Public Services and Procurement Canada
Response to parliamentary committees and external audits: 2024 to 2025 Departmental Results Report
On this page
- Response to parliamentary committees
- Response to audits conducted by the Office of the Auditor General of Canada (including audits conducted by the Commissioner of the Environment and Sustainable Development)
Response to parliamentary committees
Report 12
Departmental response to report 12
Government Response to Report 12: A Time For Change -Reforming Defence Procurement in Canada
Summary of report 12
The committee made 36 recommendations on reforming defence procurement in Canada with the aim of increasing efficiency and effectiveness of Canada’s defence procurement system. These recommendations touch all stages of procurement and impact the defence industry, Public Services and Procurement Canada (PSPC) as a common service provider and PSPC clients.
Actions taken to address recommendations for report 12
- In its response to the NDDN Report 12: A Time For Change – Reforming Defence Procurement In Canada, the Government of Canada either acknowledged or agreed with all 36 NDDN recommendations
- PSPC led the coordination and development of the Government Response (GR), contributing to 27 of the recommendations through close collaboration with key federal partners, including the Department of National Defence (DND), Canadian Coast Guard, Innovation, Science and Economic Development Canada, Global Affairs Canada, and the Privy Council Office
- PSPC’s progress in the 5 thematic areas of the GR include:
- Streamlining, simplifying, and improving procurement processes: In the fall 2023, PSPC established the Defence Procurement Review Office (DPRO) to coordinate and advance defence procurement reform. DPRO led a cross-departmental review of defence procurement policies and processes, the findings of which are contributing to and informing other initiatives of the Canada’s defence transformation agenda
- Enhancing defence funding and capabilities: PSPC is working with DND in exploring options for renewing and expanding Canada’s submarine fleet, acquiring a more modern, mobile, and effective tactical helicopter fleet, establishing northern operational support hubs, increasing its contributions to the integrated air and missile defence of Canada and North America, and exploring options for upgrading or replacing Canada’s tank and light armoured vehicle fleets
- Training and continuous improvement: PSPC continues to work with other Government Departments involved in the Defence Procurement Strategy to update procurement policies, enhance the skills of procurement personnel, and foster a culture of continuous learning and adaptation. Furthermore, work is underway to inform the establishment of a new Defence Procurement Agency to streamline the procurement of military equipment
- Enhancing collaboration and partnerships: PSPC is leading the Canadian efforts to support the Icebreaker Collaboration Effort (ICE Pact), a trilateral partnership with Finland and the United States that will address shared challenges in the Arctic to ensure the polar regions remain peaceful, cooperative, and prosperous
- Promoting transparency, accountability, and inclusivity: PSPC is collaborating with other Government departments and industry to improve communication about major projects, ensuring transparent processes, and conducting thorough analyses to address the needs of diverse groups. PSPC continues to engage with industry and is currently serving as chair of the Defence Industry Advisory Group
Report 20
Departmental response to report 20
Summary of report 20
The committee put forward 9 recommendations on refining the Public Service Health Care Plan (PSHCP) and addressing the unforeseen issues that came up during and following the changeover of the contract in July 2023. The recommendations included monitoring the performance of the Plan administrator on the first day when the contract came into force, and to make available to employees the service standards included in its contract with Canada Life.
