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2020 to 2021 Main Estimates: Standing Committee on Government Operations and Estimates—November 16, 2020

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Public Services and Procurement Canada 2020 to 2021 Main Estimates overview

The 2020 to 2021 Main Estimates were tabled in Parliament on February 27, 2020.

The Parliament was prorogued on August 18, 2020 and recalled on September 23, 2020. As a result of this prorogation, 2020 to 2021 Main Estimates were re-tabled in Parliament on September 30, 2020.

Public Services and Procurement Canada’s (PSPC) opening net budget is $4.048 billion. Compared to the 2019 to 2020 opening net budget of $4.235 billion this is a net decrease of $187.2 million which is attributable to the combination of items outlined below.

Increases of funding totalling $504.1 million

Predictable capital funding

Increase of $216.8 million for predictable capital funding to improve the management of the PSPC’s portfolio of assets.

Purpose of funding

Federal sciences and technology infrastructure initiatives

Increase of $101.1 million for renewing federal laboratories to provide federal scientists with facilities and tools that enable collaboration and support the important work they carry out for Canadians.

Purpose of funding

Price and volume protection

Increase of $77.5 million for price and volume protection for accommodation costs to protect PSPC from non-discretionary price and volume fluctuations associated with crown-owned building and leased space.

Purpose of funding

Les Terrasses de la Chaudière

Increase of $57.8 million for Les Terrasses de la Chaudière (LTDLC) Complex to modernize the exterior envelope and address the health and safety concerns associated with the deteriorating exterior brick cladding.

Purpose of funding

West Memorial Building

Increase of $50.9 million for the rehabilitation of the West Memorial Building (WMB) (implementation phase) in order to provide interim accommodation during renovation of the Supreme Court of Canada Building (SCCB).

Purpose of funding

Decreases of funding totalling $690.6 million

Government of Canada pay system

Decrease of $277.9 millions for the Government of Canada pay system: as a result of sunset funding from budget 2019.

Purpose of funding

Real property repairs and maintenance

Decrease of $275.0 millions for real property repairs and maintenance as a result of the sunset of budget 2019 funding to maintain current office accommodation and related real property service levels to federal departments and agencies.

Purpose of funding

Long Term Vision and Plan

Decrease of $137.7 million for Long Term Vision and Plan (LTVP) as a result of the completion of 2 projects: West Block Visitor Centre phase 1 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.

Purpose of funding

Main Estimates placemat

Parliamentary reporting and estimates supply cycle

April

April to June

July to December

January to March

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:

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.

Table 1: Decreases
Item Description Total
A Government of Canada pay system: Sunset of funding from budget 2019. (277.9)
B 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)
C 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)
Table 2: Increases
Item Description Total
D Predictable capital: To improve the management of PSPC’s portfolio of assets. 216.8
E 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
F 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
G 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
H 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 504.1
2020 to 2021 Main Estimates net decrease as compared to the previous year’s Main Estimates (187.2)

Note

  • This total is the total of the decreases and increases table combined.
  • Numbers may not add up due to rounding.

Main Estimates line item narratives

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 to rebuild their confidence in the integrity of their pay and pensions.” The desired expected results from this commitment include that:

Mains over mains variance

The following table includes 2019 to 2020 and 2020 to 2021 year over year variance.

Table 3: Government of Canada pay system 2019 to 20202 and 2020 to 2021 year-over-year variance (in millions of dollars)
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 Main Estimates budgetary expenditurestable 3 note 1 371.0 93.1 (277.9)

Table 3 Notes

Table 3 Note 1

Totals may not add up due to rounding.

Return to table 3 note 1 referrer

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 human resources (HR)-to-pay. For example, the Pay Centre overall cases waiting to be processed has declined by 56% from January 2018 to October 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 implementation 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:

Key early milestones will include:

Background

Since the launch of Phoenix 4 years ago, PSPC has implemented a series of measures focused on stabilizing the pay system. These include increasing the compensation workforce, providing employees with greater support through our Client Contact Centre, introducing the pay pods model at the Pay Centre, implementing a backlog reduction strategy and implementing technical fixes that have improved payroll processing, such as increased automation of transactions.

As a result, since its peak in January 2018, the Pay Centre's backlog of transactions with financial implications beyond normal workload has been reduced by 71% (from 384,000 to 110,000) as of October 28, 2020.

