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Standing Committee on Government Operations and Estimates: November 28, 2023

Supplementary Estimates B

Date: Tuesday November 28, 2023—3:30 to 5:30 pm

Location: In person

On this page

General items

Opening statement

By: The Honourable Jean-Yves Duclos

Minister of Public Services and Procurement Canada (PSPC)

Standing Committee on Government Operations and Estimates

Supplementary Estimates (B)

November 28, 2023

(Word count: 760 words, approx. 5 minutes)

Good afternoon, Mr. Chair.

Let me begin by acknowledging that we are gathered on the unceded territory of the Algonquin Anishinaabeg peoples.

With me today are:

I am pleased to be here to discuss Supplementary Estimates (B) for PSPC and SSC.

To support our activities, we are requesting access to additional funding of $229 million dollars for PSPC and $53.2 million dollars for SSC through Supplementary Estimates B.

Specifically, Mr. Chair, as part of our request, PSPC is seeking access to $175.1 million to implement several critical infrastructure projects.

The majority of those funds will be used to advance our Long-Term Vision and Plan for the Parliamentary Precinct, including the purchase of the 181 Queen Street building and the ongoing rehabilitation of Centre Block.

Mr. Chair, on the topic of government infrastructure, 1 of my top priorities is to increase the housing supply in this country by accelerating the disposal of surplus federal property. To do this, PSPC works with many federal partners, including the Canada Lands Company, which is also under my portfolio.

By the end of this fiscal year alone, by repurposing surplus federal property, the Government through the Canada Lands Company will enable the construction of an additional 2,800 housing units across the country with a minimum of 300 units set aside for affordable housing.

And over the next 5 years, we are projecting to enable more than 26,000 units on surplus properties, with a minimum of 20% set aside for affordable units.

We will continue to explore ways to further identify surplus federal assets that have the potential to become housing for Canadians.

Mr. Chair, going back to Supplementary Estimates B, PSPC is also seeking access to $26.9 million to advance the Laboratories Canada strategy. This is our long-term plan to create world-class science research centres across the country.

In addition, PSPC is seeking $28.6 million to expand and support our e-Procurement Solution, which is bringing more Government procurement processes online—making them easier and more accessible, and helping us to achieve broader socio-economic objectives such as supplier diversity.

Mr. Chair, while we continue to wind down COVID-19 spending, PSPC is also requesting $7.3 million, which will be used for storage and logistics of Mobile Health Units, and their divestment.

PSPC procured these mobile health units early on in the pandemic, so that if hospital capacity became overwhelmed, we would be ready to provide assistance.

Following the success of Canada’s vaccination strategy, thankfully, there is a decreased demand for these units. Now, we are working with government partners to seek out best methods of divestment for these units, as well as other surplus equipment, in the best interests of the Crown and Canadians.

Mr. Chair these are a few of the priorities for which we are seeking funds for PSPC though Supplementary Estimates B.

Like PSPC, SSC plays a vital role in supporting government priorities, providing modern, reliable and secure information technology infrastructure and digital delivery of programs and services.

SSC’s request is for an increase of $53.2 million of its available funding, to a total of $2.82 billion, in the Supplementary Estimates B.

The increase includes new funding of $43.6 million for information technology (IT) services, as well as reprofiled funding from fiscal year 2022 to 2023, totalling $10.9 million.

It also includes statutory appropriations for Employee Benefit Plan adjustments, totalling $5.5 million, and transfers with other government departments, totalling a decrease of $6.8 million.

The bulk of the increase for new IT services stems from $33.9 million for the Next Generation Human Resources and Pay Initiative from Budget 2023.

This funding will support the ongoing exploration and testing of potential human resources (HR) and pay solutions, and ultimately, recommendations for a modern and flexible system that meets the needs of the Government of Canada.

Mr. Chair, these are only some of the important initiatives happening under my diverse portfolio. I am pleased to answer your questions, and I look forward to working with this Committee.

Thank you.

Public Services and Procurement Canada 2023 to 2024 Supplementary Estimates (B) overview

PSPC is seeking a net increase of $229 million Footnote 1 through Supplementary Estimates (B), increasing its available funding from $4,863 million to $5,092 million net of revenues.

Tableau 1 : Items sought in 2023 to 2024 Supplementary Estimates (B)
Item Amount (in millions)
Voted Appropriations
Funding for capital investments $175.1
Funding for the Federal Sciences and Technology Infrastructure Initiative (Budget 2023) $26.9
Funding for the operating costs of the Electronic Procurement Solution (Budget 2023) $17.3
Funding for the Electronic Procurement Solution $11.3
Funding to provide supplies for the health system $7.3
Funding to support a renewed Canadian Drugs and Substances Strategy (Budget 2023) (horizontal item) $0.4
Funding to authorize the amendment to the Revolving Funds Act for the Optional Services Revolving Fund (shown as 1 dollar) $0.0table 1 note 1
Statutory Appropriations
Employee Benefit Plans $2.7
Transfers From Other Organizations
From the Treasury Board Secretariat (TBS) to various organizations to support projects which will reduce greenhouse gas emissions in federal government operations $1.5
From National Research Council of Canada (NRC) to the Department of Public Works and Government Services for the Federal Sciences and Technology Infrastructure Initiative $1.5
Transfers To Other Organizations
From various organizations to the TBS for financial community developmental programs and initiatives (10K) (negative $0.0)table 1 note 1
From various organizations to the Department of Foreign Affairs, Trade and Development to support departmental staff located at missions abroad (negative $0.2)
From the Department of Public Works and Government Services to TBS in support of the Government of Canada’s Digital Ambition (negative $1.5)
From the Correctional Service of Canada, Department of National Defence (DND), Department of Public Works and Government Services, Department of the Environment and Department of Transport to the Department of Agriculture and Agri-Food, Department of Crown-Indigenous Relations and Northern Affairs (CIRNAC), Department of Indigenous Services (ISC) and Via Rail Canada Inc. for the Federal Contaminated Sites Action Plan (negative $3.8)
From the Department of Public Works and Government Services to the Canadian Food Inspection Agency related to the Sidney Centre for Plant Health in support of the Laboratories Canada Strategy (negative $10.0)
Total $228.5

Table 1 Note

Table 1 Note 1

Amounts show as $0.0 when rounded to the nearest million. See below for actual amounts to the dollar.

Return to table 1 note 1 referrer

Voted appropriations: $238.3 million increase

Funding for capital investments

$175,073,435

Purpose of funding

Reprofile and reversed reprofile of capital funding in order to assist the department in the delivery of critical infrastructure projects that provide services to Canadians. Based on the current status of the Investment Plan and related project forecasts, adjustment to the annual funding requirements (cash only) is necessary to closely align with the current revised timelines for program and project development, and project delivery. These critical infrastructure investments are in accordance with the approved long term portfolio plan.

Funding for the Federal Sciences and Technology Infrastructure Initiative (Budget 2023)

$26,948,069

Purpose of funding

The Laboratories Canada strategy (previously referred to as the Federal Science and Technology Infrastructure Initiative) was established in 2018 as a 25-year initiative to be delivered in phases, to renew federal laboratories and support a collaborative approach to conducting science and technology. Budget 2018 outlined $2.8 billion largely in capital funding, with additional funding being granted in Budget 2023 (negative $59 million over 2 years starting in 2023 to 2024).

Budget 2023 funding will be used for approximately 47 full-time equivalents to deliver program operations and core activities for the Laboratories Canada program, such as horizontal governance and the Hub Management Offices, facility requirements, enterprise approach for program planning and oversight, procurement, IM (information management)/IT (information technology), a strategic portfolio plan for science assets, custody and operating models for new facilities, policy support, and Indigenous engagement, all required to strengthen and address audit, project, and stakeholder needs

Funding for the operating costs of the Electronic Procurement Solution (Budget 2023)

$17,338,512

Purpose of funding

PSPC has successfully implemented a modern, cloud-based Electronic Procurement Solution (EPS) to help manage the procurement of goods and services valued at approximately $25 billion on behalf of client departments. Under Phase 1 of the EPS project, which was completed on June 30, 2023, a cloud-based solution was established that provides Canada with a powerful, accessible and modern digital procurement platform. This cloud-based ecosystem provides key enabling technologies such as: SAP Ariba & Fieldglass for core procurement functions, ServiceNow for help desk functionality and the CanadaBuys portal as a single window to federal government and the broader public Canadian sector.

Existing project funding for the EPS has sunset. This new funding from Budget 2023 is for the steady-state operation of the EPS within PSPC. It will support PSPC’s EPS’s operations for 2023 to 2024 via an existing contract for contractor-managed cloud service delivery including infrastructure maintenance, software licenses and operations support. Funding will also be used to maintain PSPC program resources necessary to support work related to contract and vendor performance management, in-service delivery oversight and training to align with evolving modernization of procurement practices.

