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Ministers' Transition Binder—May 2025: Public Services and Procurement Canada

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Biographies

Arianne Reza, Deputy Minister of Public Services and Procurement

Arianne Reza

Arianne Reza was appointed Deputy Minister of Public Services and Procurement on November 2, 2023. Prior to that, she served as Associate Deputy Minister, beginning in August 2021.

In her role, Ms. Reza oversees key government internal services as part of the work Public Services and Procurement Canada (PSPC) does as central purchasing agent, real property manager, treasurer, accountant, pay and pension administrator, integrity advisor, common service provider and linguistic authority.

Previously, as the Assistant Deputy Minister for Procurement at PSPC, Ms. Reza was the senior official responsible for federal procurement. She oversaw 1,400 employees across Canada who procured billions worth of goods and services annually on behalf of over 100 federal departments and agencies. In response to the COVID-19 pandemic, Ms. Reza led the urgent procurement of critical goods and services to ensure the health and safety of Canadians, including vaccines and personal protective equipment.

Ms. Reza directed the development and implementation for the simplification of procurement practices. These efforts focused on building an accessible procurement system that drives value for money while advancing government socio-economic objectives, simplifying the procurement system for suppliers and client departments, and delivering results for Canadians. She is a member of the Organization for Economic Cooperation and Development’s Working Party of the Leading Practitioners on Public Procurement.

Ms. Reza has over 25 years of experience in the federal public service. She worked at the Canada Border Services Agency, where she held senior executive roles in regional and international operations and oversaw commercial and traveller border programs. She was also previously Special Advisor to the Associate Secretary of the Treasury Board and Special Advisor to the President of the Canada School of Public Service.

Ms. Reza holds a bachelor’s degree in psychology from Carleton University and completed the Advancing Women in Leadership Program at the Sprott School of Business.

Alex Benay, Associate Deputy Minister of Public Services and Procurement (Enterprise Pay Coordination)

Alex Benay

Alex Benay became Associate Deputy Minister of Public Services and Procurement (Enterprise Pay Coordination) in June 2023.

Prior to this appointment, Alex was a senior partner with Levio Business and Technology and Vice Chair of the National Arts Centre. From 2020 to 2022, he served as the Global Lead of Government Azure Strategy at Microsoft where he helped governments around the world adopt cloud technologies.

From 2019 to 2020, Alex was a partner with KPMG where he led the digital transformation of governments and Fortune 500 companies in the areas of technology, people and strategy.

Alex was a Deputy Minister at the Treasury Board of Canada Secretariat from 2017 to 2019 where he served as Chief Information Officer. In this role, he oversaw key information technology initiatives in service modernization, legacy system management, good governance, and open and transparent government.

Alex was also the President and Chief Executive Officer of the Canada Science and Technology Museums Corporation (Ingenium) where he oversaw the transformation of the country’s national museums. In addition, he is a former Global Affairs Canada executive.

Alex is the author of 2 books: Canadian Failures and Government Digital. He holds a bachelor of arts in history from the University of Ottawa.

Michael Mills, Associate Deputy Minister of Public Services and Procurement

Michael Mills

Michael Mills became Associate Deputy Minister of Public Services and Procurement Canada (PSPC) in December 2023.

As PSPC’s Reconciliation Champion, Michael supports the Department’s commitment to advancing reconciliation and increasing Indigenous participation in federal procurement.

Michael recently became Associate Deputy Minister Champion for the Universities of Regina and Saskatchewan. In this role, Michael works to strengthen collaboration between the Public Service and the universities by aligning areas of mutual interest such as research needs, providing content expertise, and engaging with key campus partners.

Prior to his appointment as Associate Deputy Minister, Michael held several leadership roles at PSPC, most recently serving as Assistant Deputy Minister for Procurement. Michael has instituted several components of strategic branch leadership, along with departmental and federal transformation. He has led large complex procurement projects, such as high-frequency rail and the Canadian Dental Care Plan while remaining focused on ensuring that PSPC’s mandate commitments and corporate priorities were followed, in the areas of greening, reconciliation, and diversity and inclusion.

In prior years, Michael assisted with the Department’s contribution to the Government’s pandemic response and served as Associate Assistant Deputy Minister for Procurement, and Associate Assistant Deputy Minister, Real Property Services.

Michael also worked as Vice-President of Investment for a federal Crown corporation called PPP Canada, where Michael and his team helped clients from all levels of government to structure public-private partnership transactions and to implement successful public-private partnership procurement strategies.

Prior to working at PPP Canada, Michael held various positions with Crown-Indigenous Relations and Northern Affairs Canada, Finance Canada and Innovation, Science and Economic Development Canada.

Michael holds a Bachelor of Arts in Political Science and Economics from the University of Regina and a Master of Arts in Economics from Queen’s University.

Public Services and Procurement Canada Senior Management

Deputy Ministers and associate deputy ministers

Arianne Reza
Deputy Minister

Alex Benay
Associate Deputy Minister

Michael Mills
Associate Deputy Minister

Acquisitions

Siobhan Harty
Assistant Deputy Minister (ADM), Defence & Marine Procurement

Dominic Laporte
Senior ADM, Procurement

Paula Folkes
Associate ADM, Defence & Marine Procurement

Mollie Royds
Associate ADM, Procurement

Assets and infrastructure

Mark Quinlan
Senior ADM, Real Property Services

Jennifer Garrett
Associate ADM, Science & Parliamentary Infrastructure

Nathalie Bertrand
Associate ADM, Real Property Services

Duncan Retson
Associate ADM, Science & Parliamentary Infrastructure

Payments and Accounting

Lucie Séguin
Senior ADM, Receiver General & Pension Government Services

Catherine Poulin
ADM, Departmental Oversight

Jean-François Lymburner
Chief Executive Officer (CEO), Translation Bureau

Corporate Services

Michael Hammond
Chief Financial Officer (CFO), Finance

Lorenzo Ieraci
ADM, Policy, Planning & Communications

Kiran Hanspal
ADM, Human Resources

Marc Brouillard
ADM & Chief Information Officer (CIO), Digital Services

Casey Thomas
Chief Audit, Evaluation and Risk Executive (CAERE), Office of the Chief Audit, Evaluation and Risk Executive

Paula Wilson
Senior General Counsel

Human Management Portfolio

Kim Steele
ADM and Chief Technology Officer (CTO), Solutions

Mathew Myre
ADM, Strategy and Integration

Teresa D’andrea
ADM and Chief Data Officer (CDO),Data Modernization

Annie Champagne
ADM, Pay Administration

Office of the Ombud of Mental Health

Mario Baril
Ombud for Mental Health

Office of the Procurement of Ombud

Alexander Jeglic
Procurement Ombud

Public Services and Procurement Canada Core Responsibilities

Overview of Public Services and Procurement Canada

Public Services and Procurement Canada at a Glance

Public Services and Procurement Canada’s (PSPC) mission is to provide high-quality services that support operations across Government. PSPC has over 19,000 employees and a current annual gross budget of $9.7 billion, of which $5.7 billion is appropriated by Parliament and $4.0 billion is revenue.

Acquisitions

The department:

Assets and Infrastructure

PSPC provides federal departments and agencies with office accommodation to over 288,000 federal employees in close to 1,500 Crown-owned and leased locations across Canada, totaling approximately 6.8 million square meters. With the adoption of a hybrid work environment, the department is reviewing its space requirements and modernizing office environments to support more flexible use.

The department manages:

Payments and Accounting

Human Capital Management

Government Services

Corporate Services

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

Public Services and Procurement Canada portfolio organizations

Partner department in portfolio: Shared Services Canada

Responsible for digitally enabling government programs and services. It does this by providing networks and network security, data centres and Cloud offerings, digital communications and IT tools to enable the public service to effectively deliver services to Canadians.

Crown Corporations
Canada Post Corporation
Canada Lands Company Limited
Defence Construction Canada
National Capital Commission
Adjudicative, Regulatory and Oversight Bodies

Office of the Procurement Ombud

Plays a crucial role in ensuring fairness, transparency, and accountability in federal procurement processes. Its key functions include: reviewing complaints, conducting investigations, providing alternative dispute resolution services, promoting best practices and raising awareness and understanding of procurement issues among suppliers and federal departments.

Payments in Lieu of Taxes Dispute Advisory Panel

Provides advice to the Minister of Public Services and Procurement and heads of Federal Crown Corporations in the event a taxing authority disagrees with the property value, dimension or effective rate applicable to any federal property.

Public Services and Procurement Canada Plans and Priorities

Public Services and Procurement Canada Core Responsibilities

As of March 2025, Public Services and Procurement Canada (PSPC) has approximately 19,000 employees. What do we deliver?

Acquisitions

In 2024 to 2025:

Assets and Infrastructure

Real Property
Engineering Assets
Parliamentary Precinct
Science Infrastructure

$3.7 billion since 2018 for the Laboratories Canada initiative working with 5 Science Hubs across Canada.

Payments and Accounting

Receiver General

Issues over 400 million payments annually on behalf of federal departments and agencies. The department managed cash flows of over $3 trillion each year.

Pensions

In 2024 to 2025 the department managed over 16.6 billion in pension payments to over 1 million active and retired members.

Human Capital Management: Pay Administration

Government Services

Translation Bureau

In 2024 to 2025:

Security and Oversight

In 2024 to 2025:

Other

Corporate Enablers

Public Services and Procurement Canada Legal Authorities

Department of Public Works and Government Services Act

The Department of Public Works and Government Services Act establishes the Department of Public Works and Government Services, named Public Services and Procurement Canada since 2016.

The legal name, Department of Public Works and Government Services, must be used for statutory instruments (for example, legislation, regulations, or Orders in Council) and in legal documents (for example, contracts) where there is an intention to create legal obligations or otherwise have legal effects.

Role of the Minister

The Department of Public Works and Government Services Act gives the Minister the authority to:

The Act also provides that the Minister is the Receiver General for Canada. Additional Acts give the Minister statutory powers related to responsibilities that are central to the operation of the Government as a whole and to support the functions of other federal departments and agencies. These include:

Defence Production Act

Part I of this Act gives the Minister the exclusive authority to buy or acquire ships and defence supplies and to construct defence projects. Section 10(2)b) permits the Minister to request that another Minister procure or construct some supplies or projects. The Defence Production Act applies to all government contracts that meet the Act’s definition of “defence contract”.

Part II of the Act restricts access to “controlled goods” (arms-related assets and technology). Only those persons who have been determined not to pose a security risk, pursuant to security assessments, can possess controlled goods.

Expropriation Act

Under this Act, an interest in land can only be expropriated when the interest is, in the opinion of the Minister, required by the Crown for a public work or other public purpose and only for a federal department or agency. Certain Crown Corporations, such as the National Capital Commission, have provisions in their Acts enabling them to request expropriation by the Minister under the Expropriation Act. Railway companies can also request that the Minister of Transport obtain an Order in Council directing the Minister responsible for the Act to expropriate lands that they have been unable to acquire on a negotiated basis.

Payment in Lieu of Taxes Act

This Act authorizes the Minister to make Payments In Lieu of Taxes to taxing authorities (provinces and municipalities) on federally owned property. It does so because the federal government is constitutionally exempt from provincial and municipal real property taxation.

In case of disagreement between a taxing authority and the Payment in Lieu of Taxes Program regarding property value, property dimension or effective rate applicable to any federal property, the Dispute Advisory Panel established under the Act makes recommendations to the Minister.

Seized Property Management Act

This Act gives the Minister the authority to provide consultative and other services to any person employed in the federal public administration or by a provincial or municipal authority in relation to the seizure, restraint, custody, management, forfeiture or disposal of property. The Act also gives the Minister the authority to manage property seized, restrained or forfeited under any act of Parliament or of the legislature of a province, or paid under subsection 18(2) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, and the authority to dispose of property when it is forfeited.

Surplus Crown Assets Act

This Act establishes the legal framework for the disposal of surplus material Crown assets. No department may dispose of surplus assets other than in accordance with the Act. Subject to terms and conditions that the Treasury Board of Canada may prescribe, a department may sell, exchange, transfer to another department, lease, lend, or otherwise dispose of or deal with surplus Crown assets. Departments and federal bodies may request the Minister to dispose of or deal with assets under the Act. All real property or immovables as defined in the Federal Real Property and Federal Immovables Act are excluded.

Some other acts that give the Minister responsibilities are:

Procurement

The Minister is responsible for acquiring, planning and organizing the provision of goods and services for departments. The Minister currently has the exclusive authority to acquire goods for departments (which has the same meaning as in section 2 of the Financial Administration Act). These exclusive authorities are subject exceptions for some departments, such as the Canada Revenue Agency and Shared Services Canada. Effective June 9, 2025, amendments to the Department of Public Works and Government Services Act will extend these exclusive authorities to services, including construction services (but not including legal services). Despite these exclusive authorities (sometimes referred to as a “monopoly”), the Minister has the authority to delegate authority to acquire goods and services to an appropriate minister under any terms and conditions that the Minister considers suitable. In anticipation of the expansion of the exclusive authorities relating to services, delegation letters have already been sent out by your predecessor.

To effectively and efficiently deliver on his or her responsibilities related to procurement, the Minister provides other departments and agencies contracting guidance, templates, standard clauses, and ready-made tools departments can use to procure the goods and services they require pursuant to delegations that have been issued to their respective Ministers. When departments use these tools—such as Supply Arrangements for the purchase of services—they do so under the authority of their own respective Minister further to the above delegation.

The Minister relies on the advice of departments and agencies when they are the technical authority on a requirement, and trusts they have done the proper due diligence when recommending a specific course of action to Public Service and Procurement Canada officials.

While the Minister has broad powers related to procurement, procurement processes are carried out by departmental officials. They ensure due diligence and compliance with established procurement processes that have been designed to respect existing laws, regulations, trade agreements, policies, and other requirements. Departmental officials ensure the integrity of the procurement process and will seek Ministerial approval in specific situations, namely when procurements are above the amounts that have been delegated to officials, or when Treasury Board of Canada approval is required.

Public Services and Procurement Canada Supply for 2025 to 2026

Mandate

The Government of Canada's Estimates process ensures that all spending aligns with Government priorities and receives parliamentary approval. The Main Estimates outline the budget for each department for the upcoming fiscal year. Supply bills are voted by Parliament to authorize the necessary funding. Supplementary Estimates are intended to provide additional funding throughout the year. They allow the Government to adjust spending priorities and ensure that its initiatives receive necessary funding. They present Parliament with spending requirements not included in the Main Estimates due to timing or urgent but unforeseen events, such as natural disasters.

Key Activities

As the fiscal year begins on April 1, Parliament annually approves interim supply of three-twelfths of the Main Estimates (representing the first quarter of the year) to provide government departments with sufficient cash flow to sustain operations while the Main Estimates are reviewed and full supply approved, normally in June as per the supply cycle. Organizations may request additional twelfths when justified, such as when greater expenditures are anticipated in the opening quarter. Under typical circumstances, Royal Assent of the interim supply bill is granted before April 1 of each year.

Following the dissolution of Parliament on March 23, 2025, all parliamentary business, including the business of supply, ended. Since the interim supply appropriations did not pass before Parliament was dissolved, the Government has been functioning on Governor General Special Warrants. Governor General Special Warrants are a temporary measure that authorizes payments urgently required for the public good and ensures that normal government operations can continue.

Public Services and Procurement Canada requested sufficient funding through the Governor General Special Warrants process to allow the department to operate without experiencing significant disruptions.

Partners and Stakeholders

The Estimates is an annual exercise managed by departments in collaboration with central agencies. The Treasury Board of Canada Secretariat oversees the preparation and review of the Estimates, ensuring alignment with Government priorities and policies, providing guidance to departments, and supporting Treasury Board Ministers in their decision-making. Finance Canada develops the federal Budget, which provides the economic context for the Estimates. The Privy Council Office supports the Prime Minister and Cabinet, ensuring that Government priorities and policies are reflected in the Estimates.

Key Considerations

Public Services and Procurement Canada‘s request for Governor General Special Warrants for the period of April 1 to May 15, 2025, was approved on April 1, 2025. The department subsequently submitted a second request that would provide funding from May 16 to June 29, 2025, which is currently pending Ministerial approval.

