2020 to 2021 Main Estimates: Standing Committee on Government Operations and Estimates—June 16, 2020
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Second interim supply
2020 to 2021 Main Estimates: $2.1 billion for the second interim supply
The following table includes the interim and full supplies for 2020 to 2021.
| Fiscal year 2020 to 2021 | 2020 to 2021 Main Estimates | First interim supply: March 13, 2020 | Second interim supply: June 17, 2020 | Third interim supply: December 2020 | Full supply (12/12th of main estimates) | |||
|---|---|---|---|---|---|---|---|---|
| Budgetary | Amount | Amount | Allocation | Amount | Allocation | Amount | Allocation | Amount |
| Voted: 1 Operating expenditures | 2,316.1 | 772.0 | 4/12 | 1,351.0 | 7/12 | 193.0 | 1/12 | 2,316.1 |
| Voted: 5 Capital expenditures | 1,587.1 | 396.8 | 3/12 | 793.6 | 6/12 | 396.8 | 3/12 | 1,587.1 |
| Total voted | 3,903.2 | 396.8 | 396.8 | 2,144.6 | N/A | 589.8 | N/A | 3,903.2 |
| Total statutory | 145.1 | N/A | N/A | N/A | N/A | N/A | N/A | 145.1 |
| Total | 4,048.3 | 396.8 | N/A | 2,144.6 | N/A | 589.8 | N/A | 4,048.3 |
Summary
Public Services and Procurement Canada (PSPC) is seeking access to a second interim supply of $2.1 billion in 2020 to 2021. The second interim supply bill will provide the department with sufficient cash to sustain operations and cover financial obligations until the tabling of the full supply expected in December 2020.
Background
The estimates process falls under the democratic principle that no money can be spent without the approval of Parliament. This process, which includes the Main Estimates and the Supplementary Estimates, provides elected officials and Canadians with an overview of the government’s spending plans to deliver on its priorities and mandate.
The Main Estimates outline the proposed budget required for the department to deliver on its programs for the upcoming fiscal year. 2020 to 2021 Main Estimates were tabled on February 27, 2020, and excluded Budget 2020.
In the normal estimates process, the tabling of Main Estimates results in 2 supply periods (interim and full supply) that require approval through a vote. The interim supply bill is introduced in March to cover the financial requirements during the first 3 months of the new fiscal year (three twelfths) until the full supply (remaining nine twelfths) is approved in June.
Due to the impacts of the COVID-19 response on parliamentary business, the Parliament brought changes to the estimates process. For the current fiscal year, the Parliament will introduce a second interim supply to be voted by the Committee of the Whole on June 17, 2020. The second interim supply bill will provide the department with sufficient cash to sustain operations until the tabling of the full supply expected in December 2020.
2020 to 2021 first interim supply
The first interim supply for 2020 to 2021 was tabled on March 13, 2020. PSPC received $1.3 billion in funding for the first few months of 2020 to 2021 as follows:
- $772.0 million in vote 1 (4/12 for operating expenditures)
- $396.8 million in vote 5 (3/12 for capital expenditures)
- $145.1 million in statutory authorities (revolving funds and employment benefit plans)
2020 to 2021 second interim supply
The second interim supply for 2020 to 2021 will be voted on June 17, 2020. PSPC is expected to receive up to $2.1 billion as follows:
- $1.4 billion in vote 1 (a total of 11/12 for operating expenditures)
- $793.6 million in vote 5 (a total of 9/12 for capital expenditures)
2020 to 2021 Main Estimates placemat for minister
Main Estimates: Parliamentary reporting and estimates supply cycle
April
- Beginning of fiscal year
June
- Tabling of spring Supplementary Estimates (SE)
- Approval of Main Estimates, full supply
- Approval of spring SE supply bills
December
- Tabling of Public Accounts
- Tabling of fall SE
- Tabling of Departmental Results Report (DRR)
- Economic and fiscal update
- Approval of fall SE supply bill
March
- Tabling of last SE
- Tabling of 2020 to 2021 Main Estimates
- Tabling of 2020 to 2021 Departmental Plan
- Budget presentation
- Approval of last 2019 to 2020 SE supply bill
- Approval of interim supply of 2020 to 2021
Main Estimates: Estimates process
The government prepares the estimates to obtain authority from Parliament to spend public funds. It provides an overview of the government’s spending plans to deliver on its priorities and mandate.
The estimates are tabled in the House of Commons each year by the president of the Treasury Board. The estimates are then referred to standing committees for their review and report back to the House with their recommendations.
The Main Estimates:
- outlines the opening budget required for the department to deliver on its programs for the upcoming fiscal year (April 2020 to March 2021), typically, items from the final Supplementary Estimates of one year do not show up in the Main Estimates for the following fiscal year
- most common area of interest from committee revolves around understanding why the Main Estimates are different than the previous year, the table below outlines the major items at play
- are divided into departmental “votes” which summarize the financial requirements for an expenditure category: operating, capital, or grants and contributions
- funding for the Main Estimates is provided through 2 different supply bills:
- the interim supply bill authorizes the funding of federal organizations for the first 3 months of the fiscal year (voted in March and made available to departments on April 1)
- the full supply bill authorizes the balance of the funding presented in the Main Estimates (voted in June and made available to departments shortly after)
Main Estimates: Highlights
Public Services and Procurement Canada’s total funding sought in the Main Estimates for 2020 to 2021 is $4,048.3 million. This represents a $187.2 million decrease or 4% decrease over the previous year’s Main Estimates of $4,235.4 million. The major factors contributing to the change in funding levels include (but are not limited to) decreases and increases.
