2019 to 2020 Supplementary Estimates (B): Standing Committee on Government Operations and Estimates—March 12, 2020

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Supplementary Estimates (B) overview

Public Services and Procurement Canada (PSPC) is seeking $9.6 million through these Supplementary Estimates (B), increasing its available approved funding from $4.57 billion to $4.58 billion net of revenues.

Voted appropriations: $16.8 million

Pension services

$8.1 million to PSPC for accommodation costs for employees providing pension services: for employees who provide pension services relating to the Public Service, Canadian Forces, Royal Canadian Mounted Police and Reserve Force pension plans.

Purpose of funding

• PSPC provides accommodation services to employees who provide pension services
• As per the Treasury Board Secretariat (TBS) guidelines, the pension administration applies the 13% accommodation levy to the approved salary resources to estimate the cost of accommodation
• Accommodation revenues collected from the pension funds are deposited to the Consolidated Revenue Fund (CRF)
• PSPC accesses these accommodation revenues once a year through the Supplementary Estimates process
• Deposits in the CRF are subject to annual review as part of the annual pension administration audit

Sale of real property

$6.6 million for reinvestment of revenues from the sale or transfer of real property: funding obtained from the strategic disposal by Canada Lands Corporation of a property located at 1 Front Street West in Toronto, Ontario.

Purpose of funding

• PSPC’s Accommodation and Real Property Services mandate is to:
  • meet the accommodation needs of federal organizations by providing and maintaining a cost effective portfolio of office facilities and common use assets
  • dispose of surplus properties no longer required to support program mandate (as per TB directives)
• New funding was obtained from the strategic disposal by Canada Lands Corporation of a property located at 1 Front Street West in Toronto, Ontario
• Although the proceeds of the sale would usually be given in capital funding as per the Directive on the Sale or Transfer of Surplus Real Property, an exception was granted and PSPC will use this funding to pay rental fees to accommodate government employees located in the building even if PSPC is no longer its custodian

Non-discretionary expenses

$2.1 million for increases in non-discretionary expenses associated with Crown-owned buildings and leased space for data centre consolidation: to protect for inflation (price) and variation in the number of public servants requiring accommodations (volume).

Purpose of funding

• Under the price and volume protection, PSPC’s funding is automatically reduced when accommodation costs are reduced such as when power and space savings occur due to data centre closures
• In 2019 to 2020 PSPC is receiving funds to be transferred to Shared Services Canada (SSC) for reduced accommodation requirements as a result of data centre consolidations. The $2.1 million represents savings of power and space as a result of closing 50 data centres. Of this amount $1.2M has been transferred to SSC

Net transfers between government departments: ($7.2 million) net decrease

Greenhouse gas emissions

$440,000 from the Treasury Board Secretariat to support innovative approaches in reducing greenhouse gas (GHG) emissions in government operations: under the greening government fund.

Purpose of funding

• The greening government fund provides funding on a competitive basis for departments to explore and share innovative approaches to reducing greenhouse gas (GHG) emissions in government operations (including: 1- heritage building envelope energy efficiency study in Ottawa and 2- CO2 cooling in server rooms in Montreal)
• The objective of the fund is to support and share the results of projects which
  • are projected to result in GHG emission reductions in the federal public service
  • test or implement innovative approaches with a potential for learning
  • have a high potential for replicability
  • pursue emissions solutions in difficult-to-reduce areas
• Under this initiative, PSPC is accessing funding to conduct the following projects:
  • heritage building envelope energy efficiency study: to conduct the evaluation of the thermal energy performance of various rehabilitated heritage buildings envelopes and document best practices in improving the thermal performance of heritage buildings in Ottawa's cold and wet climate
  • CO2 cooling in server rooms: to install a state-of-the-art CO2 cooling system and recover the heat produced in a planned server room renovation

Climate change

$345,000 from the Department of Transport Canada for climate risk assessment for the Alaska Highway system.

Purpose of funding

• The Alaska Highway was constructed during World War II to connect the Continental United States with Alaska across Canada
  • The highway stretches 2,450 kilometres (km) through northern British Columbia (BC), the Yukon and the State of Alaska
• The design of the highway system was based on historic climate events that in recent years may become irrelevant due to a number of extreme weather events, more frequent and severe storms, which can adversely impact the design integrity and the reliability of the highway system
• Despite it being a provincial Crown land (BC), PSPC manages an 835 km segment of the Alaska Highway, from Km 133 north of Fort St. John, BC to Km 968 near Watson Lake, Yukon
• This funding will allow PSPC to conduct a climate risk assessment of the 835 km segment of the Alaska Highway
  • It will also allow to conduct a system-wide vulnerability assessment in order to understand the interaction between climate and the infrastructure components that are anticipated to result in significant vulnerabilities and would require additional detailed engineering analysis
  • The results of the assessment will be integrated into the planning, management, operation, and maintenance of the Alaska Highway projects to reduce the impact of climate change on infrastructures and environment as well as alleviate potential risks on road users
• Other segments of the Alaska Highway are not part of this project, but efforts will be made to share lessons learned from this project with the provincial and territorial governments

Administration of a land

$250,000 from the Department of Fisheries and Ocean (DFO) for the transfer of administration of land located in Witless Bay, Newfoundland: for office and warehouse space.

Purpose of funding

• This property was previously occupied by the Canadian Food Inspection Agency (CFIA)
  • Due to a restructure, CFIA left the premises thus leaving PSPC with a vacant building
• As the property no longer met PSPC’s core mandate, it was therefore declared surplus and PSPC transferred the administration to DFO for office / warehouse space for its Conservation and Protection Branch

Indigenous languages

$100,000 from the Department of Canadian Heritage to build capacity in translation, transcription, terminology and interpretation in Indigenous languages: as per the Indigenous Languages Act.

Purpose of funding

• PSPC's Translation Bureau provides linguistic services for parliament and for departments and agencies in multiple languages, including in Indigenous languages
  • With the adoption of the Indigenous Languages Act, and now that the use of Indigenous languages is recognized in the House of Commons, the volume of requests is expected to increase significantly
• The funding will promote the development of capacity in Indigenous languages services (translation, transcription, terminology and interpretation) through the following activities
  • build network and partnerships with the Indigenous communities and educational institutions across Canada
  • hold 2-day workshops in Ottawa focusing on bringing language keepers and Indigenous language speakers to learn more about the Translation Bureau's services and requirements and to familiarize themselves with the parliamentary services
  • The Translation Bureau will work with Indigenous post-secondary institutions to perform a scoping study, which will define future research requirements to cover Inuit, First Nations and Metis languages
    • The results of the study will also provide the necessary information to conduct consultations and for the establishment of strategic partnerships with Indigenous communities and educations institutions across Canada

Departmental staff abroad

$11,361 from the Department of Global Affairs Canada to adjust funding previously provided for departmental staff located at missions abroad: at the Embassy of Canada in Washington, DC.

Purpose of funding

• PSPC’s representatives in Washington, D.C. have 2 primary lines of business:
  • management of the Foreign Military Sales Program and other critical defence procurement agreements with the US Government
  • support the department’s international engagement activities on broader issues related to procurement and other departmental initiatives
• This transfer is to return funding associated with the reclassification of positions of employees located abroad and to review the original reference level contribution in relation to actual costs

Timiskaming Dam-Bridge of Quebec

($20,000) to the Department of Crown-Indigenous Relations and Northern Affairs (CIRNAC) for consultations and research activities with relevant First Nations for the Timiskaming Dam-Bridge of Quebec replacement project (TQDRP): as CIRNAC has the appropriate mechanism to provide funds directly to the First Nation groups under an existing contribution program.

Purpose of funding

• PSPC is the proponent of the TQDRP and has begun a consultation process with Kebaowek First Nation, Timiskaming First Nation and Wolf Lake First Nation, pursuant to the constitutional duty to consult and, where appropriate, accommodate Indigenous People
• With the objective of fairness towards the First Nations, the transfer of funds relates to an amendment of the prior agreement to cover the following activities
  • continue the development of the consultation framework agreement with PSPC
  • link technical and administrative fees to consultation activities
  • develop activities to inform/solicit input from community members
  • research
  • community meetings

Records checks

($190,753) to the Royal Canadian Mounted Police (RCMP) for law enforcement records checks: to increase the number of law enforcement records checks (LERC) conducted by the RCMP.