Over the same period of time, the overall queue of transactions waiting to be processed at the Pay Centre has decreased by 56%, representing a reduction of 352,000 transactions, from 633,000 to 281,000.

In addition, almost $2.5 billion in collective agreement retroactive payments have been paid to employees, for the 2014 round.

PSPC has multiplied the compensation workforce fo4ur-fold since 2016, now with more than 2,300 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.

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 of 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 (approximately 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 their timeliness of entering HR 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

PSPC is implementing the “HR-to-Pay Three-Year Forward Plan for 2019 to 2020 to 2022 to 2023”, enabling the department to further meet commitments and eliminate the backlog. This plan focuses on 3 key areas:

In the short-term, PSPC is concentrating on:

PSPC will also continue to build on its partnerships to deliver results:

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.

Table 4: Property repair and maintenance variances for fiscal years 2019 to 2020 and 2020 to 2021 (in millions of dollars)
Exercises 2019 to 2020 2020 to 2021 Year over year variance
Main Estimates budget implementation vote 275.0 - (275.0)
Total Main Estimates budgetary expenditurestable 4 note 1 275.0 0 (275.0)

Table 4 Notes

Table 4 Note 1

Totals may not add up due to rounding.

Return to table 4 note 1 referrer

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]

Current status

Funding profile

Table 5: The following table includes total funding per fiscal year (in millions of dollars)
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 248.3 - - - - 248.3
Total authoritiestable 5 note 1 248.3 336.6 275.0 275.0 0 1,134.9

Table 5 Notes

Table 5 Note 1

Totals may not add up due to rounding.

Return to table 5 note 1 referrer

Background PSPC provides a work environment for approximately 260,000 full time equivalents, 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 millions in 2016 to 2017, $336.0 millions in 2017 to 2018 and $275.0 millions in 2018 to 2019 / respectively $13M, $47 millions and $30.0 millions of lapse).

Table 6: Gross building special purpose allotment expenditure breakdown for fiscal year 2019 to 2020 (in millions of dollars)
Type of expenditures Budget % of envelope Cumulative Contractual obligations
Rent, 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 6 note 1 2,322.5 100% 100% Nil

Table 6 Notes

Table 6 Note 1

Totals may not add up due to rounding.

Return to table 6 note 1 referrer

As demonstrated in the table above, amounts received in fiscal year 2019 to 2020 are being spent based on the following priorities:

Long Term Vision and Plan: Parliamentary Precinct

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 of the buildings and grounds on and around Parliament Hill.

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.

First approved in 2001, and subsequently updated in 2006, the LTVP 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. The Parliamentary Precinct LTVP is a multi-decade strategy designed to:

The LTVP functions through rolling programs of work with shorter-term implementation objectives in order to build upon lessons learned and mitigate risks within the longer-term vision. 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.

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. The approved program of work for the LTVP will continue into the 2030s.

Key messages

Mains over mains variance

Table 7: The following table includes LTVP year over year variance for 2019 to 2020 and 2021 to 2022 (in millions of dollars)
Exercises 2019 to 2020 2020 to 2021 Year over year variance
Main Estimates 487.4 349.6 (137.7)
Total Main Estimates budgetary expenditurestable 7 note 1 487.4 349.6 (137.7)

Table 7 Notes

Table 7 Note 1

Totals may not add up due to rounding.

Return to table 7 note 1 referrer

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. Other larger projects such as the Centre Block are completing enabling projects and delivering schematic design, construction planning and construction site preparation activities.

Funding profile for current 5-year program of work

Table 8: The following table includes total funding per fiscal year (in millions of dollars)
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
Note
  • In 2016 to 2017, $65.0 millions has reprofiled to 2018 to 2019
  • In 2017 to 2018, $59.7 millions has reprofiled to 2021 to 2022
  • In 2019 to 2020. $31.5 millions has reprofiled to 2020 to 2021
  • Totals may not add up due to rounding

Current status

Significant progress has been made on 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), as well as 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.

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. Since then, enabling projects have been completed, a comprehensive assessment of the building’s condition was undertaken and construction activities began, including some interior demolition and abatement, and excavation of the front lawn in preparation of expanding the Parliament Welcome Centre that will eventually link the West, Centre and East blocks.

