Feds hit with $30M judgment for bid rigging (Brookfield)

[Occam]

I believe most civilian LCMM in ADM(Mat) are EG06 while the military are typically MWO.

EG-06 or EL-06; on the military side occasionally you'll see a WO but most are MWO as you state.

 

[Pat in Halifax]

I wonder if the individual rewarded with a CDS commendation for that last Brookfield contract will have it revoked.
As for being cheaper, I am sorry but I cannot yet buy into this. Some have mentioned already the benefits to uniformed personnel (other duties, corrections/changes of a minor nature made on the spot etc.) The nearest example I can think of? When posted to Ottawa in Dec 2010, my HHT claim was held up for 5 months because of a receipt for a little over $4 which I later said I would 'eat' if they would process the claim, promptly being told it was too late. Like a company trying to get more money out of you, my agent kept asking for things and I would send them in (copies of hotel bills, car rental, taxi to/from airports etc) and the next day it would be something else. I finally emailed someone I know who was high up in the RMS food chain asking if they had any suggestions (I tried this with BF and they repeatedly ignored my queries.) That afternoon (early Mar 2011 now), I got a phone call from my agent telling me something was on the way via fax and could I sign a few papers and fax them back. Both my HHT and move claim (now 5 and 4 months old respectively) were cleared within 24 hours.
On the flipside, I put in an LTA for Christmas leave and in the time it took me to drop it off with the clerk and go to the heads and grab a coffee in the cafeteria as I got back to my desk, there was an email from said clerk telling me my LTA was done and monies should be deposited in the next 72 hours. Yes maybe the BF agent is cheaper but if it takes literally months to do what our own people can do in minutes (even hours or days), then it is NOT cost productive.
The only thing sad in all this is that the money from the lawsuit is going to another Relocation company and not those in uniform who were screwed over by this sinful organization. Honestly, I do not know how some of them went home and looked at themselves in the mirror at the end of the day. All this said, and I mentioned this in another thread, my agent on my return to Halifax last July was absolutely fantastic. That said too, she admitted I was her first client-she had yet to be tainted.

Pat

 

[EME101]

Another reason civilians are often considered cheaper is that whatever task they are given is their job.  While on the military side, we have time to do PT, time we need to be on parade, and additional mandated events like mess coffee breaks.  So a military worker may only work something like 5 hrs at the actual job, while the civilian does the 7.5 hrs.  Also, everytime we get posted we have to spend time learning the specifics of the new job, while the civilians often stay in the positions for a lot longer.

 

[Ostrozac]

Another reason civilians are often considered cheaper is that whatever task they are given is their job.  While on the military side, we have time to do PT, time we need to be on parade, and additional mandated events like mess coffee breaks.  So a military worker may only work something like 5 hrs at the actual job, while the civilian does the 7.5 hrs.  Also, everytime we get posted we have to spend time learning the specifics of the new job, while the civilians often stay in the positions for a lot longer.

That's a great argument for employing AS-3 and CR-3 DND civilians in our orderly rooms. That's not such a great argument for circumventing the procurement system, signing illegal contracts with a civilian company, and then cheating another company out of their fair shot at a profit.

 

[EME101]

That's a great argument for employing AS-3 and CR-3 DND civilians in our orderly rooms. That's not such a great argument for circumventing the procurement system, signing illegal contracts with a civilian company, and then cheating another company out of their fair shot at a profit.

Agreed.  The argument was focused on the above salary to salary comparison of military to civilians. 

 

[captloadie]

/tangent
Whether it is Brookfield, Envoy, Royal Lepage, or some new company, I don't think we would see much of a difference in the service. Granted there are probably some horrible BF reps (just like there are some horrible RMS clerks), but remember, they are just following a TB policy and a checklist. They aren't paid to make decisions. There would be no difference I believe if the we went back to having DND civilians or CF members running the program. Anything that was out of the ordinary would still need DCBA approval (any of you have a contentious TD claim recently). To highlight my point, what do the majority of the CF Relocation Dispute personnel do when you go to them with a complaint? They normally show you the policy, say they aren't authorized to make the decision, and forward your paperwork up to DCBA. We all ask why, but the answer is fairly simple. They are trying to ensure that the decisions are the same across the nation, and that one coordinators decision in Comox will not be more or less favourable then a decision in Greenwood. Is it right? Maybe, maybe not. If we had specialized staff who only dealt with relocations and were empowered to make decisions, things might be better. But wait, we have a contractor for that (less the empowered to make decisions part).
/tangent

 

[McG]

Looks like DND is still getting called on how it does these contracts with Royal LePage (now Brookfield).

Auditor general: Relocation contract a mess
Ottawa Citizen
Kathryn May, Postmedia News
06 May 2014

OTTAWA – A series of missteps during Public Works and Government Services’ 2009 contracting process for a $300-million annual contract to relocate federal employees ended up shutting out all competition except the company that had won the deal since 1999, concluded the auditor-general.

In his latest report, Auditor General Michael Ferguson criticized some of the decisions and actions taken by Public Works officials, which “cumulatively” caused delays and barriers that stopped would-be suppliers – other than incumbent Royal LePage Relocation Services (RLRS) – from bidding on the 2009 contract.

Ferguson’s report stopped short of calling the contract unfair, though his predecessor, Sheila Fraser, did so when she examined the 2004 relocation contract process. She concluded the process was stacked in the favour of RLRS.

Her report sparked a major lawsuit and an Ontario Superior Court judge has since concluded bureaucrats rigged the 2004 process to favour RLRS. The court ordered the government to pay an unprecedented $40 million to the losing bidder, Envoy Relocation Services.

