Procurement and Contracting—Government of Yukon
At a Glance
Between 2019 and 2023, approximately 47,000 contracts were issued by 16 Yukon government organizations totalling a value of over $1.2 billion. We examined a representative sample of 53 contracts across all 16 organizations and an additional 10 contracts with values of $250,000 or more.
Overall, the Yukon government’s procurement and contracting activities did not demonstrate value for money as they were not always documented or monitored for results. The 16 organizations also fell short of creating a competitive environment for Yukon First Nations and local businesses. The Yukon government committed to increasing opportunities for Yukon First Nations and local businesses to secure government contracts to develop the Yukon economy and support economic self‑reliance. This is important because in addition to creating local opportunities, prioritizing a competitive environment also drives competitive pricing, which would increase value for money.
We found that a competitive environment was not created and value for money was not demonstrated in 51% of the contracts in our representative sample. We also found that in 8% of those contracts, work had started before the contract was signed. Of the 10 high dollar‑value contracts we looked at in addition to those in our representative sample, we found 1 contract where work had started almost a year before the signing of the $2 million contract, which was also awarded without a competitive process.
The Department of Highways and Public Works—as the central agency responsible for procurement and contracting—needed information from all Yukon government organizations to know whether the government was delivering on its commitments, including that of creating a competitive environment for Yukon First Nations and local businesses. However, the department failed to provide the organizations with the necessary guidance to identify the information that they needed to provide.
As part of its oversight role, the department gave advice on request to organizations when they planned procurements that might not comply with the procurement policy. From 2019 to 2024, we found 110 instances out of 291 consultations where the department’s advice was not followed. This is concerning because these were instances where organizations were not respecting elements of the procurement policy.
Key facts and findings
- Of the 47,041 contracts awarded by the Government of Yukon, 57% were for the purchase of goods; however, contracts for services represented 87% of the over $1.2 billion total value.
- Of the contracts awarded by the Government of Yukon, 94% were for amounts under $50,000. Contracts equal to and over $250,000 represented 1.4%.
- A representative sample revealed that a competitive environment was not created and value for money was not demonstrated for 51% of the contracts.
- In 8% of the contracts, we found that the contracts were signed between 2 weeks and 4 months after work under the contracts had started.
- In 1 case, we found that a $2 million contract was signed 11 months after work had started and was awarded without a competitive process.
- We found that 52 of the 53 contracts that we selected using representative sampling had contract values under $50,000 and over two thirds (69%) of these were directly awarded. More than three quarters (77%) of the 53 contracts were awarded to Yukon‑based businesses.
Why we did this audit
- The Government of Yukon has committed to key principles as part of its Government of Yukon Procurement Policy, including increasing opportunities for local businesses and Yukon First Nations to secure Government of Yukon contracts and building a stronger economic future for Yukoners by providing value for money.
- Delivering on the Government of Yukon’s commitments will strengthen the confidence of Yukon residents in public procurement.
Highlights of our recommendations
- The Department of Highways and Public Works should identify the required data to collect, and Yukon government organizations should collect the data and should monitor and formally report whether procurement and contracting activities are creating a competitive environment and achieving value for money.
- The Department of Highways and Public Works should identify the information it needs to collect to report on procurement policy outcomes, including risks.
Please see the Link opens a PDF file in a new browser windowfull report to read our complete findings, analysis, recommendations and the audited organizations’ responses.
Exhibit highlights
Examples of goods and services obtained by the Government of Yukon through contracts
| Goods | Services |
|---|---|
| Office furniture | Construction of a bridge |
| Auto parts | Roadway or building maintenance (for example, cleaning or repairs in schools and community centres) |
| Fire extinguishers | Transportation (for example, helicopters to fly to remote sites) |
| Road signs | Specialized expertise (for example, geological testing) |
Number and value of contracts awarded by all 16 Yukon government organizations with start and end dates from 1 April 2019 to 31 October 2023
| Yukon government organization | Number of contracts | Value of contracts |
|---|---|---|
| Department of Community Services | 3,745 | $253,241,280 |
| Department of Economic Development | 189 | $3,031,952 |
| Department of Education | 2,135 | $27,157,929 |
| Department of Energy, Mines and Resources | 1,594 | $80,265,512 |
| Department of Environment | 2,410 | $47,040,271 |
| Executive Council Office | 384 | $4,467,449 |
| Department of Finance | 145 | $1,014,152 |
| French Language Services Directorate | 24 | $77,613 |
| Department of Health and Social Services | 4,183 | $113,647,758 |
| Department of Highways and Public Works | 28,033 | $611,223,264 |
| Department of Justice | 1,213 | $14,477,593 |
| Public Service Commission | 819 | $13,953,455 |
| Department of Tourism and Culture | 1,857 | $30,148,403 |
| Women and Gender Equity Directorate | 49 | $493,621 |
| Yukon Development Corporation | 12 | $431,166 |
| Yukon Liquor Corporation | 249 | $9,264,424 |
| Total | 47,041 | $1,209,935,841 |
Thresholds by acquisition method
| Acquisition method | Goods | Services |
|---|---|---|
| Direct award | Less than $10,000 | Less than $50,000 |
| Competitive tendering is required (invitational tendering) | $10,000 up to but not including $30,300 | $50,000 up to but not including $121,200 |
| Competitive tendering is required (open tendering) | $30,300 or greater | $121,200 or greater |
Threshold amounts are updated every 2 years and were in effect as of 1 January 2022.
Value for money was not demonstrated for 27 of the 53 contracts selected using representative sampling
| Five value-for-money elements reviewed | Assessed as met | Assessed as not met |
|---|---|---|
| Competitive environment was created | 26 | 27 |
| Deliverables met the stated need | 53 | 0 |
| Deliverables were received | 53 | 0 |
| Contract monitoring of Yukon First Nations participation measures (Note: applicable in only 2 instances) | 2 | 0 |
| Management of non‑performance | 53 | 0 |
Related information
Entities
- Department of Highways and Public Works
Tabling date
- 26 November 2024
OAG reports published in the past are available through Publications.gc.ca.