Public Services and Procurement Canada’s 2025 to 2026 Departmental Plan

© His Majesty the King in Right of Canada, as represented by the Minister of Public Services and Procurement Canada, 2025, ISSN: 2371 8846

• Description
• Quality of life impacts
• Indicators, results and targets
• Plans to achieve results
• Key risks
• Planned resources to achieve results
• Related government priorities
• Program inventory
• Summary of changes to reporting framework since last year

As the central purchaser for the Government of Canada, PSPC is committed to ensuring procurement is well-managed and achieves best value for Canadians. Through its procurement activities, PSPC will continue to support federal departments and agencies in delivering programs for Canadians.

Results PSPC plans to achieve:

• ensure that client departments continue to receive best value by promoting competitive processes, and incorporating clauses that reward suppliers to deliver on time and on budget
• limit the outsourcing of professional services to scopes of work that cannot be performed by employees
• continue to work with partners to implement the Canadian Dental Care Plan, a long-term, Canada-wide dental care program with the scope and scale needed to serve all eligible Canadians
• continue to improve documentation and compliance monitoring throughout the procurement process to better inform decision-making, under the guidance of the Chief, Contract Quality Assurance and Records Compliance Office

Defence and marine procurement

PSPC will continue to deliver key equipment, supplies, and services in support of Canada's updated defence policy and the NSS.

Results PSPC plans to achieve:

• provide members of the Canadian Armed Forces and the Canadian Coast Guard (CCG) with the equipment they need to maintain current and future operational readiness through the continued management of shipbuilding and ship repair, aerospace acquisition and modernization, and vehicle and munitions acquisition projects and contracts
• collaborate with other government departments to support the implementation of the Icebreaker Collaboration Effort Pact, a trilateral partnership with Finland and the United States, to enhance the collective capacity to design, produce, and maintain Arctic and polar icebreakers and other capabilities
• implement the Canadian Program for Cyber Security Certification, in collaboration with the department of National Defence (DND) and the Standard Council of Canada, to strengthen Canadian defence supply chain protections and help safeguard the Government of Canada’s unclassified contractual information
• continue to advance the risk-based approach to contract approval for defence procurements, seeking contracting authority through that stream on behalf of DND for eligible procurements, enabling a streamlined contract approval process
• continue to advance the defence procurement reform by leading work to identify areas for improvement, working in partnership with DND, Innovation, Science and Economic Development (ISED) and the Treasury Board of Canada Secretariat (TBS)

Procurement modernization

PSPC will continue to advance initiatives to modernize procurement, simplify procurement practices, and ensure value for money is being achieved.

Results PSPC plans to achieve:

• continue to implement digital delivery with the ongoing roll-out of EPS, and proceed with the launch of a new buyer portal and buyer’s guide to increase efficiencies
• implement the Vendor Performance Management program in an increased number of procurement areas, resulting in a more collaborative relationship with vendors, fostering performance improvement, and delivering better contractual outcomes for Canada
• continue the phased implementation of the Contract Modernization Program, to ensure consistency, reduce complexity of government contracts and make procurement less burdensome for suppliers
• begin offering the modernized contract model and new assembly tool to other government departments to improve the buyer experience across the government
• move forward with the full implementation of a multi-year procurement data and analytics strategy to continue the strategic transition towards data-driven decision-making

Small and medium-sized enterprise (SME) and supplier engagement

In support of supplier engagement initiatives, the department will continue to explore approaches to enhancing the involvement of SMEs in PSPC-led procurements.

Results PSPC plans to achieve:

• continue to engage SMEs to increase their participation in federal procurement by helping to understand how the government buys goods and services, raising awareness of opportunities, and providing information services through Procurement Assistance Canada (PAC)
• work with SMEs to address key challenges and constraints by reducing the barriers that prevent them from participating in federal procurement, advise government buyers and policy makers on SMEs' concerns, and recommend improvements to the federal procurement process
• strengthen engagement with partners by developing events adapted to the specific needs of businesses, clients and procurement stakeholders
• target outreach and assistance efforts toward businesses owned or led by underrepresented business communities, including, persons with disabilities, Black and racialized Canadians, women and 2SLGBTQQIA+ Canadians
• award SMEs operating in Canada 25% of the dollar value of contracts issued by PSPC

Procuring from Indigenous businesses

In 2025 to 2026, PSPC will continue to support and work closely with Indigenous Services Canada (ISC), TBS, and Indigenous partners in the co-development and implementation of a new longer-term Transformative Indigenous Procurement Strategy to increase Indigenous inclusion and participation in federal procurement.

Results PSPC plans to achieve:

• continue to implement the Indigenous procurement 5% target mandate by building capacity among Indigenous suppliers through different measures, such as Limited to Indigenous Offers, subcontracting and structured and unbundled opportunities, all aimed at increasing Indigenous participation in procurement activities and providing employment, skills and training development
• continue to increase internal education on upholding Modern Treaty procurement obligations, and achieving economic Reconciliation with Indigenous Peoples
• continue to lead Indigenous business information sessions through PAC to provide information on Indigenous procurement opportunities and supports, as well as Buyers’ Expos, which allow for suppliers to talk to government buyers directly and learn more about upcoming procurement opportunities

Green and clean technology procurement

In 2025 to 2026, PSPC will continue to undertake measures to integrate environmental considerations into federal purchasing and leverage federal spending to accelerate the transition to a net-zero carbon and circular economy.