Once Parliament is reconvened, the Government will resume the normal supply process. This return involves the tabling of the Main Estimates and the introduction of the necessary supply bills (interim and/or full supply) for parliamentary consideration. At this point, the regular Estimates process is re-established, upholding the constitutional principle that public funds may only be spent with the approval of Parliament.

The Treasury Board of Canada Secretariat currently expects the Main Estimates to be tabled in May or June and will be providing confirmation to departments a week in advance. Public Services and Procurement Canada has already submitted the required documents for the Main Estimates to the Secretariat. Furthermore, a memo that details all critical items and the final page proofs will be provided to the Minister prior to tabling.

Portfolio Overview

Portfolio Agencies Heads

Canada Post

André Hudon

André Hudon

Chair of the Board of Directors of the Canada Post Corporation

 

Doug Ettinger

Doug Ettinger

President and Chief Executive Officer of the Canada Post Corporation

 

National Capital Commission

Maryse Gaudreault

Maryse Gaudreault

Chair of the Board of Directors of the National Capital Commission

 

Tobi Nussbaum

Tobi Nussbaum
Chief Executive Officer of the National Capital

 

Canada Lands Company Limited

Kaye Melliship

Kaye Melliship
Chair of the Board of Directors of Canada Lands Company Limited

 

Stéphan Déry

Stéphan Déry
President and Chief Executive Officer of Canada Lands Company Limited

 

Defence Construction Canada

Moreen Miller

Moreen Miller
Chair of the Board of Directors of Defence Construction Canada

 

Derrick Cheung

Derrick Cheung
President and Chief Executive Officer of Defence Construction Canada

 

Payments in Lieu of Taxes Dispute Resolution Advisory Committee

Gordon Daman

Gordon Daman
Chair and member
Payments in Lieu of Taxes Dispute Resolution Advisory Committee

 

Alexander Jeglic

Office of the Procurement Ombud

Alexander Jeglic
Procurement Ombud
Office of the Procurement Ombud

 

David Rabinovitch

David Rabinovitch
Deputy Procurement Ombud
Office of the Procurement Ombud

Canada Post Corporation

Mandate

The Canada Post Corporation, created in 1981 by the Canada Post Corporation Act (the Act), is an agent Crown corporation listed in Schedule III Part I of the Financial Administration Act.

Under the Act, Canada Post has the exclusive privilege to collect, transmit and deliver letters up to 500 grams within Canada, and a mandate to provide quality postal services to all Canadians, in a secure and financially self-sustaining manner.

Canada Post is at arm’s length, but reports to Parliament through the Minister responsible for Public Services and Procurement Canada. The Minister provides guidance to ensure that Canada Post’s overall direction aligns with the Government’s policies and priorities, which is normally communicated via an annual letter of expectations.

Key Activities

Canada Post delivers mail to every address in Canada, 17.6 million residences and businesses from coast to coast to coast. It maintains more than 978,000 collection points where mail can be deposited and Canada Post’s 62,300 employees handle almost 6.4 billion pieces of mail annually.

The Canada Post Group of Companies consists of Canada Post and its subsidiary, Purolator, which is 91% owned by Canada Post. In 2024, the Group of Companies had revenues exceeding $8.9 billion and employed over 76,000 people. Canada Post is the largest segment of the Group with revenue of $6.1 billion.

Partners and Stakeholders

Canada Post’s unions are key stakeholders. They include the Association of Postal Officials of Canada, the Canadian Union of Public Postal Workers, the Public Service Alliance of Canada / Union of Postal Communications Employees, and the Canadian Postmaster and Assistants Association.

Key Considerations

Policy

Canada Post operates within a policy framework that includes the rural moratorium on the franchising or closure of more than 3,000 corporate owned post offices (1994), a 2006 directive to restore rural mailbox delivery, the 2009 Canadian Postal Service Charter, and a prohibition on the conversion of door-to-door to community mailbox delivery (2017).

The Service Charter sets Canada Post’s service obligations and the requirement that postal of Canadians. It is also subject to review every five years. With the last one completed in 2018, a review of the Service Charter was due in 2023.

Financial

Canada Post’s ability to meet its Service Charter obligations in a financially self-sustaining manner is no longer feasible. Canada Post is at a precipice financially due to the decline in letter mail, the high cost of operations, and its declining market share in the parcel delivery industry. To address this, two short-term measures were put in place in 2025: a repayable cash injection of $1.034 billion and a stamp rate increase of $0.25 (25%).

Labour

Canada Post’s largest union, the Canadian Union of Postal Workers (CUPW), launched a national work stoppage on November 15, 2024. On December 13, 2024, the Minister of Labour appointed an Industrial Inquiry Commission (IIC) to examine the issues and to provide recommendations by May 15, 2025. The Canada Industrial Relations Board ordered Canada Post employees back to work and extended their collective agreement until May 22, 2025, when a work stoppage could reoccur.

In its submissions to the IIC, Canada Post highlighted its financial and operational challenges and the need for flexibilities in its collective agreements, and called for policy and regulatory reform. Conversely, CUPW argued that the IIC should not examine public policy questions, given its lack of public consultation, questioned the causes of Canada Post’s financial situation, and presented a different vision for Canada Post that is focused on expanding public services.

National Capital Commission

Mandate

The National Capital Commission (NCC) is a federal Crown corporation created by Canada’s Parliament in 1959 under the National Capital Act. It is the long-term planner and principal steward of significant public places, and a partner in the development, conservation and improvement of Canada’s National Capital Region (NCR).

The NCC manages and develops federal lands and assets in the NCR and manages public places that are unique to Canada’s symbolic, natural and cultural heritage. It owns and manages 11% of all land in the NCR, with a total replacement value of $2.2 billion, including six official residences, 1,000 buildings, 145 bridges (including the Champlain Bridge and the Portage Bridge), 425 km of parkways and pathways, Gatineau Park (361 km2), the Greenbelt (200 km2), 23 urban parks, and 65 commemorations and public art displays.

Key Activities

The NCC’s key activities are :

Urban planning and development

The NCC oversees the planning and development of federal lands in the NCR, ensuring these areas are used effectively and sustainably.

Heritage conservation

The NCC is involved in preserving and maintaining historic sites and buildings, ensuring that the cultural heritage of the capital is protected for future generations. For example, the NCC is responsible for Canada’s six official residences, including the Prime Minister’s Official Residence.

Environmental stewardship

The NCC manages green spaces, parks, and natural areas, promoting environmental sustainability and biodiversity within the NCR.

Public engagement and events

The NCC organizes and supports public events and activities that enhance the cultural and social life of the capital, including the Tulip Festival (led by the non-profit Canadian Tulip Legacy), weekend bike days, guided tours, Winterlude (led by Canadian Heritage), exhibitions, and community programs in the NCR.

Infrastructure management

The NCC is responsible for maintaining and improving infrastructure on federal lands, including pathways, bridges, and public facilities.

Partners and Stakeholders

The NCC collaborates with partners and stakeholders to fulfill its mandate, including:

Federal government departments and agencies

The NCC works closely with various federal entities to manage and develop federal lands in the NCR, particularly with Public Services and Procurement Canada on several key initiatives including interprovincial crossings and the Parliamentary Precinct redevelopment program.

Municipal governments

Collaboration with local municipalities is essential for urban planning, infrastructure development, and community engagement. As such, the mayors of Ottawa and Gatineau are ex-officio members of the NCC Board of Directors.

Indigenous communities

The NCC engages with Indigenous groups to ensure that their perspectives and rights are respected in the planning and development processes

Non governmental organizations

Partnerships with environmental, cultural, and heritage organizations help the NCC in its conservation and public engagement efforts.

Private sector

The NCC partners with private companies for development projects, infrastructure improvements, and event management.

Public and community groups

The NCC engages residents and community organizations to gather feedback and ensure its projects meet public needs and expectations.

Key Considerations

The NCC’s activities have broadened since its creation, resulting in potential overlaps with other government organizations at the federal, provincial and municipal level. Its legislative basis, however, has remained unchanged.

The NCC is mandated to regulate land use and design in the NCR through the Federal Land Use Design and Transaction Approval (FLUDTA) process. The National Capital Act requires all individuals and federal organizations to obtain NCC approval before undertaking projects if the project affects federal lands and/or federal buildings or if the project is on non-federal land but the proponent is a federal organization. Several proponents have highlighted the financial impacts of these requirements and expressed challenges navigating the process.

The NCC is responsible for the Long-Term Interprovincial Crossing Plan, which was approved by the Board of Directors in 2022. The Plan guides the NCC and partners to build a more efficient and sustainable transportation system. The 2024 Fall Economic Statement allocated $31.6 million over three years to the NCC to conduct feasibility studies for the Gatineau-Ottawa tram project. The NCC is also responsible for the Gatineau Park Master Plan (2021), which outlines conservation and planning goals for Canada’s second most visited park. This Plan calls for legislative protections and an update to the technical description of boundaries, which has been echoed by public and local politicians.

The NCC is also the custodian of the six official residences identified in the Official Residence Act, including 24 Sussex Drive, which has been unoccupied since 2015 due to health and safety concerns. In March 2025, the media reported that the former Prime Minister tasked the Minister of Public Services and Procurement to find a solution within the next year.

Official Residences

Mandate

The National Capital Commission (NCC) is responsible for the official residence portfolio, which includes six official residences:

The entire portfolio also includes 49 secondary buildings, and has a total gross area of about 25,000 square metres.

Key Considerations

Building conditions: overall

Over the past several years, the overall NCC asset portfolio has been found to be in poor condition. In 2017, the Office of the Auditor General found that while the NCC’s management practices were sound, there was “significant deficiency” in its asset maintenance and that the shortfall in resources would prevent it from properly restoring and maintaining all of its assets, including Canada’s official residences.

The 2021 Asset Portfolio Condition Report reiterated this concern by highlighting the deferred maintenance gap and identifying the requirement for an injection of $175 million over 10 years to address the deferred maintenance deficit for all six official residences. The report also found that the overall condition of the residence portfolio continued to deteriorate with only 24% of the assets considered to be in “good” condition, down from 34% in 2018.

The 2022 Fall Economic Statement allocated $332.6 million plus $28.4 million ongoing yearly funding to the NCC for protecting heritage assets (excluding 24 Sussex). Public Services and Procurement Canada is working with NCC to ensure this funding will address the deferred maintenance within the official residences.

Building conditions: 24 Sussex

24 Sussex Drive is the only main residence within the official residences portfolio that is in “critical” condition. While the residence has been unoccupied since 2015 given health and safety concerns, employees were relocated and it was officially closed by the NCC in spring 2023 to begin urgent abatement and decommissioning work.

With the abatement work at 24 Sussex now complete, the future of the residence has garnered public attention, including from previous Prime Ministers. Public Services and Procurement Canada is working with the NCC, the RCMP and Central Agencies on a plan for the future of the Prime Minister’s Residence.

In March 2025, media received a copy of and reported on a letter from the former Prime Minister directing the Minister of Public Services and Procurement to establish an advisory committee and prepare options regarding the location, functionality, cost and security of the future Prime Minister official residence by January 2026. This work would be completed in collaboration with the Privy Council Office and the RCMP. The media also highlighted the request for the proposal to include a plan to transfer all responsibility for the official residence beyond general maintenance from the NCC to Public Services and Procurement Canada.

Canada Lands Company Limited

Mandate

Canada Lands Company Limited (CLCL) is a self-financing federal agent Crown corporation that reports to Parliament through the Minister responsible for Public Services and Procurement. Established in 1956, CLCL's mandate is to hold, develop, and dispose of strategic surplus Government of Canada real property that it purchases at fair market value to optimize financial and community value. CLCL operates as the parent corporation with three subsidiaries: Canada Lands Company (CLC), Parc Downsview Park (PDP), and the Old Port of Montreal Corporation (OMPC).

Key Activities

CLCL’s activities focus on real estate development and attractions management:

CLC's activities are guided by principles of financial resilience, environmental sustainability, and social impact, aiming to deliver value and memorable experiences to Canadians. CLCL also ensures that development projects are conducted with extensive community consultation and collaboration.

Partners and Stakeholders

Federal Government

CLCL works closely with various federal departments and agencies to manage and dispose of surplus properties. It is a partner in the Federal Lands Initiative and a part of the National Housing Strategy, with Public Services and Procurement Canada and the Canada Mortgage and Housing Corporation.

Provincial and Municipal Governments

These partnerships are essential for aligning development projects with local and regional planning objectives.

Indigenous Groups and Community Organization

CLCL engages and collaborates with Indigenous partners and community organizations to ensure that development projects respect and incorporate Indigenous perspectives and rights, as well as community needs and aspirations. As of 2024, it has entered into agreements of various forms with six First Nations covering projects on five properties in Vancouver, Winnipeg, Ottawa, and Halifax.

Private Sector

CLCL collaborates with private developers and investors to enhance the value and impact of its projects.

Key Considerations

CLCL has a number of large development projects across Canada that are complex in nature. Their progress is influenced by external factors, such as the labour market, interest rates and economic growth.

For example, current projects include:

CLCL also supports the housing initiatives announced in Budget 2024 and has been encouraged to continue to work in close collaboration with Canada Mortgage and Housing Corporation, Public Services and Procurement Canada and Housing, Infrastructure and Communities Canada to pursue the development of affordable housing within the context of its various projects and those of its subsidiaries in order to help build more homes on public lands faster.

Defence Construction Canada

Mandate

Defence Construction Canada (DCC) is a Crown corporation within Public Services and Procurement Canada’s portfolio, and currently reports to Parliament through the Minister responsible for Public Services and Procurement. DCC assists the Government of Canada with military procurements and delivers defence infrastructure projects. Its aim is to meet the needs of the Department of National Defence and the Canadian Armed Forces for infrastructure, management or real property and environmental services by advising on, collaboratively planning, procuring and managing defence contracts.

Key Activities

DCC’s work covers a broad range of activities, from project needs planning to building decommissioning. The Corporation’s service delivery resources are organized among the following five service lines: Contract Services, Contract Management Services, Environmental Services, Project and Program Management Services, and Real Property Management Services.

DCC activities include demolishing underused or obsolete buildings; renovating and improving facilities on bases and wings, such as housing for military personnel; and building new infrastructure for major Canadian Armed Forces programs. It is self-financing, operating on a fee-for-service basis. DCC delivers approximately $1.1 billion in contract payments on a yearly basis and manages a contract portfolio worth $9.6 billion.

Some of its most noteworthy projects include the following:

Partners and Stakeholders

According to the Defence Production Act, DCC is restricted to providing services to and for the Minister of National Defence, the Department of National Defence and the Canadian Forces.

Budget 2024 encouraged DCC to support the Government’s housing commitments by working in collaboration with National Defence and Public Services and Procurement Canada to identify opportunities to build more housing.

Key Considerations

DCC expects to face significant generational turnover with over one-fifth of construction workers on track to retire within ten years. To remain an employer of choice, address the demographic realities of the future labour market and retain top talent, DCC has instituted a comprehensive Human Resources Strategy.

DCC is taking actions to support business opportunities for Indigenous Peoples and to achieve long-term, sustainable and meaningful economic benefits for Indigenous Peoples. It developed a joint Indigenous Procurement Strategy to enhance the Department of National Defence’s efforts to engage Indigenous businesses and is implementing its Indigenous Relation Policy. In 2023-24, it surpassed the Government of Canada’s goal to direct at least 5% of spending contracts to indigenous businesses and reached 8.3%.

DCC is also exploring ways to support the government’s commitment to build more homes with federal lands and assessing the impacts of a potential increase in military spending.

The Office of the Procurement Ombud

Mandate

The Office of the Procurement Ombud was created in 2006 as a neutral organization to promote fairness, openness, and transparency in federal procurement, and helps resolve contracting disputes between businesses and the federal government. The Office operates independently from Public Services and Procurement Canada and reports directly to the Minister. The Office provides an independent avenue for stakeholders to have procurement concerns addressed. Departments, however, are not required to participate in these services and the Procurement Ombud’s recommendations are non-binding.

