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Appearance Before the House of Commons Standing Committee on Public Accounts (PACP) - May 27, 2021

Notice to readers

This report contains either personal or confidential information, or information related to security, which has been redacted in accordance with the Access to Information Act.

On this page

Opening statement and overview of the audit

In this section

1. Opening remarks for Roch Huppé, Comptroller General of Canada, to the Standing Committee on Public Accounts (PACP): 2021 Auditor General’s Report – Procuring Complex IT Solutions

Ottawa

May 27, 2021

Check against delivery

Thank you, Madam Chair.

I am joined today by Samantha Tattersall, Assistant Comptroller General, Acquired Services and Assets Sector, Office of the Comptroller General; Marc Brouillard, Chief Information Officer of the Government of Canada; and Stephanie Poliquin, Assistant Deputy Minister, People Management Systems and Processes, Office of the Chief Human Resource Officer.

We are pleased to be here with our colleagues from Public Services and Procurement Canada, Shared Services Canada, and Employment and Social Development Canada to discuss the 2021 Report of the Auditor General on complex IT procurement.

After my opening statement, my colleagues and I will be available to answer the committee’s questions.

Madam Chair, I will begin by explaining how the Treasury Board of Canada Secretariat (TBS) supports agile IT procurement while providing oversight to major IT projects as part of the government’s overall efforts towards more digitally enabled government programs and services.

The Office of the Comptroller General is responsible for providing functional direction and assurance government-wide for financial management, the management of our acquired services and assets, and internal audit.

Specifically, as it relates to acquired services and assets, the Office of the Comptroller General sets out the policies and directives for investment planning, projects and procurement.

The Office of the Chief Information Officer and the Canadian Digital Service support departments as they transition to a more digital government.

Through the Office of the Chief Information Officer, TBS also participates in IT governance committees to provide guidance and oversight throughout the development of an IT project.

And the Office of the Chief Human Resources Officer oversees policies and regulations aimed at driving excellence in people management across Canada’s core public administration.

Madam Chair, agile – or outcomes-based procurement – is one of many kinds of procurement strategies departments can use, so long as they are fair, open, transparent, and provide the best value.

And indeed, the current procurement policy allows for departments to procure in an agile way.

In her report, the Auditor General recognized the government’s progress on adopting agile procurement practices.

However, we realize that there is always room for improvement, which the Auditor General pointed out in her recommendations:

Recommendation 1.47 stated that TBS, Public Services and Procurement Canada, and Shared Services Canada should develop more comprehensive guidance and training for employees.

Recommendation 1.53 stated that TBS, working with Employment and Social Development Canada and Shared Services Canada, should ensure that governance mechanisms are in place for each of the complex IT procurements we audited.

TBS agrees with these recommendations, Madam Chair, and we are following-up with concrete steps.

I am pleased to announce that just a few weeks ago, consistent with our proposed actions under the Management Action Plan, Treasury Board has approved a new Directive on the Management of Procurement.

This reset modernizes and streamlines policy requirements and includes new requirements to better enable outcome-based, agile procurement approaches.

And importantly, Madam Chair, this work is not being done alone. We have been and will continue to work collaboratively with departments to build supporting guidance for the new directive as departments transition to it over the coming year.

In addition, we are working with Shared Services Canada and Public Services and Procurement Canada to make sure procurement professionals are aware of agile procurement and how to apply collaborative methods.

Lastly, we will work with key partners across federal departments to review our existing procurement competencies to determine if they specifically support agile procurement and whether they can be applied collaboratively.

As with any modern organization, Madam Chair, the Government of Canada requires secure, reliable and effective IT solutions to deliver on its mandate.

The recommendations put forward by the Auditor General and the actions we are taking in response will help us improve.

Thank you, Madam Chair.

We are ready to take the committee’s questions.

2. Auditor General’s report: Procuring Complex IT Solutions (winter 2021) (Office of the Auditor General)

[Redacted: The content of this section is published material and can be viewed at 2021 Reports of the Auditor General of Canada to the Parliament of Canada: Report 1 – Procuring Complex Information Technology Solutions.]

3. Management Action Plan: Procuring Complex IT Solutions

[Redacted: The content of this section is published material and can be viewed at Treasury Board of Canada Secretariat Detailed Action Plan to the Recommendations of Report 1 – Procuring Complex Information Technology Solutions of the 2021 Reports of the Auditor General of Canada.]

4a. Status of Auditor General’s Recommendation 1.47: Procuring Complex IT Solutions

Issue

The status of the implementation of Recommendation 1.47 of Management Action Plan to address recommendations of the Auditor General’s spring 2021 performance audit entitled Procurement of Complex IT Solutions for the Federal Government.

Key facts

Response

Background

Objective of this audit

This audit focused on whether selected departments planned and carried out agile procurements for complex IT solutions that supported the achievement of business outcomes and demonstrated the government’s commitment to fairness, openness and transparency in the process.

In particular, the audit examined the procurement processes for three major IT initiatives: Next Generation Human Resources and Pay (NextGen), Benefits Delivery Modernization, and Workplace Communication Services (WCS). While NextGen and Benefits Delivery Modernization used elements of agile procurement, WCS used a traditional procurement process.

Office of the Auditor General Recommendation 1.47 and the departmental response
Recommendation

TBS, Public Services and Procurement Canada, and Shared Services Canada should develop more comprehensive guidance and training for employees to improve understanding of agile procurement and how to apply collaborative methods.

TBS, with input from Public Services and Procurement Canada and Shared Services Canada, should also assess what skills, competencies and experience procurement officers need to support agile approaches to complex IT procurement.

