Mandate letter: Standing Committee on Government Operations and Estimates—March 4, 2022

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Continue to procure COVID-19 therapeutics tests and vaccines

Mandate commitment

Continue to procure COVID-19 therapeutics, tests and vaccines, for adults and children, to ensure all Canadians have access to free booster shots and second-generation vaccines as needed.

This commitment will be considered as met to the extent that the government has procured and secured delivery of sufficient quantities of therapeutics, tests and vaccines to address Canada's need to combat COVID-19.

This commitment is a continuation of the previous mandate letter.

Key messages

• Public Services and Procurement Canada (PSPC) has procured a robust portfolio of COVID-19 vaccines and Canada has doses on hand to meet demand and steady access of mRNA vaccines until end of 2023, including to the newest and latest vaccine formulations, with options to extend to end of 2024
• PSPC has procured rapid tests to enable the reopening of the economy, schools and other industries, and is working with suppliers on a procurement plan to ramp up capacity
• PSPC has succeeded in procuring a portfolio of the most recent and promising therapeutics and is in negotiation for other leading edge therapeutics

Facts and figures

• As of February 2022:
  • Canada has received 118.5 million vaccine doses
  • 530 million rapid tests have been procured from 15 suppliers
  • PSPC has been able to secure orders for more than 1.7 million treatment courses for use in Canada of 9 different therapeutics, including 1.5 million treatments of the highly effective Paxlovid therapeutic

Next steps

• Support the Public Health Agency of Canada (PHAC) to ensure that Canada's vaccine supply continues to protect Canadians in response to evolving needs
• Manage vaccine and test suppliers in achieving agreed upon delivery schedules and targets
• Continue to manage a portfolio of procurements for therapeutics, based on requirements identified by PHAC, and work with suppliers to seek earliest deliveries
• Support PHAC by developing and implementing new border testing models
• Secure and support long term rapid test purchases and ramp up of self testing

Modernize procurement practice

Mandate commitment

Continue the modernization of procurement practices so they support Canada’s economic policy goals, including balanced procurement opportunities with Canada’s trading partners, provide value for money, are open and transparent and require suppliers of goods and services to apply the highest ethical and sustainability standards across their supply chains.

This commitment will be considered as met to the extent that the government has developed a reciprocal procurement policy; established a new Vendor Performance Management Framework; and developed a new ethical procurement policy.

This commitment is a continuation of the previous mandate letter.

Key messages

• As part of my mandate commitment, we are working to modernize and simplify procurement
• Our goal is to make procurement easier, faster, and more accessible for suppliers, particularly for Indigenous peoples and those from underrepresented groups
• As part of these efforts, we are implementing easy, web-based access to procurement services that, once fully deployed, will help make it easier for suppliers find and bid on opportunities. We are also providing support to current and prospective bidders through Procurement Assistance Canada
• In addition, we are going to streamline and simplify our processes by modernizing the structure of our contracts

Facts and figures

• Budget 2021 provided $87.4 million over 5 years, and $18.6 million ongoing for procurement modernization and supplier diversity initiatives

Next steps

Procurement modernization includes the following initiatives:

• the contract modernization initiative aims to streamline contracting policies and directives by modernizing the structure of government contracts and by simplifying the contracting process
• the Vendor Performance Management Policy will establish a standardized approach for assessing vendor performance and informing future bid evaluations. This will strengthen Canada’s relationship with its suppliers, which will result in an enhanced stewardship of resources for Canadians
• in March 2020, Public Services and Procurement Canada soft launched Canada Buys, our new electronic procurement system (announced in Budget 2018, at a cost of $196.8 million over 5 years). It provides easy, web-based access to procurement services that, once fully deployed, will make procurement simpler, faster and easier for suppliers to find and bid on opportunities. This solution will also improve the management of procurement spending, increase efficiency and allow access to better procurement data
• finally, Public Services and Procurement Canada also established, in 2018, the Accessible Procurement Resource Centre (APRC) to support government buyers in integrating accessibility criteria into their procurement requirements for goods and services. Ongoing work includes ensuring that the procurement process is accessible and that barriers to the participation of persons with disabilities in the procurement process are removed or reduced

Introduce legislation to eradicate forced labour

Mandate commitment

To ensure that a whole-of-government approach is taken, support the Minister of Labour in introducing legislation to eradicate forced labour from Canadian supply chains and ensure Canadian businesses operating abroad do not contribute to human rights abuses.