Purpose of funding

• LERCs are one of the tools used by the industrial security programs to determine the reliability and trustworthiness of individuals seeking to “access” controlled goods, and/or who are entrusted with sensitive information and assets. LERCs allow to flag whether the subject has a criminal record or is/has been subject to a police investigation
• This funding will cover the increase from the original 450 to 900 LERCs per year performed by the RCMP

Internal support services

($465,729) to the Department of National Defence (DND) for internal support services: for the contracting and procurement of defence supplies, representing the third and last phase associated with the transfer of defence procurement responsibilities.

Purpose of funding

• Following the launch of Defence Procurement Strategy (DPS) in 2014, PSPC authorized DND to buy or otherwise acquire defence supplies up to a specified amount, increasing their contracting authority levels
• As DND is taking on additional contracting responsibilities resulting in a need for more personnel, both departments agreed to transfer 33 full-time equivalents through the 3 phases to offset the effect of the shift in workload between the departments
• This transfer of funding is related to the third and last phase associated with DND’s contracting activities for defence supplies within the DPS ($1.2 million) to Shared Services Canada (SSC) for reimbursement related to reduced accommodation requirements as a result of data centre consolidations: associated to power consumption and space efficiencies.
• Out of the $2.1 million received by PSPC, $1.2 million in 2019 to 2020 (vote 1—operating expenditures) reflects the amount to be transferred to SSC for reduced accommodation requirements as a result of data centre consolidations
• The $0.9 million in net funding in 2019 to 2020 represents decommissioning costs related to data centre closures paid by PSPC

Federal sciences and technology infrastructure initiatives

($6.5 million) to various organizations to implement and support cluster management offices as part of the federal sciences and technology infrastructure initiatives also known as Laboratories Canada (LC) initiative: as this will maximize collaboration, optimize space requirements through proper identification of equipment and facilities that can be shared between partners, and to meet the condensed timelines of the project.

Purpose of funding

• PSPC is working with federal science departments and agencies to implement an ambitious 25-year plan (5-year phases) that will revitalize the Canadian science sector and bring together science-based departments and agencies to share facilities, develop synergies between programs, facilitate collaborative research and support scientific excellence
• Under the first phase of this initiative (2018 to 2019 / 2022 to 2023), PSPC is transferring funding to lead departments to support the role of the cluster management offices working as the interfacing agent between the LC Office (PSPC) and the science based departments within the cluster—serving as a single window into the cluster
• In this role the lead departments will be
  • providing secretarial support to cluster governance committees, documenting and tracking risks, issues, decisions and other cluster management items in a central repository
  • coordinating cluster governance approvals for final deliverables to LC Office
  • gathering requirements and inputs from cluster partners to support activities such as equipment strategy, information management and information technology (IM/IT) strategy, science information

Budget implementation vote mechanism overview

In 2018 to 2019, Treasury Board Secretariat (TBS) launched a 2 year pilot project, allowing Main Estimates to be tabled in parliament by mid-April instead of March 1. The intent of this new process was to better align the Main Estimates with budget items. It provided parliamentary committees with an opportunity to examine individual departmental budget 2019 measures, as well as provided the central agencies with oversight/controls over the related funding.

The individual departmental Budget Implementation Vote (BIV) have been created for each spending measure announced in budget 2019. These appear in the page proofs for both the 2019 to 2020 Main Estimates as well as the 2019 to 2020 Supplementary Estimates (B).

The 2019 to 2020 individual BIV are not spending votes. They are structured in a manner to prevent departments to spend against them. Therefore, departments need to have approved TB submissions and receive the full supply for Main Estimates in order to access its funding.

As the pilot ended this year, the 2020 to 2021 Main Estimates will revert to a tabling date on or before March 1, 2020. An interim supply bill will be approved by March 31, 2020.

Public Services and Procurement Canada has accessed, via the BIV, a total of $845.0 million.

$280.6 million for ensuring proper payments for public servants: to continue supporting the Government of Canada’s pay system through 2 categories of activities:

• $206.7 million for pay stabilization activities: to continue progress on pay stabilization efforts by increasing capacity to process pay transactions, improving system automation and streamlining “human resources (HR)-to-pay” processes across the government
• $73.9 million for technical support and software upgrades: to sustain technical and functional support for the Phoenix pay system, and implement software upgrades to further stabilize the pay system and reduce manual intervention

Overview of the budget implementation vote

Public Services and Procurement Canada has accessed via the BIV a total of $845.0 million:

• $280.6 million for ensuring proper payments for public servants: to continue supporting the Government of Canada’s pay system
• $206.7 million for pay stabilization activities: to continue progress on pay stabilization efforts by increasing capacity to process pay transactions, improving system automation and streamlining “HR-to-pay” processes across the government

Since the launch of Phoenix, PSPC has implemented a series of measures focused on stabilizing the pay system. These include increasing the compensation workforce, providing employees with greater support through our Client Contact Centre, introducing the pay pods model, and implementing technical fixes that have improved payroll processing, such as increased automation of transactions.

Results from these measures include:

• decreased number of transactions waiting to be processed at the Pay Centre
  • over the past year, we have reduced the number of transactions waiting to be processed at the Pay Centre by 83K transactions, from 453K in February 2019 to 370K in February 2020
  • for more than 2 years we have consistently reduced the number of transactions waiting to be processed at the Pay Centre
  • since January 2018 the overall queue has decreased by 263K transactions from 633K to 370K (42% decrease)
  • over the same period of time, the backlog of transactions with financial implications has decreased by 201K transactions, from 384K to 183K (52% decrease)
• completed roll-out of the pay pod service delivery model to all departments and agencies served by the Pay Centre
  • the pay pod model has proved effective at increasing the number of transactions completed within service standards, therefore preventing further cases from going into the backlog
• continued to focus processing efforts on priority files such as parental leave and disability leave
  • on average, parental and disability leaves were processed within service standards 94% of the time in 2019
• the Client Contact Centre (CCC) is the first point of contact for current and former federal public servants looking for information or help with compensation and benefits enquiries
• in 2019, an average 87% of Client Contact Centre callers were satisfied with their overall experience
• there is an escalation process in place so that anyone in serious financial distress can get immediate help through the Client Contact Centre, and in collaboration with their department
• created MyGCPay, a new self-service web-based application that provides all employees with a centralized and simplified view of their pay and benefits
  • it helps employees identify pay issues earlier and allows them to monitor their open cases with more detail
• over the past years, we have made over 2,500 technical fixes and enhancements to stabilize the Phoenix pay system
• for examples, system fixes and lessons learned from previous tax seasons resulted in a successful 2019 tax-filing season with fewer data issues, no major system issues and fewer inquiries from clients
• another example is the new automated mass retroactive process for the implementation of 2018 collective agreements, which resulted in 96k employees receiving full payment automatically
• launched a procurement process to engage the private sector in innovative solutions to help stabilize the pay system
• worked on better reporting, transparency, and governance with departments and agencies
  • the objective is to ensure the data entering the pay system is timely and accurate, and to have an enterprise-wide approach to resolving employee pay issues
• working closely with all stakeholders, including experts, federal public sector unions and the private sector for innovative solutions to accelerate pay stabilization
• $73.9 million for technical support and software upgrades: to sustain technical and functional support for the Phoenix pay system, and implement software upgrades to further stabilize the pay system and reduce manual intervention
  • as part of its continued efforts to stabilize the pay system, the department is proceeding with a Phoenix pay system software upgrade from PeopleSoft 9.1 to 9.2
  • the upgrade to PeopleSoft version 9.2 will ensure that PSPC continues to receive software patches, fixes, and tax rate updates that Phoenix requires to generate payroll accurately
  • based on lessons learned from the Phoenix rollout, various governance committees were put in place to provide ongoing input and recommendations to PSPC to ensure effective decision making throughout the upgrade project
  • the overall upgrade is expected to take approximately 24 months(including the planning phase), with a target go live in spring 2021
• $275.0 million for Real Property Program integrity initiative: to maintain current office accommodation and related real property service levels to federal departments and agencies
• $270.2 million for predictable capital funding: to support various infrastructure projects through the creation of a capital investment fund
  • such projects include the rehabilitation of the Alaska Highway and the Sinclair Center in Vancouver
• $7.7 million for Industrial security systems transformation project: to upgrade the existing complement of aging information technology systems supporting the Contract Security Program and the Controlled Goods Program by developing a single, secure and unified electronic solution that better addresses the current and emerging needs of private industry and the government
• $5.7 million for improving crossings in Canada’s capital region: to help improve the capacity and condition of National Capital Region bridges, by supporting the rehabilitation and ongoing maintenance of the Chaudière Crossing and Macdonald-Cartier Bridge and begin activities to replace the existing Alexandra Bridge
• $3.5 million for maintaining service levels of the Controlled Goods Program: which domestically regulates the possession, examination, or transfer of goods and technology that have military or national security significance
  • key program activities include registering individuals and businesses, conducting inspections and other compliance monitoring activities, and performing security assessments
• $2.3 million for Cost and Profit Assurance Program: to conduct assurance engagements on high risk defence procurement contracts
  • these activities help ensure that procurement contracts are fair and provide value for Canadian taxpayers