Treasury Board of Canada Secretariat (TBS) response
Public Services and Procurement Canada’s response

TBS, Public Services and Procurement Canada, and Shared Services Canada are working closely together to successfully implement transformational IT procurements and fostering a common understanding of agile procurements. Work on agile procurement has been done in close partnership, in addition to engaging with other government departments that are procurement clients. Public Services and Procurement Canada will work in collaboration with TBS with respect to assessing the skills and competencies needed to support agile approaches to complex IT procurement. In addition, the department has a robust general procurement training regime in place for its procurement officers. The department has also undertaken significant efforts to further develop and launch guidance specific to agile procurement, as well as establishing a centre of expertise to support procurement officers in implementing this approach for public procurement. Guidance for procurement officers will continue to be refined and evolve, and as more procurements are undertaken using the agile procurement approach, opportunities will be identified to enhance training and other supporting tools. The department will complete this work by the fourth quarter of the 2022–23 fiscal year.

Shared Services Canada’s response

Shared Services Canada is working closely with TBS and Public Services and Procurement Canada with respect to undertaking transformational IT procurements and is fostering a common understanding of agile procurements. Work on agile procurement has been done in close partnership and through engagement with other government departments that are Shared Services Canada’s procurement clients. In December 2019, Shared Services Canada established the Centre of Expertise in Agile and Innovative Procurement, which is dedicated to supporting procurement officers in the implementation of agile and innovative procurements. The department has also undertaken significant efforts to launch and implement the Procurement Refresher and Essentials Program, which is continuously modernized. Shared Services Canada will continue to ensure that employees involved in transformational IT procurements have a more comprehensive understanding of agile and collaborative procurement methods through refinements to guidance, training, and support being provided to procurement officers

Status of TBS response

While TBS’ Management Action Plan includes four parts there are essentially two key activities:

  1. To seek Treasury Board approval of the updated Assets and Acquired Services Policy Suite, including a new Directive on the Management of Procurement. This was achieved on May 13. TBS is continuing to work with departments in various working groups to build supporting guidance for the new directive, including an annex related to outcomes-based procurement best practices. Guidance development will be underway for the next 12 months, and updated as needed.

    The change in policy means there is clearer delineation of requirements to consider outcomes based (agile) procurement methods were appropriate. For example, there is an emphasis on procurement planning and market analysis, rules for how best to do market engagement fairly and engage suppliers on a more iterative basis, and rules to consider unbundling larger contracts to permit smaller and more specialized firms to bid.
  2. To establish a Capacity Working Group to evaluate procurement required training curriculum at the Canada School of Public Service and review federal procurement competencies to ensure that they reflect the skills and experience procurement officers need to support agile approaches to complex IT procurement. Work is underway now to identify key players from Shared Services Canada, Public Services and Procurement Canada and the Canada School of Public Service as well any other key departments that will form part of the working group, which is expected to be launched by July 2021. It will undertake activities such as identifying departments’ existing training and tools, reviewing procurement officers expected competencies and working to improve frameworks and tools to fill any gaps. The goal is to have this work completed by the end of fiscal year 2022–23.

4b. Status of the Auditor General’s Recommendation 1.53

Issue

The status of implementation of the Office of the Chief Human Resources Officer’s Management Action Plan response to Recommendation 1.53 of the Auditor General’s report on procurement of complex IT solutions.

Key facts

Response

Background

Objective of this audit

This audit focused on whether selected departments planned and carried out agile procurements for complex IT solutions that supported the achievement of business outcomes and demonstrated the government’s commitment to fairness, openness and transparency in the process.

In particular, the audit examined the procurement processes for three major IT initiatives: Next Generation Human Resources and Pay (NextGen), Benefits Delivery Modernization, and Workplace Communication Services (WCS). While NextGen and Benefits Delivery Modernization used elements of agile procurement, WCS used a traditional procurement process.

The Office of the Chief Human Resources Officer was not implicated in the other two projects that were part of the audit (Benefits Delivery Modernization at Employment and Social Development Canada and WCS project at Shared Services Canada).

Recommendation 1.53 was specific to the Office of the Chief Human Resources Officer, and the response to this recommendation is included in TBS’s detailed Management Action Plan. The Management Action Plan has been provided to the House of Commons Public Accounts Committee and the Office of the Auditor General. Work towards completion of the Management Action Plan interim milestones is on track for completion within the identified timelines to the end of fiscal year 2022–23.

Recommendation 1.53

TBS, Employment and Social Development Canada, and Shared Services Canada should ensure that governance mechanisms are in place to engage senior representatives of concerned departments and agencies for each of the complex IT procurements we audited. This will be particularly important to support agile procurements of complex IT initiatives and their successful achievement of business outcomes.

TBS’s response

Agreed. For the Next Generation Human Resources and Pay initiative, the Office of the Chief Human Resources Officer in TBS will continue to work with Shared Services Canada and departments and agencies at senior levels as well as users from the human resource, pay and manager communities to define business needs and anticipate change management requirements.

As the initiative moves from discovery to more substantive phases, decision-makers will be required to be engaged thoroughly. A review of existing governance to align it with upcoming phases is underway.

Shared Services Canada’s response

Agreed. Shared Services Canada is pleased to report that processes are already in place.

Shared Services Canada’s Project Management Framework, in place since 2017, guides the effective management and delivery of the department’s projects throughout the project life cycle. The framework consists of tools such as a project control framework, integrated plans, risk registers, and the stakeholders’ responsibility and accountability matrix, which ensures continued alignment between all stakeholders to support the achievement of the desired business outcomes. The department’s Project Governance Framework documents and communicates the role of the various governance committees in providing effective oversight and a challenge function.

Shared Services Canada also has a Procurement Governance Framework since July 2019, which was developed, implemented, and communicated, as appropriate, to provide procurement oversight, control, integration, risk management and decision-making for greater transparency and accountability. This framework tailors the required stakeholder oversight levels in relation to the size, scope, complexity and risks of the procurements.

