Ottawa’s ‘Shark Tank’: Invitation-only program helped rapid test importers land billions

The Canadian government awarded two of the largest medical supply contracts of the pandemic to importers participating in an invitation-only federal program rather than to Canadian manufacturers offering lower prices, according to a Global News investigation.

The Toronto-area suppliers, BTNX and Switch Health, received contracts adding up to an estimated $2 billion for BTNX and $365 million for Switch Health, when they were participating in the Accelerated Growth Service (AGS), an initiative that helps small Canadian businesses become billion-dollar multinationals. This fast-lane conduit connects participants with officials across all levels of government.

BTNX’s price for a Chinese company’s kit, including fees and taxes, was 85 cents higher than a Canadian manufacturer’s, according to federal documents Global News obtained. The company received orders for 404 million tests, or the largest federal medical supply deal of the pandemic.

Switch Health’s price for a South Korean manufacturer’s kit was $6.45 to $10 higher than the lowest-priced product from a Canadian manufacturer. It received orders for 60 million tests, or the fifth-largest federal medical supply deal.

A spokesperson for Switch Health told Global News, “The pricing and financial data you have provided is not accurate.” The company did not comment further and declined a request for an interview.

Switch Health also won more than $602 million in federal contracts to provide laboratory tests for COVID-19 to international travellers, bringing its gross revenues to nearly $1 billion for 2021.

Ordering the tests from the two importers instead of domestic producers cost taxpayers an additional $56 million or more.

Taxpayers weren’t the only losers in the deal, according