Key Activities

The Office’s key responsibilities include:

Partners and Stakeholders

The Office of the Procurement Ombud works with independent suppliers, federal departments, and others interested in federal procurement.

While the Office operates independently from Public Services and Procurement Canada, the Financial Administration Act does not provide for the Office of the Procurement Ombud to be a separate entity. Therefore, many of its corporate services, including the funds management function, are carried out by Public Services and Procurement Canada and governed by a Memorandum of Understanding, which is signed by the Procurement Ombud and the Deputy Minister of Public Services and Procurement Canada.

Key Considerations

The Office of the Procurement Ombud has included, in public reports, recommendations for legislative and regulatory amendments to the Public Works and Government Services Act and the Procurement Ombudsman Regulations regarding the authorities of the Procurement Ombud. More specifically, changes would permit the Ombud to recommend compensation greater than 10 percent of the value of the contract, compel federal departments to provide the Procurement Ombud with documentation for reviews, and enable the Procurement Ombud to review complaints related to the Procurement Strategy for Indigenous Business set-asides program. Given these would require adjustments to the Act and Regulations, the Office of the Procurement Ombud is engaging with the department to work through the proposed changes.

In his 2023 to 2024 Annual Report, the Procurement Ombud called for a government-wide Vendor Performance Management Program and the creation of a federal Chief Procurement Officer. While these recommendations would impact Public Services and Procurement Canada, they extend beyond the department given their government-wide nature.

Finally, the Office of the Procurement Ombud has also called for additional funding for its work in recent public reports. Given its allocated budget has remained static for over 15 years, the Procurement Ombud has expressed that budget constraints and inflationary pressures have made it increasingly difficult to serve Canadian suppliers and federal departments effectively. In addition, there has been an increasing demand for the Office’s services. While reviews requested by the Minister and Parliamentarians over the past year have been funded through a one-time funding allocation provided by Public Services and Procurement Canada, the Procurement Ombud continues to raise the need for a permanent funding solution.

Payments in Lieu of Taxes Dispute Advisory Panel

Mandate

Under section 125 of the Constitution Act, 1867, the Government of Canada is exempt from local taxation. Nonetheless, since the 1950s, the federal government has shown its commitment to supporting local communities and sharing local costs by making Payments in Lieu of Taxes (PILT) to the municipalities where it owns real property. Payments are calculated on the basis of values and rates that would apply to federal property if it were taxable.

The mandate of the Payments in Lieu of Taxes Dispute Advisory Panel (PILT-DAP or the panel), as directed in the Payment in Lieu of Taxes Act, is to provide advice to the Minister to resolve disputes about payments in lieu of taxes between the federal government and local taxing authorities (e.g. municipalities, provinces and territories).

The panel has the mandate to provide advice pertaining to the resolution of disputes about property value, property dimension or effective rate used to calculate payments in lieu of taxes, or about a claim for a late payment supplement.

The panel also provides advice to the heads of Crown corporations who exercise their own discretion concerning their respective corporation's payments in lieu of taxes.

Key Activities

The PILT-DAP provides advice to the Minister when there is a disagreement between a taxing authority and the federal government regarding property value, property dimensions, or the effective tax rate applicable to federal properties. The panel reviews applications from taxing authorities that contest the amount of payments in lieu of taxes. These applications must specify the property in question, the tax year, and the grounds for the review. The panel may conduct hearings to consider the disputes. A hearing panel, drawn from the advisory panel members, manages the hearing process and ensures fair consideration of the issues raised. After reviewing the disputes and conducting hearings, the panel provides recommendations to the Minister on how to resolve the disputes. These recommendations are based on their assessment of the property value, dimensions, and applicable tax rates.

Partners and Stakeholders

Taxing Authorities

Local taxing authorities, such as municipalities, provinces and territories, are primary stakeholders. They may request reviews and dispute resolutions regarding the payments they receive for federal properties within their jurisdictions.

Federal Organizations

Various federal organizations and Crown corporations that own properties subject to PILT are involved. These entities make payments to local taxing authorities and may be part of disputes reviewed by the panel.

Key Considerations

Governor in Council Appointments

As per the Payment in Lieu of Taxes Act, the PILT-DAP is to consist of at least two members from each province and territory with relevant knowledge or experience. Reaching full membership on the Panel has been challenging given the specific knowledge and experience required, as well as the compensation paid to members, which has not been reviewed since 2004. This has resulted in PILT-DAP experiencing systemic geographic vacancies. Given there are no provision in the Act to allow members to serve beyond the expiry of their term, if a member is not re-appointed before their term expires, the position is left vacant and ongoing cases are halted. The Department is exploring options related to the remuneration of members.

Concerns from some municipalities

A number of municipalities, including Ottawa and Chelsea in the National Capital Region, have raised concerns regarding the amount of payment provided by the Government of Canada through PILT for specific properties. Municipalities that disagree with amounts determined by the PILT-DAP can turn to the Courts for reconsideration.

Key Files

Canada and United States Relations

Asylum Seekers, Detainees and Borders

Mandate

Public Services and Procurement Canada, in its role as a common service provider, will continue to support the Canada Border Services Agency, the Royal Canadian Mounted Police, Immigration, Refugees and Citizenship Canada, Health Canada, the Privy Council Office, and Global Affairs Canada for procurements related to asylum seekers, immigration detention and borders.

Key Activities

Public Services and Procurement Canada has led several procurements over the last few years, on behalf of federal departments, to manage a surge in asylum seekers. The procurements were for a wide variety of goods and services including, for example, accommodations, guard services, social support services, transportation, temporary infrastructure, generators, and other equipment. There was significant public attention on the Roxham Road, Quebec, entry point, as well as on the DevCentre accommodations contract.

Public Services and Procurement Canada is supporting the Canada Border Services Agency for procurements related to detention of high risk detainees, which became necessary following a decision from provinces to withdraw from agreements to house these detainees in provincial prisons.

More recently, the Canada Border Services Agency, the Royal Canadian Mounted Police, Immigration, Refugees and Citizenship Canada, Health Canada, the Privy Council Office, and Global Affairs Canada have identified additional procurements related to border control and a potential surge in asylum seekers. These requirements have arisen recently as a result of the political context with the United States and have been identified as high priority and in some cases urgent. Public Services and Procurement Canada is in communication with all departments and is ready to provide procurement and leasing support, as needed.

Public Services and Procurement Canada is working with client departments to use standard competitive procurement practices to the greatest extent possible in order to reduce risks and obtain best value for money on procurements related to asylum seekers, detainees and borders. Several of the procurements, however, have taken place under urgent timelines, and as a result some were awarded without competition. In all cases, proper processes were followed.

Partners and Stakeholders

Public Services and Procurement Canada continues to support client departments including the Canada Border Services Agency, the Royal Canadian Mounted Police, Immigration, Refugees and Citizenship Canada, Health Canada, the Privy Council Office, and Global Affairs Canada for procurements related to asylum seekers, immigration detention and borders. These departments are responsible for managing their programs, providing funding, and defining requirements for the procurements.

Key Considerations

Given strategic considerations and the urgency of requirements, Public Services and Procurement Canada is called upon to devote significant attention and prioritization to supporting procurements related to asylum seekers, immigration detention and borders.

The Canada Border Services Agency and Public Safety Canada cannot predict the volume of asylum seeker influx into Canada with any level of certainty. Plans therefore need to be prepared for a range of scenarios, including an emergency scenario of mass influx. Public Services and Procurement Canada is supporting procurement requests, and adding flexibility on scope for these procurements wherever possible. There is a risk that there may be a need for urgent procurements given fluidity of the situation.

The accommodation operations program run by Immigration, Refugees and Citizenship Canada, is only a temporary federal program, with program approvals and funding being obtained for short periods of time and with little advance notice. This has resulted in urgent procurement requests, and inability to establish procurements with optimal timeframes or prices. Presently, the program is intended to be closed out by September 2025 and it is unknown at this time as to whether there is any potential for further extension.

Procurement of United States Goods and Services

Mandate

Over the past three fiscal years, Public Services and Procurement Canada, in its role as a common service provider, has awarded an average of approximately $1.3 billion per year in contracts on behalf of federal departments and agencies to suppliers located in the United States (US). This value excluded contracts awarded to Canadian-based suppliers that are subsidiaries of US companies and contracts under the US Foreign Military Sales program.

On February 1, 2025, the US Administration issued an Executive Order to apply tariffs on imports from Canada “to address the flow of illicit drugs across the US northern border”, which launched a series of tariffs and retaliatory tariffs between Canada and the US.

[Redacted]

Key Activities

On February 1, 2025, the US announced that effective February 4, 2025, a tariff rate of 25% would apply on all imports of goods from Canada with the exception of a 10% tariff on energy products. These tariffs came into effect on March 3, 2025. On March 6, 2025, the US announced a tariff reprieve applicable to Canadian exports that are compliant with the Canada-United States-Mexico Agreement (CUSMA), which remains in effect as of May 12, 2025. The US announced further tariffs on March 12, 2025 (25% on Canadian steel and aluminum products), and April 3, 2025 (25% on Canadian automobiles).

In response, Canada imposed 25% tariffs on $30 billion of US goods on March 4, 2025. A planned expansion to an additional $125 billion in imports from the US, as well as potential nontariff measures, was paused on March 6, 2025. On March 13, 2025, however, Canada proceeded with 25% reciprocal tariffs on a list of products totalling $29.8 billion. On April 9, 2025, Canada imposed 25% tariffs on select vehicles imported into Canada from the US.

In response to US steel and aluminum tariffs, on March 22, 2025, Public Services and Procurement Canada publicly posted a letter from the Minister of Government Transformation, Public Services and Procurement encouraging federal suppliers to prioritize steel, aluminum and other inputs from Canada and other reliable trade partners in their work under federal government contracts, wherever feasible, and to promote this practice among subcontractors. [Redacted].

[Redacted]

Public Services and Procurement Canada continues to monitor the trade situation with the US in consultation with provincial and territorial counterparts, [Redacted].

Partners and Stakeholders

Key partners and stakeholders on the response to potential US tariffs, such as any potential non-tariff measures, include the Privy Council Office, Global Affairs Canada, and the Department of Finance.

Key Considerations

Frequent changes in the US approach to tariffs continues to present uncertainty. Canada and the US are both parties to the World Trade Organization Agreement on Government Procurement. [Redacted].

Public Services and Procurement Canada is able to track information on the contracts it awards to US suppliers based on the address provided during registration in the department’s Electronic Procurement System. However, data regarding the origin of the goods and services provided by suppliers are limited. Efforts are underway to improve data collection and quality.

[Redacted]

Acquisitions

Procurement policy

Information Technology and Professional Services Procurement
Mandate

Public Services and Procurement Canada is committed to transforming and modernizing how the department procures professional services, notably with respect to the various high volume tasks and solutions-based tools in place, to enhance efficiency and transparency, and to foster innovation in government procurement processes while ensuring value for money for Canadians.

Key Activities

Budget 2023 committed to a reduction in spending on consulting and professional services, including Information Technology (IT) services. The decision to outsource professional services is based on multiple factors including the nature and duration of the activity and the availability of specialized skills within the public sector.

The renewal of professional services contracting within Public Services and Procurement Canada has been ongoing for several years and is supported by the development and phased implementation of various tools and initiatives such as the digitalization of procurement.

PSPC has developed a Transformation Action Plan that responds to the need to simplify existing mandatory Methods of Supply for professional services, and that addresses all recommendations from over seven audits and reviews completed between May 2023 and March 2025. The Transformation Action Plan consists of action items across six key areas of focus and includes reporting against milestones and timelines.

Between fall 2023 and winter 2025, key intra- and inter-departmental initiatives were completed to support the modernization of the procurement of professional services:

As Public Services and Procurement Canada modernizes its mandatory Methods of Supply for the procurement of professional services, increasingly stringent conditions are being placed by the department on the use of existing vehicles such as the Task-Based Informatics Professional Services supply arrangements.

Partners and Stakeholders

Other Government Departments

Federal departments, agencies, and Crown corporations are users of mandatory Methods of Supply, which are procurement vehicles that allow client departments to solicit competitive bids from a pool of pre-qualified Supply Arrangement holders for professional services.

Private Sector

Industry is a key stakeholder in the implementation of the necessary changes and Public Services and Procurement Canada engages regularly with industry through various channels, including the Supplier Advisory Committee.

Other Jurisdictions

Public Services and Procurement Canada completed an interjurisdictional benchmarking analysis to uncover promising approaches from other jurisdictions including the provinces of Ontario and Quebec, as well as the governments of the United Kingdom, Australia and the United States, all of whom share similar challenges associated with professional services procurement. The intelligence gathered from this analysis is being used to inform improvements to professional services procurement.

Key Challenges

In recent years, use of professional services particularly in the management and IT space has been the subject of increasing Parliamentary and public interest.

The Parliamentary Budget Officer estimated that the cost of task-based IT contractors in 2022 to 23 across the four departments with the greatest spending was between 22 and 25.7 per cent higher than their public sector equivalents.

Public Services and Procurement Canada is promoting a transition to greater use of a solutions-based procurement approach that focuses on the desired outcome rather than how to achieve it (task-based). Work is underway to define a modernized suite of procurement tools to be integrated with the department’s Electronic Procurement Solution system for greater operational efficiency. This will allow the Government to better leverage the expertise of industry, and reduce its own delivery risks, while creating opportunities to drive innovation.

Over the past year, Public Services and Procurement Canada has taken concrete actions to strengthen oversight on all professional services contracts falling under its authority, and will continue to institute measures and controls on new and existing professional services contracts to strengthen contract management practices and actively engage with other departments and agencies to ensure that these new measures are implemented quickly and efficiently.

Procurement Strategy for Indigenous Businesses
Mandate

Federal procurement is an important lever for increasing socio-economic benefits for Indigenous businesses and Peoples. The Indigenous business sector is also a key driver of wealth in Indigenous communities and in closing the socio-economic gaps between Indigenous Peoples and non-Indigenous people.

Key Activities

Five Percent Target

To create more opportunities for Indigenous businesses to succeed and grow, Public Services and Procurement Canada, Indigenous Services Canada and the Treasury Board of Canada Secretariat are implementing approaches to ensure that at least 5% of the total value of federal contracts are awarded to businesses owned and controlled by Indigenous Peoples. In 2023 to 2024 the Government of Canada awarded $35 billion in contracts to businesses, with $1.25 billion (6.15%) going to Indigenous businesses. Additional efforts are needed for Public Services and Procurement Canada to meet the target as the department awarded $143 million (3.4%) of the total value of its procurements to Indigenous businesses in 2023 to 24.

Modern Treaties and Nunavut Agreement

There are currently 25 modern treaties, 22 of which contain procurement obligations. The department works with Indigenous Modern Treaty Partners to establish plans and measures to implement those provisions. It also provides support to procurement officials involved in procurement projects subject to modern treaties and self-government agreements to help them meet these obligations.

The Nunavut Agreement is a Comprehensive Land Claim Agreement that contains procurement obligations and the requirement for Canada to develop its procurement policies in close collaboration with Nunavut Tunngavik Incorporated. Public Services and Procurement Canada continues to provide procurement services, advice and guidance on Nunavut Settlement Area procurements.

Procurement Strategy for Indigenous Business

Public Services and Procurement Canada supports Indigenous Services Canada in implementing the Procurement Strategy for Indigenous Business (PSIB), including ensuring that eligible procurements are leveraged. It aims to increase the number of suppliers that are at least 51% owned and controlled by an Indigenous person or joint ventures majority owned and controlled by an Indigenous business bidding for, and winning, federal contracts. Contracts awarded under PSIB are a key part of meeting the 5% target. Under the PSIB program, businesses submitting bids must attest to meeting the Indigenous business definition at the time of submission and throughout the contract, with their certification subject to audits by Indigenous Services Canada at any time.

Partners and Stakeholders

Public Services and Procurement Canada, Indigenous Services Canada and the Treasury Board of Canada Secretariat continue to build external partnerships that will help meet the 5% target. Organizations involved include: the Assembly of First Nations, the Canadian Council of Indigenous Business, the Council for the Advancement of Native Development Officers, Inuit Tapiriit Kanatami, the National Aboriginal Capital Corporations Association, the National Indigenous Economic Development Board, and the Métis National Council.

