OTTAWA - The Canadian government has imposed a seven-year ban on GC Strategies Inc., the largest contractor involved in the ArriveCan app project. Public Services and Procurement Canada announced that the company has been deemed "ineligible" following an assessment of its conduct. This decision comes after the department suspended GC Strategies' security status last year. The auditor general reported that the company received over $19 million for its work on the app.

The ArriveCan app was launched in April 2020 to track health and contact information for individuals entering Canada during the COVID-19 pandemic. It also aimed to digitize customs and immigration declarations. However, a report by Canada's Auditor General, Karen Hogan, highlighted significant issues with the government's record-keeping and its reliance on external contractors. This led to the project's costs soaring to $60 million, far exceeding the initial contract value of $2.35 million.

On Monday, Hogan is expected to present an audit that will examine whether the contracts awarded to GC Strategies and other companies were in line with applicable policies and provided good value for taxpayers. Public Services and Procurement Canada stated that the government is committed to enhancing the integrity of the procurement process.

In addition to GC Strategies, two other companies involved in the ArriveCan project, Dalian Enterprises and Coradix Technology Consulting, have also been barred from participating in government procurement opportunities.

GC Strategies did not directly develop or manage the ArriveCan app but was responsible for assembling a team to complete certain aspects of the project. Last year, GC Strategies partner Kristian Firth was ordered to appear before the House of Commons after he refused to answer questions during a committee hearing. Firth faced intense questioning from Members of Parliament for two hours, although Liberal MPs opted out of questioning after a doctor's note recommended he not appear due to mental health concerns.

The government continues to take steps to ensure accountability and transparency in its procurement processes.