The Procurement Ombud launches “Bait and Switch”: Procurement Practice Review of Replacement Resources in Professional Services Contracts
News release
Ottawa, Ontario – October 3, 2024 – The Office of the Procurement Ombud (OPO) has launched a procurement practice review to examine how often the resources identified in a winning bid actually don’t end up doing any of the work, a practice commonly referred to as “bait and switch”. OPO will specifically review practices related to the replacement of resources in professional services contracts to ensure the processes were conducted fairly and transparently, and supported Canada's selection of the best value supplier.
This review stems from issues identified in previous reviews conducted by OPO, as well as a request from the House of Commons Standing Committee on Government Operations and Estimates (OGGO).
As part of this procurement practice review, 5 federal departments were selected based on the value and volume of their procurement activities under specific contracting vehicles to acquire professional services. These five departments are:
- Employment and Social Development Canada (ESDC)
- Global Affairs Canada (GAC)
- Immigration, Refugees and Citizenship Canada (IRCC)
- National Defense (DND)
- Shared Services Canada (SSC)
- Public Services and Procurement Canada (PSPC)*
*Public Services and Procurement Canada (PSPC) is also included in this review due to its role as a central purchasing agent.
The procurement practice review was initiated on September 24, 2024, and according to OPO's regulatory timeline, it must be completed within one year.
Quotes
"The practice of inappropriately replacing resources occurs when suppliers bid for contracts by proposing highly qualified individuals to secure the contract, but later substitute them with less qualified personnel once the contract is awarded. This undermines the fairness and transparency of the procurement process and compromises the best value for Canadians."
-Alexander Jeglic
Procurement Ombud
Quick facts
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A procurement practice review is an independent and objective examination of procurement practices within one or more federal organizations. OPO assesses the fairness, openness and transparency of the practices under review and makes recommendations for improvement, as appropriate.
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In the course of a review, OPO reviews and analyzes records including, but not limited to, departmental policies and guidelines.
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Approximately two calendar years after the review report is published, OPO performs a follow-up exercise to assess the progress made by the federal organization(s) in response to any recommendations made.
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Contacts
Media@opo-boa.gc.ca
613‑947‑9755