Angry in the Great White North
On the question of who manages Abotech and subcontractors
Tuesday, October 25, 2005 at 06:32 PM

Read other posts by Steve Janke published by the National Post

Leader

Let's revisit the Strategis entry for Abotech. We know the kids aren't running the company. We know David Smith, Liberal Party MP for the riding of Pontiac, formerly the president of Abotech, claims not to have anything to do with the company since he was elected. We know that wife Anne Ethier, who is supposed to be in charge, is formally trained as a nurse.

So what services does Abotech claim to provide?

IPS Steam consultants in: Project Executive IT, Senior Project Manager IT,Project Manager IT, Project Administrator, Technology Architect, Senior Platform Analyst, Platform Analyst, Senior Network Analyst Network Analysts, IT Security Consultant, Applications Architect, Applications Architect Product Specialist, Senior Applications Analyst, Senior Application Analysts, Product Specialist Applications Analyst, Applications Analyst Product, Specialist Applications Programmer/Analyst, Applications Programmer/Analyst Product Specialist, Database Administrator, Database Administrator Product Specialist, Database Analyst, Database Analyst Product Specialist, Senior Web Developer, Senior Web Developer Product Specialist, Web Developer, Web Developer Product Specialist, Systems Auditor, Quality Assurance Consultant, Senior Tester, Tester, Senior Technical Writer, Writer.

And a partridge in a pear tree.

All out of his house.

I'm an engineer with 15 years experience. I know lots of engineers in computers and software. I don't know any one engineer who can claim all those skills.

This is a description of a firm with at least 15 employees, all senior consultants and all highly paid.

Do they hang out in the kitchen? Obviously not. Clearly Abotech subcontracts the work.

And finally this:

We are an Aboriginal IT consultant Firm.

Well, the problem is this. To maintain that "aboriginal business" status, you have to be careful not to subcontract too much of the work away to non-aboriginals:

In respect of a contract, (goods, service or construction), on which a bidder is making a proposal which involves subcontracting, the bidder must certify in its bid that at least thirty-three percent of the value of the work performed under the contract will be performed by an Aboriginal business. Value of the work performed is considered to be the total value of the contract less any materials directly purchased by the contractor for the performance of the contract. Therefore, the bidder must notify and, where applicable, bind the subcontractor in writing with respect to the requirements that the Aboriginal Set-Aside Program (the Program) may impose on the subcontractor or subcontractors.

So even if Abotech subcontracts, the firm taking the work has to be aboriginal. Then what exactly does Abotech bring into the mix?

And if the subcontracting firm is not aboriginal, then Abotech has to retain enough of the work, one third or more, to qualify under these rules. Since David Smith is not leading the company, and no one has ever claimed that Anne Ethier is aboriginal, that leaves it to Cynthia, 14, and Sebastien, 16, to take on the work of IT Security Consultant and Specialist Applications Programmer/Analyst, respectively.

The government should have caught this:

The bidder's contract with a subcontractor must also, where applicable, include a provision in which the subcontractor agrees to provide the bidder with information, substantiating its compliance with the Program, and authorize the bidder to have an audit performed by Canada to examine the subcontractor's records to verify the information provided. Failure by the bidder to exact or enforce such a provision will be deemed to be a breach of contract and subject to the civil consequences referred to in this document.

Well, maybe they're catching it now, but I'd be interested to know exactly how long this has been going on.

[Hat tip to sslider for starting me on this track]




Main Story

Index of Abotech posts:

Another Liberal scandal brewing
Abotech Scandal Update
Abotech Scandal Update #2: MP David Smith's six-figure company is run out of his home
Hiding behind the Ethics Commissioner
Abotech Scandal Update #3: Now Abotech is an aerospace company?
Abotech Scandal Update #4: The nature of the work performed -- "Other"
Liberals: David Smith might have done something wrong. Really!
David Smith, Jaguar Solutions, ASM Informatique, and Government Contracts
David Smith, Jaguar Solutions, ASM Informatique -- close, literally
The press confirms David Smith works out of his home
Could David Smith's kids be running Abotech?
David Smith, Abotech, and Nursing
The Abotech Affair: The Link between Indian Affairs and Public Works
Abotech: One competitive contract awarded
Major developments in the Abotech affair (and a major correction)
David Smith is as aboriginal as my Polish grandmother
David Smith's extended Liberal Party bio
On the question of who manages Abotech and subcontractors
The Smith-Brazeau connection -- Deeper than I ever imagined

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