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President of the Treasury Board appearance before the Standing Committee on Government Operations and Estimates (OGGO) – Supplementary Estimates (C) 2023–24 – March 2024

On this page

  1. Scenario note

Appearance Specific Information – Supplementary Estimates (C) 2023-24

  1. Overview of Supplementary Estimates (C), 2023–24

Public Servants, HR Management and Guidance

  1. Class action: Black public servants (Thompson class action)
  2. Phoenix-related issues

Mandate Commitments

  1. President of the Treasury Board priorities

Other Issues for TBS

  1. Government of Canada cyber security events: Government of Canada’s roles and responsibilities and recent events
  2. Responsible use of artificial intelligence
  3. GC Strategies
  4. COVID Alert application

Highlights

  1. Supplementary Estimates (C) 2023–24: highlights

Key Issues

  1. Supplementary Estimates (C) 2023–24: key issues

Appearance of the President of the Treasury Board, the Honourable Anita Anand, and Treasury Board of Canada Secretariat officials before the House of Commons Standing Committee on Government Operations and Estimates (OGGO) on the Supplementary Estimates (C) 2023–24

A. Scenario note

Background

The President of the Treasury Board tabled the Supplementary Estimates (C) 2023–24 in the House of Commons and in the Senate on Thursday, February 15, 2024.

The Estimates are referred to various House of Commons standing committees, including to OGGO for the Treasury Board of Canada Secretariat (TBS). In the Senate, all votes are referred to National Finance Standing Committee (NFFN).

House committees may examine and amend the estimates until three sitting days before the last allotted supply day (March 21). After the deadline, committees may conduct “subject matter” studies but can no longer amend the estimates. There is no deadline for NFFN’s study, and it cannot amend the Estimates.

Pursuant to a motion adopted on March 14, 2024, OGGO has invited the President and TBS officials to appear on March 20, 2024, as part of their study on the Supplementary Estimates (C) 2023–24, for one hour. The Minister and officials from Public Services and Procurement Canada (PSPC) will also appear in the other hour.

NFFN has invited the TBS officials to appear on March 26, 2024, on the Supplementary Estimates (C), 2023–24.

Day of: scenario (OGGO)

The meeting is expected to begin at 4:30 pm. The President is scheduled to attend for one hour along with TBS officials. The Minister and officials from PSPC will also appear for one (separate) hour. It is possible that the start time of the meeting is delayed due to votes in the House of Commons.

Briefing binder

Two placemats and one binder have been prepared in anticipation of the appearance, which the President’s office and supporting witnesses initially received on February 16 and received updated subsequent material the week of March 11, 2024. One placemat provides an overview of the key government-wide items included in the Estimates, including refocusing government spending and compensation. The binder also includes material on key issues such as collective bargaining, the transition to Canada Life, growth of the public service, and federal procurement and professional services.

Supporting officials

Other relevant information

OGGO adopted a motion to extend their ArriveCAN study and it is ongoing. The Chief Technology Officer appeared on November 14, and various officials from the Canada Border Services Agency have appeared on this study. ArriveCAN has also been studied by the Standing Committee on Public Accounts. The Auditor General released a study on ArriveCAN and has appeared at both the Standing Committee on Public Accounts and OGGO to discuss it.

OGGO has extended their study on both diversity in procurement and on outsourcing of contracts. The outsourcing study heard from TBS and PSPC officials on October 3, 2022, and from public service unions on October 24, 2022. The unions were very critical of government outsourcing during their appearance. The diversity in procurement study began with a single meeting in October and is now in a holding pattern.

OGGO has also adopted a motion to send for all contracts between a government department, agency or Crown corporations and GC Strategies, Dalian or Coradix going back at least 12 years, and that the unredacted documents be submitted to the clerk of the committee in both official languages in three weeks. TBS has submitted the contracts by the deadline and will be submitting the associated task authorizations this spring.

OGGO has also begun a study on the changeover of the Public Service Health Care Plan from Sun Life to the Canada Life insurance company. The committee has heard testimony from Canada Life, TBS and PSPC officials, and union representatives.