A total of $175.0 million is withheld centrally:

• $98.0 million for predictable capital funding, which will be accessed in future years
• $50.7 million for employee benefit plan portion
• $26.3 million for accommodation and SSC costs

A total of $0.4 million of budget 2019 funding was not accessed due to further refinement of the costing requirements for predictable capital and industrial security systems transformation project.

Sources and uses of budget 2019 measures by organization for December 2019

Budget 2019 funding

Voted budgetary measures listed by organization in Table A2.11 of the 2019 Budget Plan.

Allocated

Funding approved by the Treasury Board, to be transferred from organizations’ measure specific votes to votes for operating or capital expenditures, grants or contributions upon receipt of full supply.

Withheld

Expenditures to be made through other authorities, such as statutory expenditures for employee benefits plans, reprofiles to subsequent fiscal years, or amounts set aside to cover the costs of office accommodation and information technology services.

Remaining

Balance of budget 2019 funding that remains unallocated in the vote.

Implemented

Percentage of budget 2019 funding allocated and withheld for measures approved by the Treasury Board.

Overview of Treasury Board central vote 10

Key messages

In 2019 to 2020, Public Services and Procurement Canada received funding allocation of $4.5 million from Treasury Board’s central vote 10 to deliver on the following 2 initiatives:

• federal accessibility legislation ($3.6 million) to begin assessing federal buildings and develop cost estimates for upgrades that meet or exceed new accessibility codes
• modernization of the program and administrative services (PA) group ($0.8 million) to support all the activities associated with the classification conversion of the existing federal government PA group

Both initiatives are progressing as planned.

Background

There are several Treasury Board (TB) central votes which are used to supplement other appropriations. The allocation to other departments is subject to the approval of the TB.

The TB central vote 10 is for supporting the implementation of government-wide strategic management initiatives that cut across many departments, where relatively small amounts are involved.

During the committee appearance of the president of the Treasury Board on February 27, 2020, for the study of the Supplementary Estimates B, some members of the committee raised concerns in relation to the significant increase in the use of the TB central vote 10. Some emphasised that the definition of this fund is to respond to a crisis or an unforeseen circumstance and questioned some of the projects vote 10 was used for.

Accommodation costs related to pension administration

Supplementary Estimates (B): $8.1 million in 2019 to 2020

The following table includes total funding per fiscal year.

Table 1: Superannuation account: 13% accommodation (in millions of dollars)

Fiscal year	2015 to 2016	2016 to 2017	2017 to 2018	2018 to 2019	2019 to 2020
Total authorities	8.9	7.5	7.9	8.0	8.1

Summary

Funding of $8.1 million (vote 1—operating expenditures) in 2019 to 2020 to Public Services and Procurement Canada (PSPC) for accommodation costs for employees who provide pension services relating to Public Service Superannuation Act, Canadian Forces Superannuation Act, Royal Canadian Mounted Police Superannuation Act, Canadian Forces Pension Fund and the Reserve Force Pension Fund.

Purpose of the funding

PSPC provides accommodation services to employees who provide pension services. The $8.1 million is broken down as follows:

• PSPC’s employees
  • $6.9 million: Public Service Superannuation Act
  • $0.5 million: Canadian Forces Superannuation Act
  • $0.5 million: Royal Canadian Mounted Police Superannuation Act
• Department of National Defence’s (DND) employees
  • $0.3 million: Canadian Forces Superannuation Act, Canadian Forces Pension Fund and the Reserve Force Pension Fund

To estimate the cost of accommodation, the pension administration applies the 13% accommodation levy to the approved salary resources, as per Treasury Board Secretariat guidelines.

Background

By the nature of the pension funds, legislations require that expenditures for the operation and management of the pension funds be tracked and managed separately.

Administration costs, including the accommodation component, are charged to the respective superannuation account as required by:

• the Public Sector Pension Investment Board Act (Bill C-78)
• the Canadian Forces Superannuation Act (Bill C17)

Treasury Board authority is requested once a year to access accommodation funding from the Consolidated Revenue Fund.

• revenues collected from the pension funds are deposited to the Consolidated Revenue Fund
• PSPC seeks authority to access these funds
• an attestation and confirmation of proof of deposit is provided by chief financial officers (PSPC and the DND)

Deposits are subject to annual review as part of the annual pension administration audit.

Reinvestment of revenues from the sale or transfer of real property

Funding profile: $6.6 million in 2019 to 2020

The following table includes total funding per fiscal year.

Table 2: Total funding per fiscal year (in millions of dollars)

Fiscal year	2018 to 2019	2019 to 2020	Total
Total authorities	13.5	6.6	20.1

Summary

Reinvestment of revenues from the sale of real property (vote 1—operating expenditures) of $6.6 million in 2019 to 2020.

Purpose of the new funding

New funding obtained from the strategic disposal by Canada Lands Company of a property located at 1 Front Street West in Toronto, Ontario. In this instance, the proceeds of sale covers the rent payment in order for government employees to continue working in the building even after the building was sold.

Public Services and Procurement Canada (PSPC) is requesting to have access to the second payment of $6.6 million. PSPC already received $13.5 million as the first payment in the 2018 to 2019 Supplementary Estimates (B), for a total of $20.1 million

Background

Accommodation and Real Property Services’ mandate

• To meet the accommodation needs of federal organizations by providing and maintaining a cost effective portfolio of office facilities and common use assets
• To dispose surplus properties no longer required to support program mandate (as per Treasury Board directives)

Treasury Board directive on the sale or transfer of surplus real property

• Defines performance expectations for the management of real property (including obligations associated with the disposal phase)
• Defines requirements to assess real property and develop disposal strategies

Strategic disposal

Properties with potential for significantly enhanced value and/or highly sensitive. The complexity may require innovative efforts and comprehensive management approach. Disposed by Canada Lands Company through a strategic disposal process.

The following table includes properties disposed through a strategic disposal process.

Table 3: Properties disposed through a strategic disposal process (in millions of dollars)

Properties	Fiscal year	Amount
Sam Livingston Building, Calgary, Alberta	2015 to 2016	5.6
Fairmont Complex, Vancouver, British-Columbia	2015 to 2016	4.7
Harbourfront Parking Garage	2016 to 2017	5.0
1 Front Street West in Toronto, Ontario	2018 to 2019	13.5
1 Front Street West in Toronto, Ontariotable 3 note 1	2019 to 2020	6.6
Table 3 Notes Table 3 Note 1 The amounts included in the table above are not the total amounts of the strategic disposals but instead, the amounts received in that fiscal year. Return to table 3 note 1 referrer

Routine disposal

Properties with lesser value that can be sold easily without any substantial investment, normally sold "as is" by PSPC.

The following table includes the total amounts received from routine disposals per fiscal year.

Table 4: Total amounts received from routine disposals per fiscal year (in millions of dollars)

Fiscal year	2015 to 2016	2016 to 2017	2017 to 2018	2018 to 2019	2019 to 2020	Total
Routine disposals	3.4	11.5	3.6	9.4	-	27.8
Total	3.4	11.5	3.6	9.4	-	27.8

Crown-owned buildings and leased spaces

Supplementary Estimates (B): $2.1 million in 2019 to 2020 and ongoing

Funding profile

The following table includes total funding for the Data Centre Consolidation project per fiscal year.