For the NextGen initiative, Shared Services Canada will continue to work with the Office of the Chief Human Resources Officer at TBS as well as senior officials and users in other departments and agencies to define business needs and anticipate change management requirements. As the initiative moves on from the discovery phase, decision-makers will be required to be engaged thoroughly. A review of existing governance to align it with upcoming phases is underway.

5. Committee overview

Standing Committee on Public Accounts (PACP)

Mandate of the committee

When the Speaker tables a report by the Auditor General in the House of Commons, it is automatically referred to the Public Accounts Committee. The committee selects the chapters of the report it wants to study and calls the Auditor General and senior public servants from the audited organizations to appear before it to respond to the Office of the Auditor General’s findings. The committee also reviews the federal government’s consolidated financial statements – the Public Accounts of Canada – and examines financial and/or accounting shortcomings raised by the Auditor General. At the conclusion of a study, the committee may present a report to the House of Commons that includes recommendations to the government for improvements in administrative and financial practices and controls of federal departments and agencies.

Government policy, and the extent to which policy objectives are achieved, are generally not examined by the Public Accounts Committee. Instead, the committee focuses on government administration – the economy and efficiency of program delivery as well as the adherence to government policies, directives and standards. The committee seeks to hold the government to account for effective public administration and due regard for public funds.

Pursuant to Standing Order 108(3) of the House of Commons, the mandate of the Standing Committee on Public Accounts is to review and report on:

The committee also:

Other responsibilities:

Committee members
Chair
Kelly Block Conservative Carlton Trail–Eagle Creek New member
Vice-Chair
Lloyd Longfield Liberal Guelph Returning member
Maxime Blanchette-Joncas Bloc Québécois Rimouski-Neigette–Témiscouata–Les Basques Returning member
Public Accounts Critic
Members
Luc Berthold Conservative Mégantic–L’Érable New member
TBS Critic
Philip Lawrence Conservative Northumberland–Peterborough South New member
National Revenue Critic
Len Webber Conservative Calgary Confederation New member
Matthew Green New Democratic Party Hamilton Centre Returning member
TBS Critic
Kody Blois Liberal Kings–Hants New member
Greg Fergus Liberal Hull–Alymer Returning member (non-voting: 42nd Parliament)
Parliamentary Secretary TBS and Digital Government
Francesco Sorbara Liberal Vaughan–Woodbridge Returning member (43rd-1 Parliament)
Jean Yip Liberal Scarborough–Agincourt Returning member (42nd Parliament)
OGGO study: procurement practices within Shared Services Canada
Meeting summaries

April 28, 2021: Shared Services Canada President, Paul Glover, and Deputy CTO, Matt Davies, appearing

Mr. Glover provided an overview of the procurement practices within SSC to the committee in his opening remarks and offered to provide the committee with any additional information the committee would find helpful. Shared Services Canada will continue to modernize and standardize the networks across government to allow for being able to react quickly to the needs of departments. Shared Services Canada is also working on improving IT infrastructure to support advancing technology. Mr. Glover also reviewed the recommendations provided by the Gartner report submitted to the committee by Shared Services Canada, Network Sourcing Decision Matrix Benchmark: Final Report.

Exchanges on the reasoning behind certain redactions in the documents previously provided by Shared Services Canada were tense at times. Mr. Glover explained the responsibilities and reasoning behind the redactions for Cabinet confidences and national security. Members were also curious about the advancements and modernizations Shared Services Canada has made in procurement processes and the procurement process with Cisco products.

Conservative

Liberal

Bloc Québécois

New Democratic Party

2021 Reports of the Office of the Auditor General
Meeting summaries

Tuesday, May 11, 2021: In her opening remarks, Auditor General Karen Hogan summarized the findings of her audit report on the Invest in Canada Plan:

In Ms. Gillis’s opening remarks, she mentioned Infrastructure Canada’s horizontal results reporting role was set out in TBS’s requirements.

Questions focused mostly on the Auditor General’s findings regarding the inability to properly assess whether the Invest in Canada Plan was achieving its objectives, given shortfalls in consistent tracking and reporting of data. There were also several questions regarding the issues raised with the horizontal initiative between Infrastructure Canada and the other federal organizations involved in the Plan.

The Secretary of the Treasury Board appeared, given TBS’s role in providing guidance and support to departments on managing and reporting on initiatives, as well as horizontal initiatives, but was not asked any questions.

Following the witnesses’ testimony, the committee unanimously passed a motion requesting Infrastructure Canada submit their Management Action Plan for this audit report by the end of May, as they did not submit it to the committee 48 hours in advance of the May 11, 2021, meeting, as required by a motion the committee had previously passed.

Conservative

Liberal

Bloc Québécois

New Democratic Party

Tuesday, April 13, 2021: In a briefing with the Auditor General on the reports tabled on March 25, 2021, she raised concerns from her report regarding the Investing in Canada Plan. Infrastructure Canada was unable to present a full picture of results achieved and progress made under the Plan and was not reporting on legacy programs against expected results, which amounted to almost half of total funding.

Questioning during the briefing primarily focused on the Investing in Canada Plan, with committee members expressing concerns over the Auditor General’s finding that Infrastructure Canada did not provide clear and complete reporting, as well as on challenges to coordination and the exchange of information between different orders of government.

The Auditor General also indicated her office had received $25 million in increased funding, which has allowed it to hire 100 new staff. She said this would improve their ability to conduct audits.

Conservative

Concerns with record-keeping and privacy/security issues due to public servants working from home

The Auditor General indicated that these were not issues identified by her office and that any privacy/security issues are flagged to the Deputy Head immediately

Requested additional information on the absence of clear and complete reporting for the Investing in Canada Plan

The Auditor General explained that a horizontal initiative makes reporting difficult as federal partners were reporting in different ways. Infrastructure Canada was not reporting year after year against the same programs, projects or the same measures, and it was difficult to identify whether progress had been made. The Auditor General recommended outlining the clear measures of progress. Infrastructure Canada cannot compel other deputies to do certain things and the importance of clear roles and responsibilities, accountability and good reporting mechanisms is clear in this case.