| Description | Total |
|---|---|
| Government of Canada pay system: Sunset of funding from budget 2019. |
(277.9) |
| Real property repairs and maintenance: Sunset of budget 2019 funding to maintain current office accommodation and related real property service levels to federal departments and agencies. |
(275.0) |
| Long Term Vision and Plan: The reduction follows the completion of 2 projects, West Block and the Senate of Canada Building. Future approvals received in relation to the continued priority of restoring and modernizing Canada’s Parliamentary Precinct, will be reflected accordingly. |
(137.7) |
| Total decreases | (690.6) |
| Description | Total |
|---|---|
| Predictable capital: To improve the management of PSPC’s portfolio of assets. |
216.8 |
| Federal sciences and technology infrastructure initiatives: To provide federal scientists with facilities and tools that enable collaboration and support the important work they carry out for Canadians. |
101.1 |
| Price and volume protection: Funding adjustment to account for price and volume fluctuations on expenses associated with the management of federal real property |
77.5 |
| Les Terrasses de la Chaudière: To modernize Les Terrasses de la Chaudière complex exterior envelope and address the health and safety concerns associated with the deteriorating exterior brick cladding. |
57.8 |
| West Memorial Building: For the rehabilitation of the West Memorial Building (implementation phase) in order to provide interim accommodation during the renovation of the Supreme Court of Canada Building. |
50.9 |
| Total increases | 501.1 |
| 2020 to 2021 Main Estimates net decrease as compared to the previous year’s Main Estimates | (187.2) |
Note: Numbers may not add up due to rounding.
Government of Canada pay system
Project summary
The Government of Canada is committed to supporting employees and resolving public service pay issues as quickly as possible. This is a top priority, as employees deserve to be paid accurately and on time.
Budget 2019 provided additional funding to ensure adequate resources to address pay and system issues and continue stabilizing the pay system. Multi-year funding was provided for some pay stabilization initiatives (for example, IBM and PeopleSoft 9.2 contracts).
The December 2019 mandate letter of the minister of Public Services and Procurement committed to “eliminate the backlog of outstanding pay issues for public servants as a result of the Phoenix pay system.” The desired expected results from this commitment include that:
- at the end of the mandate, the backlog of outstanding pay cases would be eliminated
- public servants (employees and retirees), and Canadians in general, would have increased trust and confidence in the Government of Canada to pay its employees accurately and in a timely manner
Mains over mains variance
The following table includes 2019 to 2020 and 2020 to 2021 year-over-year variance.
| Exercises | 2019 to 2020 | 2020 to 2021 | Year over year variance |
|---|---|---|---|
| Budget 2018 (Main Estimates) | 19 | 4 | (15) |
| Budget 2019 (budget implementation vote) | 351 | 88.8 | (263) |
| Total ME budgetary expenditurestable 4 note 1 | 371.0 | 93.1 | (277.9) |
Table 4 Notes
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A decrease in funding of $277.9 million is a result of sunset funding from budget 2019.
The Phoenix initiative was launched in spring 2016. As of 2019 to 2020, service delivery, systems capability, and change management initiatives are generally stable, although a backlog of pay cases persists. Budget 2019 funding (for 2019 to 2020) provided Public Services and Procurement Canada (PSPC) with the resources to continue actions to deliver biweekly pay for federal employees, reduce the backlog of outstanding transactions, enhance system stability and engage stakeholders in the move towards stabilizing HR-to-pay. For example, the Pay Centre overall cases waiting to be processed has declined by 42% from January 2018 to February 2020, new compensation staff were hired to process pay issues, a new automated approach to facilitate collective agreement implementation for 2018 retroactive payments was developed, and thousands of other system fixes and enhancements were implemented.
For 2020 to 2021 and beyond, PSPC continues the development of the “HR-to-pay 3 year forward plan for 2019 to 2020 to 2022 to 2023” to further meet commitments and eliminate the backlog. This plan focuses on 3 key areas:
- increasing productivity for processing cases
- supporting the reduced intake of new cases
- accelerating the delivery of systems enhancements and fixes
Dependent on the continuation of funding, key early milestones include:
- focusing existing capacity on backlog elimination (target date: February 2020), this leverages existing plans to devote capacity to backlog elimination by focusing on addressing transfers, pay increments, reduction of backlog by departments, and acting appointments cases
- redesigning the retroactive payments process (target date: September 2020), this will improve automated processing for retroactive payments for individuals, reducing intake into the pay system by roughly 50,000 cases per year ongoing
- completing collective agreement implementation for 2014 (target date: fall 2020), finishing the review and validation of these cases will free resources that can then be devoted to eliminating the backlog
Background
Since the launch of Phoenix 4 years ago, PSPC implemented a series of measures focused on stabilizing the pay system. These include increasing the compensation workforce, providing employees with greater support through our Client Contact Centre, introducing the pay pods model, and implementing technical fixes that have improved payroll processing, such as increased automation of transactions.
Over the last 2 years, we have made steady progress as we have reduced the overall queue of transactions waiting to be processed at the Pay Centre by 263,000 (from 633K to 370K), representing a 42% decrease.
Over the same period, we have reduced the backlog of transactions with financial implications by 201,000 (from 384,000 to 183,000), representing a 52% decrease. In addition, more than $2.2 billion in collective agreement retroactive payments have been paid to employees.
PSPC has multiplied the compensation workforce 4-fold since 2016, now with more than 2000 employees across the Pay Centre, the Client Contact Centre and the Client Service Bureau. PSPC continues to build capacity and provide training and support to compensation employees to further increase productivity. Additionally, the Client Contact Centre has been enhanced to provide better support to employees, including the ability to resolve pay issues in a faster and more effective way at the first point of contact.
Adding this important capacity is one component of an integrated plan for HR-to-pay stabilization, which has strengthened governance and includes measures related to stable systems, efficient processes, accurate HR data, and engaged stakeholders.
Multiple technical changes to stabilize the system have been implemented, including over 2,500 systems fixes and enhancements. System improvements include enhancements to collective agreement implementation, which has been successfully rolled out for the processing 2018 collective agreements.
We have completed the roll-out of the pay pod model to provide better services to employees served by the Pay Centre. Now all organizations served by the Pay Centre have transitioned to the pay pod model, representing more than 200,000 employees. Now that pay pods are fully implemented, the Pay Centre is meeting service standards more often, while reducing the overall queue and backlog.
The Treasury Board of Canada Secretariat and PSPC are working with departments and agencies to improve the timeliness and accuracy of HR data submitted to Phoenix. HR transactions that are not entered in a timely or accurate manner can create inaccurate pay and increase the complexity of a transaction. The department is responsible for reporting to organizations on the information available in the pay system regarding timeliness of transactions. Organizations are then asked to match these reports with their own HR system data to develop an understanding of the business practices and challenges that affect employees’ pay files.
