Federal Procurement Ombud Alexander Jeglic has released the Office of the Procurement Ombud’s (OPO) Annual Report for 2023-24, highlighting persistent procurement issues and proposed key reforms to enhance federal procurement practices.
The report outlined several recurring challenges in public procurement, including favouritism towards certain bidders, overly restrictive evaluation criteria, and a lack of documentation that undermines transparency. Jeglic emphasized that long-standing issues, such as the complexity of federal procurement and gaps in contract information made available to the public, continue to undermine fairness and openness.
In his report, Jeglic proposed two major initiatives to directly address these challenges. The first is the introduction of a government-wide Vendor Performance Management (VPM) Program, which would monitor supplier performance across federal departments and regions. The goal of this program is to incorporate past supplier performance into future contract award decisions. The second recommendation is the creation of a Federal Chief Procurement Officer position to oversee the implementation of procurement policies and lead professional development initiatives.
The Ombud is also pushing for key regulatory changes to strengthen the OPO’s authority. Jeglic called for the power to recommend compensation to suppliers exceeding 10 percent of a contract’s value in cases of erroneous contract awards. He also sought the authority to compel federal departments to provide necessary documentation for reviews and investigations, and the ability to handle complaints related to contracts awarded under the Procurement Strategy for Indigenous Businesses (PSIB).
The annual report also included key statistics: OPO handled 582 procurement-related cases in 2023-24, up from 474 the previous year. It received 62 written complaints and launched five reviews of formal complaints from suppliers regarding certain federal contracts. The office also conducted five procurement practice reviews, including two ad hoc reviews on the ArriveCan application and contracts awarded to McKinsey & Company.
“There is no sugarcoating the fact that changes are needed,” said Jeglic in a statement. “Recent reviews on government procurement practices have further exposed many of the long-standing problems my office has been highlighting year after year. It is time to start to address these issues directly to make sure they do not impact our future the way they have impacted our past.”