PACP Committee briefing binder: Appearance by the Deputy Minister of Employment and Social Development Canada - December 14, 2023

Overview

You are invited to appear for 2 hours before the Standing Committee on Public Accounts (PACP) on Report 8, The Benefits Delivery Modernization Programme from the 2023 Reports 5 to 9 of the Auditor General of Canada. During that same meeting, the committee will also be studying Report 7, Modernizing Information Technology Systems.

Committee Proceedings

The appearance is scheduled to take place on Thursday, December 14, 2023, from 11:00 a.m. to 13:00 p.m. EST

You are invited to appear for 2 hours as part of a panel, in person or by video-conference, with the Auditor General, as well as officials from the Treasury Board Secretariat, Shared Services Canada and Public Services and Procurement Canada.

• TBS will be sending the Chief Information Officer of Canada, Catherine Luelo
• PSPC will be sending Deputy Minister, Arianne Reza, and ADM of Procurement Branch, Mollie Royds
• SSC will be sending President Scott Jones, CFO Scott Davis and ADM of Hosting Services, Shannon Archibald

Each organization will have up to 5 minutes for opening remarks.

A detailed action plan has been requested and should be provided to the Committee, in both official languages, 48 hours in advance of the meeting.

PACP has agreed that questioning of witnesses would be allocated as follows:

• in round 1, there are 6 minutes for each party in the following order:
  • Conservative Party
  • Liberal Party
  • Bloc Québécois, and
  • New Democratic Party
• for the second and subsequent rounds, the order and time for questioning is as follows:
  • Conservative Party, 5 minutes
  • Liberal Party, 5 minutes
  • Bloc Québécois, 2 and a half minutes
  • New Democratic Party, 2 and a half minutes
  • Conservative Party, 5 minutes, and
  • Liberal Party, 5 minutes

Q1. What is the Benefits Delivery Modernization Programme?

The Benefits Delivery Modernization (BDM) Programme is a long-term, strategic undertaking to ensure the reliable and accurate delivery of OAS, EI and CPP benefits to Canadians.

The Programme will transform service delivery to Canadians, streamline the outdated operating model, address aging technology and reduce payment inaccuracies.

While BDM is focused on OAS, EI and CPP, the world-class benefits processing platform we have put into place will be able to support the delivery of benefits across the GC into the future.

Q2. When was the BDM Programme first announced?

The BDM Programme was originally announced in Budget 2017. [Redacted, 1 sentence]

Q3. How will BDM be implemented?

BDM is modernizing OAS, EI, and CPP over three phases, until 2030.

First, ESDC deployed a scalable benefits processing platform that will support the delivery of all benefits programs in autumn 2022.

Phase 1, which started in Spring 2021, will implement OAS on BDM by December 2024. In June 2023, our first release of OAS went into production to support over 600,000 foreign benefit recipients and is on track to onboard all OAS remaining benefits recipients by December 2024.

Phase 2, which will be launched in 2024, includes service enhancements to OAS and migrating EI onto the platform through multiple releases between 2025 and 2028.

Phase 3 will begin in 2027 and will include further service enhancements to OAS and EI and migrating CPP onto the platform by 2030.

Q4. What has BDM delivered to date?

In autumn 2022, BDM deployed the scalable benefits processing platform that will support the delivery of all benefits programs, and more GC services into the future.

OAS was the first benefit onboarded to BDM. OAS Release 1 went live on June 12, 2023, and is now processing foreign benefit cases for over 600,000 recipients. We continue to be on track to deliver the full OAS benefits by December 2024. The successful deployment of Release 1 demonstrated that we have a stable, secure solution for the delivery of benefits to Canadians and that the BDM Programme is on track.

BDM also developed the new OAS Benefits Estimator tool on Canada.ca in June 2023 to help Canadians find the benefits they are eligible for and entitled to. The OAS Benefits Estimator is the first User Experience (UX) project launch conducted in collaboration with the Seniors Team, with which we jointly launched the Retirement Hub in July 2023.

Q5. How is BDM improving services for Canadians?

BDM will lead to significant client experience improvements across Service Canada's benefit portfolio. For example:

• a refreshed and simplified OAS Benefits Estimator (launched in June 2023) and Retirement Hub, with a new Working Age client hub and EI entitlement calculator coming soon
• work is underway on the Service Canada Client Hub, which will be a new landing page for all Service Canada programs. An initial test version is set to launch later in 2023 with client feedback to be incorporated throughout 2024
• contact centres are being fully integrated across channels, giving clients a seamless experience if they're rerouted from another channel (for example, if something happens during a digital benefit application and the client is rerouted to the phone channel). This and other advanced features, including leveraging AI, are planned for 2027
• improvements to how Canadians can sign in and access their benefit accounts.
• transformed EI service experience through a simplified application process, greater automation and increased efficiencies
• a new human-centered processing system that will significantly improve the client and employee experience while bringing OAS, EI and CPP processing into the modern age

Q6. Will there be any regional / provincial / territorial differences for clients accessing OAS, EI or CPP on the new platform?