Total funding for the Data Centre consolidation project per fiscal year

Table 5: Compensation received through the estimates exercises (in millions of dollars)

Exercises	2014 to 2015	2015 to 2016	2016 to 2017	2017 to 2018	2018 to 2019	2019 to 2020	2020 to 2021 and ongoing
Main Estimates	-	1.8	3.3	5.5	6.0	6.5	8.6
Supplementary Estimates	1.8	1.5	2.2	0.5	0.5	2.1	-
Total authoritiestable 5 note 1	1.8	3.3	5.5	6.0	6.5	8.6	8.6
Table 5 Notes Table 5 Note 1 Funding for 2019 to 2020 sought in Supplementary Estimates (B) and future years in Annual Reference Level Update 2020 to 2021 Totals may not add up due to rounding Return to table 5 note 1 referrer

Summary

Funding of $2.1 million (vote 1—operating expenditures) in 2019 to 2020 and ongoing to PSPC to protect for inflation (price) and variation in the number of public servants requiring accommodations (volume).

Purpose of the funding

Under the price and volume Protection, PSPC’s funding is automatically reduced when accommodation costs are reduced such as when power and space savings occur due to data centre closures.

In 2019 to 2020 PSPC is receiving funds to be transferred to Shared Services Canada (SSC) for reduced accommodation requirements as a result of data centre consolidations. The $2.1 million represents savings of power ($1.0 million) and space ($1.1 million) as a result of closing 50 data centres. Of this amount $1.2 million has been transferred to SSC.

The $0.9 million in net funding in 2019 to 2020 represents decommissioning costs related to data centre closures paid by PSPC.

Background

In late 2016, SSC and PSPC agreed to a more expedient process for closing and decommissioning the data centres. Under this agreement, when data centres are closed but not decommissioned, PSPC will fund and complete the decommissioning of former data centre space in PSPC custodial assets and recoup the costs from SSC through a reduction of the funding transfers for space. SSC will then release the space to PSPC for reassignment.

Data Centre Consolidation project

• SSC will close and decommission several hundred legacy data centres and consolidate into about 7 newer and more efficient data centres
• To achieve this objective, SSC and PSPC embarked on the closure and decommissioning of a designated number of data centres on an annual basis
• This is the sixth year of SSC data centre closures
  • The planned project completion is in 2024

Transfer from Treasury Board Secretariat to reduce greenhouse gas emissions in government operations

Supplementary Estimates (B): $440,000 in 2019 to 2020

Funding profile

The following table includes total funding per fiscal year.

Table 6: Total funding per fiscal year (in millions of dollars)

Fiscal year	2019 to 2020	2020 to 2021	2021 to 2022	Total
Total authoritiestable 6 note 1	0.4	0.3	0.2	1.0
Table 6 Notes Table 6 Note 1 Funding for 2019 to 2020 sought in this Supplementary Estimates (B) and future years in annual reference level update 2020 to 2021 Total may not add up due to rounding Return to table 6 note 1 referrer

Summary

Under the greening government fund, Treasury Board Secretariat (TBS) is transferring $440,000 (vote 1—operating expenditures) in 2019 to 2020 ($1.0 million over 3 years) to PSPC to explore and share innovative approaches to reducing greenhouse gas (GHG) emissions in government operations.

Purpose of the funding

Heritage building envelope energy efficiency study

To conduct the evaluation of the thermal energy performance of various rehabilitated heritage buildings envelopes and document best practices in improving the thermal performance of heritage buildings in Ottawa's cold and wet climate.

The project includes:

• literature review of best practices of the energy retrofit of heritage buildings in the European and North American contexts
• development of historical and projected future climate loads for use in building simulations
• on-site building inspection of 6 recently retrofitted buildings
• laboratory testing of masonry and brick specimens known to be from the buildings being modelled
• whole building energy and hygrothermal simulations of 3 selected buildings
• verification of simulations through in-situ monitoring of selected wall sections for relative humidity, temperature, heat flux and moisture content
• preparation of a best practice guide for implementing energy retrofits in heritage buildings

The project is managed by PSPC’s Science and Parliamentary Infrastructure Branch.

CO2 cooling in server rooms

To install a state-of-the-art CO2 cooling system and recover the heat produced in a planned server room renovation.

The project includes:

• replacement of air conditioning systems in server rooms with the latest CO2 cooling system technology
• heat recovery within server rooms

The project is managed by PSPC’s Quebec Region.

Background

The greening government fund provides funding to departments on the basis of evaluated business cases to explore and share innovative approaches to GHG emissions in government operations.

The objective of the fund is to support and share the results of projects, which:

• are projected to result in GHG emission reductions in the federal public service
• test or implement innovative approaches with a potential for learning
• have a high potential for replicability
• pursue emissions solutions in difficult-to-reduce areas

Transfer from Transport Canada for climate risk assessment for the Alaska Highway System

Supplementary Estimates (B): $345,000 in 2019 to 2020

Funding profile

The following table includes funding per fiscal year.

Table 7: Funding per fiscal year (in millions of dollars)

Fiscal year	2019 to 2020	2020 to 2021	Total
Total authoritiestable 7 note 1	0.3	0.1	0.4
Table 7 Notes Table 7 Note 1 Funding for 2019 to 2020 sought in this Supplementary Estimates (B) and future years in annual reference level update 2020 to 2021. Return to table 7 note 1 referrer

Summary

Transfer of $345,000 (vote 1—operating expenditures) in 2019 to 2020 and $55,000 in 2020 to 2021 from Transport Canada (TC) to undertake a climate change risk assessment and a system-wide vulnerability assessment for the Alaska Highway system.

Purpose of the funding

To conduct a climate risk assessment of 835 kilometres of the Alaska Highway, from kilometre 133 north of Fort St. John, British Columbia (BC) to kilometre 968 near Watson Lake, Yukon.

To conduct a system-wide vulnerability assessment in order to understand the interaction between climate and the infrastructure components that are anticipated to result in significant vulnerabilities and would require additional detailed engineering analysis.

The results of the assessments will be integrated into the planning, management, operation, and maintenance of the Alaska Highway projects to reduce the impact of climate change on infrastructures and environment as well as alleviate potential risks on road users.

Key climate risks to the Alaska Highway include increased temperatures and reduced summer precipitation and soil moisture, resulting in an increased risk of forest fires that can limit the service on the highway due to increased thermal stress on structures. In addition, changes in the freeze thaw cycle impact drainage systems and increase the risk of black ice which is a major safety concern. Changes in precipitation levels also have an impact on drainage systems and structures. $345,000 in 2019—2020

Background

The Alaska Highway was constructed during World War II to connect the Continental United States with Alaska across Canada. It begins in Dawson Creek, BC, and runs to Delta Junction, Alaska, via Whitehorse, Yukon. The highway stretches 2,450 kilometres (km) through northern British Columbia, the Yukon and the State of Alaska. About 80% (1,900 km) of the Alaska Highway is in Canada.

Public Services and Procurement Canada manages an 835 km segment of the Alaska Highway despite it being provincial Crown land (British Colombia). The remaining segments of the Alaska Highway are owned and operated by the Province of British Colombia (BC) and Yukon Territory. These segments are not part of this project, but efforts will be made to share lessons learned from this project with the provincial and territorial governments.

The design of the highway system was based on historic climate events that in recent years may become irrelevant due to a number of extreme weather events, more frequent and severe storms, which can adversely impact the design integrity and the reliability of the highway system.

The Alaska Highway is the main route to connect communities to 2 main airports in the region (North Peace Regional Airport in Fort St John and The Northern Rockies Regional Airport in Fort Nelson).

Closure or reduction in service would result in economic loss as the highway corridor runs through a resource-based economic region, largely based on forestry, mining, tourism as well as oil and gas.

In the fall of 2017, TC announced the transportation assets risk assessment (TARA) initiative, which provides funding to better understand the climate risks and vulnerabilities to federally-owned and/or managed transportation assets, including relevant studies or research, to provide those responsible for the asset with information to strengthen decision-making.

The project meets the TARA initiative criteria to better understand climate risks and support investment and asset management decisions of federally-owned and/or managed transportation assets.

Transfer from Department of Fisheries and Ocean to transfer administration of land located in Witless Bay, Newfoundland

Supplementary Estimates (B): $250,000 in 2019 to 2020

Funding profile

The following table includes total funding for 2019 to 2020.

