OTTAWA, ON, June 27, 2023 /CNW/ - On January 11, 2023, the Prime Minister asked the President of the Treasury Board and the Minister of Public Services and Procurement to undertake a review of government contracts awarded to McKinsey & Company. Today, the Treasury Board of Canada Secretariat (TBS) and Public Services and Procurement Canada (PSPC) issued the following statement announcing the completion of their review and the publication of a report and action plan.
"The Government of Canada is committed to conducting procurements in a fair, open, and transparent manner and in accordance with policies, regulations, trade agreements and other applicable guidance.
"Independent audits of contracts with McKinsey found no evidence of political interference. The joint TBS and PSPC review, however, reinforced that there are always opportunities to further improve and strengthen the Government of Canada's procurement practices.
"In response, TBS and PSPC are taking steps to improve the Government of Canada's procurement practices. Areas of focus include reinforcing internal controls, policies and procedures; clarifying disclosure and official languages requirements; and strengthening guidance to departments and procurement specialists.
"TBS and PSPC have implemented several measures. Notably, TBS amended the Directive on the Management of Procurement to more clearly articulate responsibilities for senior designated officials and contracting authorities to maintain effective internal controls and comprehensive information management. The Guide to the Proactive Publication of Contracts has also been updated to strengthen support to departments in meeting their reporting requirements, including the disclosure of more information about the purpose of contracts and how suppliers were selected.
"PSPC is also updating its policy guide, processes and tools to clearly reflect its role in ensuring the integrity of the procurement process through a robust challenge function.
"In addition, a new guide to procuring professional services will help managers make informed decisions when they consider contracting to meet operational needs, including whether to procure external services and how to structure procurements. This guide is expected to be released in the summer.
"TBS and PSPC are committed to continuous improvements to maintain the integrity of the procurement process."
Quick Facts
- Departmental independent audits examined compliance of contracting processes with Treasury Board policy and departmental internal control frameworks.
- In conducting the review, TBS and PSPC considered the findings of internal audits performed by the independent internal audit function of the contracts with McKinsey in 10 departments, along with other relevant information regarding professional services procurement.
- These internal audits covered the period between January 1, 2011, and February 7, 2023. These were made publicly available on Canada.ca.
- TBS published a statement on the preliminary findings from these audits.
- Budget 2023 proposed to reduce spending on consulting, other professional services, and travel by roughly 15% of planned 2023–24 discretionary spending in these areas. The government will focus on targeting these reductions on professional services, particularly management consulting.
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Associated Links
- Review of Federal Government Contracts with McKinsey & Company
- Directive on the Management of Procurement
- Guide to the Proactive Publication of Contracts
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SOURCE Government of Canada
Contacts (media): Media Relations, Treasury Board of Canada Secretariat, Telephone: 613-369-9400, Toll-free: 1-855-TBS-9-SCT (1-855-827-9728), Teletypewriter (TTY): 613-369-9371, Email: [email protected]
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