Key Challenges

Results to date show that while the Government of Canada is overall achieving the 5% target, Public Services and Procurement Canada itself must significantly increase procurement efforts to align with this objective. Stronger action and intensified collaboration with stakeholder departments will be critical to expanding opportunities for Indigenous businesses.

Questions have arisen in recent months, including at parliamentary committees, about benefits to Indigenous partners in joint ventures and Indigenous misrepresentation in the PSIB program. To address these concerns, Indigenous Services Canada is reviewing all businesses listed in its Indigenous Business Directory to strengthen the directory's integrity. Additionally, Public Services and Procurement Canada is taking action to strengthen oversight of procurement processes to better deter, detect, and respond to impropriety—including in Indigenous procurement.

Defence procurement and major projects

Defence Procurement Review
Mandate

The Defence Procurement Review was established in December 2023 to deliver concrete and actionable recommendations to improve and reform how the Government procures and sustains defence capabilities. Public Services and Procurement Canada (PSPC) is leading the review with key federal departments, and has regularly engaged with industry, industry associations, research and academic institutions, and allied nations.

The review is being led by a working group at the Assistant Deputy Minister level and falls under the established governance for defence procurement. Review efforts are focused on three pillars of work:

Key Activities

Recommendations were provided to decision makers in late 2024. Concurrently, efforts and major initiatives are underway including:

The development of strategic partnerships with Canada’s defence industry is being led by PSPC. The first was announced in November 2024 with L3Harris MAS and the F-35 Joint Program office to investigate requirements for an F-35 airframe depot. Subsequently, CAE has also been identified as a strategic partner for Future Fighter Lead in Training.

A Defence Industrial Strategy is being developed under DND leadership. In tandem, a Ministerial CEO forum is being stood-up to enhance strategic planning and leveraging of Canada’s domestic defence industrial base.

Efforts to modernize PSPC’s Contract Security Program are under way to better posture Canada’s defence industry base to more effectively compete for work in a classified domain.

The Defence Procurement Review continues to provide analysis and advice on changes to the defence procurement ecosystem as outlined below:

Acquisition Pathways are being developed for specific procurement situations or commodity types. These are intended to provide increased speed, flexibility and predictability to decision-making.

Exploring opportunities to enable additional flexibilities for defence procurement through amendments to Defence Production Act, including by providing clarity on when to solicit bids and when to proceed with limited tendering or sole sourcing, and on the use of authorities for critical mineral and commodity stockpiling, multilateral procurements and strategic partnerships.

Accelerating the Acquisition of Innovations by enhancing processes and programs to bring innovative defence technologies into service for the Canadian Armed Forces and allied militaries.

Partners and Stakeholders

Federal partners for the Defence Procurement Review include the Department of National Defence, Innovation, Science and Economic Development Canada, the Treasury Board of Canada Secretariat and Justice Canada. Other federal partners with an interest in the Review include Natural Resources Canada (stockpiling of critical minerals), Global Affairs Canada (foreign policy and export strategy) and the Canadian Commercial Corporation (government-to-government sales and export strategy).

Industry stakeholders include the Canadian Association of Defence and Security Industries, the Aerospace Industries Association of Canada and individual firms. Think tanks, such as the Canadian Global Affairs Institute, and academics with a focus on defence issues (Philippe Lagassé and Elinor Sloan), have been consulted on the review.

The Defence Procurement Review has also consulted with international allies including the European Union, the United Kingdom, France, Australia, the Netherlands, Germany, the United States, as well as NATO.

Key Considerations

Culture Change in Government

There is an ingrained culture of risk aversion across defence procurement partner departments and central agencies. A whole-of-government focus and approach is required to challenge the existing status-quo with an emphasis on expediency in order to meet the moment.

The new United States Administration and North Atlantic Treaty Organization

The new US Administration has pressed North Atlantic Treaty Organization (NATO) countries to meet and exceed the two percent defence spending targets. To achieve this in the timeframes being discussed would require significant infusion of capital, streamlined procurement processes and oversight, and an acceptance of enhanced levels of risk.

Geo political developments between the United States and allies

Forced Canada to re-assess potentially new partnerships amongst NATO members.

The new United States Administration Tariffs Measures

The US Administration has subjected tariffs to nearly all trading partners, including Canada. As a result, there could be significant economic damage to our economy and making enhanced defence spending and associated investments more challenging. Canada has imposed retaliatory tariffs and should be prepared to respond with corresponding measures as a result. The impacts to supply chains are still being assessed and monitored as it relates to defence requirements.

National Shipbuilding Strategy
Mandate

The National Shipbuilding Strategy (NSS) is a long-term commitment to renew the vessel fleets of the Royal Canadian Navy (RCN) and Canadian Coast Guard (CCG), create a sustainable marine industry and generate economic benefits for Canadians.

The NSS consists of three distinct pillars: construction of large vessels (more than 1,000 tonnes of displacement); construction of small vessels (less than 1,000 tonnes of displacement); and vessel repair, refit and maintenance projects.

Key Activities

Since 2012, the Government awarded $36.35 billion in NSS contracts (including $1.17 billion to small and medium businesses), which is estimated to contribute $2.8 billion annually to Canada’s gross domestic product. and create or maintain approximately 21,400 jobs annually. Canadian shipyards have so far delivered eight large and 34 small vessels to the RCN and the CCG.

Large Vessels

Irving Shipbuilding Inc. has delivered five Arctic and Offshore Patrol Ships to the RCN, with the sixth ship launched in December 2024 for sea trials. Work is underway on a seventh and eighth ship for the CCG. The shipyard is also responsible for the construction of 15 River-class destroyers for the RCN. On March 3, 2025, the River-class destroyer Implementation (build) contract, valued at $8 billion, was awarded for the construction and delivery of the first batch of ships (ships 1 to 3)—the future His Majesty’s Canadian Ship (HMCS) Fraser, HMCS Saint-Laurent, and HMCS Mackenzie—and the early procurement of select long-lead items for the second batch (ships 4 to 6).

Seaspan’s Vancouver Shipyards Co. Ltd. has delivered three Offshore Fisheries Science Vessels to the CCG and launched the Offshore Oceanographic Science Vessel in August 2024 for sea trials, with delivery expected in 2025. Work continues on two Joint Support Ships for the RCN, with the first launched in December 2024 and scheduled for delivery in 2026. The shipyard is also building a Polar Icebreaker, with delivery expected in 2031, and progressing design work on up to 16 Multi-Purpose Icebreakers for the CCG.

Chantier Davie Canada Inc. was awarded a $3.25 billion contract in March 2025 to build the PolarMax, a new icebreaker for the CCG, with delivery expected in 2030. The shipyard is also advancing the design work on six Program Icebreakers for the CCG and is designing and building two ferries for Transport Canada.

Small vessels

Small vessels delivered under this pillar include 18 search and rescue lifeboats for the CCG, with construction ongoing on the 19th and 20th vessels, as well as two Naval Large Tugs for the RCN, with construction ongoing for the remaining two.

Repair, refit and maintenance

Work under the third pillar includes ongoing Halifax-class frigate upgrades to extend their service life until the River-class destroyers are operational. Additionally, in-service support is being provided for approximately 100 minor warships and auxiliary vessels.

Partners and Stakeholders

Five key departments play a central role in achieving the Strategy’s defence and marine objectives. Public Services and Procurement Canada oversees procurement, solicitation, contracting, and vendor performance. The Department of National Defence, Fisheries and Oceans Canada (for the CCG), and Transport Canada define requirements, analyze costs and options, secure policy approval, and manage projects and budgets. Innovation, Science and Economic Development Canada administers the Industrial and Technological Benefits Policy, ensuring economic benefits are leveraged from resulting contracts.

Canada has established strategic partnerships with Irving Shipbuilding, Vancouver Shipyards, and Chantier Davie for large vessel construction. Small vessels projects are competitively procured among other Canadian companies, excluding the three designated strategic shipyards. Vessel repair, refit, and maintenance projects are awarded through open requests for proposals, including the three strategic shipyards.

Key Considerations

Shipbuilding is complex, and original budgets for large vessel projects were set years ago with limited data. The Government applies lessons learned to improve future budget and timeline projections, working closely with shipyards to address cost, timing, and productivity challenges.

The NSS continues to evolve, strengthened by the Icebreaker Collaboration Effort (ICE) Pact Memorandum of Understanding signed in November 2024 with Finland and the United States. The ICE Pact aims to accelerate icebreaker production, strengthening the marine industries of all three nations, and enhance technical cooperation and information sharing to meet global demand for icebreakers. For Canada, the ICE Pact presents new opportunities for the shipbuilding sector by leveraging shared expertise and capabilities developed under the NSS, while promoting a key role for Canadian shipyards and supply chains.

River-class Destroyer Project
Mandate

As part of the National Shipbuilding Strategy (NSS), the River-class Destroyer (RCD) Project will replace the Royal Canadian Navy’s (RCN) Iroquois-class destroyers and Halifax-class multi-role patrol frigates with a single class of ships capable of meeting multiple threats on both the open ocean and the highly complex coastal environment. This project will equip the RCN with 15 new state-of-the-art warships to bolster Canada’s naval capabilities at home and abroad, for decades to come. Public Services and Procurement Canada’s role is to establish and manage the acquisition contracts for the River-class Destroyers on behalf of Canada.

Key Activities

On March 3, 2025, Canada announced the implementation contract award to Irving Shipbuilding Inc. (ISI) for the construction of the RCD.

With an initial value of $8 billion (including taxes) intended to fund the first 6 years of construction, this contract supports the construction and delivery of the initial three ships as well as the development and delivery of necessary training, spares, and maintenance products required to operate and support the ships in service. The total cost to build and deliver the first three ships has been estimated at $22.2 billion (excluding taxes). This estimate includes the costs that will be paid to ISI through the implementation contract, as well as costs associated with the delivery of equipment, systems and ammunition that Canada will be acquiring to bring the first three ships into service.

RCD construction will extend over approximately 25 to 30 years. Delivery of the first RCD, the HMCS Fraser, is expected in the early 2030s, with the final ship expected by 2050. A land-based test facility, named HMCS Assiniboine, will be constructed at Hartlen Point, Nova Scotia, and will be used for testing, integration trials and training.

Partners and Stakeholders
Key Considerations

There is a pressing need to replace the aging Halifax-class. Growing maintenance demands and technological obsolescence increases the risk that the RCN will be unable to respond to Government of Canada priorities.

Global supply chain disruptions, exacerbated by geopolitical issues, could impact the availability of critical components and the overall cost of the project.

While much of the ship platform systems (for example, hull, mechanical, electrical) are common to the parent Type 26 design, the combat system requires significant integration work. This design work must be completed on schedule to allow construction to take place on time. Software integration work will also need to progress at pace with the build efforts.

Given the complexity and significant cost of the project, continuous oversight and management of cost drivers are required to maintain overall affordability.

Canadian Patrol Submarine Project
Mandate

Through the Canadian Patrol Submarine Project (CPSP), the Government of Canada intends to replace its current fleet of Victoria-class Submarines with up to 12 conventionally powered, diesel-electric submarines. Parallel procurements will also provide the training, infrastructure and in-service support needed to ensure the effective and continued operation of these critical platforms for the Royal Canadian Navy.

For the CPSP, Public Services and Procurement Canada is the contracting authority and will be the lead with respect to the procurement process, including all industry engagements between the Government of Canada and the supplier community.

Key Activities

A Request for Information (RFI) was issued on September 16, 2024, to obtain feedback from industry on key project elements, including but not limited to: High Level Mandatory Requirements of the envisaged platform; in-service support; training; and infrastructure requirements needed to support the future fleet. Initial responses were received on November 18, 2024. Initial analysis of responses is complete and the Government received sufficient information to consider the project’s next steps to ensure first of class submarine delivery by no later than 2035.

Partners and Stakeholders

The Department National Defence (DND) is the client and technical authority for the project. The Royal Canadian Navy is responsible for defining the requirements of the future Canadian Patrol Submarine. DND must also provide the budget for the project and, at this time, it remains unfunded. Innovation, Science and Economic Development Canada leads the implementation of the Industrial and Technological Benefits Policy. Indigenous Services Canada provides guidance related to maximising Indigenous participation. Global Affairs Canada provides guidance on government-to-government relations and geopolitical strategic considerations.

Key Considerations

Canada’s key submarine capability requirements will be stealth, lethality, persistence and Arctic deployability, requiring the submarine to have extended range and endurance. Canada’s new fleet will need to provide a unique combination of these requirements to ensure that Canada can detect, track, deter and, if necessary, defeat adversaries in all three of Canada’s oceans. Industry responses to the Request for Information have confirmed that no existing platform meets all of the Royal Canadian Navy’s high-level mandatory requirements. In view of this information, the Royal Canadian Navy is revisiting its needs.

To avoid a gap in Canada’s submarine capability, and in consideration of an average seven-year build timeline, a contract must be awarded no later than 2028 to allow for the delivery of the first replacement submarine no later than 2035. Based on past complex military procurements and timelines associated with known traditional procurement practices, achieving key milestones will be challenging. Schedule challenges are compounded by the need to engage Canadian industry, including Indigenous businesses and communities, to ensure the required enablers are in-place to effectively accept delivery of the new platform.

To meet demanding timelines and minimize operational risks for the Royal Canadian Navy, it is suggested that the most effective method to ensure timely delivery of the future fleet is to acquire submarines from a foreign supplier. Depending on the platform that is selected, this may present a challenge in maximizing benefits to Canadian industry on the acquisition. This challenge is mitigated by the intent to perform in-service maintenance and support domestically, thereby dramatically expanding the current submarine in-service support and infrastructure enterprise in Canada.

Personnel availability, including the loss of suitably qualified and experienced personnel due to gaps in sustainment activities, as well as retention of talent in direct competition with other marine industries, represent significant challenges facing the project. The Royal Canadian Navy will need to address this challenge by executing a strategy that serves to attract and retain talent for the management, operation and the continued support of the future fleet.

Polar Icebreaker Project
Mandate

The Canadian Coast Guard (CCG) is mandated to provide icebreaking, search and rescue, environmental response, navigation aids, and science-related services. In keeping with this mandate, and to increase Canada’s operational capability and year-round presence in the High Arctic, the Government decided in 2021 to launch construction of two Polar Class Icebreakers as part of the National Shipbuilding Strategy (NSS). The first will be built at Vancouver Shipyards (VSY), while the other will be built at Chantier Davie Canada Inc. (CDCI) in Lévis, Québec.

The construction of the two Polar Icebreakers is projected to support approximately 300 jobs at both shipyards, and 2,500 jobs across the marine supply chain. Once built, these Polar Icebreakers will be the largest vessels in the CCG fleet.

Key Activities

Vancouver Shipyards

Under the construction engineering contract, functional design is completed and production design is underway. Under the long lead items contract, subcontractor factory acceptance tests are underway for items required earlier in the production schedule. Over 95% of the long lead items subcontracts have also been issued by the shipyard.

A Build Contract of $3.15 billion was awarded to VSY on March 7, 2025, for the construction of one polar icebreaker for the CCG. Construction has begun and the ship is expected to be delivered by September 2031.

Chantier Davie Canada Inc.

In November 2023, CDCI acquired Helsinki Shipyard Oy in Finland, now known as CDCI Nordic Yard, which has significant experience in constructing various types of icebreaking vessels. At that time, CDCI also acquired the PolarMax design, which had been previously developed at Helsinki Shipyard. Subsequently, in June 2024, CDCI submitted an unsolicited proposal to build the PolarMax design as their Polar Icebreaker for the CCG. An Ancillary Contract was awarded to CDCI in September 2024 to explore the suitability of PolarMax and the potential to deliver a vessel in 2030 using a hybrid domestic-international build strategy. With this strategy as a driver, negotiation of a Shipbuilding Contract was conducted in February 2025 and a contract was awarded in early March 2025.

