2022 Minister’s Transition Book 2: Welcome letter

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August 31, 2022

Dear Minister Jaczek,

Congratulations on your appointment as Minister and Receiver General of Canada. On behalf of all departmental staff, I would like to offer you a very warm welcome. We look forward to working with you to implement the government's agenda and to supporting you as you assume your new responsibilities.

Public Services and Procurement Canada (PSPC) is one of the oldest federal departments. Established in 1841, it was instrumental in building the Houses of Parliament; Canada's roads, bridges and canals; post offices and federal buildings across the country. Today, the department continues to play an essential role in government operations. With over 17,000 employees nationwide and an annual gross budget of approximately $8.9 billion per year, PSPC will play a central part in achieving the government's agenda and provides critical services to other government departments and agencies in support of their mandates.

Major procurements under your responsibility include complex defence and marine projects such as the National Shipbuilding Strategy and the replacement of Canada's fighter jet fleet. PSPC has also played a central role in pandemic response by procuring a broad range of services and goods, including vaccine doses for every eligible Canadian, rapid tests and personal protective equipment. This work will continue for the foreseeable future.

You are responsible for providing office space for public servants and parliamentarians, which affords the opportunity to ensure that government facilities are right-sized for the future, green, accessible and efficient. Furthermore, you are responsible for managing a wide range of assets across the country, including bridges, laboratories, docks and dams, as well as enhancing and preserving the cultural heritage of buildings and monuments throughout Canada. In particular, the rehabilitation of the Parliamentary Precinct will continue to advance under your authority.

As the Receiver General for Canada, you are responsible for the overall collection, reconciliation and reporting of government monies and for issuing all Government of Canada payments. While the minister of Finance is responsible for managing the funds of the government, the Receiver General disburses these funds. For example, to date the department has administered approximately $5.1 billionFootnote 1 in contracts to support Canada's COVID-19 response. In addition, you oversee Government of Canada pay and pension administration.

Your core responsibilities also include translation and interpretation services provided to government departments and Parliament. Throughout the COVID-19 pandemic, the Translation Bureau provided important support to enable virtual parliamentary operations. You are also responsible for a number of crown corporations, which operate at arms length, but report to Parliament through you.

The work of the department is broad and often complex, and these are only a few examples of your new responsibilities. To support you, we have dedicated units that ensure you are prepared for Parliamentary activities and Cabinet meetings. Similarly, our departmental communications team is available to assist you with a broad range of services, including speech writing, media relations, and strategic planning.

As we have already discussed briefly, we have a charged agenda ahead of us this fall with many active files. There are a number of important milestones on key military and defence procurements; a need to revisit resourcing for pay centre operations to address increased intake and a persistent backlog; and an opportunity to rethink the in Budget 2022. We will also continue to support other government departments in delivering on their key files such as Canada's Dental Plan and supporting the government with ongoing COVID-19 procurements. In addition, we have significant opportunities to support government-wide priorities such as greening government, indigenous reconciliation, advancing diversity and inclusion through supplier diversity, and eradicating forced labour from the Canadian supply chain. We will also work closely with the National Capital Commission on the future of the official residences portfolio and with Canada Post on addressing financial pressures and aligning with government priorities.

Our goal is to build a close, productive working relationship with you and your office. We will make available regular opportunities to discuss your priorities and needs, as well as briefing sessions on departmental business. Among the first things you may wish to discuss are the key files of the department and important decisions required over the coming months.

We will organize more detailed departmental briefings on many of these topics, based on your preferences on timing and pacing. Once again, welcome to the department. Our management teams are here to serve, and we look forward to working with you.

Yours sincerely,

Paul Thompson

Overview of Public Services and Procurement Canada

The department at a glance

Public Services and Procurement Canada’s vision is to excel in government operations. The department’s strategic outcome and mission is to deliver high-quality, central programs and services that ensure sound stewardship on behalf of Canadians and meet the program needs of federal institutions. PSPC serves federal departments and agencies as their central purchasing agent, linguistic authority, real property manager, treasurer, accountant, and pay and pension administrator. To fulfill this mandate, PSPC has nearly 17,400 employees and an annual gross budget of approximately $8.8 billion, of which approximately $4.6 billion is appropriated by Parliament and approximately $4.2 billion is revenue. With offices in the National Capital Region and across the country, the department achieves its mission and vision by conducting business under the following 4 core responsibilities and a range of internal services:

Purchase of goods and services

Government of Canada annual procurement amounts to approximately $35 billion. The department:

PSPC provides expert advice, guidance and support in:

Payments and accounting

PSPC collects revenues and issues payments, maintains the financial accounts of Canada, issues government-wide financial reports, and administers payroll and pension services across the Government of Canada.

