I recently applied for a UX Designer position at Ontario Health (Job Posting RQ00639). The role seemed straightforward- design work for a Crown Corporation, funded by taxpayers, serving the public good.
Then I started asking questions. What I discovered was a complex web of intermediaries, each taking a cut of taxpayer money before any actual work gets done. This is my story – and it’s likely the story of thousands of contractors working in Ontario’s public sector.
The Job Posting Details
Position: UX Designer – Senior
Location: 525 University Avenue, Toronto
End Client: Ontario Health (Crown Corporation)
Your Offered Rate: CAD $750/day (Incorporated + HST)
Work Arrangement: 5 Days Onsite
The recruiter who contacted me provided a Virginia address (Ashburn, VA 20147) and a Virginia phone number.
Red flag #1: When I researched further, I discovered she was actually based in India – using a false US address and phone number.
Following the money trail
I decided to trace where taxpayer money actually goes. Based on industry-standard markup rates and procurement research, here’s what I discovered:
Cost to Ontario Health
Source: Ontario & Canadian taxpayer funds
Flextrack (MSP)
Markup: ~3% MSP fee
Prime Vendor (Unknown)
Markup: ~25% (estimated)
Arthur Grand Technologies
Markup: ~25% (estimated)
Contractor Receives
Percentage of total: 55.6% of what Ontario Health pays
The Annual Impact
If Ontario Health hired a contractor directly: $1,350/day × 250 days = $337,500/year
What they actually receive: $750/day × 250 days = $187,500/year
Lost to agency markup chain: $150,000/year
For every 10 contractors in similar situations, taxpayers lose $1.5 million annually to intermediary fees.
The Legal Question Nobody is Asking
1. ONTARIO’S US BUSINESS BAN
In March 2025, Ontario implemented a policy banning US businesses from public sector procurement. Yet Arthur Grand Technologies – a Virginia-based company – is actively recruiting for Ontario Health positions through Flextrack’s MSP program.
Question: How is this possible? Who’s responsible for ensuring compliance?
2. IDENTITY FRAUD INDICATORS
The recruiter who contacted me provided:
• A Virginia phone number: +1 (571) XXX-XXXX
• A Virginia business address: Ashburn, VA 20147
• While actually operating from India
Question: Is this not identity fraud? Why are offshore recruiters misrepresenting their locations for Canadian public sector contracts?
3. TRANSPARENCY VIOLATIONS
Ontario’s procurement policies explicitly mandate “transparency” and “best value for Crown.” Yet:
• Ontario Health likely doesn’t know the full markup chain
• Taxpayers have no visibility into where their money goes
• The multi-tier structure deliberately obscures actual costs
Question: How can we ensure “best value” when costs are hidden behind multiple layers of intermediaries?
4. ARTHUR GRAND’S LEGAL HISTORY
A basic internet search reveals that Arthur Grand Technologies was fined by the US Department of Justice in 2023 for posting discriminatory job advertisements – specifically stating “whites only” in their requirements.
Question: Should a company with this legal history be participating in Canadian public sector procurement?
5. THE BROADER IMPACT ON TAXPAYERS
This isn’t just about my one job offer. Consider the scale:
• Ontario Health employs hundreds of IT contractors
• Other Crown corporations (Metrolinx, Ontario Power Generation, LCBO) use similar MSP models
• Provincial government departments rely on the same procurement structures
If even 100 contractors are subject to similar markup chains, that’s $15 million per year going to intermediaries instead of actual workers or back to taxpayers.
If it’s 500 contractors? $75 million annually.
The potential waste could easily reach hundreds of millions of dollars per year across Ontario’s public sector.
Questions for Decision-Makers
TO ONTARIO HEALTH:
- Do you know the full markup chain for your contractors?
- Are you aware of US vendors operating through your MSP?
- What’s your actual cost per contractor vs. what contractors receive?
TO FLEXTRACK INC.:
- How do you vet sub-vendors for procurement compliance?
- What oversight exists for multi-tier subcontracting
- How does a 3% MSP fee result in a 44% total markup chain?
TO ARTHUR GRAND TECHNOLOGIES:
- Why are your recruiters misrepresenting their locations?
- How do you justify operating in Ontario post-March 2025 US business ban?
- What’s your response to your 2023 DOJ discrimination fine?
TO ONTARIO’S AUDITOR GENERAL:
- Has your office reviewed MSP contracts at Crown corporations?
- What oversight exists for multi-tier staffing markups?
- Can you audit the true cost of contractor procurement?
I hope this sparks a conversation about procurement transparency in Ontario’s public sector. I hope it leads to reforms that benefit both taxpayers and contractors. And I hope other contractors will come forward with their stories.
Because when we shine light on these systems, we can improve them.
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DISCLAIMER:
All figures are estimated based on industry-standard markup ranges (MSP: 2-3.5%, Prime Vendors: 20-35%, Sub-vendors: 15-25%) and publicly available procurement research. The actual markup chain may vary, but the multi-tier structure and substantial markup burden are well-documented in staffing industry literature.
SOURCES:
- Ontario Procurement Policy documents
- Flextrack public materials
- Staffing Industry Analysts research on markup rates
- Ontario Auditor General reports on healthcare staffing costs
- US Department of Justice public records (Arthur Grand case)
