GC Strategies, the main contractor for ArriveCan, received a seven year ban on all government contracts Friday owing to past conduct. The IT firm, which administered none of the IT work itself, was awarded more than $19 million for the pandemic application.

Public Services and Procurement Canada deemed the supplier "ineligible" after evaluating their conduct, and had already excluded two other ArriveCan contributors, Dalian Enterprises and Coradix Technology Consulting.

Introduced in April 2020, the ArriveCan app was created by the federal government to track entrant health and contact data, and to digitize customs and immigration declarations during the COVID-19 pandemic.

Kristian Firth of GC Strategies, the ArriveScam contractor, won't say why he lied about meeting with government officials in bars and breweries outside of work. pic.twitter.com/y6AFxNA9jo

— Sheila Gunn Reid (@SheilaGunnReid) April 17, 2024

Auditor General Karen Hogan will release an audit on Tuesday examining the ArriveCan contracts and payments to GC Strategies and other companies, specifically addressing policy compliance and value for money, according to the Canadian Press.

A prior report revealed Canada's ArriveCan app cost $60 million due to poor record-keeping and reliance on external contractors. The initial ArriveCan contract was valued at $2.35 million.

Partner Kristian Firth was accused last year of using relations with public servants to secure lucrative ArriveCan contracts, alleging officials allowed excessive charges by not following proper procedures. “We were picked,” said the IT supplier. “We didn’t solicit,” he clarified, refuting claims of bribery.

The federal government, via Public Services and Procurement Canada, states it is actively working to enhance the integrity of its procurement procedures.

LIBERAL COVER UP: Steven MacKinnon, Liberal government house leader, tells the House of Commons that Kristian Firth is too mentally unwell to testify about his involvement in Arrivescam.

Then he blames the Conservatives for forcing Firth to testify - although it cuts out in the… pic.twitter.com/ehzzDH4IdT

— Sheila Gunn Reid (@SheilaGunnReid) April 17, 2024

Firth appeared before the House of Commons last spring after declining to answer committee questions during previous engagements.

After two hours of questioning, Firth's testimony was cut short due to a doctor's note citing mental-health concerns. Liberals refrained from questioning, prompting opposition pushback.

After the fact, conflicting testimonies from ArriveCan managers led to the discovery of thousands of "deleted" emails over sole-sourced contracts mainly to GC Strategies, which is now under RCMP investigation for fraud related to ArriveCan billing.

In 2022, GC Strategies admitted subcontracting IT work to multiple firms and adding commissions of up to 30%. “We were paid to recruit and find resources who built the app,” Firth said. “This was not our app.”

Firth was allegedly paid $2,600 an hour for ArriveCAN work, an amount exceeding the earnings of an average NHL player. “We invoiced monthly,” the consultant told MPs last April 17. “At any time we could have been stopped.” 

His workplace, a Woodlawn, Ontario bungalow, was raided the day prior by RCMP.

Seven cases of contracting fraud have been referred to the RCMP - three more just added to the four already under investigation, including the ArriveScam contractor GC Strategies.

The Trudeau government has been letting these companies fleece Canadians for years. pic.twitter.com/2jlaIzY8ky

— Sheila Gunn Reid (@SheilaGunnReid) November 7, 2024

A 2024 study revealed Canada's federal IT procurement rules violate global standards, leading to issues like the ArriveCan debacle and a lack of internal IT expertise. Lengthy, costly contracts favor major companies (IBM, Bell, Microsoft) and neglect open-source recruitment. 

IT spending surged under prime minister Justin Trudeau, especially on consultants, who significantly outnumber staff in many departments, with Public Services and Procurement Canada at 151%. 

Without reforms and empowered internal teams, further IT project failures are expected, and attracting skilled staff will remain difficult, the study revealed. Sudden cuts to consulting would also cause problems.

Public sector IT salaries are also far below private sector rates, it said.