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Overview pieces: Standing Committee on Government Operations and Estimates—March 12, 2020

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Opening statement

Thank you and good morning.

Mr. Chair, I would like to congratulate you, the vice chairs and all my colleagues on your nomination to this important committee.

I feel very privileged to have been invited by the Prime Minister to join his Cabinet and to serve as Minister of Public Services and Procurement.

With me today are:

Public Services and Procurement Canada (PSPC) is the government’s central purchasing agent, linguistic authority and real property manager. We are also the treasurer, accountant, integrity adviser, and pay and pension administrator. The department is also home to the Receiver General, which manages a cash flow of more than $2.2 trillion a year and prepares the annual public accounts of Canada.

PSPC acts as the engine that runs the government. We play an often unseen, but central role in enabling the work that our government does here at home and around the world.

As an example, we are supporting the Government of Canada’s response to the coronavirus outbreak. Among other things, they handled the chartering of the 2 planes which brought Canadians home, as well as contracts for nursing services, materials and support for returning Canadians.

I will share more examples as we discuss PSPC’s Supplementary Estimates (B) for 2019 to 2020.

Remarks on Supplementary Estimates (B) 2019 to 2020

Through these estimates, we are seeking net appropriations of $9.6 million, bringing our approved funding up to $4.58 billion.

Let me highlight the key items.

We are seeking $8.1 million to cover the cost of office accommodations for our pension service employees.

There are $6.6 million in revenues from the sale of real property that PSPC will reinvest to preserve and maintain our real property portfolio.

We are also seeking $2.1 million in additional funding to address non-discretionary increases in expenses related to operating our buildings.

These supplementary estimates also include a number of transfers of various funds between the PSPC and other departments to advance our government’s priorities.

Mr. Chair, I will also speak to some of my priorities as minister.

Remarks priority files

Phoenix

For me, there is nothing more important than ensuring that our dedicated public servants are paid accurately and on time.

The department has taken important steps towards stabilizing the pay system by increasing compensation capacity 4-fold and implementing the pay pod approach, which has helped address the backlog of transactions.

Over the last 2 years in particular, we have made significant progress and have seen the backlog of cases reduce consistently.

The backlog of transactions with financial implications has been cut by more than half and at the same time we’ve been able to provide employees more than $2.2 billion in collective agreement retroactive payments. We have also recently introduced a new web application called MyGCPay that allows public servants to see more detailed information about their pay and identify potential issues earlier. This was an idea from a public servant and was fully implemented recently.

While we are making progress, we understand that public servants are frustrated by ongoing issues with their pay.

I have been mandated by the Prime Minister to eliminate the backlog. To support this, my officials will be implementing a plan to further increase our pay transaction processing rate through more efficient processes and technological enhancements.

Mr. Chair, we still have much work ahead of us, but my message to employees is that we will not rest until the backlog is eliminated.

Greening

Greening our operations is another area of focus. My department intends to integrate sustainable development and energy and greenhouse gas reduction into all of its real property projects.

The rehabilitation of the Arthur Meighen Building in Toronto and the Sinclair Centre in Vancouver are 2 examples. Just last month, I visited the Arthur Meighen Building to see firsthand how greenhouse gas emissions there will be reduced by up to 80%, which will make it one of the first federal carbon-neutral buildings.

We are also working on a plan to power other federal buildings with 100% clean electricity, where available, by 2022. Where clean electricity is not yet available, we are encouraging that industry. In particular, we are with the province of Nova Scotia to add cleaner, renewable energy to the grid in order to meet our goal of using 100% clean electricity in all federally owned facilities by 2025.

Real property: Health and safety

Mr. Chair, we also manage one of the largest and most diverse portfolios of real estate in the country, and we have implemented a broad investment strategy to rehabilitate our aging assets and dispose of those we no longer require.

Our responsibility in this area comes with its share of day-to-day operational challenges, and when issues arise, we act swiftly.

Health and safety in our buildings is of the utmost importance and we will continue to be vigilant.

Parliamentary Precinct/bridges

Mr. Chair, the restoration of Canada’s parliamentary and other heritage buildings is another key priority.

Building on the successful completion of this building and Senate of Canada Building, PSPC will advance important work on the rehabilitation of the Centre Block. I recently appeared at the standing Committee on Procedure and House Affairs (PROC) to discuss the challenges ahead and how we can best come together, as one Parliament, to make sound enduring decisions. My goal is to have parliamentarians fully engaged, and we will soon share details and costing on the various options before us.

We are making other significant investments in the National Capital Region, including plans to maintain and enhance our interprovincial bridges.

Fighter jets

Mr. Chair, supporting the work of the Canadian Armed Forces and the Canadian Coast Guard remains front and centre in our work.

The competitive process to acquire new fighter jets is moving forward.

I will note that the deadline for preliminary proposals was recently extended at the request of industry participants. This extension allows eligible suppliers to address recent feedback on their security offers, ensuring that Canada receives competitive proposals that meet our technical, cost and economic benefits requirements.

I would like to reiterate that PSPC does not expect that the extension will impact the timeline for the selection of a successful bidder. We remain on track to award a contract by 2022, with the first replacement aircraft to be delivered as early as 2025.

National Shipbuilding Strategy

When it comes to supporting our Navy and Coast Guard, I have had the opportunity to visit our impressive shipyards in Vancouver and Halifax.

In Vancouver, the first 2 offshore fisheries science vessels have been delivered to the Canadian Coast Guard. The third and final vessel is under construction and expected to be delivered this summer. Construction of early blocks for the first joint support ship is also underway.

At Irving Shipbuilding, 4 arctic and offshore patrol ships are under construction, with the first to be delivered to the Royal Canadian Navy later this year. Design work on the Canadian surface combatant is underway.

We are also adding a third shipyard, and Chantier Davie in Quebec has pre-qualified to become our new strategic partner. They will now move to the next stage in the selection process, the request for proposals and evaluation stage.

Mr. Chair, only weeks ago, we issued a request for information, open to all Canadian shipyards, seeking information on domestic shipyard capability to build a polar-class icebreaker.

Given the importance and complexity of this ship, we are looking at all options to ensure efficient and timely construction.

Through the National Shipbuilding Strategy, shipyards of all sizes are benefiting right across the country.

In 2019 alone, the Government of Canada awarded approximately $3.3 billion in new contracts to Canadian companies under the strategy. Of that amount, more than $314 million went to small businesses with fewer than 250 employees.

Overall, the National Shipbuilding Strategy is now contributing over $1.5 billion annually to Canada's gross domestic product (GDP) and supporting more than 15,000 jobs per year, through to 2022.

Closing remarks

Mr. Chair, these are just a few of the activities underway to support government and deliver for Canadians.

I am looking forward to collaborating with parliamentarians, our client departments, Canadian suppliers and the dedicated team at PSPC as we continue our important work.

Honourable colleagues, thank you for your attention.

I would be pleased to take your questions.

Thank you.

Media scan

In this section

Media reporting on Phoenix pay system

Media has reported regularly on the Phoenix pay system since its launch, 4 years ago. Most of the media coverage has been negative and was primarily national (Radio-Canada, CBC and Ottawa Citizen) with local coverage of union demonstrations, for example. Media is still reporting on the ongoing backlog; the overpayments; the collective bargaining; the class action lawsuit; recent union protests; employees’ mental health; the public service employee survey (PSES) 2019 results; the potential Royal Canadian Mounted Police (RCMP deeming, the election results, a privacy breach and the 4th anniversary of the pay system). On a positive note, many public servants are embracing the new MyGCPay web application.

Backlog

Several outlets reported on the federal government allowing a memorandum of understanding (MOU) that provides retention bonuses to New Brunswick Pay Centre employees to expire and the effect that this decision will have on the current backlog. The MOU expired in June 2019 and Public Service Alliance of Canada voiced concerns that without it, the backlog will continue to grow. The MOU was negotiated in August 2017 to provide retention bonuses to employees, boosted overtime pay and provided an incentive to retain and attract new employees.

Overpayments

Recent coverage mentioned that more than 98,000 public servants received overpayments and potentially still owed money to the government. Statistics provided by Parliamentary Secretary MacKinnon to the House of Commons stated that nearly three quarters of federal public servants have been overpaid on at least one pay cheque. With regard to underpayments, Parliamentary Secretary MacKinnon added that “The government is not in a position to provide the answer regarding underpayments as the system cannot automatically calculate such transactions".

Collective bargaining and protests

Articles reported on the dissatisfaction expressed by several federal public service unions on the length of time it is taking the fix the Phoenix pay system. « On est dans une situation tout à fait aberrante », said Yvon Barrière, Public Service Alliance of Canada (PSAC) Regional Executive Vice-President for the Quebec region. Stéphane Aubry, Vice-President of the Professional Institute of the Public Service of Canada (PIPSC) criticizes the slowness with which the federal government acts. « À la vitesse à laquelle ils procèdent en ce moment, ils en ont pour environ cinq à sept ans avant […] d'avoir tout réglé ».

Public Service Alliance of Canada recently mentioned that it remains committed to reaching an agreement with the government that does not simply "replicate what other federal public administration bargaining agents have negotiated," according to their submission to the Public Interest Commission. The union and Treasury Board of Canada Secretariat (TBS) previously engaged in 6 continuous days of last-minute bargaining but were unable to reach an agreement. Magali Picard, National Executive Vice-President for PSAC said that the union is looking for an equitable offer surrounding Phoenix damages, and "absolutely not what's been offered and accepted by all the other unions." She said that "This is something that PSAC will never agree with".

Many outlets reported on the collective bargaining deadlock. Le Droit reported on the protest that happened on December 4, outside of Ottawa Labour Board meetings at 161 Laurier Avenue. Protestors were demanding a fair contract for federal public services employees and compensation for the Phoenix debacle.

Chris Aylward, President of PSAC, publicly mentioned on a number of occasions to be ready for a possible strike if talks with the government were not successful.

