Terminating The Contract

Now there's a good one. The Government of Canada's main procurement body, Public Works and Government Services Canada has proven itself beyond inept. What's the cardinal rule in contracting for work to be accomplished on your behalf to ensure that unearned trust hasn't resulted in an optical illusion and an empty yet quite costly bag? Proffer a down payment in trust on work yet to be done or products provided to order, but pay in full only when the contract has been fulfilled and satisfaction seen to have been delivered.

Is not this the kind of simple and sage advice given out here, there and everywhere, to protect consumers against the potential of unethically, illicitly being taken advantage of? And here is the federal government's own federal services and goods-procurement agency taken to the cleaner's. Losing money big-time because of a lack of diligence, awareness, investigation, competence and expertise in the very department of business acquisition that they are held to excel in. Slovenly work, sad to say.

If we were speaking of an individual being left in the lurch by a company promising a package of durable goods expertly made to order and the guarantee of service back-up suddenly finding themselves holding a worthless piece of paper as receipt of having handed over the entire cost of goods and services, we'd think them rank amateurs, and fairly oblivious to their own best interests; not to be trusted with their own business affairs, nor anyone else's.

In steps Public Works and Government Services Canada, contracting with a presumably German company of good repute with branch manufacturing in Turkey. For a proposed total of $1.3-million to provide equipment for the Canadian navy's submarine fleet (and that sad and sorry fleet represents yet another tragic-comedy of substantial proportions) no less than $1-million was paid out; the balance presumably to be fully settled on delivery of said goods. Deliverable in 2009.

We are now in the year 2013. The money lost, needless to say, is only taxpayer-funded, so not seeping miserably out of one identifiable magnate's pocket the issue is, well, forgettable. "Contractor has not delivered on key deliverables and cannot be contacted. Neither (Public Works and Government Services Canada) nor DND has been able to reach the contractor since January 2012."

Oops, and oh dear, the transportable acoustic range presumably being built at the company's facilities in Turkey designed to support submarine operations, nowhere to be found. And the money? Well ... gone, of course. Applied Radar and Sonar Technologies was signed to an agreement with PWGSC to provide the transportable acoustic range, and was paid the greater part of the cost to produce it. Is anyone shrugging at this point and muttering that since the subs are marginally operable it hardly matters?

Kinda, since it's taxpayers' funding gone out in a sad wisp of nothingness. An intrepid journalist has done his homework, even if PWGSC had not, to look up the company's website. Which website fulsomely lists the capabilities of the firm in maritime surveillance with the notation: "Our services do not end after distribution, installation and testing of the equipment. We keep close contact to our clients and can provide an individual after-sales support."

That's not all: the website explains and gives details on the product: "The Mobile Accoustic (sic) Range is platform for measurement of radiated noise and sea ambient noise. It is developed and successful (sic) tested on surface ships and submarines. Mobile Accustion (sic) Range is easy to deploy." Not very literate, is it? Looks and sounds like confidence work, doesn't it? A shady, fly-by-night outfit whose goal is to entice, entrap, embezzle.

Department of National Defence officials were unable to respond to the query whether it had adequately checked the credentials of Applied Radar and Sonar Technologies before the contract was awarded to them. Evidently when the bid was put out to tender three companies had responded. And the winner was a company incapable of spelling its own product, but obviously DND and PWGSC had enough confidence in it as a reliable source to fund that product.

Now they know that the company is no longer registered in Germany and no record can be discovered of the firm having a Turkish connection. Letters sent to the company's German address and a Turkish address where the equipment was expected to be manufactured were undeliverable. Prompting PSGSC and DND to conclude they (the taxpayer) have been bilked. Cue that shoulder-shrug again.

"Following a default by the contractor, Public Works and Government Services Canada terminated the contract", reads an email of explanation sent out by a DND spokesperson. So now, that's that. Issue taken care of. And the company in questions, judging by its website is still actively advertising its sonar products to other trustingly unaware dupes prospective customers.