1. Overview of Supplementary Estimates (C), 2023–24

Issue

Additional spending presented in Supplementary Estimates (C), 2023–24

Response

Canadians and the parliamentarians who represent them have the right to know how public funds are being spent and to hold the government to account.

Through these Supplementary Estimates, the government is seeking parliamentary approval of $8.9 billion in new voted spending.

These planned expenditures support a variety of government priorities, including programs for First Nations, military procurement projects and operations, as well as for negotiated salary adjustments and adjustments made to terms and conditions of employment.

Through these Supplementary Estimates, the government is also providing additional information on $4.3 billion in forecasted statutory budgetary expenditures.

These planned statutory expenditures reflect updates from the 2023 Fall Economic Statements, such as an increase in interest on unmatured debt, fiscal stabilization and an increase to Canada Student Grants.

Supplementary Estimates (C), 2023–24 also show $11.9 billion in funding previously approved by Parliament that has been frozen and will lapse at the end of the fiscal year.

This includes amounts to be allocated to future years as well as reductions relating to the refocusing government spending and the realigning previously announced spending exercises announced in Budget 2023 and led by the Minister of Finance.

Background

Supplementary Estimates present information on additional spending requirements that were either not sufficiently developed in time for inclusion in the Main Estimates or have subsequently been refined to account for developments in particular programs and services.

The Supplementary Estimates (C), 2023–24 present a total of $13.2 billion in incremental budgetary spending, which reflects $8.9 billion to be voted and a $4.3‑billion increase in forecast statutory expenditures.

If approved by Parliament, voted budgetary spending would increase by $8.9 billion (3.7%) to a total of $248.2 billion. Much of the new voted spending is for:

The Supplementary Estimates (C), 2023–24 also present $362.4 million in funding for Immigration, Refugees and Citizenship Canada to help provinces and municipalities continue to provide interim housing for asylum claimants.

These Estimates also show, for information purposes, changes in planned statutory expenditures. Statutory budgetary expenditures are forecast to rise $4.3 billion (1.8%) to a total of $244.4 billion. The largest changes are:

Statutory non-budgetary expenditures are forecast to rise $2.7 billion, primarily related to:

Frozen allotments

During the fiscal year, the government can take decisions to adjust priorities or the implementation of individual initiatives. Frozen allotments are used to reduce the amounts available for departments to spend in the current year. At the end of the fiscal year, these frozen allotments are included in the lapse shown in Public Accounts.

For the fiscal year 2023–24, $11.9 billion has been frozen and is set to lapse at year-end. Most of these frozen allotments are due to $6.8 billion in planned reprofiling of funds to future years and $2.9 billion in reductions, including reductions stemming from the Budget 2023 refocusing government spending and realigning previously announced spending exercises. More information on these two exercises is available online.

2. Class action: Black public servants (Thompson class action)

Issue

The government filed a motion to dismiss a class action lawsuit that seeks damages on behalf of current and former Black public servants, as well as any Black individuals who have applied for positions in federal government departments and agencies, dating back to 1970. The government is taking continued steps to address issues related to harassment and systemic discrimination in its institutions.

Response

The Government of Canada (GC) is working to create a diverse and inclusive public service, free from racism, harassment and discrimination.

This is why we provided close to $50 million through Budgets 2022 and 2023 to create a Mental Health Fund for Black public servants and establish dedicated career development programs, including those to prepare Black public service leaders for executive positions.

On February 21, 2024, I announced new initiatives as part of the government’s ongoing work to deliver an Action Plan for Black Public Servants. Specifically:

Further, the Public Service Commission of Canada is supporting the career development of Black public servants by providing individualized assessment, counselling and coaching services. The Public Service Commission of Canada is building on its expertise and leveraging available research and feedback from Black employees to improve the delivery of its career development services.

In addition, Budget 2023 provided $6.9 million over two years, starting in 2023–24, to TBS to advance a Restorative Engagement Program. This program will empower employees who have suffered harassment and discrimination and drive cultural change in the public service.

A panel of experts are providing recommendations to the government on the design and creation of this new program.

We know there is more to be done, but we believe that the courts are not the correct forum for addressing matters that can or could have been grieved under the Federal Public Sector Labour Relations Act. There are existing processes to deal with complaints or grievances related to harassment and discrimination in the public service.