Partners and Stakeholders
Key Considerations

Global supply chain disruptions, exacerbated by geopolitical issues, could impact the availability of critical components and the overall cost of the projects. Additionally, potential short-term challenges in workforce availability, particularly skilled trades, engineering personnel, and technical experts could impact project schedules.

Icebreaker Collaboration Effort Pact
Mandate

The Icebreaker Collaboration Effort (ICE) is a trilateral partnership between Canada, the United States, and Finland to strengthen marine industries and accelerate the production of Arctic and polar icebreakers. The first initiative of the ICE Pact focuses on jointly designing and building best-in-class icebreakers by sharing expertise, resources and research and development. Public Services and Procurement Canada is the lead department in Canada for the ICE Pact and works in partnership with other federal departments and agencies.

As part of the ICE Pact, Canada will be able to leverage expertise and capabilities developed under the National Shipbuilding Strategy (NSS) while also establishing a key role for Canadian shipyards and supply chains.

Key Activities

A Memorandum of Understanding (MOU) was signed in Washington, DC, on November 13, 2024, by former Minister of Public Services and Procurement Jean-Yves Duclos, former United States Department of Homeland Security Secretary of State Alejandro Mayorkas, and Finland’s Minister of Economic Affairs, Wille Rydman.

Each country has identified a Trilateral Coordinator at the Assistant Deputy Minister level and supported the establishment of four working groups to develop a trilateral strategy focusing on exchanging technical expertise and information to enhance Arctic and polar icebreaker capabilities, collaborating on workforce development, partnering with ally nations to supply best-in-class icebreakers, and fostering innovation, research and development to support future activities in the Arctic and polar regions.

Request for Information (RFI): All three countries have launched RFIs to gauge industry’s interest and irritants in terms of collaboration in the shipbuilding industry, and around opportunities and challenges related to the four areas of work identified in the MOU. Canada’s RFI is open for input until May 16, 2025. Once all three countries have analyzed and compared the RFI results, the next step will be to determine how to identify participating shipyards and suppliers by August 10, 2025, as committed in the MOU.

National Coordinators and Working Group Meeting: The second meeting of the three National Coordinators will take place in Ottawa from June 11 to 12, 2025. This meeting will focus on advancing key areas of cooperation and identifying tangible outcomes from the workplan.

Partners and Stakeholders

Internal partners:

External stakeholders that will be engaged as part of ICE Pact:

Key Considerations

The immediate challenge is to identify the capability requirements to be met through the ICE Pact and determine whether any legislative or regulatory barriers need to be removed so that partners can work collaboratively across borders, including with industry partners.

The United States Administration released an Executive Order on April 9, 2025, on “Restoring America’s Maritime Dominance” through shipbuilding, which includes a requirement that within 90 days of the date of Order the Secretary of Transportation, the Secretary of Homeland Security and the Commandant of the Coast Guard develop a strategy to secure arctic waterways and enable prosperity in the face of evolving arctic security challenges. While the United States Administration is committed to the ICE Pact and has stood up a new Maritime Security and Industrial Capacity directorate at the White House National Security Council to oversee the ICE Pact and shipbuilding, the implications of the Executive Order for ICE Pact will need to be determined through ongoing collaboration with partners.

Firearms Compensation Program
Mandate

In December 2023, the Government of Canada launched a competitive process to procure services for the collection, storage, validation, verification and destruction of firearms in support of a mandatory compensation program of assault-style firearms that were prohibited on May 1, 2020.

As the common service provider, Public Services and Procurement Canada is responsible for conducting the procurement on behalf of Public Safety Canada and establishing contracts.

Key Activities

On May 1, 2020, the Government of Canada announced a prohibition on more than 1,500 models and variants of assault-style firearms, such as the AR-15. Since then, approximately 500 additional variants of these firearms have also been prohibited. These firearms can no longer be legally used, imported, or sold in Canada.

The estimated volume of prohibited firearms held by businesses is within the range of 10,000 to 15,000, and the estimated volume held by individuals is within the range of 125,000 to 175,000. An amnesty order is in place until October 30, 2025, for businesses and individuals to properly dispose of banned items.

Public Services and Procurement Canada, on behalf of Public Safety Canada, is leading a competitive process to secure destruction services for the disposal of banned firearms, which could include shipping/collection, storage, validation and destruction. The competitive process is comprised of two components: one Request for Proposal for the Business Phase, which includes stock from resellers such as sporting goods stores, and a subsequent Request for Proposal for the Individuals Phase.

On September 26, 2024, Public Services and Procurement Canada awarded a contract for up to $4.5 million (before taxes) for one year and a one-year option for the Business component of the program. The name of the company will remain confidential for security reasons.

A draft Request for Proposal for the Individuals component of the program was sent directly to three pre-qualified suppliers on November 29, 2024. The final Request for Proposal was sent to the qualified suppliers on December 17, 2024, and closed on January 24, 2025. The process is expected to yield two contracts: one for firearm collection and destruction near police jurisdictions, and another for remote areas via mobile collection units. The contracts are expected to be awarded once the necessary funding approvals are secured. The names of the companies will remain confidential for security reasons.

Under the Individuals component, Public Services and Procurement Canada is also developing internally a comprehensive Case Management System. The system is designed to track the progress of claims, facilitate communication between participants and the program administrators, and ensure that individuals receive the proper compensation for their firearms.

A July 2025 Dry Run is expected to be held for the Individuals Phase of the program, with a pilot in mid-September followed by a launch in November 2025.

Partners and Stakeholders

Public Services and Procurement Canada works with Public Safety Canada and the Royal Canadian Mounted Police. Public Safety Canada is the client and technical authority and manages the project.

Key Considerations

For parts of the population, this program is very unpopular. There are legitimate security concerns that need to be and are being addressed through the program and the procurement process.

The capacity of the to-be-determined contractor to deliver results in the desired timeframe dictated by the amnesty order may represent a challenge. The 2024 amnesty order, which protects businesses and individuals who were in lawful possession of one or more of the newly prohibited firearms from criminal liability for unlawful possession, is set to expire on March 1, 2026. It may require an extension to allow for completion of the Individuals Phase of the program.

Assets

Federal Properties

Housing
Mandate

Budget 2024 announced the Public Lands for Homes Plan, with the aim of unlocking 250,000 housing units by 2031 by leveraging public lands. Budget 2024 called for a review of federal properties to identify potential sites that would be suitable for housing and list them on the new Canada Public Land Bank. Budget 2024 also provided $500 million dollars to Public Services and Procurement Canada to establish a Public Lands Acquisition Fund, which would allow the department to purchase land from other orders of government.

Public Services and Procurement Canada plays a leadership role in leveraging underutilized and surplus properties for housing in the federal government. Budget 2024 also provided the Department with $53 million from 2024 and 2025 to 2029-2030 to establish a Centre of Expertise to support this work.

Key Activities

Public Services and Procurement Canada launched the Canada Public Land Bank on August 25, 2024, with an initial 56 properties, representing 25,000 potential housing units. The Bank now has 90 properties listed, representing approximately 42,000 housing units (as of April 22, 2025). To support the Canada Public Land Bank, the Minister of Public Services and Procurement wrote to departmental and Crown Corporation custodians seeking a list of their underutilized properties to be assessed for housing potential.

Public Services and Procurement Canada, along with the Canada Lands Company, Housing, Infrastructure and Communities Canada, and the Canada Mortgage and Housing Corporation, evaluated 597 properties from 16 custodians for housing potential. Of these, 381 were deemed unsuitable for housing, while 216 were worthy of a more in-depth assessment.

Public Services and Procurement Canada is currently assessing the entire federal real property portfolio for underutilized properties. A preliminary analysis will be available by summer 2025.

Partners and Stakeholders

Key partners and stakeholders for unlocking underutilized and surplus properties include:

Government Partners (federal organizations and crown corporations): The Department is working closely with Housing, Infrastructure and Communities Canada, Canada Lands Company, Canada Mortgage and Housing Corporation, Crown Indigenous Relations and Northen Affairs Canada, as well as central agencies

Provincial, Territorial, Municipal Partners: The Department is collaborating with provincial, territorial and municipal governments across Canada given their responsibility and jurisdiction over permitting approvals, assessments, municipal services, zoning regulations, and more. Intergovernmental engagements have taken place at various levels. Numerous engagements with municipalities have been facilitated through the Federation of Canadian Municipalities

Indigenous Rights Holders: The Government will honour its Section 35 obligations including those related to asserted or established rights. Engagement and consultations are taking place

Non-market Housing Sector: Housing, Infrastructure and Communities Canada is leading on engagement with the non-market housing sector and is providing intelligence gathered to Public Services and Procurement Canada

Industry: There is ongoing collaboration with Innovation, Science and Development Canada as they have conducted extensive consultations as part of their Industrial Strategy for Homebuilding. Lessons learned from these consultations as well as established linkages with internal and external stakeholders are important inputs to the way forward

Public Engagement: To ensure broad input, Public Services and Procurement Canada launched the Call for Housing Solutions in August 2024, a web-based questionnaire designed to solicit general views on the challenges, opportunities, and solutions for developing public lands as housing

Key Considerations

Reluctance of departments to release lands and lack of financial incentives: Custodian departments often rely on revenue from land sales to support their operating budgets. Offering land at a discount (or selling at a market price below the asset’s net book value) creates a financial loss for custodians.

Lengthy and complex federal due diligence requirements: The federal land disposal process is subject to various legal and Constitutional obligations, including Section 35 of the Constitution Act (duty to consult Indigenous peoples), the Official Languages Act (consultation with Official Language Minority Communities), the National Capital Commission Act, the Species at Risk Act, and the Impact Assessment Act. In addition to these legal requirements, there are Treasury Board policy due diligence obligations, such as asset condition assessments and heritage assessments, which further extend the process. Historically, these requirements have contributed to a lengthy process that could take up to nine years, although recent efforts have reduced this timeline to under three years.

Pressure to deliver on multiple policy objectives simultaneously: There is a strong desire to ensure housing developments on public lands meet a range of goals such as affordability, accessibility, and environmental sustainability (greening). These compounded requirements can reduce market interest in public lands, making it more difficult to attract developers (especially for affordable housing)

Municipal and provincial barriers (zoning, permitting, and infrastructure readiness): Rapid land development must be supported by municipal zoning approvals, permitting processes, and availability of critical infrastructure (e.g. water, wastewater, and roads). These responsibilities lie primarily with provinces, territories, and municipalities, making intergovernmental coordination essential

Office Portfolio Reduction Plan
Mandate

Public Services and Procurement Canada is the federal government’s administrator of real property and is responsible for approximately 6.1 million square metres of office space across Canada. As a custodian of federal real property, Public Services and Procurement Canada works to continually assess office portfolio functionality, condition, environmental impact, use, and financial performance.

Key Activities

Budget 2023 directed Public Services and Procurement Canada to present a detailed proposal to optimize the physical footprint of its office portfolio. Subsequent analysis indicated that with adoption of unassigned seating by default and based on a hybrid work model, space reduction of up to 50% of the office portfolio was possible over ten years. Budget 2024 then provided the department with $1.1 billion over ten years ($1.6 billion over twenty years) in “invest to divest” funding for the Office Portfolio Reduction Plan to pursue this 50% reduction target and achieve an associated $4.4 billion in projected savings over ten years.

To chart the way forward, Public Services and Procurement Canada has developed an Office Portfolio Reduction Plan Implementation Plan that outlines the strategic actions required to right-size the office portfolio over the next ten years. The Plan identifies key programs of work, and will be updated over time to reflect changes in client space requirements, employee growth, or any new and related Government direction.

Public Services and Procurement Canada has also stood up a new service line focusing on accelerating the disposal of surplus and underutilized properties that will enable Public Services and Procurement Canada to realize Office Portfolio Reduction Plan efficiencies and savings and support the Government’s housing priorities.

Partners and Stakeholders

All client departments and agencies have a shared responsibility with Public Services and Procurement Canada that is established through the Accommodation Management Framework. Public Services and Procurement Canada is responsible for managing the quality, quantity, and location of office spaces to align with clients’ program requirements and ensure the best value to the Crown. Concurrently, clients must confirm space requirements and develop space optimization, consolidation, and modernization strategies in consultation with Public Services and Procurement Canada to efficiently use office space. This collaborative model aims to balance both parties' needs. Success of the Office Portfolio Reduction Plan Implementation Plan will depend upon broad cooperation across government from all parties.

Shared Services Canada is a key stakeholder in office space optimization efforts, playing a crucial role in ensuring that information technology infrastructures are effectively deployed to support office needs.

The Office of the Chief Human Resources Officer within the Treasury Board of Canada Secretariat plays a pivotal role in defining the parameters of the future workplace, establishing policies and guidelines that shape how work is conducted across government departments and agencies. This includes overseeing the implementation of the hybrid work model and the Direction on Prescribed Presence in the Workplace, which aims to bring greater fairness and consistency to the application of hybrid work, ensure departments ability to perform as organizations by building stronger teams and cultures, contribute to better service delivery for Canadians, and reinforce their confidence in public service.

The Office of the Chief Information Officer within the Treasury Board of Canada Secretariat serves as the lead for the government's security policy, ensuring that security measures across all departments and agencies are robust and consistent. The Office of the Chief Information Officer 's leadership is pivotal in maintaining a secure environment that supports government operations and protects sensitive information.

Key Considerations

Recent developments have impacted Office Portfolio Reduction Plan projections for achievable reductions and associated savings. These include growth in the number of employees that require office accommodation, the updated Directive on Prescribed Presence in the Workplace, as well as revised direction regarding the transfer of surplus assets—at a nominal value—to the Canada Public Lands Bank to support the Government’s housing agenda.

As a result of these developments, the Office Portfolio Reduction Plan is now projecting a reduction of approximately 33% over the ten-year period (34% if reductions already achieved in 2023–2024 are included), with associated operations and maintenance savings of approximately $2.45 billion over the first ten years.

Public Services and Procurement Canada remains committed to the 50% reduction target and is exploring opportunities for further reductions. The department will work with other custodial departments and agencies to explore government-wide space optimization opportunities and undertake a review of the current funding model to ensure that all clients are incentivized to help seek reductions. Securing buy-in from across the public service on the effort required to meet stated reduction targets will be key.

Changes in future Government priorities (for example, amendments to the Directive on Prescribed Presence in the Workplace or the creation of new programs) may require additional future accommodation requirements that will impact Public Services and Procurement Canada’s ability to reach stated targets.

Delays in the implementation of projects could result in loss of funding as the current funding structure prevents reprofiling. In addition, lack of funding to address modernization and deferred maintenance within existing assets may impact operational efficiency and space optimization efforts.

National Capital Region Projects
Mandate

Public Services and Procurement Canada is carrying out a number of major rehabilitation projects in the National Capital Region, and continuing work towards conserving Canada’s heritage by rehabilitating and restoring places and buildings of national significance (other key projects, such as the Alexandra Bridge Replacement Project, as well as the Parliamentary Precinct’s Centre Block Rehabilitation and Block 2 Redevelopment, feature in separate notes).

Key Activities

Supreme Court of Canada Building Rehabilitation: This building was built at the end of the 1930s and has never been rehabilitated. Building systems are past their useful life and do not meet building code standards or client needs, representing a significant risk to Supreme Court of Canada operations and reputational risk to Canada. The Supreme Court of Canada will be moved to the West Memorial Building in 2026 to allow for rehabilitation of the building. The project team is revising its implementation strategy by updating cost estimates to reflect current market conditions, adjusting the project scope to meet its budget, implementing a phased project delivery approach to achieve greater cost certainty, and assessing innovative delivery models to allow a suitable distribution of risks with the contractor.

West Memorial Building: This project is a full rehabilitation of a vacant heritage building and interior fit-up to provide interim accommodations for Supreme Court of Canada Building occupants. The West Memorial Building will be modernized by summer 2026 to meet building codes and preserve heritage elements. Work includes rehabilitation of the heritage structure; replacement of mechanical, electrical and security systems; modernization of information technology, multimedia and security systems; and improving seismic protection. Structural work is complete, while mechanical/electrical and fit-up activities are underway on the building.

