GC Strategies, tied to ArriveCan’s $60M cost spike, is banned from federal contracts for 7 years after procurement and conduct investigations.
Major ArriveCan Contractor Banned by Federal Government
The federal government has barred GC Strategies Inc., the largest contractor involved in the controversial ArriveCan app, from bidding on federal contracts or real property agreements for the next seven years. The decision follows a public procurement investigation that found serious issues with the company’s conduct.
Contractor Deemed Ineligible After Review
Public Services and Procurement Canada (PSPC) confirmed that GC Strategies has been deemed “ineligible” for federal procurement after an internal review. The company’s security clearance was suspended last year, and it had already been excluded from participating in departmental bidding processes prior to the latest decision.
Contract Costs Ballooned from $2M to $60M
The ArriveCan app was launched in April 2020 to collect COVID-19-related health and contact information from incoming travellers and to streamline border procedures. Although the initial contract was valued at $2.35 million, a subsequent report by Auditor General Karen Hogan revealed that poor documentation and heavy reliance on subcontractors pushed the cost up to $60 million.
Broader Consequences for Other Contractors
Alongside GC Strategies, the government has also barred Dalian Enterprises and Coradix Technology Consulting, both of which contributed to the ArriveCan project. These firms are now excluded from federal procurement opportunities, part of a broader crackdown on contracting irregularities linked to the project.
Parliament to Receive Key Audit Findings
The Auditor General is set to deliver a new audit to Parliament on Tuesday, assessing whether payments to GC Strategies and others were aligned with federal policies and offered value for money. This audit could trigger further scrutiny into how tech contracts are awarded and monitored.
Fallout from House Testimony and Refusals
GC Strategies has come under parliamentary scrutiny before. Partner Kristian Firth was compelled to testify before the House of Commons after previously refusing to appear. Although a medical note citing mental-health issues was submitted, Firth later faced two hours of questioning from MPs, though Liberal members abstained.
Procurement Reform Underway
In response to the ArriveCan controversy, PSPC says it is taking steps to reinforce the integrity of Canada’s federal procurement processes. The department continues to review its policies to ensure that contract management and supplier accountability are strengthened.
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