Liberal

Bloc Québécois

New Democratic Party

Other relevant parliamentary activity
TBS-related committee meetings
Meeting summaries

43rd Parliament

Tuesday, March 9, 2021: The Secretary appeared alongside the Comptroller General and one of the Privy Council Office’s Deputy Secretaries to the Cabinet for one hour to discuss the report on the message of the Auditor General in the 2018 Spring Reports (Public Service Culture). Questioning focused on how the public service’s accountability regime has improved, the future of the public service in terms of working from home and technology modernizations in better serving the public, the plans to avoid another Phoenix pay system failure, and concrete steps on how the government plans to address diversity and inclusion issues alongside the class action lawsuit.

Tuesday, February 23, 2021: The Secretary of the Treasury Board appeared alongside the Deputy Minister of Public Services and Procurement Canada and the Office of the Auditor General on Report 4: Oversight of Government of Canada Advertising, of the 2019 Spring Reports.

Tuesday, January 26, 2021: The Comptroller General appeared along with the Deputy Minister of Finance, and the Auditor General on the Public Accounts of Canada 2020.

Interest in TBS / MDGO Portfolio

Conservative

Liberal

Bloc Québécois

New Democratic Party

Other relevant parliamentary activity

Kelly Block (Saskatchewan: Carlton Trail–Eagle Creek): Conservative (Chair)

Kelly Block
  • Elected as the Member of Parliament in 2015 for Carlton Trail–Eagle Creek, previously for Saskatoon–Rosetown–Biggar from 2008 to 2015.
  • Served as vice-chair on the Standing Committee on Transport, Infrastructure and Communities in the 42nd Parliament.
  • Member of the Liaison Standing Committee.
  • Previous member of the Standing Committee of Government Operations and Estimates in the 43rd and 41st Parliament, the Standing Committee of Finance in the 40th Parliament.
  • Served as the Opposition critic for Public Services and Procurement Canada (appointed by Andrew Scheer).
  • Prior to her election, Mrs. Block served two terms as the first female mayor of Waldheim, Saskatchewan, as chairperson of the Gabriel Springs Health District, and was awarded the Maclean’s Parliamentarian of the Year – Rising Star – Award in June 2010.

Lloyd Longfield (Ontario: Guelph), Liberal (First Vice-Chair)

Lloyd Longfield
  • Elected as the Member of Parliament for the riding of Guelph in 2015.
  • Former member of the Standing Committee on Public Accounts Committee (PACP) in the 43rd Parliament and is a standing member of the Environment and Sustainable Development Committee (ENVI).
  • Former Executive Director of the Guelph Chamber of Commerce, and former business executive.

Maxime Blanchette-Joncas (Quebec: Rimouski-Neigette–Témiscouata–Les Basques), Bloc Québécois (Second vice-chair)

Maxime Blanchette-Joncas
  • Elected as the Member of Parliament for Rimouski-Neigette–Témiscouata–Les Basques in the 2019 federal election.
  • BQ Critic for Public Accounts.
  • Preceded in his riding by Guy Caron who served as the leader of the NDP from 2017 to 2019.
  • Business Administration graduate from the University of Quebec in Rimouski and former administrative officer at the Business Development Bank of Canada.
  • Was regional president of the Youth Forum of the Bloc Québécois.

Luc Berthold (Mégantic–L’Érable), Conservative member

Luc Berthold
  • Elected as the Member of Parliament for Mégantic–L’Érable in 2015.
  • Critic for TBS.
  • Previously the Vice-Chair of the Standing Committee on Transport, Infrastructure and Communities, and the Standing Committee on Agriculture and Agri-Food.
  • Prior to his election, Mr. Berthold was Nathalie Normandeau’s political assistant, and communications advisor for the Leader of the Official Opposition in 1999, the Interim Director of communications for Quebec’s Liberal Party in 2006, and worked as a speaker, coach and gave leadership training sessions.

Philip Lawrence (Northumberland–Peterborough South), Conservative member

Philip Lawrence
  • Elected as the Member of Parliament for the riding of Northumberland–Peterborough South in the 2019 federal election.
  • Shadow Minister of National Revenue.
  • Former member of Standing Committee of Justice and Human Rights.
  • Prior to his election, Mr. Lawrence received his BA from Brock University in Political Science, he attended Osgoode Hall Law School and the Schulich School of Business to obtain his law degree and MBA, and volunteered at the Financial Planning Standards Council.

Len Webber (Calgary Confederation), Conservative member

Len Webber
  • Elected as the Member of Parliament for the riding of Calgary Confederation in 2015.
  • Former Vice-Chair of the Standing Committee on Health in the 42nd Parliament.
  • Previously a member on the Standing Committee on Health, the Subcommittee on Sports-Related Concussions in Canada of the Standing Committee on Health and the Subcommittee on Agenda and Procedure of the Standing Committee on Health.
  • Prior to his election, Mr. Webber was a Member of the Legislative Assembly of Alberta, representing the constituency of Calgary–Foothills from 2004 to 2014, work as an apprentice electrician and managed his own contracting company for 10 years, and served as vice president and director of the Webber Academy, a private, non-profit school in southwest Calgary for children from junior kindergarten to Grade 12 founded by his father.