Table 8: Total funding for 2019 to 2020 (in millions of dollars)

Fiscal year	2019 to 2020
Total authorities	0.25

Summary

Transfer of $250,000 (vote 5—capital expenditures) in 2019 to 2020 from Department of Fisheries and Oceans (DFO) for the transfer of administration of land located in Witless Bay in Newfoundland.

Purpose of the funding

To transfer the land located at 229-235 Southern Shore Highway, Witless Bay, Newfoundland to DFO.

This property was previously occupied by the Canadian Food Inspection Agency (CFIA). Due to a restructure, CFIA left the premises thus leaving PSPC with a vacant building. As the property no longer met PSPC’s core mandate, it was therefore declared surplus and PSPC transferred the administration to DFO for office / warehouse space for its Conservation and Protection Branch.

Background

The market value was determined to be $250,000 pursuant to the Treasury Board Directive on the Sale and Transfer of Surplus Properties transactions which states that transfers of surplus properties must be done at the highest and best use market value (MV). In the case of a transfer between departments, this is reflected at a budgetary level.

DFO agreed to accept the property in the condition the property is in at the time of the transfer.

Transfer from Canadian Heritage to build capacity in translation, transcription, terminology and interpretation in Indigenous languages

Supplementary Estimates (B): $100,000 in 2019 to 2020

Funding profile

The following table includes funding in 2019 to 2020.

Table 9: Funding in 2019 to 2020 (in millions of dollars)

Fiscal year	2019 to 2020
Total authorities	0.1

Summary

The Department of Canadian Heritage (PCH) is transferring $100,000 (vote 1—operating expenditures) in 2019 to 2020 to promote Indigenous languages and cultures by initiating activities in order to build capacity in translation, transcription, terminology and interpretation in Indigenous languages.

Purpose of the funding

To promote the development of capacity in Indigenous languages services (translation, transcription, terminology and interpretation) through the following activities:

• Build network and partnerships with the Indigenous communities and educational institutions across Canada
• Hold 2-day workshops in Ottawa focusing on bringing language keepers and Indigenous language speakers to learn more about the Translation Bureau's (TB) services and requirements and to familiarize themselves with the parliamentary services
• TB will work with Indigenous post-secondary institutions to perform a scoping study, which will define future research requirements to cover Inuit, First Nations and Metis languages. The results of the study will also provide the necessary information to conduct consultations and for the establishment of strategic partnerships with Indigenous communities and education institutions across Canada

Background

Public Services and Procurement Canada’s Translation Bureau provides linguistic services for parliament and for departments and agencies in multiple languages, including in Indigenous languages. With the adoption of the Indigenous Languages Act, and now that the use of Indigenous languages is recognized in the House of Commons, the volume of requests is expected to increase significantly. The TB will likely be called to play an active role in supporting departments and agencies by offering translation and interpretation in Indigenous languages.

Transfer from Global Affairs Canada to adjust funding previously provided for departmental staff located at missions abroad

Supplementary Estimates (B): $11,361 in 2019 to 2020

Funding profile

The following table includes total funding per fiscal year.

Table 10: Total funding per fiscal year (in millions of dollars)

Exercises	2015 to 2016	2016 to 2017	2017 to 2018	2018 to 2019	2019 to 2020	Ongoing
Main Estimates	-	(0.9)	(0.9)	(1.6)	(1.6)	(1.6)
Supplementary Estimates	(0.9)	(0.04)	(0.5)	-	0.01	-
Total authorities	(0.9)	(1.0)	(1.4)	(1.6)	(1.6)	(1.6)

Note

Funding for 2019 to 2020 sought in this Supplementary Estimates (B) and ongoing in Annual Reference Level Update 2020 to 2021, including transfers to Shared Services Canada.

Summary

Transfer of $11,361 (vote 1) in 2019-2020 and $49,176 (vote 1—operating expenditures) ongoing from Global Affairs Canada to adjust funding previously provided for support to departmental staff located at missions abroad.

Purpose of the funding

This transfer is to return funding associated with the reclassification of positions (LE-08 position to an LE-07 position) of employees located abroad and to review the original reference level contribution in relation to actual costs.

Global Affairs Canada (GAC) provides support related to PSPC departmental staff located at the Embassy of Canada in Washington, DC.

Background

Public Services and Procurement Canada

PSPC has been operating in Washington, DC since 1951.

PSPC’s representatives in Washington, DC have 2 primary lines of business:

• management of the Foreign Military Sales Program and other critical defence procurement agreements with the US government
• support the department’s international engagement activities on broader issues related to procurement and other departmental initiatives

In addition, the PSPC’s representatives are also part of an inter-departmental whole-of-government strategic planning team, managing Canada’s policy objectives for international relations with the US and the Americas. Examples of areas of particular interest to PSPC include export control, protectionist procurement policies such as Buy America, industrial base and trade development, and specific files such as the Detroit Windsor Bridge.

Global Affairs Canada

In accordance with the Treasury Board Common Services Policy and the Department of Foreign Affairs, Trade and Development Act, GAC is mandated to manage the procurement of goods, services and real property in support of diplomatic and consular missions.

To be the single window for Canadian purchases from the US Government through the US Foreign Military Sales Program. Led by GAC, PSPC is a partner department.

Transfer to Crown-Indigenous Relations and Northern Affairs Canada for Timiskaming Dam-Bridge of Québec replacement project

Supplementary Estimates (B): ($20,000) in 2019 to 2020

Funding profile

The following table includes total funding per fiscal year.

Table 11: Total funding per fiscal year (in millions of dollars)

Fiscal year	2018 to 2019	2019 to 2020	Total
Total authorities	0.04	0.02	0.06

Summary

PSPC is transferring $20,000 (vote 5—capital expenditures) in 2019 to 2020 to the Department of Crown Indigenous Relation and Northern Affairs Canada (CIRNAC) for consultations and research activities for the Timiskaming Dam-Bridge of Québec replacement project.

Purpose of the funding

The transfer of funding relates to an amendment of the prior agreement where an additional amount of $20,000 was approved for the following instances:

• $10,000 to the Timiskaming First Nation
• $10,000 to the Wolf Lake First Nation

The additional funding provided to the First Nations above will cover the following activities:

• continue the development of the consultation framework agreement with PSPC
• link technical and administrative fees to consultation activities
• develop activities to inform/solicit input from community members
• research
• community meetings

Background

PSPC is the proponent of the Timiskaming Dam-Bridge of Québec replacement project and has begun a consultation process with the Kebaowek First Nation, the Timiskaming First Nation and the Wolf Lake First Nation, pursuant to the constitutional duty to consult and, where appropriate, accommodate Indigenous People.

CIRNAC has the appropriate mechanism to provide funds directly to the First Nation groups under an existing contribution program, which is not the case for PSPC.

Consultation protocols are signed with Aboriginal groups to create a process to follow when consulting on potential adverse impacts to Aboriginals or treaty rights.

In 2018, PSPC as the proponent of the Timiskaming Dam-Bridge of Québec replacement project began a consultation process, pursuant to the constitutional duty to consult and, where appropriate, accommodate Indigenous People. Total funding of $40K was provided to the following First Nation groups:

• The Kebaowek First Nation: $20,000
• The Timiskaming First Nation: $10,000
• The Wolf Lake First Nation: $10,000
• Total: $40,000

With the objective of fairness towards the First Nations, the agreement was amended in 2019 to 2020 to provide an additional funding of $20,000 to the Timiskaming First Nation and the Wolf Lake First Nation for a total amount of $60,000.

It is the intention of the parties under this agreement to amend its share of the financial contribution to address funding requirements for the 2020 to 2021 fiscal period.

Transfer to the Royal Canadian Mounted Police for Law enforcement records checks

Supplementary Estimates (B): ($190,753) in 2019 to 2020

Funding profile

The following table includes total funding per fiscal year.

