July 8,2025
RED FM News Desk
The Office of the Procurement Ombud (OPO) is calling for a complete overhaul of Canada’s federal procurement system, describing it as overly complex, inefficient, and plagued by long-standing issues. Ombud Alexander Jeglic emphasized that patchwork solutions are no longer enough and proposed five key reforms to modernize the system:
Create a Chief Procurement Officer (CPO) to improve accountability and streamline decision-making.
Establish a vendor performance evaluation system to rate suppliers on quality, cost, timeliness, and communication.
Implement a single, unified set of procurement rules to reduce complexity.
Adopt artificial intelligence to improve efficiency—while ensuring ethical and transparent use.
Build a centralized procurement data portal for greater transparency and interdepartmental collaboration.
These recommendations come after serious concerns were raised about poor oversight in federal contracting, including the high-profile ArriveCan app case, which saw costs soar from $80,000 to nearly $60 million.
The report found the current system is siloed and lacks clear accountability, which leads to inefficiencies and repeated poor performance by some vendors. Experts also highlighted the need to improve Indigenous procurement and address the challenges in defence procurement, suggesting a dedicated CPO or giving contracting authority to the Department of National Defence.
While no cost-saving estimates were provided, Jeglic stressed that ensuring competition and supporting Canadian suppliers would deliver better value to taxpayers. He warned that without bold action now, the same problems will persist in the years ahead.
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