Results PSPC plans to achieve:

• promote the use of standard environmentally preferable packaging language in all PSPC-administered procurements
• support TBS in the implementation of 2 recently developed standards—the Standard on Embodied Carbon in Construction and the Standard on the Disclosure of Greenhouse Gas Emissions and the Setting of Reduction Targets
• work with TBS and suppliers to develop category-specific green procurement criteria in all phases of the procurement of goods and services that have a high environmental impact
• advance work on a multi-year project to develop a Green Public Procurement Tool (GPPT) for federal assets, a web-based search platform that includes a vast catalog of green and cleantech products to support procurement professionals in making environmentally responsible purchasing decisions
• work with key partners, such as the Clean Growth Hub, and external stakeholders, such as MaRS Discovery District, to further promote purchasing of clean technology within the federal government and onboard Canadian cleantech products in the GPPT platform
• continue to facilitate the purchase of zero-emission and hybrid vehicles by federal departments and agencies to increase the number of zero-emission vehicles available on standing offers by engaging with existing manufacturers to expand their offerings and onboarding new manufacturers

Ethical procurement

As the Government of Canada central purchaser, PSPC is committed to maintaining the highest ethical standards for public procurement, both as a common service provider and in support of other government departments.

Results PSPC plans to achieve:

• safeguard federal procurement supply chains from human trafficking, forced labour and child labour by ensuring that goods and services are procured from ethical suppliers
• introduce and implement a policy on ethical procurement to further define departmental commitments and support the development of programs and initiatives

Reciprocal procurement

Reciprocal procurement policies will increase opportunities for Canadian businesses, including SMEs, as well as those of Canada’s trade partners.

Results PSPC plans to achieve:

• continue to support the department of Finance Canada and Global Affairs Canada (GAC) in developing reciprocal procurement policies to ensure goods and services are procured from countries that grant Canadian businesses a similar level of market access

PSPC will continue integrating gender-based analysis plus (GBA Plus) to ensure its key initiatives and programs produce inclusive procurement opportunities and represent the diversity of the Canadian society. The department applied GBA Plus as a tool in procurements containing supplier diversity criteria to ensure that the government purchases goods and services from a diverse range of suppliers.

Through PAC, the department will continue to provide targeted support and conduct outreach activities with underrepresented groups, including women-owned businesses, to help them do business with the Government of Canada.

For detailed information on how PSPC is applying GBA Plus to its various programs and activities, please consult PSPC’s Supplementary information table on Gender-based analysis plus.

PSPC’s programs and initiatives under the purchase of goods and services core responsibility support the implementation of the 2030 Agenda for Sustainable Development Goals (SDGs). The department advances initiatives to increase the diversity of bidders, contracts awarded to Indigenous businesses, ethical procurement, and practices to reduce GHG emissions and support green procurement. The department works collaboratively with provinces, territories, municipalities, Indigenous Peoples, business owners, industry associations, and stakeholders to deliver an economic agenda that leverages the government's purchasing power to increase access to economic opportunity for a greater diversity of Canadians. These initiatives contribute towards:

• goal 5: champion gender equality
• goal 8: encourage inclusive and sustainable economic growth in Canada
• goal 10: advance Reconciliation with Indigenous Peoples and take action to reduce inequality
• goal 12: reduce waste and transition to zero-emission vehicles
• goal 17: strengthen partnerships to promote global action on sustainable development

More information on PSPC’s contributions to Canada’s Federal Implementation Plan on the 2030 Agenda and the Federal Sustainable Development Strategy (FSDS) can be found in PSPC’s Departmental Sustainable Development Strategy.

• Description
• Quality of life impacts
• Indicators, results and targets
• Plans to achieve results
• Key risks
• Planned resources to achieve results
• Related government priorities
• Program inventory
• Summary of changes to reporting framework since last year

PSPC’s responsibilities for payments directly impact individuals and businesses on a daily basis, and provide the backbone of financial security to millions of Canadians in receipt of pay, pension, and government social benefits payments.

Results PSPC plans to achieve in supporting the minister as the Receiver General for Canada:

• continue to manage the operations of the federal treasury, maintain the government’s central treasury systems, and present the financial position of Canada and audited financial statements annually
• continue to implement the Receiver General renewal, stabilization and modernization agenda to provide improved value-added user experience
• improve payments and revenue collection efficiency by investing in projects to modernize its service offerings
• assess ways to increase flexibility to adopt payment industry innovations, offer Canadians a choice of payment options, revitalize the treasury systems and processes, consolidate treasury databases to improve data quality as well as fraud prevention and detection

As one of Canada’s largest pension administrators, PSPC provides services to more than 1 million active and retired members of 8 different federal public sector pension plans: Public Service, Royal Canadian Mounted Police, Canadian Armed Forces (Regular and Reservists), Members of Parliament, the Diplomatic Corps, Federally Appointed Judges, and Lieutenant Governors.

