2023-24 Procurement Report Urges Immediate Action

Office of the Procurement Ombudsman

Federal Procurement Ombud Alexander Jeglic released his Annual Report for 2023-24, which was tabled in Parliament by the Minister of Public Services and Procurement, the Honourable Jean-Yves Duclos on October 7, 2024.

The report, which summarizes the Office of the Procurement Ombud's activities from April 1, 2023, to March 31, 2024, highlighted long-standing procurement issues including favouritism towards specific bidders, the complexity of federal procurement, overly restrictive evaluation criteria, the lack of documentation and gaping holes in the quality of contract information made public by departments.

Furthermore, the report details two suggestions intended to address these issues directly. The first is the creation of a Government Wide Vendor Performance Management Program to track and share information on supplier performance across federal departments and regions, and take past performance into account in the award of future contracts. The second is the creation of a Federal Chief Procurement Officer position to lead the creation, interpretation and implementation of procurement policies, and to lead a capacity building and professionalization initiative.

The Procurement Ombud has requested three key regulatory changes to enhance his ability to perform his duties more effectively. These proposed changes include the authority to recommend compensation to suppliers exceeding 10% of a contract's value, the ability to review complaints related to contracts awarded under the Procurement Strategy for Indigenous Businesses (PSIB) set-asides program, and the power to compel (rather than request) federal departments to provide the documentation necessary to conduct reviews and investigations. The latter request was supported in the Standing Committee on National Defence's recent report on defence procurement.

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