No. All Canadians will have an identical, bilingual service experience regardless of their province or territory of residence, in line with Minister Beech's mandate letter commitment to reach all Canadians.

Q7. Why is BDM needed right now?

Key drivers of change to modernize benefits delivery are:

• clients' needs and expectations are rapidly changing regarding how they interact with the government
• systems are aging and at risk of failure
• lack of flexibility to make changes in the current systems impacts policy agility
• employees do not have the modern tools needed to serve clients best
• ESDC is mandated to help build a stronger and more inclusive Canada, help Canadians live productive and rewarding lives, and improve Canadians' quality of life

At the heart of this mandate are the policies, programs, services and benefits that support our most vulnerable - the elderly, and the unemployed. But all Canadians, at some point or another, will interact with Service Canada for services, and these services should be as accessible as possible.

Q8. Tell us about BDM's timeline

• March 2017: Exploratory funding for BDM in Budget 2017.
• 2017 to 2020: BDM planning and procurement.
• Spring 2021: Beginning of BDM implementation phase and switch to OAS as first benefit to onboard.
• June 2022: CIO of Canada completes Strategic Assessment and recommends several changes to enhance BDM's success.
• Autumn 2022: The Common Benefits Delivery Platform is built on Cúram. OAS re-plan is approved.
• June 2023: Successful launch of first OAS release. Over 600,000 foreign benefit recipients' accounts now live in production on BDM.
• October 2023: OAG audit of BDM found progress made to protect benefit continuity but due to rising costs and time pressures, some elements of the transformation could be at risk.
• December 2024: On track for onboarding all remaining OAS accounts on BDM.
• 2024 to 2028: Implementation of EI, continuous improvement of OAS, and planning for CPP.
• 2027 to 2030: Implementation of CPP, continuous improvement of OAS and EI.

Every large procurement on BDM has been in consultation with PSPC and SSC and not only with SIs.

Q9. How does BDM's timeline compare to those of other large transformations undertaken in other jurisdictions?

While it is difficult to have exact comparators, in the UK, the most comparable social benefit transformation project in the Department for Work and Pensions took over a decade from initial concept to full deployment. In Australia, a transformation project of one single benefit took an initial seven years to launch, and there continues to be further transformation work ongoing 3 years later.

Q10. What role does BDM play in fulfilling the Ministers Mandate commitments?

The Programme is the core initiative that will deliver on the Minister of Citizens' Services 2023 mandate letter commitment to lead the ongoing "development and implementation of modern, resilient, secure and reliable services and benefit delivery systems for Canadians and ensure those services and benefits reach all Canadians regardless of where they live".

The current legacy systems are not a long-term option to onboard new benefits to Canadians. In addition, the costs of maintaining aged system augments year over year. As BDM is a major "digital-first" project to modernize Service Canada's benefits delivery system, it will transform service delivery to Canadians, modernize the outdated operating model and business processes, address aging technology. It will help clients to receive all the benefits to which they are entitled, with user-friendly and streamlined application processes.

Contingency Planning

Q11. Are contingency plans in place if any milestones or projected completions are delayed?

The Department recognizes the critical need to get the OAS implementation right. Putting vulnerable seniors' payments at risk is not an option. As such, BDM is undertaking a rigorous approach to testing, quality and security to ensure delivery of a solution that meets the quality expectations and safeguards the information of Canadians. For example:

• a trial period will occur prior to go-live as a final confirmation of payment accuracy and operational readiness before rolling out on a larger scale
• contingency levers are in place for potential project delays. Scope and schedule are tightly managed and controlled.
• before each Release, a go-no-go decision is taken by the Deputy Minister in consultation with their project team including our SI partners
• a nine-month stabilization period following the December 2024 final release will be dedicated for high-touch troubleshooting

Vulnerable Groups

Q12. How are persons with disabilities, those with accessibility needs and those who struggle to use technology being considered in the rollout of BDM?

To ensure we are meeting the service delivery needs of our most vulnerable clients, throughout the design and build phases, BDM conducts extensive user research with a broad representation of client groups including persons with disabilities and clients who struggle with the use of technology.

In addition, while BDM does have an operating of digital first, it is not digital only. All BDM services are designed to allow citizen to access the service through the channel of their choice, including telephone and in-person.

All BDM products and services must meet departmental and global accessibility standards and are rigorously tested with broad client groups, including persons with disabilities who use assistive technology.

An example of this work is the user research currently being undertaken with EI clients to inform our service design, and approximately 20% of our research participants to date are persons with disabilities.

Auditor General's October 2023 Audit

Q13. What did the OAG report look for?

The audit sought to determine whether ESDC, with the support of TBS, SSC, and PSPC, is delivering the BDM Programme to protect the continuity of OAS, CPP and EI benefits and to support the transition of IT systems and business processes to deliver accurate and timely benefits for all Canadians.

Q14. What did the audit conclude?

The audit found that ESDC made progress in protecting benefit continuity, but there remains a risk that, faced with further delays and rising costs, ESDC may be forced to take action that would impact the achievement of the full transformation element of the three benefits.

