Introduction

In a bold move that has many raising their eyebrows, Shared Services Canada has announced contracts for cloud computing services with a staggering 25-year commitment. Critics have questioned whether the federal government is capable of managing such long-term tech contracts, especially given its less-than-stellar history with technology projects.

A Troubling Track Record

Taxpayers have every reason to be cautious. The government’s track record with technology initiatives suggests potential financial pitfalls that could haunt taxpayers for decades to come. A perfect example of this is the ArriveCan app, launched in April 2020, which initially had a price tag of just $80,000. Shockingly, costs spiraled out of control, ultimately reaching a whopping $54 million, as flagged by the auditor general who lamented poor financial management and documentation.

This is not an isolated incident. The government’s payroll system, Phoenix, debuted in 2016 with a $300 million budget but has since consumed an additional $3.5 billion due to ongoing issues with employee payments. Reports indicate that after nearly a decade of mismanagement, the government has conceded defeat regarding the Phoenix system's efficacy.

Concerns Over Long-Term Commitments

These examples raise serious concerns about the government’s ability to handle a complex, multi-year technology undertaking. A recent study from Carleton University underscores these apprehensions, highlighting the government's habit of entering into long-term contracts that may backfire and a tendency to mismanage procurement processes.

Amanda Clark, a co-author of the study, pointed out that Canada’s digital infrastructure lags behind even countries embroiled in conflict, such as Ukraine. In light of this, she advocates for substantial reforms in how the government approaches tech procurement, suggesting strict spending limits and shorter contract durations to mitigate risks.

Conclusion

As taxpayers brace for a potential 25-year obligation in cloud services—an area of technology that continues to evolve—the question looms larger: Can we trust a government that has struggled to manage basic tech systems to oversee such an extensive and intricate cloud computing scheme?

With precedents like ArriveCan and Phoenix on the record, the case is strong that Shared Services Canada should reevaluate its course and avoid locking taxpayers into a protracted tech boondoggle. The stakes are high, and the financial ramifications could be severe for years to come.

Stay vigilant, Canada—this tech gamble could cost you dearly!