‘It’s not a contract,’ Ottawa says on 81-year deal with McKinsey

Justin Trudeau’s government wanted to “correct the information” on Tuesday that a contract signed with McKinsey in 2019 would not expire until 81 years later, in 2100.

“It’s not a contract. It’s more of a supply arrangement,” said Treasury Board President Mona Fortier during question period.

She said that “no monetary agreement” binds Ottawa to the consulting firm as part of this arrangement.

“It’s more of a pre-selection. […] It’s a long-standing practice that saves the government money and time,” added Mr.me Fortier.

She said “hundreds of suppliers” have the same kind of arrangement with the government.

The day before, Bloc Québécois MP Julie Vignola mentioned this “contract” when asking a question of one of the first witnesses heard in the context of the parliamentary inquiry into the contracts awarded by Ottawa to McKinsey.

She asked Amanda Clarke, an associate professor at the School of Public Policy and Administration at Carleton University in Ottawa, what justifies, in her opinion, that an agreement is spread over so long.

“At some point in 81 years, I can’t believe we’re not able to have specialists [à l’interne] “, she commented.

Mme Clarke replied that the idea of ​​such a contract seemed “scandalous” to him. The “contract” award notice referred to by Mr.me Vignola is accessible online.

A contract of 0$

Under the heading “contracts awarded”, the notice appears and it says that the agreement was entered into for computer professional services. Next to the indication “total value of the contract”, the sum of $0 appears.

“Our government will continue to maintain the highest standards of openness, transparency and fiscal responsibility,” concluded Mona Fortier.

The explanation provided did not seem to convince Bloc MP Jean-Denis Garon. “No matter which party governs here, no matter what the voters choose, McKinsey is still going to be there. [en 2100] under contract or under arrangement—as the minister says—without any specific mandate. Is this what we want in a democracy? he launched.

The parliamentary inquiry into the contracts awarded to McKinsey, led by the Standing Committee on Government Operations and Estimates, will continue in the coming days. On Wednesday, the company’s ex-boss, Dominic Barton, will appear.

According to the most recent data shared by Public Services and Procurement Canada (PSPC), $116.8 million has been paid to McKinsey since 2015, under contracts concluded by this department.

“The contract data is a freeze frame and is subject to change,” PSPC said in a written statement last week.

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