SO MUCH HAS CHANGED
SINCE 1945…

but not the Government of Canada’s approach
to procuring security guard services.

SO MUCH HAS CHANGED SINCE 1945…

but not the Government of Canada’s approach to procuring security guard services.

SO MUCH HAS CHANGED SINCE 1945…

but not the Government of Canada’s approach to procuring security guard services.

It’s easy to keep doing the same thing, even if it no longer makes sense.

It’s easy to keep doing the same thing, even if it no longer makes sense

CREATING A VIRTUAL MONOPOLY

Since 1945, the Government of Canada has granted a single Canadian security company, the Corps of Commissionaires, a “right of first refusal” (RFR) on all federal government contracts for guard services, creating a virtual monopoly in exchange for their promise to hire as many Veterans as they can to be part of their workforce – a number that has been dwindling over time.

Number of veterans employed by Commissionaires

CREATING A VIRTUAL MONOPOLY

Since 1945, the Government of Canada has granted a single Canadian security company, the Corps of Commissionaires, a “right of first refusal” (RFR) on all federal government contracts for guard services, creating a virtual monopoly in exchange for their promise to hire as many Veterans as they can to be part of their workforce – a number that has been dwindling over time.

Number of veterans employed by Commissionaires

Increasingly, it is non-Veterans that benefit from the RFR. Today less than 1% of Canada’s veterans get work because of the Right of First Refusal (RFR) arrangement.

Increasingly, it is non-Veterans that benefit from the RFR. Today less than 1% of Canada’s veterans get work because of the Right of First Refusal (RFR) arrangement.

After nearly eight decades, it is past time for the Government of Canada to update the RFR and how it procures security guard services for federal buildings.

After nearly eight decades, it is past time for the Government of Canada to update the RFR and how it procures security guard services for federal buildings.

Canada’s Veterans deserve better

Providing Veterans with well-coordinated supports that meet their needs and help ease their transition to civilian life is the least a grateful nation can do.
The world — and Veterans — have completely changed since 1945. It is time for supports to Veterans to catch up.

Canada’s Veterans deserve better

Providing Veterans with well-coordinated supports that meet their needs and help ease their transition to civilian life is the least a grateful nation can do.
The world — and Veterans — have completely changed since 1945. It is time for supports to Veterans to catch up.

Canada’s Veterans deserve better

Providing Veterans with well-coordinated supports that meet their needs and help ease their transition to civilian life is the least a grateful nation can do.
The world — and Veterans — have completely changed since 1945. It is time for supports to Veterans to catch up.

Canadians Agree!

According to a recent Ipsos survey…

  • When it comes to ways the Government of Canada could help veterans transition to civilian life…
    • Support for mental health programs for veterans trumps every other measure tested.
    • 94% support the measure, including 73% who strongly support it.
    • Programs encouraging businesses to hire veterans and incentives in Government contracts for hiring veterans occupy a second tier of support.
    • Over four in five (84% and 80%) support each of these measures.
    • The idea of directing all federal government security service contracts to one company, in exchange for a commitment that they will hire as many veterans as possible, is in distant third place.
    • Supported by 56% of respondents.
  • Canadians are three times as likely to say there are better ways for the Government to support veterans in their transition to civilian life (77%) than to say that the RFR is the best way for the Government to support veterans in their transition to civilian life (23%).

Canadians Agree!

According to a recent Ipsos survey…

  • When it comes to ways the Government of Canada could help veterans transition to civilian life…
    • Support for mental health programs for veterans trumps every other measure tested.
    • 94% support the measure, including 73% who strongly support it.
    • Programs encouraging businesses to hire veterans and incentives in Government contracts for hiring veterans occupy a second tier of support.
    • Over four in five (84% and 80%) support each of these measures.
    • The idea of directing all federal government security service contracts to one company, in exchange for a commitment that they will hire as many veterans as possible, is in distant third place.
    • Supported by 56% of respondents.
  • Canadians are three times as likely to say there are better ways for the Government to support veterans in their transition to civilian life (77%) than to say that the RFR is the best way for the Government to support veterans in their transition to civilian life (23%).