The audit recommends that partners:

• develop and implement an approach to estimating and reporting costs for large multi-year IT projects that could also benefit other government departments planning similar projects
• ensure that future changes do not result in the transformation component being curtailed or eliminated

GBA+ Annex

Q15. Are there GBA+ considerations resulting from BDM?

BDM programme will impact all Canadians who receive OAS, EI and CPP benefits. As the systems transition to the modernized program, this may include socio-economic impacts in communities across Canada, as more Canadians are able to access benefits to which they are entitled. BDM's implementation is consistent with the Government of Canada's Gender Results Framework, such as allowing greater economic participation, reducing poverty, and improving health and well-being.

SEA Annex

Q16. What are the Sustainable Development implications arising from BDM?

The Department of Employment and Social Development has performed a preliminary-Strategic Environmental Assessment for BDM and concludes there are no significant environmental impacts associated to the proposed measures. In addition, the procurement and disposal of IT assets will be performed according to TBS's Policy on the Planning and Management of Investments and the Directive on the Management of Material.

As BDM evolves, the environmental impacts will be re-assessed and measures may be proposed if needed.

Mandate of the Committee

When the Speaker tables a report by the Auditor General in the House of Commons, it is automatically referred to the Public Accounts Committee. The Committee selects the chapters of the report it wants to study and calls the Auditor General and senior public servants from the audited organizations to appear before it to respond to the Office of the Auditor General's findings. The Committee also reviews the federal government's consolidated financial statements - the Public Accounts of Canada - and examines financial and/or accounting shortcomings raised by the Auditor General. At the conclusion of a study, the Committee may present a report to the House of Commons that includes recommendations to the government for improvements in administrative and financial practices and controls of federal departments and agencies.

Government policy, and the extent to which policy objectives are achieved, are generally not examined by the Public Accounts Committee. Instead, the Committee focuses on government administration - the economy and efficiency of program delivery as well as the adherence to government policies, directives and standards. The Committee seeks to hold the government to account for effective public administration and due regard for public funds.

Pursuant to Standing Order 108(3) of the House of Commons, the mandate of the Standing Committee on Public Accounts is to review and report on:

• the Public Accounts of Canada
• all reports of the Auditor General of Canada
• the Office of the Auditor General's Departmental Plan and Departmental Results Report, and
• any other matter that the House of Commons shall, from time to time, refer to the Committee

The Committee also reviews:

• the federal government's consolidated financial statements
• the Public Accounts of Canada
• makes recommendations to the government for improvements in spending practices
• considers the Estimates of the Office of the Auditor General

Other Responsibilities:

• the economy, efficiency and effectiveness of government administration
• the quality of administrative practices in the delivery of federal programs, and
• Government's accountability to Parliament with regard to federal spending

Committee Members

Bios of the Committee Members

John Williamson (New Brunswick Southwest) Conservative Chair

• Elected as MP for New Brunswick Southwest in 2011, he was then defeated in 2015 and re-elected in 2019 and 2021
• Currently also serves as a Member of the Liaison Committee and Chair of the Subcommittee on Agenda and Procedure of the Standing Committee on Public Accounts
• Previously served on many committees, including PACP for a brief time in 2013
• Prior to his election, M. Williamson occupied different positions. He was an editorial writer for the National Post from 1998 to 2001, then joined the Canadian Taxpayers Federation until 2008. In 2009, he was hired by Stephen Harper as director of communications in the PMO

Jean Yep (Scarborough—Agincourt) Liberal Chair

• Elected as MP for Scarborough—Agincourt in a by-election on December 11, 2017, and re-elected in 2019 and 2021
• Has served on Public Accounts (since 2018), as well as Government Operations and Canada-China committees in the past
• Also serves on the Special Committee on the Canada - People's republic Of China Relationship and as Vice-Chair of the Subcommittee on Agenda and Procedure of the Standing Committee on Public Accounts

Before her election, Ms. Yip was an insurance underwriter and constituency assistant.

Nathalie Sinclair-Desgagné (Terrebonne) Bloc Québécois Second vice-chair

• Elected as MP for Terrebonne in the 2021 federal election
• BQ Critic for Public Accounts; Pandemic Programs; and Federal Economic Development Agencies
• Vice-Chair of the Subcommittee on Agenda and Procedure of the Standing Committee on Public Accounts
• Worked at the European Investment Bank and at PWC London
• Return to Quebec in 2017 to pursue a career in the Quebec business world

John Nater (Perth—Wellington, Ontario) Conservative Member

• Served in West Perth in the municipal council
• Elected as MP for Perth – Wellington in 2015
• Also served as the Vice Chair for the Canadian House and Commons standing Committee on Official Languages
• Former Shadow Minister for Rural Economic Development and current Shadow Minister for Canadian Heritage
• Known as an expert on parliamentary procedure
• Degree in public affairs and policy management and a Master of Public Administration

