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Standing Committee Government Operations and Estimates: December 12, 2024

2024 to 2025 Supplementary Estimates (B) for Public Services and Procurement Canada, the National Capital Commission and Shared Services Canada

Date: December 12, 2024

Location : In-person

On this page

Public Services and Procurement Canada and portfolio organizations

In this section

General

In this section

Opening statement

By The Honourable Jean-Yves Duclos

Minister of Public Services and Procurement

Standing Committee on Government Operations and Estimates

Supplementary Estimates (B)

December 12, 2024

(Word count: 840)

Opening

Mr. Chair, thank you for inviting me here to discuss Supplementary Estimates (B) for the fiscal year 2024 to 2025.

Let me begin by acknowledging that we are gathered on the unceded territory of the Algonquin Anishinaabeg peoples.

Joining me today from Public Services and Procurement Canada are:

From Shared Services Canada, we have:

Mr. Chair, in the Supplementary Estimates (B), we are seeking additional funding of 841.7 million dollars for Public Services and Procurement Canada and 52 million dollars for Shared Services Canada.

Before I get into specifics, please allow me to provide you with an update on some of my top priorities and the progress we’ve made since I last appeared before this committee.

Priorities
Housing

The Government’s plan to tackle the housing crisis by building 4 million homes is the most ambitious housing plan in Canadian history.

PSPC is doing its part through its Public Lands for Homes Plan, and over the summer we launched the Canada Public Land Bank, which now includes 83 federal properties that can support housing. Canadians can go online to view details about these available properties.

Dental Care

Meanwhile, just yesterday we marked the one-year anniversary of the launch of our plan to help make the cost of dental care more affordable.

To date, more than 1.2 million Canadians have received affordable dental care through the Canadian Dental Care Plan, with more than 3 million Canadians approved for coverage.

Procurement improvements

In addition, our Government has made a number of improvements to safeguard the integrity of the federal procurement system. This is, in part due to the work of this committee.

These include stepping up our efforts to detect fraud and address wrongdoing on the part of both suppliers and within the public service. And my officials at PSPC continue to work with other departments to improve oversight measures, particularly when it comes to the procurement of professional services.

PSPC is also phasing in a Vendor Performance Management Program to further strengthen regular monitoring and measurement of cost, quality, schedule and management.

The first phase started this past November and we have begun adding VPM clauses to select professional services procurements, with more to follow in the coming months.

Vendors will be assessed using a standard scorecard. Once the program is fully implemented, these scores will form part of future bid evaluations.

Defence Procurement Review

Mr. Chair, our Government is also committed to improving Canada's defence procurement system, and PSPC is working with its partners to do just that.

Our goal is to compress timelines for major defence acquisitions without sacrificing due diligence, and we want to improve how we invest in, acquire and integrate Canadian innovations into defence capabilities.

In the meantime, we continue to advance key defence procurements on a number of fronts, as efficiently as possible, and we will have more to say on initiatives to reform defence procurement in the coming months.

Public Services and Procurement Canada Supplementary Estimates B

Mr. Chair, turning back to the supplementary estimates, for PSPC, the bulk of the funds we are requesting—619.9 million dollars—will support the implementation of a number of critical infrastructure projects.

These expenditures include work that is well underway to rehabilitate Centre Block, redevelop Block 2 of the parliamentary precinct, and modernize the District Energy System in the National Capital Region.

Mr. Chair, the Department is also seeking access to 102.3 million dollars to advance a new HR and pay system. This funding will allow the department to continue its due diligence as it develops and tests the new solution.

Other funding requested by PSPC includes supports for the preplanning of a range of other capital projects, as well as funding for the Translation Bureau to provide quality linguistic services to Parliament. At the same time, the Bureau continues to explore the potential benefits of using more automation and artificial intelligence tools to increase productivity.

Shared Services Canada Supplementary Estimates B

Let me now turn to Supplementary Estimates B for Shared Services Canada.

As the IT backbone of the Government of Canada, SSC builds the digital foundation upon which the Government delivers the programs and services that Canadians rely on and expect. SSC continues to modernize and consolidate the core IT systems of the government, seeing higher reliability and lower operating and maintenance costs as we replace department-specific legacy systems with modern consolidated enterprise solutions.

Mr. Chair, SSC’s request, includes new funding of 41.1 million dollars to support core IT services for new full-time equivalent employees. This includes mobile device service plans, standard software, email, internet, audioconferencing, and so on.

An additional 11.5 million dollars is being requested for the planning and delivery of telecommunications and IT infrastructure for the 2025 G7 Summit in Canada.

Closing

Mr. Chair, this work represents only some of the important initiatives happening under my diverse portfolio.

I am pleased to take your questions.

Public Services and Procurement Canada 2024 to 2025 Supplementary Estimates (B) Overview

Public Services and Procurement Canada (PSPC) is seeking a net increase of $841.7 million (may not balance to breakdown due to rounding) through Supplementary Estimates (B), increasing its available funding from $4,835 million to $5,677 million net of revenues.

Items sought in 2024 to 2025 Supplementary Estimates (B)
Item Amount (in millions)
Voted Appropriations
Funding for capital investments $619.9
Funding for the Next Generation Human Resources and Pay initiative (Budget 2024) (horizontal item) $102.3
Funding for preliminary activities to support capital projects (Budget 2024) $64.0
Funding for card acceptance services and postage fees $24.1
Funding for the Translation Bureau to provide linguistic services to Parliament (Budget 2024) $9.6
Funding for the Presidency of the 2025 G7 Summit in Canada (Budget 2024) (horizontal item) $7.7
Funding for preliminary activities to support capital projects $7.0
Funding for the Federal Contaminated Sites Action Plan $6.6
Statutory Appropriations
Employee Benefit Plans $9.2
Transfers
From Other Organizations
From the Treasury Board Secretariat to various organizations to support projects which will reduce greenhouse gas emissions in federal government operations $0.6
To Other Organizations
From various organizations to the Royal Canadian Mounted Police for law enforcement record checks ($0.3)
From various organizations to the Department of Foreign Affairs, Trade and Development to support departmental staff located at missions abroad ($0.4)
From the Department of Fisheries and Oceans, Department of Natural Resources and the Department of Public Works and Government Services to the Department of Agriculture and Agri-Food, Department of Indigenous Services, Department of the Environment, National Research Council of Canada and VIA Rail Canada Inc. for the Federal Contaminated Sites Action Plan ($8.5)
Total $841.7

1 May not balance to breakdown due to rounding.

Voted appropriations: $841.1 million increase
Funding for capital investments

$619,865,441

Purpose of funding

Budget 2019 approved capital funding over a 20-year period via the Capital Investment Fund (CIF), to be managed through an accrual budgeting framework. The CIF is the source of funds for PSPC’s acquisition, construction, development or betterment of tangible capital assets. These expenditures are guided by the Investment Plan (a detailed five-year plan for investments derived from the PSPC Asset Long-Term Strategy and Plans).

The request for funding of $619.9 million is to align PSPC’s authorities with its planned expenditures per the Investment Plan, with funding (from Budget 2019) derived from 2 mechanisms:

This capital funding will enable the implementation of critical infrastructure projects as per the approved Investment Plan. Notable in-flight projects forming part of the Investment Plan are the:

Funding for the Next Generation Human Resources and Pay initiative (Budget 2024) (horizontal item)

$102,298,429

Purpose of funding

The Government of Canada (GC) is transitioning to a more modern and sustainable Human Resource (HR) and pay Software as a Service (SaaS) capability to replace Phoenix. As part of its mandate, the NextGen HR and Pay Initiative is assessing the feasibility of adopting this new integrated HR and pay solution.

In February 2024, Shared Services Canada (SSC) issued the Final Findings Report which detailed the results of testing and concluded that the Dayforce Human Capital Management (HCM) solution is a viable option to replace the current pay system (Phoenix) and the full suite of core HR systems currently in use. However, there remain multiple complex technical gaps, as well as implementation considerations, to be validated before moving forward with the adoption of Dayforce HCM across the GC.

The deliverables of the HCM Feasibility Analysis Project during 2024 to 2025 will be completed jointly by GC employees and the contractor, Dayforce. HCM Pay Administration, with partner departments and Dayforce, will dedicate resources to test the solution to generate data and evidence to inform a final implementation and investment decision of Dayforce HCM across the GC.

Funding for preliminary activities to support capital projects (Budget 2024)

$63,967,221

Purpose of funding

Budget 2024 provided PSPC Vote 1 (operating) funding to successfully deliver on PSPC’s Asset Long-Term Strategy and Plans. Vote 1 non-capital expenditures such as preplanning activities are critical to ensure the efficient use of resources and the attainment of project timelines. Examples of preplanning activities include feasibility studies, options analysis, investigations (for example, soil condition), consulting support, pre-tender contracting work, statement of requirements and pre-design activities.

The funding will be used to deliver non-capitalizable and preplanning activities for various projects such as:

Funding for card acceptance services and postage fees

$24,095,000

Purpose of funding

The Receiver General pays for debit and credit card acceptance fees incurred by federal departments and agencies as a result of the collection of revenues via debit and credit cards (e.g. revenues collected for passports, citizenship services, entrance and visitor services for national parks, etc.).

In addition, the Receiver General pays for the postage to mail cheques to Canadians.

The total costs of these services are out of PSPC’s control due to annual fluctuations in the price and volume of transactions. When the total projected costs exceed available funding, additional funds are sought. Any unused funds are returned to the Consolidated Revenue Fund (CRF).

