HALIFAX – Nova Scotia Well being must comply with procurement guidelines to make sure a aggressive, honest, and clear course of leads to finest worth for taxpayers’ cash, stated auditor normal Kim Adair (pictured).
Testing of six sole-sourced well being contracts exhibits Nova Scotia Well being is inappropriately utilizing various procurement and never following provincial coverage.
It’s essential to notice that the auditor normal’s considerations are usually not with the particular distributors chosen or the initiatives pursued by Nova Scotia Well being, however somewhat how various procurement was used to pick out distributors with out competitors.
Since 2020, Nova Scotia Well being has handed out billions of {dollars} in high-value various procurement contracts.
Whereas established guidelines define a aggressive course of is required for any procurement valued at over $25,000, they acknowledge exceptions are permitted for pressing, specialised or distinctive circumstances.
For 5 of the six distributors within the pattern, the seller was awarded the contract earlier than the usage of various procurement was accepted by senior administration.
“Various procurement reduces competitors and public transparency and probably discriminates in opposition to distributors whereas rising the federal government’s reliance on a single vendor,” stated Adair.
Various procurement should solely be used when particular circumstances are met, similar to, just one vendor can present what’s required; in emergencies; or to keep up compatibility with present merchandise.
Nevertheless, audit testing reveals that weak rationale was used to justify the usage of various procurement for 4 of the six distributors examined. In some instances, the scope and worth of the work was later considerably expanded.
“The shortage of aggressive bidding makes it difficult to objectively decide essentially the most certified vendor and most affordable value,” stated Adair.
Nova Scotia Well being may have to act rapidly to handle the challenges going through the province’s healthcare system, however expediency mustn’t take precedence over acceptable due diligence, nor does it justify non-compliance with procurement coverage, she stated.
As soon as the sole-sourced contracts have been awarded, the audit discovered the contract work was topic to common monitoring, however enhancements are wanted to make sure distributors ship.
The Auditor Basic makes 13 suggestions within the report, together with offering clear justification to help the usage of various procurement and outlining the steps taken to acquire the perfect worth attainable.
“Any expenditure of public funds should be made in a clear method that maximizes worth,” Adair stated.
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