Shared Services Canada: 2022 to 2023 Main Estimates overview: Standing Committee on Government Operations and Estimates—April 29, 2022
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Shared Services Canada (SSC) is seeking an increase of $710.8 million (vote 1: $558.5 million; vote 5 $129.3 million; statutory $23.0 million) as compared to last year’s Main Estimates.
As shown in SSC’s Departmental Plan, SSC’s available funding for 2022 to 2023 will be $2.62 billion ($2.16 billion in vote 1, $339.3 million in vote 5 and $117.7 in statutory), net of $787.1 million in revenue.
The overall increase of $710.8 million is due to: an increase of $541.2 million in new funding, $158.6 million in transfers, $29.6 million in reprofiles; offset by a decrease in various time limited initiatives of ($41.6 million); and a $23.0 million increase in statutory (employee benefit plans).
The main contributors to the increase are: the transfer related to the department’s implementation of the Government of Canada (GC) Information Technology (IT) Enterprise Service Model (ESM), as well as initiatives from Budget 2021, including the Workload Modernization and Migration Program, IT Repair and Replacement Program and the Secure Cloud Enablement and Defence Evolution and Departmental Connectivity and Monitoring initiative.
New funding: $541.2 million increase
A total of $166.9 million to support the Workload Modernization and Migration Program from Budget 2021. The funding will enable secure and stable hosting solutions for the Government of Canada (GC) IT infrastructure, and therefore, support GC digital operations through the Workload Modernization and Migration Program's goal of migrating existing workloads off of aging IT infrastructure and into more modern hosting solutions, such as the cloud or enterprise data centres
A total of $97.5 million for the IT Repair and Replacement Program from Budget 2021. This funding will improve planning, proactively address the GC’s outdated IT equipment and strengthen the GC’s abilities to adapt to rapidly changing digital requirements and prevent system failures and service outages.
A total of $79.2 million for the secure cloud enablement and defence (SCED) evolution and departmental connectivity and monitoring initiative from Budget 2021 to enhance the reliability and security of GC IT networks. This funding will support the secure cloud to ground operational activities and thereby support SSC in delivering up to Protected B secure cloud connectivity to partner departments
A total of $63.2 million for the next generation (NextGen) human resources (HR) and pay solution. This funding (off cycle Budget 2019) will enable the NextGen team to carry out test pilots to assess the complexity of the government’s HR and pay requirements, as well as to conduct a feasibility study to identify the resources and level of effort to transition from Phoenix.
A total of $47.3 million for core IT services. This includes funding to cover the costs associated with onboarding new full-time equivalents (FTE) in the GC, as well as funding in support of partner-led initiatives.
A total of $37.6 million for 2 cyber and IT security initiatives. This funding is for the implementation of the endpoint visibility, awareness and security project (Budget 2018) and also for the internal credential authentication service (from the fall economic statement 2017).
A total of $31.2 million for 2 cyber and IT security initiatives. This funding, from Budget 2018, will be used to support the GC secret infrastructure (GCSI) expansion project to implement a secure, reliable, highly available, and cost effective solution for GC classified information, and also for the expanded small departments and agencies (SDA) study to further analyze the connectivity of SDAs to SSC-managed internet and cloud access.
A total of $19.2 million for newly signed collective agreements.
A total of $0.1 million for the implementation of the comprehensive Employee Benefit Plan (EBP) rate of 27% for legal services.
A total decrease of ($1.0 million) from Budget 2021, reduction in operating budgets, as travel costs have decreased due to a greater reliance on digital and virtual interaction.
Net transfers between government departments: $158.6 million increase
A total increase of $158.8 million related to the department’s implementation of the GC IT Enterprise Service Model (ESM).
A total increase of $2.4 million from Public Services and Procurement Canada for the reimbursement related to reduced accommodation requirements as a result of data centre consolidations.
An total increase of $0.2 million from Correctional Services Canada related to the administrative services review.
A total decrease of ($2.8 million) for realignment within vote 1 of funding from operating to personnel to support human resources requirements within the department.
A total decrease of ($0.04 million) to Treasury Board Secretariat (TBS) for the following:
- a decrease of ($0.02 million) for the Greening Government Fund which has been established as part of the GC’s response to climate change
- a decrease of ($0.02 million) for the Office of the Comptroller General Financial Community Developmental Programs and the inclusion, diversity, equity and accessibility initiative
Reprofiles: $29.6 million increase
The pandemic impacted procurement and suppliers’ efforts to meet demand for IT goods and services. The following initiatives experienced delays mainly brought on by the pandemic and therefore requested reprofiles from fiscal year 2020 to 2021 to 2022 to 2023:
- a total of $24.3 million for mission critical projects (fall economic statement 2017)
- a total of $2.6 million for the secure communications for national leadership project
In addition, a total of $2.7 million was reprofiled for the Innovation Solutions Canada Procurement Program, which promotes the development and adoption of innovative technologies in Canada
Other adjustments: ($41.6 million) decrease
A number of adjustments totalling ($41.6 million) relate to multi-year initiatives and/or projects where funding profiles changed. The breakdown of the adjustments by initiative/project is:
- a total increase of $20.4 million for mission critical projects (fall economic statement 2017)
- a total decrease of ($44.1 million) for the Workload Migration and Cloud Architecture Program (Budget 2018)
- a net decrease of ($17.9 million) for various projects and initiatives
Statutory appropriations: $23 million increase
$23 million in statutory appropriations for contribution to the employee benefit plans.
Nil impact items
Vote-Netted Revenue (VNR):
- an increase of $285.0 million in VNR authority due to continued increase in demand from customers for SSC’s services
- a decrease of ($162.9 million) in VNR authority due to the implementation of the GC IT ESM. Partner departments will no longer be invoiced for certain enterprise services