Law Times

LAW TIMES / MAY 12/19, 2008 NEWS PAGE 5 Department addressing recommendations Continued from page 4 drafting legislation and regulations, and nego- tiating or drafting all other legal documents, "such as contracts, agreements, etc." The audit, which included interviews with departmental managers and directors, a survey of regional staff, tests to see if contracts were being split to avoid rules for competitive bid- ding, and the sample analysis of 50 headquar- ters contracts. The sample included contracts from fiscal years 2004-05 and 2005-06. The value of all contracts awarded at Justice Department headquarters was $21.6 million during the 2004-05 fiscal year and $26.9 million in 2005-06. The audit included an executive summary that stated the department made "little head- way" following a 2001 audit that was also critical of Justice contracting procedures. That audit found "contracting files were missing key documents; that deliverables in contracts were poorly defined; and that many contracts risked employer-employee relationships." A March 2007 report on the department's civil litigation, which covered 139 contracts at a value of $2.8 million for both fiscal years. Another category for the legislative services response to the latest audit said the deputy minister had restricted signing authorities un- til "such time as the contracts management control framework is in place." But although the report said the depart- ment had completed a list of internal changes to improve contracting, it had not yet devel- oped controls to "properly monitor" compli- ance with contracting regulations. "The department continues to work to address the recommendations of the audit," Girouard tells Law Times. A table listing the categories of contracts examined in the audit included a category for branch covered 210 contracts at a total value of $3.1 million for the two fiscal years. Policy sector accounted for 1,204 contracts totalling $13.7 million over the two years, while the largest category was corporate services, which accounted for 1,951 contracts with a value totalling $14.5 million. All contracts valued over $25,000 must be tendered, except in the case of contracts to provide legal services. "Where the services of outside legal counsel are required, the government contracts regulations provide that the regulations do not apply to contracts for legal services (i.e. legal agent appoint- ments) and that the minister of Justice has exclusive legal authority to enter into these contracts," Girouard says. "As such, all legal agents are selected and appointed by the minister of Justice." A senior Ottawa lawyer says the depart- ment is having difficulty hiring top-notch le- gal help from the private sector because its low fees can't match the competitive rates partners and associates receive in large legal firms. The top Justice Department rates are $200 an hour for civil matters and $82 an hour for federal prosecutions. Girouard says the department's reten- tion of legal agents is "very good" and other pay methods are available. The Law Society of Upper Canada requires at least three quotes for con- tracts or recommending use of outside counsel. LT THINK BIG. WIN BIG. Access quantum services that cover all of the cases on point and tell you instantly what damages you can realistically expect in your case. Get the power you need to create a winning outcome for your client. www.litigatoronline.ca AUTHORITATIVE.INNOVATIVE.TRUSTED. Untitled-4 1 www.lawtimesnews.com 5/5/08 3:59:38 PM 11540(T3) MM2 04/08

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