Government Operations Center: The Sir Leonard Tilley Building C-Wing is a stand-alone five-storey structure built in 1991 for occupancy by the Communications Security Establishment Canada, which has since relocated elsewhere. The project is to fit-up client spaces for Public Safety Canada and Shared Services Canada operation centres, offices and other amenities to support a 24/7 facility function. The project is currently finishing the construction phase with a completion in spring 2025.

Les Terrasses de la Chaudière Modernization: Built between 1975 and 1978, this asset requires significant recapitalization due to the age and condition of its building systems and to meet federal accommodation standards. The Les Terrasses de la Chaudière Modernization Project currently includes two major capital projects: the Envelope Replacement Project, which consists of the replacement of the exterior walls of the complex to address health and safety risks associated with the failed brick veneer, and the Modernization of 15 floors in the complex to comply with GCworkplace standards. The Envelope Replacement Project achieved a significant milestone with the completion of 1 Promenade du Portage tower in March 2025. The other towers will be completed by 2027.

Lester B. Pearson Rehabilitation Project: Built between 1970 and 1973 and designated as a Classified federal heritage building, this asset requires significant recapitalization due to the age and condition of its building systems, and to meet federal office accommodation standards. This Project consists of the phased renewal of the complex (five towers) to provide cost effective, modern and efficient workspaces. The first tower was completed in 2021; the second and third towers are planned to be completed in 2026 and 2027; and the fourth and fifth towers are expected to be formally descoped from the current project in winter 2025 and 2026, to allow work already underway in other towers to continue while remaining within current Project Authorities.

Portage III Asset and Workplace Renewal Project: The Portage complex was built in the mid-1970s and is designated as a recognized heritage asset. It is at the end of its useful life and requires significant recapitalization to replace base building systems, upgrade the structural components of the building, comply with building codes, and modernize the workplace to meet current standards. The Asset and Workplace Renewal Project consists of the phased renewal and fit-up of the nine-tower complex. The project is currently in its construction phase in seven of the towers, with the two remaining towers currently being leveraged as swing space. Planned project completion is in 2029.

The Energy Services Acquisition Program (ESAP): ESAP is leading one of North America’s first conversions of a public district energy network from steam to a low-temperature hot water heating system. Cooling is being transitioned from steam-driven to electric chillers. This will generate savings of almost half a billion dollars between 2026-2055 and will reduce GHG emissions by 92 per cent when compared to 2005 baselines. The project is presently in its construction phase. Most of the work will be substantially completed by October 2025; however, the Gatineau Energy Center is scheduled for substantial completion by fall 2026.

Partners and Stakeholders

Government departments and organizations: the National Capital Commission, the Canadian Radio-television and Telecommunications Commission, Indigenous Services Canada, Crown-Indigenous Relations and Northern Affairs Canada, Shared Services Canada, the Canada Revenue Agency, Global Affairs Canada, and Parks Canada’s Federal Heritage Review Office.

Democratic institutions: the Supreme Court of Canada, the House of Commons, and the Senate.

Local and municipal partners: Hydro Quebec, OC Transpo, the Société de transport de l’Outaouais, the City of Gatineau and the City of Ottawa.

Key Considerations

Key challenges common to most major large projects in the National Capital Region include managing cost overrun and reduced value of available funding; managing delays and ensuring timely delivery of projects and their components, including through descoping projects; and preventing building system failures, which may result in health and safety concerns and the interruption of operations.

Parliamentary Precinct

Parliamentary Precinct Long Term Vision and Plan
Mandate

The Parliamentary Precinct campus comprises 40 Crown-owned buildings 29 of which have a federal heritage designation. It includes Parliament Hill, as well as the three city blocks facing the Hill between Elgin and Bank streets.

Public Services and Procurement Canada is the custodian and the lead for planning, redevelopment, and operations of the Parliamentary Precinct. The redevelopment program is underway and is guided by a Long Term Vision and Plan (LTVP), which is executed in rolling five-year programs of work.

Key Activities

Approximately $5.4 billion has been invested in the Precinct, which has created around 80,000 jobs (person-years of employment) to date.

The following major projects are currently in planning and execution in support of the LTVP:

Centre Block & Parliament Welcome Centre: The rehabilitation remains on track with an estimated cost of $4.5-$5 billion and a targeted date of reopening in 2032. Construction efforts are currently focused on the structural build, and 100% design development is targeted for fall 2025.

Block 2 Redevelopment: Block 2 is key to providing permanent parliamentary office accommodations. The project is advancing and has achieved 50% schematic design with 100% schematic design completion targeted for fall 2025. Construction activities began in fall 2024 and are focused on site preparatory work.

A National Space for First Nations, Inuit and Métis Peoples: In March 2025, Canada and Indigenous leaders signed a Letter of Intent to further advance the creation of a national space for First Nations, Inuit and Métis within the Precinct at 100 Wellington Street and 119 Sparks Street. Crown-Indigenous Relations and Northern Affairs is the federal lead and Public Services and Procurement Canada continues to support the design and construction. Planning is also underway to establish a dedicated space for the Anishinàbe Algonquin Nation, located between the two buildings.

An updated LTVP is nearing completion and would guide transforming the Precinct into an open, accessible, safe, secure and integrated parliamentary campus.

Partners and Stakeholders

Parliamentary Partners: Senate of Canada, House of Commons, Library of Parliament and the Parliamentary Protective Service.

Other key partners: the Privy Council Office, Crown-Indigenous Relations and Northern Affairs Canada, National Indigenous Organizations and the Anishinàbe Algonquin Nation, Canadian Heritage, the Cities of Ottawa and Gatineau, Ottawa Tourism and Tourisme Outaouais, the Sparks Street Mall Authority, the Federal Heritage Buildings Review Office and the National Capital Commission.

International Network of Parliamentary Properties: Public Services and Procurement Canada participates in a network of over 20 countries to gain insight on international parliamentary modernization programs and heritage preservation best practices.

Key Considerations

Governance for the Precinct and the implementation of the LTVP is complex, with accountability split between the Minister (responsible for budget and delivery) and Parliament (responsible for determining its requirements).

Obtaining timely decisions to maintain program momentum is a significant risk to LTVP projects. To improve this, the department coordinates with the Parliamentary Administrations to plan and prioritize key decisions. In addition, the department submits updates to the Speakers of the Senate and House of Commons on emerging risks and key decisions.

While the department has taken steps to support a made-in-Canada approach to projects in the Precinct, the introduction of US tariffs could have a significant impact on the implementation of the LTVP. The department will closely monitor construction costs to account for potential tariffs for all major projects ongoing within the Precinct.

An areal photographic map of the Parliamentary Precinct
Image description

An areal photographic map of the Parliamentary Precinct highlighting the Centre Block, West Block, East Block, Justice building, Confederation building, Rideau committee rooms, Senate of Canada building, and showing blocks 1, 2, and 3 south of wellington street, along Sparks street between Bank street and Elgin street.

Future of Wellington Street
Mandate

Wellington Street, a City of Ottawa-owned roadway, runs through the Parliamentary Precinct, which presents challenges to securing and managing risk to Canada’s Parliament. Public Services and Procurement Canada is leading discussions with the City on a possible federal acquisition of the street.

Key Activities

In 2022, Wellington Street was the site of illegal protests. In response, the city temporarily closed the street to vehicular traffic and directed its staff to engage the federal government on acquiring it. A public inquiry and two parliamentary studies were also launched, and recommended, amongst other actions, that the street be transferred to the federal government.

Partners and Stakeholders

Since 2023, over 100 engagements have taken place between the department and City of Ottawa officials regarding the plans for the federal government’s plan to acquire Wellington Street between Elgin and Bank Streets. These discussions have been supported by several due diligence activities including a land survey, an independent appraisal, and a study to assess the impact and costs of reinstating vehicle restrictions.

A non-binding draft framework agreement for the transfer of the roadway was co-developed by the City and Public Services and Procurement Canada in 2023 to fairly compensate the City on the basis of the appraised value of the street and potential costs of mitigating the reinstatement of vehicle restrictions. [Redacted]. To support the protection of Parliamentarians and visitors to Parliament Hill, departmental officials continue to pursue discussions with the City to formalize an agreement.

Key Considerations

The threat and risk environment in the Precinct is evolving. Within a decade, the office of the Prime Minister and 50% of all parliamentary offices will be permanently located south of Wellington Street. Several global capitals have, or are moving to, restrict vehicle traffic around their legislatures in a way that enhances security while creating more vibrant public spaces. The objective in Canada is to redevelop Wellington Street in a similar manner. Restricting private vehicles on Wellington Street will help to balance security and openness and create opportunities to realize economies in projects underway in the Parliamentary Precinct in a tight fiscal environment by creating building-setbacks and reducing building hardening.

[Redacted]

Infrastructure

Eastern Bridge in the National Capital Region
Mandate

Public Services and Procurement Canada is leading a project to construct a new bridge in the east of the National Capital Region (NCR), in collaboration with the National Capital Commission (NCC), as an integrated project team. In June 2024, the Government decided to advance planning of the design and construction of a multimodal bridge along the Montée Paiement - Aviation Parkway Corridor, connecting the two major highways in Ottawa and Gatineau, to improve transportation connectivity in the NCR.

The 2024 Fall Economic Statement announced a commitment to build an Eastern Bridge over the Ottawa River.

Key Activities

A series of environmental studies for a sixth crossing in the NCR were completed between 2000 and 2013. The studies explored ten different corridors, including two tunnel corridors. A preferred corridor was selected but work stopped due to a funding constraint and public concerns with the proposed project.

From 2019 to 2020, a portion of the 2013 studies were refreshed and the initial top three corridors (Montée Paiement-Aviation Parkway (previously known as Kettle Island), Lower Duck Island and Gatineau Airport/McLaurin Bay) were costed. In summer 2024, the Government decided to proceed with the project based on the Montée Paiement-Aviation Parkway corridor.

As this is a designated project under the Impact Assessment Act, operational meetings with the Agency commenced in summer 2024. Ecological studies have started and will continue until 2027. The first formal submission to the Agency is expected in early 2026.

On January 30, 2025, it was announced that the integrated project office, consisting of Public Services and Procurement Canada, the NCC and a technical advisor, would proceed with pre-planning work. This pre-planning work includes advancing the impact assessment, developing preliminary designs, and performing public and Indigenous consultations.

A contract was awarded for a Technical Advisor on March 13, 2025, and work has begun to advance design work and studies in support of the impact assessment.

Partners and Stakeholders
Key Challenges

Kettle Island is a privately owned “nature reserve” under the Quebec Natural Heritage Conservation Act. The design will need to avoid or reduce the potential footprint of a bridge on the island.

Engagement and community input will be key for a successful project given that previous attempts at a similar project in the same location failed due to vocal opposition. The Impact Assessment process is the mechanism for collaboration on the public’s and Indigenous communities’ key areas of concern.

As the corridor is using existing roadways and is located close to housing, noise mitigations during construction and operations is a concern of residents. The Impact Assessment process will work collaboratively with stakeholders to identify and develop mitigation strategies for residents’ concerns.

Alexandra Bridge Replacement Project
Mandate

The Alexandra Bridge, which is owned by Public Services and Procurement Canada, is over 120 years old and nearing the end of its operational life. As custodian of this asset, the department is responsible for delivering a replacement to the bridge that meets the growing interprovincial transportation needs in the National Capital Region (NCR).

The Bridge Replacement Project is led by an Integrated Project Team, comprised of multidisciplinary Public Services and Procurement Canada and National Capital Commission (NCC) resources, and consultants. The deconstruction and construction period for the new bridge is anticipated to occur between 2028 and 2032.

Key Activities

In June 2021, the NCC’s Board of Directors approved the planning and design principles for the replacement. These principles were developed by Public Services and Procurement Canada and the NCC with input from the public and Indigenous partners.

In May 2023, the project awarded a contract for a Technical Advisor. Specific activities completed to date under this contract include developing conceptual designs for public consultation, conducting environmental and archeological studies to meet commitments made to the Impact Assessment Agency of Canada, and providing technical expertise to support the procurement and delivery of the project.

In October 2024, the NCC led public consultations on conceptual design options. In parallel, the integrated project team developed a robust process to recommend a preferred concept design. An independent panel of experts provided their insights on the three conceptual design options. The NCC’s Board of Directors approved the preferred concept design on January 23, 2025.

In October 2024, Public Services and Procurement Canada also launched the progressive design build procurement process with the release of a Request for Qualifications (RFQ), which closed January 24, 2025. A subsequent Request for Proposals is expected to be released to qualified RFQ respondents late spring 2025.

Partners and Stakeholders
Key Considerations

The Alexandra Bridge accommodates roughly 9% of the vehicular traffic and approximately 40% of all pedestrians and cyclists crossing the river. The interprovincial crossings and associated road networks are already beyond capacity at peak hours. The period of deconstruction and construction of the replacement bridge is expected to take up to four years; managing impacts on active transportation and vehicular traffic will be a significant challenge.

Residual public opposition to the Alexandra Bridge replacement project may persist, including objection to the preferred concept design. The NCC, together with the department, continue to advance a robust communications and engagement strategy to articulate the rationale and benefits of the project, and the decision regarding the preferred concept design.

LaSalle Causeway
Mandate

The LaSalle Causeway in Kingston, Ontario, consists of five interconnected structures: three bridges (West Bridge, East Bridge, and the new modular bridge) and two wharfs (West Wharf and East Wharf). Public Services and Procurement Canada owns and maintains the causeway, and is responsible for ongoing maintenance, repairs, and any necessary infrastructure replacements.

As an arterial road (Highway 2), the LaSalle Causeway is a vital infrastructure link connecting downtown Kingston, Ontario, to the Pittsburgh district at the mouth of the Cataraqui River. The Causeway also provides marine access to the Rideau Canal, a UNESCO World Heritage Site, and the inner harbour of Kingston.

Key Activities

The Bascule Bridge, which previously spanned the central channel, was damaged during construction in March 2024 and subsequently demolished in June 2024. A modular bridge was installed in October 2024 to accommodate vehicles, cyclists, and pedestrians, ensuring continued connectivity and safety of land-users. The main navigation channel opened on a fixed schedule in fall 2024 through the temporary removal and reinstallation of the modular bridge, in order to permit passage of larger marine vessels.

In 2025, Public Services and Procurement Canada proposed to open the main marine navigation channel every two weeks, starting in mid-April, increasing to once a week from June to August, and then returning to bi-weekly openings until mid-November. This schedule is subject to Transport Canada’s oversight and approval under the Canadian Navigable Waters Act. To date, Public Services and Procurement Canada has received Transport Canada’s approval to open the channel on April 19, May 3, May 17 and May 31 under an amendment to the original authority granted in 2024. Public Services and Procurement Canada expects to receive approval for the remainder of the 2025 dates in late spring.

Partners and Stakeholders

The LaSalle Causeway project involves several stakeholders. The City of Kingston assists with traffic management and public communication. The marine community, including boaters using the Rideau Canal, relies on the causeway for navigation or access to Kingston’s Inner Harbour for mooring, services and repairs. Local residents and commuters depend on it for daily transportation. Contractors, such as Priestly Demolition Inc., are involved in activities relating to the removal and reinstallation of the modular bridge. Transport Canada oversees navigation approvals under the Canadian Navigable Waters Act, and Parks Canada is involved due to the Rideau Canal's status as a UNESCO World Heritage Site.

Key Considerations

The LaSalle Causeway faces several key challenges. Firstly, balancing the needs of local residents and the marine community is a delicate task, as the LaSalle Causeway provides a crucial link for both land and marine users.

Secondly, the complexity and challenges associated with the logistics of the removal and reinstallation of the modular bridge are not only time-consuming but also disruptive to land traffic and marine access.

Finally, noting the level of service provided by the modular bridge will not satisfy all users, there is a need to implement a longer-term solution. This could take the form of a phased approach with a lower-cost medium-term temporary lift bridge that would meet the stakeholders’ needs, to be followed by a long-term fixed or moveable bridge, and include addressing additional deficiencies with the east and west bridge structures. The alternative would be a quickly-funded and implemented long-term replacement. At this time, there is no timeline associated with the permanent replacement of the bridge.

