{"id":45370,"date":"2024-06-04T17:52:20","date_gmt":"2024-06-04T21:52:20","guid":{"rendered":"https:\/\/www.technewsday.com\/?p=45370"},"modified":"2024-06-04T17:52:20","modified_gmt":"2024-06-04T21:52:20","slug":"federal-government-may-have-flouted-rules-when-awarding-mckinsey-contracts-ag-report","status":"publish","type":"post","link":"https:\/\/technewsday.com\/staging\/federal-government-may-have-flouted-rules-when-awarding-mckinsey-contracts-ag-report\/","title":{"rendered":"Federal government may have flouted rules when awarding McKinsey contracts: AG report"},"content":{"rendered":"<p>The Auditor General of Canada has indicated that the federal government flouted proper contracting policies and was unable to show it got value for money when it awarded $209 million in contracts to consulting firm McKinsey &amp; Company. Auditor General Karen Hogan delivered a report highlighting these issues, examining contracts awarded between January 1, 2011, and February 7, 2023.<\/p>\n<p>Hogan&#8217;s audit revealed a frequent disregard for federal contracting and procurement policies by organizations awarding the contracts.<\/p>\n<p>The audit was unable to determine if the contracts delivered value for money due to insufficient documentation and non-compliance with procurement rules.<\/p>\n<p>The audit found a substantial increase in the value of contracts awarded to McKinsey &amp; Company after Prime Minister Justin Trudeau came to power in 2015. Contracts awarded annually rose from less than $3 million before 2015 to over $55 million by 2021-22. But perhaps more distiburbing:<\/p>\n<ul>\n<li>Only 28 of the 97 contracts, worth about $91 million, were awarded through a competitive process.<\/li>\n<li>In six of the 28 competitive contracts, the bid appeared to be structured to favor McKinsey.<\/li>\n<li>There was insufficient documentation to support awarding 10 of the 28 competitive contracts, worth $13.7 million.<\/li>\n<li>69 contracts, worth $117.7 million, were awarded on a non-competitive basis.<\/li>\n<\/ul>\n<p>Public Service and Procurement Canada set up a standing offer in 2021, allowing departments and agencies to award non-competitive contracts. Twenty of these non-competitive contracts were awarded using this mechanism.<\/p>\n<p>The audit struggled to determine value for money in 19 of the 33 sampled contracts due to:<\/p>\n<ul>\n<li>Lack of justification for the contract&#8217;s necessity.<\/li>\n<li>No clear statement of deliverables.<\/li>\n<li>Lack of confirmation that all expected deliverables were received.<\/li>\n<\/ul>\n<p>Minister of Public Services and Procurement Jean-Yves Duclos acknowledged the audit&#8217;s findings and stated that the department is working to improve contract management. Measures include ensuring all contract-related documents are kept on file and improving criteria for standing offers.<\/p>\n<p>A spokesperson for McKinsey said the company acted appropriately and delivered value for money, stating confidence in having met the needs of their government clients.<\/p>\n<p>&#8211;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Auditor General of Canada has indicated that the federal government flouted proper contracting policies and was unable to show it got value for money when it awarded $209 million in contracts to consulting firm McKinsey &amp; Company. Auditor General Karen Hogan delivered a report highlighting these issues, examining contracts awarded between January 1, 2011, [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":45371,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[9],"tags":[1365,275],"class_list":["post-45370","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-todays-news","tag-todays-news","tag-top-story"],"acf":[],"_links":{"self":[{"href":"https:\/\/technewsday.com\/staging\/wp-json\/wp\/v2\/posts\/45370","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/technewsday.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/technewsday.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/technewsday.com\/staging\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/technewsday.com\/staging\/wp-json\/wp\/v2\/comments?post=45370"}],"version-history":[{"count":1,"href":"https:\/\/technewsday.com\/staging\/wp-json\/wp\/v2\/posts\/45370\/revisions"}],"predecessor-version":[{"id":45372,"href":"https:\/\/technewsday.com\/staging\/wp-json\/wp\/v2\/posts\/45370\/revisions\/45372"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/technewsday.com\/staging\/wp-json\/wp\/v2\/media\/45371"}],"wp:attachment":[{"href":"https:\/\/technewsday.com\/staging\/wp-json\/wp\/v2\/media?parent=45370"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/technewsday.com\/staging\/wp-json\/wp\/v2\/categories?post=45370"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/technewsday.com\/staging\/wp-json\/wp\/v2\/tags?post=45370"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}