This commitment will be considered to be met when the legislation has been introduced.

This is a new mandate letter commitment.

Key messages

• Public Services and Procurement Canada will support legislative development through research, analysis and knowledge sharing regarding public procurement
• PSPC will also provide input with a view to ensuring that legislation:
  • takes into consideration public procurement processes and priorities
  • aligns with the department’s human and labour rights expectations and existing efforts to safeguard federal supply chains
  • leverages public procurement to encourage vendors to abide by new legislative requirements

Next steps

• Employment and Social Development Canada is the lead department on the development of the legislation, and PSPC is ready to support legislative development by means of research, analysis and knowledge sharing regarding public procurement

Increase the diversity of bidders on government contracts

Mandate commitment

Continue to advance government-wide initiatives to increase the diversity of bidders on government contracts, including small businesses and businesses led by Indigenous peoples, Black and racialized Canadians, women, lesbian, gay, bisexual, transgender, queer and two-spirit (LGBTQ2) Canadians and other under-represented groups.

This commitment will be considered as met when the diversity of bidders on PSPC procurements has been increased and government-wide social procurement initiatives have been established.

This commitment is a continuation of the previous mandate letter.

Key messages

• The Government of Canada continues to modernize procurement practices to reduce barriers to the participation of under-represented groups in federal procurement
• This year, we launched a supplier diversity action plan following engagement with underrepresented groups, which outlines concrete steps to increase their participation
• It includes enhanced services, delivered through Procurement Assistance Canada, to help underrepresented groups successfully participate in federal procurement
• In addition, we are testing and refining new procurement approaches to level the playing field for specific groups. For example, we launched a Black businesses procurement pilot to expand bidding opportunities for small Black-owned or operated businesses across Canada for various goods and services

Key data points

• Budget 2021 proposed $87.4 million over 5 years, and $18.6 million ongoing, to modernize federal procurement and to create opportunities for specific communities such as Indigenous peoples, women, LGBTQ2+ Canadians, racialized Canadians, and young people

Next steps

• The department will consult with industry and equity-deserving groups on its social procurement program and the Black Entrepreneurship Procurement Program to seek feedback and comments from stakeholders
• It will also formally launch a coaching service for under-represented suppliers
• It will create a task force aimed at addressing unconscious bias in federal procurement processes and outcomes
• The department will also continue improving accessibility of PSPC’s procurement processes and documents, and ensure that goods and services purchased by PSPC are accessible including through the development of tools and training

Create a minimum 5% target for contracts with Indigenous businesses

Mandate commitment

Lead the implementation of the requirement for federal departments and agencies to ensure a minimum of 5% of the total value of federal contracts are held by Indigenous businesses.

This commitment will be considered as met once departments and agencies have achieved the mandatory minimum target of 5% of the value of federal contracts to Indigenous businesses.

This commitment is a continuation of the previous mandate letter.

Key messages

• The Government of Canada has continued to work towards increased participation of businesses owned or led by Indigenous peoples in procurement processes
• Broader consultations and engagement with Indigenous partners are underway to advance this work, which have provided feedback on key policy and implementation elements to achieve the target of at least 5% of contracts awarded to Indigenous businesses
• Concurrently, we are seeking to maximize Indigenous opportunities in our procurements wherever possible. For example, in 2020 to 2021:
  • extensive engagement took place to ensure optimal Indigenous participation in requests for proposals for large contracts, such as the north warning system sustainment
  • as part of the COVID-19 response, PSPC awarded 40 contracts to 31 self-identified Indigenous businesses, collectively worth approximately $131 million for commodities

Fact and figures

• Over the last 3 fiscal years, Public Services and Procurement Canada has awarded an annual average of $442 million through 1,422 contracts to Indigenous suppliers

