Transparency: Standing Committee on Government Operations and Estimates—November 16, 2020
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Transparency of COVID-19 related contracts
Context
Public Services and Procurement Canada (PSPC) is publicly disclosing, to the fullest extent possible, information on contracting related to the COVID-19 pandemic.
Suggested response
- The Government of Canada is engaged in an unprecedented effort to ensure that front-line healthcare workers and Canadians have the supplies they need to stay healthy and safe during the COVID-19 pandemic
- PSPC has a web page disclosing, to the fullest extent possible, supplier names and contract values for all contracts Canada has entered into for personal protective equipment and medical equipment
- Consistent with our commitment to transparency and disclosure of contracts on a quarterly basis, we have recently updated our web table
If pressed on why contracts are not being disclosed sooner or in full:
- the government is committed to providing Canadians, including members of this house, with as much information as possible about our efforts to respond to COVID-19
- given the volatility of the marketplace we need to strike the right balance between ensuring transparency while upholding the integrity of the procurement process and not jeopardizing orders or compromising Canada’s negotiating position
- my department has posted an extensive listing of contracts issued to date
- transparency and accountability is critically important to the government and we are committed to releasing a full account of our procurement efforts as soon as our procurement of vital supplies is no longer at risk
If pressed on the use of the national security exception and Access to Information Act to prevent disclosure of information:
- at the outset of the pandemic, we faced an extremely competitive procurement environment for essential supplies and personal protective equipment (PPE)
- to ensure that essential workers and Canadians had the urgent supplies and equipment needed, we leveraged various tools to ensure Canada had the most favorable negotiating position possible to streamline procurement efforts
- as supply chains for essential equipment and supplies stabilize, we will continuously review opportunities to disclose additional contracting information to the public
Background
At the outset of the pandemic, the government was faced with intense competition to procure essential supplies and PPE. To this end, the national security exception was applied to remove certain obligations, such as timeframes and public post tender notices, to complete urgent procurements more quickly. Additionally, the use of section 18 (b) of the Access to Information Act was also applied to exempt sensitive information relevant to ongoing contract negotiations.
Given the global nature of the pandemic and the severe competition for goods, we needed to protect the names of suppliers for certain hard-to-procure commodities, such as N95 respirators and test kits to ensure these sources of supply remained available to us.
The procurement environment has since evolved. We have secured more than 2 billion articles of various PPE, and we will continue to receive steady, ongoing deliveries into the coming months. We are also continuing to leverage domestic supply chains wherever possible, with approximately 40% of the total value of PPE contracts going to domestic companies.
In line with this new reality, and consistent with our commitment to transparency, we are now disclosing the majority of our COVID-19 contracting information on our web page as well as through normal proactive disclosure requirements. In limited cases, certain contract details cannot be disclosed, for example to protect commercial confidentiality of suppliers.
Looking forward, careful balancing of transparency and protecting Canada’s procurement capacity will remain important as we continue through this second wave of COVID-19 infections.
This disclosure of contracting information continues to be complemented by a web table which will include data on total quantities ordered and received for select commodities.
Committee studies and motions for the production of papers
Context
Following the resumption of parliament, a number of motions have been introduced in the House and in committee that have direct implications for Public Services and Procurement Canada (PSPC).
Key messages
- The government is committed to providing Canadians, including members of the House, with as much information as possible about our efforts to respond to COVID-19
- PSPC has a web page disclosing, to the fullest extent possible, supplier names and contract values for all contracts Canada has entered into for personal protective equipment (PPE) and medical equipment
- Consistent with our commitment to transparency and disclosure, this web page is updated quarterly
- To protect the integrity of procurement processes, as well as the integrity of global supply chains, PSPC must be able to assure private companies that their proprietary and sensitive information is protected
- In this environment, the disclosure of certain procurement information could jeopardize orders and compromise Canada’s negotiating position, in particular in international markets
- We are aware of our responsibilities under the Access to Information Act as well as confidentiality provisions in our contracts
- With this in mind, my department is working diligently to collect relevant documents and assess their contents with the goal of maximizing transparency
Adopted motions
Motion 1: Member of Parliament Pierre Paul-Hus
Committee: Standing Committee on Government Operations and Estimates (OGGO)
Type: Production of papers
Overall subject matter: Nuctech Security Equipment contract
Adopted: October 8, 2020
Due to committee: December 10, 2020
On October 8, 2020, a motion on the production of papers from Member of Parliament (MP) Pierre Paul-Hus (Conservative Party of Canada (CPC)) requesting all documents, memorandums, and briefing materials related to the contract.
