Standing Senate Committee on National Finance: 2024-2025 Main Estimates

Shared Services Canada (SSC) is seeking a total of $2,480B through the 2024-25 Main Estimates to support its role as the information technology (IT) service provider for the Government of Canada (GC). This amount represents a net decrease of $112M compared to the 2023-24 Main Estimates of $2.59B. The available funding for 2024-25 is net of $853M in revenue.

New funding: $152.9M increase

(A) Funding for Core IT Services

$105,966,343

Purpose

The funding of close to $106M is to support the onboarding of new full-time equivalents (FTE) with core IT services including standardized network services, procuring software and hardware for workplace technology devices, and providing technology-related services.

(B) Funding for Reinforcing the GC’s Cyber Security (Fall Economic Statement 2022)

$24,701,536

Purpose

The funding of $24.7M will be used to strengthen protection of the GC’s IT infrastructure against ever-evolving cyber threats.

(C) Funding for Safeguarding Access to High Performance Computing for Canada’s Hydro-Meteorological Services (Fall Economic Statement 2022)

$22,234,718

Purpose

The funding of $22.2M 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.

Reprofiled funds: $55M increase

(D) Funding for the Workload Modernization and Migration Program (Budget 2021)

Reprofile of $40,894,788

Purpose

A total of $40.9M is being reprofiled from the 2023-24 funding for the Workload Modernization and Migration Program (WLM) and the data centre closure activities. The WLM Program has experienced project delays with ██████████ project which requires funds in 2024-25 to ensure completion. Emergency Small Site Closures (ESSC) encountered supply chain issues and resource shortages in 2022-23, delaying future year data centre closures.

(E) Funding for the Cyber and IT Security Project: GCSI (Budget 2018)

Reprofile of $14,119,508

Purpose

A total of $14.1M is being reprofiled from the 2023-24 funding for the Cyber and IT Security Project: GCSI expansion. This is due to delays in procurement for networking, computer and storage hardware which resulted in a change to project timelines.

Transfers: ($9M) Decrease

(F) From PSPC for Reduced Accommodation Requirements due to Data Centre Consolidations

Transfer of $656,448

Purpose

An increase of over $650,000 from PSPC representing a reimbursement related to reduced accommodation requirements due to data centre consolidations. Under an agreement with PSPC, SSC receives an amount for power and space savings achieved from data centre closures, less the identified decommissioning costs forecasted by PSPC.

(G) From ESDC for the Cost of Providing Core IT Services

Transfer of $511,283

Purpose

An increase of a little over half a million dollars from ESDC for the cost of providing core IT services.

(H) To TBS for the Financial Community Developmental Programs and Initiatives

Transfer of ($37,351)

Purpose

A transfer of over $37,000 to TBS representing SSC’s continued contribution to the Office of the Comptroller General’s financial community development initiatives.

(I) To Various Departments for the GC IT Operations Enterprise Service Model (ESM)

Transfer of ($10,109,203)

Purpose

A transfer of ($10.1M) for the GC IT Operations (ESM) for revenue in lieu of appropriation. Given that SSC and its stakeholders continue to work on the implementation of the ESM, the transfer is an extension of the 2022-23 agreement. The agreement recognizes that for revenue-dependent departments, a portion of the initial Budget 2021 transfer will be returned, and SSC will invoice these departments in 2024-25 as follows:

• ($7.9M) to PSPC
• ($1.9M) to ISED
• ($0.3M) to the CNSC

Other Adjustments: ($308.5 million) Decrease

(J) Funding for Compensation Adjustments

$61,524,202

Purpose

An increase of $61.5M for compensation adjustments for SSC employees associated with the signature of the collective agreements for Comptrollership (CT) group, Educational and Library Sciences (EB), Economics and Social Science Services (EC), Electronics (EL), Program and Administration Services (PA), Operational Services (SV), Technical Services (TC), Personnel Administration (PE), Senior leaders (EX) and the Information Technology (IT) groups.

(K) Realignment of funding from Vote 1 Operating to Vote 1 Personnel

($1,614,685)

Purpose

A decrease of ($1.6M) for the conversion of funds from Vote 1 Operating to Personnel to meet human resource requirements within the department. This adjustment will cover the related costs of the Employee Benefit Plan (EBP).

(L) Budget 2023 Reduction – Operating Efficiencies

($2,237,000)

Purpose

SSC will generate operating efficiencies through the optimization of resources with increased collaboration; the utilization of technology advancement and common solutions; and consolidation and streamlining where appropriate.

This will result in savings of $2.2M.

(M) Budget 2023 Reduction – Non-Standard and Legacy Services

($9,812,000)

Purpose

A decrease of ($9.8M) representing Budget 2023 Reductions for savings. These savings will be generated by accelerating client solutions to eliminate and/or reduce costly non-standard and legacy services. SSC will work closely with central agencies to strategically standardize, and highlight the benefits of moving away from costly non-standard and legacy services.

(N) Budget 2023 Reduction – Professional Services and Travel

($66,159,000)

Purpose

The overall budget has seen a decrease of $66.2M, as required through Budget 2023. This decrease will be achieved through a reduction in the use of consulting, further leveraging employees instead. There will also be a reduction in travel for less critical operational requirements and further reductions in discretionary spending.

(O) Adjustments in Funding Related to Multi-year Initiatives and Projects

($290,191,229)

Purpose

A net decrease of ($290.2M) due to changes to funding profiles for multi-year initiatives and projects. The changes are a result of time-limited funding or variations in funding from year-to-year. These adjustments are due to:

• An increase of $19.4M for the Secure Cloud Enablement and Defence Evolution and Departmental Connectivity and Monitoring initiative (Budget 2021) due to changes in the funding profile from 2023‑24 ($44.2 M to $63.6M)
• A decrease of ($27.6M) for the Network Modernization and Implementation Fund (Budget 2021) due to changes in the funding profile from 2023‑24 ($67.4M to $39.8M)
• A decrease of ($36.0M) for the IT Repair and Replacement Program (Budget 2021) due to changes in the funding profile from 2023‑24 ($97.5M to $61.5M)
• A decrease of ($110.7M) for the Workload Modernization and Migration Program (Budget 2021) due to changes in the funding profile from 2023‑24 ($117.5 M to $6.8 M)
• A decrease of ($74.7M) for Cyber and IT Security Projects due to changes in the funding profile from 2023‑24 ($125.1M to $50.4M)
• A decrease of ($46.0M) for mission-critical projects (2017 Fall Economic Statement) as this was a time-limited initiative and the funding ended in 2023-24
• A net decrease of ($14.6M) for various projects and initiatives