Matthew Green (Ontario: Hamilton Centre), NDP member

Matthew Green
  • Elected as the Member of Parliament for Hamilton Centre in the 2019 federal election in the riding formerly held by NDP MP David Christopherson.
  • NDP Critic for National Revenue / Canada Revenue Agency, Public Services and Procurement.
  • Former Councillor for the City of Hamilton (2014 to 2018).
  • Member of the House of Commons Standing Committee on Public Accounts (PACP), the Standing Committee on Government Operations and Estimates (OGGO), and the Subcommittee on Agenda and Procedure of the Standing Committee on Government Operations and Estimates.
  • Member of the Canada-Africa Parliamentary Association and the Canadian Section of ParlAmericas.

Kody Blois (Kings–Hants), Liberal Member

Kody Blois
  • Elected as the Member of Parliament for the riding of Kings–Hants in the 2019 federal election, in the riding formerly held by former TBS President Scott Brison.
  • Current member of the Standing Committee for Agriculture and Agri-Food, and the Subcommittee on Agenda and Procedure of the Standing Committee on Agriculture and Agri-Food.
  • Former member of the Standing Committee for Agriculture and Agri-Food, and the Standing Committee on Public Accounts.
  • Blois completed degrees in commerce, law and public administration, which sparked his interest in serving his community.

Greg Fergus (Hull–Alymer), Liberal Member: Parliamentary Secretary to the President of the Treasury Board and Minister of Digital Government

Greg Fergus
  • Elected as the Member of Parliament for the riding of Hull–Aylmer in 2015.
  • Member of the Standing Committee on Access to Information, Privacy and Ethics.
  • Former member of the Standing Committee on Finance, and the Standing Committee on Public Accounts.
  • Current and former Parliamentary Secretary to the President of the Treasury Board and Minister of Digital Government. Former Parliamentary Secretary to the Minister of Innovation, Science and Economic Development.
  • Former National Director of the Liberal Party of Canada and former political staffer in various ministerial offices.

Francesco Sorbara (Vaughan–Woodbridge), Liberal Member

Francesco Sorbara
  • Elected as the Member of Parliament for the riding of Vaughan–Woodbridge in 2015.
  • Member of the Standing Committee on Access to Information, Privacy and Ethics.
  • Former member of the Standing Committee on Finance, as well as the Subcommittee on Agenda and Procedure of the Standing Committee on Finance, and the Standing Committee on Public Accounts.
  • Parliamentary Secretary to the Minister of National Revenue.
  • Sorbara is a chartered financial analyst and worked in the global financial markets for nearly 20 years in both Canada and the United States for Scotiabank, JPMorgan Chase, and global credit rating agency DBRS.

Jean Yip (Scarborough–Agincourt), Liberal Member

Jean Yip
  • First elected in a by-election on December 11, 2017, as the Member of Parliament for the riding of Scarborough–Agincourt. Elected in 2019 as the Member of Parliament for the riding of Scarborough–Agincourt.
  • Current member of the Special Committee on Canada-China Relations.
  • Former member of the Public Accounts Committee, and the Government Operations and Estimates Committee.

Government procurement policy and governance

In this section

6. Replacement of the Treasury Board Contracting Policy with the Directive on the Management of Procurement

Issue

The Contracting Policy is being replaced with the Directive on the Management of Procurement as part of a larger reset of the Treasury Board policy suite related to assets and acquired services.

Key facts

Response

Background

The Contracting Policy was created in the late 1980s. Like other elements of the acquired services and assets policy suite, it was in need of a renewal to ensure better alignment with other policy instruments such as the Policy on Results and the Policy on Service and Digital.

Its rescission and replacement with the newly approved Directive on the Management of Procurement will be fully aligned with the larger Treasury Board policy suite and will modernize the requirements for acquiring goods, services and construction.

Updates to the Contracting Policy approved as part of Phase 1 of policy suite reset in April 2019, which will be reflected in new directive, included increases to contract entry limits, consideration of accessible options when setting contract requirements, and streamlined approval requirements for former public servants.

The directive is designed to be an enabling and principles-based instrument that is fully integrated with investment planning procedures and best practices. It will also improve existing processes while ensuring that procurements demonstrate fair, open and transparent practices.

The key changes under the Directive on the Management of Procurement include:

To complete the renewal of the procurement policy suite, the Policy on Decision Making in Limiting Contractor Liability in Crown Procurement Contracts will also be rescinded, and key requirements have been incorporated in the directive. The directive provides for a more streamlined set of decision-making considerations around risk and limitation of liability. In addition, Public Services and Procurement Canada and Shared Services Canada will share their risk mitigation tools, such as commodity groupings with pre-approved contract clauses and financial risk assessments with other departments when appropriate.

The directive is in effect May 13, 2021, but departments will have 12 months to fully transition to the new requirements. This phased implementation approach was designed to mitigate the change management risks and allow for departments to have sufficient time to transition to the new requirements.

7. Agile IT procurement

Issue

How does TBS support agile IT procurement while providing oversight of major IT projects?

Key facts

Response

Background

In 2017, the Prime Minister directed the Minister of Public Services and Procurement to modernize how the government procures new systems. Since then, Public Services and Procurement Canada and Shared Services Canada have introduced initiatives to meet this directive. Agile procurement is one of them. TBS is responsible for policy instruments and guidance to support the management of procurement activities.

Agile procurement is a collaborative approach focused on outcomes. Government and industry work to design procurements in an iterative manner to achieve results. It can include various types of multi-phased procurement processes to enable Canada to award multiple contracts to invite industry to build, customize and configure their solutions to meet the short-term and long-term requirements.

To deliver services efficiently, federal government organizations often need to procure new, complex IT systems to replace aging ones.

The government’s ability to deliver on large transformational projects has attracted considerable public attention, notably due to the Phoenix pay system. This scrutiny from the public, media, the Auditor General and third-party reports have highlighted gaps in project management skills, procurement and governance.

Although it does not directly guide departments on how to conduct complex IT procurements, the current Contracting Policy does allow for agile procurement methods, along with other procurement strategies as required. The Treasury Board Directive on Service and Digital provides departments direction on the review of IT-enabled projects through the Government of Canada Enterprise Architecture Review Board.