Benefits of the EPS include a modern cloud-based e-procurement solution to replace legacy systems and enable the modernization of procurement practices and the achievement of broader socio-economic objectives. It also provides free access and an accessible platform to suppliers and the ability for them to access a single window to view procurement opportunities across federal, provincial, territorial, municipal, administrative, schools and hospitals in alignment with the Canada-European Union Comprehensive Economic and Trade Agreement (CETA).

The EPS project (Phase 1) involves the deployment of the solution within PSPC. Phase 2 seeks to deploy the solution across the Government of Canada, and will be led by TBS.

Funding for the Electronic Procurement Solution

$11,259,799

Purpose of funding

The EPS is an integral part of PSPC’s modernization, as identified in the 2015, 2019, and 2021 PSPC Minister mandate letters. This funding is sourced from the previous year’s unused project funds and carried into fiscal year 2023 to 2024. The need to reprofile resulted from delays in system integration with PSPC’s on-premise financial system (SAP) and COVID-19:

The implementation of Phase 1 of the EPS project was completed on June 30, 2023 and it is now in steady-state operation. However, financial pressure currently exists at the departmental level associated with certain EPS-related requirements unfunded by Budget 2023. This includes [Redacted] work on legacy systems decommissioning.

Funding to provide supplies for the health system

$7,300,000

Purpose of funding

The funding is sourced from the previous year’s unused COVID-19 funds and carried into fiscal year 2023 to 2024. PSPC began winding down COVID-19 spending and operations in 2022 to 2023.

Funding is intended to cover storage and logistics of the Mobile Health Units, as well as divestiture.

Funding to support a renewed Canadian Drugs and Substances Strategy (Budget 2023) (horizontal item)

$447,390

Purpose of funding

First introduced in 2016, the Canadian Drugs and Substances Strategy is a comprehensive approach to addressing substance use issues in Canada. Its 4 key pillars are prevention, treatment, harm reduction, and enforcement. Canada is experiencing an unprecedented rate of overdose deaths and harms, largely due to the toxic illegal drug supply perpetuated by organized crime. With substance-related deaths and harms at record levels, the federal government has indicated that addressing the overdose crisis is an urgent priority. To help support the response to the overdose crisis and address substance-related harms and the toxic illegal drug supply, Budget 2023 proposed $359 million over 5 years to numerous departments for the renewed Canadian Drugs and Substances Strategy.

Funding to authorize the amendment to the Revolving Funds Act for the Optional Services Revolving Fund

$10 million

Purpose of funding

For the Optional Services Revolving Fund drawdown authority increase from $35 million to $45 million, and for the addition of a new business line that will allow the procurement of zero-emission vehicles on an expedited and/or consolidated fashion on behalf of other federal departments and agencies.

Statutory appropriations: $2.7 million increase

Employee Benefit Plans

$2,721,217

The employee benefit plans includes cost to the government for the employer’s matching contributions and payments to the Public Service Superannuation Plan, the Canada and Quebec Pension plans, Death Benefits, and the Employment Insurance accounts.

Employee Benefit Plans applicable on salary relating to Budget 2023 funding for the Laboratories Canada Strategy, the Electronic Procurement Solution, and the Canadian Drugs and Substances Strategy.

Net transfers between government departments: (negative $12.5 million) Net decrease

From the Treasury Board Secretariat to various organizations to support projects which will reduce greenhouse gas emissions in federal government operations

Transfer of $1,530,500

Purpose of funding

The Greening Government Fund was established to explore and share innovative approaches to reducing greenhouse gas emissions in government operations. The transfer from the Treasury Board Secretariat will cover 4 projects:

From National Research Council of Canada to the Department of Public Works and Government Services for the Federal Sciences and Technology Infrastructure Initiative

Transfer of $1,506,379

Purpose of funding

As part of Phase 1 of the long-term Laboratories Canada strategy, science-based departments and agencies have come together to collaborate on key federal science priorities including health and safety, security and regulation, and resource management and a low-carbon economy. Together, groups known as science hubs are exploring opportunities to strengthen their research and regulatory activities through enhanced interdisciplinary work, collaboration, and shared facilities and equipment.

Laboratories Canada funds a Hub Management Office for each science hub, to coordinate the participation of scientific partners in project development, program functions and governance committees.

Funding relates to a portion that was unused by the NRC in support of the Hub Management Office for the TerraCanada hub. The NRC has transitioned hub leadership to NRCan and therefore no longer requires the funding for full-time equivalents for the TerraCanada Hub Management Office. This funding will be reinvested in the delivery of the Laboratories Canada program.

From various organizations to the Treasury Board Secretariat for financial community developmental programs and initiatives

Transfer of (negative $10,000)

Purpose of funding

Large departments and agencies contribute to funding the renewal and delivery of development programs by the Office of the Comptroller General. These development programs are delivered by the Office of the Comptroller General on behalf of the financial management community.

Funding:

From various organizations to the Department of Foreign Affairs, Trade and Development to support departmental staff located at missions abroad

Transfer of (negative $221,307)

Purpose of funding

Missions abroad personnel include Canada Based Staff and Locally Engaged Staff, who support the implementation of Global Affairs Canada’s (GAC) mandate of foreign policy, trade, international development and consular services.

Canada Based Staff and Locally Engaged Staff are responsible for a wide range of tasks, from administrative and technical support to assisting with public affairs, trade and development initiatives. They play a key role in representing Canada’s interests abroad by helping Canadian diplomats navigate the complexities of the local environment, and ensure that Canadians are supported in foreign countries.

The Department of Foreign Affairs, Trade and Development incurs costs and recovers them from client departments with international programs.

Funding is for a Locally Engaged Staff at PSPC’s Washington Office to support the administrative requirements of a 27-person team. This office is growing, resulting in increased workload and more responsibilities for the Transportation Officer, and so the position is being reclassified to a higher step to suitably compensate the employee for the extra responsibilities. Costs also include overhead (e.g. office space, IT equipment and support, embassy security and more).

From the Department of Public Works and Government Services to Treasury Board Secretariat in support of the Government of Canadaʼs Digital Ambition

Transfer of (negative $1,500,000)

Purpose of funding

The Government of Canada’s Digital Ambition is the Chief Information Officer of Canada’s forward-looking strategic plan.

It sets government‑wide priorities and lists key actions for departments and agencies in order to transition to a more digital government and to meet the requirements of the Policy on Service and Digital. The Digital Ambition 2023 will:

From the Correctional Service of Canada, Department of National Defence, Department of Public Works and Government Services, Department of the Environment and Department of Transport to the Department of Agriculture and Agri-Food, Department of Crown-Indigenous Relations and Northern Affairs, Department of Indigenous Services and VIA Rail Canada Inc. for the Federal Contaminated Sites Action Plan

Transfer of (negative $3,800,000)

Purpose of funding

The Federal Contaminated Sites Action Plan was established in 2005 as a 15-year, $4.54 billion program and was renewed for another 15 years (2020 to 2035) in Budget 2019 (negative $1.16 billion for the first 5 years).

It aims to remediate known federal contaminated sites to reduce environmental and human health risks, as well as associated liabilities. It focuses on the highest priority sites. Consequently, the Federal Contaminated Sites Action Plan assists federal departments, agencies, and consolidated Crown corporations that are responsible for federal contaminated sites to undertake site assessment and remediation activities.

PSPC and Indigenous Services Canada (ISC) have been approved to receive Federal Contaminated Sites Action Plan funding to address their respective contaminated sites. PSPC has identified a surplus of $3.8 million in Federal Contaminated Sites Action Plan remediation funding while ISC has identified a shortfall of remediation funding. PSPC and ISC have come to an agreement to transfer a portion of PSPC’s surplus funds to ISC for the remediation of 7 sites.

From the Department of Public Works and Government Services to the Canadian Food Inspection Agency related to the Sidney Centre for Plant Health in support of the Laboratories Canada Strategy

Transfer of (negative $10,000,000)

Purpose of funding

The Canadian Food Inspection Agency (CFIA) has a network of 13 reference and research laboratories across Canada. Specializing in animal and plant health, foreign animal diseases, and food safety, these laboratories provide the expertise and scientific knowledge needed to keep Canada's plants, animals, and food safe. The Sidney Laboratory (on Vancouver Island), also known as the Centre for Plant Health, is Canada's only post-entry quarantine, research and diagnostic facility for virus testing of all fruit-bearing trees, grapevines and small fruit. Post-entry quarantine facilities ensure the safe introduction of foreign plant material into Canada. Most of the Centre for Plant Health buildings were constructed between 1912 and 1961. Due to age and environmental events, the facility is in critical condition and must be replaced to mitigate health and safety risks due to flooding and mould. Both to advance this laboratory redevelopment and to apply lessons learned from an early in-flight project across the Laboratories Canada full program, the Sidney Centre for Plant Health Project has been onboarded as Laboratories Canada’s Pathfinder Project.