Current status
For 2020 to 2021 and beyond, PSPC has developed the “HR-to-pay 3 year Forward Plan for 2019 to 2020 to 2022 to 2023” to further meet commitments and eliminate the backlog. This plan focuses on 3 key areas:
- increasing productivity for processing cases
- supporting the reduced intake of new cases
- accelerating the delivery of systems enhancements and fixes
Dependent on the continuation of funding, key early milestones outlined earlier:
- focusing existing capacity on backlog elimination
- redesigning the retroactive payments process
- completing collective agreement Implementation for 2014
PSPC will also continue to build on its partnerships to deliver results:
- working closely with departments to ensure HR data enters the pay system in a timely and accurate way
- ensuring that pay transactions can be processed quickly and accurately
- developing innovative tools and approaches and improving how we process pay
- continuing our collaboration with Canada Revenue Agency (CRA) and Revenu Québec to support employees experiencing tax issues
- implementing technical systems to improve how Phoenix functions
Real property repairs and maintenance
Project summary
A decrease in funding of $275.0 million is due to the sunset of budget 2019 funding provided to Public Services and Procurement Canada’s (PSPC) Federal Accommodation and Infrastructure Program to maintain current office accommodation and related real property service levels to federal departments and agencies.
Mains over Mains variance
The following table includes 2019 to 2020 and 2020 to 2021 year-over-year variance (in millions of dollars).
| Exercises | 2019 to 2020 | 2020 to 2021 | Year over year variance |
|---|---|---|---|
| Main Estimates (ME) Budget implementation vote | 275.0 | (275.0) | |
| Total ME budgetary expenditurestable 5 note 1 | 275.0 | 0 | (275.0) |
Table 5 Notes
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The funding was a top-up to the Real Property Program budget for 2019 to 2020.
The funding addressed PSPC’s Real Property Program integrity issues, which included growing health and safety risks, and a substantial need for urgent repairs and maintenance stemming from years of under investments. This funding provided interim relief while PSPC develops a long-term strategy to address ongoing budget pressures.
[Redacted]
As with the previous federal budget program integrity requests, should PSPC be granted funding for 1 or 2 years (consistent with the budget decisions in previous years), PSPC will likely continue to seek this funding in subsequent federal budget exercises.
Funding profile
The following table includes total funding per fiscal year.
| Exercises | 2016 to 2017 | 2017 to 2018 | 2018 to 2019 | 2019 to 2020 | 2020 to 2021 | Total |
|---|---|---|---|---|---|---|
| Main Estimates | 336.6 | 275.0 | 611.6 | |||
| Budget implementation vote (BIV)— Treasury Board Secretariat (TBS) | 275.0 | 275.0 | ||||
| Supplementary Estimates table 6 note 1 | 248.3 | 248.3 | ||||
| Total authorities | 248.3 | 336.6 | 275.0 | 275.0 | 0 | 1,134.9 |
Table 6 Notes
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Background PSPC provides a work environment for approximately 260,000 full time equivalent (FTEs), for 102 federal departments and agencies in 1,266 locations across Canada. By providing safe, secure and stable work environments to federal departments and agencies, we ensure they can focus on delivering their programs and services and support government priorities.
The vast majority of the activities in the Real Property operating budget cover expenses over which PSPC has no or very little control. Since PSPC is required to pay rent, electricity, contractual obligations (representing approximately 88% of the total program funding) and other non-discretionary expenditures, some types of expenditures were reduced temporarily in the past in the areas of cleaning and maintenance, building investigations reports and repairs. PSPC recognized that such reductions would cause additional costs in the future.
Due to program integrity pressures, PSPC managed its portfolio in the past at a sub-optimal level. In order to pay the non-discretionary operating costs, PSPC increasingly redirected funding away from needed repairs (for example in the areas of cleaning, maintenance, repairs and the production of building condition reports).
PSPC has a strong performance record for managing its building budget. In previous years, PSPC was able to spend on average more than 98% of its budget of approximately $2 billion (which included program integrity additional funding of $248.3 million in 2016 to 2017, $336.0 million in 2017 to 2018 and $275.0 million in 2018 to 2019 / respectively $13 million, $47 million and $30.0 million of lapse).
| Type of expenditures | Budget | % of envelope | Cumulative | Contractual obligations |
|---|---|---|---|---|
| Rent plus operating and utilities | 1,862.8 | 80% | 80% | Yes |
| Payments in lieu of taxes | 179.8 | 8% | 88% | Yes |
| Repairs and studies | 211.4 | 9% | 97% | No |
| Accommodation services | 36.0 | 2% | 99% | No |
| Others | 32.6 | 1% | 100% | No |
| Totaltable 7 note 1 | 2,322.5 | 100% | 100% | Nil |
Table 7 Notes
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As demonstrated in the table above, amounts received in fiscal year 2019 to 2020 are being spent based on the following priorities:
- all the contractual obligations (rent, utilities, payment in lieu of taxes (municipal taxes))
- direct building expenses (for example, regular building maintenance, security and grounds keeping (snow removal))
- any remaining funding is allocated for additional maintenance, repairs and studies that assess the state of these buildings (for example, building condition report, environmental reports and legionella)
Long Term Vision and Plan
Program summary
Public Services and Procurement Canada (PSPC) is implementing the Long Term Vision and Plan (LTVP) for the Parliamentary Precinct—a multi-decade plan for the restoration and modernization for the buildings and grounds on and around Parliament Hill.