On public service pay (Phoenix), the department has reduced the backlog of pay transactions to ensure that public servants are paid accurately and on time. While work is underway to develop a new pay system, PSPC continues working with departments and agencies to reduce intake, increase case processing capacity and productivity, and further stabilize pay administration through technology enhancements to the existing pay system.

The department:

Property and infrastructure

PSPC provides federal departments and agencies with office accommodation to over 267,000 federal employees in 1,521 Crown-owned and leased locations across Canada. Given the extensive use of remote work introduced due to COVID-19, the department is reviewing its space requirements and modernizing office environments to support more flexible use.

The department also maintains various assets including:

PSPC also provides contaminated site clean-up and environmental remediation, property appraisal/valuation services and engineering expertise to other government departments to help manage their assets.

Government-wide support

PSPC offers services to federal institutions and Canadians as the government’s linguistic authority and common service provider:

Internal services

PSPC operations are supported by a range of corporate services, including:

COVID-19 related measures

Number of Public Services and Procurement Canada employees

Located in 5 geographic regions across Canada and in the NCR:

Public Services and Procurement Canada portfolio organizations

Crown corporations

Canada Post Corporation
Canada Lands Company Limited
Defence Construction Canada
National Capital Commission

Adjudicative, regulatory and oversight bodies

Departmental plan summary

Background

The departmental plan is a mechanism of ministerial accountability, communicating departmental expenditure plans for the next 3 years, as well as an organization’s priorities, resource requirements and expected results. The plan is tabled annually in Parliament and published for all Canadians.

Status

The 2022 to 2023 Departmental Plan for Public Services and Procurement Canada was tabled in Parliament on March 2, 2022.

Priority 2022 to 2023 activities

The activities identified below summarize the department’s key plans, which are aligned by core responsibility.

Purchase of goods and services

Payments and accounting

Property and infrastructure

Government-wide support

Procurement Ombudsman

Key financial information

Budgetary planning information is as follows, for core responsibilities and internal services combined:

Hot issues

National shipbuilding strategy

Third shipyard selection process

In December 2019, the government announced its intention to add a third Canadian shipyard as a strategic partner under the National Shipbuilding Strategy to build icebreakers for the Canadian Coast Guard (CCG). Following an invitation to qualify (ITQ) process, Chantier Davie of Lévis, Quebec, was the only shipyard that moved to the request for proposal (RFP) and evaluation stage of the process. 

On June 8, 2022, the Government of Canada announced that it will begin negotiations with Chantier Davie towards an umbrella agreement to become the third strategic partner under the National Shipbuilding Strategy. Pending successful negotiations, an agreement is expected to be in place by the end of 2022.

Communications implications

The role of Chantier Davie in the National Shipbuilding Strategy has garnered significant media interest within Quebec and nationally, since the inception of the NSS in 2012.

Increasing budgets and project delays

Over the past 10 years, the National Shipbuilding Strategy has experienced ongoing project delays and budget increases. This is due to the fact that original budgets for large vessel construction projects were set many years ago and were guided by limited experience and projections. Recently, the COVID-19 pandemic has further impacted budgets and timelines. The Government of Canada continues to work closely with shipyards and industry to address ongoing challenges, including costs, estimated timelines and productivity.

Communications implications

This topic is covered regularly by national media and defence experts. The main criticisms are that the projects are all delayed and cost increases are out of control. The Department of National Defence and CCG lead on answering questions related project budgets and requirements.

Defence procurement

Future fighter capability project

In June 2017, Canada’s defence policy confirmed a fleet size of 88 advanced fighter aircrafts to replace the current CF-18s. The government launched a procurement process for the future fighter aircraft in December 2017. Officials conducted extensive industry engagement with suppliers to maximize the likelihood that Canada receives competitive proposals, and with Canadian industry to ensure that they are well positioned to participate in the procurement. 