A matter of fairness

Because the RFR model does away with competition, the federal government pays more than it should for guard services, 15% above other security providers’ average rates. This costs taxpayers between $45 and $50 million extra per year and benefits less than 1 percent of Canada’s Veterans [1] (rather than giving all veterans more support, choices and opportunities). These are funds that could be reallocated to support all Canadian Veterans in their transition to civilian life.

A matter of fairness

Because the RFR model does away with competition, the federal government pays more than it should for guard services, 15% above other security providers’ average rates. This costs taxpayers between $45 and $50 million extra per year and benefits less than 1 percent of Canada’s Veterans [1] (rather than giving all veterans more support, choices and opportunities). These are funds that could be reallocated to support all Canadian Veterans in their transition to civilian life.

Government pays 15%  more than average rates

Government pays 15%  more than average rates

Government pays 15%  more than average rates

Again, Canadians agree!

According to a recent Ipsos survey…

  • Nine in ten Canadians say that fair competition among all Canadian security services companies (89%), an open and transparent contracting process (88%), and the best service at the best price for the Canadian taxpayer (87%) are important considerations in awarding contracts for guard services.

Again, Canadians agree!

According to a recent Ipsos survey…

  • Nine in ten Canadians say that fair competition among all Canadian security services companies (89%), an open and transparent contracting process (88%), and the best service at the best price for the Canadian taxpayer (87%) are important considerations in awarding contracts for guard services.

The choice should belong to Veterans themselves

Why not incentivize all security companies to hire Veterans?

The choice which has been in the hands of Commissionaires for the last eight decades (“do we want this work?”) properly belongs to Veterans themselves.

Commissionaires does not have a monopoly on being a good employer to Veterans. Multiple Canadian security companies now offer employment and career development opportunities to Veterans at competitive rates and have ‘Veteran preferred’ hiring policies.

Rather than giving one private security company the RFR, why not incentivize all Canadian security companies to hire Veterans? 

The Government of Canada will be putting in place a National Veterans Employment Strategy, with a goal of ensuring all Veterans find meaningful work on release from the Canadian Armed Forces, leveraging skills and qualifications acquired while in service. Part of this strategy should be updating the RFR to give them more options and opportunities.

By opening up Government of Canada contracts for guard services and allowing all Canadian security companies to bid in a transparent, equitable contracting process, the Government will be putting choices and opportunities into the hands of Veterans themselves, where they belong.

The choice should belong to Veterans themselves

Why not incentivize all security companies to hire Veterans?

The choice which has been in the hands of Commissionaires for the last eight decades (“do we want this work?”) properly belongs to Veterans themselves.
Commissionaires does not have a monopoly on being a good employer to Veterans. Multiple Canadian security companies now offer employment and career development opportunities to Veterans at competitive rates and have ‘Veteran preferred’ hiring policies.

Rather than giving one private security company the RFR, why not incentivize all Canadian security companies to hire Veterans? 

The Government of Canada will be putting in place a National Veterans Employment Strategy, with a goal of ensuring all Veterans find meaningful work on release from the Canadian Armed Forces, leveraging skills and qualifications acquired while in service. Part of this strategy should be updating the RFR to give them more options and opportunities.

By opening up Government of Canada contracts for guard services and allowing all Canadian security companies to bid in a transparent, equitable contracting process, the Government will be putting choices and opportunities into the hands of Veterans themselves, where they belong.

[1] According to Commissionaires website, it has 4,500 Veteran employees which is 0.73% of Canada’s total number of Veterans, which, according to Veterans Affairs Canada is estimated at 617,800, as of March 31, 2021.

From Subcommittee on Veterans Affairs of the Standing Senate Committee on National Security and Defence.

Quotes:

  • Vincent Robitaille, Senior Director, Professional Services Procurement Directorate, Acquisitions Branch, Public Works and Government Services Canada:

    Our understanding is that the cost is approximately 15 per cent more than what the private sector provides.

  • Pablo Sobrino, Associate Assistant Deputy Minister, Acquisitions Branch, Public Works and Government Services Canada:

    The Corps provided approximately 97 per cent of these services under the National Master Standing Offer.

  • From an internal presentation entitled Corps of Commissionaires Right of First Refusal (RFR) for Guard Services, June 2020, by Levent Ozmutlu, Director General, Acquisitions Program, Public Services and Procurement Canada, obtained through Access to Information:

    Total annual spend = $350M