Statutory appropriations: ($2.4 million) decrease

(P) Statutory Appropriations

($2,378,023)

Purpose

The decrease to SSC’s statutory appropriations of ($2.4M) is related to the EBP contributions, and the decrease in FTEs. This reduction is offset by increases in salary funding for new projects, initiatives, compensation adjustments and realignments. A breakdown of this adjustment is as follows:

• An increase of $3.6M in EBP related to added items in the 2024-25 Main Estimates, including:
  • An increase of $2.6M for reinforcing the GC’s Cyber Security
• An increase of $1M for safeguarding access to high performance computing for Canada’s Hydro-Meteorological Services
• An increase of $10.4M for compensation adjustments
• An increase of $1.6M for the realignment within Vote 1, from Operating to Personnel
• A decrease of ($15.6M) for adjustments to SSC’s EBP rate
• A net decrease of ($2.4M) in EBP related to changes in salary funding for multi-year initiatives and/or projects

If pressed on

If pressed on Main Estimates

• With the approval of the 2024-25 Main Estimates, Shared Services Canada’s reference levels will decrease by ($112M), from $2.592B in 2023‑24 to $2.480B in 2024‑25:
  • ($51.4M) in Vote 1
  • ($58.2M) in Vote 5
  • ($2.4M) in Statutory appropriations (Employee Benefit Plan (EBP))

If pressed on refocusing government spending

• The following proposals have been approved for Refocusing Government Spending:
  • eliminate non-standard and legacy services
  • find efficiencies in operating budgets
  • professional services and travel reductions
• SSC’s proposals for Refocusing Government Spending identified residual amounts in the fiscal framework related to reinforcing Government of Canada cyber security. These residual amounts are not an actual reduction to SSC’s reference levels, but rather additional amounts returned to the fiscal framework.

• Within the three approved Refocusing Government Spending proposals, SSC does not expect any full-time equivalent (FTE)/employee reductions. However, service delivery adjustments may require a realignment of human resources to SSC priorities.
• SSC has developed a spending reduction strategy to support the government’s commitment to scale back on spending and focus on priority investments. This strategy focuses primarily on three themes:
  • Reducing professional services and travel without impacting SSC’s core service delivery
  • Accelerating work with SSC’s partners by decommissioning costly legacy infrastructure and services while moving to more modern environments
  • Improving how SSC manages and delivers certain shared services by leveraging internal operational efficiencies, enhanced technologies, and by optimizing existing resources
• SSC will limit spending reduction impacts on its service mandate to partners and clients by focusing on the enterprise IT that benefit from economies of scale.
• SSC will accelerate initiatives that address legacy services and implement standard solutions. These include:
  • Modernizing telecommunications by disconnecting landlines that are no longer needed, and using mobile devices and desktop communications
  • Migrating from vendor-managed and in-house services to a modern cloud-based email solution
  • Closing the remaining small and medium legacy data centres

Issue

The President of the Treasury Board tabled Shared Services Canada (SSC)’s 2024-25 Departmental Plan (DP) in Parliament on February 29, 2024. The plan outlines the department’s key priorities for this coming year.

Key messages

• SSC’s Departmental Plan illustrates the important role it plays in delivering the Government of Canada (GC) digital ambition, and advancing digital services to ensure Canadians receive high quality, accessible and efficient government services.
• SSC’s DP focuses on Delivering Digital Solutions Together for Canada (Digital Together), a strategic approach guiding SSC’s efforts to improve operational excellence. Digital Together will help increase transparency, predictability and responsiveness in service delivery.
• SSC key priorities for 2024-25 include:
  • Collaborating with its partners to innovate and improve its services
  • Investing effort and resources into optimizing hosting solutions for its partners
  • Continuing to improve infrastructure monitoring and security

If pressed on

If pressed on roadmaps and key initiatives

• Through Digital Together, SSC has developed strategic roadmaps to outline how it will work with partner departments and agencies to achieve excellence in technology and operations, and to support the GC’s transition towards a digital government.
• Some partner departments and agencies will be pathfinders collaborating with SSC to test solutions and acquire lessons learned at every stage. This will allow SSC to ensure that solutions are responsive and effective before scaling out to other organizations.
• SSC key initiatives under each roadmap include:
  • Connectivity services:
    • Low Earth Orbit satellites
    • Wi-Fi in government buildings
  • Cyber security services:
    • Strengthening cyber security
    • SSC security projects
  • Digital services:
    • Digital communication and collaboration
    • Contact centre modernization
  • Hosting services:
    • Hosting strategy
    • Hosting evolution

If pressed on hybrid workplace

• SSC is adapting its networks to support the GC’s hybrid workplace model.
• Key network and security updates include improving bandwidth and implementing video interoperability that will allow meeting rooms with videoconferencing devices to connect to MS Teams.
• SSC will continue to upgrade or replace devices to ensure that meeting spaces conform with the new guidelines for conferencing services, which include accessible and reliable conferencing capabilities.

If pressed on telecommunications

• SSC is taking action to continue offering high-quality, efficient and affordable tools across the GC. These are necessary elements for providing digital workspaces from which public servants can work flexibly in either GC buildings or remotely. SSC manages approximately 180,000 hand-held devices (iOS and Android) across 45 partners and 10 client departments.
• In 2024-25, SSC will begin expanding the current service to include security and support requirements for GC classified services.

If pressed on cloud services

• The Application Hosting Strategy highlights the GC’s ongoing efforts to improve digital solutions for application hosting, based on cost effectiveness and business value. The Strategy recognizes the need to adopt modern hosting solutions to foster innovation and streamline operations.

If pressed on enterprise IT service management

• SSC uses Onyx, an IT Service Management tool, to manage IT services from the initial request to final delivery. This tool supports more efficient service management by enhancing automation and improving the quality of the data to manage service standards.
• In 2024-25, SSC will complete the migration of SSC services and employees working with partner owned tools to Onyx.
• Centralizing work in Onyx will allow usage of a single tool and greatly reduce the number of IT Service Management tools used by employees.

