Feds seeking $1.6M from IT subcontractor for ‘unjust enrichment’

The Canadian federal government has taken legal action against an IT subcontractor and several companies that employed him, alleging questionable billing practices that resulted in unjust enrichment. The government is seeking $1.6 million from the Ottawa-based IT professional for allegedly billing the civil service for hours that were not actually worked.

According to court documents filed last Friday, the government claims that the contractor submitted timesheets with overlapping work hours, with some instances showing a cumulative total exceeding 24 hours in a single day. This raised concerns about the validity and reliability of all the timesheets submitted by the contractor.

The IT professional reportedly told Public Services and Procurement Canada (PSPC) during an internal investigation that he had been billing companies for standby time, where he made himself available to work but did not actually perform any tasks outlined in the contracts. However, the government’s claim states that the timesheets did not reflect standby time and instead made it appear as though the contractor was actively working on various projects.

The lawsuit also names seven companies that subcontracted work to the IT professional, seeking a total of $1.6 million from them for breach of contract and submitting inaccurate information to the government. The government alleges that these companies failed to have independent systems in place to verify the accuracy of the contractor’s timesheets.

One of the companies named in the lawsuit is GC Strategies, the main contractor involved in the ArriveCan app project. The government is seeking $198,000 from GC Strategies in this case. Last year, the auditor general’s report on ArriveCan highlighted concerns about the project’s procurement process and poor record-keeping, making it difficult to determine the final cost.

In response to the scrutiny on government procurement practices, the auditor general launched a full audit of all contracts awarded to GC Strategies at the request of a House of Commons committee. The company has denied any wrongdoing in its work with the federal government, despite ongoing investigations by the RCMP.

In a separate case, the RCMP charged a consultant with overbilling the government by approximately $250,000. These cases of suspected contractor fraud were referred to the RCMP by the government following the auditor general’s report on ArriveCan.

The legal action against the IT subcontractor and companies involved highlights the government’s commitment to ensuring transparency and accountability in its contracting practices. As the investigation unfolds, it remains to be seen how these allegations will impact future procurement processes and relationships with contractors.