Procurement Ombud Alexander Jeglic has released the 2025-26 Annual Report, which documents a record number of cases and calls for stronger accountability, oversight and reforms to address systemic weaknesses in federal procurement.
The report, covering April 1, 2025, to March 31, 2026, recorded 851 cases involving 1,272 issues, a 27-percent increase from the previous fiscal year. Of those cases, 632 concerned general procurement inquiries, 140 involved contract awards and 79 related to contract administration.
The Office of the Procurement Ombud (OPO) identified procurement complexity as the most frequently reported concern, recording 150 related issues. Suppliers also raised concerns about unfair or restrictive evaluation criteria, incorrectly conducted evaluations, burdensome solicitation processes and payment delays.
The report highlighted findings from a procurement practice review examining contracts awarded under the Procurement Strategy for Indigenous Business to Indigenous businesses.
The review identified fragmented governance, inconsistent application of requirements, weak oversight and unreliable reporting. It also found that Indigenous suppliers lack access to an impartial complaint mechanism for contracts awarded under the strategy.
"The Procurement Strategy for Indigenous Business is well-intentioned but poorly implemented and managed. Indigenous suppliers deserve better. Immediate action is required to establish a system that works and delivers for Indigenous suppliers," Jeglic said.
He recommended establishing a standalone Indigenous Procurement Policy, strengthening accountability for the five-percent Indigenous procurement target and creating interim and permanent complaint mechanisms.
OPO also completed a review of resource substitutions in professional services contracts. It found that some replacement resources did not meet or exceed the qualifications of the originally proposed personnel.
During the reporting period, OPO launched six formal reviews of complaints and completed four reviews initiated in 2024-25.
The report also documented instances in which departments declined to implement compensation recommendations, highlighting limits on the Ombud's authority.
Jeglic reiterated five proposed reforms, including establishing a federal Chief Procurement Officer, implementing government-wide vendor performance management, harmonizing procurement rules, adopting artificial intelligence and improving procurement data collection.
The report noted progress on vendor performance management and harmonized rules but identified continuing gaps in centralized accountability and procurement data.
OPO plans to monitor implementation of its recommendations, expand alternative dispute resolution services and continue reviewing departmental procurement practices.