On March 28, 2022, following a rigorous evaluation of the 2 remaining eligible proposals, Canada announced it would enter into the finalization phase of the procurement process with the top-ranked bidder Lockheed Martin. The Government of Canada continues to work towards a contract award in 2022, with deliveries to be confirmed following completion of the finalization phase.

Communications implications

This project has garnered significant national media interest nationally since it was launched in 2015. The recent conflict in the Ukraine has brought added attention to Canada’s military spending and defence procurement projects.

Commercial procurement

COVID-19: Long-term vaccine agreements and new vaccine formulations

Canada has secured COVID-19 vaccines from Pfizer, Moderna, Novavax and Medicago for 2022 and 2023, with options to extend into 2024. Some doses have been deferred from the initial agreements to 2022.

In addition to providing booster vaccine doses, the agreements provide flexibility to procure new second-generation COVID-19 vaccines adaptations, such as those to protect against mutations or variants of concern, and vaccines developed for younger populations.

Communications implications

As new formulations for COVID-19 vaccines receive regulatory authorization from Health Canada, there continues to be media interest in availability and cost of those doses. Communications messages are regularly updated, in coordination with Health Canada/Public Health Agency of Canada counterparts. Participation in Government of Canada press conferences to announce newly authorised vaccine formulations continues to be an option. In addition, vaccine manufacturers remain eager to publicly announce their new vaccine variants, and PSPC liaises with them regarding public communications.

National Dental Care Plan

Health Canada and other government partners have been working quickly to develop advice for the government about how best to implement the commitment to put in place a national dental care plan, including significant work with stakeholders and experts on the design of a new dental care program.

On July 25, 2022, Public Services and Procurement Canada, on behalf of Health Canada (HC) released a request for information (RFI) to industry seeking input to inform the development of the Canadian Dental Care Program. The RFI closed on August 22, 2022. PSPC and HC are currently reviewing, consolidating and analysing the responses.

Communications implications

The National Dental Care Plan has received significant media attention since it was announced, and that is expected to continue, given the significant political implications surrounding the national plan. For PSPC there is a significant amount of work to do to establish a service provider(s), and this is a major undertaking for the department. PSPC works regularly with HC to ensure communications messaging is aligned. When a contract is eventually awarded, this could be a high-profile ministerial announcement.

Guns Buy Back Program

On May 30, 2020, Prime Minister Justin Trudeau announced the Government of Canada had tabled new gun control legislation which includes a commitment to buy back newly prohibited firearms. The program is led by Public Safety Canada (PS), while Public Services and Procurement Canada will be leading the procurement project on PS’s behalf.

On July 13, 2022, Public Services and Procurement Canada issued a request for information, on behalf of Public Safety Canada, requesting industry feedback on the Buyback Program. The purpose of the RFI is to collect feedback from industry on best practices and capacities that could be used to support certain program activities that may not be performed directly by Government of Canada departments and agencies. No contract will be awarded as a result of this RFI, and participation in the RFI is not mandatory for suppliers wishing to compete any potential solicitation.

Communications implications

There has been significant media and industry attention on the buyback program since its announcement, and most of it has been neutral to negative in tone. This attention is expected to continue as the process to implement the program moves forward. PSPC works regularly with Public Safety to update communications messaging and develop appropriate responses to media inquiries.

Policy, Planning and Communications Branch and regional portfolio

Additional crossing in the National Capital Region

The work for an additional crossing between Ottawa and Gatineau has spanned the last decade and more, with multiple phases and iterations of studies. The objective of these studies was to gather information on alternatives to improve interprovincial transportation capacity, including heavy commercial vehicle traffic across the Ottawa River.

At this stage, Public Services and Procurement Canada and the National Capital Commission (NCC) are working in close collaboration to gather new information to assess the necessity and potential options for an additional National Capital Region crossing.

Communications implications

PSPC and the NCC work closely to develop communications messaging and respond to media calls.

Alexandra Bridge replacement project

The Alexandra Bridge is over 120 years old and is nearing the end of its lifecycle. Over the last few years, the state of the bridge has continued to deteriorate. This has and will continue to result in more frequent closures to perform the necessary rehabilitation and repair work to keep serving users. As part of a broader effort to improve interprovincial transportation in the NCR, the government mandated the replacement of the Alexandra Bridge in Budget 2019. To replace the Alexandra Bridge, which is expected to take 10 years, we will undertake the planning, impact assessment activities, design, procurement, construction of a new bridge.