Funding for the Translation Bureau to provide linguistic services to Parliament (Budget 2024)

$9,607,583

Purpose of funding

The Translation Bureau (TB) offers parliamentary translation and interpretation services to the Parliament of Canada in official languages, Indigenous languages, foreign langages and sign languages.

Parliamentary language services are funded through a special purpose allotment (SPA). The hybrid Parliament and the increase in committee meetings have led to financial pressures and additional demands on interpretation and translation services funded by the SPA of the TB. This impacts the number of available resources and could affect the TB's ability to provide timely translation and interpretation services to parliamentarians and Canadians in English, French, Indigenous languages, foreign languages, and sign languages.

The permanent adoption of a hybrid Parliament in June 2023, combined with the current shortage of interpreters, has a direct and significant impact on the TB. Current funding is inadequate to meet rising costs and to stabilize and maintain existing volume service to meet the needs of Parliament and Canadians.

Funding for the Presidency of the 2025 G7 Summit in Canada (Budget 2024) (horizontal item)

$7,740,996

Purpose of funding

In 2025, Canada will host (also known as the presidency) the G7 Summit. Canada will welcome world leaders for a Summit as well as host a series of ministerial meetings and other supporting events being led by Global Affairs Canada (GAC) in collaboration with 12 departments and agencies.

Given the cyclical requirement of hosting G7 presidencies once every 7 years, GAC and its partners do not maintain a standing team of full-time equivalent (FTEs) or operational resources to support this work. Currently, GAC’s and its federal partners’ financial situation make it difficult to cash manage the full scope of the preliminary phase of this priority. Based on lessons learned from the 2018 G7 presidency, advance funding was requested to establish a dedicated project planning and costing team earlier to improve accuracy of the costing of all activities related to the G7 presidency, and to establish a dedicated policy team to support the development of robust policy outcomes and deliverables. As a result, GAC and 3 of its federal partners: the Royal Canadian Mounted Police (RCMP), PSPC, and SSC sought access to an initial tranche of seed funding to initiate planning to build capacity and to commence operational preparations and develop a strong agenda for Canada’s G7 presidency.

Funding for preliminary activities to support capital projects

$7,015,521

Purpose of funding

The Long Term Vision and Plan (LTVP) is a multi-decade strategy to restore and modernize Canada’s Parliament buildings, address health and safety risks, and preserve our built heritage for the future. [Redacted].

Funding for the Federal Contaminated Sites Action Plan

$6,554,145

Purpose of funding

The Federal Contaminated Sites Action Plan (FCSAP) was established in 2005 as a 15-year, $4.54 billion program and was renewed for another 15 years (2020 to 2035) in Budget 2019 ($1.16 billion for the first five years).

It aims to remediate known federal contaminated sites to reduce environmental and human health risks, as well as associated liabilities. It focuses on the highest priority sites. Consequently, FCSAP assists federal departments, agencies, and consolidated Crown corporations that are responsible for federal contaminated sites to undertake site assessment and remediation activities.

Re-profiled funds are required in 2024 to 2025 to optimize the best use of public money across the Government of Canada by pursuing, as intended, the remediation of critical and highest priority sites and reducing environmental and human health risks, as well as associated liabilities.

The reprofile in the amount of $6.6 million from 2023 to 2024 to 2024 to 2025 is required as a result of a 2023 to 2024 year-end surplus generated by the following:

The re-profiled funds will be transferred to Agriculture and Agri-Food Canada for their FCSAP remediation projects.

Statutory appropriations: $9.2 million Increase
Contribution to Employee Benefit Plans

$9,150,919

The employee benefit plans (EBP) includes cost to the government for the employer’s matching contributions and payments to the Public Service Superannuation Plan, the Canada and Quebec Pension plans, Death Benefits, and the Employment Insurance accounts.

EBP costs applicable on salary related to funding for the Next Generation Human Resources and Pay initiative, funding for preliminary activities to support capital projects (Budget 2024), and funding for the Presidency of the 2025 G7 Summit in Canada.

Net transfers between government departments: ($8.6 million) Net Decrease
From the Treasury Board Secretariat to various organizations to support projects which will reduce greenhouse gas emissions in federal government operations

Transfer of $640,000

Purpose of funding

The Greening Government Fund was established to explore and share approaches and innovative ways to reduce greenhouse gas (GHG) emissions in government operations. The transfer from the Treasury Board Secretariat will cover 7 projects:

This funding will be used for the projects below:

From various organizations to the Royal Canadian Mounted Police for law enforcement record checks

Transfer of ($281,700)

Purpose of funding

The Industrial Security Sector (ISS) under PSPC—ISS is authorized to perform security assessments to prevent the illegal possession, inspection or transfer of controlled goods. PSPC—ISS engages the RCMP to conduct a Law Enforcement Record Check (LERC) as part of the security assessment of Canadian industry individuals who are seeking registration under the Controlled Goods Program (CGP) for the purpose of accessing controlled goods.

A Law Enforcement Record Check consists of domestic criminal record checks based on the name and date of birth of the applicant, their current address, and addresses provided for the previous five years. When deemed necessary by the RCMP, a LERC may also include additional checks, including but not limited to, open sources, local police of the jurisdiction or other partners of the RCMP related to the applicant and associations.

From various organizations to the Department of Foreign Affairs, Trade and Development to support departmental staff located at missions abroad

Transfer of ($441,439)

Purpose of funding

Missions abroad personnel include Canada Based Staff and Locally Engaged Staff, who support the implementation of Global Affairs Canada’s mandate of foreign policy, trade, international development and consular services.

Canada Based Staff and Locally Engaged Staff are responsible for a wide range of tasks, from administrative and technical support to assisting with public affairs, trade and development initiatives. They play a key role in representing Canada’s interests abroad by helping Canadian diplomats navigate the complexities of the local environment, and ensure that Canadians are supported in foreign countries.

The Department of Foreign Affairs, Trade and Development incurs costs and recovers them from client departments with international programs.

From the Department of Fisheries and Oceans, Department of Natural Resources and the Department of Public Works and Government Services to the Department of Agriculture and Agri-Food, Department of Indigenous Services, Department of the Environment, National Research Council of Canada and VIA Rail Canada Inc. for the Federal Contaminated Sites Action Plan

Transfer of ($8,508,646)

Purpose of funding

The Federal Contaminated Sites Action Plan (FCSAP) was established in 2005 as a 15-year, $4.54 billion program and was renewed for another 15 years (2020 to 2035) in Budget 2019 ($1.16 billion for the first 5 years).

It aims to remediate known federal contaminated sites to reduce environmental and human health risks, as well as associated liabilities. It focuses on the highest priority sites. Consequently, FCSAP assists federal departments, agencies, and consolidated Crown corporations that are responsible for federal contaminated sites to undertake site assessment and remediation activities.

PSPC had a surplus of $6.6 million in FCSAP remediation funding in 2023 to 2024 which was transferred into 2024 to 2025 through a reprofile. Also, in spring 2024, PSPC identified a surplus of $2.0 million in its FCSAP reference levels for 2024 to 2025. The FCSAP Secretariat allows a department to transfer unused funding for FCSAP remediation activities to another department, as long as it is being used for the same purposes.

Therefore, PSPC’s funding surplus will be transferred to the following departments to address their identified shortfalls in FCSAP remediation funding:

National Capital Commission 2024 to 2025 Supplementary Estimates (B) Overview

The National Capital Commission (NCC) is seeking a net increase of $43.6 million (may not balance to breakdown due to rounding) through Supplementary Estimates (B), increasing its available funding from Parliament from $94.8 million to $138.4 million.

Items sought in 2024 to 2025 Supplementary Estimates (B)
Item Amount (in millions)
Voted Appropriations
Funding for capital investments $619.9
Funding for the Next Generation Human Resources and Pay initiative (Budget 2024) (horizontal item) $102.3
Funding for preliminary activities to support capital projects (Budget 2024) $64.0
Funding for card acceptance services and postage fees $24.1
Funding for the Translation Bureau to provide linguistic services to Parliament (Budget 2024) $9.6
Funding for the Presidency of the 2025 G7 Summit in Canada (Budget 2024) (horizontal item) $7.7
Funding for preliminary activities to support capital projects $7.0
Funding for the Federal Contaminated Sites Action Plan $6.6
Statutory Appropriations
Employee Benefit Plans $9.2
Transfers
From Other Organizations
From the Treasury Board Secretariat to various organizations to support projects which will reduce greenhouse gas emissions in federal government operations $0.6
To Other Organizations
From various organizations to the Royal Canadian Mounted Police for law enforcement record checks ($0.3)
From various organizations to the Department of Foreign Affairs, Trade and Development to support departmental staff located at missions abroad ($0.4)
From the Department of Fisheries and Oceans, Department of Natural Resources and the Department of Public Works and Government Services to the Department of Agriculture and Agri-Food, Department of Indigenous Services, Department of the Environment, National Research Council of Canada and VIA Rail Canada Inc. for the Federal Contaminated Sites Action Plan ($8.5)
Total $841.7

1 May not balance to breakdown due to rounding.

Voted Appropriations: $42.4 million Increase
Funding to protect heritage assets and maintain capital assets

$41,016,000

Purpose of funding

Through the Fall Economic Statement in 2022, additional funding was earmarked for the NCC for the preservation, maintenance and rehabilitation of NCC assets of heritage and cultural significance. The NCC has prioritized investments to target projects involving heritage and cultural assets that will have a marked impact on the experiences of present and future generations of residents and visitors to the NCR, especially in the core area of the Capital.

The request for funding of $41.0 million will support capital and operating expenditures with:

The funding will support the rehabilitation of:

Funding to establish an interprovincial transit project office in the National Capital Region

$1,429,000

Purpose of funding

Since Budget 2021, the NCC has established an interprovincial transit project office and continues to pursue its work in support of the advancement of interprovincial transit projects.