Funding will close the gap between the legacy early concept design of the CFIA’s new Sidney laboratory and requirements for Laboratories Canada’s sites. For example, the new site will be carbon-neutral, climate-resilient, universally-accessible, fully digitally-enabled, and it will be designed to facilitate collaborative science into the future. The new Centre for Plant Health will provide a modernized, rapid response to testing for regulated plant diseases, improving Canada's capability to detect these diseases earlier and more accurately while also supporting trade by enabling export certifications. It will help advance collaborative research in plant science and support innovation and growth in Canada’s agricultural and agri-food sector.

Shared Services Canada 2023 to 2024 Supplementary Estimates (B) overview

SSC is seeking a net increase of $53.2 million through the Supplementary Estimates (B), increasing its available funding from $2,770.8 million to $2,824.0 million net of revenues.

Table 2 : Items sought in 2023 to 2024 Supplementary Estimates (B)
Item Amount (in millions)
New funding
Funding for the Next Generation Human Resources and Pay Initiative (Budget 2023) $33.9
Funding for safeguarding access to High Performance Computing for Canada’s Hydrometeorological Services (Fall Economic Statement 2002) $9.7
Reprofile
Cost of providing core IT services (negative $700/Full-Time Equivalent, 4% core IT) $10.9
Transfers From other organizations
From Employment and Social Development Canada (ESDC) for the cost of providing core IT services $0.7
Transfers To other organizations
To the Canada Border Services Agency (CBSA) for the Enhanced Passenger Protection Program (negative $5.7)
To the Communications Security Establishment to support the operation of the Secure Communications for National Leadership program (negative $1.8)
To TBS for Financial Community Developmental programs and initiatives (negative $0.01)
Statutory Appropriations
Employee Benefit Plans $5.5
Total $53.2

New funding: $43.6 million increase

(A) Funding for the Next Generation Human Resources and Pay initiative (Budget 2023)

$33,920,862

Purpose of funding

A total of $33.9 million for the Next Generation Human Resources and Pay initiative from Budget 2023. This funding is to examine options, evaluate potential solutions, and ultimately provide an evidence-based recommendation to Cabinet for a solution that meets the needs of the Government of Canada.

(B) Funding for safeguarding access to High Performance Computing for Canada’s Hydrometeorological Services (Fall Economic Statement 2022)

$9,725,899

Purpose of funding

A total of $9.7 million for safeguarding access to High Performance Computing for Canada’s Hydrometeorological Services from the Fall Economic Statement 2022.This funding is to cover the costs of the optional period of the existing contract with IBM Canada Ltd, optional services for the development of the Science Booster System, and initial procurement planning for the future replacement contract.

Reprofile: $10.9 million increase

(C) Cost of providing core IT services (negative $700/Full-Time Equivalent, 4% core IT)

$10,872,976

Purpose of funding

A total of $10.9 million from fiscal year 2022-2023 to 2023-2024 for the cost of providing core IT services (negative $700/Full-Time Equivalent, 4% core IT). This funding is received throughout the year; however, in 2022-2023, a large amount was identified at year-end, a portion of which was requested to be reprofiled to pay for the increased costs of delivering Part A services. The cost increase is due to increases in the consumption of services, vendor prices, changes to existing services, and the introduction of new services post 2019-2020, as part of the Enterprise Service Model implementation.

Transfers: (negative $6.8 million) decrease

(D) From Employment and Social Development Canada for the cost of providing core IT services

Transfer of $726,572

Purpose of funding

An increase of $0.7 million from Employment and Social Development Canada (ESDC) for the cost of providing core IT services.

(E) To the Canada Border Services Agency for the Enhanced Passenger Protection Program project

Transfer of (negative $5,718,911)

Purpose of funding

A decrease of (negative $5.7 million) to the Canada Border Services Agency (CBSA) for the Enhanced Passenger Protection Program (PPP). This funding will cover PPP costs associated with an additional project scope, required where CBSA assessed that further funding was required for the new solution.

(F) To the Communications Security Establishment to support the operation of the Secure Communications for National Leadership program

Transfer of (negative $1,846,284)

Purpose of funding

A decrease of (negative $1.8 million) to the Communications Security Establishment to support the operation of the Secure Communications for National Leadership (SCNL) program. This is an annual transfer until SSC’s Smart Phone for Classified initiative delivers and onboards SCNL.

(G) To the Treasury Board of Canada Secretariat for Financial Community Developmental programs and initiatives

Transfer of (negative $10,000)

Purpose of funding

A decrease of (negative $0.01 million) to TBS for Financial Community Developmental programs and initiatives. This funding is SSC’s contribution to continue funding the delivery of certain Office of the Comptroller General Financial Community Development initiatives.

Statutory appropriations: $5.5 million increase

Employee Benefit Plans

$5,527,163

Purpose of funding

An increase of $5.5 million (Statutory) for Employee Benefit Plan adjustments due to Full-Time Equivalent increases related to new initiatives.

Public Services and Procurement Canada 2022 to 2023 Departmental Results Report

Issue

On November 9, 2023, the 2022 to 2023 Departmental Results Report (DRR) for PSPC was tabled in the House of Commons by the President of the Treasury Board.

Key facts

The DRR outlines the activities that PSPC has undertaken on behalf of Canadians and other federal organizations

Key messages

If pressed on results associated with the participation of Indigenous, women‑led and small and medium businesses in the procurement processes:

If pressed on the 5% commitment for Indigenous procurement:

If pressed on results related to respecting timeframes for contracts awarded:

If pressed on the number of employees facing potential pay inaccuracies at the pay centre:

If pressed on the percentage of crown-owned heritage buildings that are in fair or better condition:

If pressed on the percentage of PSPC‑managed office space that is modernized each year and rising operating expenses per square metre of office space:

If pressed on PSPC Crown-owned and lease purchase assets accessibility assessment and compliance score:

If pressed on results for service standards and/or client satisfaction:

Background

PSPC’s DRR is prepared annually to report on how the department has fulfilled the expectations outlined in the corresponding Departmental Plan. The report is tabled every fall by the President of the Treasury Board. Parliamentary committees have an opportunity to review and question departmental spending and achieved results.

Shared Services Canada 2022 to 2023 Departmental Results Report

Issue

The President of the Treasury Board will table Shared Services Canada’s (SSC) 2022 to 2023 Departmental Results Report (DRR) in Parliament the week of October 23, 2023 (tbc). This report provides details on SSC’s mandate, commitments and results achieved in 2022 to 2023.

Key facts

N/A

Key messages

If pressed on enterprise achievements:

If pressed on expenses and revenues:

If pressed on Human Resources and Pay System

Background

N/A

Procurement (including issues and policies)

COVID-19 information technology contracting for Canada Border Services Agency

Issue

CBSA was responsible for developing and managing IT applications to support border measures and public health requirements enforced by the Quarantine Act, including ArriveCAN.

On November 2, 2022, a motion was majority voted by the House of Commons that called the Office of the Auditor General of Canada (OAG) to conduct a performance audit, including payments, contracts, and subcontracts of ArriveCAN.

Key facts

Key messages

If pressed on security clearances:

If pressed on subcontracting:

If pressed on why PSPC will not provide the names of subcontractors:

If pressed on who made the decision to contract with GC Strategies:

If pressed on the fees charged by GC Strategies for managing these contracts:

If pressed on the OAG audit on ArriveCAN:

Work with the OAG is still ongoing. At this point in time, it is expected that the report will be tabled in Parliament in November 2023

SSC’s role in application development:

SSC contracts in support of ArriveCAN:

Background

PSPC provided procurement support to the CBSA and the Public Health Agency of Canada (PHAC) in their response to COVID-19. Specifically, PSPC put in place 20 new IT contracts and issued Task Authorizations on 11 existing contracts, which were used in whole or in part in the development, launch, and maintenance of the ArriveCAN app.

In pressing emergencies where there is significant human and/or financial risks, PSPC may enter into non-competitive contracts under exceptional emergency contracting authorities provided for in the Government Contract Regulations and in accordance with the TBS Directive. PSPC leveraged those authorities for 4 IT contracts.