Class action lawsuit

Radio-Canada and La Presse Canadienne reported that Quebec-based law firm, Saraïlis Avocats, filed an appeal to the Supreme Court of Canada requesting to include other federal public servants in the class action filed in April 2018. Currently, the class action includes students, casuals and retirees as current federal public servants are represented by their unions. According to the law firm, the new enlarged group could amount to 450,000 people. A decision on the appeal is expected in the coming months. Stéphane Aubry, Vice-President of the Professional Institute of the Public Service of Canada (PIPSC) hopes that the public servants part of the class action will obtain a very good compensation. Magali Picard, National Executive Vice-President of PSAC applauds the appeal to broaden the public servants pool eligible for the class action.

Mental health

Multiple outlets reported negatively on the story about Linda Deschâtelets, a federal employee, who died by suicide in December 2017. Coroner Pascale Boulay connected her death to pay problems faced by Ms. Deschâtelets. "During the final months before her death, she experienced serious financial troubles linked to the federal government's pay system, Phoenix, which cut off her pay in a significant way, making her fear she would lose her house" and that "A thorough analysis of this case strongly suggests that this death could have been avoided if a search for a solution to the current financial, psychological and medical situation had been made".

CBC reported that retired nurse Jennie Jackson finally received the $4,000 owed to her of pension money held up by Phoenix since 2017. Her story was published by CBC on November 1st and she said "I'm pretty sure it's because of the media coverage". "I've waited almost 2 years and all of a sudden it goes public on Friday and Monday morning 8 a.m. I'm getting results.” Ms. Jackson is still missing a final pay cheque and does not know when it will be received. On the other hand, retiree Jacques Desrosiers has been owed a $58k severance package for 2 years and has not seen any of it due to Phoenix. « C'est comme si on tombait dans le vide lorsqu'on appelle », he said « Tu ne sais plus à qui parler. » Radio-Canada also reported that many federal employees are still affected by the failures of the Phoenix pay system in Saguenay-Lac-Saint-Jean, causing a lot of stress and anxiety to employees.

Public Service Employee Survey results

Coverage on the results from the 2019 Public Service Employee Survey (PSES) related to Phoenix has been factual and negative, showing that 74% of public servants have been affected by Phoenix pay problems. More than 180,000 public servants took part in the survey and only 25% of public servants reported being unaffected, while 32% reported being affected to a small extent. The articles continued to list several other statistics from the survey that are related to Phoenix. Chris Aylward, national president of PSAC called the survey results “staggering” and is quoted as saying that "federal public service workers have been paying for the government's mistakes for years, and it's time for our government to start paying them back".

Royal Canadian Mounted Police transfer

Le Droit, and a number of other outlets, reported on the possible transfer of 4 000 Royal Canadian Mounted Police (RCMP) civil employees to the public service, thus transferred to the Phoenix pay system. The conversion could take place in mid-May but the final decision has not yet been made. Stéphane Aubry, Vice-President of the Professional Institute of the Public Service of Canada (PIPSC), union representing 1,300 members of the RCMP, said that « Ce n'est vraiment pas une bonne idée, on s'oppose toujours à cette orientation. On garde un œil ouvert là-dessus depuis que la GRC a annoncé qu'elle songe à faire ce transfert. » Public Services and Procurement Canada (PSPC) Minister Anand has been questioned twice during Question Period in the House at the end of January on that specific issue.

In February, the decision was made to not transfer the civilian RCMP employees to the Phoenix pay system. Treasury Board President Jean-Yves Duclos said that the government heard the concerns of employees and their union and, along with the public safety minister, have decided not to go ahead.

New minister of Public Services and Procurement

In a CBC interview, PSPC’s new Minister Anand, noted that “there's no question that Canada's public servants deserve to be paid accurately and on time for their important work, and that's something that I'm going to continue to turn my mind to”. She added that her background will lend itself well to handling the issues she will be facing as PSPC Minister. Debi Daviau, President of the Professional Institute of the Public Service of Canada (PIPSC) tweeted that she had her first meeting with new PSPC Minister Anand and described it as being “productive”. They discussed the concerns with Phoenix and Government of Canada workplaces. She said that she was looking forward to more opportunities in the future. In January, Toronto Star reported on the number of files Minister Anand will need to take on in her new role, such as “The procurement process for a new fighter jet. Shipbuilding contracts. A new vision for Canada Post. Fixing the Phoenix pay system debacle that has screwed up the pay cheques for thousands of federal civil servants.”

Privacy breach

Multiple outlets reported negatively on a privacy breach that impacted just over 69,000 public servants. According to an article by the CBC, on February 4, 2020, 161 chief financial officers and heads of human resources (HR) in 62 departments inadvertently received an email containing a report with employee’s personal information. The report contained employee addresses, personal record identifiers and the amount of overpayments related to the Phoenix pay system. The Ottawa Citizen noted that the biweekly report was encrypted and “is believed not have gone outside government”. The CTV News reported that in a statement released by PSPC, the error was reported the same day it occurred and all necessary steps were taken “to contain and destroy the improperly shared information”. The article mentions that an investigation is underway, including a review of procedures as well as a stop to the bi-weekly email containing the sensitive overpayment report.

Fourth anniversary of Phoenix

Multiple outlets reported on the 4th anniversary of the Phoenix pay system. While the majority of the articles reported negatively, an article by the Miramichi Leader was hopeful in tone, noting that Minister of Public Services and Procurement Anita Anand maintains “that things are on the mend”. Minister Anand stated in the article that the implementation of pay pods has been “significant in helping us reduce our numbers and get to where we are at the current time".

Outlets reported on protests happening throughout the month of February in different Canadian cities relating to the 4th anniversary of the Phoenix pay system. Global News reported that roughly 100 people gathered in downtown Edmonton to voice their “continued concerns” over the pay system. The article shared personal stories from public servants and how they were negatively affected. Shawn Follett, employee of Indigenous Services Canada, is quoted as saying “Financially it’s been pretty tough at times. A few sleepless nights. Probably a lot of sleepless nights. Not quite sure how to pay some bills”. Radio-Canada reported that more than 20 members of PSAC gathered outside of a federal building in Winnipeg, demanding fair compensation to members affected by the pay system.

CTV News and Radio-Canada reported on multiple protests that took place on Friday, February 28th. Approximately 60 unionized public service members and leaders of the Public Service Alliance of Canada demonstrated outside the Prime Minister’s office. Employees shared their individual stories of how the pay system has impacted their lives. Dozens also protested in front of the Public Service Pay Centre in Miramichi.

On a positive note, Ottawa Citizen reported on many public servants embracing the new MyGCPay web application. A Reddit user wrote that "It doesn't fix Phoenix, but it's a relatively clean and intuitive system to be able to get information," while another one wrote "It's very modern, [user experience] is excellent and information is useful. Good job whoever was responsible".

Media reporting on next generation human resources and Pay Solution Pilot

Following a rigorous evaluation process involving 3 vendors; SAP, Ceridian, and Workday; SAP was chosen to work on a pilot to test the complexities of the government's HR and pay requirements. While the SAP Canada selected to run Phoenix replacement pilot project announcement was noted as a positive step forward, the Ottawa Citizen reported that PSAC officials were worried of the lack of consultation, quoting PSAC present Chris Alward "We're pleased that that process is finally moving forward after four years of Phoenix nightmares, however, we're still disappointed that the government didn't consult with PSAC. We are by far the largest union - we represent 65% of workers in the federal government - and they didn't apprise us of this at all".

Media reporting on the National Shipbuilding Strategy

Media coverage of the National Shipbuilding Strategy (NSS) was primarily national (David Pugliese, Murray Brewster, and Lee Berthiaume) with a regional focus (Andrea Gunn in Atlantic Canada and Jane Seyd on the west coast, for example). The regional focus is especially strong in Québec for any announcements where Chantier Davie is involved (Le Soleil and Le Journal de Québec, primarily).

Since September 2018, 7 major NSS announcements were made. The first one was the identification of Lockheed Martin as the preferred bidder to provide the design and design team for the Royal Canadian Navy’s future Canadian surface combatants (CSC), on October 19, 2018. On November 1st, advance contract award notices (ACANs) for maintenance services for 12 Halifax-class frigates of the Royal Canadian Navy were issued to Irving Shipbuilding Inc., to Chantier Davie, and to Seaspan Victoria Shipyards. These ACANs have a combined value of $7 billion. The construction of a sixth Arctic and offshore patrol (AOPS) vessel was announced on November 2, 2018. On February 8, 2019, the Government of Canada (GC) announced that Lockheed Martin Canada was selected for the design of 15 new Canadian surface combatants that will be built at Irving Shipbuilding. On May 25, 2019, it was announced that the Coast Guard fleet will be completely renewed, with 18 ships to be built as part of a $15.7 billion package. On August 2, 2019, the federal government announced that the Coast Guard would obtain 6 new icebreakers, and awarded the $610 million contract to Davie. Finally, on December 19, 2019, the Government of Canada announced the next step toward adding a third strategic partner under the National Shipbuilding Strategy.

On February 28, 2020, the government made public its intention to consult the industry on polar icebreaker by issuing a request for information (RFI), open to all Canadian shipyards. The RFI will be open until March 13, 2020.

Irving Shipbuilding: Halifax

In November 2018, The Chronicle Herald reported on Defence Minister Harjit Sajjan’s announcement that the federal government would invest approximately $400 million for a sixth Arctic and offshore patrol ship (AOPS). Minister Sajjan was quoted saying “This announcement means more jobs, stability of jobs, for hardworking Canadians here in Halifax over the next 6 years".

On May 22, 2019, a contract was awarded to Irving for the construction of a 7th and 8th AOPS, which will be adapted for the Canadian Coast Guard (CCG). This new contract will help further bridge the production gap at the shipyard. The announcement was well received by the media.

In June 2019, the cost of the Canadian Surface Combatant warships project was reported to be estimated by the parliamentary budget officer (PBO) at $70 billion, roughly $8 billion more than the 2017 PBO report and far more expensive than the original quote of $26 billion from the previous Conservative government. The increase in cost is primarily due to delays and changes in the size of the ship. Outlets reported negatively, stating that the costs are likely to increase as it is still in the planning stages.

