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In Ottawa's rush to buy PPE, companies with little or no experience got some of the biggest contracts – CBC.ca

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4 years ago

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This story is part of The Big Spend, a CBC News investigation examining the unprecedented $240 billion the federal government handed out during the first eight months of the pandemic.

The federal government awarded a $371-million contract to secure personal protective equipment — one of the largest medical supply deals in its history — to a small company headquartered in a house in suburban Ottawa that had no apparent prior experience in PPE procurement.

Proline Advantage Inc.’s tender submission was one of more than 26,000 received by the government through its BuyandSell.gc.ca portal after it put out a call to suppliers last March for help procuring PPE.

Of those thousands of submissions, a number of lucrative contracts went to low-profile companies that pivoted to the PPE market, seeing opportunity in the mad dash to secure supplies in the early stages of the COVID-19 pandemic.

In the case of Proline Advantage Inc., the government says the company delivered the goods and fulfilled the obligations of its contract by August, coincidentally the same month Proline’s PPE procurement website went live.

The company’s headquarters is owned by its two directors, Mike Caron and Chantal Beauchamp. Caron is also listed as a partner in a nutritional supplement company called Max Q and is the founder and director of Portions Master, a company that sells supplements and a product called the Skinny Plate. Available on Amazon, the Skinny Plate is a plastic dish with dividers designed to help limit portion sizes.

Caron declined the CBC’s request for an interview, providing an emailed statement instead.

“Our company is experienced in supply chain management and has a proud track record of sourcing products of various types from around the world,” Caron wrote.

“Like many firms, we were able to quickly pivot our business, and leverage our international sourcing expertise to answer the government’s call and address the immediate and pressing need to provide PPE to front-line medical professionals.”

In total, the federal government has spent just over $6.1 billion on what it describes as “a broad range of equipment and supplies from domestic and international suppliers to combat COVID-19,” not including vaccines.

As of Oct. 15, gowns were the biggest-ticket item on the list — accounting for 29 per cent of the overall amount, at nearly $1.8 billion.

Proline Advantage Inc.’s contract of $371,318,000 accounted for almost 21 per cent of that.

In addition to gowns, Proline’s contract included about $17.5 million for other protective clothing such as shoe and boot covers, and disposable overalls.

WATCH | The ‘Wild West’ early days of the scramble for PPE:

CBC News tracked some of the billions of dollars the federal government spent on personal protective equipment during the pandemic and found the early days were tumultuous and two large contracts went to companies that seemingly had no pre-pandemic experience procuring PPE. 2:19

The size of the contract, and the fact it’s at the top of the list posted by Public Services and Procurement Canada, has drawn media attention and raised some eyebrows among Conservative MPs and some supply chain experts.

“The largest medical supply contract in Canadian history was given to Proline Advantage for medical gowns,” Conservative MP Pierre Paul-Hus said in a meeting of the government operations committee last month. “I want to know whether or not this company is well established in the medical field.”

“This company is a small business and ensured that their gowns were made available as soon as possible by renting the largest plane in the world until all of their gowns were delivered,” responded Anita Anand, minister of public services and procurement.

“This company stepped up at the beginning of the crisis when this country had no gowns, gloves, masks and the like. We need to respect the ability of small and large businesses across this country to step up for Canadians.”

Anand’s deputy minister, Bill Matthews, pointed out that the company had “a history of importing medical goods into Canada.”

More stories in this series:

In all, 26 contracts were awarded to 23 different suppliers for more than 132 million medical gowns.

In some cases, finding out more about the companies involved is a challenge.

MuFactor Ltd., for example, received a contract worth $257 million, also to procure gowns. The company is registered in Alberta, with its headquarters listed as a house in northwest Calgary. Searches of import databases show MuFactor has a history of importing furniture. Very little other information is available about the company — no contact information online, no email, no phone number.

CBC News has asked the government about the status of the MuFactor contract and is awaiting its response.

How the process worked

“What I’ve seen in my work over the last eight months … there’s been a lot of opportunistic organizations, distributors that don’t have any experience in procuring health care, PPE and equipment, that have kind of popped up,” said Fraser Johnson, an expert on supply chain management at Western University’s Ivey Business School.

“From a procurement standpoint, if you’re going to write contracts for several billions of dollars, and in these cases, tens of millions of dollars, you want to make sure that you know what the background of the company is.”