Results PSPC plans to achieve:

• enhance the client experience through the ongoing transition to a secure, user-centric, digital first service delivery model
• advance pension web renewal initiatives to improve engagement with plan members and allow active and retired members to access increased services online, when and where they want

PSPC is responsible for administering pay for more than 430,000 government pay accounts, while also delivering full compensation services to approximately 250,000 Government of Canada employees. Ongoing business activities include delivering on complex mandatory and legislative requirements (for example, collective agreement implementation), ensuring that the current pay information technology ecosystem is maintained properly and that the personal and the financial data it contains is not compromised. The department is also providing compensation-related training and information to functional communities across the Government of Canada. The stabilization of pay processing and ensuring, in collaboration with government departments, that public servants are paid accurately and on time continues to be a top priority for the department.

Results PSPC plans to achieve:

• continue to share information on activities with stakeholders (for example, employees, unions, and media) as part of transparency by design, in partnership with the TBS Office of the Chief Human Resources Officer
• continue the work on automations and bulk processing to reduce the frequency of manual intervention in pay processing to minimize errors
• continue efforts to process new intake within service standards and eliminate transactions that are older than 1 year
• contribute to the reduction of HR system integration issues by continuing the onboarding of departments on the MyGCHR platform
• standardize processes, practices and systems to ensure that TBS can enable consistent HR management across departments
• oversee the ongoing work to test, build and validate a potential new system for HR and Pay and get ready for the eventual implementation of the new system

The Receiver General is a world leader for best practices in government accounting.

Results PSPC plans to achieve:

• collaborate with partners to improve and modernize the Public Accounts
• advance the Receiver General renewal and modernization agenda by investing in modern technology, exploring innovative opportunities and possible partnerships to ensure government-wide financial reports remain a modern, trusted and accessible source of financial data in Canada

PSPC will continue analyzing pay‑related data, looking at the gender, age, and language composition of employees with a pay case to guide future planning and decision‑making to improve pay processing outcomes for diverse groups of employees. In addition, PSPC has developed a GBA Plus strategy to ensure a cohesive and coordinated approach to GBA Plus across its pay-related activities.

PSPC will continue to collect demographic and diversity‑related data via pension member satisfaction surveys to assess how current services are delivered to diverse groups and identify opportunities for improvement and innovation.

For detailed information on how PSPC is applying GBA Plus to its various Programs and activities, please consult PSPC’s Supplementary information table on Gender-based analysis plus.

• Description
• Quality of life impacts
• Indicators, results and targets
• Plans to achieve results
• Key risks
• Planned resources to achieve results
• Related government priorities
• Program inventory
• Summary of changes to reporting framework since last year

Advance the office portfolio through the Government of Canada Portfolio Reduction Plan

PSPC will continue to right-size its office portfolio, reducing it by up to 50% over 10 years, while providing sufficient and functional office space to support federal departments and agencies to deliver on their programs and mandates. To achieve this, PSPC will work with over 100 client departments to carry out their long-term accommodation plans, focusing on unassigned seating and shareable spaces for more than 300,000 federal employees.

Results PSPC plans to achieve:

• advance the Government of Canada’s Office Portfolio Reduction Plan by right-sizing its office portfolio, accelerating lease terminations, and disposing of underused federal properties
• optimize workplaces across Canada for federal employees through efficient and cost-effective modernization initiatives to support the implementation of unassigned and shareable spaces for federal employees, and advancing key renovation projects

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

The department will continue to carry out its important work towards conserving Canada’s heritage by rehabilitating and restoring places and buildings of national significance. Buildings of national significance encompass both heritage assets and structures that serve the Canadian population. These projects aim to meet modern regulations and needs while preserving essential historical features and incorporating considerations for employee wellness, universal accessibility, and environmental sustainability. Notable examples include the Connaught Building, the Supreme Court of Canada building, the West Memorial building, the Lester B. Pearson building, and the Montreal Judicial Complex.

Protect the integrity, value and usefulness of engineering assets and improve interprovincial crossings in the National Capital Region

PSPC operates a specialized portfolio of 24 engineering assets across Canada. The portfolio contains 7 central heating and cooling plants and associated distribution networks that form part of the NCR District Energy System, in addition to several bridges, dams, a highway and marine infrastructure. PSPC is committed to protecting its engineering assets’ integrity, value and usefulness to ensure they are safe for Canadians.

Results PSPC plans to achieve:

• continue the energy services modernization project under the Energy Services Acquisition Program (ESAP) to upgrade energy centers and the distribution network, modernize and decarbonize the federal district energy system that serves 80 buildings in the NCR, including the Parliament
• advance the replacement of the LaSalle Causeway's century-old Bascule Bridge with a new permanent structure and renew the Causeway’s other civil infrastructure

To improve interprovincial transportation in the NCR, PSPC will continue to invest in rehabilitating and maintaining existing crossings. PSPC will advance the procurement process for replacing the Alexandra Bridge and initiate early-stage planning for an additional bridge in the eastern NCR. Additionally, to extend the lifespan, ensure safety, and enhance resilience to climate-related events for the Chaudière Bridge and Macdonald-Cartier Bridge, PSPC will undertake necessary improvements.