Background

The Attorney General of Canada is engaged in several employment-related discrimination and harassment class actions on behalf of a number of departments and agencies.

The broadest, largest and most high-profile of these cases is Thompson et al. v. HMK. This proposed class action seeks damages on behalf of current and former Black public servants and any Black individuals who have applied for jobs in the federal public service dating back to 1970 but were not successful due to their race.

The plaintiff group in the proposed Thompson class action sent a letter to the United Nations’ Office of the High Commissioner for Human Rights setting out various allegations with respect to ongoing systemic anti-Black harassment and discrimination in the federal public service. Canada has not been advised of any advancements in this area.

Additionally, Amnesty International Canada filed a motion to intervene in the Thompson case in July 2023. In December, Canada responded that this motion should be denied, as interventions at the certification stage are exceptional and the proceedings are not the type of exceptional proceedings where international law can provide any valuable guidance. We continue to await the Court’s decision on the intervenor motion.

The certification hearing in Thompson is scheduled to be heard in Federal Court after May 5, 2024.

3. Phoenix-related issues

Issue

Status of the Phoenix damages agreements reached with unions in 2019 and 2020 and the new human resources and pay system

Response

We are committed to ensuring that federal public servants are paid properly for their important work, and we continue to take action on all fronts to resolve pay issues.

The GC and a number of public service unions have reached agreements to compensate current and former employees who were affected by the implementation of the Phoenix pay system in 2016.

The agreements cover general damages from April 1, 2016, to March 31, 2020.

All employees covered by the damages agreements have now received their general damages compensation. In addition, a claims process is in place to allow eligible current and former employees to file claims for severe damages.

The GC remains committed to resolving outstanding pay issues for public servants while modernizing processes and systems to improve the overall human resources and pay experience for employees.

In support of this work, we will continue working with all partners, including bargaining agents, to simplify human resources and pay processes.

If pressed on the need for future Phoenix damages compensation:

Background

To date, approximately $711 million has been paid in damages relating to the Phoenix pay system, including some $26 million in 2023.

$16.5 million from the 2024–25 Main Estimates is allocated to reimburse departments that pay claims for Phoenix damages.

Phoenix damages entitlements for employees (current and former) are provided by the following damage agreements with the bargaining agents:

2019 damages agreement (all bargaining agents except the Public Service Alliance of Canada)

In May 2019, the GC reached a tentative agreement with members of the Senior Level Phoenix Union-Management subcommittee on damages to compensate employees impacted by the implementation of the Phoenix pay system. The agreement was ratified in June 2019 by all federal government bargaining agents except for the Public Service Alliance of Canada (PSAC), who stated the compensation was insufficient. Many separate agencies signed similar agreements covering their employees (except those represented by the PSAC).

The agreement applies to up to 118,000 current and 21,000 former employees. The agreement includes:

The claims process for financial costs or lost investment income was launched in February 2020. The claims process for severe personal or financial hardship was launched in January 2021.

2020 Public Service Alliance of Canada damages agreement

The PSAC signed their Phoenix damages agreement in October 2020. The PSAC agreement is similar to the 2019 agreement except employees received general damages as a cash payment up to $2,500 instead of leave credits, and up to $1,000 of the general damages payment was for the late implementation of the 2014 collective agreements, while up to $1,500 was for stress and aggravation.

Current employees covered by the 2020 agreement received their general damages in March and September 2021. The claims processes for former and current employees were launched in November and December 2021.

Aligned with the guidance of the Canada Revenue Agency (CRA), income tax was deducted from the lump-sum general damages payments. In March 2023, CRA and the PSAC filed a joint reference on the issue of taxability of the payments to the Tax Court of Canada. CRA has advised TBS that an agreement was signed with a member of the PSAC to settle the matter. As part of the terms of settlement, the parties agreed that the portion of the lump-sum payment for stress, aggravation, pain and suffering (up to $1,500) is non-taxable. The lump-sum payment up to $1,000 remains taxable. To benefit from the settlement, PSAC members must file an objection with CRA. TBS has asked CRA for guidance on the taxation of future general Phoenix damages payments as there are former employees covered by the 2020 agreement who remain eligible to file a claim.

