Round Table on The Proposed Code of Round Table on The Proposed Code of Conduct For Government Conduct For Government Procurement Procurement Mr. Ron Lunau Ms. Phuong Ngo Ms. Catherine Beaudoin Gowling Lafleur Henderson LLP - Ottawa Procurement Group www.governmentcontracting.ca
23
Embed
Round Table on The Proposed Code of Conduct For Government Procurement Mr. Ron Lunau Ms. Phuong Ngo Ms. Catherine Beaudoin Gowling Lafleur Henderson LLP.
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Round Table on The Proposed Code Round Table on The Proposed Code of Conduct For Government of Conduct For Government
ProcurementProcurement
Mr. Ron Lunau
Ms. Phuong Ngo
Ms. Catherine Beaudoin
Gowling Lafleur Henderson LLP - Ottawa
Procurement Group
www.governmentcontracting.ca
Consultation on the draft Code of Consultation on the draft Code of Conduct for ProcurementConduct for Procurement
Question 1: Question 1: Is the purpose of the Is the purpose of the Code of Conduct for Code of Conduct for Procurement Procurement clear? If not, please explain.clear? If not, please explain.
Question 2: Question 2: Does the Does the CodeCode as currently formulated as currently formulated provide adequate information to help guide your provide adequate information to help guide your actions? If not, please provide suggestions on other actions? If not, please provide suggestions on other tools you would like to see.tools you would like to see.
Question 3: Question 3: Do you have suggestions about how to Do you have suggestions about how to better promote the better promote the CodeCode??
Amendment No. 021 to RFP:Amendment No. 021 to RFP:
“ “It is acknowledged by Canada that third parties were It is acknowledged by Canada that third parties were involved in assisting Canada in the preparation of involved in assisting Canada in the preparation of documentation that forms part of this bid package. As documentation that forms part of this bid package. As Canada has taken the steps necessary to ensure the Canada has taken the steps necessary to ensure the integrity of the bidding process, these third parties are integrity of the bidding process, these third parties are not prohibited from submitting a bid. Bidders, in not prohibited from submitting a bid. Bidders, in submitting a proposal for this requirement, acknowledge submitting a proposal for this requirement, acknowledge
these facts and signify their acceptance of the process.”these facts and signify their acceptance of the process.”
The Washington Post, November 24, 2004The Washington Post, November 24, 2004 ““Rumsfeld: Druyun Had Little SupervisionRumsfeld: Druyun Had Little Supervision
By Thomas E. RicksBy Thomas E. Ricks
Washington Post Staff WriterWashington Post Staff Writer
Defense Secretary Donald H. Rumsfeld blamed an Air Force Defense Secretary Donald H. Rumsfeld blamed an Air Force procurement scandal on high turnover in top management positions, procurement scandal on high turnover in top management positions, which he said reduced the amount of ‘adult supervision’ of major which he said reduced the amount of ‘adult supervision’ of major weapons contracts over the past decade.weapons contracts over the past decade.
Cautioning that his view isn’t yet ‘definitive’, Rumsfeld said at a Cautioning that his view isn’t yet ‘definitive’, Rumsfeld said at a Pentagon news briefing yesterday that he had recently been looking Pentagon news briefing yesterday that he had recently been looking into the case of former Air Force acquisition official Darleen A. into the case of former Air Force acquisition official Darleen A. Druyun, who last month was sentenced to nine months in prison after Druyun, who last month was sentenced to nine months in prison after admitting to granting favors in contracts to aerospace giant Boeing admitting to granting favors in contracts to aerospace giant Boeing Co. before going to work there.”Co. before going to work there.”
Wall Street Journal, February 18, 2005Wall Street Journal, February 18, 2005
““Former Boeing Finance Chief Gets 4-Month Prison SentenceFormer Boeing Finance Chief Gets 4-Month Prison Sentence
Michael Sears, Boeing Cos. former Chief Financial Officer, was Michael Sears, Boeing Cos. former Chief Financial Officer, was sentenced to four months in prison for holding improper job talks with sentenced to four months in prison for holding improper job talks with Darleen Druyun, a former senior Air Force procurement official, while Darleen Druyun, a former senior Air Force procurement official, while she still had sway over contracts involving the company.she still had sway over contracts involving the company.
Ms. Druyun, who also pleaded guilty, is currently serving a nine-Ms. Druyun, who also pleaded guilty, is currently serving a nine-month prison term at a minimum-security facility in Marianna, Fla., month prison term at a minimum-security facility in Marianna, Fla., after she admitted giving Boeing special treatment on billions of after she admitted giving Boeing special treatment on billions of dollars in high-profile contracts while negotiating jobs for herself and dollars in high-profile contracts while negotiating jobs for herself and family members.”family members.”
