Canada:
2021: Safe Vaccine Rollout, Supply Chain Integrity, Spending Accountability To Dominate Government Agenda
Capital Perspectives – Newsletter
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Procurement at all levels of government will remain in a state
of flux as we move in to 2021.
As all countries quickly discovered, despite multinational trade
and co-operation agreements, those with production facilities for
personal protective equipment (PPE) or in-country suppliers of raw
materials for production locked them down; those without were left
scrambling for supplies and inventory. Governments world-wide
invoked emergency buying protocols and national security exceptions
from trade agreement rules, and quickly moved to sole-sourcing or
limited tendering scenarios.
Everyone soon came to understand the definition of
“critical infrastructure” extended far beyond our
traditional view – food security and basic medical and
cleaning supplies were an essential element in maintaining critical
infrastructure integrity and functionality. We expect that this
reset will remain a primary influencer of government contracting in
the present and the near future.
Although some governments signalled an intention to return to
normal procurement practices in mid-2020, this changed with the
second wave of COVID infections. Many remain in “emergency
response” mode, particularly with respect to goods and
services related to PPE, medical services and supplies and, more
recently, vaccines.
Government resources will continue to be strained by the
unpredictable nature of the pandemic, as they seek to balance the
management of pandemic response programs with the competing and
equally important need return to regular program and service
offerings in the “new normal” work environment.
We anticipate a greater focus on critical infrastructure
procurements and supply-chain integrity assessments to ensure
secure domestic sources of supply, or at least, increased
stockpiling capacity. Suppliers should anticipate that supply-chain
integrity assessments will become a more common part of the
procurement process – suppliers of essential goods and
services may see a requirement that their supply chain be located
within Canada.
The requirement to assure value for money, combined with the
cost of the government response to the pandemic, will necessarily
mean spending cuts and re-evaluation of programs.
Suppliers who have contracted with governments as part of the
pandemic response should be mindful that the government will be
brought to account for its spending and will need to validate its
actions. One thing is certain – spending accountability will
be subject to audit.
Countries such as the US and the UK have already begun the
auditing process. In Canada, the Auditor General has identified
that her list of priorities does include the government’s PPE
acquisitions for health care workers, Canada’s food supply and
a more detailed look at the Canada Emergency Response Benefit
(CERB).
Until the vaccine rollout is well underway and there exists
solid data on the long-term immunity provided by the various
vaccines, governments will remain focused on and preoccupied with
overburdened health care systems, establishing a reliable vaccine
supply and implementing vaccine strategies. Governments will be
mindful that these strategies must appropriately and ethically
balance the health and safety of Canadians with the need to return
the nation’s economy to full functionality in step with the
rest of the world.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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