If pressed on SSC’s management of human resources

• Full Time Equivalent (FTE) positions at SSC can fluctuate based on the need to support service delivery.
• The increase in FTEs over the past three years was necessary to address the demand for SSC’s services and to support service delivery improvements.
• The planned decrease from 2024-25 to 2025-26 and from 2025-26 to 2026-27 is due to a reduction in funding related to time-limited initiatives, including Budget 2021.

Issue

This note outlines Shared Services Canada’s (SSC) role in priority projects with partner departments and agencies.

Key messages

• SSC works with the Treasury Board of Canada Secretariat (TBS) Office of the Chief Information Officer (OCIO) and partner departments and agencies to advance Government of Canada (GC) priorities for digital delivery of programs and services to Canadians.
• SSC collaborates on information technology (IT) solution design, project planning, architecture and data migrations, and offers project management services when required by partners.
• SSC’s role in these programs or projects varies—from enhancing network infrastructure or supporting modernized partner applications, to procuring enterprise services for cloud or managing digital credentials.
• Projects are aligned with the GC Digital Ambition, which aims to enable the delivery of secure government services in the digital age for all Canadians.

If pressed on

If pressed on specific projects

1. Employment and Social Development Canada (ESDC) ten-year initiative to modernize benefit delivery services for Employment Insurance (EI), Old Age Security (OAS) and the Canada Pension Plan (CPP)
   • By 2030, the new Benefits Delivery Modernization (BDM) solution will provide an easy-to-use, integrated, adaptable and secure cloud-based platform.
   • SSC is providing the connectivity services that underlie BDM, as well as undertaking procurement of technology solutions.
   • Recent SSC contributions include dedicated IT services that achieved the first live OAS onboarding in June 2023, ongoing integrated planning for seamless and secure connectivity with final onboarding of OAS by December 2024, and future EI onboarding.
   • SSC is working with partners to establish new procurement vehicles by 2025. These will enable GC cloud infrastructure services, customer identity and access management as well as modern contact centres.
2. Health Canada (HC) – Canada Dental Care Plan (CDCP)
   • The Canada Dental Care Plan is a phased program that would provide payments to cover dental expenses for eligible Canadians.
   • The program’s delivery was awarded through a competitive process to Sunlife in November 2023, with SSC supporting the IT required for the program’s call centre, cloud services, and IT security support.
   • On April 30, 2024, the member portal went live, and electronic claims processing began.
3. Service Canada (ESDC) – CDCP contact centre
   • The Canadian Dental Care Plan contact centre solution, implemented by Service Canada, manages all calls and allows senior citizens to self-serve when onboarding.
   • It uses a stand-alone contact centre solution on SSC’s Hosted Contact Centre Solution (HCCS), implemented in December 2023.
4. Public Safety (PS) Firearm Buyback Program (FBP)
   • The FBP responds to the GC decision to prohibit more than 1500 assault-style firearms through the design and implementation of a buyback program during amnesty.
   • The program has 2 phases: the first is for business owners and is set to launch in November 2024, and the second is for personal gun owners and is launching in Spring 2025.
   • SSC, the Royal Canadian Mounted Police (RCMP), Public Services and Procurement Canada (PSPC), and ESDC are working jointly to deliver this program.
   • SSC supported procurement, call centre services, digital credential management and accessibility testing.
5. Canada Revenue Agency (CRA) and the Canada Border Service Agency (CBSA) Migration (CCM)
   • The CCM is a key workload migration project that will see workloads currently hosted in an old legacy data centre migrated to a modern SSC Enterprise Data Centre.
   • SSC, CRA and CBSA are working on migration planning and execution to ensure the performance levels of existing services and to minimize risk to business operations.
   • The CBSA Production Mainframe migration to the SSC Enterprise Data Centre was completed successfully in early September. This is an important milestone in the overall CCM migration project and in providing robust and resilient infrastructure for critical applications for Canadians.
   • SSC is also supporting CRA’s modernization efforts with the procurement of a new contact centre solution.
6. CBSA – Travellers Modernization Program & Land Border Crossing Project
   • The Traveller Modernization Program aims to modernize the traveller's experience by establishing new digital tools to automate declaration, crossing, validation and reporting.
   • The Land Border Crossing Project aims to modernize technology the CBSA uses within ports of entry.
   • SSC will replace aging technology with modern tools for efficient border crossing and validation.
7. CBSA – Assessment and Revenue Management Project (CARM)
   • The CARM digital initiative is changing how CBSA assesses and collects duties and taxes on commercial goods imported into Canada.
   • The initiative aims to provide digital services to partners (customs bonded warehouse licensees, importers, customs brokers, trade consultants, financial security providers and other trade chain partners) to enable them with a modern, secure, consolidated and user-centric solution.
   • In October 2024, CARM will become the official system of record that importers and other trade chain partners will use to pay duties and taxes.
8. Royal Canadian Mounted Police (RCMP) Body Worn Camera (BWC) digital evidence management
   • The BWC is an initiative to improve transparency and accountability and to respond to concerns about policing from racialized and Indigenous communities.
   • The BWC will equip RCMP officers with a body-worn camera while on duty. It will also implement software technology to store video evidence to support court proceedings, access to information requests and other complaints processes in a manner that respects privacy legislation.
   • SSC is also supporting RCMP digital initiatives by enabling the RCMP cloud presence and evolving the network capacity and capability.
9. RCMP Central Region Radio Renewal (CR3)
   • The CR3 is a project that will continue to deploy a new mission-critical encrypted radio communication system in Central Canada (Ontario and Quebec) at approximately 180 sites.
   • This will enable seamless roaming and interoperability. It will also ensure that efficient and reliable communication is available with partner public safety agencies in both routine and emergency situations.
   • SSC is responsible for delivering and supporting CR3 GCNet Circuits for the network with the support of vendors.
10. RCMP Network Modernization initiative, enabled by the SSC Network Capacity Improvement Strategy (NCIS)
    • The NCIS is aimed at expanding network capabilities to support the advancement of the RCMP’s digital agenda, including the two initiatives BWCs and Digital Evidence Management Systems (DEMS).
    • NCIS will also be used as a pathfinder for a wide area network that uses software, instead of hardware, for its networking control mechanism.
    • SSC is upgrading the RCMP's Network Capacity at approximately 980 sites across the country utilizing multiple network solutions.
11. Canada’s 2025 G7 Presidency (G7)
    • The G7 will be held in Kananaskis, Alberta. SSC will provide comprehensive infrastructure services to support Canada's G7 presidency throughout 2025, for partners involved in all G7 activities, including the Leader's Summit.
12. Immigration, Refugees and Citizenship Canada (IRCC) Digital Platform Modernization Phase 3 (DPM3)
    • The development of Canada’s new “digital first” integrated migration system to replace the aging Global Case Management System (GCMS) remains a top government priority as immigration is critical to Canada’s long-term social and economic success, and this system underpins IRCC’s ability to support this objective.
    • DPM3 strives to deliver an adaptable and reliable system that will enable a seamless, end-to-end experience, support clients and employees, ensure equitable outcomes, and keep up with the latest advancements in technology to empower Canada’s success.
    • SSC is supporting the cloud and on-premises elements of the solution and the eventual migration from and decommissioning of GCMS.
13. RCMP next generation 9-1-1 (NG 9-1-1)
    • This project will allow the public to utilize 9-1-1 services using any real-time communication channel be it voice, text, or video from any wired, wireless, or IP-based device.
    • SSC is supporting the emergency services community by delivering advantage of advanced call delivery and rich media information transfer, plus these services will also include features to assist the hearing- and speech-challenged communities.
14. RCMP IT services management system implementation
    • The RCMP is adopting a new system to deliver IT service management. It leverages a modern solution that updates and transforms trouble ticketing, asset management and service processes through new intelligence capabilities to automate everywhere, reduce IT risk for the RCMP, and prevent points of failure.
    • In concert with this new system implementation project, SSC is also adopting a similar system through our own project delivery team to be able to support the RCMP, now and in the future.

