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Disregarded Regulations in GC Strategies Contractual Arrangements

GC Strategies, implicated in the ArriveCAN controversy, has been hired by at least 31 federal departments and ministries over a 10-year span, frequently disregarding procurement regulations. The largest contract value reached 92.7 million Canadian dollars, with payments totaling 64.5 million.

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GC Strategies, the consulting firm involved in the ArriveCAN controversy, has been hired by at...
GC Strategies, the consulting firm involved in the ArriveCAN controversy, has been hired by at least 31 organizations and government departments over a decade. Frequently, these engagements disregarded standard procurement procedures. The total worth of these contracts amounted to 92.7 million, with 64.5 million of the funds disbursed.

GC Strategies: A Troublesome Consulting Firm in Canada's Government Circle

Disregarded Regulations in GC Strategies Contractual Arrangements

One shady consulting firm, GC Strategies, has made its mark in the Canadian federal scene for a decade, securing its services with an astounding 31 organizations and ministries. The grand total of these contracts amounts to a whopping $92.7 million, with $64.5 million already paid out.

Let's dive into the revelations from the recent parliamentary reports, tabled on a Tuesday, as scrutinized by the auditor general, who surprisingly, made no recommendations.

Karen Hogan, the auditor general, reveals, "No need for more procurement rules, federal organizations should instead ensure that the ones already in place are understood and followed."

She's not a newbie to this song, having pointed out last year that the intricate procurement rules can leave employees drowning in confusion.

The report enlightens us on how "federal organizations systematically justified their need for services from GC Strategies Inc." The demand stemmed either from the need for specialized services or to boost temporary capacity.

In nearly 60% of the non-competitive contracts, federal organizations failed to realize whether a tender process would offer them a better deal. In a third of contracts, whether competitive or not, they couldn't demonstrate that the contractual resources had the required experience and qualifications.

Worryingly, documents attesting to the validity of IT employees' security clearances were missing in 21% of contracts involving GC Strategies.

These issues aren't fresh. They've been raised in numerous reports and inquiries into the spiraling costs of the ArriveCAN application.

GC Strategies faced a seven-year ban from federal contracts in June 2025. This stringent measure comes from the Ministry of Public Services and Procurement after the company, with an owner under investigation by the RCMP, was suspended.

The two-man firm has made headlines throughout the past year due to the ArriveCAN scandal. It held the prime position for contracts recruitment of IT employees for the federal government.

The auditor general notes an upward trend in spending on GC Strategies contracts. Interestingly, this rise coincides with government spending on consulting services growing steadily. However, throughout the ten-year period analyzed, GC Strategies' contracts never took more than 0.37% of the total amount spent on IT services government-wide.

The Chequered History of GC Strategies

GC Strategies Inc. has been a part of numerous federal contracts with the Canadian government since 2015, dealing mainly with the Canadian Border Services Agency and other federal organizations[3][5]. The company, however, grappled with procurement issues, including non-compliance with basic safeguards and inadequate documentation for security clearances[5].

Controversies

  1. Ineligibility and Suspension: GC Strategies was ineligible under the Ineligibility and Suspension Policy by Public Services and Procurement Canada (PSPC) in June 2025, following a comprehensive review of its conduct. This decision bans the company from federal contracts for seven years[1][4].
  2. ArriveCan App: Although GC Strategies did not develop the ArriveCan app, it contributed to the project by assembling a team to complete parts of it[2]. The ballooning cost of the original $2.35 million project to over $60 million is largely attributed to poor oversight and the extensive reliance on contractors like GC Strategies[5].
  3. Auditor General's Report: The Auditor General's report shed light on significant procurement irregularities. It found that federal organizations frequently authorized payments without evidence of completed deliverables and often lacked proper documentation for security clearances[3][5].
  4. Despite the auditor general's report revealing the lack of proper procurement practices and insufficient evidence of completed deliverables, GC Strategies continued to secure contracts in the financial realm, specifically in political business deals with numerous Canadian ministries and organizations.
  5. With GC Strategies Inc. heavily involved in the controversial ArriveCAN application, questions arise regarding the firm's competency in the financial sector, as widespread concerns over procurement issues, non-compliance with basic safeguards, and inadequate documentation for security clearances persist, casting doubt on the company's suitability for future political finance market engagements.

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