It is important to understand that contract management is a shared responsibility between PSPC and its clients. While PSPC negotiates and puts contracts in place, departments are responsible for monitoring and certifying the delivery of goods and services under a contract. In the case of professional services contracts, departments also determine what priorities contractors will work on within the allowable scope of each contract.

Allegations of misconduct by Canadian Border Services Agency officials and industry regarding Botler AI

Issue

The Royal Canadian Mounted Police (RCMP) is investigating allegations of misconduct involving contracting to procure software that would provide harassment support to employees of CBSA. Allegations involve misconduct by CBSA officials and industry. The issue is also being examined by the Standing Committee on Government Operations and Estimates (OGGO) as part of its ArriveCAN contracts study.

Key facts

Key messages

If pressed on allegations that Canada supports unethical business practices or supports a system of improper contracting or contractors:

If pressed on the suspension of the CBSA contracts with the 3 vendors:

Background

An October 2023 Globe & Mail article alleged collusion between Dalian Enterprises and Coradix Technology Consulting, in Joint Venture, GC Strategies and a Director General (then at the CBSA in 2019) to secure work with excessive mark-up. It also alleges Botler AI employee credentials were falsified to win work and increase billing.

It is notable that the 3 companies involved (GC Strategies, Coradix, and Dalian) were involved in work related to the ArriveCAN app, on behalf of CBSA. GC Strategies was the subject of media and political scrutiny after the Globe & Mail reported that it had received more than $9 million to work on the ArriveCAN app across several contracts.

In relation to their work on the implementation of their software for CBSA, Botler AI has alleged that their work was done inappropriately under a general IT Services contract, names of resources were used without their permission, work experiences were forged, and contract values were inflated through layered subcontracting.

Rikita Dutt and Amir Morv, delivered a testimony at the Standing Committee on Government Operations and Estimates (OGGO) on October 26, 2023, where they alleged systemic GC corruption and purposeful masking of contractor identities via subcontracting. Subcontracting is a common practice in the professional services industry. The terms and conditions of the contracts issued by PSPC typically allow for subcontracted work to ensure business needs are holistically met.

PSPC put in place the contract in question on August 8, 2019 with Dalian Enterprises and Coradix Technology Consulting, in Joint Venture. It was structured as a general IT professional services contract that would allow CBSA to assess new evolving technologies and risks on critical business applications and security systems. The procurement was set-aside for Indigenous businesses under the Procurement Strategy for Indigenous Businesses (PSIB).

CBSA issued a Task Authorization (i.e. a work order) against this contract in January 2021. The Task Authorization (TA) did not refer to Botler AI, or artificial intelligence work, and PSPC has not found any records that reference this type of work at the time. PSPC received additional information from the CBSA in May 2023 indicating that Dalian Enterprises and Coradix Technology Consulting, in Joint Venture, intended to use this TA to assess the feasibility of Botler AI’s software for implementation on the CBSA’s systems. CBSA was responsible to monitor the delivery of the work and make payments to the contractor against the contract.

Botler AI did not have a contract with Canada. The contract is with the prime contractor, Dalian and Coradix in joint venture. The contractor has obligations to make accurate certifications and representations both at contract award, and as part of the subsequent Task Authorization issuance processes. PSPC does not typically engage in direct communications with resources that a prime contractor provides to a client department. The nature of the relationship between a prime contractor and its resources, either employees or subcontractors, is treated confidentiality, and PSPC treats directly with its prime contractors.

Outsourcing of professional services

Issue

There has been recent media attention on federal government spending on professional services contracts, noting a 40% increase between fiscal years 2015 to 2016 and 2020 to 2021.

Key facts

Key messages

If pressed on the growth in expenditures on professional services:

If pressed on subcontracting:

If pressed on mark-ups (commissions) paid to vendors through subcontracting:

Background

In January 2022, media reported that the federal government spending on outsourcing contracts in the fiscal year 2020 to 2021 increased by 40% when compared to fiscal year 2015 to 2016. This came from information publicly available in the Public Accounts of Canada, tabled in the House of Commons on December 14, 2021.

The House of Commons Standing Committee on Government Operations and Estimates (OGGO) is currently carrying out a study on this issue. Budget 2023 proposes to reduce spending on consulting, other professional services, and travel by roughly 15 per cent of planned 2023 to 2024 discretionary spending in these areas. This will result in savings of $7.1 billion over 5 years, starting in 2023-24, and $1.7 billion ongoing. The government will focus on targeting these reductions on professional services, particularly management consulting services.

On October 5, 2023, Treasury Board published guidance about the use of contracted professional services. The Manager’s Guide: Key Considerations when Procuring Professional Services will help managers determine when to contract for professional services versus when to use internal resources. The Guide also lays out practical considerations for managers when structuring contracts so that they deliver best possible value, can be effectively managed, and fully align with requirements of Treasury Board’s Directive on the Management of Procurement

Contracts awarded to McKinsey & Company

Issue

There has been recent media and Parliamentary attention related to contracts awarded to McKinsey & Company.

Note: All questions related to McKinsey’s work on Robotic Process Automation and Accelerator Services are in a separate question period note (Phoenix IBM and pay stabilization)

Key facts

Key messages

If pressed on reviews of contracts to McKinsey and company:

If pressed on allegations of tax fraud and actions abroad that McKinsey is facing:

Background

PSPC awarded 24 contracts to McKinsey & Company between 2011 and 2023. These contracts have recently been assessed via PSPC’s internal audit services and are also subject to ongoing reviews by the Office of the Procurement Ombudsman and the Auditor General.

The internal review determined that overall, the integrity of the procurement process was maintained and complied with the Values and Ethics Code for the Public Sector, Directive on Conflict of Interest, and supporting procurement policy instruments and procedures. Specifically, no instances of non-conformity were found with respect to conflict of interest regarding current or former public servants or public office holders as well as McKinsey & Company. However, it also found areas for improvement related to record management and contract administration.

PSPC has accepted all recommendations associated with this audit and has put in place a Management Action Plan. In addition, the department is reviewing all National Master Standing Offers related to Benchmarking data analytics and services and will replace these tools in the future with a procurement approach that ensures open, fair and transparent competition as a starting point.

The McKinsey & Company standing offer has sunsetted in February 2023 as planned and all other Standing Offers for benchmarking services will sunset between February and June 2024.

At the request of the Minister of Public Services and Procurement, the Office of the Procurement Ombudsman is currently reviewing the procurement processes associated with the award of contracts to McKinsey & Company by all federal departments and agencies.

10 departments that contracted with McKinsey & Company have been the focus of attention from the Treasury Board of Canada Secretariat and auditors including the OAG and the Office of the Procurement Ombudsman. PSPC procured various professional services including strategic advice, subject matter experts, benchmarking services and development of transformation strategies for 7 of these departments.

Class action opioid suit against McKinsey & Company

Issue

Media articles published in Spring 2023 have noted that the federal government is planning to join a British Columbia class-action lawsuit that accuses McKinsey & Company of engaging in reckless marketing campaigns to boost opioid sales should the class-action move forward.

Key facts

N/A

Key messages

If pressed on McKinsey’s status under the integrity regime

Background

The Integrity Regime is designed to help ensure that the Government does business with ethical suppliers and incentivizes suppliers to ensure strong ethics and compliance frameworks. Under the Regime if, within the last 3 years, a supplier is charged or convicted of 1 of the offences listed in the Ineligibility and Suspension Policy, the supplier may be suspended or determined to be ineligible to be awarded a contract. A suspension or determination of ineligibility would also be triggered by a foreign offence that is similar to 1 of the listed offences. Civil litigation is not a grounds for suspension or debarment under the existing Integrity Regime. PSPC is aware of the adverse information related to McKinsey & Company and its affiliates. The company’s status under the Integrity Regime remains unchanged at this time.

Integrity in federal procurement

Issue

In a constantly evolving marketplace, questions may arise as to the measures that PSPC has in place to protect the integrity of the federal procurement system and better understand who Canada conducts business with.

Key facts

N/A

Key messages

Background

The Government of Canada has a framework of laws, regulations and policies in place to protect the integrity of the federal procurement system. PSPC administers several programs under this framework, including the government-wide Integrity Regime, the Federal Contracting Fraud Tip Line, and increased oversight for the detection of bid-rigging.

The Integrity Regime is designed to help ensure that the Government does business with ethical suppliers and incentivizes suppliers to ensure strong ethics and compliance frameworks. Under the Regime, a supplier may be suspended or declared ineligible to do business with the Government if, in the previous 3 years, it, members of its board of directors or its affiliates, have been charged with or convicted of 1 of the offences listed in the Ineligibility and Suspension Policy in Canada or a similar offence abroad.

