NOTE: Versions of this story also ran in the National Post, the Saskatoon Star Phoenix, the Edmonton Journal and the Calgary Herald

 

PUBLICATION:  The Ottawa Citizen

DATE:  2002.01.26

EDITION:  Final

SECTION:  News

PAGE:  A1 / Front

BYLINE:  Tim Naumetz

SOURCE:  The Ottawa Citizen

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Private sector to run troubled gun registry: Storage of sensitive personal information will be handed over to private contractor

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The federal government is handing over the administration and operation of its costly gun licensing and registration system to the private sector.

A spokeswoman for the Public Works Department confirmed yesterday that officials are now evaluating bids for a 15-year contract to take over processing applications for firearms licensing and registration, telephone call centres and the information technology systems involved in the program.  "I don't know if they are negotiating with anyone; I know they are evaluating the proposals," said Fran Gershberg, a Public Works communications officer.

The Canadian Firearms Centre, in conjunction with police forces and firearms officers, will retain control over the sensitive core functions of investigating, approving, denying or revoking firearms licences and registrations, according to a copy of the detailed 300-page request for contract proposals.  All other work, including the processing of sensitive personal information contained in gun licence and registration applications and storing it, will be done by the successful bidder.

The government circulated the request for proposals last September through November with no public announcement of its plans. Bidding for the contract is open to companies from any country that is member of the World Trade Organization, as well as U.S. or Mexican companies under the North American Free Trade Agreement, Ms. Gershberg said.

Canadian Alliance MP Garry Breitkreuz obtained a copy of the request for proposals, and other documents concerning the plan, through the Access to Information Act.  An assistant to Mr. Breitkreuz, Dennis Young, said the decision to contract out the firearms program to the private sector demonstrates what a costly failure it has been for the federal government.

Mr. Young, who said handing the system over to a private firm poses significant risks to the privacy rights of two million gun owners who have applied for or received licences, added that sources within the firearms program have privately said the contract value is at least $300 million.

Ms. Gershberg said she did not know the possible value of the contract, and she could not disclose other details, such as the names of the bidders or even the number of bidders. David Austin, chief spokesman for the Canadian Firearms Centre within the Department of Justice, did not return telephone calls yesterday.

Treasury Board officials told a Senate committee last November the program cost $541 million from 1995 to last year.  With a further $148 million expected to be spent by the end of March this year, the total is $689 million over the first seven years of the program.  During the same time period, the government collected $44 million in licence fees, the officials told the committee.

Former justice minister Anne McLellan confirmed last year that the government had contracted out part of the program's processing work to a private firm, BDP Business Data Services Ltd. of Toronto.  She described described it only as "outsourcing" some services for efficiency and savings.  Successive contracts with BDP have so far cost the government $8.5 million, according to documents Mr. Breitkreuz obtained.

Wording in the request for proposals for a contract to administer the program suggests the government is sensitive to the criticism it may face over the privacy issue.  "The security and privacy of Canadian Firearms Program related data is of the utmost importance," the document says.  "The existing system and network provides a high degree of security for the police and citizen data it contains. The (contracted) service providers new technology solution must provide the same or better level of security."

The successful bidder will not be permitted access to the Canadian Police Information Centre, vital to the integrity of the gun licensing and registration system, or any other sensitive government database, the document says.

 

BDP Business Data Services Limited

Data and Image Capture Services Contract

By Garry Breitkreuz, MP – Updated: January 23, 2002

 

Customer: Department of Justice Canada – Canadian Firearms Centre

Contract Number                                               Award Value               Award Date

1.   19162-990181/001/XG                              $4,800,555                 Jul 18, 2000

2.   19162-990181/001/XG                              $     48,805                  Oct 12, 2000

3.   19162-990181/001/XG                              $   963,282                  Oct 12, 2000

4.   19162-990181/001/XG                              $     48,791                  Dec 18, 2000

5.   19162-990181/001/XG                              $    464,994                 Jan 02, 2001

6.   19162-990181/001/XG                              $1,014,119                  Feb 16, 2001

7.   19162-990181/001/XG                              $    111,260                  Feb 21, 2001

8.   19162-990181/001/XG                              $        7,223                   Mar 23, 2001

9.   19162-990181/001/XG                              $   336,665                    Apr 27, 2001

10. 19162-990181/001/XG                              $    216,669                   Jun 22, 2001

11. 19162-990181/001/XG                              $   421,715                    Jul 06, 2001

12. 19162-990181/001/XG                              $   321,088                     Jul 18, 2001

13. 19162-990181/001/XG                              $   349,967                    Aug 22, 2001

14. 19162-990181/001/XG                              $8,560,000                   Nov 20, 2001

 

NOTE: 1 to 14 for a total value of $17,665,133

 

Source: Contracts Canada documents from Library of Parliament – January 22, 2002

EXCERPT FROM BDP CONTRACT – STATEMENT OF WORK – OVERVIEW

 

Source: Access to Information Act Request received from Public Works and Government Services Canada – ATI File: A-2001-00303/cl

Establish, support and operate application processing, data image capture services in support of the CFC as may be required between August 1, 2000 and March 31, 2001.  These services are required to complement the systems development capability of the CFC located in the National Capital Region and to augment the processing capacity of existing regional processing centres located in Miramichi, New Brunswick and Montreal, Quebec.

The services required under this tender will support the processing of applications for firearms Possession Only Licences and for Possession and Acquisition Licences that must be submitted by Canadians as required under the Firearms Act.

To effectively accommodate the volume of applications expected in the months leading up to the deadline, the CFC is seeking to augment its current application processing and data capture capacity by entering into a contract with a provider of data and image capture services.  In addition, the contracted provider is required to use data capture application software currently completing development and testing.  This software and the computer technology required to operate it will be provided, installed and maintained by the CFC for the duration of the contract period. 

Application processing and data capture services are anticipated to encompass:

The CFC will provide:

Training and other support required to enable the selected bidder to be self sufficient in recruiting and training subsequent staff to meet the volume of work.