Roundtable Topic 1Roundtable Topic 1
Responsibilities of vendors in regards to public Responsibilities of vendors in regards to public servantsservants
• Is the Code sufficiently clear in defining a vendor’s Is the Code sufficiently clear in defining a vendor’s responsibilities?responsibilities?
CBC News, September 12, 2005CBC News, September 12, 2005
““Inquiry Judge: ‘People Disgraced Themselves’ In Toronto ScandalInquiry Judge: ‘People Disgraced Themselves’ In Toronto Scandal
The judge appointed to probe a computer-leasing scandal in Toronto The judge appointed to probe a computer-leasing scandal in Toronto criticized participants for greed, mismanagement and lying.criticized participants for greed, mismanagement and lying.
Justice Denise Bellamy investigated how a $40 million computer contract Justice Denise Bellamy investigated how a $40 million computer contract between the City of Toronto and MFP Financial Services swelled to over between the City of Toronto and MFP Financial Services swelled to over $100 million.$100 million.
‘Some people disgraced themselves, failed in their duty to the City, lied, ‘Some people disgraced themselves, failed in their duty to the City, lied, put self-interest first, or simply did not do their jobs,’ she wrote.put self-interest first, or simply did not do their jobs,’ she wrote.
In reference to testimony from the city’s once powerful budget chief, In reference to testimony from the city’s once powerful budget chief, Bellamy said that Tom Jakobek ‘drifted from lie to lie in a performance Bellamy said that Tom Jakobek ‘drifted from lie to lie in a performance worthy of Pinocchio, his phenomenal memory conveniently failed him’ worthy of Pinocchio, his phenomenal memory conveniently failed him’ about a cash payoff he had received from an MFP salesperson.”about a cash payoff he had received from an MFP salesperson.”
CBC News, May 5, 2006CBC News, May 5, 2006
““Sponsorship Player Brault Sentenced to 30 MonthsSponsorship Player Brault Sentenced to 30 Months
Advertising executive Jean Brault – one of the key players Advertising executive Jean Brault – one of the key players in the federal sponsorship scandal – was sentenced to 30 in the federal sponsorship scandal – was sentenced to 30 months in jail on Friday for defrauding the federal months in jail on Friday for defrauding the federal government. … He admitted in March to filing bogus government. … He admitted in March to filing bogus invoices for $1.6 million for work of little or no value.”invoices for $1.6 million for work of little or no value.”
The Quebec Court of Appeal has overturned the conditional The Quebec Court of Appeal has overturned the conditional sentence given to Montreal advertising executive Paul sentence given to Montreal advertising executive Paul Coffin and ordered him to serve 18 months in jail for his role Coffin and ordered him to serve 18 months in jail for his role in the sponsorship scandal. in the sponsorship scandal.
A lower court had given Coffin two years less a day, to be A lower court had given Coffin two years less a day, to be served in the community, and ordered him to give lectures served in the community, and ordered him to give lectures to university business students on ethics after he pleaded to university business students on ethics after he pleaded guilty to 15 counts of fraud involving $1.5 million. …”guilty to 15 counts of fraud involving $1.5 million. …”
CBC News, June 19, 2006CBC News, June 19, 2006
““Guité Sentenced to 3 ½ Years in PrisonGuité Sentenced to 3 ½ Years in Prison
Chuck Guité, the former civil servant who ran the federal Chuck Guité, the former civil servant who ran the federal sponsorship program, was sentenced Monday to 3 ½ years sponsorship program, was sentenced Monday to 3 ½ years in prison for his conviction on fraud charges.”in prison for his conviction on fraud charges.”
Roundtable Topic 2Roundtable Topic 2
Responsibilities of public servantsResponsibilities of public servants
• Will the Code Will the Code be be broad enough so that public broad enough so that public servants will be more accountable?servants will be more accountable?
New York Times, Friday February 23, 2007New York Times, Friday February 23, 2007
““COMPANY NEWS; AIR FORCE BARS DEALS WITH BOEING COMPANY NEWS; AIR FORCE BARS DEALS WITH BOEING SPACE UNITSSPACE UNITS
The space units of Boeing were suspended by the Air Force The space units of Boeing were suspended by the Air Force yesterday from seeking military contracts after the Air Force yesterday from seeking military contracts after the Air Force concluded there ‘serious violations of federal law in Boeing’s use concluded there ‘serious violations of federal law in Boeing’s use of documents from Lockheed Martin to win a $1.5 billion rocket of documents from Lockheed Martin to win a $1.5 billion rocket contract. The Air Force also stripped seven launches from contract. The Air Force also stripped seven launches from Boeing’s schedule, won in a 1998 competition to develop a rocket Boeing’s schedule, won in a 1998 competition to develop a rocket for military satellites. … ‘Our inquiry into Boeing found that they for military satellites. … ‘Our inquiry into Boeing found that they were in possession of thousands of pages of Lockheed Martin were in possession of thousands of pages of Lockheed Martin proprietary documents during the 1998 selection,’ Peter Teets, Air proprietary documents during the 1998 selection,’ Peter Teets, Air Force under secretary, said in a statement.”Force under secretary, said in a statement.”