Long term vision and plan for the Parliamentary Precinct

PSPC is continuing to advance the Long-Term Vision and Plan (LTVP) for the Parliamentary Precinct. The core objective of the current LTVP was to launch the rehabilitation of the Centre Block. Now, efforts are focused on updating the LTVP for the next 50-year horizon and shifting to a campus-wide approach, which incorporates key considerations such as security, environmental sustainability, accessibility, and the visitor experience.

Results PSPC plans to achieve:

• complete landscape, Centre Block, and Parliament Welcome Centre designs by fall 2025
• rebuild the Centre Block and build the Parliament Welcome Centre, starting with structural work and the restoration of the east and west façades, alongside the restoration of heritage assets

PSPC will also continue the rehabilitation and modernization of Block 2 to transform functionally obsolete heritage buildings into modern, sustainable, and accessible facilities for Parliament.

Results PSPC plans to achieve:

• advance design to reach a 90% schematic design milestone in winter 2025
• stand up the construction site and commence abatement and removal of existing architectural finishes, including heritage components

Laboratories Canada Strategy

PSPC will continue to advance the Laboratories Canada Strategy, guided by the LTVP, which supports the Government of Canada’s goal to strengthen federal science and replace aging federal science infrastructure with modern, accessible, and sustainable laboratories.

Results PSPC plans to achieve:

• open the Regulatory and Security Science (RSS) Centre for plant health in Sidney, British Columbia, in 2025, a modernized facility that will provide rapid response testing for regulated plant diseases
• advance design and begin construction of the RSS main project in the NCR, providing federal scientists with a sustainable, collaborative, and state-of-the-art facility
• finalize the design for the new Transportation Safety and Technology Science facility in the NCR, which will offer collaborative spaces for testing, research, and development in transportation safety technologies across aviation, marine, railway, pipeline, and road modes
• advance design and begin construction in 2026 of the TerraCanada NCR facility, which will integrate government science capabilities with academia on a shared campus
• continue construction of the Atlantic Science Enterprise Centre (ASEC) in Moncton, New Brunswick, which will bring together programs to protect and sustain Atlantic freshwater and coastal ecosystems
• advance procurement for the Cultural Heritage Science (CHS) hub project, which will foster federal collaboration to accelerate innovation and preserve Canada’s cultural heritage artifacts for future generations

Advance sustainability and the green agenda

PSPC plays a vital role in advancing the Government of Canada’s greening initiatives by consistently embedding sustainability into its daily operations and investment decisions. PSPC plans to continue evaluating and refining its sustainability strategies to ensure alignment with federal environmental targets, including the reduction of GHG emissions and increased diversion of plastic waste. Additionally, PSPC will continue remediating contaminated sites, making progress in purchasing clean energy and sourcing materials with lower embodied carbon.

Improve accessibility of federal buildings

PSPC is committed to becoming a leader in accessibility for the Government of Canada. To achieve its accessibility goals, PSPC has launched the Accessible Built Environment Program, which aims to go beyond meeting legal requirements and to exceed new accessibility standards. Furthermore, PSPC plays a key role in promoting accessibility in the public service by creating policies and guidelines that encourage inclusive design in projects across the country, including a directive for inclusive washrooms.

Support Reconciliation efforts

PSPC is committed to advancing Reconciliation by fostering stronger relationships with Indigenous Peoples through meaningful consultation, equitable engagement, and active collaboration. To align with the federal goal of awarding at least 5% of contracts to Indigenous-led businesses, PSPC will actively review projects to identify and expand opportunities for Indigenous involvement in all stages of projects.

PSPC will continue integrating social procurement objectives into new real property service contracts for buildings and will ensure accessible and inclusive designs in federal accommodations projects. PSPC will also continue collaborating with various Indigenous organizations and communities to ensure that Indigenous Peoples are involved in the restoration and modernization of Canada’s Parliamentary Precinct.

For detailed information on how PSPC is applying GBA Plus to its various Programs and activities, please consult PSPC’s Supplementary information table on Gender-based analysis plus.

PSPC planned activities under its Property and Infrastructure core responsibility, such as GCworkplace, the plan to achieve a carbon neutral portfolio, the rehabilitation of major assets and the management of federal contaminated sites, support Canada’s efforts to address the UN 2030 Agenda and the SDGs. These initiatives contribute towards:

• goal 7: increase Canadian’s access to clean energy
• goal 11: improve access to affordable housing, clean air, transportation, parks, and green spaces, as well as cultural heritage in Canada
• goal 12: reduce waste and transition to zero-emission vehicles
• goal 13: take action on climate change and its impacts

More information on PSPC’s contributions to Canada’s Federal Implementation Plan on the 2030 Agenda and the FSDS can be found in PSPC’s Departmental Sustainable Development Strategy.