In July 2019, the Government of Canada awarded contracts to Chantier Davie and Seaspan Victoria Shipyards Limited, initially totalling $1 billion to carry out maintenance work on the first group of Canada’s Halifax-class frigates with a third contract ‘on the way’ to Irving. In August 2019, Irving was awarded a contract worth $500 million. These contracts are a part of the $7.5 billion being invested in the Royal Canadian Navy’s 12 Halifax-class frigates. The general tone around this announcement was positive, as the contract is expected to create or sustain 400 jobs at the shipyard.

Over the last couple of months, media have reported negatively on a further delay of the delivery of the first AOPS. There was also reports of the sea trials for the Harry DeWolf ship having begun over the winter (2020) with Irving and Department of National Defence (DND) personnel onboard. More recently, on March 6, it was reported that the delivery expected by the end of the month had yet again been delayed. The Ottawa Citizen mentioned that the “delivery would happen sometime before June 21,” but that DND could not confirm a specific delivery date. The arrival of the second AOPS has also been delayed.

Following figures tabled in Parliament in early 2020, media have reported negatively on the amount of money spent on 2 NSS programs—the CSC and the joint support ship—that have been ongoing for several years without producing any ships yet. More specifically, $1.01 billion spent on design and preparatory contracts over the last 7 years. It is reported that government officials are saying the design phase is not finished and that the increase in cost is primarily due to delays. Questions are raised around choosing off-the-shelf designs as a cost and time efficient option.

On March 2, 2020, media reported that federal Fisheries Minister Bernadette Jordan announced that the $12.1 million contract for the refit of the Canadian Coast Guard icebreaker Edward Cornwallis was awarded to Irving-owned Shelburne Ship Repair. It is reported that since the launch of the NSS, more than $7.5 billion in contracts has been awarded under the repair, refit and maintenance pillar of the strategy. Media coverage of the announcement was mostly factual and positive.

Chantier Davie: Lévis

On August 2, 2019, the federal government announced that the Coast Guard would require 6 new icebreakers, and also formally launched the process to add a third shipyard to the National Shipbuilding Strategy. The winning bidder is guaranteed work with a plan to construct the new icebreakers for the Coast Guard. Most of the articles mentioned Davie Shipyard as being the only player positioned to benefit from the process. As for existing partners, the addition of a third yard to the strategy has been publicly opposed in the past. Industry experts stated that the government is not necessarily wrong in adding a new shipyard, but they have not sufficiently explained to the public why it is necessary. They also state that adding a third shipyard could contribute to another boom and bust cycle 30 years down the road, which limiting the strategy to 2 shipyards was supposed to stop. Quebec articles were positive, while outlets from other provinces were more cautious and somewhat negative, especially those associated with Irving or Seaspan.

Public Services and Procurement Canada and CCG awarded a $610 million contract to Chantier Davie for the acquisition of 3 icebreakers and work to prepare the first ship for service in the Canadian Coast Guard, securing up to 200 jobs at Chantier Davie. The tone in the media was somewhat negative regarding the creation and maintenance of jobs following the announcement, noting that the conversion of the 3 icebreakers will allow the company to only maintain up to 200 jobs for a period of approximately 2 years.

On December 19, 2019, the government announced the next step toward adding a third strategic partner under the NSS. The release explained that Chantier Davie has pre-qualified to become the third strategic partner under the NSS and that the third yard will build 6 program icebreakers for the Canadian Coast Guard. Chantier Davie is now moving to the next stage in the selection process, the request for proposal (RFP) and evaluation stage. Media coverage of the announcement was high, reporting mostly factually and positively.

February 2020, media reported that 300 workers responsible for the conversion of 2 icebreakers at Chantier Davie have been temporarily laid off due to the presence of lead in the paintwork. The tone in the media was negative regarding the situation. It was reported that the company’s management was not informed by the Coast Guard of this issue. However, Chantier Davie explained to the media that workers would restart work shortly and with no impact on the timeline for the 2 icebreakers to be delivered this year.

Seaspan Shipyard: Vancouver

On May 22, 2019, Canada’s Prime Minister announced the renewal of the Canadian Coast Guard fleet. Seaspan’s Vancouver Shipyards was awarded a contract to build 16 non-combat ships under the NSS. The Canadian government pledged $15.7 billion to build new ships for CCG. The announcement was good news, with George MacPherson, President of the Shipyards General Workers Federation, saying he's “never seen anything as big as this”. He also noted that “we're going to see generations of shipbuilders trained and come into the industry—so good news for the province, good news for the industry”.

Soon after, several media outlets reported that the government had quietly removed the plan to build the CCGS John G. Diefenbaker from Seaspan. No decision on where the icebreaker will be built was provided and is not expected to be made until the government choses a third shipyard to join the NSS. Fisheries minister stated that ''Given the importance of icebreaking capacity, the government is exploring other options to ensure the [icebreaker] is built in the most efficient manner, but no decisions have been taken.”

Multiple sources reported on the June 27, 2019 Seaspan delivery of the Sir John Franklin, being the first ship under the National Shipbuilding Strategy. The Franklin is the first of 3 offshore fisheries science vessels being constructed by Seaspan. The vessel was delivered to the Canadian Coast Guard and marked the first time in over 30 years that the CCG has received a newly built ship. The coverage was mostly positive, even though its delivery was 2 years behind its initial schedule.

On January 16, 2020 media reporter on the ceremonial keel-laying for Canada’s largest naval ship and fourth vessel built by Seaspan. The vessel to be named HMCS Protecteur is the first of 2 joint support ships to be delivered under the NSS. Mark Lamarre, Seaspan Shipyards Chief Executive stated that the joint support ships will be the "largest naval ship ever built in Canada—a tremendous accomplishment for all the skilled and committed men and women involved in her design and construction".

Media reporting on the Future Fighter Capability Project

Media coverage related to the replacement of fighter jets has been moderate, mostly factual and negative since September 2019. Media coverage has been low regarding the release to the bidders of the request for proposal (RFP) for the $19 billion Future Fighter Capability Project (FFCP). Coverage relating to procuring used jets from Australia has also been low. Several other articles reported on how the competition is biased towards Lockheed Martin’s F-35. As the election campaign approached, a number of articles relating to the views expressed by the different political parties on the fighter jet replacement were also reported on. In January 2020, a moderate number of articles were published regarding the project, specifically the lack of cold weather testing and continuing opinion pieces on the alleged bias towards the F-35. In late February 2020, multiple outlets reported factually on the government extending its deadline for proposals for new fighter jets. The articles state that the extension is due to industry requests.

Request for proposal for the replacement of fighter jets

In December 2017, the Government of Canada launched an open and transparent competition to replace Canada’s fighter aircraft competition to permanently replace Canada’s fighter fleet with 88 advanced jets. In February 2018, Canada established a list of eligible suppliers.

In July 2019, the Government of Canada issued a RFP for the FFCP and the following 4 suppliers were identified: Saab, Airbus Defense and Space, Lockheed Martin and Boeing. James Bezan was quoted as saying it is “inexcusable” that the past 4 years have been spent “dithering” on the fighter jet file. The CTV News article ‘Feds expected to announce official request for CF-18 replacement jets today’, quoted Minister Qualtrough saying “it’s taken far too long,” however “she is sure the government has got it right”.

In August 2019, after a detailed review of the RFP, Airbus decided to pull out of the competition citing the strict North American Aerospace Defense Command (NORAD) intelligence and security requirements and the cost they impose on companies outside of North America. That led to speculation about whether the other European competitor, Saab, would also drop out.

In January 2020, the Ottawa Citizen reported that firms competing in Canada's future fighter jet program have not yet heard back from the federal government on the security and interoperability requirements documentation they filed at the beginning of October as a prelude to submit their bids, but that PSPC advised that feedback is expected to be released shortly.

Following the publishing of PSPC’s news release on February 25th, multiple outlets reported that the March 30, 2020 deadline for preliminary proposals for the FFCP would be extended until June 30, 2020. Defence minister Harjit S. Sajjan added that the delay will “allow the eligible suppliers to make their best possible offer to ensure that we are able to provide the equipment our members need at a fair cost to Canadians.” James Bezan, defence spokesperson for the Conservative Party tweeted "Here we go again with more Liberal dithering and delaying because of Trudeau's weak leadership. Meanwhile our air force is stuck with old rusted out fighters from Australia!" The tweet was captured in David Ljunggren (St. John’s Telegram) article.

Media coverage related to the creation of Defence Procurement Canada (DFC) and the steps being taken to potentially create the new procurement agency has been low, with few details given. In February 2020, Chris Thatcher (Skies Magazine) reported that little was said about the proposal during the election campaign but that certain ministers, including Minister Anand, were tasked with bringing forward options to establish DFC. A second Skies Magazine article notes that “It is unclear how the formation of the procurement agency would affect the Future Fighter Capability Project moving forward”.

Used fighter jets purchased from Australia

In November 2018, Canada entered into an agreement with the Government of Australia to procure 18 used F/A-18 fighter jets to supplement its current CF-18 fleet for an interim period.

In July 2019, the first 2 fighter jets procured from Australia became operational. Media coverage was low and factual, laying out costs and timeframe associated with the interim procurement and the broader replacement project in the future.

Several articles reported factually on the different stances the Liberals and the Conservatives have relating to the procurement of the Australian jets. The Liberals stated that the extra jets are needed to deal with a capability gap and the Conservatives stated that the capability gap never existed.

Alleged bias towards Lockheed’s F-35

In September 2015, Prime Minister Trudeau announced that a Liberal government would not buy the F-35 but would instead launch an open and transparent competition to purchase a cheaper aircraft to replace the CF-18, using savings to focus on the NSS. On the eve of the 2019 federal election, the F-35 touched down in the NCR to participate in the Ottawa-Gatineau Airshow “giving many of the capital's movers and shakers their first up-close look at an aircraft that has consumed a lot of oxygen in Canadian politics”.

Murray Brewster of CBC article ‘The high-speed hard sell: why the F-35 is coming to a Canadian air show’, is quoted as saying “Lockheed Martin is making its case both behind closed doors and through a marketing campaign that includes billboards throughout the capital region and a heavy social media presence”.