The Parliamentary Precinct LTVP is a multi-decade strategy designed to:
- address the health and safety risks stemming from the deteriorated state of the 19th century Parliament buildings
- address the long-standing shortfall of adequate parliamentary accommodations; and
- modernize the buildings to meet the accommodation requirements of a 21st century Parliament, including addressing security, accessibility and sustainability considerations
In 2016 and 2017, policy and funding approvals were obtained to rehabilitate the Centre Block, and to transform the precinct into an integrated Parliamentary campus through a 3-step strategy:
- restore and modernize aging and underutilized assets along Sparks and Wellington streets, including the transformation of 100 Wellington into an Indigenous Peoples’ space
- leverage restored assets to create swing space, such as interim space, to support the rehabilitation of core buildings such as East Block, Confederation, Victoria, Office of the Prime Minister and Privy Council, and Blackburn buildings
- use the restored assets to consolidate accommodations of parliament, its administration, the Prime Minister’s Office and the Privy Council Office
Mains over mains variance
The following table includes 2019 to 2020 and 2021 to 2022 year-over-year variance.
| Exercises | 2019 to 2020 | 2020 to 2021 | Year over year variance |
|---|---|---|---|
| Main Estimates (ME) | 487.4 | 349.6 | (137.7) |
| Total ME budgetary expenditurestable 8 note 1 | 487.4 | 349.6 | (137.7) |
Table 8 Notes
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The variance is driven by an overall reduction in business volume caused by the completion of the West Block and the Senate of Canada Building, as other larger projects such as the Centre Block is completing enabling projects and delivering schematic design, construction planning and construction site preparation activities.
Funding profile for current 5-year program of work
The following table includes total funding per fiscal year.
| Exercises | 2016 to 2017 | 2017 to 2018 | 2018 to 2019 | 2019 to 2020 | 2020 to 2021 | Total |
|---|---|---|---|---|---|---|
| Main Estimates | 424.8 | 530.3 | 443.9 | 487.4 | 349.6 | 2,236.0 |
| Carry forward | 22.2 | 16.1 | 11.9 | - | - | 50.2 |
| Reprofiles | (65.0) | (59.7) | - | (31.5) | - | (156.3) |
| Total approved funding | 382.0 | 486.7 | 455.7 | 455.8 | 349.6 | 2,129.9 |
| Year-end adjustments | (16.1) | (11.9) | - | - | - | (28.0) |
| Total authorities | 365.9 | 474.9 | 455.7 | 455.8 | 349.6 | 2,101.9 |
Notes
- In 2016 to 2017, $65.0 million has reprofiled to 2018 to 2019
- In 2017 to 2018, $59.7 million has reprofiled to 2021 to 2022
- In 2019 to 2020. $31.5 million has reprofiled to 2020 to 2021
- Totals may not add up due to rounding
Significant progress has been made for the LTVP, including the completion of the following key projects on time and budget:
- the Sir John A. Macdonald Building (2015)
- the Wellington Building (2016)
- the Senate of Canada Building in Ottawa’s former Union Station (2018)
- the West Block and new Visitor Welcome Centre phase 1 (2018)
The completion of these projects enabled the transition of parliamentary operations from the Centre Block in 2018.
Following the successful transition of parliamentary operations in 2018, a building assessment program was launched, and the Centre Block was officially transferred to construction manager in September 2019. Since then, enabling projects and construction activities began, including some interior demolition and abatement, and excavation of the front lawn in preparation of expanding the Visitor Welcome Centre that will eventually link the West, Centre and East Blocks.
In the year ahead (2020 to 2021), PSPC will continue to work in concert with parliament to finalize functional and design decisions, and advance major construction activities. PSPC will also continue advancing the integrated campus strategy through its work on the block 2 redevelopment project, including an international design competition, and other efforts underway to update the LTVP to ensure that important connective infrastructure issues such as accessibility, sustainability, security, and the movement of people, goods and vehicles are considered.
Background
The Parliamentary Precinct is comprised of 35 Crown-owned buildings, of which 28 are designated federal heritage properties, including the parliamentary triad (West Block, Centre Block, and East Block), as well as several leased properties throughout the National Capital Area.
Responsibility for the precinct is split between the legislative and executive branches:
- Legislative Branch: Parliament is responsible for determining its needs and project requirements, as well as parliamentary operations.
- Executive Branch: The Minister of Public Services and Procurement is the custodian of the buildings and grounds of the precinct, and is responsible for the day-to-day operations of the buildings, and the planning and delivery of major restoration and modernization projects. In this capacity, the minister is also responsible for securing and controlling the budgets associated with this work.
Other key players in the precinct include the Library of Parliament and the Parliamentary Protective Service as clients, as well as the City of Ottawa and other federal organizations; including the National Capital Commission, Canadian Heritage and Parks Canada as stakeholders.
First approved in 2001, and subsequently updated in 2006, the Long Term Vision and Plan is a flexible framework guiding the government’s efforts to restore and modernize the Parliamentary Precinct, and to make it more accessible, sustainable and secure.
It is delivered via rolling programs of work of 3 to 5 years that establish short-term priorities, while establishing the long-term direction of the program. These shorter increments also enable the government to respond more easily to risk and evolving parliamentary requirements. Programs of work comprise several concurrent projects of varying sizes and durations, including large scale heritage restorations, new construction projects, smaller fit-up and information-technology related works, as well as planning initiatives.
Current status
The objective of the LTVP has, until recently, been on creating the swing space and interim accommodation necessary to vacating the Centre Block and launching its historic rehabilitation.
With parliamentary operations now taking place in these new interim accommodations, current efforts are focused on the rehabilitation of Centre Block, as well as the rehabilitation of remaining assets still in need of intervention. Moving forward, PSPC is shifting away from a building-by building approach and adopting a holistic approach to create an integrated parliamentary campus. The LTVP is being formally updated to reflect this move towards an integrated Parliamentary campus.
PSPC is also advancing the redevelopment of the 3 city blocks across from Parliament Hill, along Sparks and Wellington streets. The transformation of the precinct into an integrated campus will begin with the redevelopment of the block bounded by Metcalfe, Sparks, O’Connor and Wellington streets (referred to as block 2), which includes the construction of a new building to support the immediate and long-term accommodations for parliament and the transformation of the former US embassy located at 100 Wellington Street into a national space for Indigenous Peoples. [Redacted] A design competition for the project is expected to be launched in 2020 with construction to follow.
Future phases of the redevelopment will transform the remaining 2 blocks, including the restoration and modernization of the Office of the Prime Minister and Privy Council.
Through these projects, PSPC, parliament, and stakeholders continue to work collaboratively to identify functional, flexible, integrated, and creative approaches to realize the full potential of the precinct campus and its important role in the nation's capital.