Issue

Shared Services Canada (SSC) provides the foundational IT infrastructure for departments to host their applications, ensuring that Canadians can access secure digital programs and services. SSC currently operates 230 active legacy data centres, originally built to serve individual departments or clusters of departments.

Key messages

• Modernizing the Government of Canada’s (GC) IT systems is a shared responsibility that requires a comprehensive, GC-wide approach.
• While SSC manages the GC IT infrastructure, partner departments are responsible for modernizing or decommissioning the applications running on SSC’s infrastructure.
• SSC’s legacy IT infrastructure cannot be modernized in isolation. This is because legacy applications rely on their current infrastructure and networking configurations.
• Legacy apps are not fully compatible with modern data centre or cloud environments.
• Additionally, application modernization projects, led by partners, are often highly complex, requiring significant investment, specialized skills, and changes to existing business processes.
• To ensure the continuity of GC programs and services, the underlying legacy infrastructure must be maintained until the applications are ready for migration to modern hosting solutions.

If pressed on

If pressed legacy data centre closures

• SSC is committed to collaborating with TBS and partner departments and agencies to modernize GC’s IT systems.
• Together, TBS and SSC are enhancing decision frameworks, funding models, and partner incentives to prioritize the migration of legacy applications, particularly those that are critical, high-risk and costly to maintain.
• To date, SSC has closed 490 out of 720 legacy data centres and plans to close at least 22 more this fiscal year.
• Consolidated applications have been moved to four world-class Enterprise Data Centres (EDC), a High-Performance Computing facility and other fit-for-purpose Data Centres.

If pressed on the GC application hosting strategy

• The 2024 GC Application Hosting Strategy is an enterprise-wide approach to modernizing and optimizing application hosting.
• This strategy involves transitioning to a hybrid model that combines on-premises EDCs with flexible cloud services.
• It also emphasizes the standardization and modernization of hosting platforms, including operating systems, mainframes, storage, and high-performance computing.
• This enhanced portfolio of hosting services will offer partners greater flexibility and new opportunities to modernize their legacy applications or explore new common GC platforms that efficiently utilize resources.

If pressed on challenges

1. Dependencies on partners: The modernization of legacy applications depends on partner prioritization and investment. Legacy applications are dependent on their current IT infrastructure and networking configurations and are not seamlessly compatible with modern data centre configurations. SSC is collaborating with TBS to develop incentive frameworks to help partners accelerate application modernization.
2. Cost of aging IT infrastructure: Legacy applications increase SSC’s operating costs by requiring the management of outdated and unsupported technologies.
3. Modernization constraints: Legacy systems make it difficult to implement modern digital solutions, new features, integrate with newer technologies, and respond to evolving business needs.
4. Skills development: Keeping IT staff updated with the latest technologies and best practices requires ongoing learning and development.

Issue

Shared Services Canada’s (SSC) is working to modernize network services across the Government of Canada (GC).

Key messages

• SSC constantly upgrades its network infrastructure to ensure it remains flexible, reliable and secure.
• Years ago, SSC began to modernize network services for the GC. SSC moved to enterprise solutions, as opposed to tailored solutions for each department.
• Rather than looking at wide area networks, local area networks and Wi-Fi as separate services, SSC now determines the best connectivity solution for partners' and clients’ business needs.
• SSC also optimized the enterprise network infrastructure by using multiple providers to ensure the best value and service for the GC.
• SSC has made major upgrades to networks to provide the bandwidth for employees to concurrently use modern tools like Microsoft (MS) Teams.
• SSC remains focused on improving connectivity services and providing a consistent end-user experience for employees and all Canadians using GC digital services from any network, at any location.

If pressed on

If pressed on bandwidth

• The network access we provide needs to be secure with the ability to handle rapid fluctuations in bandwidth demand.
• Our previous network architecture was sound, but it was not scalable and its performance was limited. We moved to a decentralized network model by starting up five GC Networks Hubs across Canada, including two hubs in the National Capital Region (NCR), which we continue to evolve.
• This is key to how we manage connectivity and security from the GC network to external networks (the Internet and public cloud). It has allowed us to increase our network bandwidth and reduce latency while improving security.