Several outlets also reported that the process was rigged towards Lockheed Martin’s F-35 because of changes to the industrial benefits needed for the procurement. “Bids must be submitted by the spring of 2020 but there is a growing sense among the defence industry that the F-35 will ultimately be selected as the new aircraft for the RCAF.”

In January 2020, the Ottawa Citizen reported that Canada will not conduct cold weather flying tests between the competing jets, in contrast to Finland which is currently running a procurement project for 64 aircraft and is considering the same jets. “Finland and Canada are considering the Boeing Super Hornet, Lockheed Martin F-35 and Saab Gripen. The Finnish Air Force is also testing the Dassault Rafale and the Eurofighter Typhoon, both of which pulled out of the Canadian competition because of worries the process was rigged to favour the F-35”.

Media reporting on real property

Bed bugs

The coverage for bed bugs in federal buildings was extensive and negative. In total, 18 federal buildings, such as Immigration, Refugees and Citizenship Canada, Complexe Guy-Favreau and others were reported being affected and some of them were temporarily shut down until the situation was resolved.

With the growing number of cases, the PSAC has voiced its concern for employees. In a CBC article, PSAC’s national executive vice-president stated "Employees have a right to feel safe at work, and they're rightfully worried about bringing bed bugs home with them and affecting their families, which is having an impact on their mental health”. PSAC also questioned the manner in which the problem was being addressed, suggesting that the government fumigate entire buildings.

As a result of the number of cases being reported, the Journal de Montreal reported that in early November, PSPC has issued a call for tenders to find a pest management service. The request reads that "There is an urgent need to consider the health and safety risks associated with the bed bug situation", and "due to the increasing number of government buildings affected by bedbugs, it is impossible to extend the tendering period, as the Government of Canada is required to act quickly and proactively to control the spread of bedbugs".

St. John’s Telegram reported on February 4, 2020 that infestations of bedbugs in federal buildings in Ottawa and Gatineau have cost the Liberal government nearly $1 million over the last 3 years. The Journal de Montréal also published on the issue by reporting that bed bug treatments have cost more than $300k for the Place Montcalm building alone, located in Gatineau.

Les Terrasses de la Chaudière

In April 2019, it was reported by many outlets that following an "open, fair and transparent bidding process", PCL Constructors Eastern Inc. had been awarded the 217.6M contract for exterior renovations of Terrasses de la Chaudière (TLDC). CBC reported that renovations were needed as bricks covering the complex have been falling, posing both safety and liability risks. Gatineau MP Steven MacKinnon stated "The updated exterior of the Les Terrasses de la Chaudière complex will provide a safer, more modern workplace for federal employees and become a landmark in the region", while PSPC noted the renovations are necessary to support its policy of having a "75/25 Ottawa/Gatineau employee ratio" in the capital region.

Radio-Canada reported on February 25, 2020 that the rehabilitation work on the exterior of TLDC is delayed due to tests being conducted on the type of siding to be used. Parliamentary secretary to the minister of Public Services and Procurement Canada, Mr. Steven MacKinnon, was quoted saying « Nous avions des inquiétudes quant à la durabilité. Donc, nous allons revenir avec un nouvel échéancier, afin de nous assurer que les mêmes erreurs ne seront pas répétées et que nous avons un immeuble qui va encore durer des décennies ». The work, originally scheduled to begin at the end of 2019 is now due to commence in late 2020.

There has been negative coverage related to the air quality and sanitation problems in Terrasses de la Chaudière since last September. The Public Service Alliance of Canada put pressure on the government by saying that « ce n'est plus vivable pour ses membres » to be in the building. The Hill Times reported that following a tour of TLDC, PSAC was considering filing a complaint under the Canada Occupational Health and Safety Act against the federal government over air quality, fire code, and process concerns.

On October 29, PSAC invited employees to mobilize and protest for things to change, calling an activity « T'amènes ta chauve-souris au travail? », in reference to the presence of bats flying in the buildings and caught on camera. Six unions participated and a petition was also created for employees to sign. PSAC is pushing for the creation of a joint committee, having some PSPC representatives, relevant departments and union representatives; which would be mandated to find solutions to this series of "lasting" problems.

CBC reported on high levels of lead found in the water at TLDC during testing that took place between December 9 and January 25, 2020. High levels of lead were found in 8 of the 249 consumption points. PSPC was quoted in the article saying "Investigations are continuing for the 6 other locations that have exceeded the recommendations and as long as it is in progress, they remain out of service", and noted that bottled drinking water was provided in the affected areas. Andrew Shaver of the Union of National Employees commented, “If you go to work and you can't drink the water that tells you a lot about the place you work”.

On February 25, 2020, Radio-Canada reported that Parliamentary Secretary to the Minister of Public Services and Procurement Canada, Mr. Steven MacKinnon, confirmed that all mechanical systems, including ventilation, heating and plumbing will be renovated. It is reported that by the end of 2022, one-third of the 6,000 federal employees working at TLDC will be in refurbished work spaces.

Sixth crossing in the National Capital Region

Media coverage related to the sixth crossing was moderate and factual. In September 2019, the National Capital Commission (NCC), issued a call for tenders to retain the services of a professional firm to write a "Long-Term Integrated Strategic Plan for interprovincial crossings in Canada's Capital Region", in which a sixth interprovincial bridge was to be considered. On October 16, 2019, 48 hours before the call was to end, mayors of Ottawa and Gatineau expressed their concerns to the NCC and the call for tenders was cancelled. NCC spokesperson Mario Tremblay explained in Le Droit that "Based on questions and comments received from interested suppliers and stakeholders, the NCC has decided to take the time necessary to modify the content of this call for tenders in order to ensure the long-term success of this planning exercise".

In mid-December 2019 multiple outlets, including Le Droit, reported on the NCC’s revised tender for the development of an integrated long-term plan for inter-provincial and transportation links between Ottawa and Gatineau. The first was withdrawn at the end of the federal election campaign when Gatineau and Ottawa mayors lobbied the NCC with their concerns. The new tender states that it will be « approprié d'établir de commun accord une vision et un plan qui permettront à tous les partenaires, selon les rôles et les responsabilités respectives de chacun, de travailler ensemble à la planification et la réalisation d'un réseau de transport interprovincial intégré, durable et axé sur la connectivité et la mobilité ».

Catherine McKenna, Minister of Infrastructure and Communities, said she wanted a sixth crossing but also a vision for public transit. In an interview on « Les Matins d'ici », McKenna indicated that she was awaiting the results of the new study conducted by the National Capital Commission.

Following the latest federal elections and swearing-in ceremony, responsibility for the NCC now falls under PSPC minister. This decision to add the NCC portfolio to PSPC was questioned in several articles published by the Ottawa Citizen and the Ottawa Sun. It was suggested that local interests would be better represented if the NCC portfolio fell under one of the 2 federal ministers from the National Capital Area.

Guy-Favreau YMCA

Multiple outlets reported on the closure of the Guy-Favreau YMCA in Montreal’s Chinatown. In early December 2019, the mayor of Montreal wrote to PSPC Minister Anand to ask that she "evaluate the different avenues that would allow the continuation of the YMCA Guy-Favreau". The local MP, and Heritage Minister, Steven Guilbault, stated that the federal government and the city of Montreal were working together to find a solution, however the decision to close laid ultimately with the YMCA.

Carling Campus

The Ottawa Citizen has reported on multiple occasions on the issues surrounding the DND Carling Campus. In early December, an article was published regarding the remote location of the campus and its lack of parking and transportation alternatives for the employees. The article stated that the facility has the parking capacity for approximately half of the eventual 9,300 employees at the site. The Ottawa Citizen also reported on cell phone reception issues. A DND spokesman is quoted "Bell did not have service coverage in the campus area and once DND began to migrate users to Bell, this issue was raised immediately to the attention of Shared Services Canada and they engaged with Bell”. The article notes that while a temporary solution is in place, a permanent solution should be “in place within a year or 2”. On February 3, 2020 the Ottawa Citizen reported on Treasury Board Secretariat’s directory of federal real property. The article states that despite the $537M spent to upgrade the facility, the location has been listed in poor condition. PSPC’s response is included in the article stating that "Carling Campus is not currently on PSPC's list of assets in critical condition. We will work with TBS to ensure that this is reflected in the directory of federal real property list".

Parliamentary Precinct

Media coverage related to the Parliamentary Precinct in the last few months has been low to moderate, mainly factual with a balanced tone. Articles with a negative tone pertained in good part to the lengthy process for the rehabilitation of Centre Block and to the perceived indecisiveness with regard to the future of 100 Wellington. Coverage of the newly launched block 2 project and of the Long Term Vision and Plan (LTVP) for the precinct as a whole had a more positive tone.

Long Term Vision and Plan

The LTVP was reported on mostly factually and positively, highlighting previous renovation projects successfully completed by PSPC under the LTVP. The Hill Times listed several LTVP-related projects noting that some of these won multiple awards. The article lists the Sir John A. Macdonald Building, the Wellington Building, the West Block Building, and the Senate of Canada Building as award winners. The Ottawa Citizen quotes David Flemming, chair of the Heritage Ottawa Advisory Committee, “The federal government does an excellent job when it does upgrade its properties, hiring top architects and winning numerous awards for design excellence, sustainability and heritage conservation”.

Centre Block

Media coverage related to the Centre Block has been moderate and mostly factual since the renovations began in 2018. Coverage has focused on different aspects of the project including timeline, cost, scope, and general details of the work being done. Several outlets reported negatively on the timeline, saying that renovations are expected to take up to 10 years to complete. The Hill Times notes that a final budget has yet to be determined for the project but that more than $770 million in contracts have been awarded to date. Other articles also noted that the project is 4 times larger than the West Block project. Following an interview with a PSPC subject matter expert, CTV reported on the building information model (BIM) and how it is a key tool for the rehabilitation of Centre Block. The article quotes a PSPC media response on the cost of the BIM: “the cost to support the BIM technology is approximately $180,000, but is promised to help save money and time in the long-term by allowing the project team to make data-informed decisions”.

