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Procurement Ombud Finds Widespread 'Bait-and-Switch' in Federal Contracts

The report warns PSPC’s move to corporate capacity reviews could sideline smaller and Indigenous suppliers.

Overview

  • Released Oct. 16, the review found proposed personnel were replaced in roughly 53% of examined federal professional services contracts.
  • In about 41% of contracts, departments did not verify that replacement workers met or exceeded the qualifications of those originally proposed.
  • The Ombud issued four recommendations to tighten controls and scheduled a follow-up review in two years to assess implementation across departments.
  • PSPC’s revised arrangements focus on corporate capacity and past performance rather than named individuals, a change the report says removes the tactic but risks overlooking the quality originally bargained for.
  • PSPC challenged critical passages as speculative, yet the Ombud retained them and noted his office cannot determine supplier intent or whether cases amount to fraud.