Next steps

• We are working with Indigenous Services Canada and the Treasury Board of Canada Secretariat to have at least 5% of the value of federal contracts awarded to Indigenous businesses
• PSPC will continue to support departments and agencies in implementing strategies to increase the participation of Indigenous businesses in federal contracting, including through Indigenous participation plans (sub-contracts, employment and training)
• Additionally, the Government of Canada will continue to:
  • create government-wide procedures and tools to implement the target
  • expand and improve existing guidance on how to apply the Procurement Strategy for Indigenous Business (PSIB)
  • implement mandatory public reporting
  • develop a transformative Indigenous procurement strategy in consultation and collaboration with Indigenous organizations

Strengthen federal procurement practices and support procurement of Canadian clean technology

Mandate commitment

Strengthen federal procurement practices to prioritize reusable and recyclable products in support of our goal of zero plastic waste and work with the minister of Innovation, Science and Industry to support procurement of Canadian clean technology.

This commitment will be considered as met when the government has taken major steps to prioritize reusable and recyclable products in support of our goal of zero plastic waste and work with the minister of Innovation, Science and Industry to support procurement of Canadian clean technology. Additionally, tools and guidance are available to prioritize reusable and recyclable plastics and Canadian clean technologies are available to the procurement community, including contracting authorities and clients.

This commitment is a continuation of the previous mandate letter.

Key messages

• PSPC is leveraging clean technologies to achieve greening government targets, such as current work underway to reduce emissions associated with office buildings in the national capital region through an efficient and innovative centralized heating and cooling system
• In addition, PSPC is working with the Treasury Board of Canada Secretariat to coordinate participation of all government departments initiatives to procure 100% clean electricity where available by 2022
• PSPC is also committed to being a first purchaser to help support the growth of new clean electricity/renewable power sources as they become available. To that end, PSPC developed procurement tools for new clean electricity in Alberta including the purchase of renewable energy certificates and worked directly with provinces and energy suppliers in Saskatchewan, Nova Scotia and New Brunswick as a first purchaser of clean electricity
• On plastics, PSPC is implementing the Real Property Plastics Action Plan to reduce the use of plastic in construction projects, government buildings and leases

Next steps

In keeping with its commitments under the Treasury Board Secretariat (TBS)-led Greening Government Strategy, the department will continue to advance against the activities identified above, while also exploring new and innovative ways to make additional progress to reduce plastic waste and enhance the use of clean electricity.

Introduce a new buy clean strategy

Mandate commitment

Work with the minister of Intergovernmental Affairs, Infrastructure and Communities and the minister of Natural Resources to introduce a new buy clean strategy to support and prioritize the use of made-in-Canada low-carbon products in Canadian infrastructure projects.

This commitment will be considered as met when the government has introduced a new buy clean strategy which supports and prioritizes the use of made-in-Canada low-carbon products in Canadian infrastructure projects.

This is a new mandate letter commitment.

Key messages

• We are still in early days on this commitment. PSPC is working with TBS Centre for Greening Government, National Resources Canada (NRCan), Housing, Infrastructure and Communities Canada, Innovation, Science and Economic Development (ISED) and the National Research Council (NRC) to develop a buy clean strategy for Canada infrastructure projects
• In support of greening our procurements and operations, a feasibility analysis report for reducing plastics in the workplace has been completed and a strategy has been developed to incorporate climate change vulnerability assessments into asset management planning
• As well, PSPC is working with the Treasury Board of Canada Secretariat Centre for Greening Government to evaluate potential opportunities for the use of low-carbon cement in our infrastructure and real property projects

Next steps

• Provide real property expertise to the intergovernmental committee tasked with delivering a buy clean strategy for Canadian infrastructure projects
• Implement a dedicated team to support PSPC and other departments infrastructure projects targeting climate action
• Identify projects within PSPC to be early adopters of low-carbon concrete design
• Incorporate mandatory low-carbon concrete in project specification for early adopter projects
• Review and pilot proposed Government of Canada approaches for accelerating a buy clean strategy in infrastructure projects
• Develop mandatory requirements and performance specifications to promote the use of low-carbon products in PSPC infrastructure projects
• Conduct research and consultation to explore Canadian made furniture products and opportunities to further advance sustainability criteria. Canadian-made furniture can be prioritized in order to contribute to sustainability targets