“Decisions and actions by officials were reactive and taken cumulatively did not facilitate access and encourage competition, which resulted in limiting the response to one service provider,” Ferguson wrote. “We found no evidence to suggest that this was done intentionally.”

Ferguson’s report Tuesday on the 2009 contract is the latest chapter in one of the longest and most complicated procurement disputes in decades.

The government is the country’s biggest mover, relocating up to 20,000 military, RCMP and public servants to new postings across the country. Most of the moves are military personnel.

The Conservative government decided not to cancel the 2004 contract after Fraser’s report; instead it promised to re-tender it upon expiry in 2009.

The new 2009 contract was supposed to fix all the contracting problems that derailed the 2004 version. But it quickly ran into delays and problems when prospective bidders complained about impossibly tight deadlines that favoured RLRS – now known as Brookfield Global Relocation Services.

Ferguson noted one problem was that the procurement plan that acts as a guide for the contracting process was only approved three weeks after the RFP was issued.

He also found that the decision to issue one contract proved a roadblock to competition.  The Office for Small and Medium Sized Business had suggested breaking up the contract into separate deals for the military, RCMP and public service so that smaller firms had a shot.

Government officials knew there would probably be little domestic competition but thought they could attract some international firms. However, Ferguson noted officials knew the contract’s security and privacy requirements would deter international firms – which would have to house databases of employees being transferred in Canada.

Another big problem was time. The major deadlines for unrolling the project were missed and the RFP was issued seven month late. The report said bureaucrats knew the delay created tight timelines that would rule out companies from bidding. With the late RFP, the six months’ ramp-up the industry expected for a new supplier to be up and running was reduced to three months.

The RFP tried to open up competition among smaller firms by throwing it open to firms that handled 500 relocations – but then turned around and demanded experience in handling much larger volumes, which left smaller firms out of the running.

The RFP’s requirement that the winning bidder would have to take on 20,000 existing files also proved an obstacle to other bidders. The audit found no evidence to back the 20,000 estimate. In the end, only 7,000 files were transferred.

Incorrect business volumes were at the heart of the 2004 contract that favoured RLRS. This time, departments were supposed verify the expected volumes but Defence and Treasury Board were unable to show how they did this.

Public Works Minister Diane Finley acknowledged the importance of encouraging competition and removing possible barriers.  She said the department is examining this as it readies for the next contract.  The 2009 contract expires in December.

http://www.ottawacitizen.com/story_print.html?id=9812091&sponsor=

 

[SeaKingTacco]

MCG,

I am pretty sure that the BGRS contract is a Govt of Canada relocation contract, not just DND.

 

[PuckChaser]

MCG,

I am pretty sure that the BGRS contract is a Govt of Canada relocation contract, not just DND.

I concur. The relocation contract handles all government moves, however DND is by far the largest. This isn't a black eye for DND, its another one for our inept PWGSC procurement system.

 

[dapaterson]

I concur. The relocation contract handles all government moves, however DND is by far the largest. This isn't a black eye for DND, its another one for our inept PWGSC procurement system.

And who gives PWGSC the requirements?

 

[Tibbson]

And one look at our new travel arranging contract will show we didnt learn any lessons.  Who ever "we" are.  Getting travel arranged via their website is next to impossible but now when we phone them to make arrangements there is an additional charge to speak to a live person.  On the road and operations dictate a change to your travel?  An extra charge by the company when you call in to make the change.  Cant use their website....extra charge.  These guys may be cheaper, on the surface, then Amex but in the long run we get hosed.

As for Brookfield, I got my posting  message three weeks ago and have my first appointment with them tuesday afternoon.  That is the quickest I could get into see them and God forbid I can reach someone by phone but I've already got my contract signed and house sold. 

They sure see us coming whenever a government contract comes up.

 

[OldSolduer]

Why did we - the CF - use this service vice the "old" way?

 

[Colin Parkinson]

And one look at our new travel arranging contract will show we didnt learn any lessons.  Who ever "we" are.  Getting travel arranged via their website is next to impossible but now when we phone them to make arrangements there is an additional charge to speak to a live person.  On the road and operations dictate a change to your travel?  An extra charge by the company when you call in to make the change.  Cant use their website....extra charge.  These guys may be cheaper, on the surface, then Amex but in the long run we get hosed.

As for Brookfield, I got my posting  message three weeks ago and have my first appointment with them tuesday afternoon.  That is the quickest I could get into see them and God forbid I can reach someone by phone but I've already got my contract signed and house sold. 

They sure see us coming whenever a government contract comes up.

Yes lot's of problems with booking and the website not recognizing our e-mails. Mind you it's not as bad as the Ryder days when they would book you on a $2000 flight and the seat next to you is going for $300. I would not be surprised if it was another Adscam, about the same time as well.

 

[Transporter]

Big mistake leaving Amex... I personally never had a hitch with them all these years (though I'm sure they didn't get it right everytime).

I was told several years ago by someone in the know that Amex was prepared to give DND a free online booking tool/capability, providing everyone with the ability to do flight books directly on their desktop, but DND wouldn't accept it for "security reasons". I think the decision likely had more to do with folks within the department protecting their empires/jobs.

 

[Tibbson]

Funny, we have that now...when it works.  Mind you I've booked travel for my guys twice now only to not recieve confirmation so I call them, encuring yet another charge, only to find the booking couldn't be found and did not go through even though I have their confirmation number.  We book air travel because we have to but we do hotel abd car rental directly with the hotel or rental agency now just to avoid more cockups.