Canada’s procurement ombud advised changes to federal spending Monday, given planned increases and cost-saving measures by Ottawa.

"If I wanted to do my job effectively and leave procurement in a better place, I had to stand up and speak the truth, and the truth is the system needs to be overhauled," Procurement Ombud Alexander Jeglic told reporters Tuesday.

Jeglic’s new report, Time for Solutions: Top 5 Foundational Changes Needed in Federal Procurement, recommends transformative changes to Ottawa’s procurement management.

Federal managers, spending billions on consultants, were recently told to sign oaths confirming they weighed the pros and cons of each professional services contract.

The Ombud believes the procurement minister should be responsible, but accountability has been lacking for years. He recommends a high-level public servant to lead federal procurement reforms.

Jeglic acknowledges potential "eye rolls" due to added bureaucracy but insists it's crucial given current accountability gaps in federal contracting.

Go Ad Free

On Monday, Finance Minister François-Philippe Champagne urged colleagues to find major savings in their portfolios, coinciding with planned defence spending increases. 

In two letters sent Monday to cabinet ministers and secretaries of state, Champagne forecast program spending reductions of 7.5% for the 2026/27 fiscal year, by 10% the following year, and 15% in 2028/29.

When asked if cutting outsourcing would help, Jeglic maintained that a more efficient procurement oversight system could lead to savings. This comes at a time when parliamentary complaints have increased, with annual consultant spending reaching a staggering $25 billion.

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

Recent procurement controversies include the development of the ArriveCan app, contracted with GC Strategies, whose pandemic costs swelled to at least $60 million.

Jeglic uncovered federal criteria so restrictive that it was "highly improbable" any supplier other than GC Strategies could secure its contracts, totalling $25 million. The two-person firm, which subcontracted the app's development, was banned for seven years from federal contracts due to this questionable conduct.

He also exposed $200.4 million in contracts awarded to McKinsey & Company since 2015 due to favouritism.

Blacklisted supplier GC Strategies Inc., raided last year for suspected fraudulent billing, received over $92.7 million in IT contracts.

Auditor General Karen Hogan recently urged Ottawa to investigate why IT services are typically procured through staffing companies like GC Strategies. 

“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.” 

Departments unfairly screen out qualifying suppliers by creating restrictive criteria to block identified suppliers, Ombudsman Jeglic notes in his report.

He suggested a single set of procurement rules to simplify the process for suppliers and professionals, citing a Canadian supplier choosing foreign business due to easier procedures.

“That is a damning statement,” Jeglic said. “It’s important to understand that other jurisdictions are doing procurement better than we are. That needs immediate change, that needs foundational changes.”