Table 12: Total funding per fiscal year (in millions of dollars)

Fiscal year	2018 to 2019	2019 to 2020	2020 to 2021	Total
2018 to 2019 special level agreement (SLA) for 450 law enforcement records checks (LERCs)	(0.2)	(0.2)	(0.2)	(0.7)
2019 to 2020 SLA for a total of 900 LERCs	-	(0.2)	(0.2)	(0.4)
Total authorities	(0.2)	(0.4)	(0.5)	(1.1)

Note

• Funding for 2019 to 2020 sought in this Supplementary Estimates (B) and future years in annual reference levels update (ARLU) 2020 to 2021
• The total may not add up due to rounding

Summary

Public Services and Procurement Canada is transferring $190,753 (vote 1—operating expenditures) in 2019 to 2020 ($0.4 million over 2 years) to the Royal Canadian Mounted Police (RCMP) for law enforcement records checks.

Purpose of the funding

To cover the increase from the original 450 to 900 LERCs per year performed by the RCMP. Based on anticipated business volumes, the RCMP will conduct 900 LERCs per year for fiscal years 2019 to 2020 and 2020 to 2021.

LERCs are one of the tools used by the industrial security programs to determine the reliability and trustworthiness of individuals seeking to “access” controlled goods, and/or who are entrusted with sensitive information and assets. LERCs allow to flag whether the subject has a criminal record or is/has been subject to a police investigation.

Law enforcement records checks support

• The security assessment of certain Canadian industry individuals who are seeking registration under the Controlled Goods Program to legally ‘access’ controlled goods
• The security screening of industry personnel and government employees seeking to obtain a personnel security clearance under the Contract Security Program

Background

A 3-year service level agreement (SLA) was established in 2018 to 2019 between PSPC and the RCMP to conduct 450 LERCs per year.

First transfer was included in the 2018 to 2019 Supplementary Estimates (B) as well as the 2019 to 2020 ARLU for the subsequent 2 years.

Controlled Goods Program

The Controlled Goods Program (CGP) was established in 2001 to regain, and since to maintain, the Canadian exemptions provided under the US International Traffic in Arms Regulations (ITAR) to allow Canadian industry privileged license-free access to the US defence market. This US license exemption, unique to Canada, fosters economic growth by strengthening a shared industrial base which benefits the aerospace, defence, and security sectors of both countries.

Controlled goods are primarily unclassified sensitive items and technologies (for example, technical documentation and data, blueprints, etc.) that essentially have a military or national security significance, including ITAR controlled “defence articles” (for example, missiles, tanks, fighter jets, etc.). The controlled goods list contained in the Schedule to the Defence Production Act details the specific controlled goods that are domestically controlled by PSPC.

Based on various risk assessments, PSPC implemented in early 2011, the Enhanced Security Strategy (ESS) to address identified threats. The ESS involved both enhancements and business improvement measures.

In 2011, the CGP implemented enhancements and business improvement measures to improve the CGP’s ability to deal with potential national security and/or proliferation threats and to proactively mitigate risks to the continued provision of the Canadian exemptions provided under the ITAR.

Contract Security Program

The Contract Security Program (CSP) of PSPC safeguards sensitive information and assets of the Government of Canada, foreign countries, and international organizations entrusted to private sector companies or individuals through government contracting and/or participation in multinational co-operative programs. The authority for the CSP is given through domestic legislation and policy, and international instruments. The Department of Public Works and Government Services Act authorizes the department to contract goods and services on behalf of other government departments and agencies.

Transfer to the Department of National Defence for the shift in workload relating to contracting and procurement of defence supplies (internal supply support)

Supplementary Estimate (B): ($465,729) in 2019 to 2020

Funding profile

The following table includes total funding per fiscal year by phases.

Table 13: Total funding per fiscal year by phases (in millions of dollars)

Phases	2016 to 2017	2017 to 2018	2018 to 2019	2019 to 2020	Full time equivalents
Phase 1	(0.7)	(1.2)	(1.2)	(1.2)	17
Phase 2	-	-	(0.8)	(0.8)	10
Phase 3	-	-	-	(0.5)	6
Total authorities	(0.7)	(1.2)	(2.0)	(2.4)	33

Note

• Funding for 2019 to 2020 sought in this Supplementary Estimates (B) and future years in annual reference levels update (ARLU) 2020 to 2021
• The total may not add up due to rounding

Summary

PSPC is transferring $465,729 (Vote 1—operating expenditures) in 2019 to 2020 and ongoing to the Department of National Defence (DND) for the shift in workload relating to contracting and procurement of defence supplies.

Purpose of the funding

Transfer covers the shift in workload from PSPC to DND due to the increase in DND’s contracting delegated authorities for defence goods and services.

This is the third and last phase of a project within the Defence Procurement Strategy (DPS) initiatives that transfers contracting activities to DND for defence supplies.

Background

Increasing DND’s contracting authorities to $5 million for the competitive procurement of goods and services is one of the many initiatives announced by the Government of Canada following the launch of DPS in 2014.

On June 1 2015, the Minister of PSPC authorized DND to buy or otherwise acquire defence supplies up to a specified amount increasing their contracting authority levels at each phase (Department of National Defence contracting delegated authorities tables below).

DND is taking on additional contracting responsibilities resulting in a need for more personnel to process the related workload. As a result, both departments agreed to transfer 33 full-time equivalents through the thr3ee phases to offset the effect of the shift in workload between the departments.

The implementation plan (3 phases) considered:

• the differences between the departments’ structures and the contracting officers functions
• the time needed to adjust the staffing levels following the transfer of contracting activities
• the difficulty for PSPC to continue to handle the same volume of files as staff move on and are not replaced
• the difficulty for DND to immediately begin performing the full range of contracting activities, in all areas

Department of National Defence contracting delegated authorities

Table 14: Department of National Defence contracting goods delegated authorities

Goods delegation	Phase 1	Phase 2	Phase 3
Electronic	$400,000	$1 million	$5 million
Competitive	$400,000	$1 million	$5 million
Non-competitive	$40,000	$100,000	$250,000

Table 15: Department of National Defence contracting services delegation authorities

Services delegation	Phase 1	Phase 2	Phase 3
Electronic	$2 million	$2 million	$5 million
Competitive	$400,000	$1 million	$5 million
Non-competitive	$100,000	$100,000	$250,000

There are some files that PSPC will continue to manage, such as:

• foreign military sales cases
• ammunitions or small arms
• contracts in which the risk transfer strategy includes
  • use of PSPC commodity groupings
  • limitation of first party liability
  • limitation of third party liability

Transfer to Shared Services Canada

Supplementary Estimates (B): ($1.2 million) in 2019 to 2020 and ongoing

Funding profile

The following table includes total funding for the Data Centre Consolidation project per fiscal year.

Table 16: Transfers to Shared Services Canada for data centre closures (in millions of dollars)

Exercises	2014 to 2015	2015 to 2016	2016 to 2017	2017 to 2018	2018 to 2019	2019 to 2020	2020 to 2021 and ongoing
Main Estimates	-	(1.8)	(3.3)	(5.5)	(6.0)	(6.5)	(7.7)
Supplementary Estimates	(1.8)	(1.5)	(2.2)	(0.5)	(0.5)	(1.2)	-
Total authorities	(1.8)	(3.3)	(5.5)	(6.0)	(6.5)	(7.7)	(7.7)

Note

• Funding for 2019 to 2020 sought in this Supplementary Estimates (B) and future years in annual reference levels update (ARLU) 2020 to 2021
• The total may not add up due to rounding

Summary

PSPC is transferring $1.2 million (vote 1—operating expenditures) in 2019 to 2020 and ongoing to Shared Services Canada (SSC) for reduced accommodation requirements as a result of data centre consolidations associated to power consumption and space efficiencies.

Purpose of the funding

Out of the $2.1 million received by PSPC, $1.2 million in 2019 to 2020 (vote 1—operating expenditures) reflects the amount to be transferred to SSC for reduced accommodation requirements as a result of data centre consolidations.

The $0.9 million in net funding in 2019 to 2020 represents decommissioning costs related to data centre closures paid by PSPC.

Background

In late 2016, SSC and PSPC agreed to a more expedient process for closing and decommissioning the data centres. Under this agreement, when data centres are closed but not decommissioned, PSPC will fund and complete the decommissioning of former data centre space in PSPC custodial assets and recoup the costs from SSC through a reduction of the funding transfers for space. SSC will then release the space to PSPC for reassignment.