- As the central procurement agent and contracting authority for the PSHCP, PSPC accepted the committee’s recommendations
- PSPC supported the Treasury Board of Canada Secretariat (TBS) as it worked with the Canada Life and the administration Authority to take corrective measures to settle claims found in arrears and make sure affected members are reimbursed in line with existing PSHCP provisions and governance
- PSPC supports TBS as it continues to work with Canada Life and partners to offer plan members a multi-channel communication approach that takes into consideration digital or online access limitations
- PSPC and TBS, when required, continue to highlight to Canada Life the importance of service in both official languages, as well as its contractual obligation to meet this requirement
- PSPC, in collaboration with TBS, will build on the lessons learned from the previous attempt to transition providers at the same time as implementing plan design changes to minimize potential operational risks in future contract implementations
For the future PSHCP retender:
- PSPC will support TBS as it consults and engages with the bargaining agents representing federal employees, and the National Association of Federal Retirees and persons with disabilities to inform future plan design recommendations
- PSPC, in collaboration with TBS, will consult with industry and stakeholders on the appropriate transition period for the contract
- PSPC, in collaboration with TBS, will examine the possibility of further transparency regarding service standards and performance reporting as a mandatory requirement for a future PSHCP solicitation and resulting contract. Industry consultations and broader consideration would be required to better understand any impact of these measures on the viability of competition and value for money
Report 41
Standing Committee on Public Accounts (PACP) Report 41: Rehabilitation of Parliament’s Centre Block
Departmental response to report 41
Government Response to Report 41: Rehabilitation of Parliament’s Centre Block
Summary of report 41
The Committee made 2 recommendations on PSPC presenting the PACP with the results of its Gender-based Analysis (GBA) Plus assessment for the Centre Block Rehabilitation Program and a letter confirming that it is publishing its Long Term Vision and Plan (LTVP) Annual Reports within the calendar year.
Actions taken to address recommendations for report 41
PSPC fulfilled both recommendations by providing the findings of the Centre Block GBA Plus assessment to PACP, as well as a confirmation that PSPC has published its LTVP Annual Report for 2022 to 2023 in December 2023. Of note, PSPC also published its LTVP Annual Report for 2023 to 2024 in December 2024.
Response to audits conducted by the Office of the Auditor General of Canada (including audits conducted by the Commissioner of the Environment and Sustainable Development)
Report 2
Report 2: Greening of Building Materials in Public Infrastructure
Departmental response to report 2
Report 2: Greening of Building Materials in Public Infrastructure
Summary of report 2
This audit focused on whether PSPC, TBS and Natural Resources Canada had used the Government of Canada’s purchasing power effectively to support and prioritize the use of low embodied carbon construction materials, including steel, aluminum, and concrete, in public infrastructure projects to contribute to environmental protection and sustainable development. It also focused on determining whether Infrastructure Canada made effective use of its funding programs in pursuit of that goal.
Actions taken to address recommendations for report 2
To implement the recommendations, PSPC will complete and finalize ongoing work started in December 2022, when the new TBS Standard on embodied carbon in construction was published, and fully integrate embodied carbon into existing quality control process for reviewing design mandate deliverables.
In order to address the recommendations, PSPC undertook 3 key interim milestones:
- Milestone A: Complete analysis of existing processes and policies that mandate quality control of design mandate deliverables with a target date for completion of Spring 2024
- Milestone B: Integration of a systematic and standardized process for challenging design deliverables to maximize embodied carbon reductions in construction projects
- Milestone C: Development and implementation of a monitoring system to measure effectiveness of the challenge function with the target date for completion of winter 2024
As of March 31 2025, Milestones A and B have been fully implemented. Milestone C is substantially implemented with a renewed implementation date of October 31, 2025.
Report 5
Report 5: Professional Services Contracts
Departmental response to report 5
Report 5: Professional Services Contracts
PSPC was not required to give a response as no recommendations were directed to PSPC.
Summary of report 5
The objective of this audit was to determine whether professional services contracts were awarded to McKinsey & Company in accordance with applicable policies (procurement compliance) and whether value for money for those contracts was obtained.
Actions taken to address recommendations for report 5
Not applicable, as no recommendations were directed to PSPC.
Report 10
Report 10: Industrial and Technological Benefits
Departmental response to report 10
Report 10: Industrial and Technological Benefits (PDF, 1,628 KB)
PSPC was not required to give a response as no recommendations were directed to PSPC.
Summary of report 10
The objective of this audit was to determine whether Innovation, Science and Economic Development Canada ensured the Industrial and Technological Benefits Policy met its objectives, as part of the Defence Procurement Strategy, for contracts managed in partnership with DND and PSPC.
Actions taken to address recommendations for report 10
Not applicable, as no recommendations were directed to PSPC.