2015-2016 Report on Plans and Priorities

I am pleased to present Shared Services Canada’s (SSC) 2015–16 Report on Plans and Priorities. This report outlines the Department’s priorities and high level plans for the next fiscal year and beyond to modernize the operations of the public service.

In the year ahead, the main focus for SSC will be to continue to transform and streamline Information Technology (IT) services to deliver better value for Canadians.

Through projects already started, SSC is working to save $150 million by consolidating contracts and keeping internal overhead low, $50 million by moving government departments to a single, outsourced email service and $9 million by consolidating the procurement of workplace technology devices.

Raison d’être

Shared Services Canada (SSC) was created on August 4, 2011 to transform how the Government of Canada manages its information technology infrastructure. SSC is delivering mandated email, data centre and network services to partner organizations in a consolidated and standardized manner to support the delivery of Government of Canada programs and services. With a whole of government approach to IT infrastructure services, SSC is creating economies of scale to deliver more efficient, reliable and secure IT infrastructure services to Government of Canada departments. SSC also provides certain optional technology-related services to government organizations on a cost-recovery basis.

Responsibilities

The Shared Services Canada Act recognizes that the Government of Canada wishes to standardize and streamline, within a single shared services entity, certain administrative services that support government institutions. Through Orders in Council, the Department received specific responsibilities in the area of IT infrastructure services.

SSC’s focus is to maintain and improve IT services delivery across the Government of Canada, generate savings, enhance security, and implement government-wide solutions to transform IT infrastructure to improve services to Canadians.

SSC meets its responsibility by working with the Information and Communications Technology (ICT) sector to deliver an enterprise-wide email system, reduce the number of data centres while modernizing and increasing their efficiency, and transform telecommunications services. Budget 2013 further expanded SSC’s mandate, adding the consolidation of government-wide procurement of software and hardware for workplace technology devices.

SSC contributes to the achievement of other critically important and transformational Government of Canada initiatives including the vision of the public service of the future as articulated in Blueprint 2020. In addition, SSC works collaboratively with other Government of Canada cyber-security agencies to improve security and support Canada’s cyber security strategy.

Strategic Outcome and Program Alignment Architecture

Organizational Priorities

Risk Analysis

As SSC continues to standardize and transform the Government of Canada’s IT infrastructure, effective risk management will play an increasingly important role. SSC has adopted an integrated risk management approach that engages and supports employees and partner organizations and promotes a risk management culture.

Risk management tools and processes have been developed to help identify, assess, respond to, and monitor risks. Training is being provided to broaden risk management knowledge and capacity across the Department. Monitoring and reporting will enable the Department to track key risks and implement timely mitigation strategies. Monitoring and reporting will also facilitate priority setting and resource allocation.

Listed below are the five key risks that were identified in SSC’s Organizational Risk Profile, along with associated risk response strategies. By implementing the strategies, SSC will mitigate the risks that have been identified, reducing their impact and likelihood.

Key Risks

The Department’s planned spending reflects the funding approved by the Treasury Board to support the departmental Strategic Outcome and Program. The majority of the decrease from the 2014–15 Forecast Spending to the 2015–16 Main Estimates is explained by the savings related to the Email Transformation Initiative as well as time-limited projects that do not have ongoing funding and a decrease in the Employee Benefit Plan contribution authority. The decrease in the 2016–17 Planned Spending from 2015–16 is primarily due to time-limited projects that do not have ongoing funding such as the Carling Campus ($20.7M) in 2016–17 and the 2016 Census ($5.6M) in 2017–18.

For Internal Services, the decrease in the 2015–16 Main Estimates from the 2014–15 Forecast Spending is mainly due to a transfer of funding from Internal Services to IT Infrastructure Services to better realign the funding with the expenditures.

The increase of total expenditures between 2012–13 and 2013–14 is largely attributed to new projects and initiatives such as Workplace Technology Devices software and other adjustments required from various partner organizations in support of SSC's mandate.

The variance between the 2012–13 and 2013–14 respendable revenue is explained by services that were discontinued or transferred to other departments. The net increase in the 2014–15 Vote- Netted Revenue authority can be explained by the additional authority received for projects and initiatives such as Workplace Technology Devices. For 2015–16 and onwards the Vote-Netted Revenue authority will be sought in spring 2015.

Figures in the tables above are net of respendable revenue

Note: These figures are net of respendable revenues. The statutory amounts represent the contribution to the employee benefit plans.

For the period from 2012–13 to 2013–14, the actual spending represents the net actual expenditures as reported in the Public Accounts.

The increase in the actuals between 2012–13 and 2013–14 is mostly attributable to software for workplace technology devices and various projects and initiatives for which additional authority was received in 2013–14.

The forecast spending of 2014–15 includes the 2014–15 Main Estimates, the 2014–15 Supplementary Estimates B and Supplementary Estimates C, and the additional Employee Benefit Plan related to the Vote-Netted Revenue authority.