• Description
• Quality of life impacts
• Indicators, results and targets
• Plans to achieve results
• Key risks
• Planned resources to achieve results
• Related government priorities
• Program inventory
• Summary of changes to reporting framework since last year

To best support the government and Parliament in serving Canadians in their official language of choice, PSPC, through the Translation Bureau, will further advance the modernization of its tools and services to provide cutting-edge and high-quality linguistic services.

Results PSPC plans to achieve:

• adapt to the rapid pace of digital transformation in linguistic services by leveraging AI in the translation process
• continue to collaborate with key partners to increase capacity in interpretation for official and Indigenous languages, while ensuring the health and safety of interpreters

The department continues to take steps to strengthen its approach to better know who the Government of Canada conducts business with and the potential risk that they may pose.

Results PSPC plans to achieve:

• further its efforts in the client-focused delivery approach to safeguarding sensitive and strategic government information and assets by improving processes in the Contract Security Program (for example, targeted security screenings) and in the Controlled Goods Program (for example, improve delivery against service standards)
• continue to negotiate bilateral security instruments with foreign partners to open new procurement opportunities for Canadian businesses in collaboration with GAC and DND
• identify and deploy measures to further mitigate threat risks associated with suppliers of concern to better protect supply chain integrity
• continue to explore ways to mitigate the risk posed by instances of fraud and misconduct, which includes a variety of tools and activities, such as recovery of funds associated with illegitimate payments

PSPC continues to focus on strategic initiatives to ensure federal organizations have the essential services and tools they need.

Results PSPC plans to achieve:

• continue to make the renewal of the Seized Property Management Information System a priority to provide a better user experience and additional functionality
• enhance and evolve government-wide services and solutions by providing digitally enabled environments such as cloud, increasing information processing capacity and integrating modern tools that enable program services within the department and throughout the Government of Canada as per Canada’s Digital Ambition
• accelerate the modernization of the legacy information technology infrastructure to ensure the reliability and security of the department’s business operations
• advance the implementation of enterprise solutions to better align departmental workflows and processes to enable improved services to Canadians

PSPC is continuously improving data collection methods and will continue to identify new opportunities to inform and assess impacts of program changes. Through the Translation Bureau, the department will also continue working towards increasing translation and interpretation services in Indigenous languages and providing interpretation services in American Sign Language and Langue des signes québécoise for Canadians who are deaf, deafblind, and deafened.

For detailed information on how PSPC is applying GBA Plus to its various Programs and activities, please consult PSPC’s Supplementary information table on Gender-based analysis plus.

PSPC planned activities under its Government-wide support core responsibility that support Canada’s efforts to address to UN 2030 Agenda and the SDGs include the continued collaboration with other government departments and agencies to increase access to Indigenous languages, efforts to expand capacity in Indigenous language translation and interpretation services, activities related to GCSurplus and the management of a national battery recycling program. These initiatives contribute towards:

• goal 10: advance Reconciliation with Indigenous Peoples and take action to reduce inequality
• goal 12: reduce waste and transition to zero-emission vehicles

More information on PSPC’s contributions to Canada’s Federal Implementation Plan on the 2030 Agenda and the FSDS can be found in PSPC’s Departmental Sustainable Development Strategy.

• Description
• Quality of life impacts
• Indicators, results and targets
• Plans to achieve results
• Key risks
• Planned resources to achieve results
• Related government priorities
• Program inventory
• Summary of changes to reporting framework since last year

Results OPO plans to achieve:

• exchange information and raise awareness of procurement issues by engaging Canadian suppliers and federal organizations to learn about procurement-related challenges and opportunities, and to inform them about OPO services

As per OPO’s commitment “we are here to help”, the Office will offer no-fee dispute resolution services to suppliers and federal organizations when disputes arise during the performance of a contract.

Results OPO plans to achieve:

• seek to resolve procurement-related issues and disputes as quickly and informally as possible by re-establishing lines of communication between suppliers and departments with the help of OPO’s certified mediators
• help the parties to a federal contract resolve their disputes, avoid potential litigation, and reach a settlement agreement when issues cannot be resolved informally through OPO’s formal mediation services

Results OPO plans to achieve:

• address procurement-related issues by reviewing supplier complaints with respect to the award of federal contracts for goods below $33,400 and services below $133,800
• review supplier complaints regarding the administration of federal contracts regardless of dollar value
• further review the procurement practices of federal organizations to assess their fairness, openness and transparency, to be published on OPO’s website to share both good practices and recommendations for improvement identified in the reviews

OPO will continue to apply a diversity and inclusion lens to all its interactions with third parties, including government departments, suppliers, and the general public. Over the course of the fiscal year, OPO will also participate actively in the Diversity and Inclusion Subcommittee of the Canadian Federation of Ombuds Offices, which is a forum for federal ombuds organizations across Canada to share information regarding programs, initiatives, and best practices that will foster a diverse, inclusive, and equitable workplace.

For detailed information on how OPO is applying GBA Plus to its various Programs and activities, please consult the Supplementary information table on Gender-based analysis plus.