If pressed on connectivity in remote areas

• SSC awarded contracts for Low Earth Orbit (LEO) satellite services, on an as-and-when-required basis, to OneWeb and Starlink to provide high-speed Internet connections in remote locations for GC organizations.
• LEO satellites operate at a much lower altitude than geostationary satellites. They can be used to provide connectivity for vehicles on land and at sea, or for buildings in areas with no traditional coverage from terrestrial or cellular providers.
• For example, the Royal Canadian Mounted Police (RCMP) and the Department of National Defence (DND) are using the service in Iqaluit and at Canadian Forces Station Alert to provide connectivity to their corporate networks.

If pressed on future wi-fi/bandwidth projects

• SSC plans to augment the NCR hubs to provide more than Internet service provider connectivity. We are looking to:
  • integrate the science network connectivity (CANARIE) into the hubs
  • establish more domestic hubs where appropriate to meet business needs
  • establish international hubs
• SSC is working on new contracting vehicles to make larger amounts of bandwidth available to meet our partners’ increasing needs.
• SSC is also:
  • implementing enterprise software-defined wide area network (SD WAN) to ease congestion, improve security, provide better application performance and reduce networking costs, ultimately resulting in improved user experience
  • expanding the use of our newly established Low Earth Orbit capability to help with bandwidth and latency in remote areas, especially in the North

Issue

Hosting services provide the necessary facilities, information technology (IT) infrastructure, software, security, management, and support to run and manage the Government of Canada's (GC) applications and data. Hosting Services at Shared Services Canada (SSC) are offered through enterprise data centres, cloud hosting and hybrid solutions.

Key messages

• SSC aims to create a reliable, sustainable, and cost-effective hosting ecosystem that meets the needs of partner departments and agencies.
• SSC achieves this goal with its hybrid hosting model, which combines cloud services and traditional data centers to optimize performance, reduce costs, and provide flexible solutions for evolving government services.
• SSC is advancing the hybrid model through several key areas.
  • Reducing legacy and aging IT: Addressing aging IT systems is crucial for reliable service delivery. SSC reduces risks, costs, and security vulnerabilities by retiring outdated infrastructure, as highlighted in the Auditor General's 2023 Report on Modernizing IT Systems.
  • Standardizing and modernizing: SSC is standardizing and modernizing its hosting platforms, including operating systems, mainframes, storage, and high-performance computing, to reduce complexity, improve manageability, and deliver consistent, high-quality services that meet the diverse needs of SSC's partners.
  • Implementing the GC Application Hosting Strategy: This enterprise approach to modernizing and optimizing application hosting across federal institutions includes government and oversight, competitive procurement, sustainable funding, cohesive services.

If pressed on

If pressed on evolution of approach

• The government’s hosting strategy has evolved since SSC was established in 2011 to centralize GC IT services.
• In 2013, SSC began consolidating hosting infrastructure by modernizing and moving legacy systems to modern Enterprise Data Centres (EDCs).
• The 2016 Cloud Adoption Strategy introduced cloud services alongside data centers, with a "cloud first" policy in 2018 that prioritized the cloud for new applications.
• The Cloud First approach achieved gains in the agility and speed of hosting new applications, but led to an exponential rise in costs, a lack of long-term funding, duplication across the GC, and other inefficiencies.
• To address the cost associated with this shift and to implement greater rigour through a whole-of-government approach, the government determined this approach required immediate review and improvement.
• This led to the 2024 GC Application Hosting Strategy.

Issue

In the wake of investigations into Government of Canada (GC) contracting practices, the ethical behaviour of public servants has attracted media attention, which includes the rules and guidelines surrounding workplace conflict of interest.

Key messages

• Shared Services Canada (SSC) treats allegations of wrongdoing seriously, investigating and collaborating in investigations with Public Services and Procurement Canada (PSPC) and/or legal authorities as required.
• SSC employees must adhere to the Values and Ethics Code for the Public Sector and to SSC's Organizational Code as a condition of employment. Employees are required to act in a manner that prevents, manages and resolves conflicts of interest, and to carefully manage public funds.
• SSC employees are required to report all outside employment, activities, assets and interests that might give rise to conflicts of interest in relation to their official duties and responsibilities.
• SSC produces a yearly comprehensive communication plan covering values and ethics, which reminds employees to declare any situation that may give rise to a conflict of interest.
• Investigations are conducted under the authority of section 7 of the Financial Administration Act and in line with the Policy on Government Security.
• SSC offers in-house values and ethics training to employees at all levels in addition to mandatory training offered by the Canada School of Public Service.

If pressed on

If pressed on strengthening integrity

• Over the past year, SSC has strengthened its professional services procurement approach to align with updated GC practices. The adjustments enhance process integrity and efficiency.
• These changes require stricter reporting requirements, enhanced evaluation processes, clarify statements of work, disclosure of concurrent contracts.
• Vendors are now required to disclose:
  • work on multiple contracts
  • additional financial information
  • time sheets showing the days and hours worked to support charges claimed on the invoice

If pressed on SSC employees working as contractors

• SSC employees are required to submit a conflict of interest declaration pertaining to outside employment and activities that might give rise to a real, apparent or potential conflict of interest in relation to their official duties and responsibilities.
• In 2023-2024, a total of 329 declarations were received: 146 declarations reported outside activities; 6 of them were situations where government employees might have worked as contractors.
• The Office of the Chief Human Resources Officer is reviewing the Directive on Conflict of Interest to ensure that the requirements are clear and effective, particularly as they relate to employees who engage in outside employment, including contracts with the GC. This review is expected to be completed by end of 2024-25.
• Employees may also seek advice from SSC’s Designated Senior Official for Values and Ethics or an SSC Values and Ethics Advisor.
• Should a serious breach of SSC’s Organizational Code or wrongdoing in the workplace arise, the matter can be brought to an employee’s immediate supervisor, the Senior Officer for Internal Disclosure, or the Public Sector Integrity Commissioner.
• A failure to comply with policy on conflict of interest could result in administrative and/or disciplinary measures, up to termination of employment, depending on the severity and extent of non-compliance.