The Treasury Board Policy on the Planning and Management of Investments includes the requirements that investment decisions demonstrate strategic consideration of alternative approaches to procurement. The intention is to facilitate early engagement prior to significant investments in project definition. TBS also provides departments with feedback, advice and guidance on submitted concept cases using the Government of Canada Digital Standards as a framework.

TBS, though the Digital Operations Strategic Plan, also sets and provides insight into the government’s digital direction. This Strategic Plan identifies priorities and activities that are required of internal enterprise service organizations such as Shared Services Canada and Public Services and Procurement Canada, who support departments with how to conduct complex IT procurements in order to modernize service delivery, improve sustainability and promote digital government.

8. Digital Operations Strategic Plan

Issue

The Digital Operations Strategic Plan is the Chief Information Officer of Canada’s annual, forward-looking three-year strategic plan. It sets government‑wide priorities and lists key actions that departments and agencies need to transition to a more digital government and to meet the requirements of the Policy on Service and Digital.

Key facts

Response

Background

In fall 2016, in response to an audit conducted by the Office of the Auditor General, the Office of the Chief Information Officer of Canada in TBS issued strategic direction to federal departments and agencies for information management and IT by publishing the first Government of Canada Information Technology Strategic Plan.

As committed to in response to the Audit, the first annual update to the strategic plan was produced in 2017. It was then refocused in fall 2018 to include service alongside information management and IT priorities and renamed the Digital Operations Strategic Plan.

In 2019, the government reaffirmed its commitment to digital government and better service delivery, a commitment strengthened when the Prime Minister created a separate portfolio for digital government and appointed its first stand-alone Minister responsible for the Digital Transformation of Government.

In April 2020, the Treasury Board Policy on Service and Digital formalized the requirement for the Chief Information Officer of Canada to issue “an annual, forward‑looking three-year enterprise‑wide plan that establishes the strategic direction for the integrated management of service, information, data, information technology (IT) and cybersecurity.”

The 2021–2024 Digital Operations Strategic Plan, published on May 13, 2021, fulfills this requirement and outlines four strategic pillars – or areas of work directly related to the Digital Government Strategy – necessary to make digital government a reality for Canadians and the public service. These pillars are:

Each pillar is articulated through priorities and associated actions that departments and agencies need to fulfill to advance the digital government agenda.

Deputy heads are responsible for developing their annual, forward‑looking three-year integrated plans for service and digital in alignment with the Digital Operations Strategic Plan and in support of their departmental mandates and requirements.

9. Roles and responsibilities of departments

Issue

What is the role of TBS in support and oversight of agile IT procurements and those of departments?

Key facts

Response

Background

In 2017, the mandate letter for the Minister of Public Services and Procurement requested that they modernize how the government procures new systems. Public Services and Procurement Canada launched pilots for challenged-based and agile procurement. In this agile approach, industry is solicited to respond to government’s challenges. This involves an open, fair and transparent competitive process that doesn’t rely on long, complicated specifications.

Agile procurement is a collaborative approach that focuses on project and contract outcomes. It brings together government and industry to design procurements in an iterative manner to achieve results. This includes multi-phased procurement processes that enable Canada to award multiple contracts to invite industry to build, customize and configure their solutions to meet the short-term and long-term requirements. This process enables Canada to test and course-correct through shorter project delivery time frames and to quickly identify the challenges and successes to achieve best value for Canadians.

Treasury Board policies such as the Contracting Policy as well as the new Directive on the Management of Procurement (which will replace the Contracting Policy in May 2022) do not prescribe processes on how to conduct complex IT procurements. Rather they set out key principles for fairness, openness and transparency, and allow for agile procurement methods.

The new Directive on the Management of Procurement more clearly enables agile. It includes a clearer delineation of requirements to consider outcomes-based (agile) procurement methods where appropriate, such as:

The Directive on the Management of Procurement falls under the Treasury Board Policy on the Planning and Management of Investments. This policy:

The Treasury Board Directive on Service and Digital provides departments direction on the review of IT-enabled projects through the Government of Canada Enterprise Architecture Review Board, generally through the Office of the Chief Information Officer:

  1. The Chief Information Officer of Canada is responsible for:
    • Providing advice to the Secretary of the Treasury Board of Canada and the President of the Treasury Board of Canada about:
      • governing and managing enterprise-wide information, data, IT, cyber security, and service design and delivery
      • prioritizing Government of Canada demand for IT shared services and assets
      • using emerging technologies and the implications and opportunities of doing so for the Government of Canada
  2. The Office of the Chief Information Officer also provides departments with feedback, advice and guidance on submitted concept cases using the Government of Canada Digital Standards as a framework.
  3. Through the Digital Operations Strategic Plan, the Office of the Chief Information Officer sets and provides insight into the government’s digital direction. This Strategic Plan identifies priorities and activities that are required of internal enterprise service organizations such as Shared Services Canada and Public Services and Procurement Canada, who support departments with how to conduct complex IT procurements, in order to modernize service delivery, improve sustainability and promote digital government.

The Department of Public Works and Government Services Act gives the Minister of Public Works and Government Services exclusive responsibility for the procurement of all goods as described in the Act. Other departments and agencies may only procure goods either when their own legislation specifically permits or when an appropriate delegation of authority has been made by the Minister of Public Works and Government Services.

The Minister of Digital Services has provided procurement authorities to Shared Services Canada which is responsible for setting up IT contracts, standing offers and supply arrangements for the Government of Canada, and will continue to ensure only trusted equipment and software are used on Government of Canada systems.

10. Governance and oversight of complex IT projects

Issue

The Auditor General of Canada’s message in the 2018 Spring Reports indicates a change is needed as it relates to the governance and oversight of major projects within the Government of Canada.