2021 agreement of the catch-up clause related to the 2019 Memorandum of Agreement

The signing of the PSAC damages agreement triggered the negotiation of a catch-up agreement (ratified on March 3, 2021) to align the compensation between the agreements.

Current and former employees covered under the 2019 damages agreement may be eligible for other monetary benefits that are part of the PSAC damages agreement, such as general damages compensation of up to $1,000 for the late implementation of the 2014 collective agreements.

Catch-up payments were provided to eligible current employees in September 2021. The claims process for catch-up payments to former employees was launched in December 2021. Current employees represented by the PSAC who received leave under the 2019 agreement have also received their outstanding catch-up payments.

4. President of the Treasury Board priorities

Issue

What are the priorities and mandate commitments for the President of the Treasury Board and how are they being advanced?

Response

As President of the Treasury Board, I am focused on ensuring that government is well managed and effective, so that Canadians are well served.

My top priorities driving toward this objective are to ensure that government is fiscally prudent, shows strong climate leadership, enables modern services to Canadians, and is supported by a diverse and high-performing workforce.

Our work to refocus government spending toward top priorities is underway and ongoing. Results of this work have been reported through the Estimates documents, starting with Supplementary Estimates (B) in the fall, which included travel and professional services of $500 million for 2023–24 to be reallocated to priority areas.

The 2024–25 Main Estimates and Departmental Plans, tabled February 29, report on how spending was refocused for each department and agency under this review.

Our Greening Government Strategy maps out our efforts to greening government operations, including requiring new buildings be net zero and use clean electricity by 2025.

I am also committed to addressing workplace harassment, discrimination and violence within the public service.

Just recently, I announced the next steps in our action plan to support Black public servants and further our efforts to create a safe, healthy and inclusive environment.

These are just a few examples of the important work I am leading as President of the Treasury Board.

Background

The Prime Minister’s letter of December 16, 2021, addressed to the previous President of the Treasury Board, contains over 30 commitments for which the President is responsible in whole or in part, spanning areas such as:

The commitments include leading whole-of-government initiatives aimed at delivering improved services and results for Canadians, including:

Budget 2023 included support to advance commitments in key areas of Treasury Board responsibility, such as:

Budget 2023 also announced other priorities, including:

Other policy actions in 2023 related to the President of the Treasury Board’s mandate commitments included:

The 2023 Fall Economic Statement proposed several TBS-led initiatives, including:

5. Government of Canada cyber security events: Government of Canada’s roles and responsibilities and recent events

Issue

The GC’s approach to cyber threats that pose a risk to government infrastructure and services, and the GC’s response to notable cyber incidents this past year

Response

The GC, like every other government and private sector organization in the world, faces ongoing and persistent cyber threats.

The government has systems and tools in place to monitor, detect and investigate potential threats, and takes active measures to address and neutralize them.

Together, TBS, Shared Services Canada, and the Communications Security Establishment work with departments to ensure the government’s cyber security is strong and effective.

The GC Cyber Security Event Management Plan is reviewed and updated regularly to reflect lessons learned from cyber events and cyber simulation exercises.

Following the unauthorized access of BGRS and SIRVA Canada systems, we ensured that current and former affected employees of the GC, the Canadian Armed Forces and the Royal Canadian Mounted Police were informed of the breach and affected employees were provided credit monitoring and the reissuance of valid passports.

On the recent cyber incident on MSH International’s (MSH’s) systems, MSH promptly turned off its services to protect its network and data and retained an external cyber incident response firm to help with service restoration.

MSH and Canada Life are working diligently to investigate the scope of this incident and will share information as it becomes available.

This situation is a stark reminder of the ongoing risks faced by public and private organizations across Canada and abroad. Cyber threat actors are continuously looking for opportunities to exploit information technology vulnerabilities, cause disruptions and steal sensitive data, and every link in a global supply chain can pose a threat to cyber security.

Together with the Office of the Chief Information Officer, cyber security organizations across the government, and the Office of the Privacy Commissioner, we will continue to work hard to prevent, detect and manage these threats.