Under the current Regime, 5 companies are ineligible to do business with the Government of Canada due to convictions for a listed offence (Les Entreprises Chatel Inc., R.M. Belanger Limited, Les Industries Garanties Limitée, Sports Max and Canada Bread Company Limited (also doing business as Bimbo Canada). In addition, 1 supplier (Teva Pharmaceuticals USA Inc.) has been suspended due to a charge related to a listed offence.

Currently there are 3 active administrative agreements with suppliers, 2 agreements are in lieu of suspension following the resolution of criminal charges in Quebec by way of Remediation Agreements (SNC-Lavalin and Ultra Electronics Forensic Technology Inc.); the other administrative agreement is with a supplier who had their period of ineligibility reduced to 5 years (Hickey Construction Ltd).

Canadian Dental Care Plan

Issue

PSPC is working with Health Canada to support the design of the new Canadian Dental Care Plan.

Note: All questions regarding the collaboration with provincial and territorial partners and the design of the program should be directed to Health Canada

Key facts

Key messages

If pressed on the fairness of the procurement approach

Background

In Budget 2022, the Government of Canada committed $5.3 billion over 5 years to Health Canada to provide dental care for the estimated 7 to 9 million Canadians who are unable to access proper dental care because of the cost. This started with under 12-year-olds in 2022, expanding to under 18-year-olds, seniors, and persons living with a disability in 2023. Full implementation is expected by 2025. The program would be restricted to families with an income of less than $90,000 annually, with no co-pays for those under $70,000 annually in income.

PSPC is responsible for managing the procurement to select a private partner for the delivery of dental claims processing. This involves engaging with industry, developing procurement documentation, conducting the procurement process and managing the resulting contract(s) associated with the program.

PSPC issued a Request for Information on July 25, 2022. The Request for Information closed on August 22, 2022, and 26 responses were received from various organizations within the dental care community. The feedback received helped guide the development of a long-term dental care program. A subsequent Invitation to Qualify was issued on October 28, 2022, and closed on December 5, 2022. Once the evaluation was completed, 3 pre-qualified suppliers (Express Scripts Canada, Medavie Inc., and Sun Life Assurance Company of Canada) were announced in January 2023.

A collaborative process ensued from February to May 2023, refining requirements with suppliers’ input. A subsequent Request for Proposals was sent to the 3 pre-qualified suppliers on June 20, 2023, and closed on July 20, 2023, yielding 1 proposal.

An Early Work Agreement was awarded to Sun Life on August 22, 2023, for necessary pre-contractual work while Canada finalizes due diligence and obtains Treasury Board approval to award the main contract (targeting October 2023).

Public Service Health Care Plan

Issue

Beginning on July 1, 2023, when Canada transitioned the administration of claims processing from Sun Life to Canada Life, some Public Service Health Care Plan members have experienced difficulties obtaining assistance via the call centre.

Key facts

Key messages

If pressed on improvements to the service levels

Background

The source of member frustration can largely be attributed to an apparent deficiency in responding to larger than expected call volumes, which continues to be much higher than historical norms and modelling projections.

The higher call volumes have been the result of a combination of plan changes, user error (positive enrolment not completed properly or completely), and errors with pharmacies (some did not use proper codes, even if individuals completed their positive enrolment).

Electronic Procurement System

Overview

Under the Department of Public Works and Government Services Act, PSPC has the legislated mandate to provide acquisition services for federal departments and agencies.

The Electronic Procurement Solution (EPS) is an integral part of PSPC modernization of acquisition services, as identified in the 2015, 2019, and 2021 Minister mandate letters. The 2019 mandate letter specifically identified EPS as a central part of achieving this priority.

Following Budget 2018 announcement , PSPC awarded, on July 4, 2018, a 5 year contract to implement an EPS through a competitive process, to Infosys Public Services with a budget of $214.5M. This project closed in June 2023 and EPS transitioned to operational state on schedule and with expenditures expected to finish at approximately $224.3 million.

EPS provides suppliers with a free and accessible single window to procurement opportunities across the broader public service and the ability to self-identify as part of an equity-deserving ED) group. This modernized platforms also provides PSPC with increased visibility and audit capabilities that can help optimize supplier market participation and better inform decisions.

Metrics

Launched an online COVID-19 19 supply catalogs where more than 1150 orders were filled by 78 departments and agencies

Next steps

Human resources and pay

Phoenix IBM and Pay Stabilization Procurement Initiatives

Issue

This note focuses on vendor support on the Phoenix file (IBM / Innovation Challenge) as well as other pay stabilization procurement initiatives.

Key facts

Key messages

If pressed on the IBM contract history:

If pressed on the McKinsey contract for accelerator services:

Background

IBM contract and amendments

In June 2011, IBM was awarded the contract for the new pay system through an open and transparent bidding process with a fairness monitor. The initial investment to develop Phoenix was $309 million. This included the IBM contract, other professional services contracts and program costs (example: delivery costs for the Transformation of Pay Administration Initiative).

In May 2019, PSPC launched a competitive procurement process (ITQ) seeking qualified suppliers interested in providing ongoing operational support for the Phoenix pay system, once the contract with IBM Canada Limited ended in March 2022.

The ITQ was designed as an outcomes-based agreement where the contractor is responsible for delivering services based on our requirements and ensuring the Government of Canada receives what it needs for a fixed price.

In 2019, 3 firms submitted responses to the ITQ Application Managed Services model for the Phoenix Pay System. Following a thorough evaluation of the 3 responses, it was determined that only IBM met the mandatory requirements published in the ITQ.

PSPC negotiated a new contract with IBM for the period from March 2022 until March 31, 2024, with a value of $228.27 million; and exercised the second option year from April 1, 2024 to March 31, 2025, with a value of $120.23 million; including taxes and contingency. The contract contains 9 additional one-year options, that can be exercised on an as-needed basis.

An independent fairness monitor observed the procurement process was carried out in a fair, open, and transparent manner. The final report has been published on PSPC’s website.

Innovation challenge: Pay Stabilization Procurement Initiatives

As part of its efforts to accelerate pay stabilization, PSPC has engaged the private sector in innovative solutions to help stabilize the pay system. This iterative approach includes Robotic Process Automation (RPA) and Accelerator Services.

Robotic Process Automation: Request for Proposal

Robotic Process Automation (RPA) is one of several ongoing initiatives to help reduce the backlog and stabilize the pay system. PSPC is using RPA services to automate highly repetitive manual transactions to increase efficiency and accuracy in pay processing. This means that compensation employees at the Pay Centre can focus their expertise on more complex cases and address even more transactions in the backlog.

Following a competitive process, a contract was awarded to IBM on January 19, 2021, which allowed PSPC to build on the RPA work and accelerate the automation of pay processing. In total, 2 bids were submitted and evaluated prior to issuing this contract, and IBM was found to be the only qualified bidder. PSPC is now leveraging additional Crown resources with expertise in innovative technologies to support all ongoing Robotic Process Automation activities. This includes knowledge transfer from vendor to public servants thus reducing sole reliance on professional services and increasing internal capacity.

Accelerator Services contract

The objective of the Accelerator Services project is to streamline processes and standardize work at the Pay Centre to increase efficiency and reduce processing times for pay transactions. McKinsey & Company was awarded a contract for Accelerator Services in February 2020 as a result of a competitive procurement process. In total, 2 bids were submitted and evaluated prior to issuing this contract, and McKinsey & Company was found to be the only qualified bidder.

Under this contract, McKinsey & Company provided consulting services to transform ways of working, including management practices and tools, to improve both productivity and the experience of our clients and client organizations. They also implemented strategies to increase efficiency and reduce errors, which continues to lead to decreased wait time for employees’ pay issues to be processed.

On November 1, 2022, PSPC exercised its final extension the Accelerator Services contract until the end of March 2023. This extension supported the Pay Centre in updating their training and onboarding program for new employees. The work included a review of onboarding practices and a redesign of training based on adult learning best practices. A subsequent amendment was done to extend the contract by 2 months (to May 31), at no additional cost, to allow time for McKinsey to deliver a close out report. The initial contract and amendments bring the total contract value to $29.6 million (taxes included):

Tableau 3 : Contract values from 2020 to 2023
2020 to 2021 2021 to 2022 2022 to 2023
$5,572,926.94 (taxes included) $15,458,209.31 (taxes included) $8,589,130.00 (taxes included)

Enterprise Pay Coordination

Issue

In May 2023, the Prime Minister announced the creation of the Enterprise Pay Coordination Office within PSPC. Its mandate is to lead, coordinate and implement the development of an integrated, enterprise strategy on human resources and pay moving forward.

