Ottawa-area IT firms charged with bid rigging government contracts
Last Updated: Tuesday, February 17, 2009 | 4:25 PM ET
CBC News
Criminal charges have been laid against 14 individuals and seven Ottawa-area companies for allegedly rigging bids for $67 million worth of federal government information technology contracts, the Competition Bureau announced Tuesday.
The bureau, an independent agency responsible for enforcing the Competition Act and other consumer legislation, said it has found evidence that several IT services companies co-ordinated their bids in an illegal scheme to collectively secure the contracts, leaving other would-be bidders out in the cold.
The bureau alleges the actions of the accused companies allowed them to maximize the rates at which services were provided.
"Bid rigging is a serious criminal offence that harms buyers of products and services, competing businesses and ordinary Canadians, who ultimately pay the bills," Melanie Aitken, interim commissioner of competition at the bureau said in a statement. "The bureau will not hesitate to take action against bid riggers when it uncovers evidence that the law has been broken."
The bureau said it has evidence that the accused "secretly agreed in advance on the technical and financial proposals they would submit."
Investigation began in 2005
The bureau said its investigation into the bid rigging began in 2005, after being contacted by Public Works and Government Services Canada officials concerned about bidding processes. The investigation focused on 10 contracts, eight of which were worth a total of $62 million and related to IT services for the Canada Border Services Agency.
The remaining two contracts were for services provided to Public Works and Government Services Canada and Transport Canada.
The following companies are alleged to have participated in the bid rigging:
- TPG Technology Consulting Ltd.
- Spearhead Management Canada Ltd.
- Donna Cona Inc.
- The Devon Group Ltd.
- Brainhunter Inc.
- Tipacimowin Technology Inc.
- Nortak Software Ltd.
The accused may be eligible for leniency in sentencing in exchange for their co-operation, the bureau said. The charges have not been proven in court.
With files from the Canadian PressShare Tools
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