Aerial map view of the city of Kingston, showing the location of the LaSalle Causeway
Image description

Aerial map view of the city of Kingston, showing the location of the LaSalle Causeway. Marked with text are the key areas of Downtown Kingston, the Cataraqui River, the entrance to the Rideau Canal, the Canadian Forces Base Kingston, Fort Henry National Historic Site, the Royal Military College of Canada, and the St. Lawrence River. It also has the LaSalle Causeway highlighted to show where the modular bridge is installed.

Payments and Accounting

Pay Administration: Enterprise Integrated Human Resources and Pay Strategy

Mandate

Under Section 12 of the Department of Public Works and Government Services Act and Order in Council P.C. 2011-1550, the Minister is mandated to administer the disbursement of pay to employees of the federal public administration. In May 2023, an Associate Deputy Minister for Enterprise Pay Coordination at Public Services and Procurement Canada was appointed to lead and implement an Enterprise Integrated Strategy on HR and Pay.

Key Activities

The Enterprise Integrated HR and Pay Strategy focuses equally on improving ongoing pay administration operations and service delivery with the current pay system (Phoenix), and advancing the Next Generation HR and Pay Initiative.

Operations Component

The Operations Component (Run) focuses on the continued delivery of legally mandated pay and benefits administration and the delivery of compensation services while also improving current operations and addressing outstanding transactions.

Key activities include the administration of pay and benefits, financial accounting and remittances to 150 organizations (for example, tax agencies, insurance companies, and unions), management of the inventory of pay transactions, support to public servants, system support, the Artificial Intelligence-based Virtual Assistant for compensation processing, and measures to improve HR and pay practices and data quality in partnership with the Treasury Board of Canada Secretariat’s Office of the Chief Human Resources Officer.

Transformation Component

The main objectives of this component are to replace the Phoenix pay system, the Public Service Commission Public Service Resourcing System (GCJobs), and the majority of the 30 HR systems in use across government with an integrated HR and pay software as a service (SaaS) solution from Dayforce, as well as the development of an HR and Pay Enterprise Central Data Hub.

The Final Findings Report for the Dayforce solution concluded that the solution is a technically viable option to replace the current pay system (Phoenix) and HR systems suite. Budget 2024 granted funding for Public Services and Procurement Canada to complete further design, testing, validation, and costing to confirm feasibility of an enterprise-wide deployment of the Dayforce Human Capital Management solution. The Human Capital Management Feasibility Project was completed in March 2025, and results are expected to be publicly released by summer 2025.

Partners and Stakeholders
Key Considerations

Trust Deficit: As general pay issues continue, a lack of employee trust remains in the Government’s ability to manage large-scale digital transformation initiatives. This risk is being mitigated in part through the Transparency by Design initiative, which increases stakeholder engagement and communicates progress on Transformation activities.

Pay Stabilization Commitment: Public Services and Procurement Canada committed to have no cases over one year old in the Pay Centre backlog by March 31, 2026. Currently, there are approximately 161,000 cases over one year old in the backlog (as of April 23, 2025) and there is a risk that the commitment will not be met by the target date and create delay for transformation.

The Human Capital Management Portfolio will continue to administer pay operations in the current Phoenix pay system while managing intake and reducing the backlog. To do so, it will leverage the Artificial Intelligence-based Virtual Assistant to increase productivity and process transactions in bulk. It will also implement the final United Actions for Pay measures.

The Human Capital Management Portfolio is continuing to assess the feasibility of an enterprise-wide implementation of Dayforce Human Capital Management solution to demonstrate a high degree of confidence in the final investment and implementation recommendation.

Receiver General

Public Accounts of Canada
Mandate

The Public Accounts of Canada is the annual financial report to Canadians covering the fiscal year of the Government, ending March 31. The Receiver General (the Minister), as the Government’s accountant, is responsible for preparing and publishing the report. Sections 63, 64, and 65 of the Financial Administration Act provide the Receiver General with the authority to maintain accounts, prepare the Public Accounts report and request financial information from departments and agencies.

Key Activities

The Public Accounts report is prepared based on financial transactions that are maintained by departments and agencies in accordance with direction from the Receiver General. It provides Parliament with information explaining the nature and extent of financial affairs and resources for which the Government is responsible. Parliament uses the Public Accounts to ensure that appropriated funding is spent according to the amounts and the purpose authorized in the Estimates.

The report is produced and published in three volumes:

Partners and Stakeholders

The Receiver General for Canada, the President of the Treasury Board, and the Minister of Finance share responsibility for the preparation of the Public Accounts. The Deputy Receiver General, the Secretary of the Treasury Board of Canada, the Deputy Minister of Finance, and the Comptroller General co-sign the Consolidated Financial Statements on behalf of the Government of Canada.

The Receiver General has the responsibility to establish and maintain an effective system of internal control over the reporting of financial data. This system is essential for the preparation of consolidated financial statements that are free from material misstatements and that are prepared based on published accounting policies and standards.

The Receiver General is also accountable for making available all original accounting records and other relevant information to support the audits carried out by the Office of the Auditor General.

The Auditor General of Canada is responsible for the audit of the consolidated financial statements and for providing an independent audit opinion to the House of Commons. To date, the Auditor General has provided 26 consecutive years of unmodified opinions on the statements.

Key Challenges

No challenges are currently anticipated with the production cycle of Public Accounts 2025. The Office of the Auditor General has not started its annual audit of the Consolidated Financial Statements of the Government of Canada. The department is currently operating under these timelines:

April 2025: reception of the draft audit plan from the Office of the Auditor General for the annual audit.

May 26, 2025: protocol meeting between the Auditor General and the four signatories of the Consolidated Financial Statements in preparation for the Public Accounts 2025 (the Deputy Receiver General, the Secretary of the Treasury Board of Canada, the Deputy Minister of Finance, and the Comptroller General).

September 4, 2025: meeting of the Auditor General with the signatories of the Consolidated Financial Statements to brief on the final results of the annual audit.

Receiver General Modernization
Mandate

The Receiver General for Canada is the central treasurer and accountant of the federal government. Since 1764, its mandate has been to safeguard the integrity of the Accounts of Canada and of the Consolidated Revenue Fund (i.e., all public money). It is responsible for more than $4.14 trillion in annual cash flow and 421 million payments to Canadians, which are primarily for social benefits. The Receiver General is also responsible for the preparation of the Public Accounts of Canada.

Key Activities

The Government of Canada is operating on aging, outdated legacy systems at increasing risk of failure. The Receiver General must modernize its systems and processes to ensure the long-term stability of its critical functions as it operates in a zero fail environment due to its potential impact on the Canadian public. Modernization is driven by the need for enhanced payment offerings, improved fraud detection and cyber defence, further automation of processes, real-time reporting, and predictive analytics to meet the evolving accounting and payment ecosystems’ emerging technologies.

The Receiver General Modernization Initiative is a strategic, multi-year project aimed at enhancing Canada’s payment and accounting systems. The initiative was included in Budget 2024. Modernization is expected to take five to ten years. The first step is to develop a technology-agnostic target operating model and roadmap for a gradual, low-risk transformation. The projects are meant to be executed using a building block approach to allow for re-alignment if required for the duration of the modernization and avoid disruption of day-to-day operations.

A competitive contract was awarded to Ernst & Young in summer 2024 to provide independent, third party expertise with experience in large-scale payments and accounting transformation to assist in developing the preliminary target operating model, the target operating model and transformational roadmap. Receiver General employees will work hand in hand with the external experts to ensure that business needs are well understood, to build internal capacity and to ensure the delivery of the best outcomes for Canadians.

Partners and Stakeholders

The Receiver General function supports every department and agency (for example, to deliver programs such as Employment Insurance, Canada Pension Plan, Old Age Security), as well as every Canadian and Canadian business receiving payments from the Government of Canada.

There are many interfaces and interdependencies with Canadian financial institutions working with the Receiver General to offer services to Canadian individuals and businesses receiving money from and paying money to the federal government.

In the context of the Receiver General Modernization initiative, stakeholder engagement, modernization trend analysis and current state assessment has already begun to determine the foundation of the preliminary target operating model, scheduled for completion in spring 2025.

Key Considerations

Information Technology:

Data Integrity

Resources

Government-Wide Support

Translation Bureau

Mandate

Established in 1934, the Translation Bureau supports the Government of Canada in its efforts to communicate with and serve Canadians in both official languages, Indigenous and foreign languages, and sign languages. It offers linguistic services to Parliament and to federal departments and agencies. The Bureau has approximately 1,300 employees in Canada, most of whom are language professionals.

Key activities

The Translation Bureau is the Government of Canada’s centre of expertise and provides translation, interpretation and terminology services to Parliament, the judiciary and federal departments. Services provided to Parliament are funded through special appropriations, while services provided to government departments are optional and on a cost-recovery basis. It also offers language resources, workshops, emergency translation services, secure document processing and TERMIUM Plus®. In 2023–2024, the Bureau generated $209 million, provided 47,000 hours of interpretation and translated approximately 370 million words.

With regard to Indigenous languages, in 2024 to 2025, the Bureau translated approximately 1 million words in 59 Indigenous language combinations and provided approximately 320 hours of interpretation. In keeping with the Government of Canada’s commitment to economic reconciliation, the Bureau is continuing its efforts to achieve the target of 5% of federal contracts being awarded to Indigenous businesses.

Following a Budget 2024 directive, Translation Bureau developed a plan to promote responsible use of artificial intelligence (AI) to meet the evolving language needs of the federal public service. The government-wide self-service language centre pilot project (GC Translation) included in the Bureau’s plan is the Treasury Board Secretariat’s first flagship project under the AI Strategy for the Federal Public Service 2025 to 2027.

Partners and stakeholders

The Translation Bureau works with various stakeholders in the language industry, including academia, professional associations and the language sector, to monitor industry developments and trends, share best practices, conduct studies, establish partnership agreements and more. The goal is to remain a centre for language expertise in Canada and the world.

Key considerations
Funds

Over the past five years, the Bureau has seen a decline in demand for the traditional translation services it invoices. In 2023 to 2024, demand from government departments for “traditional” translation services dropped by roughly 17%. Translation Bureau clients are increasingly turning to machine translation services by using free internet tools, or by investing in their own AI-based translation tools. The Translation Bureau is completely rethinking its funding model and service offering now that AI is part of the equation.

In terms of services to Parliament, the Translation Bureau holds a special purpose allotment with base funding of $40.1 million and, as part of Budget 2024, it was granted $31.9 million over 5 years (including $9 million in 2024 to 2025). However, this budget envelope is insufficient to respond to the increase in translation or interpretation requests associated with work from the House (for example, motions for the production of papers).

Capacity

The worldwide shortage of interpreters and the growing need for interpretation to support a hybrid government are factors affecting the Translation Bureau’s capacity to increase interpretation services beyond existing levels. The Bureau is still able to meet the demands of the Senate and the House of Commons for regular meetings and most extended committees. The Bureau has implemented measures to increase its capacity, including collaborating with the language industry, establishing university partnerships, creating new interpretation programs and launching a scholarship program.

Health and safety

The health and safety of interpreters is a priority for the Translation Bureau. The multiple security measures recently implemented have reduced the number of incidents in 2024 by 70% compared to 2022. Drawing on new technologies and research conducted by audiology and acoustics experts, the Translation Bureau continues to improve protection measures for interpreters, prevent incidents, and enhance management and monitoring protocols.

Ethical Procurement

Supplier Integrity and Compliance
Mandate

The Office of Supplier Integrity and Compliance (OSIC), within Public Services and Procurement Canada, administers the Government’s suspension and debarment program for procurement and real property transactions. The program is designed to mitigate the risk of conducting business with suppliers of concern and protect the integrity of the federal procurement and real property systems.

The authority to establish the OSIC is derived from paragraph 7(1)(a) of the Department of Public Works and Government Services Act and is administered independently of procurement authorities. OSIC administers the program in accordance with the Ineligibility and Suspension Policy (the Policy), which is a Public Services and Procurement Canada policy that is applied to all departments and agencies.

Key Activities: Administering the Ineligibility and Suspension Policy

OSIC and an updated version of the Policy were launched on May 31, 2024, to enable the Government to respond to a broader range of misconduct and unethical behaviour by suppliers, such as cases where a supplier has been charged or convicted of offences listed in the Policy, including offences linked to economic and anti-competitive crimes, as well as forced labour, human trafficking, labour rights, and environmental violations; or a supplier’s conduct has demonstrated that they pose a risk to the federal procurement and real property systems, including cases where a supplier has breached the Code of Conduct for Procurement or been debarred in another jurisdiction.

Decision-making under the Policy has been delegated from the Minister to the Registrar of Ineligibility and Suspension, an Assistant Deputy Minister-level position. The Registrar is empowered to impose four types of actions:

Provisional Suspension

Issued to rapidly suspend a supplier that poses an immediate and significant risk, while a full assessment is completed. It is a temporary sanction that remains in effect for 90 days (subject to renewal).

Suspension

Issued when a supplier is charged with an offence listed in the Policy or a similar offence in another jurisdiction. It suspends a supplier’s ability to be awarded a new contract and typically lasts 18 months (can be extended).

Debarment

Issued when a supplier is convicted of a listed offence or if other material events in the Policy are found to apply. It removes a supplier’s ability to be awarded new business for a period of up to 10 years, and allows for existing contracts to be terminated.

Administrative Agreements

Bilateral agreement with a supplier that can be offered in lieu of a suspension or debarment as a means of remediating misconduct, as long as they comply with the terms of the agreement.

Currently, one supplier is provisionally suspended, two are suspended, six suppliers are ineligible, and three suppliers have administrative agreements.

Key Activities: Overbilling

OSIC is developing and deploying increased data analytics to detect fraudulent schemes. For example, OSIC has uncovered overbilling cases involving individual subcontractors working concurrently with multiple prime contractors and billing for hours that could not possibly be worked. As of February 2025, Public Services and Procurement Canada has referred seven cases of overbilling to the Royal Canadian Mounted Police. The department is also actively pursuing the recovery of illegitimate amounts billed to the Government of Canada and has asked companies involved to repay those amounts.

Partners and Stakeholders

The Policy applies to all departments and agencies identified in Schedules I, I.1 and II of the Financial Administration Act and can also be voluntarily adopted by other federal entities. OSIC administers the Policy on behalf of 86 departments and agencies and three Crown corporations, and is continuing efforts to expand its application.

OSIC draws on a number of sources to identify supplier misconduct. The public can make tips to the Federal Contracting Fraud Tip Line and authorities within departments and agencies can make referrals to OSIC. When OSIC identifies elements of criminality, Public Services and Procurement Canada is required to refer the matter to law enforcement.

OSIC engages many stakeholders to share information and best practices, including provincial and territorial governments; the supplier community, industry associations and chambers of commerce; civil society organizations; procurement and debarment professionals; and foreign governments and international bodies (for example, the World Bank).

Key Considerations

The launch of OSIC and the shift in debarment and suspension approach is relatively recent. The Registrar continues to reach out to federal partners to raise awareness of the new authorities and to encourage referrals of founded supplier misconduct. OSIC will continue engaging partners to ensure the expanded scope of the revised Policy is well understood and applied consistently.

Wrongdoing continues to pose a significant risk to public procurement and real property transactions. Unethical suppliers are increasingly sophisticated and their tactics continue to change. To address these challenges, OSIC will refine internal processes, adopt additional data analytic capabilities and explore new and innovative approaches to ensure PSPC has the right tools in place to prevent, detect and respond to situations of supplier wrongdoing.

Industrial Security

Contract Security Program
Mandate

Public Services and Procurement Canada administers the Contract Security Program (CSP), as outlined in the Department of Public Works and Government Services Act. To support Canada’s security posture and ensure the integrity of government procurement, CSP activities include:

CSP services are mandatory for Public Services and Procurement Canada-issued contracts with security provisions. For contracts with security provisions issued by other federal departments, CSP is a voluntary service.

The CSP also applies when bidders need provisional security screening to access sensitive information, when contracts with security requirements are awarded to domestic or foreign suppliers, or when Canadian industry is awarded foreign contracts with security provisions.