During the previous session, a similar motion was adopted at OGGO. This motion extends the date range to cover records between July 9, 2019 and October 8, 2020.
Motion 2: Member of Parliament Pierre Paul-Hus
Committee: OGGO
Type: Study
Overall subject matter: Procurement of medical equipment and the delays created by the COVID-19 pandemic.
Adopted: October 8, 2020
On October 8, 2020, a motion was introduced at committee by MP Paul-Hus to request that the committee undertake a study of the government’s response to the COVID-19 pandemic including the procurement of medical equipment and the delays created by the COVID-19 pandemic on procurement activities and that the evidence and documentation received by the committee during the first session of the 43rd Parliament, as part of its study of the government’s response to the COVID-19 pandemic, be taken into consideration by the committee in the current session.
Throughout PSPC committee appearances, parliamentarians have regularly enquired about the procurement activities with respect to medical supplies and the delays being encountered.
Motion 3: Member of Parliament Pierre Paul-Hus
Committee: OGGO
Type: Study
Overall subject matter: Main Estimates 2020 to 2021
Adopted: October 8, 2020
A motion was passed to invite the minister and officials to appear and speak to the Main Estimates 2020 to 2021. At that appearance, the department may also be asked to speak to the Supplementary Estimates (B) 2020 to 2021.
Motion 4: Member of Parliament Pierre Paul-Hus (amended by Member of Parliament Julie Vignola)
Committee: OGGO
Type: Study
Overall subject matter: Federal information technology (IT) infrastructure
Adopted: October 8, 2020
A motion introduced by CPC MP Pierre Paul-Hus and amended by Bloc Québécois (BQ) MP Julie Vignola would have OGGO conduct a study on the upgrading of Federal IT infrastructures and make recommendations to improve the efficiency during the pandemic and after, particularly as it relates to the administration of assistance services and programs such as the Canadian Emergency Response Benefit (CERB) and the processing of immigration files. PSPC could be invited to appear as a witness for this study.
Motion 5: Member of Parliament Alexis Brunelle-Duceppe
Committee: Standing Committee on National Defence (NDDN)
Type: Study
Overall subject matter: CF-18 fleet
The Standing Committee on National Defence agreed to undertake a study on the effects of the aging CF-18 fleet and the operational capacity of the Canadian Arms Forces. The committee will look at the impacts of delays in procuring new aircraft, the growing workload involved in maintaining the current aircraft and the availability of personnel to carry out these operations. The study will consist of a minimum of 4 meetings and will report its findings to the House and request a government response.
Motion 6: Member of Parliament Michelle Rempel
Committee: Standing Committee on Health (HESA), as ordered by an opposition day motion in the House
Type: Study and production of papers
Overall subject matter: Government’s response to COVID-19
Adopted: October 26, 2020
Due to committee: November 30, 2020 with a possible extension to December 6, 2020
A CPC opposition day motion requests that the Health committee conduct a study on the second wave of COVID-19, and includes 4 committee orders for the production of papers that have implications for PSPC. The orders are as follows:
- (w) an order of the House do issue for all memoranda, emails, documents, notes and other records from the Prime Minister’s Office, the Privy Council Office, the office of the Minister of Public Services and Procurement, the office of the Minister of Health, Health Canada and the Public Health Agency of Canada, concerning plans, preparations, approvals and purchasing of COVID-19 testing products including tests, reagents, swabs, laboratory equipment and other material related to tests and testing applications used in the diagnosis of COVID-19, since March 19, 2020
- (x) an order of the House do issue for all memoranda, emails, documents, notes and other records from the Prime Minister’s Office, the Privy Council Office, the office of the Minister of Public Services and Procurement, the office of the Minister of Health, Health Canada and the Public Health Agency of Canada concerning plans, preparations and purchasing of PPE, including gowns, gloves, masks, respirators, ventilators, visors and face shields, since March 19, 2020