Renew the Canadian Coast Guard and the Royal Canadian Navy fleets

Mandate commitment

Continue working with the minister of Fisheries, Oceans and the Canadian Coast Guard (CCG) and the minister of National Defence, with the support of the minister of Innovation, Science and Industry, to renew the fleets of the Canadian Coast Guard and Royal Canadian Navy (RCN), advance the shipbuilding industry, including the process to add a third Canadian shipyard as a strategic partner to the National Shipbuilding Strategy (NSS), create middle class jobs and ensure Canada has the modern ships needed.

This long-term commitment is a continuation of the previous mandate letter.

Key messages

• The National Shipbuilding Strategy is a long-term investment that is delivering ships for the Navy and the Canadian Coast Guard, and jobs and economic growth for Canada
• So far, 5 large vessels have been delivered, and many more are under construction across Canada
  • all 3 offshore fisheries science vessels have been delivered to the Canadian Coast Guard, marking the completion of the first class of large ships built under the National Shipbuilding Strategy
  • 2 Arctic and offshore patrol ships were delivered and accepted by the Royal Canadian Navy
• Construction and delivery of small vessels is also underway. Major deliveries of small vessels include:
  • 7 hydrographic survey vessels
  • 2 channel survey and sounding vessels
  • 10 search and rescue lifeboats
  • acquisition of 3 medium commercial icebreakers
• The Government of Canada remains committed to selecting a third shipyard under the National Shipbuilding Strategy to support delivering on the Canadian Coast Guard’s fleet renewal plan
• The third yard will build 6 program icebreakers and 1 polar icebreaker for the Canadian Coast Guard

Facts and figures

• From 2012 to 2021, NSS contracts totalled approximately $21.07 billion in NSS contracts
• Of these, $975.93 million went to small businesses with less than 250 full-time employees
• Contracts are estimated to contribute over $20.07 billion ($1.82 billion annually) to Canada’s gross domestic product (GDP), and create or maintain more than 16,931 jobs annually, through the marine industry and its Canadian suppliers

Next steps

• Upon successful completion of the selection process, enter into an umbrella agreement with a third Canadian shipyard to build large ships under the National Shipbuilding Strategy
• Award implementation contract (or advanced definition) for the Canadian Surface Combatant Project
• Award construction engineering and long lead items contracts for both the multi-purpose vessels and the polar icebreaker to be built by Vancouver Shipyards for the Canadian Coast Guard
• Continued implementation of already approved large and small build programs

Ensure the ongoing delivery of defence procurements

Mandate commitment

Ensure the ongoing delivery of defence procurements in support of Canada’s Defence policy: Strong, Secure, Engaged.

This is a long-term commitment that will continue to ensure the ongoing delivery of defence procurements in support of Canada's Defence policy: Strong, Secure, Engaged.

This commitment is a continuation of the previous mandate letter.

Key messages

• PSPC has made important progress in advancing key defence procurements
• In particular, we are nearing the completion of the competitive process to replace Canada's CF-18 fighter jets and we are receiving deliveries of fixed wing search and rescue aircraft, armoured combat support vehicles

Facts and figures

• Canada has accepted 9 of the 16 fixed wing search and rescue aircraft that were acquired and 4 of the 9 have been delivered to Canada
• 58 of 360 armoured combat support vehicles have been received

Next steps

• Select the preferred future fighter jets bidder and prepare for the initiation of the implementation phase
• Release a directed request for proposal for the Strategic Tanker Transport Capability (STTC) Project/ late winter/early spring 2022

Eliminate pay backlog and advance next generation pay and human resources system

Mandate commitment

Work with the president of the Treasury Board to resolve outstanding Phoenix pay system issues for public servants once and for all, while advancing work through Shared Services Canada on the next generation pay and human resources system.