Jake Stewart (Miramichi—Grand Lake, New Brunswick) Conservative Member

• Elected to the Legislative Assembly of New Brunswick in the 2010 provincial election
• Elected as MP for Miramichi – Grand Lake in 2021
• In provincial politics, Stewart was a member of the Standing Committees on Education, Private Bills, Procedure, Public Accounts, and Chaired the Standing Committee on Legislative Officers
• Is currently the shadow minister for national revenue

Kelly McCauley (Edmonton West) Conservative Member

• Elected as the Member of Parliament in 2015 for Edmonton West, re-elected in 2019 and 2021
• Also serves as Chair of the Standing Committee on Government Operations and Estimates
• Former Conservative Shadow Minister for Treasury Board
• Previously served on the COVID-19 Pandemic committee as well as the Subcomittee on Agenda and Procedure of OGGO in 2020
• Before his election in 2015, Mr. McCauley was a hospitality executive specialized in managing hotels and convention centres
• He has a graduate of BCIT in the Hospitality Management program
• He has a history of advocacy for seniors and veterans

Blake Desjarlais (Edmonton Greisbach) NDP Member

• Elected as MP for Edmonton Greisbach in 2021
• NDP Critic for Treasury Board; Diversity and Inclusion; Youth; Sport; and Post-secondary Education.
  • Also a member of the Subcommittee on Agenda and Procedure of the Standing Committee on Public Accounts
• First openly 2-Spirit person and Alberta's only Indigenous Member of Parliament

Valerie Bradford (Kitchener South – Hespeler) Liberal Member

• Elected as MP for Kitchener South - Hespeler in 2021
  • Also sits on the Science and Research committee and the Subcommittee on Agenda and Procedure of the Standing Committee on Science and Research
  • Director of the Canada-Africa Association
• Prior to her election, Ms. Bradford worked as an economic development professional for the City of Kitchener

Shaun Chen (Scarborough North) Liberal Member

• Elected MP for Scarborough North in 2015 and re-elected in 2019 and 2021
• Member of the Parliamentary Standing Committee on PACP, REGS and BILI
• Chen studied at Sir John A. Macdonald Collegiate Institute and the University of Toronto, where he earned a Bachelor of Science in Computer Science and Equity Studies and a Master of Arts in Sociology of Education
• Former Toronto District School Board Trustee and Board Chair

Iqra Khalid (Mississauga—Erin Mills, Ontario) Liberal Member Parliamentary Secretary to the Minister of National Revenue

• Elected as MP for Missisauga – Erin Mills in 2015, and re-elected in 2019 and 2021
• Serves as Parliamentary Secretary to the Minister of National Revenue.
• Has served on the Standing Committee of Justice and Human Rights and sat on the Foreign Affairs and International Development Subcommittee on International Human Rights and now serves as Vice-Chair of the Standing Committee on Access to Information, Privacy, and Ethics as well as a member of the National Security and Intelligence Committee of Parliamentarians
• Has a degree in criminology and professional writing and has a Juris Doctor degree at Western Michigan University Cooley Law School

Brenda Shanahan (Châteauguay—Lacolle) Liberal Member

• Elected as MP for Châteauguay—Lacolle in 2015, and re-elected in 2019 and 2021
• Caucus Chair of the Liberal Party
• Has served on Public Accounts (2016 to 2018), as well as Ethics, Government Operations, and MAID committees in the past
• Has served as a member of the National Security and Intelligence Committee of Parliamentarians (NSICOP)

Prior to her election, Ms. Shanahan was a banker and social worker, who has also been involved in a number of organizations such as Amnesty International and the Canadian Federation of University Women.

Preamble

The continued, uninterrupted delivery of Canada's core social benefits program is of utmost importance to the Government of Canada and, over the past number of years, ESDC has undertaken extensive work to significantly reduce risks with respect to the current legacy technologies that delivery these programs to Canadians.

Through the Benefit Delivery Modernization (BDM) programme, the existing legacy technology will be replaced with a new platform consisting of modern applications on modern infrastructure. This new platform has been developed using human-centred design principles which will result in significantly improved client experience for Canadians when they apply for and receive benefits, and also provide enhanced program integrity and quicker implementation of policy changes. While the BDM programme is a very sizable investment, during the 10-year life of the programme, over $1.5 trillion in Employment Insurance (EI), Old Age Security (OAS) and Canada Pension Plan (CPP) benefits will be paid out, and the current and projected costs are consistent with similar transformations undertaken in other jurisdictions.

Work on BDM is well underway, and in June 2023, BDM was successfully deployed for over 600,000 foreign benefit recipients. The programme remains on track to go live with all remaining OAS beneficiaries by December 2024.

The departmental Management Response (MR) will be included in the OAG's audit report that is tabled to Parliament and posted on the OAG's website.

The following content was converted from a table to text for accessibility reasons.

Report ref. No

Para 35

Issue

Auditor General's report on the Benefits Delivery Modernization Programme.

Background

The BDM Programme is the largest IT-enabled transformation initiative ever undertaken by the Government of Canada. BDM will modernize and transform the way that the federal government serves all Canadians by replacing old systems with new, modern systems and technology, fit for purpose, designed for human interaction in the digital age.