The funding of $1.4 million (Vote 1) will support operating expenditures. The transit project office will use this funding to continue to coordinate with federal, provincial, and municipal partners to advance interprovincial transit studies, such as the interprovincial transit loop study, and planning and design guidelines for Confederation Boulevard and Portage Bridge. The NCC will advance work with all levels of government and transportation partners to support a government decision on funding for the planning of the STO TramGO project.

Net transfers between government departments: $1.2 million Net Increase
Transfer from Natural Resources Canada to the National Capital Commission for projects under the 2 Billion Trees Program

Transfer of $1,200,000

Purpose of funding

To support the Government of Canada’s 2 billion trees commitment, the NCC will receive a $1.2 million transfer from Natural Resources Canada to support the planting of trees in the National Capital Region (NCR) at sites which are owned and operated by the NCC.

This is part of an 8-year agreement between Natural Resources Canada and the NCC to support tree planting, with the total cost of tree planting valued at $24.9 million, cost shared 50-50 between Natural Resources Canada and the NCC, contributing $12.4 million each over the course of the 8-year agreement.

The NCC will leverage this funding to plant an additional 88,500 trees by 2031.

Tabling of the Departmental Results Report

Issue

On November xx, 2024, the 2023 to 2024 Departmental Results Report for PSPC was tabled in the House of Commons by the President of the Treasury Board.

Key facts
Key messages
Background

PSPC’s Departmental Results Report is prepared annually to report on how the department has fulfilled the expectations outlined in the corresponding Departmental Plan. The report is tabled every fall by the President of the Treasury Board. Parliamentary committees have an opportunity to review and question departmental spending and achieved results.

Among the results PSPC is working to improve are the following:

Original contracts of basic (level 1) or standard (level 2) complexity awarded within established timelines

Many transformation initiatives are currently underway to improve PSPC’s procurement processes, including the integration of new, additional socio-economic considerations and requirements. To support the transition, the department implemented a new governance model and updated key guidance material for its procurement workforce.

Contracts awarded to small and medium size businesses and suppliers

PSPC is modernizing procurement practices to streamline and make procurement easier, faster, and more accessible for suppliers as well as for small and medium size businesses. Procurement Assistance Canada also continues to focus its engagements with small and medium suppliers to increase their participation in the procurement processes.

5% commitment for Indigenous procurement

Through its role as common service provider, PSPC continues to support Indigenous Services Canada, Treasury Board of Canada Secretariat (TBS) and other departments in meeting the target of awarding 5% of the total value of contracts to Indigenous businesses by March 31,2025. Internally, the department continues to deliver outreach and educational services to procurement officers for the management of procurement with Indigenous businesses. In addition, PSPC is working to develop an integrated solution to collect subcontracting data and expects future results to be higher.

Number of employees facing potential pay inaccuracies at the Pay Centre

The Pay Centre is prioritizing the oldest and most impactful cases in the queue with dedicated compensation advisors to address backlog. Through investments in artificial intelligence, PSPC is exploring how it can improve efficiency through accurate and speedy analysis of data, thereby supporting enhanced productivity and precision in pay processing.

Costs per square metre of office space

In accordance with Budget 2024, PSPC is right-sizing its office portfolio, which will generate operating savings and free up funds for investment elsewhere. As part of this exercise, the department is also leveraging surplus office assets for housing and other community needs. As part of this right-sizing exercise, PSPC reviewed the space requirements of client departments and agencies, ensuring the availability of secure, accessible, and well-equipped workspaces across the country in support of hybrid work. The acceleration of critical repair work to ensure buildings remain safe for continued, uninterrupted operations contributed to higher costs per square meter of office space.

2024 to 2025 Supplementary Estimates B Infrastructure Projects: Additional background information on selected projects

Funding for capital investments ($619.9 million in Supplementary Estimates B)

This capital funding will enable the implementation of critical infrastructure projects as per the approved Investment Plan. In addition to the Long-term Vision and Plan for the Parliamentary Precinct (Centre Block and Block 2), other notable in-flight projects include:

Energy Services Modernization Project for the District Energy System in the National Capital Region
Place du Portage III Asset and Workplace Renewal project
West Memorial Building Rehabilitation
Terraces de la Chaudière

Refocusing government spending

Explaining the ways PSPC is meeting its commitment to refocusing government spending.

Key facts
Key messages

If pressed on professional services:

If pressed on reduction of full time equivalents at PSPC:

Background

In Budget 2023, the government committed to reducing spending by $15.4 billion over the next 5 years, starting in 2023 to 2024, and by $4.5 billion annually after that.

As part of meeting this commitment, PSPC is planning the following spending reductions:

PSPC pursued a principles based approach to meet its commitment, including:

PSPC’s professional services reduction amount is a combination of Capital and Operating funding reductions. PSPC completed a prioritization exercise in terms of professional services that include architecture, engineering and construction services focusing on health and safety initiatives and departmental priorities and is able to provide savings from its Capital funding envelop under the program “Property and Infrastructure”. PSPC is also able to reduce spending in professional services from its Operating funding.

As part of Budget 2023, SSC is planning the following spending reductions:

SSC will achieve these reductions primarily through:

Procurement and integrity

In this section

Changes in procurement services in response to the Procurement Ombud’s and Auditor General’s reports

Issue

On November 2, 2022, a motion was passed by the House of Commons that called on the Office of the Auditor General of Canada to conduct a performance audit on ArriveCAN, including on contracts and subcontracts, as well as payments under those contracts.

Reports resulting from a review carried out by the Office of the Procurement Ombud (OPO) and an audit conducted by the Office of the Auditor General (OAG) were tabled on January 29, 2024, and February 12, 2024, respectively. The reports highlight serious concerns regarding project management and offer recommendations pertaining to procurement, specifically with regard to professional services.

Key facts
Key messages

If pressed on immediate actions that PSPC is taking to strengthen existing controls and oversight for professional services contracting:

If pressed on the actions being taken in response to the AG report:

If pressed on the actions being taken in response to the Procurement Ombud’s review:

If pressed on Indigenous contracting:

Background

Under its authorities, PSPC awarded contracts in support of ArriveCAN and was responsible for providing procurement guidance to the client department. The Canada Border Services Agency (CBSA) was responsible for developing and managing the ArriveCAN tool based on the Public Health Agency of Canada’s health requirements enforced by the Quarantine Act.

A total of 46 different contracts were used in support of ArriveCAN. Of these 46 contracts, 31 were awarded by PSPC under its authorities:

On November 14, 2022, the House of Commons Standing Committee on Government Operations and Estimates (OGGO) adopted a motion recommending that the Procurement Ombud conduct a review of contracts awarded in relation to the ArriveCAN application.

On January 13, 2023, the Office of the Procurement Ombud determined that there were reasonable grounds to launch a review of procurement activities associated with the creation, implementation and maintenance of ArriveCAN.

In light of the findings of the review and audit, PSPC took immediate action to strengthen existing controls around the administration of professional services contracts. On November 28, 2023, other government departments and agencies were informed of new measures, introducing a common set of principles and mandatory procedures that clients must abide by to use PSPC’s professional services contracting instruments.

These changes closely align with the recommendations in the OAG and OPO reports and are echoed in the resultant management action plans to which PSPC has committed.

Public Services and Procurement Canada contracts with GC Strategies

Issue

On October 21, 2024, the Auditor General wrote to the Speaker of the House of Commons to inform the House that her office will conduct a performance audit on all payments and government contracts awarded to GC Strategies

Key facts
Key messages

If pressed on how GC Strategies was qualified under Task-Based Informatics Professional Services (TBIPS):

If pressed on subcontracting:

Background

PSPC has awarded 7 contracts to GC Strategies for a total of $59,904,530. PSPC has awarded 6 contracts as a common service provider and 1 contract as a department.

The Auditor General is in the process of gathering information and determining the scope of the audit. She has noted in her letter to the House Speaker that she will keep the House of Commons informed on the timing of the audit once the scope has been determined.

Within the broader federal procurement environment, PSPC undertook an in-depth review of the security verifications of the existing contracts with the supplier, and took appropriate action following the results of its assessment, cancelling the five ongoing supply arrangements with the company on February 14, 2024, as they no longer met the requirements of these methods of supply, and terminating its remaining contract with the supplier on March 15, 2024.

Fraudulent billing

Issue

The Government of Canada’s is pursuing its efforts to investigate and deter fraudulent billing by sub-contractors for suppliers on professional services contracts. Since March, PSPC has disclosed a total of seven cases that have been referred to the RCMP (i.e., three cases in March, one older case in July when charges were laid, and three cases on November 6).

Key facts
Key messages

If pressed on more details about the cases referred to the RCMP:

If pressed on the providing the names of the three individuals:

If pressed on the consequences for the individuals investigated by PSPC:

If pressed on the consequences for the prime contractors:

Background

Since March 2024 PSPC disclosed in seven cases of fraudulent billing by professional services subcontractors (i.e. individuals who were subcontracted) who were employed by prime contractors that held multiple contracts with a number of federal departments and agencies:

These seven cases have been referred to the RCMP for further investigation.

On July 9, 2024, the RCMP charged one of the professional services subcontractors referred to them by the department for fraudulently overbilling the Government of Canada. This case relates to an investigation launched by PSPC, in the summer of 2021, into a consultant who undertook contract work with eight separate departments and Crown corporations. Evidence indicated that the consultant had submitted fraudulent timesheets that resulted in overbilling by an estimated $250,000 between January 1, 2020 and June 30, 2021. PSPC referred the case to the RCMP for a possible criminal investigation. As a result of the RCMP investigation, Clara Elaine Visser has been charged with fraud over $5,000 contrary to Section 380(1) of the Criminal Code.

