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Decentralized Democracy

House Hansard - 122

44th Parl. 1st Sess.
November 1, 2022 10:00AM
Context: House Hansard - 122 - Nov/1/22
Mr. Taylor Bachrach (Skeena—Bulkley Valley, NDP)
  • Nov/1/22 11:27:17 a.m.
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Madam Speaker, it is a pleasure to rise this morning to speak to the opposition motion before us. I think everyone in the House would agree that one of the most important responsibilities of the government, which some would say is a sacred responsibility, is stewarding public funds and ensuring that every single dollar is spent in the best interests of Canadians, that the government gets maximum value and that public contracts do not excessively line the pockets of private companies. That is why the motion calling for the Auditor General to conduct an audit of all aspects of the ArriveCAN app is so important and why Canadians should rightly be concerned. There are a lot of different aspects we could talk about. We could talk about the fact that this app erroneously sent over 10,000 Canadians into quarantine and put them in jeopardy of $750,000 fines, or we could talk about the delays ArriveCAN caused at the border, something that was of great concern both to travellers and border officials. It made people struggle, especially people who did not have access to the technology. However, the focus of today's motion, and appropriately so, is on the decisions the government made around procurement to spend millions of dollars on private IT companies to develop and maintain this app. The biggest concern is the lack of transparency around the cost of development and maintenance, and there are a number of things we know. First of all, we know the original estimate for developing the app was $80,000, and we know that somehow development and maintenance ballooned to $54 million. We also know the government paid an IT staffing firm here in Ottawa nine million of those dollars. This is a firm that has no office, has only a handful of staff and did not actually do the work, but rather assembled a team of contractors and took a 15% to 30% commission. They were making millions of dollars off this. Finally, we know that when CBSA was asked to produce a list of all the contractors involved in the development and maintenance of the ArriveCAN app, there were a bunch of errors in that list. The original list included companies that had nothing to do with the ArriveCAN app, and when they saw their names on the list, they had some pretty serious questions for the government. A company called ThinkOn Incorporated and Ernst & Young were among the companies that had nothing to do with it and were quite confused by the fact they were being implicated. I appreciate that CBSA has promised to provide a full list and get to the bottom of these irregularities, but there are enough questions here that this motion to have the Auditor General conduct a full audit is very much warranted. I also want to talk a bit about the broader questions this issue has brought up. There is a real question here about whether the government's overall approach to outsourcing is delivering good value for Canadians or whether it is simply lining the pockets of companies that have figured out how to maximize their returns from the system of government procurement. We have heard concerns expressed by some of the public sector unions. They have shared with us that they believe IT companies are intentionally underbidding on government contracts. When they underbid on government contracts, it makes it very difficult for the government to assess whether it is in fact better value to outsource the contract to the private sector or whether better value is had by keeping that work in house with the government's own team of IT professionals. What happens after these companies underbid on the contracts is that the contracts start and they are able to have the contracts reopened. While I am pausing, I note that I will be sharing my time with the wonderful member for Courtenay—Alberni, something I have been reminded of by my colleagues several times yet somehow have forgotten. The reopening of these contracts then allows the government, on a discretionary basis, to jack up the value of those contracts again and again so that the total value at the end, when everything is said and done and all the dollars are added up, is many times higher than the original estimate for the work. This is something we need to get to the bottom of, and I think that is an opportunity the motion presents. Here is the trend when it comes to government outsourcing. The Globe and Mail reported in January that the government outsourced $11.8 billion of work in the 2020-21 fiscal year. That is up 42% from 2015-16. It is a pretty alarming increase. In 2020-21, the federal government spent $2.3 billion on IT contracts, compared with only $1.9 billion on its own government IT workforce. One public sector union has filed 2,500 grievances related to outsourcing. There is something wrong with this picture. We need to ensure this decision, which some people call the “make or buy” decision, is informed by the best information and that it is always done with the public's best interests in mind. Getting good value for taxpayers' dollars for the public resources that our government is charged with stewarding is the primary and only concern of that process. I want to mention that, thankfully, the government operations committee is working on this larger topic right now, and I want to point out the good work of my colleague, the member for Courtenay—Alberni. It is looking at this broader question of whether the Treasury Board's guidelines, which are supposed to inform this make or buy decision, are doing a good enough job, are doing what they are tasked with doing and are ensuring that the public interest is protected. Finally, I want to turn to one of the things I heard in the House yesterday, which I think is one of the unfortunate aspects of this debate over the ArriveCAN app. There is a common trope around IT work that I believe is neither accurate nor particularly helpful. Yesterday, we heard a Conservative member rise in the House and claim that ArriveCAN “could have been created by a bunch of pimply faced teenage hackers over a weekend using a Commodore 64.” I hear my colleagues laughing. I agree that the quote is humorous, but it is an unhelpful stereotype and I will tell colleagues why. I used to work in IT as a website developer, and I came across the stereotype that we should not pay good money for IT work and for tech products. After all, these are things that our brother's cousin's nephew can do at home for fun. These are sophisticated technology products that are being developed, and IT workers in our country are among the most creative, the most sophisticated, the most sought-after and the most valuable assets we have. When we allow these tropes and stereotypes about IT work to persist, I think we really do them an injustice and potentially risk the future of the new economy that is so important in our country. In conclusion, Canadians deserve to know that their taxpayer dollars are being managed responsibly. The irregularities around the ArriveCAN app raise serious questions and we need to get to the bottom of them. There is a larger question of whether the government's approach to outsourcing delivers value or whether it simply enriches its private sector friends. I hope through this debate and through the investigations and audits that follow we can get answers to those questions.
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Context: House Hansard - 122 - Nov/1/22
Mr. Taylor Bachrach
  • Nov/1/22 11:39:44 a.m.
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Madam Speaker, I wish I knew the answer to that. I am hoping that is one of the things the Auditor General will help us get to the bottom of, and I am very interested in what those findings might be.
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