Key facts

The following instruments apply to major projects, such as those included in the Office of the Auditor General (OAG) Report 1: Procuring Complex Information Technology Solutions:

Response

Background

TBS has introduced governance and oversight mechanisms that are aimed at improving the management of large, complex projects.

The following policy instruments apply to major projects, such as those included in the Office of the Auditor General Report 1: Procuring Complex Information Technology Solutions:

For all projects
  1. Deputy head responsibilities under the Policy of the Planning and Management of Investments:
    • ensuring that no action is taken with respect to planned investments without the requisite authorities in place
    • designating senior officials who are responsible for supporting the deputy head’s accountability for all requirements under the Policy on the Planning and Management of Investments, including the capacity, competency and knowledge of the department’s workforce in project and programme management, procurement, real property and materiel management
    • ensuring that all projects and programmes have a sponsor who must be at the assistant deputy minister level or equivalent for projects with a Project Complexity and Risk Assessment (PCRA) of 4 or digital projects with a PCRA of 3 or 4
    • in the case of all projects with a PCRA of 4, and projects over $100 million with a PCRA of 3, or programmes, signing appointment letters that document the responsibilities and authorities of the sponsor
  2. Artifacts to support project approval:
    • The directive expanded the requirement for those artifacts which must be submitted when departments seek project approval through the Treasury Board submission process.
    • The directive requires that artifacts be shared with TBS at the time of submission (including the Business Case, Project Management Plan, Project Gating Plan, Procurement Plan, and Project Charter).
    • These documents provide valuable insight as to the approach being taken and the control mechanisms in place with which to manage and govern the project.
    • The directive sets out requirements to maintain a business case that reflects new information as the project progresses and a benefits realization plan that tracks the realization of project benefits.
    • This reflects a shift to focusing on the achievement of outcomes and benefits, which has contributed to better-managed projects that meet their intended ends.
For IT projects
  1. Concept case:
    • Departments must develop a Concept Case when contemplating an investment in a digital (IT) project. The Concept Case provides for a concise articulation of the business problem and envisioned outcomes that the investment is meant to support.
    • Departments must seek the endorsement of the Chief Information Officer for all Concept Cases. With the endorsement, the Chief Information Officer provides targeted recommendations to situate the sponsoring department for success. Recent examples of recommendations from the Chief Information Officer include:
      • ensure interoperability and data sharing with partner organizations
      • leverage automation and artificial intelligence to reduce manual processes and improve services, with equitable outcomes for all Canadians
      • collaborate and align with relevant Government of Canada enterprise initiatives with a focus on potential reuse or repurpose of existing solutions
      • integrate users directly into the design and development as a regular feedback loop to ensure outcomes are realized
      • mitigate potential privacy considerations through privacy protections, as well as through the ethical and secure collection and use of data
    • Since the introduction of the Concept Case, departments have demonstrated an increased capacity to identify business problems, articulate targeted outcomes and benefits, and demonstrate alignment to the strategic direction of the Government of Canada.
  2. Government of Canada Enterprise Architecture Review Board (GC EARB):
    • Enterprise architecture is a conceptual blueprint that defines the structure and operation of an organization by considering and aligning business, information, application, technology and security domains to support strategic outcomes.
    • GC EARB is defined in the Policy on Service and Digital and Directive on Service and Digital where the Chief Information Officer of Canada is responsible for:
      • “prescribing expectations with regard to enterprise architecture”
      • “establishing an enterprise architecture review board (EARB) that is mandated to define current and target architecture standards for the Government of Canada and review departmental proposals for alignment”
    • The process includes early engagement in advance of the GC EARB date to co-architect proposals with departments for alignment to the Enterprise Architecture Framework, Target State Architecture and Enterprise Solutions.
    • GC EARB has reviewed the major modernization projects underway at Employment and Social Development Canada, Next Gen HR and Pay, Financial and Materiel management and Immigration, Refugees and Citizenship Canada for alignment to the digital standards and Enterprise Architecture Framework.
  3. Expanded Chief Information Officer authorities:
    • The authority of the Chief Information Officer to establish a program to oversee high-risk, complex digital (IT) projects and programmes came into effect on April 11, 2019.
    • The expanded authorities of the Chief Information Officer include identifying digital (IT) projects for inclusion in the oversight program (on the basis of complexity, risk and alignment with government priorities), and conducting oversight activities on the projects within this program.
    • For projects within the oversight program, the Chief Information Officer has the latitude to commission independent project reviews, direct deputy heads to undertake course corrections, and intervene directly as warranted, to ensure projects remain on track to meet business outcomes and benefits.
    • For all digital (IT) projects, the Chief Information Officer has the latitude to recommend cancellation of the project to Treasury Board when evidence demonstrates the project is not viable.
    • Through the oversight program, the Chief Information Officer has gained a much clearer line of sight with respect to the management and governance of digital (IT) projects and programmes.
    • These additional oversight mechanisms apply to both existing and future projects, including enterprise digital (IT) projects and programmes such as NextGen Pay.
  4. Delivery Confidence Assessment:
    • The oversight program, established by the Chief Information Officer, oversees and guides digitally enabled investments across the Government of Canada on behalf of the Treasury Board from concept to benefits realization.
    • The program provides departments with actions and recommendations (derived from experience and evidence-based analysis) that can be quickly implemented to improve the chances of successful outcomes and benefits realization.
    • Beginning September 2018, the oversight program assesses the performance and health of digital (IT) projects within the program using a Delivery Confidence Assessment approach.
    • The Delivery Confidence Assessment reflects the professional judgment of the TBS oversight team as to the likelihood that the project or programme will achieve its intended business outcomes.
    • Initiatives are assessed quarterly based on evidence gathered during the oversight process and considerations of key project and programme success factors and are shared with departmental project sponsors for action as needed.
  5. Independent Project Reviews:
    • TBS has recently updated the Independent Review Program through the provision of new guidance aimed at the project sponsor to reinforce the importance of independent third-party advice relative to digital (IT) projects.
    • TBS independent review guidance and methodology reflect current best practices in project assurance, particularly in the governments of the United Kingdom and New Zealand (both leaders in this area).
    • An independent review is a process which provides for a critical evaluation of the project conducted by qualified, unbiased, arm’s-length experts to assess the likelihood of the project to meet its objectives within its approved cost, schedule and scope parameters.
    • The goal of the program is to normalize the use of independent reviews, thereby providing greater visibility to senior project leadership on a project’s progress and corrective measures needed to keep the project on track.
  6. New Deputy Minister Committee Structure:
    • Governance of digital modernization across the Government of Canada will be driven by three specific deputy minister committees:
      • Committee on Digitization of Services: Focused on overall strategy and priority-setting for digitization of services. This committee will also ensure reporting on digital issues to the Coordinating Committee of Deputy Ministers.
      • Committee on Enterprise Priorities and Planning: Focused on implementing an integrated approach for the management of external and internal enterprise services, information, data, IT and cyber security; prioritization of Government of Canada demand for IT shared services (and assets).
      • Committee on Core Services: Focused on enabling and supporting deputy heads responsible for the transformation and modernization of core services, including implementation of milestones-based access to funds for these initiatives, as directed by the Government of Canada.
    • The new Deputy Minister Committee Structure responds to a need to streamline and improve the efficiencies of the overall suite of deputy minister committees.
    • The committee mandates are dedicated to advancing the government’s agenda, in particular complex, horizontal priorities.
    • This complementary nature of these committees will allow for enhanced oversight and horizontal approaches to complex problems, an enterprise-wide lens to be applied to priority-setting for modernization, new perspectives to development and implementation of solutions, and enable departments in the delivery of critical initiatives.
    • Each committee’s membership has been tailored to its area of responsibility, to ensure the right mix of perspectives, roles and skills are incorporated, bringing a level of expertise and support for decision-making. Overlap in membership is purposeful to ensure consistency and continuity.