Interim Administrative Agreement Interim Administrative Agreement Between The Boeing Company And Between The Boeing Company And The United States Department of The The United States Department of The Air ForceAir Force
Employees responsible to comply with Ethics and Business Employees responsible to comply with Ethics and Business Conduct ProgramConduct Program
All employees to sign Employee Certification to comply with All employees to sign Employee Certification to comply with code of conductcode of conduct
Compliance Assessment Team to establish robust compliance Compliance Assessment Team to establish robust compliance processesprocesses
Compliance Review Board to receive reports from Compliance Compliance Review Board to receive reports from Compliance Assessment Team and ensure risk areas identified, prioritized Assessment Team and ensure risk areas identified, prioritized and followed upand followed up
Interim Administrative Agreement Interim Administrative Agreement Between The Boeing Company And Between The Boeing Company And The United States Department of The The United States Department of The Air ForceAir Force
Promulgation of Marketing Policies and ProceduresPromulgation of Marketing Policies and Procedures Issue a procedure on Procurement Integrity Issue a procedure on Procurement Integrity Ethics/Compliance Training Program for new Ethics/Compliance Training Program for new
employeesemployees Revision of offer letters re: other companies’ proprietary Revision of offer letters re: other companies’ proprietary
informationinformation Boeing Law Department to conduct investigations of Boeing Law Department to conduct investigations of
potential violationspotential violations
CanWest News Service, March 5, 2006CanWest News Service, March 5, 2006
““The Scandal That Went Away”The Scandal That Went Away”
An “obscure” government employee, Frank Brazeau, with An “obscure” government employee, Frank Brazeau, with Consulting and Audit Canada (CAC)Consulting and Audit Canada (CAC) suspended after suspended after contracting irregularities were uncovered by auditors for KPMG, contracting irregularities were uncovered by auditors for KPMG, including contracts improperly let to the family company of including contracts improperly let to the family company of Quebec MP David Smith. Quebec MP David Smith.
““Evidence of manipulation of procurement process, including Evidence of manipulation of procurement process, including
apparent manipulation of evaluations”, as well as “evidence that apparent manipulation of evaluations”, as well as “evidence that in three cases contractors were directed to submit false or in three cases contractors were directed to submit false or misleading invoices”misleading invoices”
PWGSC cancelled the two contracts handled by Smith’s family PWGSC cancelled the two contracts handled by Smith’s family company and dismantled the CACcompany and dismantled the CAC
It was discovered later by PWGSC thatIt was discovered later by PWGSC that• Smith and Brazeau were cousins and grew up togetherSmith and Brazeau were cousins and grew up together• Brazeau – secretary of Smith’s Liberal riding associationBrazeau – secretary of Smith’s Liberal riding association
Evidence of “contract-splitting” found where bureaucrat found to Evidence of “contract-splitting” found where bureaucrat found to
have split a contract into chunks of $25,000 or less to avoid have split a contract into chunks of $25,000 or less to avoid mandatory open competitionmandatory open competition
Bureaucrats at CAC suspended and disciplined.Bureaucrats at CAC suspended and disciplined.
Roundtable Topic 3Roundtable Topic 3
Accountability of VendorsAccountability of Vendors
Should a vendor be held accountable for everything Should a vendor be held accountable for everything its employees do?its employees do?
Roundtable Topic 4Roundtable Topic 4
Are there other issues not addressed in the proposed Are there other issues not addressed in the proposed Code? Code?
Do you want to make submissions to PWGSC?Do you want to make submissions to PWGSC?
What does this mean to vendors?What does this mean to vendors?
• Existing remedies set out in existing legislation Existing remedies set out in existing legislation and policiesand policies
PLUSPLUS
Breaches of the Code (cont’d)Breaches of the Code (cont’d)
• Failure to limit enquiries and communications Failure to limit enquiries and communications during bid solicitation period solely to identified during bid solicitation period solely to identified contracting authority:contracting authority:
• may result in bid disqualificationmay result in bid disqualification
Breaches of the Code (cont’d)Breaches of the Code (cont’d)
False certification of compliance with the False certification of compliance with the requirements of the Code will be developed and requirements of the Code will be developed and implemented to include:implemented to include:• Bid inclusionBid inclusion• Termination of contractTermination of contract• Exclusion from future workExclusion from future work• Sanctions imposed in relation to severity of Sanctions imposed in relation to severity of
conductconduct
Visit our website at Visit our website at www.governmentcontracting.cawww.governmentcontracting.ca