Government Operations and Estimates

The House of Commons Government Operations and Estimates committee studied federal procurement practices, hearing from Alexander Jeglic, Procurement Ombud, and Kelly Kilrea, Senior Risk Advisor from the Office of the Procurement Ombud.

Alexander Jeglic testified that his office received a record 670 cases in 2024-25, nearly double the number at the start of his mandate, while its budget has not increased in 17 years, putting its legislative mandate at risk. He presented five foundational changes needed: creating a chief procurement officer, establishing a government-wide vendor performance management system, developing a single set of federal procurement rules, using AI to modernize procurement tools, and creating a framework for procurement data collection. On the "bait and switch" review, he noted that in 41% of cases, replacement resources did not meet or exceed the qualifications of originally proposed resources, though recent policy changes by PSPC focusing on corporate rather than individual experience have largely eliminated this practice while potentially creating unintended consequences for smaller firms. He disagreed with PSPC's request to remove a section on unintended consequences from the report, arguing it was directly relevant and based on concerns from small and medium-sized businesses.

Kelly Kilrea added that the new master-level user arrangement now requires all proposed resources to provide a digitally signed proof of consent with their bid, which should help mitigate bait and switch issues. She did not otherwise offer substantive testimony separate from Jeglic's remarks.

Jeglic confirmed that the department's request to remove a section from the report was part of a formal process under procurement ombudsman regulations, and while such requests are not unusual, a full redaction of sections is less common. He stated that his office cannot definitively determine fraud, as that has criminal implications and would be referred to the RCMP, but noted that 41% of cases involved resources that did not meet qualifications, which could impact the integrity of procurement processes. He emphasized that the new solutions-based procurement approach shifts responsibility to suppliers for creativity, but stressed that active contract management remains essential to prevent cost escalation and accountability issues.