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Procurement: January 5, 2000

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Canada's Auditor General has condemned the Department of National Defense for failing to produce the promised $200 million per year in savings by contracting out various military support functions. The contracts have saved the government only $68 million per year. [All figures are in Canadian dollars.] The Auditor report criticizes the DND for giving huge contracts without competitive bids, and allowing contractors to calculate profits in unapproved ways. --Stephen V Cole

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