Departmental results report and departmental plan: Standing Committee on Government Operations and Estimates—March 12, 2020

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2018 to 2019 Departmental Results Report overview

Background: Departmental Results Report

The Departmental Results Report (DRR) presents the department’s actual accomplishments against the plans, priorities and expected results set out in the corresponding Departmental Plan. The report is tabled in parliament.

Status: Departmental Results Report

The 2018 to 2019 Departmental Results Report for Public Services and Procurement Canada (PSPC) was tabled in parliament on February 26, 2020.

Priority activities: Departmental Results Report

The activities identified below summarize PSPC’s key accomplishments and are presented by the department’s 5 core responsibilities.

• Purchase of goods and services
  • continued to modernize procurement
  • began to implement the e-procurement solution
  • increased outreach activities to diversify supplier base
  • advanced major defence procurements
  • supported the National Shipbuilding Strategy, awarded a contract for Canadian surface combatant ships, launched the first Arctic and offshore patrol ship, began construction of the Royal Canadian Navy’s first joint support ship and began sea trials
• Payments and accounting
  • developed and implemented a human resources-to-pay (HR-to-Pay) integrated plan
  • made clear progress on stabilizing pay, by decreasing the queue of pay transactions at the Pay Centre
  • successfully issued tax slips in both 2017 and 2018 tax years
  • improved communication with pension plan members
• Property and infrastructure
  • implemented smart building technology in 103 buildings across the country
  • constructed 96 electric vehicle charging stations locations on properties within PSPC’s portfolio
  • completed major projects in the parliamentary precinct (rehabilitation of the West Block and Senate of Canada Building and the construction of the first phase of the new Visitor Welcome Centre)
  • developed a 25-year Long Term Vision and Plan to revitalize the Government of Canada’s science laboratories
  • engaged the national construction industry and developed legislation to support prompt payment for federal construction projects
• Government-wide support
  • launched a pilot project to help automate the paper-based and manual business processes that exist within the current Taxi Management Program
  • improved the quality of the Translation Bureau services and tested several artificial intelligence translation tools to assess quality and measure efficiency gains
• Procurement ombudsman
  • raised awareness of the Office of the Procurement Ombudsman’s services with Canadian businesses and federal departments

Performance results: Departmental Results Report

Key performance trends stemming from the report include:

• purchase of goods and services
  • the 2018 to 2019 actual result for the departmental result indicator “Percentage of suppliers that rate the purchasing process as fair and transparent” indicates that PSPC achieved this 56% of the time
    • the methodology for this indicator is being reviewed so that a meaningful target can be established as of 2021 to 2022
    • PSPC will be working to ensure a better response rate and result for 2019 to 2020
  • four departmental result indicators under this core responsibility are missing results and targets due to lack of available data.
    • the current procurement systems will be replaced by 2021, following the implementation of the electronic procurement solution (EPS), which will be able to capture the required data systematically
  • with respect to the indicator: “Percentage of PSPC contracts, standing offers and supply arrangements that include green goods and services”, PSPC has seen a significant increase in the 2018 to 2019 result due to continued engagement with clients and industry on the broader inclusion of environmental criteria in procurements, and by providing clients with opportunities to reduce their environmental footprints
• payments and accounting
  • although the target of 95% for the departmental result indicator “Percentage of pay transactions processed that are accurate and on time” has not been met over the last few years, significant improvements were made year-over-year (from 36% in 2016 to 2017, to 46% in 2017 to 2018 and 55% in 2018 to 2019), and pay stabilizing efforts are ongoing
• property and infrastructure
  • the target of 95% for the departmental result indicator “Percentage of real property projects that meet the needs of clients as defined in the project scope, and are completed on time and on budget” includes both PSPC-managed heritage asset projects and non-heritage projects of over $1 million that are on time, on budget, and on scope
    • the baseline for this indicator was established at 95% based on a 10-year average of 95.7%
• government-wide support
  • regarding the indicator “Percentage of PSPC service standards met”, PSPC has seen a decrease in results with 74% in 2018 to 2019, mainly linked to challenges in meeting pay service standards specifically as well as delays in completing security assessments

Key financial information: Departmental Results Report

Budgetary performance information for core responsibilities and internal services in dollars, including the 2018— to 2019 main estimates, and the 2018 to 2019 planned and actual spending.