If pressed on contractors

• The GC has robust conflict of interest rules and requirements for contractors embedded in their contract, and bribery, fraud and corruption are offences under the Criminal Code of Canada.
• Vendors must comply with PSPC Code of Conduct for Procurement that outlines expectations and obligations for vendors and their subcontractors who respond to bid solicitations and/or provide goods and services to Canada.
• Vendors are accountable for all work performed by sub-contractors. If the contractor becomes aware of any matter that may cause a conflict, they must immediately disclose such matter to the Contracting Authority in writing.
• SSC can perform compliance checks and request corrective measures for non-compliance, up to and including termination of the contract.
• Significant issues may lead SSC to conduct investigations and collaborate with other authorities such as PSPC’s industrial security program.
• All contracts are subject to review by the Procurement Ombudsman and the Auditor General of Canada.
• While a consultant may provide input into the technical requirements of a Request for Proposal (RFP), that input would be fully validated by additional team members of the technical authority, the procurement team, and through the solicitation process itself, where vendors have an opportunity to question and challenge the RFP through a formal question and answer period.

Issue

Cyber security in the Government of Canada (GC) is a shared responsibility between Shared Services Canada (SSC), the Treasury Board of Canada Secretariat (TBS), the Office of the Chief Information Officer (TBS-OCIO), and the Communications Security Establishment (CSE).

Key messages

• The GC, like every other organization worldwide, faces persistent cyber threats from bad actors on a national and international level that requires constant vigilance.
• SSC has people, technology and processes in place to safeguard systems. It also works collaboratively with TBS, CSE, and partner departments and agencies to identify, contain, eradicate and recover from cyber threats.
• SSC constantly works to keep government systems secure by strengthening enterprise infrastructure and security services, as well as improving the governance of IT and cyber security.
• SSC incorporates security into all enterprise services it delivers.

If pressed on

If pressed on SSC’s role

• SSC is responsible for designing and operating a secure information technology (IT) infrastructure in alignment with TBS security policies and the zero trust framework, which includes protecting networks, systems and data.
• SSC applies cyber security measures to prevent malicious actors from gaining access to GC networks. These measures include firewalls, network scans, anti-virus, anti-malware, identification and authentication tools and services.
• In addition to infrastructure capabilities, robust cyber event management processes are required to respond to cyber attacks. To that effect, SSC has a solid security operations model that involves collaboration with CSE and TBS to bolster the government’s capacity to respond to and mitigate cyber attacks.

If pressed on roles of partners

• While all departments and agencies have a responsibility to ensure cyber security within their own organization, several departments and agencies hold key enabling roles for cyber security in the GC.
• TBS, SSC and CSE are the primary stakeholders in ensuring that the government’s cyber security posture is able to respond to evolving threats.
• TBS leads on a whole-of-government cybersecurity policy and provides strategic oversight of government cyber security event management.
• SSC designs and operates IT security infrastructure. In conjunction with TBS and CSE, SSC provides security and privacy by design when establishing new services. SSC also monitors enterprise applications used in the delivery of services to partner departments and agencies.
• CSE, via the Canadian Centre for Cyber Security (CCCS), monitors systems and networks for malicious activities and coordinates reporting of cyber attacks.
• Public Safety Canada leads national cyber security policy and strategy domestically and internationally.
• The Royal Canadian Mounted Police (RCMP) is the primary investigative department on all cybersecurity incidents dealing with actual or suspected cybercrime of non-state origin against GC infrastructure.
• The Canadian Security Intelligence Service (CSIS) collects information and intelligence on activities suspected of constituting threats to the security of Canada, and supports departments and agencies through security screening and foreign intelligence collection.
• National Defence conducts cyber security research and development.
• Departments are responsible for the security, including security monitoring, of their applications.

If pressed on SSC’s responsibility vs. that of CSE

• CSE monitors the GC’s perimeter for malicious activities and leads the operational response to cyber security events.
• SSC designs and operates most security systems that protect the government’s IT infrastructure. CSE uses complementary solutions to supplement SSC‑managed security systems.
• SSC ensures the GC is protected by state-of-the-art commercial solutions while CSE fills the gap between commercial solutions and the most sophisticated adversaries.
• SSC is also responsible for the maintenance of the infrastructure, including installing upgrades and patches when needed.

If pressed on small departments and agencies (SDAs)

• In addition to its core mandate to deliver IT services to 45 departments, SSC provides other departments and agencies with the option of using a package of SSC-managed networks, data center, digital and security services.
• SSC is also working with 43 of those small departments and agencies to offer on a mandatory basis a sub-set of secure IT services, namely enterprise internet, email, remote access, local internet service and software to detect malicious activity.
• SSC will continue to work with small departments and agencies to onboard them to the enterprise infrastructure, addressing the gap raised by the National Security and Intelligence Committee of Parliamentarians (NSICOP).

If pressed on privacy

• SSC is committed to safeguarding sensitive and personal information. SSC follows GC policies, directives, standards and guidelines on information management.
• SSC projects identify privacy requirements through privacy impact assessments at inception. This helps to identify potential privacy risks early in a project’s lifecycle and enables the implementation of appropriate safeguards to protect Canadians’ privacy.

Issue

Shared Services Canada (SSC) is supporting an increased presence at workplaces in the National Capital Region and across Canada. Since September 9, 2024, all federal public servants eligible for a hybrid work arrangement are required to work on site a minimum of three days per week. Executives are required to work on site for a minimum of four days per week.

Key messages

• The Government of Canada (GC) is committed to providing employees the tools they need to deliver programs and services to Canadians.
• Over the last few months, SSC has ramped up work to support federal departments to comply with the updated hybrid work model and prepare for an increased presence in the workplace.
• SSC has made major upgrades to information technology (IT) networks to provide the bandwidth for employees to concurrently use modern tools, like Microsoft MS Teams, that support collaboration in a hybrid workplace.
• SSC has deployed Wi-Fi in 1300 buildings, including 50 new installations completed on schedule to support the increased presence in the workplace.
• Over 1085 videoconferencing systems have been modernized over the past year.
• By providing Wi-Fi and videoconferencing services, SSC will help support the work of almost 158,000 employees in workplaces across the country.

If pressed on

If pressed on timelines

• SSC is adding Wi-Fi capacity following a building-by-building approach to optimize timeliness, rather than working organization-by-organization.
• This work is complex and requires updating and replacing existing infrastructure in some buildings. Multiple trades people and commercial service providers need to be coordinated to complete this work.