This commitment will be considered as met once:

• the pay backlog has been eliminated and steps have been taken to ensure employees are paid accurately and in a timely manner
• next generation (NextGen) human resources (HR) and pay has provided recommendations for a selection of a human resources and pay solution

This commitment is a continuation of the previous mandate letter.

Key messages

• We continue to stabilize the current pay system while exploring a solution that meets the complex needs of the Government of Canada now and into the future
• PSPC achieved considerable progress in eliminating the backlog of outstanding pay issues for public servants. The department also improved its performance in meeting service standards and implemented new collective agreements
• NextGen HR and pay initiative has completed the exploratory phase and is now in the design and experimentation phase. The initiative continues to conduct research to provide a recommendation for an enterprise HR and pay solution and operating model

Facts and figures

• As of February 16, 2022, the backlog of financial transactions beyond the normal workload has decreased by 64%, representing a reduction of 245,000 transactions, from 384,000 to 139,000, since the peak of January 2018. Over the same period of time, the overall queue of transactions waiting to be processed at the Pay Centre has decreased by 49%, representing a reduction of 311,000 transactions, from 633,000 to 322,000
• The Pay Centre met service standards for new pay transactions 80% of the time in 2021, compared to 72% on average in 2020, and 57% on average over 2018 to 2019
• We prioritize cases that can have a large impact on an employee’s pay, for example, parental and disability leaves were processed within service standards 99% of the time, on average in 2021
• PSPC has processed close to $2.5 billion in collective agreement retroactive payments to employees for the 2014 round, and over $1.8 billion in collective agreement retroactive payments to employees to date for the 2018 round
• Contrary to the situation immediately following the implementation of Phoenix, today very few serious pay issues (no-pay and low-pay) are being reported for escalation (only about 1.1% of escalated cases to date in 2021)
• A NextGen HR and Pay fit-gap analysis has been completed to identify whether the solution being tested aligns with the functional requirements. Out of 555 business requirements for HR and Pay, only 55 gaps have been identified

Next steps

• Continue to implement the next phase of the Backlog Reduction Strategy, which will address the remaining, more complex cases in the backlog. We are optimizing our workforce to maximize production by minimizing training to accelerate our progress towards targets
• Continue to transform ways of working at the Pay Centre, under the accelerator contract, and expand it to the other teams of pay processors as part of a 3-year plan to increase productivity and improve quality by fall 2022
• Continue to test potential NextGen HR and pay solutions with select departments that represent a spectrum of Government of Canada needs
• Consolidate findings from NextGen HR and pay testing to inform a final recommendations report and implementation plan in 2023

Advance work to rehabilitate and reinvigorate places and buildings of national significance

Mandate commitment

Advance work to rehabilitate and reinvigorate places and buildings of national significance under the responsibility of the National Capital Commission (NCC) and Public Services and Procurement Canada.

This commitment will be considered as met when all work on buildings within the scope of this commitment are completed and funding for building maintenance is secured. Additionally, the NCC will have adequately addressed the deferred maintenance of the official residences within its portfolio, as well as meet accessibility and sustainability requirements.

This is a new mandate letter commitment.

Key messages

• The Government of Canada is restoring and renewing heritage sites, while supporting sustainability and ensuring the health and safety of Canadians. Ongoing work in this area includes :
  • Lester B. Pearson Building
  • The Centre Block
  • The Supreme Court of Canada Building
  • The West Memorial Building rehabilitation
• In addition, within available budgets, the Government of Canada has made essential repairs to some of the Official Residences

Facts and figures

• The Government of Canada has invested approximately $4.2 billion in the Parliamentary Precinct. This has created over 60,000 jobs in engineering, architecture, construction, manufacturing and skilled trades
• 90% of the work delivered through the Long-Term Vision and Plan (LTVP) will flow to small and medium enterprises across Canada, with 5% of work to be carried out by Indigenous firms
• As of 2020 to 2021, PSPC had successfully reduced greenhouse gas (GHG) emissions in the Parliamentary Precinct by 66% compared to the 2005 to 2006 baseline—exceeding the 2025 target of 40%, on track for reductions of 95% by 2040