Budgetary performance information for core responsibilities and internal services (in dollars)

Purpose of funding	2018 to 2019 Main Estimates	2018 to 2019 planned spending	2018 to 2019 actual spending
Core responsibilities	2,999,994,374	2,999,994,374	3,594,518,662
Internal services	235,396,731	235,396,731	284,557,972
Totals	3,235,391,105	3,235,391,105	3,879,076,634

The difference of $643.7 million between the 2018 to 2019 actual spending and the 2018 to 19 planned spending is mainly due to:

• additional funding received for Build in Canada Innovation Program to bolster innovation and promote economic growth by supporting Canadian innovators
• funding received through Budget 2018 for
  • e-procurement solution that will modernize the government’s procurement function, improve efficiency and help Canadian small and medium-sized businesses better access opportunities to work with the government
  • repair, maintenance and operation of federal buildings to maintain current office accommodation and related real property service levels to federal departments and agencies
  • stabilization of the Phoenix pay system to continue to stabilize operations, enhance technology, support employees, as well as to increase the pay service delivery capacity and to offer better client service support

Questions and answers: Departmental Results Report

Background for question 1: The 2018 to 2019 actual result for the departmental result indicator “Percentage of suppliers that rate the purchasing process as fair and transparent” indicates that PSPC achieved this 56% of the time. The methodology for this indicator is being reviewed so that a meaningful target can be established as of 2021 to 2022. Public Services and Procurement Canada will be working to ensure a better response rate and result for 2019 to 2020.

Question 1: What are the previous results for the indicator “Percentage of suppliers that rate the purchasing process as fair and transparent”?

Answer 1: This is the first time the Departmental Results Report reports this performance indicator; in essence it will create a baseline which will permit for improvements.

Work is underway to refine the questions and associated methodology in advance of the next survey being administered in summer 2020. Part of this work will include providing definitions on key terms (for example, defining “fair”). The results of the 2020 survey will be published in the 2019 to 2020 DRR.

In addition, my department will seek to increase the response rate for suppliers. The 2018 to 19 results are based on a random sample of 2,519 subject matter expert (SME)s awarded contracts in 2018 received an invitation to participate in the survey. Of these, 570 (23%) completed the survey. We will seek ways to increase the rate of completion for the survey.

Finally, my department anticipates SME responses to improve over time through the implementation of procurement modernization initiatives, including contract simplification and the electronic procurement solution.

Background for question 2: Four departmental result indicators under this core responsibility are missing results and targets due to lack of available data. The current procurement systems will be replaced by 2021, following the implementation of the electronic procurement solution (EPS), which will be able to capture the required data systematically.

Question 2: What is your plan to address the lack of data to measure the participation of Indigenous businesses and businesses owned by women in procurement processes?

Answer 2: As noted in my mandate letter, publishing clear metrics to measure government performance on procurements is a priority.

We are taking significant steps in this area, including implementing an electronic procurement solution that will make it easier and faster for all suppliers, such as small and medium-sized enterprises, as well as those owned by women and Indigenous People to do business with the government.

In addition, the electronic procurement solution will help us improve the quality of data being collected, and enhance our ability to report on public procurement activities.

Our Office of Small and Medium Enterprises is also making efforts to collect diversity-based data through outreach activities and undertaking a regular survey with diverse small and medium enterprises.

Background for question 3: With respect to the indicator: “Percentage of PSPC contracts, standing offers and supply arrangements that include green goods and services”, PSPC has seen a significant increase in the 2018 to 2019 result due to continued engagement with clients and industry on the broader inclusion of environmental criteria in procurements, and by providing clients with opportunities to reduce their environmental footprints.

Question 3: What are you doing to improve the percentage of PSPC contracts, standing offers and supply arrangements that include green goods and services?

Answer 3: We are introducing environmental considerations when we plan, buy, use and dispose of all goods and services, including construction. Since May 2018, environmental considerations have been incorporated into standing offers and supply arrangements for more than 30 categories of goods and services.

As of May 1, 2019, new features have been added to the Standing Offers and Supply Arrangements Application (SOSA App) to effectively capture and track all procurement instruments that have incorporated environmental considerations. When buyers are looking to use the SOSA App, they can now apply a green filter, so that the available instruments with environmental considerations are identified as options.

We are also prioritizing commodities that will have the greatest overall impact in reducing greenhouse gas (GHG) emissions and plastic waste, and ensuring that where plastics are procured, they are recyclable or manufactured from recycled content.

We are also engaging the market through requests for information to test readiness with respect to establishing stronger requirements for both plastic packaging, as well as durability of goods.