If pressed on recent work

• Over the last few years, SSC has made major upgrades to the GC network, connectivity and collaboration tools to enable hybrid work by public servants.
• Over the past year alone, SSC:
  • Implemented major upgrades to the enterprise network, government-wide Internet and network security
  • Accelerated bandwidth improvements to enhance network performance and account for increased Internet traffic
  • Made significant upgrades to boardrooms that enable employees to collaborate from worksites with their remote colleagues using videoconferencing tools like MS Teams
  • Rolled out Microsoft Teams Rooms to GC meeting rooms to optimize and standardize the MS Teams meeting experience.

If pressed on increased bandwidth

• During the pandemic, SSC led the rapid roll out of MS Teams to partner departments and agencies to support collaboration while working remotely. These tools use approximately 20 times more bandwidth than previous digital collaboration tools (e.g. email).

Issue

There is increasing demand and competition for personnel, especially those with specialized IT skillsets, both in the private and public sectors. This may affect SSC’s ability to recruit and retain IT specialized staff to meet ongoing needs. ‌

Key messages

• SSC’s workforce plan focuses on building and maintaining a diverse and agile workforce that is engaged, equipped and inclusive.
• To succeed, SSC needs the right people, with the right skills, in the right jobs, at the right time.
• To achieve that, SSC offers:
  • a value proposition to employees (Recruit);
  • a culture that engages, motivates and rewards employees (Retain);
  • continuous learning that reskills and upskills employees, and provides career growth opportunities (Renew);
  • effective transition planning (Release).

If pressed on

If pressed on challenges

• SSC is experiencing some challenges in recruiting and retaining a bilingual workforce across all roles with the top reasons being candidates not meeting the language of the position and insufficient bilingual candidates in the labour force.
• Recruiting and retaining IT specialized skillsets is a key departmental-wide risk due to labour market availability and competition for talent.
• SSC’s hiring rate since 2017-18 has always been higher than its departure rate.
• SSC’s Recruitment initiatives provide access to talent pools/inventories, promote bilingual recruitment and create a student pipeline.

If pressed on compensation

• Compensation is negotiated with bargaining agents by the Treasury Board Secretariat.
• Their offers take into account other collective agreements, our ability to attract and retain highly qualified employees, the terms and conditions of employment in other workplaces and responsible fiscal management.
• As a government body, SSC offers growth and development opportunities while providing employees a career serving their country.

If pressed on diversity

• SSC is working to sustain an inclusive corporate culture and to increase the diversity of our workforce, aiming to meet or exceed workforce availability, as reflected in the Clerk’s Call to Action.
• SSC implemented a 3-Year Employment Equity, Diversity and Inclusion action plan which helps to institutionalize equity, expand diversity and promote an inclusive workforce.
• While SSC’s staff exceed workforce availability for visible minorities and Indigenous Peoples, gaps remain for women and persons with disabilities.
• To advance diversity and inclusion:
  • SSC’s Diversity Council provides strategic direction and leadership
  • SSC is working to diversify its boards to help minimize potential biases and barriers during staffing processes
  • SSC’s Duty to Accommodate Centre of Expertise fosters an inclusive, barrier-free and non-discriminatory workplace for all employees.

If pressed on official languages (OL)

• SSC’s Departmental OL Action Plan and Accountability Framework confirm its commitment to enabling an inclusive workforce that has the capacity to deliver programs and services in both official languages.
• SSC is working to improve its bilingual capacity by offering language training opportunities to all employees.
• In 2023-24, SSC invested in 1347 employees, to improve and maintain bilingual capacity.
• SSC is also seeking to increase bilingual capacity by promoting bilingual recruitment, including targeting key universities.

If pressed on numbers

• As of March 31, 2024, SSC has a workforce of approximately 10,000, with the majority being IT employees (approximately 64%).
• 70% of employees are in the National Capital Region and 30% in the regions.
• Planned Full-Time Equivalents (FTEs) are forecast to decline to 9100 for 2024–25 to align with business needs.
• The IT group departure rate was 6.3%, which was below the 8.2% overall departure rate for the Department.
• Over the next five years, 2,200 SSC employees will be eligible to retire. However, IT employees typically take their retirement well past their retirement eligibility.
• In 2022-23, SSC invested $16 million in employee learning and development, including language training.

Issue

The return to Order Paper Question 2870, requested by MP Earl Dreeshen (CPC, Red Deer-Mountain View), published figures on overtime costs for Shared Services Canada (SSC) and other departments and agencies.

Key messages

• All employees are required to responsibly manage public funds.
• As the Government of Canada’s (GC) information technology (IT) provider, SSC provides 24/7 service so departments and agencies can deliver vital programs and services to Canadians.
• SSC employees are often required to respond immediately to cyber attacks, outages and unforeseen circumstances, regardless of time or day, which can result in overtime.

If pressed on

If pressed on OPQ numbers

• OPQ-2870’s annual data on SSC overtime from 2016 to 2024 shows:
  • total overtime costs ranged from $5,279,504 to $11,879,661;
  • the number of employees with overtime payments over $10,000 ranges from 89 (for a partial year) to 327;
  • the single highest overtime payment ranges from $32,973 to $123,815.

If pressed on overtime

• SSC provides departments and agencies with modern, secure and reliable IT services so they can deliver digital programs and services to Canadians.
• Overtime within the organization is paid according to the terms outlined in the collective agreements.
• Overtime must be required and authorized by management before it is performed. Managers are expected to make reasonable efforts to avoid excessive overtime.

Issue

This note explains Shared Services Canada’s (SSC) general procurement practices and achievements.

Key messages

• SSC procures goods and services needed by the Government of Canada (GC) to deliver reliable, high quality digital services.
• SSC conducts fair, open and transparent procurement under mature controls.
• The majority of SSC contracts use a competitive bid process to get the best value.
• In some cases, SSC may award a non-competitive contract, when it is justified and aligned with government policy.
• As a common service provider, SSC leverages buying power across government, ensuring that the GC gets the best value. This scale and standardization also reduces operational costs.
• As information technology (IT) service delivery is modernized, the government is making procurement more agile, collaborative and inclusive, to promote social values, as well as environmental sustainability.