Several articles were published regarding the necessity to fit in more than 100 additional MPs without compromising its architectural heritage. “There are 3 options for renovating the chamber. Two would keep it in its existing space but use different furniture and configurations; one would require expanding the room inside the historic building.” Rob Wright, Assistant Deputy Minister at Public Services and Procurement Canada, said “the current chamber could hold about 420 MPs, but would likely mean the heritage wooden desks that seat MPs in pairs would have to be done away with in exchange for smaller seats, and maybe no desks at all. British MPs sit on long benches with no desks.” The articles also note that a second debating chamber is also an option.

On March 7, 2020, CBC reported that MPs are being asked to make important choices about the future of Centre Block without having all of the information needed to make proper decisions. "One thing that is clearly lacking … is the mention of costs," Conservative MP Blake Richards told PSPC Minister Anand, at the February 27 Standing Committee on Procedure and House Affairs (PROC) meeting.

100 Wellington

Media coverage relating to 100 Wellington has been moderate and factual, with most articles highlighting the uncertainty of the building’s future. In January 2020, The Hill Times reported on the short-term renovations that were done to the building and noted that while the work was concluded in June 2019, the building “though not yet open-and with no opening date yet known.” The article adds that a long-term use for the Indigenous People’s space is yet to be determined. It also reports that the holdup is due to an ongoing disagreement between stakeholders in deciding the building’s future, specifically on the vision of the Indigenous People’s space initiative.

In February 2020, CBC reported that a group of Métis citizens from Western Canada was left waiting in the cold as they sought approval from federal bureaucrats to enter the building. David Chartrand, vice-president of the Métis National Council is quoted as saying "If it's our building, why don't we have keys?"

Block 2 project

Media coverage on block 2 was moderate, factual for the most part, and mainly positive except for a certain emphasis on the possibility of some buildings having to be torn down. In January 2020, iPolitics reported that PSPC “launched a plan to raze old buildings across Ottawa's Wellington St. directly in front of the Peace Tower to create yet more new spaces for MP offices and parliamentary committee rooms”. CBC reported that there is no estimated cost or schedule for the project, only noting that it “marks the latest step in a series of expansive renovation and rehabilitation projects costing billions of dollars that aim to modernize Ottawa's aging parliamentary precinct”. The iPolitics article mentioned that several MPs contacted were not aware of this plan, “Block 2?” said Pembroke Conservative MP Cheryl Gallant, "I don't even know what a block 2 is". On the positive front, several outlets reported on the architectural design competition for block 2. Kathleen Kurtin, president of the Ontario Association of Architects, is quoted by CBC as saying "This is a landmark location that deserves a special solution, which a design competition is sure to tease out".

Canada Day on the Hill

There has been recent coverage that, for the first time in over 40 years, Canada Day celebrations will not be held on the lawn in front of Center Block. Radio-Canada reported that « La possibilité de devoir déplacer le lieu principal de la fête du Canada est dans l'air depuis que les travaux de réhabilitation ont été annoncés il y a quelques années. Mais c'est la première fois que Patrimoine canadien décide de ne pas mettre le parlement au cœur des festivités ».

Committee overview and member biographies

In this section

Mandate of the committee

The mandate of the Standing Committee on Government Operations and Estimates focuses on the estimates process as well as on the effectiveness and proper functioning of government operations.

Pursuant to standing order 108(3)(c), the committee’s mandate includes primarily the study of:

The committee is mandated to examine and conduct studies related to the following organizations:

Key committee activity: 43rd Parliament, 1st session

The committee held its first meeting of the 43rd Parliament on February 20, 2020 to elect a chair and vice-chairs. Pursuant to standing order 106(2): The Standing Committee on Government Government Operations and Estimates (OGGO) chair must be a member of the official opposition; the first vice-chair must be a member of the government party; and the second vice-chair must be a member of an opposition party other than the official opposition.

Conservative Party member of Parliament (MP) Tom Lukiwski was elected chair, retaining the position he held in the 42nd Parliament. Liberal MP Francis Drouin and Bloc Québécois MP Julie Vignola were elected vice-chairs by secret ballot.

February 25, 2020, officials from Treasury Board of Canada Secretariat Expenditure Management Sector provided an in camera briefing on the estimates process.

Following the tabling of the Supplementary Estimates (B) on February 18, 2020, the president of the Treasury Board appeared before the committee on February 27 to speak to them. In his opening remarks, the president highlighted some important areas of funding in the Supplementary Estimates (B), including advancing reconciliation, supporting the Canadian Armed Forces and working across departments to fight climate change. He highlighted that the government will help municipalities and provincial governments, universities and small and medium enterprises implement carbon reduction and energy efficiency strategies. After the opening statement, the committee went straight into questions with the majority revolving around vote 10. footnote1 There were no questions relevant to Public Services and Procurement Canada (PSPC).

Key committee activity: 42nd Parliament, 1st session

Committee members’ typically focus on issues relating to the estimates process as well as on the effectiveness and proper functioning of government operations. In the last Parliament, the committee undertook a number of studies related to the portfolio of PSPC and reported their findings back to the House.

Greening Government Strategy

Pursuant to standing order 108(2) and the motion adopted by the committee on Thursday, September 20, 2018, the committee completed its study of the Greening Government Strategy. On 2 occasions, the committee welcomed officials from PSPC.

Committee report: June 17, 2019

Title: An Even Greener Government: Improving the Greening Government Strategy to Maximize its Impact

The following recommendations from the committee’s report relate to the portfolio of PSPC:

Future committee appearances on the Greening Government Strategy could provide an opportunity to discuss the following mandate letter priorities:

Procurement Strategy for Aboriginal Business

Pursuant to standing order 108(2) and the motion adopted by the committee on Tuesday, October 24, 2017, the committee completed a study of the Procurement Strategy for Aboriginal Business. On 4 occasions, the committee welcomed witnesses from PSPC.

Small and medium enterprises in federal procurement

Pursuant to standing order 108(2) and the motion adopted by the committee on Tuesday, October 24, 2017, the committee completed its study of small and medium enterprises (SME) in federal procurement. On 3 occasions, the committee welcomed witnesses from PSPC.

Committee report: June 20, 2018

Title: Modernizing Federal Procurement for Small and Medium Enterprises, Women-Owned and Indigenous Businesses to the House of Commons.

The following recommendations from the committee’s report of June 20, 2018, relate to the portfolio of PSPC:

Future committee appearances on the Procurement Strategy for Aboriginal Business could provide an opportunity to discuss the following mandate letter priorities:

Main Estimates 2019 to 2020

On 2 occasions, the committee welcomed witnesses from PSPC:

Committee members biographies

Committee members from the Liberal Party of Canada

Francis Drouin (Vice-Chair): Liberal member of parliament for Glengarry—Prescott—Russell
Francis Drouin
Interest in Public Services and Procurement Canada portfolio

Mr. Drouin primary focused on the interests of his constituency, including Phoenix as a member of parliament in the NCR. Mr. Drouin also maintains an interest in interprovincial crossings and traffic.

Other interests and interventions

The member has risen most often in the House of Commons regarding rural economy, supply management and internet access.

Majid Jowhari: Liberal member of parliament for Richmond Hill
Majid Jowhari
Interest in Public Services and Procurement Canada portfolio

As Mr. Jowhari has been a member of the Standing Committee on Government Operations and Estimates since 2017, he will be familiar with the mandate of PSPC.

Other interests and interventions

Mr. Jowhari introduced a private Member’s bill in the 42nd Parliament to amend the Criminal Code to require that a presentence report contain information on any aspect of the offender’s mental condition that is relevant for sentencing purposes. The bill was adopted by the House of Commons but died on the Order Paper at 1st reading in the Senate with the dissolution of Parliament.

Irek Kusmierczyk: Liberal member of parliament for Windsor—Tecumseh
Irek Kusmierczyk
Interest in Public Services and Procurement Canada portfolio

Considering the members’ previous work, he may have an interest in green procurement and greening government.

Other interests and interventions

Mr. Kusmierczyk has risen most often in the House of Commons regarding trade agreements.

Steven MacKinnon: Liberal member of parliament for Gatineau
Steven MacKinnon
Interest in Public Services and Procurement Canada portfolio

Mr. MacKinnon is interested in the Phoenix pay system, prompt payment and interprovincial crossing.

Other interests and interventions

The member appeared in front of the Official Language Committee concerning the role of the department with the implementation of the Official Language Act.

Patrick Weiler: Liberal member of parliament for West Vancouver-Sunshine Coast- Sea to Sky Country
Patrick Weiler
Interest in Public Services and Procurement Canada portfolio

As an environmental and natural resource management lawyer, Mr. Weiler may have a particular interest in greening government initiatives.

Other interests and interventions

The member has risen in the House of Commons most often regarding affordable housing, climate change and global warming.

Committee members from the Conservative Party of Canada

Ziad Aboultaif: Conservative member of parliament for Edmonton Manning
Ziad Aboultaif
Interest in Public Services and Procurement Canada portfolio

As the critic for digital government, Mr. Aboultaif is likely to have a particular interest in the Phoenix pay system backlog and the next generation pay system.

Other interests and interventions

During the 42nd Parliament, the member was active in the House of Commons most often regarding the Canada Pension Plan and international trade.

Kelly Block: Member of parliament for Carlton Trail-Eagle Creek
Kelly Block
Interest in Public Services and Procurement Canada portfolio

During Question Period she has raised questions regarding the increase in cost to Canada Post’s postage stamps, and procurement modernization. As Critic of PSPC she will have a particular interest in PSPC’s portfolio.

Other interests and interventions

During the 42nd Parliament Ms. Block rose most often regarding Bill C-49, an act to amend the Canada Transportation Act and other acts and the oil and gas industry.

Tom Lukiwski (Chair): Conservative member of parliament for Moose Jaw — Lake Centre —Lanigan
Tom Lukiwski
Interest in Public Services and Procurement Canada portfolio

As the current and former Chair of the Standing Committee on Government Operations and Estimates, Mr. Lukiwski will be familiar with the mandate of PSPC.

Other interests and interventions

The member has not risen in the current parliamentary session.

