July 30, 2026 03:40 am (IST)
Follow us:
facebook-white sharing button
twitter-white sharing button
instagram-white sharing button
youtube-white sharing button
Farmers storm Bhopal! Traffic crippled as protest over MSP intensifies | Supreme Court gives clean chit to Manmohan Singh in coal block scam case two years after death, accepts CBI closure report | Rahul Gandhi's 'student, idiot, andhbhakt' remark sparks uproar in Lok Sabha during anti-paper leak bill debate | Assam flood death toll climbs to 75; Over 3 lakh still affected as relief efforts intensify | 'You are simply useless': Kangana Ranaut hits back at CJP's Saurav Das in fresh Instagram attack | Assam floods: Death toll stays at 68 as over 5.24 lakh continue to battle deluge | 'Probe is meaningless if responsibility isn't fixed': Supreme Court slams Delhi Police over CJP protest crackdown | 'No protester will be left alone': CJP claims Centre shared FIR withdrawal copies after midnight talks | Bihar cop suspended after viral AK-47 firing video during NEET protest crackdown | After Dharmendra Pradhan's exit, 'E20 Janta Party' emerges, demands Nitin Gadkari's resignation over fuel policy
CBC

Canada govt slammed over IBM deal

| @indiablooms | May 14, 2018, at 10:45 am

Ottawa, May 13 (IBNS): Canada’s native technology firms slammed the federal government’s move of signing $500-million deal with IBM Canada Ltd. without any competitive bidding, media reports said.

"This is yet another example of how the government's procurement process favours large, multinational companies and doesn't give highly qualified companies even a fair shot to bid for these projects," said Benjamin Bergen, executive director of the Council of Canadian Innovators.

The massive deal, signed in November and running up to 2021, includes $289 million in optional additional spending, putting the potential total cost at almost $790 million.

Signed by Shared Services Canada, it's the largest sole-source deal ever signed and may be the largest non-competitive contract in federal procurement history.

This deal follows more than a year of controversy over the dysfunctional Phoenix payroll system, which was created through a separate contract with IBM Canada. The system has been criticized for paying some civil servants too much, some too little and others not at all, as well as mishandling vacation and retirement rolls. The original Phoenix deal has been amended 44 times, and increased in value this year by $36.5 million to $277 million.

“Owing to intellectual property issues relating to proprietary hardware and software, IBM is the only supplier capable of performing the work," says a November 2017 memo to Ron Parker, president of Shared Services Canada (SSC).

"The proposed contract is a legacy sustainment contract servicing existing infrastructure. SSC anticipates continued use of these products and services for the foreseeable future."

(Reporting by our Canadian bureau)

Support Our Journalism

We cannot do without you.. your contribution supports unbiased journalism

IBNS is not driven by any ism- not wokeism, not racism, not skewed secularism, not hyper right-wing or left liberal ideals, nor by any hardline religious beliefs or hyper nationalism. We want to serve you good old objective news, as they are. We do not judge or preach. We let people decide for themselves. We only try to present factual and well-sourced news.

Support objective journalism for a small contribution.