Throughout the COVID-19 crisis, construction has continued on the Centre Block and East Blocks with industry-leading health and safety protocols in place to ensure appropriate social distancing and compartmentalization of the construction site.

In the year ahead (2020 to 2021), PSPC will continue engaging with parliamentarians to confirm parliamentary requirements and schematic designs for the Centre Block rehabilitation project. 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). This 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 and the adjacent 119 Sparks Street into a national space for Indigenous Peoples. The block 2 redevelopment project will include an international design competition that will allow PSPC to select the best design team with the demonstrated capacity to undertake this nationally-significant architectural project. 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.

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.

In terms of current status, the funding received of $589 millions in 2020 to 2021 is a top-up to department’s capital authorities. The department is planning to spend $1.2 billion of its total appropriation of $1.6B.

Mains over mains variance

The following table includes the 2019 to 2020 and 2021 to 2021 year over year variances.

Table 9: Predictable capital funding 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 Budget implementation vote 372.6 - (372.6)
Main Estimates - 589.3 589.3
Total Main Estimates budgetary expenditures table 9 note 1 372.6 589.3 216.8

Table 9 Notes

Table 9 Note 1

Totals may not add up due to rounding.

Return to table 9 note 1 referrer

Part of the funding will go toward the following projects

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 Columbia, 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 36 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 100% of the design completed for the dock extension project and other design (parking and warehouse) following later in 2020 and onward. Program funding will ensure delivery phase of the above-noted program of work can be completed by 2023.

Funding profile for current 5-year program of work

Table 10: The following table includes total funding per fiscal year (in millions of dollars)
Exercises 2019 to 2020 2020 to 2021 2021 to 2022 2022 to 2023 2023 to 2024 Total
Main Estimates (Budget implementation vote (BIV)—vote 35) 372.6 0 0 0 0 372.6
Main Estimates - 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 authorities 272.8 589.3 549.6 492.3 408.2 2,312.3
Notes
  • Totals may not add up due to rounding
  • In 2019 to 2020, $98.0 millions 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

Federal science strategy infrastructure initiatives

Program summary

Laboratories Canada is a 25-year strategy that is part of the Government of Canada’s plan to strengthen federal science nationwide. This strategy aims to provide federal scientists with leading-edge facilities, modernized information management and information technology (IM/IT) systems, greater access to common tools and reduced barriers to science and technology that facilitate collaboration.

The Government of Canada committed $2.8 billion over 5 years for the first phase of a Long Term Vision and Plan (LTVP) to build world-class, collaborative, accessible, and sustainable science facilities.

Many federal laboratories are outdated and some are unable to meet the operational needs of science programs and employees. The science and technology asset class encompasses approximately 3,500 buildings and a total floor area of 2.5 million m². The interim report for the fixed assets review indicates that the Government of Canada spent in the order of $350 millions (including operations and maintenance, capital, and payments in lieu of taxes) per year on average over the last 5 years on its assets and that the investment required for the entire portfolio would be $150 millions to $400 millions in incremental funding per year just to prevent deferred maintenance costs from increasing. Laboratories Canada phase 1 investments will replace ailing critical science infrastructure, and renew and build smaller to medium-sized collaborative facilities in Ontario, Quebec and Western Canada.

The first phase will support science program synergies such as:

Laboratories Canada is guided by a LTVP that details an integrated approach to building new federal laboratories and fostering the change necessary to amplify existing successful collaborative efforts. The vision is to create a “world-class national network of modern, multipurpose, federal S&T laboratories to support collaborative, multidisciplinary research and innovation, and evidence-based decision-making, including in regulatory responsibilities.”

Key messages

Funding profile

Table 11: The following table includes total funding per fiscal year (in millions of dollars)
Exercises 2018 to 2019 2019 to 2020 2020 to 2021 2021 to 2022 2022 to 2023 Total Ongoing
Main Estimates - - 101.1 246.9 242.7 590.8 4.1
Vote transfer 11.3 - - - - 11.3 -
Supplementary Estimates (A) - 97.1 - - - 97.1 -
Supplementary Estimates (B) (transfers) - (6.5) - - - (6.5) -
Supplementary Estimates (B) (transfers) - (53.3) - - - (53.3) -
Total authoritiestable 11 note 1 11.3 37.3 101.1 246.9 242.7 639.4 4.1

Table 11 Notes

Table 11 Note 1

Totals may not add up due to rounding.

