The Canadian government has imposed a seven-year prohibition on the primary contractor behind the troubled ArriveCAN app, blocking the company from all federal contracting work in the harshest penalty yet for a procurement scandal that wasted millions in taxpayer funds.
Federal procurement officials declared Friday that GC Strategies Inc. will be barred from winning government work following a review that found problems with how the company operated during the border app project.
The two-person IT consulting firm received more than $19 million for its role in developing ArriveCAN through March 2023, though the total amount may be higher. The app was designed to collect health and contact information from travelers entering Canada during COVID-19. The app’s costs ballooned to an estimated $60 million from an initial contract value of just $2.35 million.
The government said it continues to take action to “strengthen the integrity of the procurement process.”
The ban extends to real property agreements and comes after the department previously suspended GC Strategies’ security clearance and halted its participation in procurement processes.
Two other companies involved in the ArriveCAN project — Dalian Enterprises and Coradix Technology Consulting — have also been barred from government procurement opportunities.
Auditor General Karen Hogan’s report in February 2024 found that poor record-keeping made it impossible to determine the app’s exact cost. Her investigation revealed that GC Strategies was involved in developing contract requirements that were later used for a $25 million competitive contract the company ultimately won.
Related: Auditor General Launches Full Probe of GC Strategies’ $107M Government Contracts
The procurement ombudsman separately found that criteria for awarding the contract were “overly restrictive” and “heavily favoured” GC Strategies.
Founded in 2015, GC Strategies describes itself as an IT staffing firm that helps companies navigate federal procurement processes. The company, led by partners Kristian Firth and Darren Anthony, acted as a middleman, subcontracting the actual app development to other firms.
Related: Company Behind ArriveCAN Has Received $250 Million In Contracts Since Trudeau Sat In Office
The Royal Canadian Mounted Police is investigating the company and searched Firth’s home office in April. Firth has told lawmakers the investigation relates to separate allegations involving another firm.
Last year, Firth was summoned to appear before the House of Commons after refusing to answer questions at a committee hearing. He was questioned by MPs for two hours about the company’s role in the controversial app.
Hogan is currently conducting a broader audit of all government contracts awarded to GC Strategies and related companies. Her office said it is gathering information to properly scope the investigation.
The ArriveCAN controversy has become a symbol of government waste and poor procurement practices. Originally intended as a temporary pandemic measure, the app remains active for travelers to submit customs declarations.
The app’s development involved 177 versions with minimal testing documentation. In one notable failure in June 2022, approximately 10,000 travelers were incorrectly instructed to quarantine due to a software error.
The seven-year ban prevents GC Strategies from bidding on new government work until 2032, effectively ending the company’s federal contracting business.
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