- (y) an order of the House to issue for all memoranda, emails, documents, notes and other records relating to the COVID-19 Vaccine Task Force and its subcommittees; (HC/PHAC lead with input from PSPC)
- (z) an order of the House to issue for all memoranda, emails, documents, notes and other records relating to the Government of Canada’s COVID-19 vaccine distribution and monitoring strategy, including, but not limited to anticipated timelines for the distribution of an approved COVID-19 vaccine across Canada and the prioritization of population groups for vaccination; (PHAC/HC lead with input from PSPC)
Motion 7: Member of Parliament Matthew Green
Committee: OGGO
Overall subject matter: National Emergency Strategic Stockpile
Adopted: November 2, 2020
Due to committee: December 1, 2020
MP Green moved a motion for the production of papers on November 2 with respect to the National Emergency Strategic Stockpile. The motion is stated as follows: “That, in the context of its study of the government’s response to the COVID-19 Pandemic and pursuant to standing order 108(1)(a), the committee send for all briefing notes, memos and emails from senior officials, prepared for the Minister of Health, the President of the Public Health Agency of Canada, the Chief Medical Health Officer of Canada, and the Minister of Public Service and Procurement between 2010 and the present day, regarding the stockpiling, management, disposal and replenishment of medical equipment and supplies in the National Emergency Strategic Stockpile; that the committee receive the information no later than December 1, 2020; that matters of Cabinet confidence and national security be excluded from the request; that any redactions to protect the privacy of Canadian citizens and permanent residents whose names and personal information may be included in the documents, as well as public servants who have been providing assistance on this matter, be made by the Office of the Law Clerk and Parliamentary Counsel of the House of Commons and that these documents be posted on the committee’s web page”.
Motion 8: Member of Parliament Matthew Green
Committee: OGGO
Overall subject matter: Disaggregated data
Adopted: November 2, 2020
Due to committee: December 1, 2020
The motion is stated as follows: “That, in the context of its study of the government’s response to the COVID-19 Pandemic and pursuant to standing order 108(1)(a), the committee send for documents from Public Service and Procurement Canada (PSPC) containing the following disaggregated data related to businesses owned by under-represented groups (Black, Indigenous, women, and persons with disabilities) who have engaged with PSPC with regard to the federal government’s response to COVID-19:
(a) (i) how many companies from under-represented groups have secured contracts with PSPC, (ii) the value of these contracts, (iii) the number of businesses from underrepresented groups screened and approved as credited vendors, (iv) number and value of set aside contracts for these businesses, (v) the number of sub-contracts entered into”
Motions being debated
Motion 1: Member of Parliament Peter Julian
Committee: Standing Committee of Finance (FINA)
Overall subject matter: Special committee to examine government spending during the pandemic
Moved: October 8, 2020
On October 8, 2020, New Democratic Party (NDP) MP Peter Julian moved that a special committee be appointed to review all aspects of the government’s spending in response to COVID-19, including that on the procurement of personal protective equipment. If this committee is formed, the minister of PSPC is expected to be invited to appear along with other ministers. If the motion passes, the committee would report back to the House no later than February 15, 2021. Debate was adjourned.
Motion 2: Member of Parliament Patrick Weiler and amended by Member of Parliament Julie Vignola
Committee: OGGO
Overall subject matter: Federal ships and shipyards
Moved: October 8, 2020
On October 8, 2020, MP Patrick Weiler introduced a motion for the committee to conduct a 16-meeting study on federal shipbuilding, ship procurement, the polar icebreaker, the effect of COVID-19 on shipyard construction and delivery, and the criteria for ranking shipyards in the awarding of contracts under the National Shipbuilding Strategy and that the committee report its findings to the House by November 26, 2020. Debate was adjourned.