Return to table 11 note 1 referrer

Mains over mains variance

Table 12: The following table includes 2019 to 2020 and 2021 to 2022 year over year variance (in millions of dollars)
Exercises 2019 to 2020 2020 to 2021 Year over year variance
Main Estimates - 101.1 101.1
Total Main Estimates budgetary expenditures table 12 note 1 0 101.1 101.1

Table 12 Notes

Table 12 Note 1

Totals may not add up due to rounding.

Return to table 12 note 1 referrer

Current status

The funding to be received in the Main Estimates will allow PSPC to advance the first phase as follows.

Horizontal governance

Laboratories Canada is guided by a horizontal and vertical, internal and external governance structure to ensure the successful delivery of the various projects through sound decision-making and interdepartmental collaboration. The Laboratories Canada Office, part of the Science and Parliamentary Infrastructure Branch within PSPC, is leading the integrated effort across government to deliver this strategy. The Laboratories Canada Office is working to advance a series of science outcomes, bringing together 13 science based departments and agencies (SBDAs) grouped in 5 science hubs. Science hub partners have collaborated and prepared comprehensive science plans based on their science synergies.

Within each science hub, a governance structure has been established at the deputy minister, assistant deputy minister and director general levels to ensure appropriate oversight, direction and decision-making for their respective science programs and outcomes.

Design and project delivery

Laboratories Canada has received project and expenditure approval for 3 projects:

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 phase 1 facilities. 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.

Construction will begin in fall 2020 on pre-identified sites in Mississauga and Hamilton, Ontario.

By end of fall 2020, functional programming for many phase 1 projects will be complete.

Site selection, engagement and change management

To identify the most suitable site locations for new facilities, a comprehensive methodology was developed in collaboration with science hubs. This evidence-based process served to identify sites, keeping science and scientists as primary drivers of any decision-making, while also considering real property and socio-economic factors.

Phase 1 sites have been identified, evaluated and were recently approved. This decision will initiate a detailed series of site-specific planning and engagement activities with key stakeholders over the coming weeks and months.

Information management/Information technology

Laboratories Canada and Shared Service Canada’s science program will define, develop and deploy the IT services required to deliver science outcomes. Work is underway to capture and validate detailed IM/IT requirements (basket of goods) as well as identify and implement pilot projects across the science community (experimentation and innovation).

Optimizing investments

Work is underway with federal department and agency partners to develop a new custodianship model and associated operating framework to fund and operate the facilities that support the long-term viability of these assets and avoid repeating the current costly rust-out. Laboratories Canada is also developing a federal science and technology portfolio strategy in partnership with TBS that will seek to leverage the greatest value possible from these facilities. This strategy will inform future investment decisions under the Laboratories Canada Long Term Vision and Plan.

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 Public Services and Procurement Canada (PSPC) has very little or no control (cost of rent, gas, electricity and the number of public servants to accommodate).

Mains over mains variance

Table 13: 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 and ongoing Year over year variance
Main Estimates 270.5 348.0 77.5
Total Main Estimates budgetary expenditurestable 13 note 1 270.5 348.0 77.5

Table 13 Notes

Table 13 Note 1

Totals may not add up due to rounding.

Return to table 13 note 1 referrer

The increase of $77.5 millions is for accommodation costs in order to protect PSPC from inflation and variations in space requirements for public servants (non-discretionary expenses) as follows:

Funding profile

Table 14: The following table includes total funding per fiscal year (in millions of dollars)
Exercises 2014 to 2015 2015 to 2016 2016 to 2017 2017 to 2018 2018 to 2019 2019 to 2020 2020 to 2021 and ongoing
Main Estimates 25.2 64.3 71.9 147.0 207.3 270.5 348.0
Supplementary Estimates - - - - - 0.9 -
Total authorities table 14 note 1 25.2 64.3 71.9 147.0 207.3 271.4 348.0

Table 14 Notes

Table 14 Note 1

Totals may not add up due to rounding.

Return to table 14 note 1 referrer

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:

Price and volume methodology

The current methodology used was approved in 2015 and is subject to a review on a 5-year cycle. The review, to be undertaken by the Treasury Board of Canada Secretariat, the Department of Finance 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 fiscal framework.

