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2000 October Report of the Auditor General of Canada

October 2000 Report—Chapter 14

Exhibit 14.9—Contract Splitting Avoided North American Free Trade Agreement (NAFTA) Requirements

CIDA's continuous learning division required consultative services to assist in the delivery of informatics training on the software packages available to staff. In April 1996, six companies were invited to send in proposals to provide individuals to deliver the training. One company won the bid to provide the services of two individuals for a one-year period at $128,400. CIDA split the winning bid into two separate contracts of $64,200 each. Each contract was extended to 31 March 1998 and the contract amounts were amended by adding $58,315 each. In April 1998, five companies were invited to send in proposals to continue providing this training. The same company again won the bid to provide the services of two individuals for a one-year period at $123,264. Again, the winning bid was split into two separate contracts of $61,632. Each contract was extended to 31 March 2000, and the contract amounts increased through amendment by $57,673 and $47,187 respectively. Our audit found that the combined contracts exceeded the NAFTA thresholds in both 1996 ($70,700) and 1998 ($80,900). CIDA's contracting staff had also reviewed the 1998 contracts and concluded that their issuance failed to meet NAFTA requirements.