Opening Statement before the Standing Committee on Health

COVID-19 Vaccines

(Report 9—2022 Reports of the Auditor General of Canada)

4 December 2023

Karen Hogan, Fellow Chartered Professional AccountantFCPA
Auditor General of Canada

Mr. Chair, thank you for this opportunity to discuss our report on COVID‑19 vaccines in the context of the committee’s study of the government’s advance purchase agreement for COVID‑19 vaccines with Medicago. Our report was tabled in the House of Commons in December 2022. I would like to acknowledge that this hearing is taking place on the traditional unceded territory of the Algonquin Anishinaabe people. Joining me today are Andrew Hayes, Deputy Auditor General, and Susan Gomez, the principal who was responsible for the audit.

This audit examined how the federal government procured, authorized, and distributed vaccines to the provinces and territories to immunize Canadians against COVID‑19.

For the purpose of this hearing, we will focus on the procurement aspect of our audit. Overall, we found that Public Services and Procurement Canada provided the Public Health Agency of Canada with good support to secure enough COVID‑19 vaccine doses to vaccinate everyone in Canada. Between December 2020 and May 2022, the federal government paid for 169 million vaccine doses. More than 84 million of those doses made it into people’s arms.

Public Services and Procurement Canada used its emergency contracting authority. This provided the department with flexibility on a number of fronts, including using a non-competitive approach to procure vaccines from companies recommended by the COVID‑19 Vaccine Task Force.

The department established advance purchase agreements with 7 companies that showed the potential to develop viable vaccines. We found that the department exercised due diligence on the 7 vaccine companies. For example, the department examined whether the companies had the financial capability to meet the contractual requirements and were eligible to do business with the federal government. The department reached an agreement with Medicago on 13 November 2020.

The government’s strategy was to secure agreements with several vaccine companies in case Health Canada authorized only 1 vaccine. While this approach meant that Canada could end up with a surplus if all 7 vaccines were eventually approved, it also increased the chances of securing enough doses to support the largest vaccination program in the country’s history.

Mr. Chair, we are happy to answer the committee’s questions where possible; however, given the confidentiality of the agreements, we are unable to discuss details relating to contracting, costs, or fulfillment of any of the specific agreements.

This concludes my opening remarks. Thank you.