The complex scope of work within the precinct is delivered in 5 coordinated and integrated programs:
- Major Capital Program: manages rehabilitation and new construction projects, including construction and fit-up of all buildings for interim and permanent accommodations (for example, West Block, Centre Block and East Block)
- Recapitalization Program: addresses the work required to preserve the buildings, address health and safety issues, and reduce overall costs while ensuring the ongoing operations of occupied buildings
- building Components and Connectivity: consists of the modernization on campus-wide communication and information technology
- Planning Program: involves the development of strategic master plans, development plans, and enabling studies to guide investment decisions and the prioritization of future projects
- security Infrastructure: delivers security measures in the precinct
The approved program of work for the Long Term Vision and Plan will continue into the 2030s.
Predictable capital funding
Project summary
As announced in budget 2019, the funding received by Public Services and Procurement Canada (PSPC) enables the department’s long-term capital funding management strategy in support of a better planning and delivery of its infrastructure projects and assets portfolio plan.
It will provide the department secured funding over a 20 year period, to be used in the acquisition of, and betterments to capital assets such as building, bridges and federal labs. The transition to predictable capital funding will help ensure a more effective and efficient delivery of PSPC’s infrastructure programs, and produce a more timely and strategic fund allocation process needed to ensure a healthy asset portfolio.
Mains over mains variance
The following table includes the 2019 to 2020 and 2021 to 2022 year-over-year variances.
| Exercises | 2019 to 2020 | 2020 to 2021 | Year-over-year variance |
|---|---|---|---|
| Main Estimates (ME) Budget Implementation Vote (BIV) |
372.6 | 0 | (372.6) |
| Main Estimates | 0 | 589.3 | 589.3 |
| Total ME budgetary expenditurestable 10 note 1 | 372.6 | 589.3 | 216.8 |
Table 10 Notes
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Part of the funding will go toward the following projects:
- Alaska Highway
- British Columbia: Esquimalt Graving Dock
- British Colombia: Vancouver Hub Sinclair Centre redevelopment
Alaska Highway
This project includes the replacement of salt sheds, the rehabilitation and recoating of some of the bridges on the highway, asphalt overlay to extend its existing life, culvert replacement and rehabilitation in numerous locations, rip-rap production for erosion control, slope stabilization in a number of locations and numerous other projects to keep the highway safe and operational for the northern communities and businesses which rely on the highway as an essential transportation route. This project is in delivery stage.
British Colombia: Esquimalt Graving Dock
The program funding (multiple projects across the facility) for Esquimalt Graving Dock (EGD) will facilitate expansion of the facility with 2 parkades and warehouse space, as well as extending the Graving Dock Basin by 35 metres, which will reduce costs to repair, maintain and retrofit vessels considerably for the Royal Canadian Navy and increase revenues for EGD. Program funding will also ensure operational continuity in the almost 100 year old facility by refurbishing legacy infrastructure such as sewer, water, fire alarms, dock wall and floor concrete, and capstans, as well as address other safety issues in the pump house and service tunnels. The program of work is in the planning phase, with design following later in 2020 and onward. Program funding will ensure delivery phase of the above-noted program of work can be completed by 2023.
British Colombia: Vancouver Hub Sinclair Centre redevelopment
Funding for the Sinclair Centre infrastructure project is to undertake the redevelopment of the Sinclair Centre site in Downtown Vancouver and retention of 2 other Crown-owned buildings (Library Square and Douglas Jung) and public contact space proposed as the Downtown Vancouver Hub. The Sinclair Centre infrastructure project will create a sustainability showcase for the federal government by supporting modern and emerging sustainable construction. It addresses portfolio objectives and will also:
- help to achieve the greenhouse gas emission reduction targets set out in the Federal Sustainable Development Strategy by implementing current and future sustainable design and technology in the delivery of this project
- enhance the employee and public experience with the federal government by creating an accessible centralized hub for the workplace of the future
- build communities by supporting the priorities of the City of Vancouver to create a world class transportation hub at Waterfront Station and provide job space in Downtown Vancouver. Planning / project identification stage (mix of approved feasibility report, approved statement of requirements, contract awarded)
Funding Profile for current 5-year program of work
The following table includes total funding per fiscal year.
| Exercises | 2019 to 2020 | 2020 to 2021 | 2021 to 2022 | 2022 to 2023 | 2023 to 2024 | Total |
|---|---|---|---|---|---|---|
| ME (BIV—vote 35) | 372.6 | 0 | 0 | 0 | 0 | 372.6 |
| ME | 589.3 | 549.6 | 492.3 | 408.2 | 2,039.4 | |
| Reprofile | (98.0) | 0 | 0 | 0 | 0 | (98.0) |
| Remaining (BIV—vote 35) | (0.4) | 0 | 0 | 0 | 0 | (0.4) |
| Accommodation and Shared Services Canada costs | (1.4) | 0 | 0 | 0 | 0 | (1.4) |
| Total authoritiestable 11 note 1 | 272.8 | 589.3 | 549.6 | 492.3 | 408.2 | 2,312.3 |
Table 11 Notes
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In 2019 to 2020, $98.0 million was reprofiled to 2020 to 2021 and 2025 to 2026.
Background
Accrual budgeting
Since 2003, the Government of Canada’s annual financial statements (the Public Accounts) have been produced on an accrual accounting basis which uses the accrual costs of programs, not their cash profiles, to calculate the fiscal balance.
The federal budget is also prepared on an accrual basis.
PSPC will be the second department to implement accrual budgeting (after the Department of National Defence in 2005).
Management of capital budgets under the current cash based budget approach has historically limited PSPC’s financial flexibility. Uncertainties as to the amount of funds available each year have led to short term planning and delays of large capital projects required to maintain an acceptable level of performance across all assets.
Accrual budgeting will focus on enabling proactive, long-term and strategic planning for PSPC's capital assets portfolio through access to stable capital funds. It will increase the department’s financial flexibility and maximise the use of its resources for the maintenance and reinvestments in its assets.