Kelly McCauley: Conservative member of parliament for Edmonton West
Kelly McCauley
Interest in Public Services and Procurement Canada portfolio

As a current and former critic for PSPC, Mr. McCauley is familiar with the mandate of PSPC. He has shown a particular interest in the integrity regime and defence procurement.

Other interests and interventions

The member introduced a Private Members Bill in the 42nd Parliament in order to amend the Income Tax Act to remove the requirement to withdraw minimum amounts from a registered retirement income fund. It also makes a related amendment to another act. The bill was defeated, as of December 13, 2016.

Committee members from the Bloc Québécois

Julie Vignola (Vice-Chair): Bloc Québécois member of parliament for Beauport—Limoilou
Julie Vignola
Interest in Public Services and Procurement Canada portfolio

As the critic for the Bloc Québécois, Ms. Vignola will continue to be active on PSPC’s file. In an interview prior to the election, Ms. Vignola commented on the need for green renovations and the ability to offer affordable housing and quality accommodations for elderly who are losing cognitive and physical autonomy

Other interests and interventions

To date, the member has risen most often in the House of Commons with respect to the transfer of civilian members of the RCMP to the Phoenix pay system.

Committee members from the New Democratic Party

Matthew Green: New Democratic Party member of parliament for Hamilton Centre
Matthew Green
Interest in Public Services and Procurement Canada portfolio

As a city councillor, Mr. Green had an interest in affordable housing for Hamilton. He may be interested in PSPC’s support for the federal lands initiative. He has risen in the House regarding climate change and global warming and green economy. Therefore he may be interested in green procurement strategies and PSPC’s contribution to climate change.

Other interests and interventions

The member has risen in the House of Commons most often regarding climate change, Indigenous Peoples, racial equality and the public service.

General parliamentary scan

In this section

Government bills

At this time, the Government Bills currently before Parliament do not have any direct link to the mandate of Public Services and Procurement Canada (PSPC). However, it is expected that Bill C-4, An Act to implement the Agreement between Canada, the United States of America and the United Mexican States will take up significant house time in the coming weeks.

Private members bills

Senate public bills

Scan-203, An act to amend the National Capital Act (buildings or works of national significance): Introduced on December 10, 2019 by Senator Joyal, Privy Councillor (PC)—Adjourned in the name of Senator Bovey at 2nd reading. The bill would give power to the National Capital Commission to adopt regulations and determine within a radius around Parliament Hill or around a national historic site the limits or the condition through which the permit would be granted.

S-206, An act to amend the Department of Public Works and Government Services Act (use of wood): Introduced on December 11, 2019 by Senator Griffin—Awaiting 2nd reading. This legislation asks the federal government to give preference to the use of wood when constructing buildings. From a PSPC, this would involve amending procurement processes in order to give preference to projects that promote the use of wood.

Note

This is the fifth iteration of this particular Bill. The last iteration, Bill C-354 was introduced in the last parliament in the House of Commons, and was ultimately passed by the House and referred to the Senate in May of 2018. It received 2 days of 2nd reading debate in the Senate before dying on the order paper with the dissolution of Parliament for the 43rd federal election.

House of Commons committees

Government Operations and Estimates Committee

Following the tabling of the Main Estimates 2020 to 2021, the Supplementary Estimates (B) 2019 to 2020 and the departmental plans, it is anticipated that PSPC could receive invitations to appear before committee as early as March 9, 2020 (to be confirmed).

In the previous parliament, the Standing Committee on Government Government Operations and Estimates (OGGO) presented a study entitled An Even Greener Government: Improving the Greening Government Strategy to maximize its Impact.

Note

Returning members on this committee include, Liberal Party of Canada (LPC) member, Francis Drouin, Conservative Party of Canada (CPC) members Tom Lukiwski (former chair), and Kelly McCauley (former critic and current associate critic).

Other members of note include Kelly Block, a conservative member of parliament (MP) since 2008 and the newly appointed critic for PSPC; Matthew Green, a newly elected New Democratic Party (NDP) MP who is the NDP critic for PSPC; and Julie Vignola, a newly elected Bloc Québécois (Bloc QC) MP and critic for PSPC.

Membership for the Government Operations and Estimates Committee

LPC: Francis Drouin, Majid Jowhari, Irek Kusmierczyk, Steven MacKinnon (Parliamentary Secretary),

Patrick Weiler

CPC: Ziad Aboultaif, Kelly Block (PSPC critic), Tom Lukiwski, Kelly McCauley (PSPC associate critic)

NDP: Matthew Green (PSPC critic)

Bloc QC: Julie Vignola (PSPC critic)

On March 12, 2020, Minister Anand will appear before the committee to answer questions on the department’s planned expenditures set out in the Supplementary Estimates “B”, 2019 to 2020.

Public Accounts Committee

In June, the Public Accounts Committee (PACP) presented a report entitled Report 5, Equipping Officers of the Royal Canadian Mounted Police, of the 2019 spring reports of the Auditor General of Canada. The committee requested a government response to this report. The report made mention of the Royal Canadian Mounted Police (RCMP) and PSPC not adhering to procurement rules. As no government response was provided prior to the dissolution of parliament, it is possible this report could be readopted in committee. If so, a government response would be led by the RCMP.

Membership for the Public Accounts Committee

LPC: Kody Blois, Greg Fergus, Parliamentary Secretary to the President of the Treasury Board and Minister of Digital Government, Lloyd Longfield, Francesco Sorbara, Jean Yip

CPC: Dean Allison, Pat Kelly, Warren Steinley, Tim Uppal

NDP: Matthew Green—Critic for PSPC

Bloc QC: Maxime Blanchette-Joncas

Procedure and House Affairs Committee

Membership for the Procedure and House Affairs Committee

LPC: Ruby Sahota (chair), Omar Alghabra, Hon. Kirsty Duncan, Mark Gerretsen, Honourable (Hon.) Ginette Petitpas Taylor, Ryan Turnbull

CPC: Blake Richards, John Brassard, Eric Duncan, Corey Tochor

NDP: Rachel Blaney

Bloc QC: Alain Therrien

On February 6, 2020, the Procedure and House Affairs Committee (PROC) adopted the following motion:

“That the Procedure and House Affairs Committee invite officials from the Department of Public Works and Government Services and the House of Commons for briefings on Centre Block Rehabilitation Project and the block 2 redevelopment as part of the Long Term Vision and Plan for the Parliamentary Precinct, and that the Minister of Public Works and Government Services be invited to appear, for between 1 to 2 hours, at a subsequent meeting.”

Following this motion, the committee invited PSPC officials, along with witnesses from the House of Commons administration and the Library of Parliament to appear before the committee on February 18, 2020. Witnesses took the committee through a presentation on the status of the Centre Block Rehabilitation Project and block 2 redevelopment. Officials have been invited back to appear on February 25 to answer committee questions on the presentation.

On February 20, 2020, PSPC officials accompanied by representatives from the House of Commons administration and the Library of Parliament gave committee members a tour of the work being done on Centre Block as part of the Long Term Vision and Plan.

On February 25, 2020, PSPC officials accompanied by representatives from the House of Commons administration and the Library of Parliament returned to committee to answer questions following their presentation on February 18, 2020. Members’ questions primarily focussed on the governance and oversight of the project, as well as cost control measures.

On February 27, 2020, Minister Anand appeared before the committee and answered questions from members on the Centre Block Rehabilitation Project and block 2 redevelopment.

Official Languages Committee

In June, the Official Languages Committee (LANG) presented a report entitled Respect for Language Rights in Ontario: An Issue for all of Canada. The fourth recommendation in the report called on the minister of Public Services and Procurement to mandate the Canada Lands Company to work with the Board of Governors of the Université de l’Ontario français to find appropriate land and facilities for the university.

As no government response was provided prior to the dissolution of parliament, it is possible this report could be readopted in committee and request a government response.

Membership for the Official Languages Committee

LPC: René Arseneault, Emmanuel Dubourg, Terry Duguid, Marie-France Lalonde,

Patricia Lattanzio

CPC: Hon. Michael Chong, Chris d’Entremont, Bernard Généreux,

Joël Godin

NDP: Charlie Angus

Bloc QC: Mario Beaulieu

National Defence Committee

Membership for the National Defence Committee

LPC: William Amos, Hon. Larry Bagnell, Yvan Baker, Karen McCrimmon, Sven Spengemann, Anita Vandenbeld

CPC: James Bezan, Terry Dowdall, Cheryl Gallant, Richard Martel

NDP: Randall Garrison

Bloc QC: Michel Boudrias

Senate standing committees

Official Languages Committee

The Official Languages Committee (OLLO) presented a report in June entitled Modernizing the Official Languages Act. The committee’s fifth recommendation calls for the Official Languages Act to be amended to obligate federal institutions to “assess the impact of their decisions on official language minority communities and to ensure that the policies and programs they implement are aligned with their needs.” This includes the disposal of federal real property.

While the committee did not request a government response, it is likely they will maintain an interest in these recommendations.

Energy, the environment and natural resources

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National finance

Once the main estimates, supplementary estimates and departmental plans are presented in the House, they will soon thereafter be referred to the Senate Standing Committee on National Finance (NFFN). It is possible that PSPC will receive an invitation to appear before the committee on these documents.

The committee completed a first interim report on defence procurement in June of 2019. It is expected that they will continue this work in this Parliament.

Question period

In the 42nd Parliament, members focused on the following PSPC related items:

In the 43rd Parliament, the following items are expected to receive attention:

In addition to the above items, the following portfolio issues could also receive attention:

43rd Parliament question period: Questions and answers

Phoenix pay system: Questions and answers

Thursday, January 30 2020

Ms. Julie Vignola (Beauport—Limoilou, BQ): Madam Speaker, the government wants 3,900 civilian members of the RCMP to use Phoenix. They are being told that there are no more problems with Phoenix. However, the minister of Public Services and Procurement said the opposite, and I quote: “Our government knows that employees and their families continue to experience stress and inconvenience due to pay issues.”

Why is the government imposing Phoenix on 3,900 civilian members of the RCMP without their consent, knowing that it is a source of stress and inconvenience?

