Decades-old problems are plaguing federal contracting system, watchdog says
The Liberal government is taking steps to address longstanding issues in federal contracting, with the procurement watchdog calling for significant changes to the system. The Office of Procurement Ombud Alexander Jeglic has released a report highlighting the need for a central body to oversee all government purchasing.
According to Jeglic, the current procurement system is plagued by complex processes and accountability gaps between departments. The report emphasizes the urgent need for a chief procurement officer (CPO) to streamline government purchases and simplify contracting procedures.
The proposed CPO would serve as a central authority to oversee all government procurement, ensuring clear accountability and responsibility. Similar central bodies exist in other jurisdictions, such as the U.K., and have proven effective in improving procurement processes.
Jeglic also recommends the creation of a vendor performance management system to track companies’ history with government contracts. Additionally, he calls for the development of universal federal procurement rules, increased use of artificial intelligence to streamline processes, and improved information sharing among government departments.
The push for reform comes in the wake of concerns raised by Auditor General Karen Hogan regarding contractor fraud and deficiencies in applying federal procurement rules. The government has taken steps to address these issues, including referring cases of suspected fraud to the RCMP and filing a civil lawsuit against contractors involved in questionable projects.
Prime Minister Mark Carney has pledged to increase defence procurement to meet NATO spending targets, with plans to allocate two per cent of GDP to defence by March. Defence Minister David McGuinty recently announced $850 million in infrastructure upgrades to CFB Trenton as part of this effort.
In light of increased defence spending, Jeglic suggests considering a separate CPO for defence procurement or consolidating military purchasing activities under one department. These changes aim to streamline processes, improve accountability, and ensure efficient use of taxpayer funds in government contracting.
Overall, the proposed reforms seek to address longstanding issues in federal procurement and create a more transparent, efficient, and accountable system for government purchases.