PSPC has a framework in place to prevent, detect and respond to wrongdoing in order to safeguard the integrity of the federal procurement system. This approach includes the use of a variety of tools to actively detect fraudulent activity, and respond to alleged misconduct that the Government of Canada is being defrauded in either a specific contract or on a broader scale.

PSPC employs active measures to raise awareness among procurement officers on how to identify potential instances as well as the use of data analytics and tips from the public to identify potential instances of fraud and wrongdoing. In order to respond to alleged instances, the department has an investigatory capacity to examine allegations that the Government of Canada is being or has been defrauded within its procurements.

The identified cases demonstrate that the departmental approach and techniques to prevent, detect and respond to instances of fraudulent activity are working.

The department will continue to refine and expand the use of our tools to detect and address wrongdoing and ensure that individuals or entities engaging in fraud or other illegal activities are held accountable for their actions and return monies owed to the Crown.

Increasing Indigenous involvement in procurement

Issue

PSPC, in partnership with Indigenous Services Canada (ISC) and TBS, are actively working to increase the participation of Indigenous businesses in federal procurement.

Key facts
Key messages

If pressed on the 5% commitment:

If pressed on the Indigenous Business Directory and verification of Indigeneity:

If pressed on alleged cases of Indigenous misrepresentation:

Background

On August 6, 2021, the Government of Canada announced a mandatory requirement for federal departments and agencies to ensure that a minimum of 5% of the total value of contracts are held by Indigenous businesses, to be phased in over three years. To facilitate transparent and timely public reporting on this initiative, a reporting framework was established and guidelines on proactive disclosure were amended as of April 1, 2022.

PSPC, ISC and TBS continue to build partnerships with organizations representing Indigenous people and businesses to best position the federal government to meet the 5% target. Organizations involved include: Assembly of First Nations, Canadian Council for Indigenous Business, Council for the Advancement of Native Development Officers, Inuit Tapiriit Kanatami, National Aboriginal Capital Corporations Association, National Indigenous Economic Development Board, Métis National Council and its governing members, the Manitoba Métis Federation, and representatives from the broader Canadian Indigenous business community.

Conflict of interest

Issue

Following a recent data request from the Standing Committee on Public Accounts (PACP) for a “list of government employees that also work as contractors,” consolidated data was provided to PACP through TBS’ Office of the Chief Human Resources Officer (TBS-OCHRO), with departments each providing information for their respective employees.

Key facts
Key messages

If pressed on the code:

Background

In March 2024, departments were asked to provide the Office of the Chief Human Resources Officer with data on declarations of conflict of interest in 2022-2023 and 2023-2024 where government employees also worked as contractors. This is a very narrow subset of declarations of outside employment by government employees. PSPC reported 5 such declarations in 2022-2023 and 10 in 2023-2024. SSC reported no such declarations in 2022-2023 and 6 in 2023-2024.

Employees may engage in employment or activities outside the public service, provided that such employment or activities do not give rise to a real, apparent or potential conflict of interest, or compromise the impartiality of the public service or their own objectivity.

Employees are required to file a conflict of interest declaration for any paid employment outside PSPC and SSC and for any company they own. In addition, for all of their outside activities, assets, liabilities and interests, employees must submit a conflict of interest declaration if they believe, or are uncertain, that they may be in a real, apparent or potential conflict of interest or may compromise the impartiality of the public service or their own objectivity. PSPC and SSC then determines whether the situation presents a real, apparent or potential conflict of interest, and may require the modification or abandonment of the interest, asset, liability, employment or outside activity. Based on current context, PSPC is updating its conflict of interest processes and assessment tools, such as benchmarks.

The Office of the Chief Human Resources Officer is reviewing the Directive on Conflict of Interest to ensure that the requirements are clear and effective, particularly as they relate to employees who engage in outside employment, including contracts with the Government of Canada. The Office of the Chief Human Resources Officer is also examining guidance on conflict of interest provided to deputy heads to support the effective exercise of their authorities and responsibilities under this Directive, and as required, under the Policy on People Management. These activities could yield changes at the enterprise or organizational level that would impact future results. For example, departments could revise their lists of what constitutes a conflict of interest for individuals working in certain roles or business lines, which could increase the numbers of conflict of interest declarations. This targeted review is well underway and is expected to be completed by end of fiscal year 2024-2025. The approach will rely heavily on consultation with partners and stakeholders to identify gaps and potential areas for improvement, underpinned by research on current approaches in other jurisdictions. 

Office of Supplier Integrity and Compliance

Issue

The Office of Supplier Integrity and Compliance supports the Government’s ability to identify suppliers of concern and take appropriate action to mitigate the risk they pose.

Key facts
Key messages
Background

The Office of Supplier Integrity and Compliance (OSIC) replaces the Government of Canada’s Integrity Regime which was in place since 2015 as a government-wide policy-based debarment system designed to further protect the integrity of federal contracts and real property transactions.

The new office will continue to play a significant role in safeguarding the federal procurement and real property systems, which encompasses approximately $20 billion annually for procurement contracts, real property agreements, the management of Crown-owned properties, and rental payments on 1,690 lease contracts across Canada.

The new office provides an opportunity to modernize the Government of Canada’s debarment and suspension program and further strengthen its use of data analytics to identify potential instances of fraud and wrongdoing and better leverage intelligence relevant to assessing the integrity of vendors within government contracts and real property agreements.

Under the new policy, triggers for suspension or debarment include:

The office actively monitors current events for allegations of supplier misconduct through research, information sharing, and data analytics. OSIC exercises due diligence in assessing potential suppliers and takes action when the policy is triggered.

In addition, departments and agencies are encouraged come forward with their concerns about potential wrongdoings or misconduct and to refer this situations to OSIC. Even if departments do not report issues, OSIC can self-initiate assessments if they become aware of issues. Departments also have the ability to refer cases to law enforcement directly if they suspect elements of criminality within their procurements, such as fraud.

Greening government

Issue

PSPC is at the forefront of the federal government’s efforts to reduce the climate and environmental impact of its operations across all of its business lines in support of Canada’s sustainability goals.

Key facts
Key messages

If pressed on reducing emissions in the Crown-owned portfolio:

If pressed on zero plastics:

If pressed on Green Public Procurement:

If pressed on Zero Emission Vehicles and Electric Vehicle Charging Stations:

Background
National Clean Electricity Initiative

PSPC has been working with the TBS - Centre for Greening Government to develop a strategy to procure 100% clean electricity where available, as was identified in the 2019 Minister of Public Services and Procurement Mandate Letter. PSPC will purchase electricity from new renewable infrastructure, in provinces where it is available, and will procure Renewable Energy Certificates to displace GHG emitting electricity in locations where new infrastructure development is not presently available.

The National Clean Electricity Initiative includes provincial initiatives such as PSPC’s Atlantic Clean Energy Initiative and the Alberta and Saskatchewan Clean Electricity Initiatives to procure clean electricity locally in these provinces. It also includes the procurement of Renewable Energy Certificates to displace electricity generated from high carbon sources for participating federal departments.

Energy Services Acquisition Program

The Energy Services Acquisition Program is modernizing the NCR District Energy System which provides heating services to 80 buildings and cooling services to 67 buildings in the NCR. The modernisation of the NCR District Energy System infrastructure, along with the electrification of the heating plants, will result in a 92% reduction of the District Energy System networks greenhouse gas emissions by 2026, compared to the 2005 to 2006 baseline.

Green procurement

Since the introduction of the Policy on Green Procurement in 2006, PSPC includes environmental criteria in shared procurement instruments. Over 51% of Public Services and Procurement’s 6,354 standing offers and supply arrangements include environmental considerations and PSPC is actively implementing requirements which mandate suppliers to disclose their greenhouse gas emissions for high dollar value procurements (for procurements over $25 million as of April 1, 2023). In addition, to help accelerate a net-zero greenhouse gas emissions and circular economy, TBS and PSPC will continue to work with industry to develop environmental considerations that must be included in all applicable procurements (e.g. the Standard on the Disclosure of Greenhouse Gas Emissions and the Setting of Reduction Targets and the Standard on Embodied Carbon in Construction).

Zero-emission vehicles and charging stations

To support the Government of Canada’s commitment to GHG reduction and attain net-zero emissions by 2030, PSPC is aiming for a 100% conversion of the light-duty fleet by 2030. The department will do so by acquiring zero emission vehicles and replacing the existing internal combustion engine vehicles.

PSPC supports departments and agencies in reducing their greenhouse gas emissions by ensuring the availability of procurement instruments for zero-emission and hybrid vehicles. The department is engaging existing manufacturers to expand their offerings, and is also seeking to onboard new manufacturers. On a yearly basis, in consultation with the selected manufacturers, PSPC provides client departments with a catalogue that includes the available zero-emission and hybrid vehicles to factor environmental impacts into their purchasing decisions.

GCSurplus is exploring avenues for the environmentally responsible divestment of Electric Vehicles batteries.

Defence procurement

In this section

National Shipbuilding Strategy

Issue

The National Shipbuilding Strategy is a long-term commitment to renew the vessel fleets of the Royal Canadian Navy and Canadian Coast Guard, create a sustainable marine sector, and generate economic benefits for Canadians.