Next steps

• Advance work on the following rehabilitation projects:
  • Lester B. Pearson Tower A, B and C
  • Supreme Court of Canada Building
  • phase 2 of the West Memorial Building
  • Memorial colonnade
  • National Printing Bureau (45 Sacré-Coeur)
  • Connaught Building (555 Mackenzie avenue)
• Transform the Parliamentary Precinct into an integrated parliamentary campus by completing an update to the LTVP
• Advance major construction activities on the historic restoration of the Centre Block
• Continue work towards reaching an agreement with the Algonquin Nation and National Indigenous Organization on the Indigenous Peoples’ Space in order to re-initiate the planning and design phase
• Secure funding to address official residences under the National Capital Commission portfolio

Improve crossings in the National Capital Region

Mandate commitment

Continue to improve crossings in the National Capital Region, moving forward with Budget 2019 commitments to replace the Alexandra Bridge, addressing the demonstrated need for an additional National Capital Region crossing with the Long-Term Integrated Interprovincial Crossings Plan led by the National Capital Commission, and investing to rehabilitate and maintain existing crossings, including the Chaudière and Macdonald-Cartier bridges.

The commitment will be completed with the replacement of the Alexandra Bridge, ongoing efforts to maintain other bridges, the advancement of assessments and planning associated with a sixth crossing and once decisions are made regarding the financial support to the Ministère des Transports du Québec (MTQ) for the construction of a tram from Gatineau to Ottawa.

This commitment is a continuation of the previous mandate letter.

Key messages

• The NCC has completed a Long-term Integrated Interprovincial Crossing Plan, in collaboration with partnering agencies, to establish a shared long-term vision and strategies for interprovincial transportation of people and goods in the National Capital Region to 2050
• The Long-Term Integrated Interprovincial Crossing Plan will serve to inform decisions around regional transportation in ways that are sustainable, equitable, environmentally sensitive and work towards creating a more liveable and prosperous National Capital Region
• The Government of Canada is also advancing its work to replace the aging Alexandra Bridge, and to support the ongoing maintenance of the region's interprovincial bridges. Engagement, including with Indigenous partners and other key stakeholders for the bridge replacement project, began in November 2020 and is ongoing
• At the municipal level, the NCC is engaged in the Ottawa Light Rail Transit Project (Confederation line, western extension and Trillium line), and more recently, the interprovincial tramway proposal by the Société de Transport de l‘Outaouais (STO), linking Gatineau with Ottawa

Facts and figures

• From the May 2020 federal government investment of $173.6 million allocated to the NCC to address health and safety issues and to rehabilitate the NCC’s interprovincial bridges, the NCC is projecting in 2022 to 2023 to spend $1.5 million on the Champlain Bridge and $8.1 million on the Portage Bridge

Next steps

• Complete structural steel repairs of Alexandra Bridge
• Complete strengthening work of Macdonald Cartier Bridge
• Release of the request for interest (RFI) with the private sector for the Alexandra Bridge Boardwalk project spring 2023
• Widen Hull Causeway for users and reinforce the structural steel on Union Bridge (Chaudière Crossing) spring 2023

Ensure that Canada Post provides high-quality service

Mandate commitment

Ensure that Canada Post provides the high-quality service that Canadians expect at a reasonable price and better reaches Canadians in rural and remote areas. You will be supported in this work by the minister of Rural Economic Development.

This commitment is a continuation of the previous mandate letter.

Key messages

• As is the case with other postal carriers around the world, Canada Post must evolve to meet the changing customer needs and expectations
• Our experience during COVID-19 underscored just how important Canada Post is as Canadians relied heavily on this essential service
• The government is planning to consult Canadians to seek their updated views and expectations for Canada Post in light of the continued growth in e-commerce, the COVID-19 pandemic, as well as Canada Post's financial situation
• This consultation with Canadians will allow the government to fulfill its commitment to review the Canadian Postal Service Charter, which is to be done every 5 years (due next in 2023)

Facts and figures

• Canada Post delivers more than 6 billion pieces of mail, parcels, and messages to almost 17 million addresses across Canada annually

Next steps

• Consultation process with Canadians (2022)
• Canadian Postal Service Charter reviewed by 2023

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