• Description
• Plans to achieve results
• Planned resources to achieve results
• Planning for contracts awarded to Indigenous businesses

• Spending
• Funding
• Future-oriented condensed statement of operations
• Human resources

For fiscal year 2025 to 2026, the department’s planned expenditures on programs and services totals $7,263 million. Examples of planned activities under each core responsibility and internal services for 2025 to 2026 are:

Purchase of goods and services ($187 million):

to advance the modernization of procurement practices, deliver on key procurements in support of Canada’s defence policy and continue to advance government-wide initiatives to increase the diversity of suppliers.

Payments and accounting ($1,109 million):

to continue to administer and deliver, in collaboration with government departments, timely and accurate pay and benefits for all public servants as well as services to active and retired pension plan members.

Property and infrastructure ($5,385 million):

to continue to advance on major property and infrastructure projects, optimize workplaces for federal employees, advance the Government of Canada’s Office Portfolio Reduction Plan by right-sizing its office portfolio and continue implementing the Laboratories Canada Strategy.

Government-wide support ($192 million):

to work on various priorities such as digital transformation in linguistic services, modernize services and tools to enhance client service, increase information processing capacity and safeguard sensitive and strategic government information and assets.

Procurement Ombud ($5 million):

to review the procurement practices of federal organizations to promote fairness, openness and transparency, review complaints from Canadian suppliers and provide alternative dispute-resolution services for suppliers and federal organizations.

Internal services ($385 million):

to support all 10 categories of internal services within the department so that it can meet its corporate obligations and deliver its programs. Amongst other things, the department will continue the implementation of various enterprise solutions and functionalities to support its Digital Strategy, develop and launch its renewed 2025 to 2029 Diversity and Inclusion Action Plan, pursue the implementation of the OneHR initiative and continue work to optimize its security program by delivering on the priorities established in the newly developed 2025 to 2028 Departmental Security Plan.

Please note that this is not a comprehensive list of all the planned activities under each core responsibility and internal services for 2025 to 2026. For more details, please consult the sections for each core responsibility and internal services in this report.

The overall $1,018 million increase between the 2022 to 2023 actual spending and the 2024 to 2025 forecast spending is explained by the following:

The department spent approximately $925 million more in fiscal year 2023 to 2024 than in 2022 to 2023. The increase is primarily due to:

• Payments and accounting:
  • the increased spending to help stabilize the public service pay system, eliminate the backlog of pay issues, increase pay service delivery capacity in addition to activities related to the Next Generation Human Resources and Pay Initiative following the transfer from Shared Services Canada (SSC)
  • the timing between payments and recoveries of expenditures under the Payment in Lieu of Taxes program, mainly attributable to the payments to the City of Montréal and recovery from the Aéroports de Montréal
• Property and infrastructure:
  • expenditures to deliver on the department’s property and infrastructure projects, such as the major recapitalization of the Place du Portage III, the ESAP, Les Terrasses de la Chaudière Building Envelope Rehabilitation and Modernization, the Centre Block Rehabilitation Program and the purchase of the 181 Queen Street building in Ottawa for the House of Commons accommodations
  • additional funding received for the protection from inflation and price variations related to space requirements for real property elements over which PSPC has very little or no control, such as rent, cost of utilities and accommodation costs

The department plans to spend approximately $93 million more in fiscal year 2024 to 2025 than in 2023 to 2024. The increase is primarily due to:

• Payments and accounting:
  • the transfer of the Next Generation Human Resources and Pay Initiative from SSC to PSPC and additional funding received for Card Acceptance and Postage fees. This increase is partially offset by the timing differences between payments to municipal administrations and recoveries from other government organizations

Complete financial information from previous years is available on the Finances section of GC InfoBase.

For 2027 to 2028, the department plans to spend $2,693 million less than in 2025 to 2026. The decrease is mainly due to:

• Purchase of goods and services:
  • the end of incremental funding received in Budget 2023 for the cloud-based Electronic Procurement Solution post implementation phase
• Payments and accounting:
  • the end of incremental funding received in order to stabilize the pay operations and decrease the backlog of pay issues, as well as the Next Generation Human Resources and Pay Initiative
• Property and infrastructure:
  • reduced funding associated with major projects such as Les Terrasses de la Chaudière Modernization and Building Envelope Rehabilitation, Lester B. Pearson Major Renovation and the ESAP as a result of the implementation of these planned programs of work
• Government-wide support:
  • savings generated from technologies such as neural machine translation, streamlined processes and attrition for Linguistic Services
  • a decrease in funding for remote and hybrid parliamentary services, the end of funding for the G7 Summit, and the end of incremental funding for the Industrial Security Systems Transformation (ISST) project
• Internal services:
  • the end of incremental funding received for internal services related to pay administration
  • fluctuations in funding for information technology projects such as the departmental laptop evergreening, the Government of Canada Trusted Platform and the Digital Convergence
  • incremental funding received in fiscal year 2025 to 2026 for the S/4HANA project

Funding will be adjusted should future approvals be received.

The department’s major sources of revenues netted against expenditures are collected through the Real Property Federal Accommodation and Infrastructure Program as well as through its 3 active revolving funds.

