What is GC Strategies? A closer look at the company linked to the ArriveCan controversy
CBC
GC Strategies, the largest contractor to work on the ArriveCan app project, is facing heightened scrutiny after the auditor general cited excessive reliance on contractors as a major factor contributing to the project's ballooning costs.
After releasing her report on the controversial project, Auditor General Karen Hogan told MPs on the House public accounts committee that the government "paid too much" for the app.
Hogan estimates the project cost at roughly $59.5 million. She also noted in her report that the total cost is "impossible to determine" due to poor financial record-keeping.
Here's what we know about the company embroiled in the ArriveCan controversy.
The company is a two-person IT staffing firm that bills itself as being able to help companies navigate the federal government's procurement process.
Founded in 2015, the firm is headed by two partners, Kristian Firth and Darren Anthony.
As a staffing firm, GC Strategies acts as a go-between for the government and third-party tech companies. Firth described himself and his partner as "IT recruiters" in an appearance before the House of Commons government operation committee in October 2022.
"We have built a very strong network of best-in-class talent, which allows us to help our clients find the team they want," he said.
For ArriveCan, GC Strategies took an initial contract from the government and subcontracted the development of the app to IT firms.
"To be clear, we did not build ArriveCan. We were approached to provide a team for consideration to fulfil certain ArriveCan requirements. We are, however, very proud of the team we gave the government of Canada, whom they managed and gave direction to throughout the project," Firth said during his committee appearance.
It's not clear how much GC Strategies was paid for ArriveCan.
The auditor general estimates the company received $19.1 million. But that estimate only includes money paid to the company up to March of last year. Officials from the auditor general's office told CBC News on background that the company could have received payments after that date.
During his October 2022 committee testimony, Firth argued that the money the company receives from the government doesn't all stay with the company. He said some of the funds would be paid to subcontractors and the firm would keep somewhere between 15 to 30 per cent as a commission.
Hogan said in her report that GC Strategies was awarded a number of contracts in relation to ArriveCan. The company initially was given a $2.35 million sole-source contract in April 2020 and was awarded a $25 million contract in May 2022.
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