Lack of Government Accountability Surrounds $250 Million Lawsuit

    OTTAWA, March 31 /CNW Telbec/ - TPG Technology Consulting has launched a
$250 million lawsuit against the Federal government, announced company
president Don Powell, at a press conference in Ottawa.
    "When Senator Fortier, Minister of Public Works and Government Services
Canada was appointed, he stated that the government would follow principles of
accountability and transparency. Well, nothing could be further from the
truth," stated Mr. Powell.
    The government awarded an IT services contract worth $428 million for
Engineering and Technical Services, to a competitor of TPG in October, 2007
despite public and media calls for an investigation into the process followed
for the Request for Proposals. Since TPG raised concerns about this contract
in April, 2007, PWGSC has engineered a wide-reaching and successful cover-up
of information about the evaluation. Rather than being open and transparent,
PWGSC erected a wall of silence and denial as TPG attempted to make use of the
official government-defined mechanisms to ensure transparency and
accountability. All of these much-lauded mechanisms have been completely
    However, in February, 2008, TPG obtained copies of the evaluation of its
proposal by happenstance, as a result of a third-party Access to Information
request. These documents provide conclusive proof that certain low scores
given to TPG in the "official" results were picked out of thin air, and are
not based on the scores awarded by the evaluation team. The pattern of tainted
scores makes it certain that these scores could not have been picked by the
evaluation team.
    An analysis of the legitimate scores shows that TPG should have been
awarded a technical score of at least 62 out of 65, and should have won this
contract by a decisive margin. Instead, TPG's "official" score was reduced to
57, ensuring that TPG would not be awarded the contract.
    TPG now has no alternative but to seek redress through the courts and has
filed a Breach of Contract lawsuit against PWGSC for failing to honour its
Duty of Fairness to bidders in evaluating the RFP.
    Equally unacceptable, PWGSC is also in Breach of Contract over the
implementation of the new contract, since the department has refused to
enforce many mandatory requirements defined in the RFP, putting at risk the
interests of millions of Canadians.
    Further, even though TPG purportedly lost this RFP on the basis of
technical capabilities, PWGSC rejected most of the technical personnel
proposed by the selected bidder, and has made unlawful efforts to plunder TPG
resources by inducing them to assist in implementing the new contract. The end
result is that taxpayers are forced to pay higher costs for exactly the same
individuals that TPG would have provided.
    Experience with this procurement has shown that the principles of
transparency and accountability, so aptly promoted by the Conservative
government following the Gomery inquiry, are not being implemented.
    "The conduct of PWGSC throughout this procurement has been shocking and
unacceptable. I am confident that the courts will deal with this conduct in
the harshest terms. But what is not right here is that the taxpayers will
ultimately pay the bill for PWGSC's mismanagement and unlawful actions," said
Mr. Powell.
    "The Minister talks the talk but obviously has no intention of fulfilling
his promises. The critical question for every Canadian is: when can real
integrity and public scrutiny be brought to federal government procurement,
which awards contracts worth $13 billion a year? A moratorium on competitive
procurements managed by PWGSC should be instituted until the complete truth
about this contract becomes public."

For further information:

For further information: Chris Frantz, (613) 720-1777,

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