Data centre consolidation project

• SSC will close and decommission several hundred legacy data centres and consolidate into about 7 newer and more efficient data centres
• To achieve this objective, SSC and PSPC embarked on the closure and decommissioning of a designated number of data centres on an annual basis
• This is the sixth year of SSC data centre closures
  • the planned project completion is in 2024

Transfer to various organizations to support cluster management offices as part of the Laboratories Canada initiative (also referred to as the federal sciences and technology infrastructure Initiative)

Supplementary Estimates (B): $6.5 million in 2019 to 2020

Funding profile

Table 17: Transfers from Public Services and Procurement Canada (in millions of dollars)

Departments	2019 to 2020	2020 to 2021	2021 to 2022	2022 to 2023	Total
Transportation Safety Board (TSB)	(0.3)	(0.2)	-	-	(0.4)
National Research Council (NRC)	(1.7)	(1.2)	(1.2)	(2.5)	(6.6)
Canadian Food Inspection Agency (CFIA)	(2.8)	(2.5)	(2.5)	(2.5)	(10.4)
Parks Canada Agency (PCA)	(0.4)	(0.4)	(0.4)	(0.4)	(1.6)
Department of Fisheries and Oceans (DFO)	(1.3)	(1.3)	(1.3)	-	(3.9)
Total authorities	(6.5)	(5.6)	(5.4)	(5.4)	(22.9)

Note

• Funding for 2019 to 2020 sought in this Supplementary Estimates (B) and future years in annual reference levels update (ARLU) 2020 to 2021
• The total may not add up due to rounding

Summary

Public Services and Procurement Canada (PSPC) is transferring $6.5 million (vote 1) in 2019 to 2020 ($22.9 million over 4 years) to the 5 lead departments for each science cluster, to help with the implementation and support of cluster management offices as part of the Laboratories Canada initiative.

Purpose of the funding

To ensure appropriate cluster project management to maximize collaboration, optimize space requirements through proper identification of equipment and facilities that can be shared between partners, and to meet the condensed timelines of the project.

The funding supports the role of the cluster management offices to work as the interfacing agent between the Laboratories Canada (LC) Office and the science based departments within the cluster, serving as a single window into the cluster. 

In this role they:

• provide secretarial support to cluster governance committees, documenting and tracking risks, issues, decisions and other cluster management items in a central repository
• coordinate cluster governance approvals for final deliverables to LC Office
• gather requirements and inputs from cluster partners to support activities such as equipment strategy, Information Management and Information Technology (IM/IT) strategy, science information

The 2019 to 2020 funding also supports the following:

• cluster engagement and facilitation for site selection process including cluster governance approvals
• functional programming (FP) engagement on FP process and facilitation in organizing the series of workshops
• collaboration developing cluster work plans and schedules
• development of cluster specific communication materials
• draft development of a proposed cluster charter document
• draft development of a proposed change management strategy plan

Background

The government owns and operates over 3,500 federal science and technology assets, including close to 200 science and research facilities. Limited investment over many years in these facilities has resulted in a portfolio with many facilities at, or beyond, their useful lives. With almost 50% of them built before 1975, the physical, digital and equipment backbones no longer meet modern needs and impede science outcomes and effective decision-making. Of the 78 scientific facilities located in the National Capital Area, 33% are priority facilities requiring attention due to poor performance; 57% are in critical condition, 29% in poor condition, and 14% in fair condition. None are in good condition.

The minister of PSPC is accountable for implementing the new science infrastructure and retains budget and contracting responsibilities. Public Services and Procurement Canada is working with federal science-based departments and agencies to deliver a 25-year strategy aimed at providing federal scientists with leading-edge facilities, modern IM/IT systems, greater access to common tools and reduced policy barriers. The long-term vision and plan is influenced by 6 guiding principles, including:

• science excellence
• collaboration
• a diverse and inclusive talent pool
• agility and responsiveness
• environmental responsibility
• responsible public stewardship

Questions and answers

Question 1: What is Laboratories Canada?

Answer 1: Laboratories Canada is a once-in-a-generation opportunity to strengthen federal science in Canada. The goal of this 25-year, whole-of-government strategy is to provide federal scientists with leading-edge facilities, modern IM/IT systems, greater access to common tools and reduced policy barriers. These 4 pillars will facilitate collaborations that enhance science excellence, enabling federal scientists to continue the important work they do on behalf of Canadians.

The government launched the first phase of a Long Term Vision and Plan (LTVP) by providing $2.8 billion to replace deteriorated federal facilities at the end of their useful life with world-class, collaborative, accessible, and sustainable science facilities:

• health and safety
• security and regulation
• resource management and a low carbon economy
• transportation safety
• cultural heritage and preservation

Question 2: Why are investments being made in federal science infrastructure?

Answer 2: Government scientists rely on federal science infrastructure to play a key role in the lives of Canadians. This includes supporting evidence-based policy, legislation, regulations, and standards; informing responses to threats, opportunities, and emerging priorities; delivering public-good services; and driving economic growth, prosperity, and well-being.

The government owns and operates over 3,500 federal science and technology assets, including approximately 200 science and research facilities. Limited investment over several decades in these 200 facilities has resulted in a portfolio of assets with many at or beyond their useful life. As a result, much of the existing federal science infrastructure is now outdated, with physical, digital and equipment infrastructure no longer able to meet the modern needs of scientists. This rust-out of facilities puts science outcomes at risk, and impedes the ability of federal scientists to collaborate and achieve the highest levels of scientific excellence.

Question 3: Which departments are responsible for Laboratories Canada?

Answer 3: This strategy is a partnership between the minister of Innovation, Science and Industry (ISI) at Innovation, Science and Economic Development Canada (ISED) and the minister of Public Services and Procurement. ISED leads on the overall science policy government-wide, and PSPC leads on the implementation of Laboratories Canada.

The Laboratories Canada Office, in PSPC, is leading the integrated effort across government to deliver this strategy. They are working in partnership with 13 science-based departments and agencies as well as external stakeholders. Shared Services Canada (SSC) is a key delivery partner of Laboratories Canada, working closely with the Laboratories Canada Office as well as key federal science and technology stakeholders to ensure modern information technology (IT) systems are in place to meet the evolving needs of science.

Science departments and agencies will continue to lead the science within their mandates and develop collaborative science to improve Canadian science outcomes.

Question 4: What is the purpose of the funding?

Answer 4: Phase 1 of the strategy will replace ailing critical science infrastructure, and renew and build collaborative facilities in Ontario, Quebec and in Atlantic and Western Canada. Altogether, 11 facilities will be designed and constructed. In addition to these important investments, the strategy also aims to advance a series of science outcomes, bringing together 13 science-based departments and agencies based on their common science goals. It will also address other key deliverables, such as the launch of a horizontal approach to streamline the procurement of science equipment; the mitigation of administrative and policy barriers that impede collaboration; and improvements to digital infrastructure capabilities.

Question 5: How will Laboratories Canada spend the planned $101 million for the next fiscal year?

Answer 5: PSPC will continue to work collaboratively with the federal science community to advance the following:

• Leverage the architectural and engineering services contract for laboratory design for the development of repeatable laboratory standards, functional programming, and concept designs for the renewal of the critical science infrastructure elements
• PSPC in collaboration with its partners will finalize the selection of sites for the 4 new science facilities planned for the National Capital Area
  • The site selection methodology was developed in collaboration with the science-based departments to ensure that science and the scientific community are primary drivers of any decision made for new facilities
  • A list of potential sites has been identified and are currently being assessed against science, real-property and socio-economic criteria
• PSPC will award regional based architectural and engineering services and construction management contracts for Ontario and the Western region and begin the work to design and build facilities located across Canada
• Continue to advance the planning, design and delivery of 11 science infrastructure projects across Canada with the first planned to open by 2022
• The initiative is working with partner organizations to create opportunities for equipment-sharing and cost-sharing
  • One example is listing federal science facilities and equipment on the Research Facilities Navigator with the Canada Foundation for Innovation—an open database through which the science community can share common equipment
• Work is underway to develop a new custody model and operating framework to fund and operate the facilities that supports the long-term viability of these assets and avoid a repeat of the current costly rust-out
• Work is underway with Shared Services Canada, leveraging an integrated project team, to define and develop the IT requirements to deliver science outcomes
  • Shared Services Canada will also launch pilot projects to ensure that the IT solutions support 21st century science needs

Question 6: What is the breakdown of Laboratories Canada investments by province/region?

