Federal government's professional services spend rises to $16.4 billion

The federal government’s spending on third-party consultants ballooned to $16.4 billion in 2019-2020, according to a report from the National Post.

The federal government’s expenditures on professional and special services – including engineering, legal, and management consulting services – have grown $6 billion since Trudeau took office in 2015. Consulting fees have swelled from $9.5 billion in 2015 to $16.4 billion last year – driven in part by increasing consultant spend during the pandemic.

The federal government, however, is also spending a lot more on its bureaucracy, with government worker salaries growing from $36.8 billion before 2015 to $47.5 billion in 2020. The federal public service has added 10,000 bureaucrats annually under the Liberal government, growing to approximately 380,000 people.

Governments generally call in consultants to provide expert services in areas such as strategy, information technology, or engineering on a temporary basis. Government leaders contend that consulting firms provide specialized knowledge and services that the public service generally can’t offer, and that are more efficiently delivered via project-based contracts.

The Department of National Defence accounted for the largest share of consulting spend, at $4.4 billion, calling in the services of consultancies such as PwC and defense firms such as General Dynamics and Lockheed Martin. Other big spending departments were Public Works ($2.2 billion), Citizenship and Immigration ($931 million), and Employment ($864 billion).

Consulting firms have been an integral part of government response efforts to the pandemic – helping set up pandemic response frameworks, contact tracing systems, unemployment IT systems, and reopening plans.

Deloitte was earlier this year awarded a $16-million contract by the federal government to create an IT system that manages the vaccine rollout nationally.

Consulting firms can also be called into provide an impartial assessment during a scandal. Quintet Consulting, a specialist in workplace harassment, was paid nearly $400,000 for its report on the “toxic” work environment at Rideau Hall. Governor Gen. Julie Payette subsequently stepped down.