Key facts

Key messages

Background

Transformation and renewal of human resources and pay business in the Government of Canada has been a persistent challenge for more than 40 years. The environment in which human resources and pay services are delivered across the Government of Canada is complex.

The Government of Canada is highly unionized, functionally diverse and has a geographically dispersed workforce across the country and the globe. In addition, the technology landscape is outdated and complex, including one pay system, 33 separate human resources systems and a suite of peripheral human resources management applications.

PSPC, through the Enterprise Pay Coordination Office, oversees an integrated team working across federal organizations, which will be key to the Government of Canada’s success on the enterprise strategy on human resources and pay. The Enterprise Pay Coordination Office plays a leadership role in coordinating deliverables and in setting a common approach to support the development of an enterprise integrated strategy on human resources and pay.

4 Priorities

The work of the Enterprise Pay Coordination Office on developing an integrated strategy focuses on 4 foundational priorities:

Integrated Team

The Pay Administration Branch (PAB) and Digital Services Branch (DSB) within PSPC as well as SSC’s Next Generation Human Resources and Pay Initiative, now functionally report to the Enterprise Pay Coordination Office, making it the delivery team for this integrated approach. The TBS’s Office of the Chief Human Resources Officer is the business owner. Bringing the work and integrated teams under PSPC will improve coordination to effectively deliver on this ambitious mandate.

Next Generation Human Resources and Pay Initiative

Issue

SSC officials may be asked about the progress on the Next Generation Human Resources and Pay (NextGen HR and Pay) Initiative.

Key facts

Key messages

If pressed on SSC’s role:

If pressed on cost:

If pressed on contracts:

Background

NextGen HR and Pay used an agile procurement process to move forward and quickly adapt to changing circumstances. Using this innovative procurement process, the 3 qualified vendors were chosen (SAP, Workday, and Ceridian) for the NextGen HR and Pay solution, with an option to pivot to a different prequalified vendor, if required. In August 2021, this option was used to pivot to a new vendor (Ceridian) for Design and Experimentation.

This testing was undertaken with partner departments and agencies to ensure that the initiative is testing complex scenarios that reflect their daily reality. On October 14, 2020, the selection of the Department of Canadian Heritage (PCH) for the Exploratory Stage of the NextGen HR and Pay Initiative was announced. PCH was selected as the pilot department for the Exploratory Phase because their organization provides a good representation of the government’s human resources complexities, including multiple occupational groups, regional representation, overtime, and other considerations.

On July 27, 2021, the GC announced the expansion of testing to include the Department of Fisheries and Oceans (DFO) and the Canadian Coast Guard and Canada Economic Development for Quebec Regions (CED) and further expanded in 2022 to include Crown-Indigenous Relations and Northern Affairs Canada (CIRNAC) and Indigenous Services Canada (ISC).

The NextGen HR and Pay team also engaged a broad representation of employees across 27 departments through a wide variety of forums, such as presentations, information sessions, and over 2100 HR and Pay cases tested.

Phoenix Salary Overpayments

Issue

This note focuses on Phoenix salary overpayments. A salary overpayment is an amount of money paid to an employee to which they are not entitled. Overpayments exist for current and former employees.

Notes:

Key facts

Key messages

If pressed on support to employees:

Background

Recovery of overpayments supports the Government of Canada’s mandate to eliminate the backlog of outstanding pay issues for current and former public service employees, in order to rebuild their confidence in the integrity of their pay and pensions. Salary overpayments impact current and former public service employees across departments, agencies and across the country.

We recognize that the recovery of overpayments can be a source of stress. The Client Contact Centre is the first point of contact for current and former federal public servants looking to report a pay issue, provide status updates on their files or to receive assistance with technical issues (when using the Compensation Web Applications or the Phoenix pay system) and general enquiries. The Client Contact Centre is available to all current and former federal public servants with pay and benefits questions.

Flexible measures have been put in place to help minimize financial hardships for employees for the repayment of overpayments. This means that, for the recovery of most overpayments, a flexible repayment plan can be put into place in situations where public servants have acknowledged their overpayment and agreed to repay it.

Current employees and pensioners facing financial hardship can have their recovery rate, traditionally set at a rate of 10% of their regular payment, lowered upon request and as long as the overpayment is acknowledged and recovery will be complete within a reasonable period of time (typically within 5 years).

It is important to note that the information regarding overpayments included in the Key facts includes both administrative and true overpayments. Administrative overpayments were a normal part of the pay administration process, from 2017 to 2020, and used to ensure employees were paid accurately. They would be generated when an employee’s acting assignment was entered late and were automatically recovered at the time of the acting assignment’s retroactive payment. This allowed the pay system to automatically reconcile the difference between the regular salary rate and the acting salary rate in subsequent pay periods without affecting the employee’s pay. As of October 2020, a new process was put in place and these types of overpayments are no longer created for this purpose.

Processing of Pay Transactions

Issue

This note focuses on the efforts and progress to stabilize the administration of pay, manage intake of pay transactions, and the ongoing reduction of the backlog.

Note: All questions related to Next Generation Human Resources and Pay solution are in a separate question period card developed by Shared Services Canada

Key facts

Key messages

If pressed on the increase of the backlog:

Background

Queue and backlog

Since January 2018, PSPC’s Pay Centre has made significant progress in reducing the overall queue and backlog of pay transactions, Despite productivity improvements, high intake levels have outpaced pay processing capacity, leading to increases in the queue as well as in the backlog of cases that are a year old or more.

Intake and workload at the Pay Centre has grown. Intake for the 2022 calendar year was almost 1.24 million cases, surpassing the intake for 2019 (1 million) by 24%, 2020’s intake (865,000) by 43%, and 2021’s intake (1.04 million) by 18%. This trend has continued in 2023. From January to October 2023 we received 185,000 (18%) more transactions compared with the same period last year.

PSPC continues to make progress on older cases, but that progress has slowed as intake, and therefore the overall volume of work, has grown. These outstanding transactions, both intake and backlog, are not errors – they represent the normal pay administration work we do to support our client population.

The number of transactions processed each month varies based on a number of factors, such as the complexity of cases and collective agreement implementation. Intake also shows seasonal trends, with peaks at the end of the calendar year, the end of the fiscal year, and the end of summer, which marks the completion of many casual and student work terms.

As of October 25, 2023, the Pay Centre has processed 225,000 more transactions compared to the same period in 2022. However, the increase in output was met by an increase in intake of 185,000 transactions, offsetting the impact of the increase in productivity. The growth in intake is driven by the increase in the population of departments served by the Pay Centre as well as changes in per capita intake trends. Per capita intake is now higher than it was in 2019, having fully rebounded from the dip that began in March 2020.

In addition, new challenges have been affecting progress to eliminate outstanding transactions and keep up with new intake since March 2021. These challenges include the high complexity of transactions that remain in the backlog, changing employee and enterprise behaviour such as increased HR activity and employee movement, as well as government-wide operational and human resources policy priorities which have contributed to workload increases. Examples include classification conversion, implementation of the mandatory vaccination policy and associated leave without pay processing, vacation/compensatory leave cash-out, and others including strike-period leave without pay processing in 2023.

Update on Pay Stabilization: Support for employees and investments

Issue

This note focuses on efforts and progress to date to provide support to employees and stabilize the administration of pay, and on financial investments in Phoenix.

Notes:

Key facts

Key messages

If pressed on the backlog:

If pressed on collective agreement implementation: 2022 contracts:

If pressed on support to employees:

If pressed on specific actions:

If pressed on next generation human resources and pay initiative:

Background

Stabilizing the administration of pay

Since the launch of Phoenix, PSPC has implemented a series of measures focused on stabilizing the administration of pay.

In addition, we are focusing on other operational priorities in pay administration including pension arrears, terminations, and overpayments. We have improved service standard compliance while managing sustained increases of transactions submitted to the Pay Centre by departments and agencies, starting in 2021 and expected to continue going forward.

Employees who have been underpaid can request emergency salary advances or priority payments from their departments.

NextGen HR and Pay Initiative

The NextGen HR and Pay Initiative at SSC now functionally reports to the Enterprise Pay Coordination Office.

The mandate of the NextGen HR and Pay Initiative was to assess the viability of adopting a commercially available, integrated Human Resources and pay Software-as-a-Service (SaaS) solution given the complexities of the Government of Canada’s human resources and pay requirements.

After multiple phases of testing with several pilot departments across the Government, Ceridian’s Dayforce solution has been deemed to be technically viable to deliver human resources and pay for the Government of Canada. The Initiative will build on results and findings to complete further design, planning, testing and validation on the scalability of this solution. These activities are needed to deliver an evidence-based recommendation to the Government of Canada on the future of HR and Pay.