Background

The government works continuously to enhance cyber security in its services by preventing attacks through implementation of protective security measures, identifying cyber threats and vulnerabilities, and by preparing for and responding to all kinds of cyber incidents to better protect Canada and Canadians.

Cyber security is a shared responsibility across government. Departments and agencies have a responsibility to ensure that cyber security is managed within their organization, including the cyber security of departmental programs and services. TBS, Shared Services Canada, and the Communications Security Establishment are the primary stakeholders with responsibility for ensuring the government’s cyber security posture is effective and able to respond to evolving threats. The Communications Security Establishment, in concert with Public Safety Canada, also provides support on cyber security from a national perspective. TBS:

The Chief Information Officer of Canada:

TBS also maintains the Government of Canada Cyber Security Event Management Plan (GC CSEMP). The GC CSEMP is the whole-of-government incident response plan providing an operational framework that outlines the stakeholders and actions required to ensure that cyber security events are addressed in a consistent, coordinated and timely fashion across the government. The plan is applicable to all departments subject to the Policy on Government Security. To ensure that the GC CSEMP is up to date and effective, the plan is tested regularly, reviewed on an annual basis, and updated if changes are warranted, for example, in light of lessons learned from cyber events. The latest version of GC CSEMP was published in October 2023. The most recent cyber simulation took place in February 2023 as part of the government’s executive-level cyber simulation exercises designed to test how the GC responds to a significant cyber event impacting multiple GC departments.

In the last year, the GC was affected by persistent distributed denial of service activity, including targeting of public-facing GC websites such as the Prime Minister of Canada’s website, which invoked the GC CSEMP. Most recently, escalation under the GC CSEMP was required in response to a cyber incident impacting remote access services of Global Affairs Canada.

Cyber incidents have also impacted services contracted out by the government. In October 2023, relocation support services provided by a third-party supplier (BGRS and SIRVA Canada) were affected by a cyber incident that impacted current and former affected employees of the GC, the Canadian Armed Forces and the Royal Canadian Mounted Police. In February 2024, a fourth-party supplier (MSH) under Canada Life providing Public Service Health Care Plan travel and emergency assistance benefits was affected by a cyber incident. These incidents have warranted a GC-wide response, including invocation of the GC CSEMP Communications Framework to ensure consistent and coordinated messaging from the GC.

6. Responsible use of artificial intelligence

Issue

Departments have been exploring artificial intelligence (AI) technologies to improve services to Canadians. The GC is committed to ensuring the responsible development and use of AI in the federal public service. Media and public interest in AI has grown significantly over the past year, following the release of generative AI tools like Chat GPT to the public.

Response

The government is committed to ensuring the responsible use of AI, including the use of generative AI tools.

AI has been used in workplaces, including in the public service, for decades in some form or another, including as a tool to support analysis, assist with prediction or to support decisions.

With the rise in use of AI tools, TBS has introduced direction, tools and guidance that enable departments to understand and manage the risks of AI to people and organizations.

The Directive on Automated Decision-Making sets out rules for how federal departments and agencies may use automated systems to inform or make service decisions.

In addition, we have developed an Algorithmic Impact Assessment tool to help federal institutions understand and manage the impacts of their automation projects.

For instance, departments using systems that use AI must complete and publish an approved Algorithmic Impact Assessment (AIA) prior to the launch of the system.

In addition, the government recently issued a preliminary guide to support institutions on the responsible use of generative AI tools by assessing possible associated risks.

Through risk mitigation and sharing best practices, these tools will ensure that public servants use AI responsibly, securely and transparently.

Background

The Government of Canada’s approach to responsible artificial intelligence

The federal government prioritizes transparency, accountability and fairness in its AI work. In 2019, TBS issued the Directive on Automated Decision-Making to support this approach. The directive sets out rules for how departments and agencies can use automated systems in service decisions. It applies to automated decision systems that make or support decisions impacting the rights, interests or privileges of clients. Clients covered by the directive include members of the public, businesses and federal employees.