That vetting process should assess whether a company is financially stable; what expertise it brings to the table; and the cost and quality of the products it can buy and how quickly it can deliver, he said.

Prof. Fraser Johnson of Western University’s Ivey Business School says his research found many companies that didn’t have experience in health-care procurement entered the sector to try to secure contracts. (Ivey Business School)

In a statement to CBC News, Public Services and Procurement Canada says potential suppliers were required to provide manufacturers’ test results and certifications, and the Public Health Agency of Canada was responsible for validating those documents. Financial capability assessments were also performed, and delivery schedules were validated and confirmed, the statement says.

Delivery of the PPE is validated and quality assurance tests are performed on site by the Public Health Agency of Canada, the government says.

‘This was akin to a war footing’

The speed and sheer size of the PPE procurement was in response to a desperate need in the early stages of the pandemic.

“There was concern we didn’t have sufficient domestic supply,” said Dr. Sandy Buchman, who was head of the Canadian Medical Association when the COVID-19 crisis began last spring.

“For example, I was told locally by the leadership in a Toronto hospital that they were concerned that they had a two-day supply of PPE at the beginning of the pandemic. So, obviously, things were very thin at the time.

“There was a sense from government that they were scrambling to find PPE wherever they could.”

Established PPE suppliers watched newcomers pour into the market.

“There were literally tens of thousands of new entrants,” said David Welsh, CEO of Edmonton-based Primed Medical Products, a company with 25 years of experience procuring and manufacturing a range of PPE.

Welsh, whose company was awarded $93 million in government PPE contracts, says Ottawa did an excellent job of securing enormous amounts of PPE at a time when it was in huge demand around the world.

“But, yes, it was the Wild West. Decisions had to be made more quickly than normal. And the level of due diligence had to be shortened,” he said.

Necessarily so, say some experts, because of the fast-moving, highly volatile situation at the time.

“This was akin to a war footing here, given the severity of the event,” said Vikas Mehrotra, a business professor at the University of Alberta.

Vikas Mehrotra, a finance professor at the University of Alberta, says the early days of the pandemic were ‘akin to a war footing.’ (Aaron Saltzman/CBC)

Mehrotra said the government had to act quickly because other countries would be chasing the same PPE supplies and there was concern the world would be cut off from PPE manufacturers, most of which are based in China.

“The purpose was to make sure that in case we get shut off from the global supply chain, we still have our own equipment to deal with the crisis,” said Mehrotra.

In that sense, he said, the $6-billion government PPE procurement operation was an overwhelming success, regardless of who filled the orders.

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The #1 Skill I Look For When Hiring

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2 days ago

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September 17, 2024

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File this column under “for what it’s worth.”

“Communication is one of the most important skills you require for a successful life.” — Catherine Pulsifer, author.

I’m one hundred percent in agreement with Pulsifer, which is why my evaluation of candidates begins with their writing skills. If a candidate’s writing skills and verbal communication skills, which I’ll assess when interviewing, aren’t well above average, I’ll pass on them regardless of their skills and experience.

 

Why?

 

Because business is fundamentally about getting other people to do things—getting employees to be productive, getting customers to buy your products or services, and getting vendors to agree to a counteroffer price. In business, as in life in general, you can’t make anything happen without effective communication; this is especially true when job searching when your writing is often an employer’s first impression of you.

 

Think of all the writing you engage in during a job search (resumes, cover letters, emails, texts) and all your other writing (LinkedIn profile, as well as posts and comments, blogs, articles, tweets, etc.) employers will read when they Google you to determine if you’re interview-worthy.

 

With so much of our communication today taking place via writing (email, text, collaboration platforms such as Microsoft Teams, Slack, ClickUp, WhatsApp and Rocket.Chat), the importance of proficient writing skills can’t be overstated.

 

When assessing a candidate’s writing skills, you probably think I’m looking for grammar and spelling errors. Although error-free writing is important—it shows professionalism and attention to detail—it’s not the primary reason I look at a candidate’s writing skills.

 

The way someone writes reveals how they think.

 

  • Clear writing = Clear thinking
  • Structured paragraphs = Structured mind
  • Impactful sentences = Impactful ideas

 

Effective writing isn’t about using sophisticated vocabulary. Hemingway demonstrated that deceptively simple, stripped-down prose can captivate readers. Effective writing takes intricate thoughts and presents them in a way that makes the reader think, “Damn! Why didn’t I see it that way?” A good writer is a dead giveaway for a good thinker. More than ever, the business world needs “good thinkers.”