Motion 3: Member of Parliament Matthew Green
Committee: OGGO
Overall subject matter: Various
Moved: October 8, 2020
On October 8, 2020, MP Green introduced a 13 part motion requesting that the committee resume the following studies and activities undertaken during the first session of the 43rd Parliament and that the evidence heard and documentation received by the committee in relation to these studies be taken into consideration by the committee in this session. Debate was adjourned. The motion reads as follows:
- defence procurement with a focus on shipbuilding
- government’s response to the COVID-19 pandemic
- Greening Government Strategy
- hiring process in the Public Service
- hiring of veterans for public service positions
- review of the Red Tape Reduction Act
- Departmental Results Reports 2018 to 2019
- subject matter of Supplementary Estimates (A), 2020 to 2021: vote 1a under Department of Public works and Government Services, votes 1a and 5a under National Capital Commission, vote 1a under Privy Council Office, votes 1a and 5a under Shared Services Canada and votes 1a, 20a and 30a under Treasury Board Secretariat
- subject matter of Supplementary Estimates (B), 2019 to 2020: vote 1b under Department of Public works and Government Services, votes 1b and 5b under Shared Services Canada and vote 1b under Treasury Board Secretariat
- briefing on the Nuctech security equipment contract
- briefing by the minister of Public Services and Procurement on Phoenix
- briefing by the Minister of Public Services and Procurement on Canada Post
- awarding by the federal government of a $900 million sole-sourced contract to WE charity, as well as prior contracts to this organization and,that, in the context of its study of the government’s response to the COVID-19 pandemic and pursuant to standing order 108(1)(a), the committee send for all briefing notes, memos and emails from senior officials, prepared for the Minister of Health, the President of the Public Health Agency of Canada, the Chief Medical Health Officer of Canada, and the Minister of Public Service and Procurement between 2010 and the present day, regarding the stockpiling, management, disposal and replenishment of medical equipment and supplies in the National Emergency Strategic Stockpile
- that the committee receive the information no later than October 31, 2020 (amended to December 31, 2020)
- that matters of Cabinet confidence and national security be excluded from the request
- that any redactions to protect the privacy of Canadian citizens and permanent residents whose names and personal information may be included in the documents, as well as public servants who have been providing assistance on this matter, be made by the Office of the Law Clerk and Parliamentary Counsel of the House of Commons and that these documents be posted on the committee’s web page
- that, in the context of its study of the government’s response to the COVID-19 pandemic and pursuant to standing order 108(1)(a), the committee send for documents from Public Service and Procurement Canada (PSPC) containing the following disaggregated data related to businesses owned by under-represented groups (Black, Indigenous, women, and persons with disabilities) who have engaged with PSPC with regard to the federal government’s response to COVID-19:
- (a)(i) how many companies from under-represented groups have secured contracts with PSPC; (ii) the value of these contracts; (iii) the number of businesses from underrepresented groups screened and approved as credited vendors; (iv) number and value of set aside contracts for these businesses; (v) the number of sub-contracts entered into
- (b) that the committee send for all papers and records, in unredacted form, from Employment and Social Development Canada (“ESDC”) relating to the Federal Contractors Program, and in particular:
- all current, signed agreements to implement employment equity (“agreements”)
- the most current list of contractors covered by said agreements
- the most current compliance documentation furnished by each contractor covered by an agreement, including the goal-setting report, achievement table, workforce analysis, revised goals for remaining gaps in representation, and any explanatory material
- the most current documentation of ESDC’s compliance assessment for each contractor covered by an agreement
- the most recent limited eligibility to bid list
- all documentation filed in an appeal of a finding of non-compliance by a contractor to the minister
- all documentation connected to an independent review of an appeal
- any documentation internal to ESDC assessing or evaluating the Federal Contractors Program:
- that the committee receive these documents, papers and records no later than October 31, 2020 (amended to December 31, 2020)
- that departments tasked with gathering and releasing the following documents do their assessment and vetting as would be done through the access to information process
- that these documents be posted on the committee’s web page”
Parliamentary Secretary MacKinnon moved an amendment to the motion to have the 2 delivery dates for the production of papers changed from October 31, 2020 to December 31, 2020.
Motion 4: Member of Parliament Pierre Paul-Hus
Committee: OGGO
Overall subject matter: Procurement of ventilators
Moved: October 27, 2020
MP Paul-Hus moved a motion to have the committee undertake a study on the federal contract for 10,000 ventilators awarded to FTI, and manufactured by Baylis Medical and that the committee report its findings to the House in November. Debate was adjourned.
Motion 5: Member of Parliament Charlie Angus
Committee: Standing Committee on Access to Information, Privacy and Ethics (ETHI)
Overall subject matter: Conflict of interest and lobbying acts
Moved: November 3, 2020
Mr. Angus (NDP) introduced a motion that included elements related to PSPC. The motion contained the following: “…that the study include the consideration of all aspects of the government’s involvement with Baylis Medical Company Inc. as well as former liberal government member Frank Baylis including the awarding of contracts for the procurement of medical equipment and that it include an examination into Palantir Canada’s relationship... And that as part of this study this committee be able to call witnesses and request documents, and that the committee, upon completion of its study, issue a report with recommendations to better permit the Government of Canada to conduct the business of government with public confidence in its integrity.”
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