Honourable (Hon.) Anita Anand (Minister of Public Services and Procurement): Madam Speaker, Canada's public servants deserve to be paid accurately and on time for their important work. We have made progress stabilizing the pay system. Over the past 2 years, we have reduced the number of pending transactions by 39%. Over the same period of time, the backlog of transactions with financial implications has decreased by 43%.

We will continue working closely with the RCMP management to ensure a smooth transition. We continue to work with all departments and agencies to improve the timeliness and accuracy of human resources (HR) data entries into the pay system.

Ms. Julie Vignola (Beauport—Limoilou, BQ): Madam Speaker, I have statistics too. Last year, 74% of employees had problems when they transferred to a different job. If that is an improvement, then I am happy I was not there when the system was first implemented.

The Phoenix system has been broken since day one. The Prime Minister asked 2 members of his cabinet to do away with this system once and for all. Yesterday, the minister of Digital Government stated, and I quote: “We are working…to find a modern, reliable system.” In other words, Phoenix is not a modern and reliable system and never has been.

I would like to reiterate my question. Why add 3,900 more employees to this system—

Hon. Anita Anand (Minister of Public Services and Procurement): Madam Speaker, we have taken significant steps to stabilize the Phoenix pay system, and we continue to move forward together with all stakeholders, including unions and employees. Our government remains determined to help employees and resolve problems as quickly as possible.

Thursday, January 30 2020

Ms. Julie Vignola (Beauport—Limoilou, BQ): Mr. Speaker, 3,900 civilian members of the RCMP are worried about what will happen when their pay moves to the Phoenix system, or should I say, the Phoenix nightmare. Last year alone, Phoenix caused problems for 74% of staff. The worst part is that employees are being threatened. They are being told that if they do not want to move to Phoenix, they have until tomorrow to take retirement without getting in trouble.

First, will the government stop threatening people and postpone the February 1 deadline? Second, will it stop loading more people onto the Titanic that is Phoenix?

Hon. Anita Anand (Minister of Public Services and Procurement): Mr. Speaker, Canada's public service employees deserve to be paid accurately and on time for the important work they do. We have made tremendous progress towards stabilizing the pay system. Our government knows that employees and their families continue to experience stress and inconvenience due to pay issues. In the meantime, we are still offering employees flexible repayment options, in order to minimize the financial hardships and repercussions.

Ms. Julie Vignola (Beauport—Limoilou, BQ): Mr. Speaker, the minister's mandate letter calls on her to replace Phoenix with a new pay system, because there is no hope it can be fixed. What a colossal disaster.

This is the perfect example of how this federal government operates. The left hand is trying to destroy Phoenix now, while the right hand is trying to bring even more people into this nightmare. What genius came up with this? Will the government make sure that 3,900 civilian RCMP employees do not get caught up in the Phoenix nightmare?

Hon. Joyce Murray (Minister of Digital Government): Mr. Speaker, our public servants deserve to be paid properly and on time. The conservatives botched the Phoenix pay system, causing thousands of hard-working public servants to suffer. We are working with public servants, experts, unions and service providers to find a modern, reliable system. Our public servants deserve nothing less.

Shipbuilding contracts: Questions and answers

Thursday, January 30 2020

Geoff Regan (Halifax West, LPC): Mr. Speaker, the minister of Public Services and Procurement recently visited a very important initiative for Nova Scotia, for my constituents and for our navy and Coast Guard. She saw Canada's burgeoning shipbuilding industry up close. The economic impact, which can be felt across the region, includes enhanced skills training and spinoff jobs.

Will the minister inform the House of the importance of the middle-class jobs being generated and the exceptional craftsmanship of the new vessels being produced at the Irving shipyard in Halifax?

Hon. Anita Anand (Minister of Public Services and Procurement): Mr. Speaker, I saw first-hand many Canadians hard at work building Canada's next generation of vessels. This work is contributing over $1 billion annually to Canada's gross domestic product (GDP) and creating or maintaining over 11,000 jobs per year.

I can assure Canadians that they can take pride in these new vessels and in the workers who are equipping the navy and the Coast Guard with the ships they need to serve all Canadians.

Procurement systems: Questions and answers

Wednesday, February 5 2020

Kelly Block (Carlton Trail—Eagle Creek, CPC): Mr. Speaker, in a memo to the Prime Minister, officials warned that aging government technology systems are at risk of failing. These systems, which provide employment insurance (EI) benefits, old age security and child support, are critical to many Canadians and are at further risk due to upgrades being delayed because of procurement problems.

Will the Prime Minister correct an omission in the minister's mandate letter and instruct her to make the maintenance and replacement of these systems a priority?

Right Honourable (Rt. Hon.) Prime Minister: Mr. Speaker, as a government, we have been able to invest in new ways of helping Canadians, from the Canada child benefit, which gives hundreds of dollars more every month to 9 out of 10 Canadian families, to the increase in the guaranteed income supplement for our most vulnerable single seniors. We recognize that our positive changes to EI have made a real difference in the lives of people as well.

We will continue to ensure that the infrastructure that allows us to deliver these programs to Canadians remains solid and upgraded.

Thursday, February 6 2020

James Bezan (Selkirk—Interlake—Eastman, CPC): Mr. Speaker, a defence contractor doing business with Canada was recently a victim of a ransomware cyber-attack, exposing the Government of Canada and its sensitive operational and commercial information. Defence procurement contains highly classified military requirements and capabilities, yet the Department of Public Services and Procurement Canada simply said that it was going to do better.

When classified material falls into the hands of hackers, one does not get a do-over. How can Canadians trust the procurement minister and these liberals with the protection of Canada's highly classified defence and security information?

Hon. Harjit Sajjan (Minister of National Defence): Mr. Speaker, as the member opposite knows, we take our security extremely seriously. When it comes to our procurement, we take the utmost care in making sure we look at cyber-protection and we go through the proper requirements. The Communications Security Establishment is the agency that looks after this, and we have the right people to do this work to make sure we have the right safeguards for all our procurement.

Integrity regime: Questions and answers

Thursday, February 6 2020

James Cumming (Edmonton Centre, CPC): Mr. Speaker, a new report shows that under the current liberal government, Canada has dropped to its lowest level in at least a decade in a global index of corruption. This must be part of what the Prime Minister means when he claims that Canada is back.

Can the Minister of Public Services and Procurement tell Canadians how many companies are listed as suppliers with administrative agreements under the federal government's integrity regime, and which ones are they?

Hon. Anita Anand (Minister of Public Services and Procurement): Mr. Speaker, our government is modernizing procurement practices so they are simpler, require less paperwork and support members of our communities who have been historically left out. We are taking action by implementing a simplified contract model to remove barriers to participation and by improving existing procurement tools, and we will continue to work with the members opposite to further this initiative.

Procurement delays: Questions and answers

Thursday, February 6 2020

Kelly McCauley (Edmonton West, CPC): Mr. Speaker, sometimes the government gets a taste of its own medicine when dealing with government red tape. From papers tabled by the current government, we have learned that completion of a simple project to build needed jetties at Canadian Forces Base (CFB) Esquimalt has been delayed for 4 years because of new government regulations.

Can the minister of Public Services and Procurement tell this House what measures are being taken to deal with these regulations imposed by Fisheries and Oceans that are delaying yet another government project?

Hon. Anita Anand (Minister of Public Services and Procurement): Mr. Speaker, our government is creating economic benefits and good middle-class jobs for Canadians from coast to coast to coast. Our record includes a fully costed defence policy, launch of future fighter jet procurement for 88 modern fighters and delivery of the first interim jets. 90% of our procurements are delivered within their planned scope and budget—Mr. Speaker, from boots to ships, we will continue to ensure Canada's military is well equipped.

Bed bugs: Questions and answers

Thursday, February 6 2020

Jacques Gourde (Lévis—Lotbinière, CPC): Mr. Speaker, from October 11 to 14, 2019, the public servants who work at 70 Crémazie Street in Gatineau were gobsmacked to learn they would have to work from home while the entire building was treated for bedbugs. This operation cost Canadian taxpayers more than $300,000.

Can the minister of Public Services and Procurement assure the House that protocols have been followed to prevent further infestations, for the sake of our public servants and Canadian taxpayers?

Hon. Anita Anand (Minister of Public Services and Procurement): Mr. Speaker, the government takes the well-being of its employees very seriously.

Public Services and Procurement Canada continues to work closely with the building owners and federal departments to prevent any future pest-related incidents.

Canada Post: Questions and answers

Thursday, February 6, 2020

Kelly Block (Carlton Trail—Eagle Creek, CPC): Mr. Speaker, it is clear that the liberal government does not understand basic economics. When a company raises its prices, consumers look to other suppliers. This is the case for Canada Post, which just raised the price of stamps.

With volumes declining and costs to Canadians and Canada's small and medium-sized businesses increasing, what is the minister's plan for Canada Post to attain financial sustainability?

Hon. Anita Anand (Minister of Public Services and Procurement): Mr. Speaker, our government has introduced a new vision for Canada Post that puts service front and centre and fulfils our platform commitment.

Part of that vision includes reinvesting in Canada Post's services and innovations. A renewed Canada Post will provide high-quality service at a reasonable price to Canadians, no matter where they live. We look forward to working with the members opposite to resolve any further issues.

High profile Public Services and Procurement Canada order paper questions recently tabled in the House of Commons (as of February 6 2020)

Question 001—Late delivery of Arctic and offshore patrol ships

James Bezan, CPC, member of the National Defence Committee (NDDN)

Tabled on January 27, 2020

The new anticipated delivery date for the first Arctic and offshore patrol ship by Irving Shipbuilding Inc. is early 2020. The adjustments to the schedule result from challenges associated with new production processes within a new facility on a first-of-class vessel. Although there are no late delivery fees or discounts, the shipyard is financially incentivized to deliver on schedule and on budget

Question 0063—Phoenix pay system

Kerry Diotte, CPC, member of the Foreign Affairs and International Development Committee (FAAE)

Tabled on January 27, 2020

The current median value of total overpayment balances is $1,383, and this is being disclosed for the first time. The highest overpayment value was not disclosed to avoid the potential identification of an employee.

