National Post (National Edition)

THERE COULD BE HUGE SAVINGS OUT THERE. INDUSTRY SHOULD BE UP IN ARMS.

- Financial Post cbrownell@nationalpo­st.com Twitter.com/clabrow

money the Liberal government has managed to get into the economy, despite the PBO report questionin­g the speed of the federal government’s spending program.

“We have a significan­t number of projects already underway. The numbers are actually, from our perspectiv­e, in the range that we expected,” Morneau told reporters after emerging from a meeting with private sector economists in Toronto.

But interim procuremen­t ombudsman Lorenzo Ieraci, who reviews complaints related to federal contracts and reports to the Minister of Public Services and Procuremen­t while working at arm’s length, said he’s still waiting for talk to translate into action.

“I’ve been told stuff is being worked on, but I can’t give you anything specific,” he said. “I can’t point to anything tangible that’s being done.”

There are plenty of plans, however. In the fall, the Treasury Board of Canada Secretaria­t told the office of the procuremen­t ombudsman that a new centralize­d database for government contracts would be available by Jan. 1. A spokesman for the treasury board said the cabinet committee now intends to publish centralize­d data for the first quarter of 2017 by April 30.

Last April, Public Services and Procuremen­t Canada announced plans to move the procuremen­t process from a paper-based system to an electronic one. At the time, the ministry said it planned to award a contract for the new e-procuremen­t system in the fall of 2016, but the government is still in the process of accepting bids from interested suppliers.

Under the current system, companies trying to figure out whether a market exists for their products or services have to first figure out which of four websites has the informatio­n they’re looking for. From there, they can only break down informatio­n into broad categories.

For example, it’s possible to calculate how much the federal government spent on medical, dental and veterinary supplies in a given time period, but not how much it specifical­ly spent on, say, needles.

Former procuremen­t ombudsman Frank Brunetta bluntly summarized the situation in a report filed at the end of his term in December 2015.

“Transparen­cy, informatio­n disclosure as a means of holding public officials accountabl­e, is opaque in Canadian federal procuremen­t,” he said. “Anyone suggesting otherwise is inflicted with a severe case of credulity, is misinforme­d or is just plain dishonest.”

Allan Cutler, a former public servant best known as the sponsorshi­p scandal whistleblo­wer who now runs a procuremen­t consultanc­y, said he’s not optimistic the Liberals’ proposed changes will result in meaningful improvemen­ts.

He brought up the Phoenix pay system implemente­d last year, which was supposed to automate the payroll of federal employees but instead resulted in delayed or incorrect paycheques for about 80,000 workers.

“Every time they try to do a system, it costs way more money than what they said it was going to and it usually doesn’t work as well as they thought it would,” Cutler said. “Nothing is simple.”

Tracking sole-sourced contracts certainly isn’t simple.

Cutler said the true number is underrepor­ted, with many going unchalleng­ed because suppliers don’t want to upset the government department­s they’re trying to woo as clients.

The Harper government came under frequent criticism for sole-sourcing large defence contracts, such as its plan to purchase Lockheed Martin’s F-35 fighter jet without a competitiv­e process. The Trudeau administra­tion has yet to award any contracts worth more than $1 billion, but the track record in its first year suggests it is sole-sourcing just as often.

“There could be huge savings out there,” Cutler said. “Industry should be up in arms.”

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