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Government pays $35M to end relocation contract dispute

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Government pays $35M to end relocation contract dispute
Published on: November 23, 2014

Ottawa Citizen

The Conservative government paid $35 million to quietly settle a lawsuit over the handling of bids for a relocation deal that an Ontario Superior Court judge assailed as “outrageous” and rigged by bureaucrats to favour the winning bidder.

The Public Accounts show payments went to Envoy Relocation Services last year for “settlement of claim for missed financial opportunities” from the three departments: the RCMP, National Defence and Treasury Board.

The Integrated Relocation Program costs the government about $300 million a year to relocate employees to new postings — not including moving costs, which are covered by another contract. The government relocates between 15,000 and 20,000 federal employees a year, with the military accounting for 85 per cent of those moves.

Envoy was the losing bidder for the 2004 contract. The firm took the government to court, successfully arguing bureaucrats “turned a blind eye” to the rigging of the 2004 relocation contract to…

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Written by Major Marcus Brauer

November 24, 2014 at 20:42

Posted in Uncategorized

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