Description

This program delivers Information Technology Infrastructure Services to federal government departments to enable and support the management, coordination and delivery of government programs to Canadians and the achievement of Government of Canada priorities. The IT Infrastructure services consist of four main IT service groups: (a) Distributed Computing, (b) Production and Operations Computing, (c) Telecommunications (Data, Voice and Video) Services, and (d) Cyber and IT Security. This program establishes a centralized common IT Infrastructure service leading to consolidation and standardization in the management and delivery of IT services across the mandated partner organizations. This consolidation and standardization of services contributes to greater operational efficiencies and economies of scale resulting in forecasted cost savings, enhanced reliability and security of the IT services, a reduction in the duplication of effort and managerial oversight, and the development of a harmonized response to partner organizations’ business requirements.

These figures are net of respendable revenues.

*As planned at its creation, SSC has incrementally achieved savings of over 130 million dollars in 2014-15 and ongoing. An additional committed annual savings of 50 million dollars is forecasted for 2015-16. The 2016-17 Planned Spending will constitute the 2016-17 baseline for the determination of target savings.
**Precision of incident data will increase as incident management processes mature and evolve. In the short and medium term, this could translate into an increased total number of incidents until service consolidation and standardization is complete.

Planning Highlights

SSC is building a solid foundation upon which government IT operations can be renewed and partner organization technology-based initiatives can be delivered to better serve the needs of Canadians. In executing its Transformation Plan, SSC will:

• consolidate and standardize email, data centres, and network infrastructure of partner organizations across government, in addition to those at SSC;
• consolidate the procurement of workplace technology devices, including standardization of hardware and software, to leverage economies of scale and reduce duplication;
• gradually move away from aging technology and legacy systems in favour of more advanced IT infrastructure; and
• secure Government of Canada data and technology assets through enterprise cyber and IT security services.

Savings, security and service are the yardsticks by which progress will be measured.

Description

These services include the provision and support that provides users with local and remote access to individual, workgroup, distributed computing services program-specific and corporate applications. These services also include workstation provisioning and support, as well as local area network (physical or virtual) functionality including file/print and directory services.

All figures are net of respendable revenues.

*SSC’s IT Infrastructure Services program has incrementally achieved savings of over 130 million dollars in 2014-15 and ongoing. A baseline at the sub-program level will be available starting in 2016-17.

Planning Highlights

The consolidation and standardization of email across the federal government began in 2013–14, with implementation commencing in 2015–16. Consolidation will enable easier access to government personnel and services, while establishing a robust foundation for the Blueprint 2020 objectives.

In response to government direction received in late 2012–13, SSC will continue its work to consolidate workplace technology procurement.

Description

These services provide technical support and certification for the hosting of the enterprise's day to day operations and production applications and database computing environments, including Web application environments, regardless of where they reside in the virtualized data centre or within the business unit (in a server room). Included in this service group is the execution of business resumption plans and disaster recovery plans developed under Security Services.

All figures are net of respendable revenues.

*SSC’s IT Infrastructure Services program has incrementally achieved savings of over 130 million dollars in 2014-15 and ongoing. A baseline at the sub-program level will be available starting in 2016-17.

Planning Highlights

SSC will advance data centre consolidation, including mainframe rationalization, by decommissioning aging data centres and servers and migrating applications and data to newer, more secure technology platforms.

A second production data centre will be established as a back-up to the Borden data centre.

Description

These services include the transmission of data, voice and video within and across the enterprise. Data network services include the provision and ongoing support of global multi platform, multi protocol electronic data and communications networks, which includes all software as well as wiring, switches, hubs, routers and all other hardware required to support data communications between computing devices. The voice communication services include the provision of local and long distance services globally, contact centre infrastructure services, secure voice and other related services, which include all carrier software and hardware environments.

The SSC Videoconferencing service provides a suite of videoconference (VC) bridging services designed to offer SSC partners and clients’ videoconferencing and collaboration, leveraging existing SSC capabilities into a standardized enterprise service offering.

The SSC VC service interoperates with and is meant to enhance existing departmental VC services which includes components such as cameras, microphones, monitors, multi point control units, videoconferencing bridges, hardware or software codecs (coders/decoders), videoconferencing desktop systems, and videoconferencing software. This service group has a strong direction towards the convergence of voice and data networks.

All figures are net of respendable revenues.

*SSC’s IT Infrastructure Services program has incrementally achieved savings of over 130 million dollars in 2014-15 and ongoing. A baseline at the sub-program level will be available starting in 2016-17.

Planning Highlights

SSC will continue to rationalize and consolidate the telecommunication network services that it delivers to partner organizations. The focus on savings and security will be maintained by identifying and implementing network and telecommunications services as one single enterprise.

Consolidation will result in efficiencies and enable SSC to support increased use of videoconferencing services and Voice over Internet Protocol (VoIP) technology.

These services are concerned with applying “safeguards to preserve the confidentiality, integrity, availability, intended use and value of electronically stored, processed or transmitted information” (Policy on Government Security, Operational Security Standard— Management of Information Technology Security).

All figures are net of respendable revenues.

