Canadian tech leaders who have built apps for large corporate clients have described Ottawa’s $54-million price tag for ArriveCan as outrageous, explaining that in their experience, most apps are built for less than $1-million.
They also question why the government did not turn directly to a Canadian app developer rather than 23 separate contractors and an unknown number of additional subcontractors.
“The people in the Canadian technology community that I’ve talked to are outraged, and I’ve talked to a lot today,” said Neil Selfe, a technology investment banker, and founder and chief executive officer of INFOR Financial Group Inc.
A Globe and Mail analysis of federal contracts related to the ArriveCan app found total spending on it is on pace to exceed $54-million this year, which is more than double what the government recently said was spent.
Further, the review found that the Ottawa-area company that received the most federal work on the app – GCstrategies – has fewer than five employees. The company told The Globe it is working with more than a dozen government departments, and delivers on its contracts through the use of more than 75 subcontractors. However, the company and the government say the identities of subcontractors cannot be revealed because of confidentiality provisions in federal procurement rules.
The company also worked on the COVID Alert app, which was meant to assist with contact tracing, but has been shut down. That app had a reported price tag of $20-million.
ArriveCan was designed as a tool for travellers to upload their mandatory health information in relation to COVID-19 measures. It was expanded to allow users to answer customs and immigration questions up to 72 hours before flying into Canada.
While the Canada Border Services Agency (CBSA) initially said five companies received contracts to work on the app, it later revealed the work involved 27 contracts to 23 unique companies.
Public Safety Minister Marco Mendicino, who is responsible for the CBSA, defended ArriveCan’s cost on Thursday.
“It was an essential tool,” he said, adding that it is now voluntary and will be used for customs declarations. “It is an investment that will carry forward for those who want to use it.”
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