The extent of the transformation journey is not always known at programme inception, and due diligence is required to unravel the years of technical debt that can sometimes impact schedule and cost. That is the reality of large-scale transformation but required to fulfill the ambition of improving service to Canadians.

The Programme is the core initiative that will deliver on the Minister of Citizens' Services 2023 mandate letter commitment to lead the ongoing "development and implementation of modern, resilient, secure and reliable services and benefit delivery systems for Canadians and ensure those services and benefits reach all Canadians regardless of where they live".

Key facts

The objective of the OAG's audit, which covers the period from 2015 through to May 2023, was to determine whether ESDC, with the support of Treasury Board Secretariat (TBS), Shared Services Canada (SSC) and Public Service Procurement Canada (PSPC), is planning, administering, and monitoring the BDM Programme to achieve expected benefits.

The audit was launched in July 2021 but was paused in March 2022 due to changing OAG priorities and labour action. Since its resumption in November 2022, this audit resulted in a total of 33 information requests.

As part of the audit, the OAG examined:

• the process to identify and integrate changes needed to provide a better client experience to Canadians, including through Gender-based Analysis Plus (GBA+) assessments and consultations with diverse groups of clients
• the change management strategy used to support change events and transition of IT systems and business processes, and the support provided by PSPC, TBS, and SSC to ESDC

Key messages

BDM is satisfied with the content in the OAG's audit report, which we found largely constructive.

The OAG's recommendations had 2 components: improving cost estimation and safeguarding transformation.

• Much of the work related to cost estimation is already underway due to BDM's response to an external review by the Government of Canada's Chief Information Officer (GC-CIO). These improvements are being implemented and further refined to increase BDM's precision as their financial methodologies mature
• A new change control process will be put into place to ensure the transformational elements of the programme are protected
• BDM successfully delivered Old Age Security (OAS) Release 1 in June 2023. However, there have also been other significant accomplishments by the programme, such as:
  • BDM developed a new OAS Benefits Estimator, which was launched by Service Canada in June 2023
  • BDM delivered the Common Delivery Benefits Platform, on which OAS was released. This will be used for all 3 benefits moving forward
• Implemented the relevant High Value Asset controls, which will be upgraded according to security requirements

Although the transformational components of OAS were initially postponed in favour of safeguarding the continuity of its aging infrastructure, Employment Insurance on BDM will be inherently transformative in all stages of its implementation. For instance, a key aspect of EI on BDM will be the ability to reflect real-time changes to EI-related legislation.

Issue

Stability and security of the legacy systems.

Background

The Benefits Delivery Modernization (BDM) Programme is a long-term, strategic undertaking to ensure the reliable and accurate delivery of OAS, EI and CPP benefits to Canadians.

The Programme will transform service delivery to Canadians, streamline the outdated operating model, address aging technology and reduce payment inaccuracies.

The Department is using extensive research, best practices and lessons learned from both the private and public sectors, Canadian provinces, the United Kingdom, Australia, and the United States, which have successfully undertaken similar transformations.

Key facts

These systems are not a long-term option to onboard new benefits to Canadians. In addition, the costs of maintaining aged system augments year over year. As BDM is a major "digital-first" project to modernize Service Canada's benefits delivery system, it will transform service delivery to Canadians, modernize the outdated operating model and business processes, address aging technology. It will help clients to receive all the benefits to which they are entitled, with user-friendly and streamlined application processes.

BDM uses leading industry security standards to inform our security controls. We will only allow applications to go into production on premises or in the cloud once we have fully demonstrated that the appropriate safeguards and controls are in place. For example, when BDM went live with the first OAS Release, a full security assessment was conducted and met all requirements.

Our number one priority and responsibility is to protect the integrity and security of our citizens' data no matter where it resides. The leading Cloud Service Providers (CSP) spend over $6 billion annually on security and keeping their platforms current. CSPs regularly consult with private and public sector partners and global security agencies to proactively identify, assess and address potential risks. This allows us to benefit from their core competencies and investments in these areas, while ensuring Canadians' data is safe and used appropriately.

Key messages

The Department has a robust business continuity and disaster recovery plan for all its core systems, including OAS. Over the past half decade, the Government has made significant investments to strengthen this capability. The plans consist of running ongoing back-ups of the data to prevent significant data loss, multiple site redundancy in case of a failure at a particular location, and full end-to-end recovery simulation exercises to provide assurance that our plan will work.

That said, while measures have been taken to mitigate risk of immediate failure, replacing the current system remains critical as the system applications are outdated, poorly documented and difficult to change.

The Department is following a phased approach in the implementation of the new systems to efficiently manage possible risks without interrupting benefit payments to Canadians by:

• keeping the existing systems running in parallel during the transformation process of each particular system
• using a phased approach by gradually introducing new systems and processes by a solid change management strategy, and
• minimizing the impact of potential issues by progressively transferring client segments into the new systems

Issue

What are the impacts of failure and contingency plan for BDM?

