SLOPPY CONTRACTING POLICIES DON’T DELIVER VALUE FOR MONEY
NDP leader Todd Hardy says he is disturbed by an internal Yukon government report that sharply criticizes its contracting processes and policies for not being competitive, fair or transparent.
"The NDP has said for years that this government does not know how to complete a project on time and on budget," Hardy said. "This report supports that claim and points to a lack of appropriate policies and guidelines, a lack of monitoring activities and a lack of training for managers."
The 43-page Report on the Audit of Contracts was prepared by the Government Audit Services Branch. Although it is dated May 13, 2008, the government did not post it on its website until this week.
"According to this report, the government’s contracting activities fail to serve the public interest," Hardy added. "Of the 136 contracts reviewed in this document, an incredible 36 did not demonstrate value for money. I find this shocking."
The report calls on the government to revamp its contract regulations and contracting directives because they fail to provide sufficient guidance for managers as to how they should carry out their contracting activities. It also says the roles and responsibilities of all key player involved in the contracting process should be clearly described and communicated.
The report found the existing framework for administering contracts is so riddled with deficiencies that it fails to promote sound practices in contracting that could result in the circumvention of the rules.
It says too many sole-sourced contracts exceed the threshold limits as prescribed in government policy. It found very few cases where contracts had clearly fulfilled all of the compliance requirements under the existing rules. It found many were signed and approved after their stated commencement dates, had incomplete statements or work, did not contain standard terms or conditions, or where the standard terms and conditions existed, they were not enforced.
"This report says very clearly that not enough effort has been made in recent years to improve the policy framework for awarding and administering contracts and this is resulting in a great waste of public money by this government," Hardy said.
"This report echoes many of the same concerns raised by the Auditor General of Canada in her report on the contracting practices of this government as well as another internal report on the audit of contributions that came out in January 2007."