Collective agreement implementation: 2018 and 2022 contracts

The 2018 round of Collective Agreement Implementation includes agreements signed in 2018 through 2023, and is nearly complete. To date, 2018 Collective Agreement Implementation salary adjustments and retroactive payments have been completed through the automated process for 147 TBS and separate employer agreements, representing over $2 billion in payments to employees (as of April 2023).

The implementation of the 2022 round of collective agreement started last year, and in the summer 2023, the Government of Canada began processing the first wave of signed agreements from the recent rounds of collective bargaining for major groups. As of November 14, 2023, the new rates of pay have been updated in the pay system for approximately 250,000 employees.

For the 2022 round of collective agreement implementations, and similar to the 2018 round of collective agreement implementation, we expect an overall average of approximately 10% of employees will see at least one transaction needing manual intervention. The results of each retroactive payment process are expected to vary due to a combination of many factors, including agreement complexity. We are on track to complete the 2022 collective agreement implementation within negotiated timeframes.

MyGCPay

MyGCPay is a web application developed by PSPC to help rebuild federal government employees’ confidence in the integrity of their pay. It provides employees with a centralized and simplified view of their pay and benefits. It helps employees identify pay issues earlier and allows them to monitor their open cases with more detail.

Real property activities

Leases and contracts related to regular and irregular border crossings

Issue

PSPC, as a common service provider to departments and agencies for procurement and real property services, supports RCMP, CBSA, and Immigration, Refugees and Citizenship Canada (IRCC), at border crossings. This is done by putting in place various agreements to help accommodate asylum claimants arriving between ports of entry without alternative plans, while they await transfer to the provincial shelter system or secure private accommodations.

Notes:

Key facts

Key messages

If pressed:

Background

Since the spring of 2017, a very high volume of asylum claimants has arrived at key Canadian points of entry, the majority coming through at the Roxham Road crossing. This volume of irregular migration has created the need for RCMP, CBSA, and IRCC to increase their infrastructure in order to process claims and provide services to asylum claimants.

In support of its client departments, PSPC has put in place contracts and leases, leveraging also its emergency contracting authority, for temporary accommodations and services (including hotel rooms, cleaning, catering, health and security) to help manage the unpredictable demand in asylum claimants arriving in Canada.

Construction of the Lac-Mégantic rail bypass

Issue

PSPC is collaborating and communicating regularly with Transport Canada in order to move quickly on this file while ensuring a fair acquisition process for property owners. The Government of Canada acquired 124 parcels of land from 44 owners for the construction of the Lac-Mégantic railway bypass. These parcels were owned by the municipality of Lac-Mégantic as well as private owners located in Lac-Mégantic, Frontenac and Nantes.

Key facts

Key messages

If pressed on property owners:

Background

Transport Canada mandated PSPC to acquire the required properties and manage the technical contracts related to the acquisition process. Accordingly, the department is responsible for surveying and appraising the properties, meeting with the owners to explain the acquisition process, negotiating with them when possible and implementing the expropriation process when negotiations are inconclusive.

Optimizing Public Services and Procurement Canada’s real property portfolio

Issue

The post-pandemic environment represents an opportunity to incorporate new workplace arrangements and ensure more efficient use of the office portfolio while also increasing accessibility and reducing greenhouse gas emissions. Studies conducted prior to the pandemic indicated that 40% of PSPC’s space was underutilized.

Key facts

PSPC are custodians of approximately 25% (6.9 million m2) of the Government of Canada’s real property assets, with over 50% of our office portfolio being within the National Capital Region (NCR)

Key messages

If pressed on current measures:

Background

PSPC is the federal government’s administrator of real property and is responsible for approximately 6.9 million square metres (m²) of space across Canada. This includes the office portfolio, special purpose buildings, and assets for the Science and Parliamentary Infrastructure Branch (SPIB). About 6.2 million square metres is considered office space, which is approximately split evenly between leased and Crown owned space

The 10 surplus properties referenced above include:

Greening Public Services and Procurement Canada’s real property portfolio

Issue

PSPC’s Crown-owned building portfolio (excluding housing) is achieving results in the reduction of greenhouse gas emissions and towards becoming net-zero carbon, in response to the Greening Government Strategy. The department is also achieving results toward zero plastic waste.

Key facts

Key messages

If pressed on zero plastics:

Background

National Clean Electricity Initiative

PSPC has been working with the TBS—Centre for Greening Government to develop a strategy to procure 100% clean electricity where available, as was identified in the 2019 Minister of Public Services and Procurement Mandate Letter. PSPC will purchase electricity from new renewable infrastructure, in provinces where it is available, and will procure Renewable Energy Certificates to displace greenhouse gas (GHG) emitting electricity in locations where new infrastructure development is not presently available.

The National Clean Electricity Initiative includes provincial initiatives such as PSPC’s Atlantic Clean Energy Initiative and the Alberta and Saskatchewan Clean Electricity Initiatives to purchase clean electricity locally in these provinces. It also includes the purchase of Renewable Energy Certificates to displace electricity generated from high carbon sources for participating federal departments.

Energy Services Acquisition Program

The Energy Services Acquisition Program (ESAP) is modernizing the NRC District Energy System which provides heating services to 80 buildings and cooling services to 67 buildings in the NRC. Implementation of Smart Plants and Smart Buildings measures, the modernisation of the NRC District Energy System infrastructure, along with the electrification of the heating plants, will result in a 92% reduction of the District Energy System networks greenhouse gas emissions by 2026, compared to the 2005 to 2006 baseline. The residual greenhouse gas emissions of 8% (9,000 tonnes) will be addressed through a number of additional technologies and the procurement of clean energy. Altogether, these measures will allow the NRC District Energy System to achieve near net-zero carbon status by 2030.

Office Long Term Plan

PSPC’s 2021 to 2022 Office Long Term Plan is an aspirational plan that contains notional targets designed to right size, recapitalize and modernize the Government of Canada’s Office Portfolio over a 25 year planning horizon.

With respect to specific portfolio greening objectives identified in the Office Long Term Plan, the following initiatives have been identified to continue to help achieve the Government of Canada carbon elimination priorities within our office portfolio:

Modernization of Parliament (Parliamentary Precinct)

Status of the Long Term Vision and Plan for the Parliamentary Precinct

Issue

PSPC is implementing the Long Term Vision and Plan (LTVP)—a multi-decade strategy to restore and modernize the Parliamentary Precinct. The core of the Parliamentary Precinct includes the grounds and buildings on Parliament Hill and the 3 city blocks directly facing it.

The department is also supporting Crown-Indigenous Relations and Northern Affairs Canada (CIRNAC) to develop a national space for Indigenous Peoples within the Parliamentary Precinct. The project includes the re-development of the former United Stated Embassy (located at 100 Wellington Street), the CIBC building (located at 119 Sparks Street) and an infill space between the 2 buildings.

Note: Questions related to the Indigenous Peoples’ Space (100 Wellington) should be directed to the Minister of Crown-Indigenous Relations and Northern Affairs as the overall lead for the Indigenous Peoples’ Space

Key facts

Key messages

If pressed on the centre block rehabilitation program:

If pressed on the auditor general’s report 3—rehabilitation of parliament’s centre block:

If pressed on the semi-annual update to Parliament: 

If pressed on the redevelopment of Block 2:

If pressed on parliamentary engagement, governance and key decisions:

If pressed on Wellington street:

If pressed on the indigenous peoples space (100 Wellington and 119 Sparks):

If pressed on parking garage:

Background

The LTVP was first approved in 2001 and updated in 2006 for the restoration and modernization of Canada’s Parliamentary Precinct. This program supports the mandate commitment of advancing work to rehabilitate and reinvigorate places and buildings of national significance. All major projects continue to track on time and budget.

In 2017, the LTVP began shifting from a building-by-building strategy to a campus-based approach. Approved by all Parliamentary Partners, this approach takes into consideration important and interconnected elements including security, the visitor experience, urban design and the landscape, material handling, the movement of people and vehicles, environmental sustainability, and accessibility. The LTVP is currently undergoing a second update to transform the Precinct into an integrated campus beyond Parliament Hill which will be ready for consideration by Parliament and Government in winter 2024.

With a goal of reaching of 5% of procurement with Indigenous businesses, PSPC has established agreements with organizations, such as the National Aboriginal Capital Corporations Association, the Canadian Council for Aboriginal Business, the Council for the Advancement of Native Development Officers, the Aboriginal Apprenticeship Board of Ontario and the Anishinabeg Algonquin Nation Tribal Council to assist with fulfilling that target as it pertains to the Parliamentary Precinct.