Background

The Benefits Delivery Modernization (BDM) Programme is a long-term, strategic undertaking to ensure the reliable and accurate delivery of OAS, EI and CPP benefits to Canadians.

The Programme will transform service delivery to Canadians, streamline the outdated operating model, address aging technology and reduce payment inaccuracies.

Key facts

Key drivers of change to modernize benefits delivery are:

• clients' needs and expectations are rapidly changing regarding how they interact with the government
• systems are aging and at risk of failure
• lack of flexibility to make changes in the current systems impacts policy agility
• employees do not have the modern tools needed to serve clients best
• ESDC is mandated to help build a stronger and more inclusive Canada, help Canadians live productive and rewarding lives, and improve Canadians' quality of life

At the heart of this mandate are the policies, programs, services and benefits that support our most vulnerable - the elderly, and the unemployed. But all Canadians will, at some point or another, will interact with Service Canada for services, and these services should be as accessible as possible.

Recognizing the risk to these legacy systems, over the past 3 years, the government has made significant investments to ensure the viability of the existing legacy systems continue to be available to pay Canadians.

Specifically, under ESDC's Technical Debt Remediation Initiative measures have been taken to:

• improve network performance
• establish disaster recovery solutions to enable IT continuity
• stabilize aging IT systems
• transition to an evergreen life cycle approach, and
• investments in skills, training and retention

Key messages

BDM is indeed very complex. All the same, it is absolutely essential that we succeed. The failure of the OAS, EI or CPP processing systems would have a catastrophic effect on Canada's most vulnerable citizens. To ensure our success, BDM has made recent changes our leadership, governance and scope. All of these changes served to strengthen BDM's focus and project discipline.

The Department recognizes the critical need to get the OAS implementation right. Putting vulnerable seniors' payments at risk is not an option. As such, BDM is undertaking a rigorous approach to testing, quality and security to ensure delivery of a solution that meets the quality expectations and safeguards the information of Canadians.

• A trial period will occur prior to go-live as a final confirmation of payment accuracy and operational readiness before rolling out on a larger scale
• Contingency levers are in place for potential project delays. Scope and schedule are tightly managed and controlled
• Before each Release, a go-no-go decision is taken by the Deputy Minister in consultation with their project team including our System Integrator partners
• A 9-month stabilization period following the December 2024 final release will be dedicated for high-touch troubleshooting

The Department has a robust business continuity and disaster recovery plan for all its core systems, including OAS. Over the past half decade, the Government has made significant investments to strengthen this capability. The plans consist of running ongoing back-ups of the data to prevent significant data loss, multiple site redundancy in case of a failure at a particular location, and full end-to-end recovery simulation exercises to provide assurance that our plan will work.

That said, while measures have been taken to mitigate risk of immediate failure, replacing the current system remains critical as the system applications are outdated, poorly documented and difficult to change.

Issue

BDM's targets and timelines.

Background

The BDM Programme is the largest IT-enabled transformation initiative ever undertaken by the Government of Canada. BDM will modernize and transform the way that the federal government serves all Canadians by replacing old systems with new, modern systems and technology, fit for purpose, designed for human interaction in the digital age.

The Programme is the core initiative that will deliver on the Minister of Citizens' Services 2023 mandate letter commitment to lead the ongoing "development and implementation of modern, resilient, secure and reliable services and benefit delivery systems for Canadians and ensure those services and benefits reach all Canadians regardless of where they live".

Key facts

BDM's timeline is as follows:

• March 2017: Exploratory funding for BDM in Budget 2017
• 2017 to 2020: BDM planning and procurement
• Spring 2021: Beginning of BDM implementation phase and switch to OAS as first benefit to onboard
• June 2022: Government of Canada's Chief Information Officer completes the Strategic Assessment and recommends several changes to enhance BDM's success
• Autumn 2022: The Common Benefits Delivery Platform is built on Cúram. OAS re-plan is approved
• June 2023: Successful launch of first OAS release. Over 600,000 foreign benefit recipients' accounts now live in production on BDM
• October 2023: OAG audit of BDM found progress made to protect benefit continuity but due to rising costs and time pressures, some elements of the transformation could be at risk
• December 2024: On track for onboarding all remaining OAS accounts on BDM
• 2024 to 2028: Implementation of EI, continuous improvement of OAS, and planning for CPP
• 2027 to 2030: Implementation of CPP, continuous improvement of OAS and EI

Key messages

• BDM is on track to deliver all 3 core statutory benefits onto the new platform by 2030
• As a result of reduced funding between 2017 and 2020, work slowed for many deliverables, including policy and legislative simplification work. Some planned work was delayed, which contributed to high staff turnover and the loss of key resources
• The Covid-19 pandemic also had an effect on BDM. In March 2020, ESDC was at the forefront of the GC's pandemic response
• The COVID-19 response work was conducted outside of the BDM Programme; however, ESDC leveraged the groundwork laid by BDM to accelerate the critical development of COVID-19 benefits solutions as part of the GC's response plan
• ESDC's "all hands-on deck" approach led to a number of key resources being temporarily deployed outside of the Programme in order to support the emergency response, and some staff faced challenges with working from home, network access problems and/or family obligations during school closures
• BDM underwent a Strategic Assessment between May and June 2022 to ensure the Programme was still on track. [Redacted, 1 sentence]
• The BDM Strategic Assessment Action Plan was subsequently prepared as a multi-departmental response to the recommendations and to provide a framework for tracking progress and reporting on the expected outcomes
• All action items were completed by June 30, 2023, as targeted

Issue

How much will the BDM Programme cost taxpayers?