To realize the full benefits of accrual budgeting (such as stable capital funding, better planning, increased flexibility, etc.), changes are required relating to how the department plans, records, approves, and controls project financial information throughout the asset lifecycle (which begins by identifying the asset as capital investment and ends with its disposal). These changes will introduce new capabilities, policies and processes that depend on reliable access to accurate budget and cost data throughout this lifecycle.
Purpose and benefits
- Establishes long-term predictable capital funding, essential to support portfolio investment planning
- Enables PSPC to establish and implement investment strategies which transparently align investments with the use of its assets:
- buildings
- information technology (IT)
- specialized assets such as bridges, dams and heating plants
- enables a shift away from one-off approvals to portfolio-wide multi-asset investments planning and implementation, this will provide parliamentarians and Canadians with a much clearer understanding of the overall capital requirements, timing and strategic planning
Federal Sciences and Technology Infrastructure Initiatives
Project summary
Federal science and technology research plays a key role in the Government of Canada; however, much of the existing infrastructure supporting this role is outdated. Public Services and Procurement Canada (PSPC) is working in partnership with federal science-based departments and agencies (SBDAs) to implement a Long Term Vision and Plan (LTVP) that will revitalize Canada’s science and technology ecosystem. This initiative will bring together SBDA to share facilities, develop synergies between programs, facilitate collaborative research and support scientific excellence into the future. The strategy also aims to advance a series of science outcomes. The LTVP is also influenced by 6 guiding principles, including:
- science excellence
- collaboration
- a diverse and inclusive talent pool
- agility and responsiveness
- environmental responsibility
- responsible public stewardship
The focus of the first phase will be on science needs and strengthened collaborations, while also addressing federal science facilities in critical condition by renewing and building collaborative facilities in Ontario, Quebec and Western Canada. It will also address other key deliverables, such as the launch of a horizontal approach to streamline the procurement of science equipment; the mitigation of administrative and policy barriers that impede collaboration; and improvements to digital infrastructure capabilities.
Budget 2018 provided $2.8 billion to launch the first phase of an initiative for building world-class, collaborative, accessible, and sustainable science facilities. Of this amount, PSPC is requesting funding for the implementation phase to provide federal scientists with facilities and tools that enable collaboration and support the important work they carry out for Canadians.
Mains over mains variance
The following table includes 2019 to 2020 and 2021 to 2022 year-over-year.
| Exercises | 2019 to 2020 | 2020 to 2021 | Year over year variance |
|---|---|---|---|
| Main Estimates (ME) | 0 | 101.1 | 101.1 |
| Total ME budgetary expenditurestable 12 note 1 | 0 | 101.1 | 101.1 |
Table 12 Notes
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The funding to be received in the ME will allow PSPC to advance the first phase as follows:
- Design and project delivery
- Site selection
- Engagement and change management
- Information management and information technology
- Policy barriers
- Effective life-cycle management of Canada’s renewed federal science infrastructure
Design and project delivery
Over the course of 2020 and 2021, PSPC will tender and award regional based architectural and engineering services and construction management contracts to design and build the facilities located across Canada. The regional approach supports a streamlined and efficient approach to delivery. This approach also creates a scale of economy while creating more bidding opportunities for firms across Canada to participate in this work.
Continue to advance the planning, design and delivery of 11 science infrastructure projects with the first planned to open by 2022
Site selection
A list of potential sites has been identified and are currently being assessed against science, real-property and socio-economic impacts. The site selection methodology was developed in collaboration with the science community in order to ensure that science is the primary driver of any decision made for new facilities (summer 2020).
Engagement and change management
Federal Sciences and Technology Infrastructure Initiatives also referred to as Laboratories Canada (LC) will develop strategies that support each key activity and its distinct stakeholders (for example, unions, clusters, scientists), building collaborative and successful partnerships to enable the effective management of this horizontal initiative.
Information management and information technology
LC will work with Shared Service Canada’s Science Program to define and develop the IT services required to deliver science outcomes (late 2020). In its first phase, the program has 2 primary responsibilities:
- to ensure that the design phase of each project is properly informed from a technology requirements perspective
- to ensure appropriate base building infrastructure in each Laboratories Canada facility (WAN, LAN, Wi-Fi, video conferencing and telephony)
Policy barriers
The task of mitigating policy and administrative barriers that block modern science collaboration is underway. For example, the Policy on Transfer Payments was previously interpreted as prohibiting any federal involvement in projects where recipients received grants and contributions funding. Additional barriers will be addressed through the development of a new custodianship model and operating framework (winter 2021).
Effective life-cycle management of Canada’s renewed federal science infrastructure
In order to best support the effective life-cycle management of new and renewed federal science infrastructure, PSPC is working with the Treasury Board Secretariat on 3 key initiatives:
- continue to collaborate with SBDAs to develop a new custodianship model and associated operating framework to fund and operate the facilities (generic model and framework to be completed fall 2020)
- establish a federal science and technology enterprise portfolio strategy in order to optimize future investments for a whole of government (fall 2020)
- develop an integrated approach to the procurement and equipment sharing of science assets (winter 2020)
Funding profile
The following table includes total funding per fiscal year.
| Exercises | 2018 to 2019 | 2019 to 2020 | 2020 to 2021 | 2021 to 2022 | 2022 to 2023 | Total | Ongoing |
|---|---|---|---|---|---|---|---|
| Main Estimates | 0 | 0 | 101.1 | 246.9 | 242.7 | 590.8 | 4.1 |
| Vote transfer | 11.3 | 0 | 0 | 0 | 0 | 11.3 | 0 |
| Supplementary Estimates (A) | 0 | 97.1 | 0 | 0 | 0 | 97.1 | 0 |
| Supplementary Estimates (B) (transfers) | 0 | (6.5) | 0 | 0 | 0 | (6.5) | 0 |
| Reprofiles | 0 | (53.3) | 0 | 0 | 0 | (53.3) | 0 |
| Total authorities | 11.3 | 37.3 | 101.1 | 246.9 | 242.7 | 639.4 | 4.1 |
Note
- In 2019 to 2020, $53.3 million was unspent and reprofiled to 2020 to 2021, 2021 to 2022 and 2022 to 2023
- Totals may not add up due to rounding
Thus far, this funding has allowed LC to:
- establish program and project teams, which includes providing funds to SBDAs to support implementation
- undertake a variety of activities to advance Phase 1, including:
- tendering the major architectural and engineering services contract for Laboratory Design, the contractor has started the development of a laboratory standards catalogue, functional programming, and concept designs for the renewal of the critical science infrastructure elements
- tendering the regional based architectural and engineering services and construction management contracts for Ontario regions to design and build the facilities located across Canada
- working with SBDAs to create opportunities for equipment-sharing and cost-sharing; for example, listing federal science facilities and equipment on the Research Facilities Navigator with the Canada Foundation for Innovation—an open database through which the science community can share common equipment
- working in alignment with the Treasury Board Secretariat’s horizontal fixed asset review, develop a new custodianship model and associated operating framework to fund and operate the facilities in a way that keeps these assets viable and useful for the long term, avoiding a repeat of the current costly rust-out
Price and volume protection
Project summary
The funding is for the protection from inflation and price variations relating to space requirements for real property items for which PSPC has very little or no control (cost of rent, gas, electricity and the number of public servants to accommodate).