Key Activities

CSP supports approximately 90% of Government of Canada contracts with security provisions, as well as contracts with NATO and allied governments, to ensure the protection of sensitive information and assets. Over the past five years, CSP screened over 14,000 companies and 500,000 individuals, processed 9,000 site visit clearance requests, and verified 1,300 security clearances annually with foreign governments. The program currently maintains bilateral security agreements with 26 countries and international organizations, enabling secure collaboration on defense and industrial security.

Partners and Stakeholders

Government departments: CSP partners with Canada’s security and intelligence agencies (i.e. the Royal Canadian Mounted Police, the Canadian Security Intelligence Service, the Communications Security Establishment, the Canada Border Services Agency, Immigration, Refugees and Citizenship Canada, and the Privy Council Office) to facilitate the exchange of critical information to assess the reliability and loyalty of individuals, the security posture of industry organizations, and other key activities.

Industry: CSP works closely with industry, such as defence firms, Indigenous businesses, businesses led by underrepresented groups, and industry groups (for example, the Defence Indigenous Advisory Group) to provide specialized advice and guidance on contract security and ensure the protection of sensitive foreign and domestic government information and assets.

Foreign Partners: CSP is Canada’s Designated Security Authority for NATO and Canada’s national authority for industrial security. In these roles, CSP collaborates with foreign partners and negotiates bilateral security agreements with foreign countries and international organizations (for example, the Five Eyes, the European Union, and the European Space Agency). CSP represents Canada in international industrial security forums, including the Multinational Industrial Security Working Group.

Key Considerations

CSP faces a range of challenges that strain its ability to effectively and efficiently deliver its services and can impact government clients and industry:

A difficult threat environment: Intensifying threats (for example, foreign interference, espionage, insider threats) and a growing number of threat vectors (for example, cyber, research), combined with the increasing sophistication and speed of state and non-state actors, make safeguarding information and assets held by Canadian industry and of critical value to Canada (and its allies) increasingly difficult. At the same time, the Program must navigate an increasingly volatile geopolitical landscape and growing demands for reciprocity by allies.

Industry relations: Industry has voiced concerns requested greater transparency on status, timelines, and criteria for clearance decisions. Smaller and underrepresented firms also require increased support to navigate unfamiliar security processes.

Insufficient integration with the security and intelligence community: Without formal integration (in other words, inclusion in the Security of Canada Information Disclosure Act), timely access to accurate information is limited and the ability to share national security information and intelligence with relevant government organizations is constrained.

Legacy Systems: There are challenges posed by legacy systems, and data and information management. Legacy systems pose security, business continuity, and privacy risks, and are vulnerable to cyber and insider threats. Current systems are outdated, requiring manual entry and limiting the program’s ability to secure, access, track, capture and manipulate the breadth of data in its possession.

Communications

Top Media Issues

Doing business with United States suppliers
Professional Services Contracting
Indigenous Procurement
Defence and Marine Procurement
Translation Bureau
Federal Office Space
Housing

Key Projects

Lac-Mégantic

Mandate

In summer 2019, the Government of Canada announced the Lac-Mégantic Rail Bypass Project. To carry out the construction of this bypass, the Government had to acquire a total of 124 parcels of land from 44 property owners in the municipalities of Lac-Mégantic, Frontenac and Nantes.

Transport Canada mandated Public Services and Procurement Canada to acquire the parcels and to manage the land acquisition process, including expropriation, in accordance with the Minister’s legislative authority under the Expropriation Act.

Key Activities

Prior to expropriation, Public Services and Procurement Canada met with property owners to explain the steps in the acquisition process, surveying and appraising the parcels, and advanced land acquisition through negotiation with owners.

On June 6, 2023, the Minister of Public Services and Procurement signed the notices of confirmation of expropriation, which were published in Quebec’s land register on June 14, 2023, thereby formalizing the expropriation for the remaining parcels and completing a key part of the department’s mandate. On August 1, 2023, the federal government assumed ownership and physical possession of the parcels.

As of April 23, 2025, 34 of the 42 former owners who were expropriated have accepted and signed their compensation offer. Under the Expropriation Act, expropriated owners may accept their offer at any time, as no timeframe is imposed. Once the compensation offer is accepted, expropriated owners have one year to contest the amount in Federal Court. Any legal recourse against the Government of Canada is being handled diligently in cooperation with Justice Canada. Public Services and Procurement Canada’s mandate was substantially completed when it took possession of the parcels on behalf of Transport Canada on August 1, 2023. The parcels were subsequently transferred to Transport Canada, which is now the federal custodian.

Partners and Stakeholders

Since 2021, Public Services and Procurement Canada representatives have visited Lac-Mégantic on numerous occasions to meet with property owners affected by the Project.

The federal government is also working with the municipalities of Lac-Mégantic, Frontenac, and Nantes, with the Quebec Ministère des Transports et de la Mobilité durable, as well as with the Centre intégré universitaire de santé et de services sociaux de l’Estrie, the Sûreté du Québec, and the local outreach team.

Key Considerations

The project faced opposition from property owners affected by the expropriation, as well as from an interest group in the Lac-Mégantic region. On April 25, 2023, the Attorney General of Canada appointed Julie Banville as a hearing officer in the expropriation process. A total of 1,494 objections to the expropriation were received during the opposition period at the public hearings held from May 4 to 9, 2023. The hearing officer submitted her report to the Minister on May 25, 2023.

Notwithstanding that the federal government now has ownership and title to all parcels required for the project, eight remaining landowners have yet to accept their compensation offers. As such, Public Services and Procurement Canada anticipates further negotiations. In addition, one expropriated household continues to occupy the site without a permit. Public Services and Procurement Canada remains responsible for ensuring that the remaining occupants vacate the premises within a reasonable timeframe, which could require initiating an eviction process, should negotiations be unsuccessful.

Health Centre of Excellence

Mandate

In 2019, the Government of Canada announced the proposal to build a new bilingual health care facility in New Brunswick. The new “Health Centre of Excellence” will include 155 health beds, comprising mental health beds, new accommodations for women offenders, and new hospital beds to improve access to mental health services and modernized facilities for staff and inmates. It will be located at Dorchester Penitentiary in Dorchester, New Brunswick. The total estimated contract value of the Health Centre of Excellence is $1.3 billion over a period of four years commencing in June 2025.

Public Services and Procurement Canada is responsible for project management and procurement in support of the client department, Correctional Service of Canada.

Key Activities

An Advance Procurement Notice was published in July 2024 to engage industry early in the procurement process and to inform them of the upcoming requirement.

A Request for Qualification was issued on August 13, 2024, and closed on October 11, 2024. The three respondents will be invited to participate in the Request for Proposal (RFP): Bird Design-Build Construction Inc, EllisDon Corporation, and Pomerleau Inc.

This competitive procurement process is currently in the pre-RFP period, which consists of providing draft procurement documents to the three qualified proponents and holding commercially confidential meetings for Canada to solicit feedback on optimal solutions for the project.

The preferred proponent will be the respondent team that submits the highest scoring RFP proposal for evaluation. Public Services and Procurement Canada and Correctional Service of Canada will collaborate with the proponent to finalize the design and refine project costs. The initial agreement will include an option for the proponent to undertake the facility’s construction, contingent upon reaching an agreement on the scope and price.

Work is expected to span a total of four years, with design development and pre-construction services anticipated to be completed within 12 and a half months, followed by phased construction expected to be completed within 35 months.

Partners and Stakeholders

Public Services and Procurement Canada will work with Correctional Service of Canada and the qualified respondents. The process will be overseen by OXARO Inc., a fairness monitor.

[Redacted]

Key Considerations

This procurement leverages a novel, collaborative approach, called the Progressive Design Build (PDB) model. Under the Phase 1 Agreement, the PDB Proponent will be responsible for all aspects of the design of the Project. Under the Phase 2 Agreement, the PDB Team will be responsible for construction.

In November, 2021, Public Services and Procurement Canada awarded a $5.5 million pre-design services contract to HDR Architecture Associates Inc. [Redacted].

Faro Mine Remediation Project

Mandate

The Faro Mine is located in south-central Yukon and was once the largest open-pit lead-zinc mine in the world. Mine activities during its 29 years of operation (1969 -1998) left behind 70 million tonnes of tailings and 320 million tonnes of waste rock, which have the potential to leach metals and acid into surrounding land and water.

The Government of Canada has financial responsibilities towards the closure and remediation of the Faro Mine Complex stemming from the 2001 Yukon Northern Affairs Program Devolution Transfer Agreement. In 2018, the Government of Canada assumed responsibility for the management of the contaminated site. The Faro Mine Remediation Project seeks to protect human health and safety, restore the environment, and advance reconciliation with Indigenous communities by stabilizing and remediating the site. Crown-Indigenous Relations and Northern Affairs Canada is the Project’s sponsor, working to ensure that the remediation efforts align with broader goals of reconciliation and sustainable development in the North. Public Services and Procurement Canada provides project management and procurement services for the Project.

Key Activities

The Faro Mine Remediation Project is divided into four phases:

On March 4, 2022, Public Services and Procurement Canada entered into a Remediation Plan Design and Support Services contract with AECOM Canada Ltd. for engineering support services, [Redacted] (up to fiscal year 2028-29) and could potentially extend up to 2046. On January 10, 2022, the department has also established a Main Construction Management and Care and Maintenance Services contract with Parsons Inc. for site oversight and management, which is valued up to $1.2 billion (up to fiscal year 2028-29) and could likewise extend 20 years and exceed $2 billion over that period. There are a number of additional shorter-term ancillary contracts that provide environmental, regulatory, geotechnical, and independent engineering and cost analysis support services to the Project team.

The Faro Mine Remediation Project includes the future construction, installation, testing, and commissioning of a permanent water treatment plant to ensure long-term water quality management. The design is currently under revision. The plant was initially planned to be procured and managed by the Main Construction Management contractor during the active remediation phase, but was brought forward due to deteriorating site conditions. In 2023-2024, the contractor led a cost-reimbursable procurement process, the result of which was a recommended bid significantly higher than anticipated. Public Services and Procurement Canada cancelled the requirement in October 2024, pending further review.

Partners and Stakeholders

The Government of Yukon is an active regulatory authority for Project activities occurring at site. Indigenous groups, including the Kaska Nations, whose asserted non-treaty territories cover the Faro Mine site, and Selkirk First Nation, who are located downstream of the site, are also important partners in the Project.

Parsons Inc. is the Main Construction Management contractor overseeing site management, and maintenance; AECOM Inc. provides the primary design support for the Project; and Jacobs Inc. is the contractor responsible for designing the Permanent Water Treatment Plant.

Key Considerations

A key priority of the Faro Mine Remediation Project is maximizing socio-economic benefits for local Indigenous communities. The majority of contracts issued in support of the Faro Mine Remediation Project include Indigenous opportunity considerations, which feature an incentive and deduction methodology tied to building local Indigenous capacity through labour, training, and subcontracting opportunities. Local First Nations are consulted on an on-going basis to ensure the project incorporates their input; however, a challenge is maintaining continuous engagement and collaboration with these communities to maximize socio-economic benefits and address their concerns.

Other challenges related to the Project include managing complex regulatory submissions requirements necessary to support the Project, including the water licence application; managing fluctuating water levels due to climate variability, which can impact water treatment processes and the stability of containment structures; and logistical complexities due to the remote location in Yukon.

Other delays caused by insufficient authorities, unconfirmed regulatory requirements, and unforeseen site conditions requiring further design changes have led to deferring the retender of the permanent water treatment plant. Public Services and Procurement Canada and Crown-Indigenous Relations and Northern Affairs Canada are continuing to assess mitigating actions in 2025-26 while evaluating interim treatment options for future recommendations.

Giant Mine

Mandate

Giant Mine is a gold mine near Yellowknife, Northwest Territories, that was operational between 1948 to 1999, and then on a limited basis until 2004. During its lifespan, the mine generated 237,000 tonnes of arsenic trioxide dust that was stored in underground excavated areas, among other environmental toxins. Should the arsenic trioxide be released into the local groundwater system, it could have serious implications for nearby waterbodies, including Great Slave Lake.

The Crown assumed control of and responsibility for the mine after its former owner went into receivership in 1999. Crown-Indigenous Relations and Northern Affairs Canada is responsible for the contaminated site and Project accountability, and manages stakeholder and rights holder engagement, as well as regulatory business. Public Services and Procurement Canada provides project management and procurement services for the Remediation Project through a service agreement established in 2005. The Giant Mine Remediation Project’s objective is to clean up the main site to ensure human health and safety and protect the environment, with the main focus being management of the arsenic trioxide waste.

Key Activities

From 2015 to 2017, Parsons Inc. served as the Interim Construction Manager for the site. On December 14, 2017, Public Services and Procurement Canada established a Main Construction Manager contract with Parsons Inc. for site care and maintenance and implementation management, including fulfilling the role as Mine Manager and General Contractor, which is valued at $4 billion up to March 31, 2035. Since 2022, the Project has been in its implementation phase. Its estimated final cost is $4.38 billion, which reflects the extensive remediation costs and adjustments for inflation over the life of the Project to 2038.

The Project team is currently focusing on the next wave of major activities starting in 2025-2026, including design and procurement for the northwest pond tailings containment area, washing of high arsenic contaminated soil, thermosyphon freeze installation, on-site aggregate production, and earthworks. A key focus of current work is the construction of a new water treatment plant to control the mine water level and prevent the migration of arsenic-contaminated water into the environment. The water treatment plant construction contract was awarded to AECON Water Infrastructure Inc. by Parsons Inc. in April 2023 and work began in summer 2023, with expected completion by October 2026.

In March 2025, the Minister of Justice and Minister of Crown-Indigenous Relations and Northern Affairs appointed a Ministerial Special Representative tasked with assessing the impacts of the legacy of the Giant Mine on historical Treaty rights and exploring potential pathways to resolution. The Representative reports directly to the Minister and works independently from the Giant Mine Remediation Project.

Partners and Stakeholders

The Government of Canada is working closely with the Government of Northwest Territories and the City of Yellowknife to ensure that the Remediation Project aligns with applicable requirements and regional needs.

Community Benefits Agreements between Canada and the Yellowknives Dene First Nation, and the North Slave Métis Alliance are in place to help deliver socio-economic benefits to local rights holders. In April 2023, Canada and the Yellowknives Dene First Nation signed a Procurement Framework Agreement, which includes increasing procurement opportunities to the First Nation and other local Indigenous peoples and prioritizing contracts to Indigenous-owned businesses in the community. Canada has additional obligations to the Tłichǫ First Nation for economic measures including government contracting, as defined in the Tłichǫ Land Claims and Self Government Agreement. An Economic Benefits Agreement was signed between Canada and the Tłichǫ First Nation in March 2025. Since 2005, the total value of contracts issued under the Project is $1.57 billion, of which $608 million (39%) has gone to Indigenous contractors, including $394 million in contracts to companies affiliated with the Yellowknives Dene First Nation.

Parsons Inc. is the main contractor responsible for site care and maintenance, as well as implementation management. AECON Water Infrastructure Inc. is responsible for the construction of the water treatment plant. There are also four additional ancillary contracts that provide environmental, mining, general design, and civil design support services to the Project team.

Key Considerations

A key priority of the Giant Mine Remediation Project is maximizing socio-economic benefits for local Indigenous communities. Media attention and sensitivity related to the Project’s socio-economic impacts is expected to continue. Construction of the new water treatment plant is fundamental to full remediation and overall Project sequencing. Should procurement or construction delays occur, subsequent remediation activities could be affected, and the Project Team is working closely with the contractors to ensure that the water treatment plant stays on time and on budget.

Over the next several years, significant procurement packages will be posted by the Main Construction Manager, including on-site aggregate production (June 2025) and major earthworks (March 2026). These packages are on the critical path for the Project and unproductive procurement processes could have significant schedule impacts. The Project Team is managing this risk by ensuring early engagement with the construction community via Industry Days, performing prequalification processes to establish a pool of qualified bidders, and adjusting work package scopes to minimize construction risks between subcontractors.

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