If pressed on

If pressed on numbers

• In 2023-24, SSC awarded 12,320 contracts and amendments valued at approximately $4.3 billion, including: 2,599 contracts valued at $565 million that were non-competitive. These contracts were granted in full compliance with the Government Contracts Regulations.

If pressed on sole-sourcing

• In some cases, SSC may award a non-competitive contract.
• In all instances, non-competitive procurement strategies are fully justified with a reference to the applicable exception to competitive bidding under the Government Contracts Regulations, as well as the limited tendering provisions under trade agreements.
• Like competitive contracts, non-competitive contracts are reviewed by SSC’s governance bodies based on risk and value.
• The reasons for entering into a non-competitive contract include:
  • a pressing emergency in which delay would be injurious to the public interest
  • only one vendor is capable of performing the contract (e.g., when intellectual property precludes competition)
  • specific equipment is required to be compatible or interoperable with existing infrastructure (no substitution)
  • it may not be in the public interest to solicit bids
  • low-dollar value

If pressed on no substitution

• In some situations, equipment must be procured from specific original equipment manufacturers in order to be compatible or interoperable with existing infrastructure.
• In the case of no-substitute non-competitive contracts, the procurement must be supported by technical justification. In some cases, the requirement is competed amongst resellers of the specific equipment required.

If pressed on need for professional services

• SSC uses professional services to support programs and projects, for example, to provide surge capacity for meeting delivery targets.
• In some cases, resources from industry will be used to complement SSCs current program and project resources to support their planning and execution.
• Over the past year, SSC further strengthened controls for professional services to ensure integrity and efficiency.
• SSC also reduced the use of external management consultants as part of government-wide work to refocus spending. These reductions and other operational efficiencies will save $289 million over 3 years ($109.3 million ongoing).

If pressed on Indigenous procurement

• SSC is committed to increasing the participation of Indigenous businesses in procurement as part of the GC’s broader reconciliation goals.
• SSC was included in the first grouping of organizations mandated to reach 5% of its procurement with qualified Indigenous organizations by 2022-23.
• As such, in 2022-23, SSC awarded 19.22% of the total value of SSC-funded contracts to Indigenous businesses. SSC anticipates it will continue to meet the 5% target in 2024-25.

If pressed on due diligence at SSC

• Prior to awarding a contract to an Indigenous business, SSC verifies if the company is listed on the Indigenous Business Directory. When a firm identifies themselves as Indigenous, but they are not on the Directory, SSC consults Indigenous Services Canada (ISC) to confirm the self-declaration. ISC is responsible for making that determination and updating the Indigenous Business Directory as required.

If pressed on supply arrangements

• SSC has implemented standing offers and supply arrangements with Indigenous considerations and continues to seek opportunities to include Indigenous considerations in new and renewed methods of supply. Those implemented thus far include:
  • Physical Infrastructure Supply Arrangement
  • Workplace Technology Devices Microcomputers National Master Standing Offer
  • Video Conferencing Procurement Vehicle
• SSC also creates opportunities for Indigenous businesses to participate in federal contracting by piloting the inclusion of Indigenous Benefit Plans in sectors with limited Indigenous business capacity. These Plans produce benefits such as Indigenous subcontracting, employment and skills training. SSC will continue to pilot these Plans and implement lessons learned moving forward.
• When high dollar value ($5M or higher) procurements are being considered, the SSC Governance and Procurement team challenges contracting officers to ensure proper consideration is given to Indigenous-owned businesses.

Issue

Media reports have focused on the year-over-year increase in general outsourcing by federal departments.

Key messages

• Shared Services Canada (SSC) works to ensure secure, modern and reliable government information technology (IT) infrastructure and systems.
• SSC’s considers best practices, existing capacity and solutions to determine whether:
  • a solution should be built and operated in-house;
  • a commercial solution should be leveraged; or
  • external expertise is needed to achieve the desired outcome.
• The procurement of professional services, including management consulting services, is sometimes needed to acquire special expertise.
• Aligned with government-wide priorities, SSC has reduced its use of professional services and now requires that alternatives be considered before deciding to contract.

If pressed on

If pressed on cost

SSC expenditures on professional and special services

Note: Includes professional services provided by other government departments.

• While yearly increases in professional services occurred due to increased needs, fiscal year 2023-24 saw a decrease to align with government priorities (Refocusing government spending).

If pressed on benefits

• Accessing digital services and technologies through industry expertise enables SSC to provide effective solutions and services that are aligned with global best practices.
• By accessing digital services and technologies through industry, SSC is able to provide secure and cost-effective solutions to meet the needs of partner and client departments.
• Working with industry allows SSC to leverage the large-scale investments that these firms have made in other public sector and private markets to obtain cost‑effective, secure and reliable off-the-shelf products and highly specialized solutions.

If pressed on controls

• SSC uses a robust process to assess all potential procurement options for the delivery of IT services. Controls increase based on value and risk, with escalating levels of governance and approval. Oversight includes technical and procurement governance bodies.

If pressed on refocusing spending

• SSC is reducing its use of external management consultants as part of a government-wide priority to refocus spending. These reductions and other operational efficiencies will save $289 million over 3 years ($109.3 million ongoing).

If pressed on 2024 process changes

• In 2024 SSC strengthened its controls on the procurement of professional services to enhance integrity and efficiency, reflecting updated practices across government, including the update to the Directive on the Management of Procurement.
• These changes ensure that internal options were considered before work was outsourced, improve how bids are evaluated, clarify what work is done by contractors, require contractors to disclose if they are working on other projects at the same time and impose stricter reporting requirements.

If pressed on management consulting

• Work performed by management consultants is diverse and can include providing advice on technology roadmaps, performing third-party reviews of business cases and supporting SSC to develop processes and tools for enterprise services.

If pressed on temporary workers

• In some cases, SSC uses temporary professional services for specialized IT expertise to complement its internal capacity, particularly to support programs and projects that have limited periods and require surge capacity for delivery.
• SSC uses temporary professional services responsibly and aligned with procurement policies.
• In no way does the use of temporary professional services impact SSC’s commitment to invest in maintaining a high performing workforce with the technical skills needed to deliver world‑class digital services for government.