Notes
  • Questions on budget, requirements, timelines, international comparisons, and project management should be directed to the Minister of Fisheries and Oceans and the Canadian Coast Guard or the Minister of National Defence
  • Questions related to Canadian sanctions against Russia should be directed to the Minister of Foreign Affairs
Key facts
Key messages

If pressed on the amount of contracts awarded to Chantier Davie Canada Inc.:

If pressed on the increase in the budget for the joint support ship project:

If pressed on contract amounts:

If pressed on economic benefits:

If pressed on the Polar Icebreakers:

If pressed on the program icebreakers:

If pressed on the Canadian International Trade Tribunal and federal court challenges to the award of the Canadian Coast Guard Ship (CCGS) Terry Fox vessel life extension contract:

If pressed on the River-class Destroyer Project:

If pressed on the Government of Canada funding infrastructure enhancements at Irving Shipbuilding:

Background

The National Shipbuilding Strategy is a long-term plan to renew the Royal Canadian Navy and Canadian Coast Guard fleets. It aims to eliminate the boom and bust cycles of vessel procurement that have slowed Canadian shipbuilding in the past.

In 2011, following a competitive, fair, open and transparent process, the government established long-term strategic relationships for the construction of large vessels with 2 Canadian shipyards: Irving Shipbuilding in Halifax, Nova Scotia, for the construction of combat vessels, and Vancouver Shipyards in British Columbia for the construction of non-combat vessels.

Following successful negotiations, the Government of Canada signed an Umbrella Agreement on April 4, 2023 with Chantier Davie. Chantier Davie will build a Polar Icebreaker and Program Icebreakers for the Canadian Coast Guard, and Ferries for Transport Canada.

All Canadian shipyards across the country, except the three strategic shipyards, can compete to win contracts for small vessel construction, whereas all Canadian shipyards can compete for repair, refit and maintenance contracts.

Original budgets for large vessel construction projects were set many years ago and were guided by limited experience and projections. Shipbuilding is highly complex and we continue to build on lessons learned to ensure future project budget and timeline projections are realistic and achievable. We continue to work closely with the shipyards and industry to address ongoing challenges including cost, time estimates and productivity.

The National Shipbuilding Strategy continues to evolve and will be strengthened by the Icebreaker Collaboration Effort (ICE) Pact, an enhanced partnership announced in July 2024 between Canada, Finland, and the United States. This trilateral partnership has been enacted through an official memorandum of understanding for the design, production and maintenance of Arctic and polar icebreakers, as well as other capabilities. The memorandum of understanding, including an implementation plan, was signed by Jean-Yves Duclos, Minister of Public Services and Procurement and Quebec Lieutenant, joined by Alejandro Mayorkas, United States Secretary of Homeland Security, and Wille Rydman, Finland’s Minister of Economic Affairs, on November 13, 2024 in Washington, D.C.

The ICE Pact is a collaborative effort to strengthen the shipbuilding and broader marine industries in each nation by sharing expertise, information, and capabilities related to Arctic and polar icebreakers. The initiative aims to improve cooperation and reduce costs by sharing technical knowledge about icebreakers. It also includes working together on training programs and providing top-quality icebreakers to allies. Additionally, it will create a framework to share research and innovation for future Arctic and polar projects. The information and best practices gained through the partnership will help inform current and future work on icebreaking capabilities built under the National Shipbuilding Strategy.

Canadian Multi-Mission Aircraft Project

Issue

Replacement of the CP-140 will support a Canadian Multi-Mission Aircraft (CMMA) capability that is fully operationally ready, interoperable with allies and key partners, and is able to contribute to Canada’s domestic and international commitments by 2030.

Notes
  • All questions related to capability and costs should be answered by the Minister of National Defence
  • All questions related to industrial and technological benefits should be answered by the Minister of Innovation, Science and Economic Development
Key facts
Key messages

If pressed on Boeing’s technical challenges with its 737 MAX aircraft and its recent agreement to plead guilty to criminal fraud following fatal crashes in 2018 and 2019:

If pressed on the 7-week machinists strike at Boeing that ended on November 5, 2024:

Background

The aim of the CMMA project is to replace the CP-140 Aurora fleet with a new fleet that will provide long-range, long-endurance and multi-mission capability. The current CP-140 Aurora fleet consists of 14 aircraft which were originally procured in 1980 primarily for maritime patrol and anti-submarine warfare. The estimated life expectancy of the CP-140 Aurora fleet is 2030.

Since its acquisition, the aircraft has been used for a variety of operations at home and abroad including surveillance of Canada’s coastal waters, anti-submarine warfare, maritime and overland intelligence, surveillance, strike coordination, disaster relief missions and many other functions. But, as the CP-140 ages, it is becoming increasingly difficult to support, expensive to sustain, and less operationally relevant in comparison to the threats against which it must defend.

Canada’s defence policy update, Our North, Strong and Free, restated Canada’s need and commitment to acquire new maritime patrol aircraft to modernize its contribution to the North American Aerospace Defence Command (NORAD). The updated policy states that “to continue to meet Canada’s defence needs, the Royal Canadian Air Force must increase interoperability with its key partners and core allies”. The acquisition of the P-8A Poseidon aligns with this commitment, as all of Canada’s Five Eyes partners operate the aircraft.

Between June and December 2021, Canada contracted the services of a third-party consultant to assess the CMMA requirements. This multi-phased assessment concluded that the P-8A Poseidon is the only readily available military off-the-shelf capability that meets all of CMMA’s requirements.

Public Service and Procurement Canada, in collaboration with the Department of National Defence and Innovation, Science and Economic Development Canada, has engaged with industry and Canada’s closest allies to determine the best capability to replace the aging CP-140.

Information obtained by Canada demonstrated that the only solution that meets all of the CMMA requirements within the timeframe required to replace the CP-140 fleet by 2030 and avoid an increased capability gap is the Boeing P-8A Poseidon. It should be noted that the P-8A is also owned and operated by all of Canada’s closest defence partners, with over 160 aircraft currently in service around the world.

On November 24, 2023, the Standing Committee on National Defence submitted a report stating that “the committee is of the opinion that the government must proceed by way of a formal Request for Proposals before awarding any procurement contract of the new Canadian Multi‑Mission Aircraft”. The government response was tabled in the House of Commons April 8, 2024.

Arctic and offshore patrol ships costs

Issue

In December 2023, the Department of National Defence responded to a media inquiry regarding the issues and repairs underway on the Arctic and offshore patrol ships (AOPS). As part of this response, 14 ongoing issues were proactively disclosed. These issues continue to draw media attention.

Key facts
Key messages

If pressed on repair costs to fix issues:

If pressed on Our North, Strong and Free: A Renewed Vision for Canada’s Defence:

Background

Recent news articles have noted concerns regarding corrosion, mechanical failure, and severe flooding on AOPS. The government is aware of these ongoing issues and has established a plan to address them.

The technical issues affecting AOPS are being addressed by in-service support contracts for AOPS 1, 2, 3, and 4 which have already been delivered and accepted, and are no longer under warranty. The repair plan for these vessels is underway and costs are not currently available.

Canada contracted for shipbuilding warranty periods that are typical for shipbuilding projects. The workmanship warranty period for the AOPS ships is 12 months after delivery. For ships out of the warranty period, the repairs are being conducted under the AOPS and joint support ship in-service support contract. To qualify as a warranty item, deficiencies must be identified prior to the end of the 12-month period post acceptance. The contractor remains responsible to address these issues, even if those repairs are completed after the warranty period.

Canada has worked collaboratively with the shipbuilder, the in-service community and with the members of the RCN to achieve these results.

The AOPS project will deliver 6 vessels to the RCN to conduct sovereignty and surveillance operations in Canada's waters, including the Arctic, as well as a wide variety of operations abroad. The project will also deliver 2 modified AOPS to the CCG to conduct sea-borne surveillance such as fisheries patrols as well as other missions, including emergency response, buoy tending, icebreaking support, and ocean science.

The vessels are able to perform a wide variety of tasks, such as: provide increased presence and conduct surveillance operations throughout Canada’s waters, including in the Arctic; support Canadian Armed Forces (CAF) sovereignty operations; participate in a wide variety of international operations, such as anti-smuggling, anti-piracy or international security and stability; contribute to humanitarian assistance, emergency response and disaster relief domestically or internationally; conduct search and rescue and facilitate communications among other ships; support CAF core missions including capacity building in support of other nations; and support other government departments in their ability to enforce their respective mandates.

Assault-Style Firearms Compensation Program

Issue

In December 2023, the Government of Canada launched a competitive process to procure services for the collection, storage, validation, verification and destruction of firearms in support of a mandatory compensation program of assault-style firearms that were prohibited on May 1, 2020.

Note: All questions related to capability, requirements and costing should be answered by the Minister of Public Safety.

Key facts
Key messages

If pressed on procurement:

Background

On May 1, 2020, the Government of Canada announced a prohibition on more than 1,500 models and variants of assault-style firearms, such as the AR-15. Since then, approximately 500 additional variants of these prohibited firearms have also been prohibited. These firearms can no longer be legally used, imported, or sold in Canada.

The 2021 Speech from the Throne and mandate letter for the Minister of Public Safety reiterated the commitment of the Government of Canada to make it mandatory for owners to dispose of their assault-style firearms (ASF), by surrendering them to the Government for the purposes of destruction or having them deactivated at the Government’s expense.

The estimated volume of these firearms held by businesses is within the range of 10,000 to 15,000, and the estimated volume held by individuals is within the range of 125,000 to 175,000.

The competitive process is comprised of two components, one Request for Proposal for the Business Phase, which includes stock from resellers such as sporting goods stores, and one subsequent Request for Proposal for the Individuals Phase, which will cover prohibited firearms owned by individuals.

On July 5, 2024, the Request for Proposal for the Business Phase was sent to the Qualified Suppliers. The contract for the Business Phase was awarded on September 26, 2024. The Request for Proposal for the Individuals Phase should be released to the Qualified Suppliers in December 2024.