 

Therefore, when I come across a candidate who’s a good writer, hence a good thinker, I know they’re likely to be able to write:

 

  • Emails that don’t get deleted immediately and are responded to
  • Simple, concise, and unambiguous instructions
  • Pitches that are likely to get read
  • Social media content that stops thumbs
  • Human-sounding website copy
  • Persuasively, while attuned to the reader’s possible sensitivities

 

Now, let’s talk about the elephant in the room: AI, which job seekers are using en masse. Earlier this year, I wrote that AI’s ability to hyper-increase an employee’s productivity—AI is still in its infancy; we’ve seen nothing yet—in certain professions, such as writing, sales and marketing, computer programming, office and admin, and customer service, makes it a “fewer employees needed” tool, which understandably greatly appeals to employers. In my opinion, the recent layoffs aren’t related to the economy; they’re due to employers adopting AI. Additionally, companies are trying to balance investing in AI with cost-cutting measures. CEOs who’ve previously said, “Our people are everything,” have arguably created today’s job market by obsessively focusing on AI to gain competitive advantages and reduce their largest expense, their payroll.

 

It wouldn’t be a stretch to assume that most AI usage involves generating written content, content that’s obvious to me, and likely to you as well, to have been written by AI. However, here’s the twist: I don’t particularly care.

 

Why?

 

Because the fundamental skill I’m looking for is the ability to organize thoughts and communicate effectively. What I care about is whether the candidate can take AI-generated content and transform it into something uniquely valuable. If they can, they’re demonstrating the skills of being a good thinker and communicator. It’s like being a great DJ; anyone can push play, but it takes skill to read a room and mix music that gets people pumped.

 

Using AI requires prompting effectively, which requires good writing skills to write clear and precise instructions that guide the AI to produce desired outcomes. Prompting AI effectively requires understanding structure, flow and impact. You need to know how to shape raw information, such as milestones throughout your career when you achieved quantitative results, into a compelling narrative.

So, what’s the best way to gain and enhance your writing skills? As with any skill, you’ve got to work at it.

Two rules guide my writing:

 

  • Use strong verbs and nouns instead of relying on adverbs, such as “She dashed to the store.” instead of “She ran quickly to the store.” or “He whispered to the child.” instead of “He spoke softly to the child.”
  • Avoid using long words when a shorter one will do, such as “use” instead of “utilize” or “ask” instead of “inquire.” As attention spans get shorter, I aim for clarity, simplicity and, most importantly, brevity in my writing.

 

Don’t just string words together; learn to organize your thoughts, think critically, and communicate clearly. Solid writing skills will significantly set you apart from your competition, giving you an advantage in your job search and career.

_____________________________________________________________________

 

Nick Kossovan, a well-seasoned veteran of the corporate landscape, offers “unsweetened” job search advice. You can send Nick your questions to artoffindingwork@gmail.com.

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Politics likely pushed Air Canada toward deal with ‘unheard of’ gains for pilots

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2 days ago

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September 16, 2024

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MONTREAL – Politics, public opinion and salary hikes south of the border helped push Air Canada toward a deal that secures major pay gains for pilots, experts say.

Hammered out over the weekend, the would-be agreement includes a cumulative wage hike of nearly 42 per cent over four years — an enormous bump by historical standards — according to one source who was not authorized to speak publicly on the matter. The previous 10-year contract granted increases of just two per cent annually.

The federal government’s stated unwillingness to step in paved the way for a deal, noted John Gradek, after Prime Minister Justin Trudeau made it plain the two sides should hash one out themselves.

“Public opinion basically pressed the federal cabinet, including the prime minister, to keep their hands clear of negotiations and looking at imposing a settlement,” said Gradek, who teaches aviation management at McGill University.

After late-night talks at a hotel near Toronto’s Pearson airport, the country’s biggest airline and the union representing 5,200-plus aviators announced early Sunday morning they had reached a tentative agreement, averting a strike that would have grounded flights and affected some 110,000 passengers daily.

The relative precariousness of the Liberal minority government as well as a push to appear more pro-labour underlay the prime minister’s hands-off approach to the negotiations.

