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Your tax dollars at work: alleged governmental overpayment for maintenance work.

PROFAC has lucrative contract for maintenance of 320 federal government buildings
PROFAC has lucrative contract for maintenance of 320 federal government buildings
Credits: 
nccwatch.org

How much does it cost to install a new doorbell in the Public Works department's building ( Portage III in Gatineau)? $1,000.41

How much does it cost to install six new recessed lighting fixtures in the ceiling of the same building?

$5,266.80,

The cost of two new plants (with pots) for a civil servant office: $1948.72

"Supplementary" costs for cleaning the offices of a Minister's and his deputy: $18,650.87 every six months....

These are just a few of the examples taken from copies of invoices obtained by Hugo deGrandpré of La Presse newspaper under the Access to information Act involving minor repair work done right here in the Outaouais region.  His full story is available here. Seemingly, the US Army and the Pentagon do not have a monopoly on $10,000 toilet seats or $2,000 hammers...

The invoices are from PROFAC, a subsidiary of SNC-LAVALLIN. The contract is for management and maintenance, repairs and real-property improvements of less than $200,000 of 320 federal government buildings across the country for a total of 3 million square meters.

The contract awarded initially in 2004 was extended to 2011 and recently to 2013; a further extension to 2015 appears possible. According to SNC-LAVALLIN, the total costs could reach 5.9$ billion....

CONTRACT IS AT MARKET PRICES.

According to La Presse,  France Langlois of Public Works states that prices paid represent the best  "quality-price" ratio for the government and both company and government officials state that prices and profit margin are competitive and represent market prices for goods and services provided to the government. Hmm... Could this mean everybody agrees to charge more when selling to the government?

By the way, costs are higher because work had to be done at night, which usually doubles the labor costs; I guess that changing doorbells and delivering plants in the daytime would be too disruptive and greatly affect the productivity of civil servants.

Sheila Fraser, please take note.

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Ottawa Tax Matters Examiner

Currently president of Outaouais Taxes Consultants Inc., Jacques is familiar with all tax matters but specializes in commodity taxes. His...

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