Review of Public Services and Procurement Canada Departmental Results Framework in the context of its Departmental Plan and Departmental Results Report

Context

Public Services and Procurement Canada (PSPC) revised its Departmental Results Framework (DRF) in 2019 to 2020 to reflect developments in evidence-based performance measurement regimes as well as better support data availability.

The 2020 to 2021 Departmental Plan (DP), based on the revised DRF, comprises 15 departmental results and 45 departmental result indicators.

The 2018 to 2019 Departmental Results Report (DRR), based on PSPC’s initial DRF, comprised 16 departmental results and 49 departmental result indicators.

Key messages

• PSPC has reviewed and amended its DRF and associated indicators to ensure that they can best reflect PSPC’s performance story and provide meaningful measures
• This will result in better measurement and more meaningful information, but will require a transition year to establish baselines and targets in some cases

Current status and/or next steps

• As a result of the amendments made to the DRF, the wording of some departmental result indicators appearing in the 2020 to 2021 DP was changed from the 2018 to 2019 DRR to better measure performance. Footnotes were added to explain the changes as required.
• New targets were set in the 2020 to 2021 DP when data to support their establishment became available while others are still under development.

In 2020 à 2021, PSPC will continue to develop and review the methodology supporting its departmental result indicators to ensure their relevancy and robustness while collecting data to support their measurement.

Questions and answers

Question 1: What are the changes from the 2018 to 2019 DRR to the 2020 to 2021 DP?

Answer 1: PSPC revised its Departmental Results Framework (DRF) in 2019 to 2020 as part of the annual DRF review process to reflect developments in evidence-based performance measurement regimes as well as better support data availability.

As a result of the DRF review, no changes were made to the department’s core responsibilities. However, the revised DRF used for the 2020 to 2021 DP now includes 15 departmental results, while the initial DRF used for the 2018 to 2019 DRR included 16 departmental results.

One departmental result (about national heritage assets) under the property and infrastructure core responsibility was incorporated into another overarching real property departmental result to reduce duplication, redundancy, and streamline departmental-level reporting.

A few departmental result indicators were also amended as part of the DRF review to best reflect PSPC’s performance story and adopt more meaningful measures. There is a total of 45 indicators included in the 2020 to 2021 DP, while the 2018 to 2019 DRR included 49.

Question 2: Why did PSPC review its Departmental Results Framework?

Answer 2: As part of an annual review process initiated by the Treasury Board of Canada Secretariat (TBS), PSPC reviewed its DRF in 2019 to 2020 for the purposes of streamlining departmental-level reporting. Amendments were made to departmental results and departmental result indicators to reflect developments in evidence-based performance measurement regimes and lessons learned during the implementation of the initial DRF, as well as better support data availability. The amended DRF was officially approved by TBS in December 2019 for reporting starting in 2020 to 2021.

Question 3: How does the DRF review impact PSPC’s performance story?

Answer 3: No changes were made to the department’s core responsibilities. One departmental result (about national heritage assets) under the property and infrastructure core responsibility was incorporated into another overarching real property departmental result to reduce duplication, redundancy, and streamline departmental-level reporting. A few departmental result indicators were amended to best reflect PSPC’s performance story.

2020 to 2021 Departmental Plan overview

Background

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

Status

The 2020 to 2021 Departmental Plan for PSPC was tabled in Parliament on March 10, 2020.

Priority activities

The activities identified below summarize PSPC’s key priorities as well as the minister’s mandate commitments and are presented by the department’s core responsibility.