Trudeau said Friday the government would not step in to fix the impasse — unlike during a massive railway work stoppage last month and a strike by WestJet mechanics over the Canada Day long weekend that workers claimed road roughshod over their constitutional right to collective bargaining. Trudeau said the government respects the right to strike and would only intervene if it became apparent no negotiated deal was possible.

“They felt that they really didn’t want to try for a third attempt at intervention and basically said, ‘Let’s let the airline decide how they want to deal with this one,'” said Gradek.

“Air Canada ran out of support as the week wore on, and by the time they got to Friday night, Saturday morning, there was nothing left for them to do but to basically try to get a deal set up and accepted by ALPA (Air Line Pilots Association).”

Trudeau’s government was also unlikely to consider back-to-work legislation after the NDP tore up its agreement to support the Liberal minority in Parliament, Gradek said. Conservative Leader Pierre Poilievre, whose party has traditionally toed a more pro-business line, also said last week that Tories “stand with the pilots” and swore off “pre-empting” the negotiations.

Air Canada CEO Michael Rousseau had asked Ottawa on Thursday to impose binding arbitration pre-emptively — “before any travel disruption starts” — if talks failed. Backed by business leaders, he’d hoped for an effective repeat of the Conservatives’ move to head off a strike in 2012 by legislating Air Canada pilots and ground crew to stick to their posts before any work stoppage could start.

The request may have fallen flat, however. Gradek said he believes there was less anxiety over the fallout from an airline strike than from the countrywide railway shutdown.

He also speculated that public frustration over thousands of cancelled flights would have flowed toward Air Canada rather than Ottawa, prompting the carrier to concede to a deal yielding “unheard of” gains for employees.

“It really was a total collapse of the Air Canada bargaining position,” he said.

Pilots are slated to vote in the coming weeks on the four-year contract.

Last year, pilots at Delta Air Lines, United Airlines and American Airlines secured agreements that included four-year pay boosts ranging from 34 per cent to 40 per cent, ramping up pressure on other carriers to raise wages.

After more than a year of bargaining, Air Canada put forward an offer in August centred around a 30 per cent wage hike over four years.

But the final deal, should union members approve it, grants a 26 per cent increase in the first year alone, retroactive to September 2023, according to the source. Three wage bumps of four per cent would follow in 2024 through 2026.

Passengers may wind up shouldering some of that financial load, one expert noted.

“At the end of the day, it’s all us consumers who are paying,” said Barry Prentice, who heads the University of Manitoba’s transport institute.

Higher fares may be mitigated by the persistence of budget carrier Flair Airlines and the rapid expansion of Porter Airlines — a growing Air Canada rival — as well as waning demand for leisure trips. Corporate travel also remains below pre-COVID-19 levels.

Air Canada said Sunday the tentative contract “recognizes the contributions and professionalism of Air Canada’s pilot group, while providing a framework for the future growth of the airline.”

The union issued a statement saying that, if ratified, the agreement will generate about $1.9 billion of additional value for Air Canada pilots over the course of the deal.

Meanwhile, labour tension with cabin crew looms on the horizon. Air Canada is poised to kick off negotiations with the union representing more than 10,000 flight attendants this year before the contract expires on March 31.

This report by The Canadian Press was first published Sept. 16, 2024.

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Federal $500M bailout for Muskrat Falls power delays to keep N.S. rate hikes in check

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3 days ago

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September 16, 2024

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HALIFAX – Ottawa is negotiating a $500-million bailout for Nova Scotia’s privately owned electric utility, saying the money will be used to prevent a big spike in electricity rates.

Federal Natural Resources Minister Jonathan Wilkinson made the announcement today in Halifax, saying Nova Scotia Power Inc. needs the money to cover higher costs resulting from the delayed delivery of electricity from the Muskrat Falls hydroelectric plant in Labrador.

Wilkinson says that without the money, the subsidiary of Emera Inc. would have had to increase rates by 19 per cent over “the short term.”

Nova Scotia Power CEO Peter Gregg says the deal, once approved by the province’s energy regulator, will keep rate increases limited “to be around the rate of inflation,” as costs are spread over a number of years.

The utility helped pay for construction of an underwater transmission link between Newfoundland and Nova Scotia, but the Muskrat Falls project has not been consistent in delivering electricity over the past five years.

Those delays forced Nova Scotia Power to spend more on generating its own electricity.

This report by The Canadian Press was first published Sept. 16, 2024.

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