Formula considers
Reconciliation exercise

Compares the funding provided previously based on forecast to actuals, ensuring PSPC is not over/under funded.

Current status

This funding is included in the Gross Building special purpose allotment budget of $2.4 billion where PSPC is forecasting to spend within 98% by year-end.

[Redacted]

Les Terrasses de la Chaudière

Project summary

As announced in budget 2016, the funding received by Public Services and Procurement Canada (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 four 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 planning phase and is expected to proceed to construction in fall 2021. The envelope replacement project is part of a larger program of work to modernize the LTDLC Complex over the next decade. The program of work encompasses the following projects:

Of these projects, the parking garage project is currently in the final stages of construction with a planned completion date of December 2020. The remainder of the projects are in the planning and procurement stages.

Mains over mains variance

Table 15: 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 0 57.8 57.8
Total Main Estimates budgetary expenditures table 15 note 1 0 57.8 57.8

Table 15 Notes

Table 15 Note 1

Totals may not add up due to rounding.

Return to table 15 note 1 referrer

Current status

Funding profile

Table 16: The following table includes total funding per fiscal year (in millions of dollars)
Exercises 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 0 0 0 0 0 35.3
Total authorities table 16 note 1 35.3 57.8 59.8 62.0 25.2 0.1 240.2

Table 16 Notes

Table 16 Note 1

Totals may not add up due to rounding.

Return to table 16 note 1 referrer
Note

Funding profile as of November 2019. Delays due to COVID-19 are not yet known and not reflected.

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 contribute to the facility’s overall energy performance by 24%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 operations of the Supreme Court and federal courts and their employees during the rehabilitation of the Supreme Court of Canada Building (SCCB).

The project will update the WMB and fit-up to accommodate the daily operations of all tenant of the SCCB, who will occupy the WMB from 2023 to 2028.

This project includes upgrades to meet current building codes and conservation of important heritage characteristics while supporting the uninterrupted operations of the Supreme Court and federal judiciary.

The project includes:

Mains over mains variance

Table 17: 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 15.6 66.5 50.9
Total Main Estimates budgetary expenditurestable 17 note 1 15.6 66.5 50.9

Table 17 Notes

Table 17 Note 1

Totals may not add up due to rounding.

Return to table 17 note 1 referrer

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.

Current status

Funding profile for the phase 1

Table 18: The following table includes total funding per fiscal year (in millions of dollars)
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 - 13.9 15.6 66.5 89.3 81.0 77.9 344.2
Supplementary Estimates 1.1 - 22.1 - - - - 23.1
Total authoritiestable 18 note 1 1.1 13.9 37.7 66.5 89.3 81.0 77.9 367.3

Table 18 Notes

Table 18 Note 1

Totals may not add up due to rounding.

Return to table 18 note 1 referrer

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” federal heritage building in the existing crown-owned inventory and was selected as the ideal interim facility for the SCCB due to its’ location, size and prominence.

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 requires modernization and upgrades in order to meet building code requirements for occupancy.

[Redacted]

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.

Table 19: Funding profile (in millions of dollars)
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) sought access to a second interim supply of $2.1 billion in 2020 to 2021. The second interim supply bill provided 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 27th, 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.

2020 to 2021 is an exceptional fiscal year with unforeseen events that have impacted the normal estimates process.

Due to the impacts of the COVID-19 response on parliamentary business, the parliament introduced a second interim supply for the current fiscal year which was concurred in by the Committee of the Whole (COW) on June 17th, 2020. The second interim supply provided the department with sufficient cash to sustain operations until the tabling of the full supply expected in December 2020.

In addition, the parliament was prorogued on August 18, 2020 and recalled on September 23, 2020. As a result of this prorogation, 2020 to 2021 Main Estimates were re-tabled in parliament on September 30, 2020 and will be voted toward the end of November 2020.

2020 to 2021 first interim supply

The first interim supply for 2020 to 2021 was tabled on March 13th, 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 (four twelfths for operating expenditures), $396.8 million in vote 5 (three twelfths for capital expenditures), and $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 was concurred in by the COW on June 17th, 2020. PSPC received $2.1 billion as follows:

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