Background

The BDM Programme is the core initiative that will deliver on the Minister of Citizens' Services 2023 mandate letter commitment to lead the ongoing "development and implementation of modern, resilient, secure and reliable services and benefit delivery systems for Canadians and ensure those services and benefits reach all Canadians regardless of where they live".

As BDM is a major "digital-first" project to modernize Service Canada's benefits delivery system, it will transform service delivery to Canadians, modernize the outdated operating model and business processes, address aging technology. It will help clients to receive all the benefits to which they are entitled, with user-friendly and streamlined application processes.

In autumn 2022, BDM deployed the scalable benefits processing platform that will support the delivery of all benefits programs, and more GC services into the future.

OAS was the first benefit onboarded to BDM. OAS Release 1 went live on June 12, 2023, and is now processing foreign benefit cases for over 600,000 recipients. We continue to be on track to deliver the full OAS benefits by December 2024. The successful deployment of Release 1 demonstrated that we have a stable, secure solution for the delivery of benefits to Canadians and that the BDM programme is on track.

Key facts

Key drivers of change to modernize benefits delivery are:

• clients' needs and expectations are rapidly changing regarding how they interact with the government
• systems are aging and at risk of failure
• lack of flexibility to make changes in the current systems impacts policy agility
• employees do not have the modern tools needed to serve clients best
• ESDC is mandated to help build a stronger and more inclusive Canada, help Canadians live productive and rewarding lives, and improve Canadians' quality of life

At the heart of this mandate are the policies, programs, services and benefits that support our most vulnerable - the elderly, and the unemployed. But all Canadians will, at some point or another, will interact with Service Canada for services, and these services should be as accessible as possible.

As a pathfinder Programme in the GC, it has become clear that estimates can only be assessed with what is known at a point in time. This means that costs will continue to evolve as the complexity of unravelling the current legacy systems is further assessed and informs the scope, timelines, and dependencies. Cost estimates are based on an approved methodology, including detailed analysis and calculations, considering various known factors.

Large-scale multi-year projects are complex undertakings. The extent of the transformation journey is not always known at program inception, and deep due diligence is required to unravel the years of technical debt that can sometimes impact schedule and costs.

This means that costs will continue to evolve as adjustments are made to the scope, timeline, and dependencies. The OAG also recognized this in their recent report.

The BDM Programme has contracted an amount of $672M to external consulting firms since 2017, which includes $410M to System Integrators, $147M to the Transformation Programme Office (TPO) and $70M to the Core Technology Vendor.

Less than 0.01% if these contracts have been sole-sourced. The vast majority of BDM external spending is done competitively, either through selective processes, selective tendering or open bidding.

Key messages

BDM is the largest IT-enabled transformation initiative ever undertaken by the Government of Canada. Through a staged and cautious approach, the Programme will modernize how the federal government serves all Canadians, by replacing old systems and technology with new upgraded systems fit for the digital age.

BDM is critical to ensuring the ongoing delivery of EI, OAS and CPP, which are the core social benefits programs for Canadians. Overall, funding expended on BDM is less than 1% of the total payout of these programs. Large-scale transformation projects of this nature, particularly ones of this significance and importance, require large investments to ensure successful implementation. Since 2017, the Programme has spent $853 million (including taxes).

Despite these costs, over the more than 10-year course of the Programme, total benefits to Canadians will amount to more than $1.5 trillion, while BDM will cost less than 0.5% of that.

Issue

Safeguards / consultations for transition: avoiding another Phoenix scenario.

Background

The BDM Programme is the largest IT-enabled transformation initiative ever undertaken by the Government of Canada. BDM will modernize and transform the way that the federal government serves all Canadians by replacing old systems with new, modern systems and technology, fit for purpose, designed for human interaction in the digital age.

The Programme is the core initiative that will deliver on the Minister of Citizens' Services 2023 mandate letter commitment to lead the ongoing "development and implementation of modern, resilient, secure and reliable services and benefit delivery systems for Canadians and ensure those services and benefits reach all Canadians regardless of where they live".

The Transformation of Pay Administration (TPA) was a combination of two projects: Pay Modernization and Pay Consolidation.

• pay Modernization was the replacement of a 40-year-old system with Phoenix, an off-the-shelf solution to be integrated with the existing HR management system
• pay Consolidation was the transfer of departmental pay services to a new, centralized pay center

Key facts

BDM is not going to be another Phoenix because we learned from previous mistakes.