Answer 6: Through Laboratories Canada, the government is investing $2.8 billion to revitalize federal laboratory infrastructure to provide federal scientists with leading-edge green facilities to support collaborative, multi-disciplinary research.

As part of phase 1, investments are planned in Atlantic and Western Canada, as well as in Ontario and Quebec:

• a new Atlantic science enterprise centre in Moncton, including new laboratory facilities and office space for federal scientists
• new facilities in Quebec City in collaboration with the l’Institut national de la recherche scientifique, and in Val D’Or in collaboration with the Université du Québec en Abitibi-Témiscamingue (UQAT)
• 4 new facilities in the National Capital Region spanning a range of science areas
• renewed facilities in Guelph to support advanced science and technology development to identify, mitigate and control risks related to human health, food safety, consumer protection and domestic and imported products
• construction of the advanced materials research facility in Mississauga and Hamilton. Phase I of the Mississauga facility is scheduled for completion in 2020
• a pathfinder project for Laboratories Canada, a new Sidney centre for plant health is a CFIA diagnostic testing, research and quarantine facility, with both laboratories and greenhouses

Final cost estimates for these investments in Canadian science have not yet been determined. Public Services and Procurement Canada is currently working with federal science based departments and agencies to establish their functional requirements to determine a baseline scope, budget and schedule

Question 7: When can we expect one or more facilities to be completed?

Answer 7: Phase 1 of the Mississauga facility is scheduled for completion in 2020 and the Hamilton facility is targeted for completion in 2022. Detailed schedules for the remaining facilities have not yet been determined given that site selection and functional programming is an ongoing activity.

Question 8: How are the sites being evaluated?

Answer 8: The site selection evaluation criteria includes a variety of science, real property and socio-economic considerations as well as quantitative and qualitative factors, such as:

• science—site utility services, security and safety, environmental and geographic requirements and proximity considerations
• real property—zoning, site size and scalability for future expansion, utility services, geotechnical characteristics and environmental assessment

Question 9: How will building design be developed?

Answer 9: PSPC has awarded a contract, worth up to $100 million to framework, a partnership of Stantec, Merrick and Dialog. The contract, for architectural and engineering laboratory design services, will develop standards for federal science laboratories, as well as functional programming and conceptual designs for these new, state-of-the-art, sustainable, and accessible facilities.

All design requirements will be driven by the science needs of each hub in Phase 1. They will identify these requirements as one of the first steps in the development of their projects which are still being finalized.

Additional design and construction contracts will be awarded to complete design work and construct the new state of the art facilities.

Question 10: Who will be responsible for these buildings once they are completed?

Answer 10: Custodial models are being developed in partnership with the science-based departments and the Treasury Board Secretariat to ensure that an appropriate management regime is in place for these shared facilities.

Question 11: How much is the maintenance of old federal laboratories costing?

Answer 11: Canada’s science infrastructure is in poor condition—the government owns and operates about 3,500 buildings totalling 2.5 million m², which includes about 200 major science and research facilities. Almost 50% of these facilities were built before 1975 and are in need of repair.

For example, of the 78 scientific facilities located in the National Capital Area (NCA), 33% are priority facilities requiring attention due to poor performance, where 57% are in critical condition, 29% are poor condition, 14% are in fair condition, and none are in good condition.

The Government of Canada is spending in the order of $350 million per year to operate and maintain its science assets. The government’s horizontal fixed asset review estimates that an amount between $150 million and $400 million in incremental funding per year would be required just to prevent deferred maintenance costs from increasing.

2019 to 2020 Supplementary Estimates (B) placemat for minister

Parliamentary reporting and supply cycle

April

• Beginning of fiscal year

June

• Tabling of spring Supplementary Estimates (SE)
• Approval of Main Estimates, full supply
• Approval of spring SE supply bills

December

• Tabling of Public Accounts
• Tabling of fall SE
• Tabling of Departmental Results Report (DRR)
• Economic and fiscal update
• Approval of fall SE supply bill

March

• Tabling of last SE for 2019 to 2020
• Tabling of 2020 to 2021 Main Estimates
• Tabling of 2020 to 2021 Departmental Plan
• Budget presentation
• Approval of last 2019 to 2020 SE supply bill
• Approval of interim supply for 2020 to 2021 Main Estimates

Highlights

• Supplementary Estimates (B) were tabled February 18. The total funding sought for Public Services and Procurement Canada (PSPC) in the Supplementary Estimates (B) for 2019 to 2020 is $9.6 million as detailed in the financial overview
• This will increase PSPC’s 2019 to 2020 in-year budget from $4.57 billion to $4.58 billion
• With the funding received in Supplementary Estimates (B), PSPC will have its final funding required for this year to contribute to the government’s priorities of growing the economy, creating jobs, supporting innovation and working collaboratively with other government departments, industry and communities

Process

• Supplementary Estimates seeks additional funding for spending requirements that are incremental to, or not developed in time for inclusion in, the Main Estimates presented at the beginning of this fiscal year
• The 2019 to 2020 Supplementary Estimates B is the last opportunity to seek additional funding for 2019 to 2020
• The Supplementary Estimates are tabled in the House of Commons and then referred to standing committees for review.
  • You are invited to appear at the Standing Committee on Government Operations and Estimates (OGGO) to discuss the Supplementary Estimate (B)
  • The standing committee will subsequently report back to the house with their recommendations
• The items included in this exercise are routine adjustments to the voted appropriations (existing program funding) and non-controversial transfers to other government departments
• Increases to the voted appropriation includes funding for new projects and initiatives, incremental funding for the continuation of existing programs/initiatives, and funding granted through special legislation such as items A and B (located below)
• Transfers to/from other government departments results from agreements between federal organizations where one department committed to provide services to another department as part of its mandate or capacity

Financial overview

Table 18: Voted appropriations (in millions dollars)

Item	Description	Total
A	Accommodation costs for employees providing pension services: Administration of the public service, Canadian Forces and RCMP pension funds.	8.1
B	Reinvestment of revenues from the sale or transfer of real property: Strategic disposal of the property located at 1 Front Street West in Toronto.	6.6
C	Real property quasi-statutory: Funding associated with Crown-owned building and leased space for data center consolidation (of this amount $1.2M has been transferred to Shared Services Canada as per item L).	2.1
Total voted appropriationtable 18 note 1		16.8
Table 18 Notes Table 18 Note 1 Totals may not add up due to rounding. Return to table 18 note 1 referrer

Table 19: Transfers (in millions dollars)

Item	Description	Total
D	Transfer from Treasury Board Secretariat: To support innovative approaches in reducing greenhouse gas (GHG) emissions in government operations (including: 1—Heritage building envelope energy efficiency study in Ottawa and 2—CO2 cooling in server rooms in Montreal).	0.4
E	Transfer from Transport Canada: For climate risk assessment for the Alaska Highway system (835km between Fort St John and Watson Lake).	0.3
F	Transfer from Department of Fisheries and Ocean: To transfer them the administration of the land located in Witless Bay, Newfoundland.	0.3
G	Transfer from Canadian Heritage: To build capacity in translation, transcription, terminology and interpretation in Indigenous languages.	0.1
H	Transfer from Global Affairs Canada: To adjust funding previously provided for departmental staff located at missions abroad.	0.01
I	Transfer to Crown Indigenous Relation and Northern Affairs Canada: Related to Timiskaming Quebec Dam replacement project for consultation and research with relevant First Nations.	(0.02)
J	Transfer to Royal Canadian Mounted Police: For increase of the performance of law enforcement records checks (from 450/year to 900/year).	(0.2)
K	Transfer to the Department of National Defence: For contracting and procurement of defence supplies, representing the third and last phase associated with the transfer of defence procurement responsibilities.	(0.5)
L	Transfer to Shared Services Canada: For reimbursement related to reduced accommodation requirements as a result of data centre consolidations.	(1.2)
M	Transfer to various organizations: Related to the implementation and support of a cluster management office as part of the Laboratories Canada initiative	(6.5)
Total transfers		(7.2)
2019 to 2020 total Supplementary Estimates (B) adjustments		9.6table 19 note 1
Table 19 Notes Table 19 Note 1 This total is the total of the voted appropriations and transfers table combined. Totals may not add up due to rounding. Return to table 19 note 1 referrer

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