TBS has also created the Algorithmic Impact Assessment tool to help federal institutions understand and manage the risks of their automation projects and to determine applicable requirements under the directive. The directive requires federal institutions seeking to automate an administrative decision to complete and publish the AIA, which supports transparency and fosters public trust. AIAs published on the Open Government Portal provide a growing repository of examples of how AI is used to improve services, including immigration, public health and social benefits.

The directive and AIA were developed in open collaboration with civil society, academia, industry and other governments. TBS published amendments to the directive in April 2023 following the completion of the third review of the instrument. The amendments ensure that automation in decisions affecting federal employees is subject to the directive and strengthen the policy’s requirements to ensure the government continues to meet its commitment to responsible AI in the federal public service.

In 2023, TBS also issued a Guide on the Use of Generative AI to support federal institutions in the responsible use of generative AI. The guide establishes principles to help public servants assess the risks associated with generative AI and use it responsibly during their day-to-day activities. It also offers policy considerations and best practices for federal institutions developing or deploying generative AI tools. The guide will help employees and federal institutions:

Complementing these efforts, the Canadian Centre for Cyber Security also issued guidance that documents the cybersecurity risks associated with generative AI and the best practices to mitigate those risks.

TBS has named a Chief Data Officer for the GC, reflecting the importance of dedicated leadership in responsible data and AI within the federal public service.

7. GC Strategies

Issue

Federal contracts with GC Strategies

Response

The government is committed to ensuring procurements are conducted in a fair, open and transparent manner and in accordance with Treasury Board policies, regulations, guidelines, trade agreements and procedures.

As part of the TBS the Directive on the Management of Procurement, departments are required to strengthen their internal controls for procurement. This includes appointing a senior designated official responsible for establishing, implementing and maintaining a departmental procurement management framework, consisting of processes, systems and controls.

We will continue to provide guidance and best practices to support departments and agencies in strengthening procurement processes.

TBS did not have any involvement in the development of the ArriveCAN app. Deputy heads are responsible for ensuring that decisions on procurement and management of contracts follow the procurement policies and ensure sound fiscal management.

Background

Government-wide

All contracts are issued in a fair open and transparent way in accordance with the Directive on the Management of Procurement, guidelines, regulations and procedures. Through the proactive disclosure of contracts quarterly exercise, TBS discloses all contracts over $10,000 on the Open Government Portal following the Guide to the Proactive Publication of Contracts.

On January 2024, the Procurement Ombudsman released a Procurement Practice Review of ArriveCAN, which looked at 41 procurements managed by the Canada Border Services Agency (CBSA) and PSPC. The report identified issues related to competitive and non-competitive procurement practices, amendments and task authorizations, and proactive publication information.

On February 2024, the Auditor General of Canada tabled a report on ArriveCAN that noted several deficiencies, including:

PSPC and CBSA have committed to addressing the issues through their Management Action Plans in response to the report.

PSPC has also suspended CBSA’s contracts with GC Strategies while it has an ongoing investigation and has suspended GC Strategies from five PSPC-managed supply arrangements.

In an effort to support transparency, TBS asked departments and agencies to provide information related to their contracts with GC Strategies and Coredal since January 1, 2011. Based on information provided by departments, there have been 118 contracts with that supplier, totalling $107.7 million.

Specific to the Treasury Board of Canada Secretariat

Since 2017, TBS entered into 11 contracts with GC Strategies totalling $11.3 million. The total spent since 2017 amounts to $9 million.

There was a single contract under the responsibility of the Canadian Digital Service, which at the time was with TBS, and GC Strategies for the COVID Alert application valued at $402,412.50. The contract was awarded by PSPC on behalf of TBS.

This same contract was amended to increase its value by $965,790.00, for a maximum authorized amount of $1,368,202.50. Of the maximum amount available on the contract, a total of $309,511.00 ($349,747.43 including taxes) was spent.

Currently, TBS has no active contracts with GC Strategies.

All TBS contracts are issued in a fair way in accordance with the Directive on the Management of Procurement, guidelines, regulations and procedures. Through the proactive disclosure of contracts quarterly exercise, TBS discloses all contracts over $10,000 on the Open Government Portal following the Guide to the Proactive Publication of Contracts.

Per the requirements of the Directive on the Management of Procurement, TBS has a Procurement Management Framework consisting of our processes, systems and controls.