Media coverage: CTV News wrote a story based on this OPQ commenting that there are approximately 98,000 civil servants that may still owe the federal government money as a result of Phoenix overpayments.

Question 0070—Notifying companies about media request

Dan Albas, CPC, member of The Human Resources, Skills and Social Development and the Status of Persons with Disabilities Committee (HUMA) and the Canada-China Relations Committee (CACN)

Tabled on January 27, 2020

The department’s standard media process does not include contacting nor sharing media requests with companies. PSPC is committed providing Canadians, including media, with timely, factual information about our work, and in doing so, PSPC may, from time to time verify information with companies when working on enquiries involving work contracted them. When doing so, PSPC is careful to protect the privacy of journalists.

Question 0078—Cost Creation Defence Department Procurement

Tim Uppal, CPC, member of PACP

Tabled on January 27, 2020

The minister of PSPC has been mandated to lead, with the support of Department of National Defence, Department of Fisheries and Oceans and the Canadian Coast Guard in bringing forward analyses and options for the creation of Defence Procurement Canada. As this analysis has not been completed, there are no preliminary costs that can be determined at this time.

Question 0086—Renovation, redesign and refurnishing of ministers’ or deputy ministers’

Chris Lewis, CPC, member of the International Trade Committee (CIIT)

Tabled on January 27, 2020

The amounts reported were specifically for renovation, redesign and refurnishing. The work done in the PSPC Minister’s Office was consistent with a PSPC led initiative to refurbish ministers’ offices across government. Real Property Services (RPS), conducted an inventory to identify Ministers’ offices which were in need of refurbishment. The amount to refurbish the Minister of PSPC’s office was $39,779. 96 and the Deputy Minister’s office was $37,147.30.

Question 0092—Bed bugs

Kelly Block, CPC, member of OGGO, Critic for PSPC

Tabled on January 27, 2020

All but one detection were in the “very low” range which is defined as less than 20 insects (in most cases 1 to 5 bugs). Only one building had a detection of “moderate” which is defined as between 100 to 1000 bugs (the estimated number was approximately 150 bugs). PSPC is not in a position to report on costs that were incurred by other departments and agencies. PSPC has invested approximately $400,000 in bedbug detection, remediation, and monitoring. More actions were taken but the costs were covered by the clients.

Question 0093—Buildings owned by the government occupancy capacity

Kelly Block, CPC, member of OGGO, Critic for PSPC

Tabled on January 27, 2020

PSPC has 1,524 general purpose office building locations under its administrative control that provide space to over 99 client departments and agencies. Of these 350 are crown-owned under the custodianship of the minister of PSPC, and 1,174 are leased, representing a combined 7 million m2 of space.

The information requested is not readily available for all of the buildings within PSPC’s portfolio, therefore a complete response to the question could not be provided within the allotted time.

Question 0094—Acquisition of buildings

Kelly Block, CPC, member of OGGO, Critic for PSPC

Tabled on January 27, 2020

This information is routine and available to the public through the public accounts website for the past fiscal year.

Question 0132—Construction on lawn of Parliament Hill

Scott Reid, CPC

Tabled on January 27, 2020

The front lawn will be reinstated following the restoration of the Centre Block. The timelines, scope, schedule and budget for construction are in development and will be available in 2020 once a detailed building condition assessment program and schematic design are complete.

Question 142—Cybersecurity penetration testing

Ziad Aboultaif, CPC, member of OGGO

Tabled on January 27, 2020

PSPC has responded that it awarded a contract to Infosys Public Services, Inc. (IPS) of $80.3 millions to deliver, enable, implement, support, and manage a bilingual Government of Canada wide software as a service e-procurement solution. Cybersecurity penetration testing is being performed to support the security assessment and authorization process set out in the $80.3 millions contract with IPS. Cybersecurity penetration testing activities are not separately priced in this agreement.

Question 0145—Canada Post domestic mail being open by US customs

John Williamson, CPC, member of CACN

Tabled on January 27, 2020

The response by Canada Post aligns with previous media responses. Canada Post is working with US customs to ensure timely, reliable and safe mail deliveries. Global Affairs Canada was tasked to answer part (c) regarding bilateral relations between Canada and the US.

Question 173—National Shipbuilding Strategy

Todd Doherty, CPC, member of the Transport, Infrastructure and Communities Committee (TRAN)

Tabled on January 27, 2020

The current total value of the contracts issued to Irving Shipbuilding Inc. for the Canadian Surface Combatant Project, including ancillary contracts and the definition contract is $521.8 million (including taxes). This was the first time this information was disclosed.

Question 209—National security exception for federal procurements

Tom Lukiwski, CPC, member of OGGO

Tabled on January 27, 2020

OGGO held a number of hearings with respect to the government's use of the exception in 2017. The assistant deputy minister (ADM) for the Acquisition Branch testified PSPC invokes on average 20 exceptions per year and 55 national security exceptions were invoked over the previous 3 fiscal years.

Acquisition Program is unable to leverage its automated contract information database to identify whether contracts are subject to a national security exception and so PSPC concluded it is not possible to respond in the time allotted.

Media coverage: Some media organizations, including the CBC and the Globe and Mail have covered and written about the government’s use of the exception.

In June 2019, the Globe and Mail reported that the government issued new regulations which would require the Canadian International Trade Tribunal to dismiss a complaint if a national security exception has been properly invoked. The Globe and Mail reported businesses are concerned that they will not be able to challenge contracts that may have been unfairly awarded and that the use of the exception will expand. In September 2019, Canadian Press reported on a complaint by an Ontario shipyard that the government was using the national security exception to stack the deck in favour of Davie shipyard.

Question 0219—Government-owned properties on Sparks Street

Pierre Poilievre, CPC, member of the Finance Committee (FINA)

Tabled on January 27, 2020

The amount of retail units that were available for fiscal sear 2016 to 2017 was 64, 2017 to 2018 was 58 and 2018 to 2019 was 56.

PSPC changed its system of record in 2016 and concluded it could not produce and validate the data for fiscal years 2014 to 2015 and 2015 to 2016 in the time allotted.

PSPC could not include the cost to lease because this information is confidential and could cause prejudice to actual rent information contained in tenant lease agreements is confidential.

Question 0227—Replacement of Canada’s polar icebreakers

Michael Cooper, CPC, member of FINA

Tabled on January 27, 2020

The minister was regularly briefed on a wide variety of defence procurement items in this period including Canada’s polar class icebreakers.

A search was performed through the ministerial correspondence database and internal records held by the Nation Shipbuilding Strategy Program Management Office, no records were found.

Question 0228—Government’s plan build 16 multipurpose vessels Canada Coast Guard

Michael Cooper, CPC, member of FINA

Tabled on January 27, 2020

The minister was regularly briefed on a wide variety of defence and marine procurement items in this period including the government’s plans to build 16 multi-purpose vessels of the Canada Coast Guard (CCG). The multi-purpose vessels of the CCG were part of considerations and decisions about the National Shipbuilding Strategy in 2019. However, PSPC did not have any reports or briefing notes prepared for or circulated by the National Shipbuilding Strategy Program Management Office, formerly the National Shipbuilding Strategy Secretariat, specifically related to these vessels in 2018 and 2019.

Question 0229—Royal Canadian Navy

Michael Cooper, CPC, member of FINA

Tabled on January 27, 2020

The responses provided are based on the contracts put in place with Vancouver Shipyard and ThyssenKrupp to complete the design of the joint support ships. The contract amounts awarded to Vancouver Shipyards Co. Ltd. in 2016 were $332,012,898.00 and $94,400,000.00 and ThyssenKrupp Marine Systems Canada in 2012 was $67,800,000.00.

Question 0230—Arctic off-shore patrol ships

Lianne Rood, CPC, member of the Agriculture and Agri-Food Committee (AGRI)

Tabled on January 27, 2020

The proposed response provides only the contract reference numbers, award dates and scope descriptions. Commercially confidential information has not been provided as is consistent with previous responses. The total amount awarded to Irving Shipbuilding Inc. in 2019 was $76,847,208.55.

Question 0231—Government’s profit policy as related to shipbuilding

Lianne Rood, CPC, member of AGRI

Tabled on January 27, 2020

The Government of Canada has developed a formal risk management plan for the National Shipbuilding Strategy (NSS). The plan is informed by international best practices, and helps to predict, identify and manage the key risks facing the NSS. Procurement risk factors are assessed on a continuous basis and steps are taken to support the effective administration of the contracts. Contracts issued to Irving Shipbuilding Inc. (ISI) are negotiated to arrive at a fair and reasonable cost for the work—including the profit paid for performing the work. Profit ranges under the multi ship contract (for work on the Halifax-class frigates from 2008 to 2021), the Arctic and Offshore Patrol Ship (AOPS) contracts and the Canadian surface combatant (CSC) contracts are within the overall range of the Policy on Cost and Profit as per the PSPC supply manual. Information on the profit policy is available online on the Buy and Sell website. No third party reviews of Canada’s profit policy related to the AOPS or CSC projects have been conducted. Contracts issued to ISI were negotiated to arrive at a fair and reasonable cost for the work—including the profit paid for performing the work. The negotiated profit is within the framework of the PSPC Policy on Cost and Profit. Details of briefing material for the AOPS and CSC projects on negotiated profit rates cannot be disclosed as they contain confidential commercial information of ISI.

Question 0232—Canadian surface combatant fleet

Lianne Rood, CPC, member of AGRI

Tabled on January 27, 2020

Canada's defence policy: Strong, Secure, Engaged, announced that the Government of Canada will replace the surface fleet through investments in 15 Canadian surface combatants. The project is currently in the definition phase and this phase is focused on maturing the design of the Canadian surface combatant in preparation for construction during the project implementation phase, which is expected to start in the early-2020s.

Senior officials, including the minister, were regularly briefed on a wide variety of defence procurement items in this period including Canadian surface combatant project.

To ensure full transparency, an additional annex (Annex 4) was added to the response to account for briefing materials previously released through proactive disclosure and the Access to Information Act.

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