Phoenix had no single individual or governance body assigned with the authority or accountability, and Deputy heads were not aware of most of their responsibilities.

BDM has a single responsible Deputy Minister solely accountable for the program, and BDM's governance structure includes both partner vendors and departments.

Phoenix evolved with few checks and balances.

BDM governance includes both partner vendors and departments. It also spans the Ministerial level through to the project level and reports monthly to dedicated governing bodies.

Phoenix was almost wholly confined to the management of technology and of organization. Because of this, there was no holistic consideration and management of the end-to-end process from both a technological and human interaction standpoint.

BDM is first and foremost a business-led change. This means that the complete end-to-end business transformation, including employee and citizen interaction, are at the core of BDM's mandate.

Phoenix roles and responsibilities of parties with accountabilities for the broader areas were not effectively designed, documented nor implemented.

BDM regards external departments as "partners" rather than "service providers" and their highest-ranking officials have representation on the governance bodies.

BDM has defined accountabilities at all levels as well as with partner departments (including MOUs) and system integrators (external consulting firms).

Phoenix system was not thoroughly tested, and private sector entities were not encouraged to contribute. This included not communicating or collaborating with others involved in the initiative and not being invited to the governance tables.

Everything is fully tested before any full production release, and test results are a critical component of the go / no-go decision.

BDM is using a multi-phased approach that is agile. Benefits are being staged onto the platform through multiple releases over multiple years, with legacy systems continuing to operate until the complete migration is achieved.

Key messages

BDM is on track to deliver all 3 core statutory benefits onto the new platform by 2030.

The changes to OAS, EI and CPP delivery will affect millions of Canadians. In 2021 to 2022, for example:

• 6.9 million OAS beneficiaries received $60.8 billion
• 3.4 million EI beneficiaries received $36.5 billion, and
• 6.3 million CPP beneficiaries received $53.1 billion

BDM takes the stewardship of these systems extremely seriously.

Issue

What is the Government doing to ensure the security of the new BDM platform system?

Background

The Benefits Delivery Modernization (BDM) Programme is a long-term, strategic undertaking to ensure the reliable and accurate delivery of OAS, EI and CPP benefits to Canadians.

While BDM is focused on OAS, EI and CPP, the world-class benefits processing platform we have put into place will be able to support the delivery of benefits across the GC into the future.

The BDM Programme is the core initiative that will deliver on the Minister of Citizens' Services 2023 mandate letter commitment to lead the ongoing "development and implementation of modern, resilient, secure and reliable services and benefit delivery systems for Canadians and ensure those services and benefits reach all Canadians regardless of where they live".

The Department is following a phased approach in the implementation of the new systems to efficiently manage possible risks without interrupting benefit payments to Canadians by:

• keeping the existing systems running in parallel during the transformation process of each particular system
• using a phased approach by gradually introducing new systems and processes by a solid change management strategy, and
• minimizing the impact of potential issues by progressively transferring client segments into the new systems

Key facts

Deloitte is building the new BDM platform. BDM held a multi-year, phased competitive procurement process to select the core technology vendor, the 4 system integrators (SIs) and the cloud service providers (CSPs). Together, this robust ecosystem brings world class expertise needed to deliver this complex program.

The Department recognizes the critical need to get the OAS implementation right. Putting vulnerable seniors' payments at risk is not an option. As such, BDM is undertaking a rigorous approach to testing, quality, and security to ensure delivery of a solution that meets the quality expectations and safeguards the information of Canadians:

• a trial period will occur prior to go-live as a final confirmation of payment accuracy and operational readiness before rolling out on a larger scale
• contingency levers are in place for potential project delays. Scope and schedule are tightly managed and controlled
• before each Release, a go-no-go decision is taken by the Deputy Minister in consultation with their project team including our System Integrator partners
• a 9-month stabilization period following the December 2024 final release will be dedicated for high-touch troubleshooting

BDM will lead to significant client experience improvements across Service Canada's benefit portfolio. For example:

• a refreshed and simplified OAS Benefits Estimator (launched in June 2023) and Retirement Hub, with a new Working Age client hub and EI entitlement calculator coming soon
• improvements to how Canadians can sign in and access their benefit accounts, and
• transformed EI service experience through a simplified application process, greater automation and increased efficiencies

Key messages

As BDM is a major "digital-first" project to modernize Service Canada's benefits delivery system, it will transform service delivery to Canadians, modernize the outdated operating model and business processes, address aging technology.

The most significant way BDM is managing complexity is through partnerships. As such, BDM is working with several partner departments, such as Shared Services Canada, Public Services and Procurement Canada and the Canadian Centre for Cyber Security. We are also working with external partners such as Deloitte, Accenture and PwC.

The Department is using extensive research, best practices and lessons learned from both the private and public sectors, Canadian provinces, the United Kingdom, Australia, and the United States, which have successfully undertaken similar transformations.

Together with our partners, BDM will deliver a new benefits processing platform and client experience that will ensure benefit continuity and income security for all Canadians.