Mains over mains variance
The following table includes 2019 to 2020 and 2021 to 2022 year-over-year variance.
| Exercises | 2019 to 2020 | 2020 to 2021 and ongoing | Year over year variance |
|---|---|---|---|
| Main Estimates (ME) | 270.5 | 348.0 | 77.5 |
| Total ME budgetary expenditurestable 14 note 1 | 270.5 | 348.0 | 77.5 |
Table 14 Notes
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The increase of $77.5 million is for accommodation costs in order to protect PSPC from inflation and variations in space requirements for public servants (non-discretionary expenses) as follows:
- $39.5 million to cover planned price fluctuations (based on a forecasted consumer price index (CPI) of 1.98%)
- $39.9 million to cover volume variations (1.9% of the $2.09 billion 2019 to 2020 gross budget);
- ($2.8 million) to cover the reconciliation exercise, amounts received in 2018 to 2019 (based on forecast) compared with the actual expenditures and inventory
- $0.9 million for data centres decommissioning costs to be paid by PSPC for Shared Services Canada
Funding profile The following table includes total funding per fiscal year.
| Exercises | 2014 to 2015 | 2015 to 2016 | 2016 to 2017 | 2017 to 2018 | 2018 to 2019 | 2019 to 2020 | 2020 to 2021 and ongoing |
|---|---|---|---|---|---|---|---|
| Main Estimates | 25.2 | 64.3 | 71.9 | 147.0 | 207.3 | 270.5 | 348.0 |
| Supplementary Estimates | 0 | 0 | 0 | 0 | 0 | 0.9 | 0 |
| Total authoritiestable 15 note 1 | 25.2 | 64.3 | 71.9 | 147.0 | 207.3 | 271.4 | 348.0 |
Table 15 Notes
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Background
PSPC’s accommodation and Real Property Services’ mandate is to meet the accommodation needs of federal organizations by providing and maintaining a cost effective real property portfolio of office facilities and common use assets.
Real Property’s portfolio is comprised of facilities either owned by the crown or leased from the private sector, some with the option to purchase.
- 102 departments and agencies (approximately 50% of public servants located in the National Capital Area)
- 6.9M m2 office space or special purpose facilities
- 350 Crown-owned, 1,162 leased and 12 lease purchase facilities (as of September 30, 2019)
- federal holdings such as power plants, bridges, dams, roadways and other engineering assets
- Parliament Hill and Surroundings Program (providing office and special use accommodations space for the Senate, House of Commons, Library of Parliament and other parliamentary partners)
Price and volume methodology
The current methodology used was approved in 2015 and is subject to a review on a five-year cycle. The review, to be undertaken by the Treasury Board of Canada Secretariat, the Department of Finance (DoF) and PSPC would seek to determine among other things, whether the methodology has achieved its objectives and whether any adjustments should be made. A report will be submitted to the Treasury Board detailing the results of the review, after 5 annual funding requests have been approved and reconciled. The review is planned to start in December 2020, 5 years after the first funding request was approved in December 2015.
In return for this protection, any unspent funds are returned to the DoF fiscal framework:
- formula considers:
- consumer price index (inflation)
- actual spending
- variations to the inventory
- reconciliation exercise: compares the funding provided previously based on forecast to actuals, ensuring PSPC is not over/under funded
Les Terrasses de la Chaudière
Project summary
As announced in Budget 2016, the funding received by PSPC is to modernize Les Terrasses de la Chaudière (LTDLC) complex’s exterior envelope while addressing the health and safety concerns associated with the deteriorating exterior brick.
This work will be carried out on the 4 towers that comprise the LTDLC Complex (1 Promenade du Portage, 10 Wellington, and 15 and 25 Eddy). The funds are being used to cover all costs related to the project management; the provision of architectural and engineering consulting services to design the new replacement envelope, as well as construction services.
The envelope replacement project is currently in the design phase and it is expected to proceed to construction in summer 2021 the program of work for the LTDLC encompasses envelope replacement project as well as the following projects:
- the replacement of the exterior wall envelope and roofs
- the rehabilitation of the parking garage structure, ventilation and heating systems, and electrical components of the garage
- the renovation of the GCworkplace office space
- the renewal of the base building systems to accommodate growth and meet government sustainability targets
- the improvement of the LTDLC landscape, courtyard and ground floor for the retail spaces that are open to the public
Of these projects, the parking garage project is currently underway with a planned completion date of fall 2020. The remainder of the projects are in the inception stage.
Mains over mains variance
The following table includes 2019 to 2020 and 2021 to 2022 year-over-year variance.
| Exercises | 2019 to 2020 | 2020 to 2021 | Year over year variance |
|---|---|---|---|
| Main Estimates (ME) | 0 | 57.8 | 57.8 |
| Total ME budgetary expenditurestable 16 note 1 | 0 | 57.8 | 57.8 |
Table 16 Notes
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LTDLC is currently at the project delivery stage, more specifically in the design phase. The funding to be received in the ME will be used to develop more technical feasibility studies for the design plan of the project and prepare the acquiring construction services.
