Contracting for Goods and Services—Northwest Territories
Most contracts for goods and services were awarded fairly and openly
Ottawa, 2 June 2009—In the majority of cases, three departments that account for most of the contracting in the Government of Northwest Territories followed the Government’s rules and awarded contracts in a fair and open manner, says the Auditor General of Canada, Sheila Fraser, in her Report issued to the Northwest Territories Legislative Assembly today. The audit looked at a random sample of 40 contracts from each of the departments of Public Works and Services, Health and Social Services, and Transportation.
“Being fair and transparent in awarding contracts enhances suppliers’ access to Government business, encourages competition, and helps the Government get best value in its purchasing of goods and services,” said Ms. Fraser.
The sample of contracts examined in the audit included 53 sole-source contracts valued at $14.1 million and 67 competitive contracts valued at $11.4 million. The audit found that the majority of both types of contract awards were in accordance with contracting regulations.
However, the audit also found that once the contracts had been awarded, the departments made a large number of errors or contravened basic controls in administering them. For example, in some cases, work began before a contract was issued; and departments paid some contractors before certifying that the goods and services had been received. While no single type of error was pervasive, one or more types of error were found in 57 percent of the contracts examined.
The audit found that the Government’s contracting directives and guidance are dispersed through many documents and sources, making it more difficult for government employees to access government rules and to be aware of all components of the contracting process.
“We have noted various areas for improvement in contract management. The Government agrees with our recommendations,” said Ms. Fraser.
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“Contracting for Goods and Services—Northwest Territories” is available on the Office of the Auditor General of Canada website.
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