The restored West Block and Senate of Canada Building and the new Parliament Welcome Centre (Phase 1), were transferred to Parliament in fall 2018. These projects followed the completion of the 21 key projects since the Library of Parliament in 2006, including the 180 Wellington Building (2016) and the Sir John A Macdonald Building (2015).

Translation Bureau

Translation Bureau staff and freelance interpreters

Issue

The Translation Bureau (the Bureau) supports hybrid sittings of Parliament by providing interpretation services, among other things. Since the start of the pandemic, the Bureau has implemented several measures to protect the health and safety of interpreters. Despite the measures put in place and expert studies, sound-related incidents continue to occur occasionally. The Office continues to face capacity issues that impact parliamentary committee meetings. These issues have been the subject of numerous discussions during parliamentary committee meetings and exchanges with the International Association of Conference Interpreters—Canada region. The interpretation profession is in great shortage in Canada and throughout the world.

Key facts

N/A

Key messages

If pressed on capacity

Background

Since the beginning of the pandemic, the Translation Bureau has worked closely with the House Administration on the implementation of virtual/hybrid parliamentary meetings. Demand for interpretation services can fluctuate greatly. To better meet demand, the Translation Bureau collaborates with its clients to plan and prioritize their needs in advance, and retains the services of freelancers as required. The Translation Bureau serves Parliament in priority and works closely with the House Administration, which determines where resources are allocated based on House priorities. When demand exceeds capacity for a given time slot, the House administration consults party whips to obtain direction on which meetings will obtain the resources required.

Directives

Following a complaint filed on January 31, 2022, by the Canadian Association of Professional Employees under the Canada Labor Code, the Translation Bureau received on February 1, 2023, 2 directions from the Labor Program of Employment and Social Development Canada regarding the mandatory use of ISO-compliant microphones, as well as the performance of random tests in the workplace. The directions were closed last August and the Translation Bureau is committed to continuing research and studies to protect the health and safety of interpreters in an approach of continuous improvement.

Defence and marine procurement

National Shipbuilding Strategy

Issue

The National Shipbuilding Strategy is a long-term commitment to renew the vessel fleets of the Royal Canadian Navy and Canadian Coast Guard, create a sustainable marine sector, and generate economic benefits for Canadians.

Notes:

Key facts

Key messages

If pressed on Chantier Davie Canada Inc.’s acquisition of Finland’s Helsinki Shipyard Oy:

If pressed on amount of contracts awarded to Chantier Davie Canada Inc:.

If pressed on the increase in the cost for the construction of offshore oceanographic science vessel:

If pressed on contract amounts:

If pressed on economic benefits:

If pressed on the 3rd yard:

If pressed on the polar icebreakers:

If pressed on the Canadian International Trade Tribunal (CITT) and federal court challenges to the award of the CCGS Terry Fox vessel life extension contract :

If pressed on government funding of $463m in infrastructure upgrades at Irving Shipbuilding:

Background

The National Shipbuilding Strategy is a long-term plan to renew the Royal Canadian Navy and Canadian Coast Guard fleets. It aims to eliminate the boom and bust cycles of vessel procurement that have slowed Canadian shipbuilding in the past.

In 2011, following a competitive, fair, open and transparent process, the government established long-term strategic relationships for the construction of large vessels with 2 Canadian shipyards: Irving Shipbuilding in Halifax, Nova Scotia, for the construction of combat vessels, and Vancouver Shipyards in British Columbia for the construction of non-combat vessels.

Following successful negotiations, the Government of Canada signed an Umbrella Agreement on April 4, 2023 with Chantier Davie. Chantier Davie will build 1 of 2 Polar Icebreakers and 6 Program Icebreakers for the Canadian Coast Guard, and 2 Ferries for Transport Canada.

All Canadian shipyards across the country, except the 3 strategic shipyards, can compete to win contracts for small vessel construction, whereas all Canadian shipyards can compete for repair, refit and maintenance contracts.

Original budgets for large vessel construction projects were set many years ago and were guided by limited experience and projections. Shipbuilding is highly complex and we continue to build on lessons learned to ensure future project budget and timeline projections are realistic and achievable. We continue to work closely with the shipyards and industry to address ongoing challenges including cost, time estimates and productivity.

Future Fighter Capability Project

Issue

In December 2017, the Government of Canada launched an open and transparent competition to permanently replace Canada’s fighter fleet with 88 advanced jets—the Future Fighter Capability Project.

Notes:

Key facts

Key messages

If pressed on the selection of the F-35:

Background

As part of the Government of Canada’s reaffirmed commitment to invest in Canada’s military, as announced in the 2017 Defence Policy, Strong, Secure, Engaged, the Government launched a competition in December 2017 to permanently replace Canada’s fighter fleet with 88 advanced jets—the Future Fighter Capability Project.

An independent fairness monitor oversaw the entire process to ensure a level playing field for all bidders. An independent third-party reviewer was also engaged to assess the quality and effectiveness of the procurement approach.

On January 9, 2023, the Government of Canada announced that following an open, fair and transparent competition, Canada had finalized an agreement with the US government and Lockheed Martin with Pratt & Whitney for the acquisition of F-35 fighter jets for the Royal Canadian Air Force.

Procurement of Arctic Capable Assets

Context

Canada’s Defence Policy, Strong, Secure, Engaged, reaffirms the Government of Canada’s commitment to ensure that Canada has an agile, multi-purpose military and that members of the Canadian Armed Forces are well-equipped and well-supported.

Suggested response

If pressed on repair costs to fix issues on Artic offshore patrol ships (AOPS):

Strategic Tanker Transport Capability Project

Issue

In December 2020, the Government of Canada launched an open and transparent competition to replace Canada’s CC-150 Polaris fleet—the Strategic Tanker Transport Capability (STTC) Project.

Notes:

Key facts

This new fleet, named the CC-330 Husky, is estimated to have a life expectancy of 30 years. It is anticipated to operate into the 2050s

Key messages

Background

In June 2017, the Government of Canada articulated within the strategic vision of the new Strong, Secure, Engaged (SSE) Defence Policy that Canada needs an agile, multi-purpose, combat-ready military.

Aligning with the SSE requirement to enhance interoperability with Canada’s Allies, the Minister of National Defence has a mandate to renew Canada’s strong commitment to the North American Aerospace Defense Command (NORAD) and the North Atlantic Treaty Organization (NATO).

The STTC platform will be equipped to support and contribute to these renewed commitments through delivery of Air-to-Air Refueling of Canadian, Allied and Coalition aircraft, strategic Government of Canada transport, aeromedical evacuation, personnel and equipment transport.

The first used aircraft arrived in Ottawa on August 31, 2023 and the inaugural official business international flight took place on November 15, 2023.

Canadian Multi-Mission Aircraft Project

Issue

On December 22, 2022, Canada submitted a Letter of Request to the United States Government to explore the option of acquiring 14 to 16 P-8A Poseidon aircraft, with associated spare parts, support equipment, training, training devices, associated mission equipment and initial sustainment for up to 3 years, in support of the Canadian Multi-Mission Aircraft project.

Notes:

Key facts

Key messages

Background

The aim of the Canadian Multi-Mission Aircraft (CMMA) project is to replace the CP-140 Aurora fleet with a new fleet that will provide long-range, long-endurance and multi-mission capability. The current CP-140 Aurora fleet consists of 14 aircraft which were originally procured in 1980 primarily for maritime patrol and anti-submarine warfare. The estimated life expectancy of the CP-140 Aurora fleet is 2030.

Since its acquisition, the aircraft has been used for a variety of operations at home and abroad including surveillance of Canada’s coastal waters, anti-submarine warfare, maritime and overland intelligence, surveillance, strike coordination, disaster relief missions and many other functions.

Between June and December 2021, Canada contracted the services of a third party consultant to assess the CMMA requirements. This multi-phased assessment concluded that the P-8A Poseidon is the only readily available military off-the-shelf capability that meets all of CMMA’s requirements.

PSPC, in collaboration with the DND and ISED, has engaged with industry and Canada’s closest allies to determine the best capability to replace the aging CP-140.

Feedback received by Canada demonstrated that the only solution that meets all of the CMMA requirements within the timeframe required to avoid a capability gap is the Boeing P-8A Poseidon. It should be noted that the P-8A is also owned and operated by all of Canada’s closest defence partners.

Diversity and inclusion in procurement

Increasing Indigenous involvement in procurement

Issue

PSPC in partnership with Indigenous Services Canada (ISC) and TBS are actively working to increase the participation of Indigenous businesses in federal procurement.

Key facts

Key messages

If pressed on the 5% commitment:

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