Border Services Agency explains why ArriveCAN app cost Canada $54M

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Canada’s controversial ArriveCAN app made headlines when its hefty price tag was made public earlier this year.

Tech industry experts were shocked to hear that Ottawa had set aside $54 million to build the app over more than two years. The projected period ends in March 2023.

Earlier this month, a bunch of Toronto-based programmers recreated the ArriveCAN app for a fraction of that cost to make the jaw-dropping contrast look even more obvious.

Lazer Technologies co-founder Zain Manji revealed on Twitter that his team member was able to clone the app in just two days. Digital innovation firm TribalScale’s team also took much, much less time and money to do the same.

Manji explained that while building the app is an undoubtedly multi-faceted challenge, $54 million is “a bit too much.”

Building an app for the entire country of Canada is no easy task, especially for the Canadian government

There are so many challenges associated with it, especially behind the scenes, but $54M is a bit too much

Dan from Lazer built an ArriveCAN clone in less than 2 days https://t.co/DCYVmchV73 pic.twitter.com/IWJiSHflR8

— Zain Manji (@ZainManji) October 10, 2022

The ArriveCAN app was downloaded more than 18 million times and permitted more than 60 million travellers to expedite their border crossing process.

In an email sent to Daily Hive on Monday, Canada Border Services Agency (CBSA) revealed why the ArriveCAN app, which has existed for more than two years, cost tens of millions.

CBSA shared a breakdown of the money required to “develop, operate, and maintain the app,” which has received 70 updates and upgrades as COVID measures fluctuated.

“The $54M we expect to have spent by March 31, 2023, was not just budgeted and spent on the creation and launch of the app itself, which costed $80,000 to launch in April 2020,” a CBSA representative wrote. They added that the money was also spent on running a call centre that helped travellers during the pandemic, and answered over 645,000 calls.

These are the details on the costs from April 2020, including the planned budget to be spent by March 2023:

Initial version and updates — $8,880,000

The feds spent $80 grand on the creation of the first versions of the ArriveCAN app for Android and iOS, followed by $8.8 million for more than 70 releases of the app and website over the last two years.

Service Canada call centre — $7.5 million

Service Canada call centre staff answered over 645,000 calls on COVID health measures from travellers between November 2020 and October 2022 on behalf of both CBSA and the Public Health Agency of Canada (PHAC).

Data management — $5.3 million

The CBSA and PHAC used this amount to collect, report, and monitor the COVID border measures and results.

Indirect costs — $4.9 million

These costs include employee benefits, accommodations, and payments to other government departments.

Vaccine credential authentication — $4.6 million

This amount was spent verifying and authenticating travellers’ proof of vaccination. The documents varied across provinces, territories, and other countries.

Cloud hosting and IT systems — $9.1 million

Around $4.6 million was spent solely on cloud hosting services, with an additional $4.5 being invested into maintaining other IT systems needed to support the border health measures with real-time linkages to core border administration systems.

Tech support — $4.5 million

Technical support was provided not only to travellers but also to airlines and airports.

Cybersecurity — $2.3 million

The app underwent tests to meet the Canadian government’s standards on cybersecurity.

Accessibility — $1.7 million

This amount was spent to ensure the ArriveCAN app and website were both accessible to users with disabilities.

Project management — $1.6 million

Internal project management costs — including program, policy, and project coordination; legal services; and communications support — cost $1.6 million in taxpayer money.

Contingency — $3.8 million

This amount was budgeted to deal with the possibility of major uncertainties arising during ArriveCAN’s operations.

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Presently, the ArriveCAN app is optional to use but can help reduce time spent during declarations, customs, and immigration.

In its short life, the app has invited federal-level lawsuits, encountered glitch-based blunders, and even prompted intervention from US politicians.