Communications implications

There has been significant local media coverage with stakeholder groups arguing that the bridge should be maintained.

Lac Mégantic

On May 11, 2018, Transport Canada (TC) announced the Lac-Mégantic bypass project. As part of this project, TC mandated Public Services and Procurement Canada to acquire plots of land belonging to 43 different owners in Lac-Mégantic, Frontenac and Nantes. Some of these plots will only be leased and not purchased.

Communication implications

This file is generating interest from the media and the general public, particularly in the 3 municipalities and towns affected. PSPC is working with TC to align messaging and respond to media calls.

Real property

Portfolio plan/ Disposal of buildings

Update on what buildings will be disposed of in the NCR and what it means for PSPC's portfolio. Disposal of these properties to federal, provincial, municipal and community stakeholders, including Indigenous groups, provides opportunities to generate socio-economic benefits such as affordable housing, redesigned community or commercial space and meaningful opportunities for Indigenous participation and reconciliation.

Communications implications

Messaging has been prepared to explain the process going forward.

Future of work / return to work

Plans for return to work and what PSPC is doing to support other departments in the return to work efforts and what effect it will have on our portfolio.

Communications implications

PSPC works closely with Treasury Board of Canada Secretariat (TBS) to align messaging.

Pay

Pay/Phoenix

While progress has been made on stabilizing pay operations and the Phoenix pay system since its launch and roll out in 2016 to 2018, problems with public servants pay files persist. Media is not as focused on Phoenix as it once was, but the monthly dashboard, which is showing steady increases in both the backlog of cases not yet processed as well as the queue of financial transactions received since summer 2021, may generate a return of critical media stories.

Communications implications

There has been significant media, political and union attention on the Phoenix pay system since its launch and is negative in tone. This attention is expected to continue as public servants continue to experience pay issues. PSPC works directly with TBS to update communications messaging and develop appropriate responses to media inquiries.

Parliamentary Precinct

Future of Wellington Street

Public and media interest on the future of Wellington Street was high in the days following the illegal protests in Ottawa in early 2022. Interest has since turned to discussion of the use of the Emergencies Act . While coverage has subsided, federal and municipal legislators have pressed for the permanent closure of Wellington Street to vehicular traffic and several parliamentary committees have considered evidence on the issue. With additional committee meetings scheduled for the fall, the Government of Canada must take appropriate action to address governance, accessibility and security issues.

Communications implications

A communications plan is in development to support work on this file.

Top 5 media issues

Defence and marine procurement

Real property management

Parliament Hill rehabilitation

Interpretation services (Translation Bureau)

Covid-19 procurement

Forward planning communications opportunities: Fall 2022

September 2022

Marine procurement

September 17 (to be confirmed (TBC)), Seaspan lead: offshore oceanographic science vessel (OOSV): Keel laying and naming ceremony at Vancouver Shipyards. Minister should receive an invitation to attend from Seaspan.

Commercial procurement

Week of September 4 (TBC), news release (NR) for contract award for the Canadian Forces Superannuation Act Pension Fund waterlot remediation contract award: Awarded on August 23 for the Canadian Forces Sailing Association waterlot remediation project (part of Esquimalt Graving Dock), under the Federal Contaminated Sites Action Plan program. Contract of approximately $20M for dredging, removal of contaminated sediment and placement of clean sand. An Indigenous participation requirement (IPR) is required for this project. Stakeholders: Esquimalt Nation and Songhees Nation. Site work to begin in early fall 2022, completed by late-March 2023. An additional $3.5M will be allocated for the next 3 years to study and address uplands from that waterlot. NR, questions and answers.

For your information: Week of September 4 (TBC), Department of National Defence (DND) Canadian Forces base (CFB) alert site management contract award: DND and company lead: Potential event and NR with DND and company to announce the contract award for site management of CFB Alert. [Redacted]. DND to issue an NR. The company will also issue an NR to announce the contract. Contract value is of $139M over 16 years.

September 2022 (TBC), contract award for the Lunar Exploration Accelerator Program lunar rover: Canadian Standards Association lead with support from PSPC (products to be determined (TBD)).

Late September 2022 (TBC), CanadaBuys launch: official launch of the Government of Canada’s new electronic procurement solution, CanadaBuys. PSPC-led announcement/event.