The Real Property Services Revolving Fund collects most revenues by providing real property services such as project delivery, facility management and advisory services. The Real Property Federal Accommodation and Infrastructure Program generates revenues mainly through:

• provision of spaces, conference rooms and parking
• preparation of spaces for occupancy
• production and distribution of utilities

Revenues are also collected through the Translation Bureau Revolving Fund for translation, interpretation and other linguistic services, as well as through the Optional Services Revolving Fund mainly for travel and transportation management services.

Information on the alignment of PSPC’s spending with Government of Canada’s spending and activities is available on GC InfoBase.

This bar chart represents the actual spending from fiscal year 2022 to 2023 to fiscal year 2023 to 2024, the forecast spending for fiscal year 2024 to 2025 and the planned spending for fiscal year 2025 to 2026 to fiscal year 2027 to 2028, broken down between statutory and voted expenditures.

The variance between the 2024 to 2025 forecast spending and the 2025 to 2026 through 2027 to 2028 planned spending is mainly attributable to prior year technical adjustments, reprofiles, carry-forwards and additional funding received in the 2024 to 2025 Supplementary Estimates and included in the forecast spending but not yet known for the 2025 to 2026 through 2027 to 2028 fiscal years.

For 2025 to 2026, the department plans to spend approximately $1,795 million more than in the 2024 to 2025 forecasted spending. The variance in net planned spending reflects an increase in funding associated with the Investment Plan to advance major projects such as Les Terrasses de la Chaudière Modernization and Building Envelope Rehabilitation, Lester B. Pearson Major Renovation, and the ESAP. The variance is also due to an increase in funding for the Next Generation Human Resources and Pay Initiative. Funding will be adjusted should future approvals be received.

Additional analysis of the variances between actual spending and forecast spending is provided in the 3-year spending summary section while analysis of variances in the planned spending is provided in the Planned 3-year spending section.

For further information on PSPC’s departmental appropriations, consult the 2025 to 2026 Main Estimates.

The net cost of operations is forecasted to increase by $428.9 million in 2025 to 2026 compared to 2024 to 2025. This increase is mainly attributable to additional funding received in 2025 to 2026 to advance the Next Generation Human Resources and Pay System Initiative and for the protection from inflation and price variations related to space requirements for real property elements over which PSPC has very little or no control, such as rent, cost of utilities and accommodation costs, as well as funding received to continue working on the Government of Canada’s Office Portfolio Reduction Plan.

A more detailed Future-oriented Statement of Operations and Notes for 2025 to 2026, including a reconciliation of the net cost of operations with the requested authorities, is available on PSPC’s website.

The overall 1,833 FTEs increase between the fiscal year 2022 to 2023 and 2024 to 2025 is mainly due to:

Payments and accounting:

• additional FTEs to stabilize the pay operations and to decrease the backlog of pay issues, and the transfer of the Next Generation Human Resources and Pay Initiative from SSC to PSPC

Property and infrastructure:

• slight and controlled FTEs growth in the Real Property Services program, correlated to its business volumes to deliver on PSPC and other government departments’ projects while addressing the Government and Real Property Services priorities

The overall decrease of 4,093 FTEs between the fiscal year 2025 to 2026 and 2027 to 2028 is mainly due to:

• the end of incremental funding received in order to stabilize the pay operations, decrease the backlog of pay issues, as well as the Next Generation Human Resources and Pay Initiative. Planned FTEs will be adjusted should future approvals be received
• not replacing employee departures under the Translation Bureau Revolving Fund, except for key and specialized roles. This reduction is enabled by efficiency gains from streamlined processes and technologies such as neural machine translation

Appropriate minister(s)

The Honourable Joël Lightbound, P.C., MP

Institutional head

Arianne Reza

Ministerial portfolio

Government Transformation, Public Works and Procurement

Enabling instrument(s)

The Department of Public Works and Government Services Act establishes the Department of Public Services and Procurement Canada.

Year of incorporation / commencement

1841

Other

The Minister of Public Services and Procurement has responsibilities under 19 other acts. The most important ones are:

• Shared Services Canada Act
• National Capital Act
• Canada Post Corporation Act
• Expropriation Act
• Defence Production Act
• Seized Property Management Act
• Surplus Crown Assets Act
• Financial Administration Act

Mailing address

Public Services and Procurement Canada
Portage III Place du Portage
11 Laurier St
Gatineau QC  K1A 0S5

Email

questions@tpsgc-pwgsc.gc.ca

Website(s)

For more information on PSPC’s programs and services, please communicate with us through our general enquiries webpage.

You can follow PSPC on Facebook, LinkedIn, X (Twitter), Instagram, and YouTube.

appropriation (crédit)

Any authority of Parliament to pay money out of the Consolidated Revenue Fund.

budgetary expenditures (dépenses budgétaires)

Operating and capital expenditures; transfer payments to other levels of government, departments or individuals; and payments to Crown corporations.

core responsibility (responsabilité essentielle)

An enduring function or role performed by a department. The intentions of the department with respect to a core responsibility are reflected in one or more related departmental results that the department seeks to contribute to or influence.