11. Project management development, learning and community engagement

Issue

The Government of Canada is responding to the learning and development needs of its project management community, which continues to evolve as projects become more complex and new approaches are adopted in the management of projects.

Key facts

Response

Background

TBS supports the professional development of the project management community on an ongoing basis through community-based surveys, community engagement activities and demographic analysis to understand the needs and composition of the community to inform professional development and learning activities. For example, TBS has developed an inventory of project management practitioners within departments to support departmental senior officials in managing their departments’ project management capacity.

In consultation with TBS and departments, the Canada School of Public Service supports leadership and professional development across the public service by identifying organizational needs and designing and delivering high-quality, practical programs that address the key development requirements of public service employees.

The Canada School of Public Service currently offers a suite of project management learning opportunities, including: (1) an online introduction to project management course for general learners; (2) learning events, including an Annual Learning Day for the Government of Canada’s project management community; (3) a series of 16 online courses that allow public servants to maintain professional certifications through the Project Management Institute; and (4) four courses on agile project delivery.

The Canada School of Public Service is also working with the Office of the Comptroller General to develop new learning products aligned with the Government of Canada’s project management competency framework. Potential products include exploring the development of a Senior Project Leadership Program for senior executives.

Other public and private sectors organizations have professional development and certification programs to support project management.

A tiered project management committee model has been established to engage the project community at all levels in an effort to promote the exchange of information and build a sense of networking and collaboration. They include:

In 2019–20, TBS formalized mechanisms for gathering, sharing and implementing lessons learned from IT project challenges and failures across the Government of Canada through the TBSAC, as well as the newly established SDO Council, some of which included agile project approaches.

TBS is actively engaging with external organizations and partners in the project management domains to share lessons learned and best practices. For example:

Related and hot issues

In this section

12. NextGen Human Resources (HR) and Pay: Office of the Chief Human Resources Officer

Issue

Update on the Next Generation HR and Pay Initiative – Office of the Chief Human Resources Officer exercising the business owner role.

Key facts

Response

Background

Implementing a modern HR and pay solution is not a simple task. It requires collaboration from the business owner, digital experts, functional specialists, leaders, employees and bargaining agents to modernize the way HR and pay services are managed and delivered at the same time a new technology solution is being configured.

The Office of the Chief Human Resources Officer has been working closely with Shared Services Canada, the project lead and technical authority, and SAP on the NextGen HR and Pay Initiative. The Office of the Chief Human Resources Officer’s focus is leading the work in business transformation and change management.

NextGen HR and Pay is a multi-phased initiative with a goal of building a sustainable and efficient digital HR and pay solution that meets the diverse needs of federal employees across Canada now and into the future.

TBS launched the initiative in 2019 via a procurement process, which identified a pre-qualified list of three vendors to support the government in designing and implementing a next-generation HR and pay solution to replace existing HR and pay systems. Through a competitive process among the three vendors, the SAP proposed solution was selected for pilot testing in the government to better inform recommendations on a future HR and pay solution.

In 2020, accountability for the Initiative was transitioned to the Minister of Digital Government and the President of Shared Services Canada. Over the past year, the initiative has completed planning and preliminary work on defining how a solution could be designed and implemented. Work will shortly begin on the next phase of the initiative to design and experiment with the proposed solution via pilots and feasibility studies – the first pilot is with the Department of Canadian Heritage, and subsequent pilots will be defined to expand the testing of solutions.

[This information has been redacted]

As was pointed out when the government announced funding for this initiative in Budget 2018, the government is interested in getting the design and implementation right rather than rushing to roll-out a solution. Lessons learned through work on other major IT projects and in particular the pay administration transformation has governed this focused and controlled approach.

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2021-09-24