hands without sufficient oversight or accountability.
As the government moves to distance itself from the scandal, further investigations and parliamentary hearings into the ArriveCan procurement process are expected to continue throughout the year.
Swifteradio.com