• Purchase of goods and services
  • advance initiatives to modernize procurement, increase diversity of bidders on government contracts and develop better vendor performance management tools
  • make purchasing simpler and easier to access through the phased deployment of the cloud-based electronic procurement solution
  • participate in the development of a proposal for the new Canadian apprenticeship service
  • explore measures that support the conversion of government fleets to zero-emission vehicles
  • in support of reconciliation, work towards increasing the participation of Indigenous Peoples in federal procurement, and have at least 5%of federal contracts awarded to businesses managed and led by Indigenous Peoples
  • advance key defence procurements including the competitive process to replace the fighter aircraft fleet, and explore options for the creation of Defence Procurement Canada
  • work with partners to deliver vessels to the Royal Canadian Navy and the Canadian Coast Guard, as part of the National Shipbuilding Strategy
• Payments and accounting
  • continue progress towards the elimination of the backlog of outstanding pay issues for public servants
  • deliver client-centric services that improve engagement with pension plan members and leverage industry proven best practices
• Property and infrastructure
  • advance sustainability, climate resiliency, and the green agenda for federal real property and infrastructure assets
  • continue to improve crossings in the National Capital Region (NCR)
  • advance the Government of Canada’s commitment to revitalizing federal science and technology laboratories
  • continue to advance the pace of office modernization by delivering an innovative and future-oriented workplace
  • advance major construction activities on the historic restoration of the Centre Block and launch an international design competition for the redevelopment of Crown properties facing Parliament Hill along Wellington and Sparks streets
  • continue to work with Crown-Indigenous Relations Canada, National Indigenous Organizations and the Algonquin Nation to open the short-term use of 100 Wellington Street and to transform this iconic space into a national Indigenous People’s space
  • continue to develop and implement a prompt payment regime for federal construction projects
• Government-wide support
  • continue to provide quality remote interpretation services and adapt to the rapid pace of digital transformation in linguistic services, and enhance the capacity to translate and interpret Indigenous languages, as well as in sign language interpretation
  • continue to explore and implement new and innovative ways to further safeguard the integrity of the federal procurement and real property system
  • support the transition to a more digital government to improve the delivery of government services and enhance the capacity to use modern tools and methodologies
  • continue to transform the Contract Security and Controlled Goods programs to respond to an evolving external threat environment, and develop a more client-focussed delivery approach
• Procurement ombudsman
  • review the procurement practices of federal organizations to promote fairness, openness and transparency
  • review complaints from Canadian suppliers and make recommendations for the improvement of federal procurement practices
  • provide low-cost alternative dispute resolution services

Performance results

Key performance trends stemming from the report include:

• purchase of goods and services
  • the 2018 to 2019 actual result for the departmental result indicator “Percentage of suppliers that rate the purchasing process as fair and transparent” indicates that PSPC achieved this 56% of the time
    • the methodology for this indicator is being reviewed so that a meaningful target can be established as of 2021 to 2022
    • PSPC will be working to ensure a better response rate and result for 2019 to 2020
  • four departmental result indicators under this core responsibility are missing results and targets due to lack of available data
    • the current procurement systems will be replaced by 2021, following the implementation of the electronic procurement solution (EPS), which will be able to capture the required data systematically
  • with respect to the indicator “Percentage of PSPC contracts, standing offers and supply arrangements that include green goods and services”, PSPC has seen a significant increase in the 2018 to 2019 result due to continued engagement with clients and industry on the broader inclusion of environmental criteria in procurements, and by providing clients with opportunities to reduce their environmental footprints
• payments and accounting
  • although the target of 95% for the departmental result indicator “Percentage of pay transactions processed that are accurate and on time” has not been met over the last few years, significant improvements were made year-over-year (from 36% in 2016 to 2017, to 46% in 2017 to 2018 and 55% in 2018 to 2019), and pay stabilizing efforts are ongoing
• property and infrastructure
  • the target of 95% for the departmental result indicator “Percentage of real property projects that meet the needs of clients as defined in the project scope, and are completed on time and on budget” includes both PSPC-managed heritage asset projects and non-heritage projects of over $1 million that are on time, on budget, and on scope
    • the baseline for this indicator was established at 95% based on a 10-year average of 95.7%
• government-wide support
  • regarding the indicator “Percentage of PSPC service standards met”, PSPC has seen a decrease in results with 74% in 2018 to 2019, mainly linked to challenges in meeting pay service standards as well as delays in completing security assessments

Key financial information

Budgetary planning information for core responsibilities and internal services in dollars, including the 2020 to 2021 Main Estimates, and the 2021 to 2022 and 2022 to 2023 planned spending.

Budgetary planning information for core responsibilities and internal services (in dollars)

Purpose of funding	2020 to 2021 Main Estimates	2021 to 2022 planned spending	2022 to 2023 planned spending
Core responsibilities	3,766,548,082	3,799,095,758	3,569,313,877
Internal services	281,723,937	271,071,532	258,397,860
Totals	4,048,272,019	4,070,167,290	3,827,711,737

For 2022 to 2023, the department plans to spend $221 million less than in 2020 to 2021. The decrease is due to the end or winding down of funding in a broad suite of initiatives including:

• the end of incremental funding received from budget 2019 to stabilize the pay operations
• reduction in funding requirements following the implementation of e-procurement solution, an initiative from budget 2018 that will result in simpler and better procurement
• the completion of information technology projects in 2020 to 2021 and 2022 to 2023

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