Departmental Plan (plan ministériel)

A report on the plans and expected performance of an appropriated department over a 3-year period. Departmental Plans are usually tabled in Parliament each spring.

departmental result (résultat ministériel)

A consequence or outcome that a department seeks to achieve. A departmental result is often outside departments’ immediate control, but it should be influenced by program-level outcomes.

departmental result indicator (indicateur de résultat ministériel)

A quantitative measure of progress on a departmental result.

departmental results framework (cadre ministériel des résultats)

A framework that connects the department’s core responsibilities to its departmental results and departmental result indicators.

Departmental Results Report (rapport sur les résultats ministériels)

A report on a department’s actual accomplishments against the plans, priorities and expected results set out in the corresponding Departmental Plan.

full-time equivalent (équivalent temps plein)

A measure of the extent to which an employee represents a full person-year charge against a departmental budget. For a particular position, the full-time equivalent figure is the ratio of number of hours the person actually works divided by the standard number of hours set out in the person’s collective agreement.

gender-based analysis plus (GBA Plus) (analyse comparative entre les sexes plus [ACS Plus])

Is an analytical tool used to support the development of responsive and inclusive policies, programs, and other initiatives. GBA Plus is a process for understanding who is impacted by the issue or opportunity being addressed by the initiative; identifying how the initiative could be tailored to meet diverse needs of the people most impacted; and anticipating and mitigating any barriers to accessing or benefitting from the initiative. GBA Plus is an intersectional analysis that goes beyond biological (sex) and socio-cultural (gender) differences to consider other factors, such as age, disability, education, ethnicity, economic status, geography (including rurality), language, race, religion, and sexual orientation.

Using GBA Plus involves taking a gender- and diversity-sensitive approach to our work. Considering all intersecting identity factors as part of GBA Plus, not only sex and gender, is a Government of Canada commitment.

government priorities (priorités gouvernementales)

For the purpose of the 2025 to 2026 Departmental Plan, government priorities are the high-level themes outlining the government’s agenda in the most recent Speech from the Throne.

horizontal initiative (initiative horizontale)

An initiative where 2 or more federal departments are given funding to pursue a shared outcome, often linked to a government priority.

Indigenous business (entreprise autochtone)

For the purpose of the Directive on the Management of Procurement Appendix E: Mandatory Procedures for Contracts Awarded to Indigenous Businesses and the Government of Canada’s commitment that a mandatory minimum target of 5% of the total value of contracts is awarded to Indigenous businesses, a department that meets the definition and requirements as defined by the Indigenous Business Directory.

non‑budgetary expenditures (dépenses non budgétaires)

Non-budgetary authorities that comprise assets and liabilities transactions for loans, investments and advances, or specified purpose accounts, that have been established under specific statutes or under non-statutory authorities in the Estimates and elsewhere. Non-budgetary transactions are those expenditures and receipts related to the government's financial claims on, and obligations to, outside parties. These consist of transactions in loans, investments and advances; in cash and accounts receivable; in public money received or collected for specified purposes; and in all other assets and liabilities. Other assets and liabilities, not specifically defined in G to P authority codes are to be recorded to an R authority code, which is the residual authority code for all other assets and liabilities.

performance (rendement)

What a department did with its resources to achieve its results, how well those results compare to what the department intended to achieve, and how well lessons learned have been identified.

performance indicator (indicateur de rendement)

A qualitative or quantitative means of measuring an output or outcome, with the intention of gauging the performance of an department, program, policy or initiative respecting expected results.

plan (plan)

The articulation of strategic choices, which provides information on how a department intends to achieve its priorities and associated results. Generally, a plan will explain the logic behind the strategies chosen and tend to focus on actions that lead to the expected result.

planned spending (dépenses prévues)

For Departmental Plans and Departmental Results Reports, planned spending refers to those amounts presented in Main Estimates.

A department is expected to be aware of the authorities that it has sought and received. The determination of planned spending is a departmental responsibility, and departments must be able to defend the expenditure and accrual numbers presented in their Departmental Plans and Departmental Results Reports.

program (programme)

Individual or groups of services, activities or combinations thereof that are managed together within the department and focus on a specific set of outputs, outcomes or service levels.

program inventory (répertoire des programmes)

Identifies all the department’s programs and describes how resources are organized to contribute to the department’s core responsibilities and results.

result (résultat)

A consequence attributed, in part, to a department, policy, program or initiative. Results are not within the control of a single department, policy, program or initiative; instead they are within the area of the department’s influence.

statutory expenditures (dépenses législatives)

Expenditures that Parliament has approved through legislation other than appropriation acts. The legislation sets out the purpose of the expenditures and the terms and conditions under which they may be made.

target (cible)

A measurable performance or success level that a department, program or initiative plans to achieve within a specified time period. Targets can be either quantitative or qualitative.

voted expenditures (dépenses votées)

Expenditures that Parliament approves annually through an appropriation act. The vote wording becomes the governing conditions under which these expenditures may be made.