Company that worked on ArriveCan app barred from government contracts for 7 years
The Canadian government has taken a significant step by banning the largest contractor involved in the ArriveCan app project from entering into contracts or real property agreements with the government for a period of seven years. Public Services and Procurement Canada recently announced that GC Strategies Inc. has been deemed “ineligible” due to an assessment of the supplier’s conduct.
GC Strategies Inc. was awarded over $19 million for its work on the ArriveCan app, which was launched in April 2020 to track health and contact information for individuals entering Canada during the COVID-19 pandemic. The app also aimed to digitize customs and immigration declarations. However, the Auditor General of Canada, Karen Hogan, found that the government’s record-keeping was poor and its reliance on outside contractors led to the project’s costs skyrocketing to $60 million. The initial contract for the ArriveCan app was valued at just $2.35 million.
In addition to GC Strategies Inc., two other companies involved in the ArriveCan project, Dalian Enterprises and Coradix Technology Consulting, have also been barred from participating in government procurement opportunities. The federal government’s decision to suspend GC Strategies Inc.’s security status last year was followed by a suspension from procurement processes within the department.
Karen Hogan is expected to deliver an audit focusing on the contracts awarded and payments made to GC Strategies Inc. and other companies involved in the project to assess if they were in accordance with applicable policies and provided good value for money. Public Services and Procurement Canada stated that the government is taking steps to strengthen the integrity of the procurement process.
GC Strategies Inc. partner Kristian Firth faced scrutiny from MPs last year and was ordered to appear before the House of Commons after refusing to answer questions at a committee hearing. Firth, who was grilled for two hours, did not develop or manage the ArriveCan app but was responsible for assembling a team to complete certain aspects of the project.
The Canadian Press has reached out to GC Strategies Inc. and Public Services and Procurement Canada for comments on the banning decision. As the government continues to address issues related to the ArriveCan project, it remains committed to upholding transparency and accountability in its procurement processes.