Canada Ministry of Forreign Affairs no longer control costs

Ministry of Foreign Affairs of Canada no longer controls costs

The Canadian Department of Foreign Affairs has awarded several contracts since 2010 for computer consultants that have resulted in significant cost overruns, La Presse has learned, through Law on Access to information. A situation considered very "disturbing", according to an economist that La Presse has forwarded the documents.

On the list of all IT contracts awarded by the Ministry of Foreign Affairs since 2010, Mérette, economist and dean of the Faculty of Science Social from the University of Ottawa, notes overruns very common costs.

"The amendments are disturbing, it just did not air tight and this is not very reassuring," he said.

These " amendments "are modifications to the original contracts. Even if the government refuses to use the term "cost overruns", the fact remains that these changes have significantly increased the bill of contracts.

"In terms of computer management contracts or elsewhere, the rule gold is that if there are changes resulting in over 10% increases, it would make another bid, "he explains.

Mr. Mérette cites the example of a list of contracts established in $ 62,000 with amendments in the order of more than $ 408,000. "The company that receives the contract is the one that makes the lowest bid, but perhaps that other companies had already estimated that it would cost $ 400,000, but they was eliminated," he illustrates.

LOOK WELL:We also note in this list a contract $ 1.13 with an amendment of $ 769,530 $. La Presse tried for 10 days to obtain clarification on this from the Ministry of Foreign  Revived several times, the Ministry has not responded.

The computer industry is a rapidly evolving field. "We find ourselves in a situation of asymmetric information where the consultant knows much more often - or makes believe he knows more - the customer, it becomes a matter of confidence and that is where he there is danger of abuse, "says Mérette. In these circumstances, the monitoring of contracts must be particularly harsh, insists there.

Internal Inquiry

Moreover, La Presse also got hold of an internal investigation report of the Office of the Inspector General that is the problem state contracts tracking the Foreign Ministry with a computer consultant, François Simard.

Between 2008 and 2013, the period covered by the survey, the consultant had 11 contracts with the Department, totaling $ 1.9 million.

"The The investigation established that [redacted] was charging an excessive number of hours, for example, by fabricating false time sheets, "it said in the report.

The report found 30 false time sheets between 2010 and 2012 have been "manufactured" in the amount of $ 230,289.

According to the report, the consultant in charge of such work days over 24 hours or one hour on November 31 ... that never existed in the Gregorian calendar .

"There was a lot of workloads [...] and the Canadian Consulate was on the alert because it received many requests and appeals and the site was very busy [during the uprising of the Arab Spring ] says Simard in a telephone conversation with The Gazette. I had to be on call even at night. I was paid to answer the phone in the event of a problem with the system.

""During the period from 10 to 11 months where he was on duty [redacted], did not have to respond to any call "However, the report said. This care of the rest was not specified in the contractadded:.

In a letter annexed to the investigation report, a government manager said he was "ashamed and embarrassed" about the hours billed, but  "I had no reason not to trust him, "he explains. However, the letter concludes with this statement: "The trust is good but control is better."

Taxpayers Canadians

"Excessive dependence and a misguided confidence in an external consultant paved the way to abuse and billing led to considerable losses for the Department and Canadian taxpayers, "concludes the report.

The report also raises irregularities in the contract award regarding this consultant suggests to contract splitting practices.

Mr. Simard claims to have dropped the computer consulting since this episode. The report of the administrative inquiry has been transferred to a police force, confirmed Nicolas Dora, spokesman for the Foreign Ministry. The latter refused to disclose whether the official was still employed by the Ministry. On a document page, we learn that the man who approved invoices is named Robert Ledermann. The latter is still manager at the Ministry of Foreign Affairs and declined to comment.

Annabelle Blais La Presse published May 4, 2015

In collaboration with William Leclerc

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