On December 5, 2024, the government announced the addition of 324 unique makes and models to the list of prohibited firearms.

The program is now live and all “Businesses” have received a notice on December 6, 2024, providing them all necessary information to participate.

As of December 10, 2024, 35 firearms have been collected and destroyed. 68 parts and components have been collected and 5 destroyed. These firearms, parts and components were collected from the 4 businesses participating to the pilot. A total of 9 claims have been submitted on CMS.

The government will collaborate with the “Businesses” to determine how some of the prohibited firearms could be donated to Ukraine.

Canadian Patrol Submarine Project Request for Information

Issue

PSPC, on behalf of the Department of National Defence (DND), issued a Request for Information (RFI) to industry stakeholders to gain further information on the availability of submarines that are currently in service or in production, and the industry’s capability and capacity to build and deliver up to 12 submarines to Canada.

Key facts
Key messages

If pressed on the RFI:

Background

Through Canada’s defence policy, Our North, Strong and Free, the Government of Canada is providing members of the RCN with the equipment they need to maintain current and future operational readiness.

In addition to the funded initiatives in Our North, Strong and Free, Canada also identified ten capabilities for which options will be explored, including renewing and expanding the RCN’s submarine fleet.

Canada’s key submarine capability requirements will be stealth, lethality, persistence and Arctic deployability – meaning that the submarine must have extended range and endurance.

Canada’s new fleet will need to provide a unique combination of these capabilities to ensure that Canada can detect, track, deter and, if necessary, defeat adversaries in all three of Canada’s oceans while contributing meaningfully alongside allies and enabling the Government of Canada to deploy this fleet abroad in support of our partners and allies.

Defence Procurement Review

Issue

To support the Government’s commitments outlined in Our North, Strong and Free, a review of Canada’s Defence Procurement System was launched.

Notes
  • Questions on specific defence projects and capabilities should be directed to the Minister of National Defence
  • Questions related to economic benefits, the Industrial and Technological Benefits (ITB) Policy and Canada’s defence industry should be directed to the Minister Innovation, Science and Industry
Key facts
Key messages

If pressed on the elements of the review:

If pressed on when the government will announce the results of the Defence Procurement Review:

Background

In Our North, Strong and Free the government committed to a number of procurement initiatives, including:

Housing and Parliamentary Precinct

In this section

Conversion of federal properties to housing

Issue

The Canada Public Land Bank was launched in August 2024 to unlock public lands for housing; properties continue to be added to meet the deliverables outlined in Budget 2024 to support the Public Lands for Homes Plan.

Key facts
Key messages

If pressed on departmental activities:

If pressed on the November 19, 2024, announcement:

Background

PSPC is the federal government’s administrator of real property and is responsible for approximately 6.9 million square meters of space across Canada. This includes the office portfolio, special purpose buildings, and other assets. About 6.2 million square meters is considered office space. PSPC is working to right-size, modernize and green the federal office portfolio, which will result in the disposal of assets that are no longer required.

In support of Budget 2024, PSPC:

CLC is a self-financing, federal, Crown corporation specialized in real estate development and attractions management. By the end of March 2024, CLC enabled the construction of more than 13,000 new homes since 2016. It is now on track to enable the construction of more than 29,200 new homes over the next five years and has a new minimum affordable housing target of 20 per cent across projects in its residential pipeline. Pending the approval of CLC’s corporate plan, the new affordability requirement would apply where a municipal minimum requirement for affordable housing is lower or does not already exist.

Optimizing Public Services and Procurement Canada’s real property portfolio

Issue

PSPC will continue to provide sufficient office space to accommodate federal public service employees in its offices.

Key facts
Key messages

If pressed on GCcoworking:

Background

PSPC frequently reviews how efficiently it uses public funds when providing work environments for federal public servants to deliver programs and services to Canadians. The shift to a hybrid work environment and unassigned seating by default permits more effective utilization of office space that was simply not possible before when desks were assigned to public servants on a one-for-one basis. Allowing employees to choose the workspace that best suits their needs, based on their tasks at hand and their preferences, resulted in greater flexibility. Budget 2024 proposes to provide $1.1 billion over ten years, starting in 2024-25, to PSPC to reduce its office portfolio by up to 50 per cent. PSPC will achieve this reduction by disposing of surplus properties and identifying those with potential for housing.

We are currently working with federal departments and agencies to establish their long-term office accommodation plans to inform our future plans.

To complement departmental office spaces, there are seven GCcoworking sites across the country: Vancouver, BC; Fort William, ON; Toronto, ON; Laval, QC; Moncton, NB; Dartmouth, NS; and Charlottetown, PEI. In addition, there are six GCcoworking sites in the NCR: Kanata; Orléans; Ottawa South; Downtown Ottawa; Downtown Gatineau (Hull); and Gatineau.

Status of the Long Term Vision and Plan for the Parliamentary Precinct

Issue

PSPC is implementing the Long Term Vision and Plan, a multi-decade strategy to restore and modernize the Parliamentary Precinct.

Key facts
Key messages

If pressed on Wellington Street:

If pressed on the Parliamentary Campus Tunnels:

Background

The Long Term Vision and Plan (LTVP) supports the mandate commitment of advancing work to rehabilitate and reinvigorate places and buildings of national significance such as Centre Bock, new welcome centre and redevelopment of block 2.

An update of the LTVP is now complete and is seeking approval from Parliament this fall. The updated LTVP has shifted from a building-by-building strategy to a campus-based approach.

Wellington Street

Formal discussions with the City of Ottawa on the future of Wellington Street were launched in April 2023 and remain ongoing. A draft agreement, including fair compensation, for consideration by the city was developed jointly by City and federal officials to support the transfer of the street. The city has not yet responded to the offer, but PSPC remains open to continuing discussions.

Centre Block Rehabilitation Program

Work is underway to restore and modernize the Centre Block and construct Canada’s new Parliament Welcome Centre. 50% design development milestones have been achieved for the Centre Block, Parliament Welcome Centre, and landscape designs, with 100% design development targeted for fall 2025.

Block 2 Redevelopment

The rehabilitation and modernization of Block 2 will transform obsolete heritage buildings into modern, sustainable, accessible and permanent facilities for Parliament. It will also enable key buildings to be emptied for their restoration.

Parliamentary Campus Tunnels

PSPC has initiated the Parliamentary Campus Tunnels project to support the ongoing shift to a fully modernized campus with interconnections between all core buildings that will allow for the secure movement of accredited pedestrians and goods in the Parliamentary Precinct.

The project continues to be in the early stages of planning. Previous costs for the tunnel network project presented to Parliament reflected early rough order of magnitude estimates. These early estimates for construction only have now been updated following a feasibility study conducted in 2024.

Indigenous procurement

Parliamentary Precinct projects continue to collaborate with Indigenous partners to advance reconciliation through increased economic opportunities for Indigenous businesses. Indigenous Participation Plans have been implemented for major Parliamentary Precinct projects, including the Centre Block and Block 2 projects. Efforts are also underway with the Anishinàbe Algonquin as the host nation to more effectively communicate and link Indigenous businesses with existing and future opportunities.

Pay

In this section

Update on Pay Stabilization: Support for employees and investments

Issue

This note focuses on efforts and progress to date to provide support to employees and stabilize the administration of pay, and on financial investments in Phoenix.

Notes
  • All questions related to the mental health of public servants, collective agreements and compensation for Phoenix damages agreements should be directed to the President of the Treasury Board
  • Issues related to income tax are under the purview of the Canada Revenue Agency
Key facts
Key messages

If pressed on Dayforce:

If pressed on the backlog:

If pressed on renewed public dashboard:

If pressed on collective agreement implementation – 2022 contracts:

If pressed on support to employees:

If pressed on specific actions:

Background
Stabilizing the administration of pay

Since the launch of Phoenix, PSPC has implemented a series of measures focused on stabilizing the administration of pay.

In addition, we are focusing on other operational priorities in pay administration including pension arrears, terminations, and overpayments. We have improved service standard compliance while managing sustained increases of transactions submitted to the Pay Centre by departments and agencies, starting in 2021 and expected to continue going forward.

Employees who have been underpaid can request emergency salary advances or priority payments from their departments.

NextGen HR and Pay Initiative

In November 2023, the Next Generation Human Resources and Pay (NextGen HR and Pay) Initiative team, formerly with SSC, officially joined PSPC.

The mandate of the NextGen HR and Pay Initiative was to assess the viability of adopting a commercially available, integrated Human Resources and pay Software-as-a-Service (SaaS) solution given the complexities of the Government of Canada’s human resources and pay requirements.

After the testing with pilot departments within government as part of phase 1, the Dayforce solution was deemed technically viable to provide human resources and pay services for the Government of Canada. The enterprise strategy will build on the testing results and findings to complete further design, planning, testing and validation on the scalability of this solution. These activities are needed to deliver an evidence-based recommendation to the Government of Canada on the future of HR and Pay. A final recommendation on the way forward for HR and Pay is expected in Spring 2025.

Collective agreement implementation: 2018 and 2022 contracts

The 2018 round of Collective Agreement Implementation includes agreements signed in 2018 through 2023, and is nearly complete. To date, 2018 Collective Agreement Implementation salary adjustments and retroactive payments have been completed through the automated process for 147 Treasury Board of Canada Secretariat and separate employer agreements, representing over $2 billion in payments to employees (as of April 2023).

The implementation of the 2022 round of collective agreement started in 2022, and in the summer 2023, the Government of Canada began processing the first wave of signed agreements from the recent rounds of collective bargaining for major groups. As of October 7, 2024, the new rates of pay have been updated in the pay system for approximately 344,000 employees.

