The federal government’s ArriveCAN saga took another dramatic turn yesterday as GC Strategies, the primary contractor behind the controversial travel app, received a seven-year ban from all federal contracts.
This decisive action follows months of escalating scrutiny after an Auditor General report revealed the app’s costs had ballooned to nearly $59.5 million—over ten times its initial budget.
“This represents one of the longest debarment periods we’ve issued in recent memory,” confirmed Procurement Minister Anita Anand during a press conference in Ottawa. “The integrity of our procurement system demands accountability, and the findings in this case warranted our strongest response.”
The ArriveCAN app, originally developed as a pandemic measure to streamline border crossings, has been under investigation since last fall when documents revealed questionable contracting practices and alarming cost overruns.
The Canada Border Services Agency initially presented ArriveCAN as a $4.9 million project in 2020. By the time the mandatory use requirement ended in October 2023, costs had multiplied dramatically, triggering parliamentary committee hearings and public outrage.
GC Strategies, a two-person consulting firm based in Ottawa, secured the primary contract despite having no in-house developers. Instead, they subcontracted the actual programming work to various tech firms while reportedly charging substantial management fees.
“When Canadians hear about a $59 million app, they rightfully expect value for their tax dollars,” said Conservative MP Michael Barrett, who sits on the parliamentary committee that investigated the scandal. “What they got instead was a textbook case of government waste through poor oversight.”
The Auditor General’s investigation uncovered troubling procurement practices, including verbal-only approvals, missing documentation, and insufficient oversight of contractor performance.
CBSA officials who testified before Parliament admitted they couldn’t provide detailed breakdowns of how the money was spent, leading to accusations of negligence from opposition parties.
For regular Canadians who used the app during pandemic travel, the news validates frustrations many experienced with the platform.
“I remember trying to upload my vaccination information three times before a flight to Toronto last year,” said Montreal resident Elise Tremblay. “Knowing now how much we paid for something that barely worked is frankly infuriating.”
The seven-year ban prevents GC Strategies from bidding on any federal contract until 2032, essentially removing the company from consideration for government work for the foreseeable future.
Legal experts suggest this could prompt litigation from the firm, which has maintained it followed all procurement rules and delivered what was requested.
“This type of debarment is devastating for a contractor whose primary client is the federal government,” explained Marie LeBlanc, a procurement law specialist with Grenier & Associates. “While the government has this authority, we often see challenges when penalties are this severe.”
The Treasury Board Secretariat has also announced new procurement guidelines designed to prevent similar situations in the future. These include mandatory technical reviews for IT projects exceeding $5 million and stronger documentation requirements for all contract modifications.
Public opinion polling by Abacus Data suggests the ArriveCAN controversy has damaged Canadians’ trust in government digital services, with 64% of respondents expressing decreased confidence in Ottawa’s ability to deliver technology projects on budget.
The ArriveCAN debacle represents a costly lesson in government technology procurement. While the app itself has been decommissioned, its legacy continues in policy reforms and political fallout that will likely affect federal technology projects for years to come.
For many observers, the most troubling aspect remains that a relatively straightforward border app—something comparable to what private companies develop for far less—somehow commanded a price tag that could have funded entire healthcare initiatives in smaller communities.
As Parliament prepares for its summer recess, opposition parties have signaled they’ll continue pressing for accountability from senior officials who oversaw the project. Meanwhile, everyday Canadians are left wondering how many other government technology projects might be suffering from similar oversight failures.
