40% of military contracts non-competitive: report

Last Updated: Monday, June 11, 2007 | 12:29 PM ET

CBC News

Ottawa awarded more than 40 per cent of its military contracts over the last year without fully competitive bidding, and the value of these contracts has doubled over the past two years, says a report released Monday.

The report by the left-leaning Canadian Centre for Policy Alternatives found more than $16 billion in major military equipment contracts had a "limited tendering process."

The centre relied on publicly available information from a database of federal contracts awarded by the Department of Public Works and Government Services on behalf of the Department of National Defence.

The report also slammed Defence Minister Gordon O'Connor for his work as a lobbyist for 28 firms, including five of the world's top 10 defence contractors, "almost all seeking government contracts during the period just prior to his appointment as defence minister."

"This report raises the alarm on the use of public dollars, and the need for greater transparency and federal accountability in military contracting," executive director Bruce Campbell said in a news release.

The report's authors urged the government today not to sign any new military contracts valued at more than $100 million pending reports by the auditor general and the Commons Standing Committee on National Defence, expected by the end of the year.

They also urged that ministers involved in defence contracts, especially the defence minister, should wait at least five years after leaving the department before accepting work with government contractors.

The issue of defence procurement has been in the news since the Conservatives announced last year $17 billion in new equipment spending.