Federal managers spending billions on consultants must now sign an oath confirming they have considered the pros and cons of each professional services contract. This comes amidst Parliamentarian complaints of annual consultant spending reaching $25 billion, despite a growing public service payroll.

Treasury Board executive director Emilio Franco testified on May 18 that managers must now sign a pledge before outsourcing work. They must attest that consulting is the correct path and that diligent steps have ensured integrity and proper controls, Franco said.

Cabinet reneged on its 2023 promise to cut consulting spending. New controls were not implemented until earlier this month, according to Blacklock’s.

.@TBS_Canada orders that managers planning to spend billions on consultants must first sign an oath stating "they thought about" it. Spending was $25B last year. https://t.co/9TJ8cp5Y5u @PSPC_SPAC @DM_PSPC @shafqatalimp @JoelLightbound pic.twitter.com/P7CP2KK7oA

— Blacklock's Reporter (@mindingottawa) June 19, 2025

A June 10 audit revealed federal knowledge of procurement irregularities, possibly breaching the Financial Administration Act. Blacklisted supplier GC Strategies Inc. received over $92.7 million in IT contracts before RCMP raided its offices last year for suspected fraudulent billing.

Auditor General Karen Hogan questioned why IT services are typically procured through staffing companies like GC Strategies. She urged the government to investigate.

“At what point do you believe ministers are accountable for these funds?” asked Conservative MP Stephanie Kusie. “I think it’s ultimately up to this committee and other parliamentarians to hold ministers to account,” replied Auditor Hogan.

“And when we spoke to public servants, some at times were unaware of some of the requirements that existed in the procurement rules,” she told MPs. “I think the rules are clear, in my view.” 

Auditor General @OAG_bvg says she's puzzled by serial irregularities in fed contracting, can't figure why gov't execs keep breaking the rules: "We kept trying to figure out why."  https://t.co/nnT84pHpZ3 #cdnpoli @StephanieKusie @GerardDeltell pic.twitter.com/EY4eYWqhxX

— Blacklock's Reporter (@mindingottawa) June 20, 2025

The Department of Public Works has implemented a number of measures that should play a key role in “reducing the size of these contracts,” Franco clarified.

Procurement Ombudsman Alexander Jeglic testified November 26 that federal hiring of consultants and contractors was “near the bottom tier.” 

“The system has not improved during my tenure,” he said at the time, urging drastic changes. Jeglic's remarks came after reviews revealed favouritism in awarding contracts worth $200.4 million since 2015 to one consultant, McKinsey & Company.

“What transpired with McKinsey is a symptom of a broken system and my office has been identifying many of the same issues year after year, report after report,” he said.  “I am very confident in saying it’s time to replace the car.”