Funding profile
The following table includes total funding per fiscal year.
| Exercices | 2019 to 2020 | 2020 to 2021 | 2021 to 2022 | 2022 to 2023 | 2023 to 2024 | 2024 to 2025 | Total |
|---|---|---|---|---|---|---|---|
| Main Estimates | 57.8 | 59.8 | 62.0 | 25.2 | 0.1 | 204.9 | |
| Supplementary Estimates | 35.3 | 35.3 | |||||
| Total authorities table 17 note 1 | 35.3 | 57.8 | 59.8 | 62.0 | 25.2 | 0.1 | 240.2 |
Table 17 Notes
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Background
PSPC is committed to renewing the LTDLC complex over the long term. This will include the modernization of the interior space and upgrades to mechanical, electrical, heating and cooling systems, as well as the renewal of the site.
The LTDLC complex was built between 1976 and 1978. It is composed of 4 office towers located in downtown Gatineau and accommodates over 6,400 people, as well as retail, daycare and storage space.
The complex contributes to the overall portfolio strategy for accommodation within the National Capital Area (NCA) supporting the 75:25 ratio for office accommodation between Gatineau and Ottawa.
The exterior brick-veneer has undergone advanced deterioration. Since the late 1990’s, brick fragments have fallen from the building. To maintain safety, PSPC has managed a brick inspection and repair program for over 10 years. In 2014, PSPC installed an overhead protection system and closed the courtyard of the complex to the public. These precautions will remain in place until the project is complete.
The replacement of the building envelope with a sustainable cladding solution will result in a higher performing building, thereby reducing building operation costs and greenhouse gas emissions which support the Federal Sustainable Development Strategy and the NCA Portfolio Strategy objectives. It is expected that the new envelope will improve the facility’s overall energy performance by 24 percent above the National Energy Code for buildings.
West Memorial Building
Project summary
As announced in Budget 2016, the funding received by Public Services and Procurement Canada (PSPC) is to rehabilitate the West Memorial Building (WMB) in order to provide interim accommodation for the operation of the Supreme Court and federal courts and their employees during the renovation of the Supreme Court of Canada Building (SCCB).
The project will update the WMB and fit-up accordingly to accommodate the daily operations of all occupants of the SCCB, who will occupy the WMB from 2023 to 2028.
This project will upgrade and conserve important symbolic spaces while supporting the uninterrupted operations of the Supreme Court and federal judiciary.
The project includes the:
- major rehabilitation of heritage fabric, including exterior walls, windows and interior finishes
- major rehabilitation of mechanical, electrical and life safety systems
- modernization of information technology, multimedia and security systems
- seismic upgrading to current building code requirements
- interior fit-up for occupants of the SCCB
Mains over mains variance
The following table includes 2019 to 2020 and 2021 to 2022 year-over-year variance.
| Exercises | 2019 to 2020 | 2020 to 2021 | Year over year variance |
|---|---|---|---|
| Main Estimates | 15.6 | 66.5 | 50.9 |
| Total ME budgetary expenditurestable 18 note 1 | 15.6 | 66.5 | 50.9 |
Table 18 Notes
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The funding to be received in the Main Estimates will be used to continue the site preparation work and start the construction of the WMB rehabilitation project.
Funding profile for the phase 1
The following table includes total funding per fiscal year.
| Exercises | 2017 to 2018 | 2018 to 2019 | 2019 to 2020 | 2020 to 2021 | 2021 to 2022 | 2022 to 2023 | 2023 to 2024 | Total |
|---|---|---|---|---|---|---|---|---|
| Main Estimates | 0 | 13.9 | 15.6 | 66.5 | 89.3 | 81.0 | 77.9 | 344.2 |
| Supplementary Estimates | 1.1 | 0 | 22.1 | 0 | 0 | 0 | 23.1 | |
| Total authoritiestable 19 note 1 | 1.1 | 13.9 | 37.7 | 66.5 | 89.3 | 81.0 | 77.9 | 367.3 |
Table 19 Notes
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Background
The WMB is part of Canada’s primary Second World War memorial and was constructed between 1954 and 1958.
The WMB is an important classified heritage building in the existing crown-owned inventory and was selected as the interim facility for the SCCB.
The project will help conserve one of Canada’s primary heritage memorials to those who lost their lives in the Second World War and to honour veterans for years to come.
The building has been vacant since 2008 because of its current overall poor condition and related health and safety issues. It has never gone through a major rehabilitation. The building systems exceeded their expected life cycles and the building did not meet building code requirements for occupancy.
The WMB needs to be rehabilitated before it can be used as interim accommodation during the rehabilitation of the SCCB. This information is not public.
| Supreme Court of Canada Building | 2017 to 2018 | 2018 to 2019 | 2019 to 2020 | 2020 to 2021 | 2021 to 2022 | 2022 to 2023 | 2023 to 2024 | 2024 to 2025 | Total |
|---|---|---|---|---|---|---|---|---|---|
| Phase I (WMB rehabilitation) | |||||||||
| Planning and design | 1.1 | 13.9 | 15.6 | - | - | - | - | - | 30.6 |
| Implementation | - | - | 22.1 | 66.5 | 89.3 | 81.0 | 77.9 | - | 336.8 |
| Total approved funding phase 1 | 1.1 | 13.9 | 37.7 | 66.5 | 89.3 | 81.0 | 77.9 | - | 337.3 |
| Fiscal framework | - | - | - | 2.1 | 8.9 | 42.0 | 95.0 | 657.1 | 805.2 |
| Total project fundingtable 20 note 1 | 1.1 | 13.9 | 37.7 | 68.6 | 98.2 | 123.0 | 172.9 | 657.1 | 1,172.5 |
Table 20 Notes
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In 2017, project approval was provided for a 3-phase program of work for a total amount of $1.173B as follows:
- $367.3M for the WMB rehabilitation project—Phase I:
- in 2019, an additional $17.0M was granted and is to be sourced from PSPC’s internal reference levels to deliver on the additional enhance sustainability measures
- $805.2M: Fiscal framework funding:
- SCCB rehabilitation—Phase II
- WMB future re-fit—Phase III
The detailed funding requirements for the upcoming phases of the program of work will be confirmed during the planning process.
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