TBS has a fully centralized procurement function of procurement specialists that conduct procurement on behalf of the department, ensuring integrity in the procurement process and based on sound procurement principles, fairness, openness and transparency.

TBS did not have any involvement in the development of the ArriveCAN app.

8. COVID Alert application

Issue

What was the involvement of GC Strategies in the development of the COVID Alert application?

Response

The health and security of Canadians is a priority for the GC.

The COVID Alert application was one of the public health tools available to help limit the spread of COVID-19 during the pandemic.

The application was developed by the government in 45 days and was downloaded more than 6.9 million times and onboarded nine provinces and territories.

The COVID Alert application was transferred from TBS to Health Canada at the end of fiscal year 2020–21 and was decommissioned on June 17, 2022.

Engagement with the provinces and territories helped the federal government decide on the best timing to decommission COVID Alert.

Background

TBS’s Canadian Digital Service and Health Canada built Canada’s national COVID-19 exposure notification system. The application was built in 45 days.

It included three technical components:

From June 2020 through June 2022, the Canadian Digital Service spent $9.1 million to deliver, continuously improve and support COVID Alert:

As the team responsible for developing and maintaining the application was small, there was a need for specialized resources. For these reasons, it was decided that a sole-source contract would be the best way to proceed quickly.

Subsequently, resources from other sectors were brought in to support the responsible sector, which also had the effect of reducing costs and was one of the reasons why the amount spent on the awarded contract is much less than the total contract.

Anticipating a need for surge support (that is, additional skilled resources to support the public servants working on the project), the Canadian Digital Service issued a contract to GC Strategies on December 2, 2020, for a total of $1.37 million over three fiscal years (concluding March 31, 2023).

The Canadian Digital Service delivered the COVID Alert service using primarily internal talent, and ultimately paid GC Strategies $349,747.43 (including tax) for surge support. This included support from senior developers, researchers and service designers over a six-month period.

The contract with GC Strategies was issued under the contracting authority of PSPC and ended on March 31, 2023, with no further call-ups.

A second contract in the amount of $587,000 was issued to 49 Solutions to provide 24/7 technical support and quality assurance for the COVID Alert application. A total amount of $118,811.73 (including taxes) was spent on this contract.

The initial contract with 49 Solutions was awarded on December 7, 2020, with an end date of March 31, 2021. The end date of the contract was extended to March 31, 2022, through an amendment.

The COVID Alert application was transferred from TBS to Health Canada at the end of fiscal year 2020–21 and was decommissioned on June 17, 2022.

9. Supplementary Estimates (C) 2023–24: highlights

Overview

TBS spending

TBS is seeking $9.0 million for the departmental operating budget (Vote 1, Program Expenditures), mainly:

TBS Vote 1 also has $3.2 million in net transfers from or to other government departments for various initiatives.

Additionally, $179.7 million is sought for public service insurance related to cost increases for group insurance plans and legislated employer obligations.

National Defence

National Defence is seeking $2.2 billion, including:

Treasury Board central votes: compensation and benefits

TBS is seeking $1.4 billion to distribute to departments:

Students

Employment and Social Development Canada is seeking $215.5 million for the annual write-off of unrecoverable debts owed to the Crown for Canada Student Loans and Canada Apprentice Loans.

Immigration and housing

Immigration, Refugees and Citizenship Canada is requesting:

Indigenous services

Indigenous Services Canada is seeking $2 billion, including:

Increases to professional services

Supplementary Estimates (C), 2023–24 includes $857 million in planned spending on professional and special services, including:

Statutory and non-budgetary included in Estimates for information

Supplementary Estimates (C), 2023–24 also presents for information purposes:

Statutory budgetary amountsFootnote 2 include:

Statutory non-budgetaryFootnote 3 amounts include:

10. Supplementary Estimates (C) 2023–24: key issues

Executive compensation and performance pay

Executives play key roles and carry significant accountability in leading the operations of government.

Their performance and associated performance pay is assessed annually by deputy heads.

In 2022–23, 8,361 executives received approximately $144 million in performance pay and $15.8 million in bonuses.

Executive salary increases between 2010 and 2023 were five percentage points lower than CPI inflation over the same period.