Pay administration, Receiver General, etc

September 27 (TBC), NR online regulatory consultation system: Joint PSPC-TBS news release to announce online regulatory consultation system, a key component of the Canada Gazette’s modernization efforts, as well as the government’s commitment to providing a transparent and improved regulatory process. (NR, Support Media, Consumer magazines, web, videos, our stories)

Science and parliamentary infrastructure branch

September 21 (TBC), Labs Can cultural heritage science (CHS) renewal project: Minister of Agriculture and Agri-Food lead. As part of the CHS renewal project. This event is being led by Canadian Feed Industry Association, with PSPC support. Site blessing and ground-breaking ceremony to inaugurate the construction of new facilities at the Canadian Food Inspection Agency’s Sidney Laboratory, also known as the Centre for Plant Health, in North Saanich, British Columbia. Construction is expected to begin in fall 2022. (Ministerial quote in the news release of the Canadian Food Inspection Agency)

Policy, planning and communications

September 30, Truth and Reconciliation Day: Activities TBD

Translation bureau

September 22, International Sign Language Day: Again this year, the Translation Bureau is keen on putting forward the work done to communicate with Canada’s community of the deaf. An article on the Translation Bureau’s vibrant team of sign language interpreters will be published by PSPC’s proactive comms team. (Opportunity for ministerial quote card or statement)

Pacific region

Week of September 4 (TBC), NR to announce Sinclair Centre redevelopment: contract award: This is part of a broader strategy in Metro Vancouver to provide a central and accessible location as well as consolidate and modernize this site. NR will announce the contract award for the architect and engineering advisor, who will support the governance in planning, hiring the main construction company, and overseeing the project for the next decade. Other opportunities for announcements (for example, possibly with First Nations or other stakeholders) will follow once larger contracts are awarded and announced.

October 2022

Marine procurement

Mid to late October (TBC), CCG NR for Canadian coast guard ship (CCGS) Terry Fox Vessel Life Extension (VLE) contract award. CCG will lead. (Opportunity for ministerial quote in NR).

Fall 2022 (TBC), naval large tugs (NLTs) NLTs 1 and 2 acceptance: DND will lead on event. (Opportunity for ministerial quote in the NR).

Fall 2022 (TBC), medium icebreakers (MIB): acceptance of third icebreaker CCGS Vincent Massey—CCG will lead on event. (Opportunity for ministerial quote in NR)

Fall 2022 (TBC), third shipyard selection: announce the signing of an umbrella agreement with a third shipyard under the National Shipbuilding Strategy—PSPC will lead on an event.

Commercial procurement

Week of October 3 (TBC), DND event for operational clothing and footwear consolidated contract: $3.8B over a period of up to 20 years. DND lead with support from PSPC (TBC). Event to take place where the company is located in Saint-Jean-sur-Richelieu, Québec. Speech.

October 2022 (TBC), Moderna domestic supply agreement: announce signing of agreement with Moderna for supply of domestically produced vaccines (to be produced at Moderna’s future facility in Quebec). PSPC-led event, with participation from Health Canada and Science and Economic Development Canada (ISED).

Fall 2022 (TBC), tentative launch of the Supplier Diversity Program.

Real property services

October 14 (TBC), construction contract award for bridge deck replacement of the LaSalle Causeway: contract is valued at approx. $9.4M including risk and contingency with the total project cost at $14.7M. Construction is anticipated to begin.

November 2022

Defence procurement

November 2022 (TBC), light armoured vehicle reconnaissance surveillance system—first vehicle delivery. DND lead on products.

December 2022

Real property services

Winter 2022 to 2023 (TBC), completion of east end dock extension at Esquimalt Graving Dock: the project is valued at approximately $42M (TBC) and consists of extending section 3 of the graving dock by 36 metres and the dock floor is being refurbished; total length of the graving dock will be 395 metres. This will increase the service capacity of the dock by freeing up an estimated 200 section days of space for other vessels which amounts to almost $1M additional revenue annually and reduces DND’s repair and maintenance costs by more than a million dollars. (NR only).

Defence procurement

Winter 2022 (TBC), future fighter capability project: announce contract award for new fighter jets for the Royal Canadian Air Force. Joint DND/PSPC event.

Policy, Planning and Communications

Minister’s holiday message to employees: Activities to be determined.

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