For the 2022 round of collective agreement implementations, and similar to the 2018 round, we expect an overall average of approximately 10% of employees will see at least one transaction needing manual intervention. The results of each retroactive payment process are expected to vary due to a combination of many factors, including agreement complexity. We are on track to complete the 2022 collective agreement implementation within negotiated timeframes.

MyGCPay

MyGCPay is a web application developed by PSPC to help rebuild federal government employees’ confidence in the integrity of their pay. It provides employees with a centralized and simplified view of their pay and benefits. It helps employees identify pay issues earlier and allows them to monitor their open cases with more detail.

In July 2023, we introduced external access to MyGCPay, providing inactive employees, former employees and employees without access to the GC network (i.e., Phoenix Self-Service or CWA) secure access to their pay and benefits information.

Transparency by design

We recently implemented a Transparency by Design approach to better engage and support the information needs of current and former public servants. This includes the GC Employee Pay and Benefits Facebook page and the Quarterly Progress Report.

In April 2024, we implemented a new GC Employee Pay and Benefits Facebook page, providing accurate and timely pay and benefits related information and updates to Government of Canada employees. It allows us another way to engage directly with current and former public servants and better support their questions regarding their pay and benefits.

In July 2024, we released the first external Quarterly Progress Report, providing an update on our Integrated, Enterprise HR and Pay Strategy. It details how we are improving and how we are addressing challenges with the current pay system and our operations. It also highlights our work to explore a new modern HR and pay solution for Government of Canada employees. The second external Quarterly Progress Report was released October 2024.

Processing of pay transactions

Issue

This note focuses on the efforts and progress to stabilize the administration of pay, manage intake of pay transactions, and the ongoing reduction of the backlog.

Key facts
Key messages

If pressed on the increase of the backlog:

Background
Queue and backlog

Since January 2018, PSPC’s Pay Centre has made significant progress in reducing the overall queue and backlog of pay transactions, Despite productivity improvements, high intake levels have outpaced pay processing capacity, leading to increases in the queue as well as in the backlog of cases that are a year old or more.

Intake and workload at the Pay Centre has grown. Intake for the 2023 calendar year was approximately 1.69 million cases, surpassing the intake for 2019 by 45%, 2020’s intake by 60%, 2021’s intake by 38%, and 2022’s intake by 15%.

PSPC continues to make progress on older cases, but that progress has slowed as intake, and therefore the overall volume of work, has grown. These outstanding transactions, both intake and backlog, are not errors – they represent the normal pay administration work we do to support our client population.

The number of transactions processed each month varies based on a number of factors, such as the complexity of cases and collective agreement implementation. Intake also shows seasonal trends, with peaks at the end of the calendar year, the end of the fiscal year, and the end of summer, which marks the completion of many casual and student work terms.

In 2023, the Pay Centre processed 281,000 more transactions compared to 2022. However, the increase in output was met by an increase in intake of 220,000 transactions, offsetting the impact of the increase in productivity. The growth in intake is driven by the increase in the population of departments served by the Pay Centre as well as changes in per capita intake trends. Per capita intake is now higher than it was in 2019, having fully rebounded from the dip that began in March 2020.

In addition, new challenges have been affecting progress to eliminate outstanding transactions and keep up with new intake since March 2021. These challenges include the high complexity of transactions that remain in the backlog, changing employee and enterprise behaviour such as increased HR activity and employee movement, as well as government-wide operational and human resources policy priorities which have contributed to workload increases. Examples include classification conversion, implementation of the mandatory vaccination policy and associated leave without pay processing, vacation/compensatory leave cash-out, and others including strike-period leave without pay processing in 2023.

Other

In this section

Interpreter health and safety and interpretation capacity at the Translation Bureau

Issue

The Translation Bureau plays a crucial role in Canadian democracy, and interpretation services are essential. Its ability to provide interpretation services to Parliament has been compromised in recent years by the worldwide shortage of interpreters and health and safety incidents related to sound quality among interpreters. The Translation Bureau has implemented several measures to strengthen its interpretation capacity and protect interpreters.

Key facts
Key messages

If pressed on acoustic protection measures:

If pressed on interpreters contract amendment:

If pressed on capacity:

If pressed on university scholarships in interpretation:

If pressed on interpretation hours:

If pressed on pilot project for the general interpretation accreditation:

Background
Directions and acoustic protection measures

In February 2023, the Translation Bureau received two directions from Employment and Social Development Canada’s Labour Program. The Translation Bureau worked with the House and Senate to comply with the directions, and the case was closed. Following a feedback event affecting interpreters on April 8, 2024, the Translation Bureau received a new direction on April 25, 2024, directing the Bureau to better protect interpreters from exposure to feedback. Measures were quickly put in place to comply with this direction. On April 26, 2024, the Labour Program accepted these measures, which were added to the Translation Bureau's existing continuous improvement plan.

The Translation Bureau continues its discussions with its partners and the Labour Program investigator to minimize risks to the health and safety of interpreters, researching new technologies that can reduce the risk of feedback, and providing regular reminders of existing prevention measures and protocols. The Translation Bureau has set up a team that worked over the summer to put in place more permanent measures for the return to Parliament next fall. The investigator verbally accepted all the measures put in place by the Translation Bureau.

Pilot project with the House of Commons Administration

The Translation Bureau is participating in a pilot project developed by the House of Commons Administration to provide of interpretation by interpreters located off site from the parliamentary precinct, enabling it to use freelancers outside the National Capital Region to better meet Parliament’s needs.

Pilot project for the general interpretation accreditation

In response to parliamentarians' requests for increased interpretation capacity, the Translation Bureau has developed a pilot project for the general accreditation of interpreters, applicable only to Government of Canada conferences (not to services provided to Parliament). To support this pilot project, the Bureau has developed a preliminary working document to provide a framework, as well as a guide and tools for supervisors. This preliminary working document continues to evolve and will be updated based on feedback obtained throughout the first cohort of the pilot project, which has not yet been launched.

Entry-level accreditation would be granted to freelance official language interpreters who have clearly demonstrated the necessary skills to work on general events, but who are not sufficiently autonomous to be assigned to complex or high-profile assignments. The aim is to provide these interpreters with the resources and opportunities they need to gain experience and eventually qualify for full accreditation. Freelance interpreters taking part in the pilot project would benefit from a coaching plan to help them improve their skills. They would also be encouraged to take the accreditation exam. They would undergo a quality assessment. They would be matched with experienced interpreters who would offer constructive advice and be ready to intervene.

Interpreters contract amendment

The Translation Bureau uses freelancers for about half of its official language interpretation requirements. Although it sometimes uses ad hoc contracts for this purpose, it mainly uses an open contract, the most recent of which was awarded in June 2023 and expired in June 2024. The Translation Bureau took advantage of the option year by making an amendment to clarify the clause concerning time for sound and non-interpretation tests, as well as the grace period to ensure that Canada receives 4 hours (or 6 for some contracts) of interpretation time.

Many freelance interpreters and the International Association of Conference Interpreters of Canada (AIIC) reacted negatively to the contract change. In response, on July 23, 2024, PSPC sent a letter to AIIC and all suppliers informing them that PSPC considers the May 28, 2024 email to freelance interpreters to have exercised the contract extension option, that all contracts are still valid, and that freelancers will have the choice of refusing to renew their contracts or renewing them with the same clauses as last year. The Translation Bureau and Procurement Sector will be working to prepare a new call for tenders, including consultation with the industry, including freelance interpreters.

Interpreting hours

Since the pandemic, staff interpreters have had their work schedule reduced from 6 hours of interpretation to 4 hours of interpretation. Since February 2024, staff interpreters have been performing translation duties to make up the full working day, as stipulated in the collective agreement signed in 2023.The Translation Bureau expects phase 2 of an expert audiological report by the University of Ottawa in the fall of 2024.

University scholarships in interpretation

In Budget 2024, in order to train the next generation of official language interpreters, the government proposes to provide $1.1 million over five years, starting in 2024-2025, and $0.2 million thereafter, to SPAC to establish a scholarship program. Funding will come from existing departmental resources. The Translation Bureau is working with Canadian Heritage so that the first scholarships can be awarded in December, in anticipation of registration for the winter 2025 session.

National Capital Region transportation

Issue

PSPC is committed to maintaining and renewing its interprovincial infrastructure within the NCR to address increasing and evolving traffic patterns and respond to citizens’ priorities for more and better active mobility, public transit and vehicular crossings.

Key facts
Key messages

If pressed on an additional NCR bridge:

If pressed on replacing the Alexandra Bridge:

If pressed on the Long-Term Integrated Interprovincial Crossings Plan:

If pressed on the Gatineau tramway:

Background

There are five federal vehicular interprovincial crossings in the NCR. PSPC manages and operates the Alexandra Bridge (built in 1901), Chaudière Crossing (with the Union Bridge, built in 1919, being the oldest of the 8 structures that together constitute the crossing) and the Macdonald-Cartier Bridge (built in 1965). The NCC manages and operates the Champlain Bridge (built in 1928) and the Portage Bridge (built in 1973).

Transportation studies conducted over the last 10 years have consistently shown that the 5 existing vehicular crossings and connecting roadways are at full capacity during morning and evening peak travel times (average daily traffic on all crossings: 187,000 vehicles daily; 9,000 using active transportation such as cycling or walking).

These bridges are aging and were built in an era when the NCR had a much smaller population, fewer interprovincial commuters and far less congestion due to truck traffic. PSPC continues to advance work to increase crossing capacity, to address interprovincial truck traffic and to respond to citizens’ priorities for more and better pedestrian and cycling networks.