Planning Highlights

SSC will continue to consolidate IT security services and expand the function of the Security Operations Centre to prevent, detect, respond to, and recover from cyber threats at an enterprise level. SSC will seek to consolidate the Government of Canada’s multiple Secret-level networks into a single and expanded government-wide infrastructure.

Description

Internal Services are groups of related activities and resources that are administered to support the needs of programs and other corporate obligations of an organization. Internal services include only those activities and resources that apply across an organization, and not those provided to a specific program. The groups of activities are Management and Oversight Services; Communications Services; Legal Services; Human Resources Management Services; Financial Management Services; Information Management Services; Information Technology Services; Real Property Services; Materiel Services; and Acquisition Services.

Planning Highlights

SSC is reviewing the way Internal Services support the business of the Department. In support of ongoing value for money, compliance and stewardship, SSC will transform internal services by moving to an integrated three-tiered service delivery model for human resources, finance, procurement and IT services over the next three years. The Internal Services Transformation initiative emphasizes self-serve options, and updates the Department's enterprise resource planning system with new tools that provide better support for managing human and financial resources.

The Workforce Management Strategy, which initially focused on the transfer of employees to the newly created department, will increase emphasis on organizational agility and leadership alignment throughout the organization. During this phase, SSC will work closely with all its employees to support internal mobility, promote learning and development, and provide for re-skilling toward needed competencies – all in support of the organization’s transformation program.

The forecasted decrease in expenses is primarily attributable to savings related to the Email Transformation Initiative and to various time-limited projects and initiatives. In addition, there will be a reduction in spending resulting from a decrease of the Vote-Netted Revenues authorities.

The forecasted decrease in revenues reflects adjustments such as a reduction due to partner departments transferring appropriations to replace revenues, as well as the discontinuation of some services previously provided.

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

budgetary expenditures: Include operating and capital expenditures; transfer payments to other levels of government, organizations or individuals; and payments to Crown corporations.

Departmental Performance Report: Reports on an appropriated organization’s actual accomplishments against the plans, priorities and expected results set out in the corresponding Reports on Plans and Priorities. These reports are tabled in Parliament in the fall.

full-time equivalent: Is a measure of the extent to which an employee represents a full person year charge against a departmental budget. Full-time equivalents are calculated as a ratio of assigned hours of work to scheduled hours of work. Scheduled hours of work are set out in collective agreements.

Government of Canada outcomes: A set of 16 high-level objectives defined for the government as a whole, grouped into four spending areas: economic affairs, social affairs, international affairs and government affairs.

Management Resources and Results Structure: A comprehensive framework that consists of an organization’s inventory of programs, resources, results, performance indicators and governance information. Programs and results are depicted in their hierarchical relationship to each other and to the Strategic Outcome(s) to which they contribute. The Management, Resources and Results Structure is developed from the Program Alignment Architecture.

non-budgetary expenditures: Include net outlays and receipts related to loans, investments and advances, which change the composition of the financial assets of the Government of Canada.

performance: What an organization did with its resources to achieve its results, how well those results compare to what the organization intended to achieve and how well lessons learned have been identified.

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

performance reporting: The process of communicating evidence-based performance information. Performance reporting supports decision-making, accountability and transparency.

planned spending: For Reports on Plans and Priorities (RPPs) and Departmental Performance Reports (DPRs), planned spending refers to those amounts that receive Treasury Board approval by February 1. Therefore, planned spending may include amounts incremental to planned expenditures presented in the 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 RPPs and DPRs.

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

priorities: Plans or projects that an organization has chosen to focus and report on during the planning period. Priorities represent the things that are most important or what must be done first to support the achievement of the desired Strategic Outcome(s).

program: A group of related resource inputs and activities that are managed to meet specific needs and to achieve intended results and that are treated as a budgetary unit.

Program Alignment Architecture: A structured inventory of an organization’s programs depicting the hierarchical relationship between programs and the Strategic Outcome(s) to which they contribute.

Report on Plans and Priorities: Provides information on the plans and expected performance of appropriated organizations over a three-year period. These reports are tabled in Parliament each spring

results: An external consequence attributed, in part, to an organization, policy, program or initiative. Results are not within the control of a single organization, policy, program or initiative; instead they are within the area of the organization’s influence.

Strategic Outcome: A long-term and enduring benefit to Canadians that is linked to the organization’s mandate, vision and core functions.

sunset program: A time-limited program that does not have an ongoing funding and policy authority. When the program is set to expire, a decision must be made whether to continue the program. In the case of a renewal, the decision specifies the scope, funding level and duration.

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

whole-of-government framework: Maps the financial contributions of federal organizations receiving appropriations by aligning their Programs to a set of 16 government-wide, high-level outcome areas, grouped under four spending areas.

Report on Plans and Priorities (Shared Services Canada)
© Her Majesty the Queen in Right of Canada, as represented by the Minister responsible for Shared Services Canada, 2014 Cat. No. P115-1/2014E-PDF
ISSN 2292-3349