Increases for executives are typically in line with those awarded to non-executives in the rest of the public service.

Canada Life

Since implementing an action plan in November 2023, Canada Life’s wait times have significantly improved. As of March 8, 99% of calls were answered within two minutes. The average processing time for digital claims was one day and five days for paper.

Some members seeking emergency travel and comprehensive coverage internationally continue to face delays with claims or long wait times to reach a call centre agent.

The provider, MSH International, is implementing improvements like hiring more call centre and claims agents, prioritizing urgent needs cases, and enhancing its online portal.

MSH recently experienced a cyber incident. As of February 27, MSH is reporting their claims-processing systems and the member portal are fully restored. Employees have been notified.

Size of the public service

As of March 31, 2023, the size of the federal public service was 357,247 employees.

The size of the federal public service is 0.90% of the Canadian population. This is roughly comparable to the level it was in 2010 (0.83%).

Personnel costs as a proportion of total expenditures have generally stayed the same.

The size of the public service fluctuates due to government priorities and program requirements.

We expect to see full-time equivalent reductions as a result of the Refocusing Government Spending initiative.

Whistleblower protections

The Public Servants Disclosure Protection Act provides a confidential process to disclose wrongdoing, including identity protection for whistleblowers.

The Act allows public servants to disclose potential wrongdoing within their organizations or to the Office of the Public Sector Integrity Commissioner of Canada. Disclosures made to media are only protected in exceptional cases (serious breaches of federal law or substantial danger to the health and safety of persons or the environment).

Bill C-290 proposes many improvements to the Act, but certain amendments raise legal and operational challenges that may decrease protections for those in need.

As part of Budget 2022, an external task force is reviewing the Act. Their recommendations are expected in spring 2024. As part of their consultations, an opinion survey was posted on Canada.ca (ending April 2, 2024).

Federal procurement and professional services

In 2022–23, the government spent $14.3 billion on external professional services. This includes a broad range of services, including construction, health care and engineering.

Less than 6% of this amount ($838.3 million) was spent on management consulting.

A new manager’s guide is helping managers determine when to contract professional services versus when to use internal resources. As well, the recently launched Directive on Digital Talent prompts hiring managers to assess internal capacity before looking at outside resources.

We are continuously strengthening procurement approaches and providing training and guidance to departments.

Contract disclosure now includes more details on professional services contracts, and TBS has improved how contracts are displayed in the Open Government portal. Information is now published as a single “total value” for the contract and its amendments, where the data permits. We will continue to make adjustments to enhance the user experience on the portal.

Access to information

The first legislative review of the access to information process in 30 years was completed in December 2022 based on input from Canadians, Indigenous peoples, experts and key stakeholders.

We are now developing an action plan to create a stronger, more robust and reliable access to information system for all Canadians and Indigenous peoples.

This plan will focus on tangible performance improvements, building on existing efforts to increase capacity, improve technology and provide ongoing advice to government organizations.

Over the last year, we:

ArriveCAN

The ArriveCAN app was built on an emergency basis under exceptional circumstances; however, the details that have come to light in recent months are concerning. 

TBS did not have any direct involvement in the development of the ArriveCAN app. Deputy heads are responsible for contracting activities under their delegation.

The Auditor General found that TBS has appropriate contracting rules in place but that the rules weren’t followed.

TBS will support the CBSA with its Management Action Plan and will continue to enhance its own policies and practices where necessary.

Diversity and inclusion

On February 21, we announced the first initiatives in the Action Plan for Black Public Servants.

Health Canada is receiving funding for Black-centric enhancements to the Employee Assistance Program provided to over 90 federal departments and agencies. This includes recruitment of 19 additional Black counsellors this year alone, for a total of 60 Black counsellors, to provide culturally competent and trauma-informed mental health supports to public servants and their immediate family members.

Following a successful pilot, the Canada School of Public Service is receiving funding to launch an executive leadership program for Black executives in groups EX-01, EX-02 and EX-03 to support career advancement.

As well, the Public Service Commission of Canada is receiving funding to provide individualized assessment, counselling and coaching services to Black public servants.

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2024-07-18