The 2023 traffic counts show that the number of vehicles using the bridges are around 90% of pre-COVID-19 volumes. Truck traffic issues in the downtown Ottawa core continue to persist. The closure of the Alexandra Bridge to traffic for repairs (and for its eventual replacement) have the other four bridges taking on additional traffic and are at or near their pre pandemic volumes. The number of pedestrians has reached a new high, almost 10,000 per day. The number of cyclists has not yet returned to what it was before the pandemic. Additional capacity is required to alleviate these issues.

For years, there has been a consistent need for an additional crossing in the NCR. PSPC and the NCC are working in close collaboration to coordinate the gathering of new information to help the Government of Canada consider its options for an additional NCR crossing.

The Long-Term Integrated Interprovincial Crossings Plan, developed by the NCC and approved by its Board in 2022, confirmed the vision for the region. The implementation and update of the Long-Term Integrated Interprovincial Crossings Plan will take into account the impact of the hybrid work model on peak hour needs due to changes in travel patterns and will inform the configuration of the additional crossing, need for improved interprovincial public transit and the replacement of the Alexandra Bridge.

The Alexandra Bridge has reached the end of its life cycle and is due for replacement. Time, exposure to natural elements and salt, as well as continued usage, have taken their toll. Despite our best efforts to maintain the bridge, assessment and studies show that over the last few years, the bridge has continued to deteriorate.

Contracts awarded to McKinsey & Company

Issue

There has been recent media and Parliamentary attention related to contracts awarded to McKinsey & Company.

Note
  • All questions related to McKinsey’s work on Robotic Process Automation and Accelerator Services are in a separate question period note (Phoenix IBM and pay stabilization)
Key facts
Key messages

If pressed on reviews of contracts to McKinsey & Company:

If pressed on allegations of tax fraud and actions abroad faced by McKinsey:

Background

PSPC awarded 24 contracts to McKinsey & Company between 2011 and 2023. These contracts were assessed by PSPC’s internal audit services, the Office of the Procurement Ombud, and the Office of the Auditor General.

The internal review determined that, overall, the integrity of the procurement process was maintained and complied with the Values and Ethics Code for the Public Sector, the Directive on Conflict of Interest, and supporting procurement policy instruments and procedures. Specifically, no instances of non-conformity were found with respect to conflict of interest regarding current or former public servants or public office holders, as well as McKinsey & Company. However, it also found areas for improvement related to record management and contract administration.

PSPC accepted all recommendations associated with this audit and put in place a Management Action Plan. In addition, the department reviewed all National Master Standing Offers related to benchmarking data analytics and services and has determined that these tools will be replaced with a procurement approach that ensures open, fair and transparent competition.

The McKinsey & Company standing offer expired in February 2023, as planned, and all other existing Standing Offers for benchmarking services ended between February and June 2024.

The Treasury Board of Canada Secretariat and auditors, including the OAG and the OPO has focussed on 10 departments that contracted with McKinsey & Company under their own delegation. PSPC procured various professional services, including strategic advice, subject matter experts, benchmarking services and services for the development of transformation strategies, for 7 of these departments.

Outsourcing of professional services

Issue

There has been media attention on federal government spending on professional services contracts.

Key facts
Key messages

If pressed on the growth in expenditures on professional services:

If pressed on subcontracting:

If pressed on mark-ups (commissions) paid to vendors through subcontracting:

Background

The OPO and the OAG tabled audit reports on January 29, 2024 and February 12, 2024, respectively. The reports highlight serious concerns regarding project management and offer recommendations pertaining to procurement, specifically professional services.

In light of the findings of the audits, PSPC took immediate action to strengthen existing controls around the administration of professional services contracts. On November 28, 2023, other government departments and agencies were informed of new measures, introducing a common set of principles and mandatory procedures that clients must abide by to use PSPC’s professional services contracting instruments.

These changes closely align with the recommendations in the OAG and OPO audits and are echoed in the resultant management action plans to which PSPC committed.

On October 5, 2023, Treasury Board published guidance about the use of contracted professional services. The Manager’s Guide: Key Considerations when Procuring Professional Services will help managers determine when to contract for professional services versus when to use internal resources. The Guide also lays out practical considerations for managers when structuring contracts so that they deliver best possible value, can be effectively managed, and fully align with requirements of Treasury Board’s Directive on the Management of Procurement, which was also updated, in June 2024, to incorporate some of the elements of the Guide as mandatory procedures. The new Mandatory Procedures for Business Owners When Procuring Professional Services seeks to strike a balance between reinforcing the accountabilities of business owners without creating undue barriers to the delivery of programs and services to Canadians.

Procurement with Dalian and Coradix

Issue

PSPC’s procurement relationship with Dalian and Coradix.

Key facts
Key messages
Background

On November 11, 2024, The Globe and Mail reported that Coradix had filed a lawsuit against the Government of Canada, claiming $64 million in damages, according to Federal Court records. The media report also indicated that at the time of its suspension, Coradix had 81 federal contracts and that all were terminated or suspended within weeks.

Acquisition of the Quebec bridge by the Government of Canada

Issue

On November 12, 2024, the Government of Canada confirmed that it once again became the owner of the Quebec Bridge following an agreement concluded with the Canadian National Railway Company (CN).

Key facts
Key messages
Background

The Quebec Bridge has been managed by CNsince its construction in 1920. CN, initially a Crown corporation, became a private organization in 1995. CNacquired the Quebec Bridge with associated environmental responsibilities at the time of this change of corporate status. Issues related to the deterioration of the bridge and its maintenance by the CNhave been the subject of discussions between municipal, provincial and federal governments and the CNfor several years.

The federal government corporation Jacques Cartier and Champlain Bridges Incorporated will have the management mandate of the Quebec Bridge as owner. The organization, which is accountable to Parliament through Housing, Infrastructure and Communities Canada (HICC), already operates the Jacques-Cartier and Honoré-Mercier bridges in Montreal and will be responsible for the maintenance and the restoration of the bridge.

CNremains responsible for the rail corridor. The Quebec Ministry of Transport and Sustainable Mobility retains responsibility for the road deck and the cycle path

PSPC, as an optional service provider, have offered HICC consulting services in real estate transactions, surveying and the completion of due diligence stages

Modernization of the Saint-Bernard-de-Lacolle border post in Quebec

Issue

PSPC was mandated by the CBSA to modernize border facilities located in Saint-Bernard-de-Lacolle. To do this, PSPC put in place two major contracts for architecture and engineering services and for construction management services following competitive processes.

Key facts
Key messages
Background

The Saint-Bernard-de-Lacolle border crossing in Quebec, made up of several buildings built between 1951 and 2016, is the point of entry for the largest number of travellers and commercial transport in Canada. In recent years, this border crossing has experienced an increase in the number of immigration applicants, which has caused greater use of existing infrastructure than expected and the fragmentation of services in the different buildings spread across the site. As a result, some of this infrastructure is reaching the end of its useful life or requires significant upgrades. This project is part of a national border crossing renovation program of the Canada Border Services Agency (CBSA).

Crown Corporations

In this section

Canada Post Corporation financial stability

Issue

Canada Post faces financial challenges in the face of lower revenues due to the ongoing decline in letter mail volumes and the need to operate in the increasingly competitive parcels market.

Key facts
Key messages

If pressed on financial situation:

If pressed on increase to postage rates:

Background

A crowded and highly competitive ecommerce delivery market continued to impact Parcels revenue in the first and second quarters of 2024. Transaction Mail volume continued to erode, while Direct Marketing revenue and volumes picked up.

Canada Post reported a $315-million loss before tax in Q3 2024, up $25 million from Q3 2023. For the first nine months of 2024, losses totalled $345 million, an improvement from $651 million in 2023, aided by income from divesting SCI Group Inc. and Innovapost Inc. Despite this, 2024 will mark its seventh consecutive annual loss.

Parcels

In Q3 2024, Parcels revenue dropped by $46 million (5.8%), with volumes declining by 6 million pieces (9.6%) compared to Q3 2023. Increased competition, including commercial consolidators and reduced fuel surcharges, impacted results. Year-to-date, revenue fell by $133 million (5.5%), with volumes down 12 million pieces (6.0%) from the prior year.

Transaction Mail

In Q3, Transaction Mail revenue rose by $7 million (1.3%) despite a 6.6% (33 million piece) volume decline, aided by a May 6, 2024, postage rate increase. Year-to-date, revenue remained steady, while volumes dropped 3.7% (63 million pieces) compared to 2023.

Direct Marketing

In Q3, Direct Marketing revenue grew by $21M (9.0%) with a 22.1% increase in volume. Year-to-date, revenue rose $63M (9.1%) with a 19.7% volume gain, driven by new business and higher Canada Post Neighbourhood Mail™ sales, though economic uncertainty and digital marketing alternatives dampened other product sales.

Group of Companies

The Canada Post Group of Companies reported a pre-tax loss of $252 million in Q3 2024, up from $217 million a year earlier. Purolator Holdings Ltd. posted a pre-tax profit of $62 million, down from $68 million in Q3 2023.

For the first nine months of 2024, the Group recorded a pre-tax loss of $281 million, an improvement from $442 million in the same period of 2023, aided by proceeds from the sale of SCI Group Inc. and Innovapost Inc. Purolator's nine-month pre-tax profit declined to $182 million from $201 million in 2023.

In January 2024, Canada Post and Purolator sold 100% of their shares in SCI Group Inc. and Innovapost Inc. as part of a strategic transformation to modernize its postal service and refocus on its core mandate.

Canada Post labour negotiations

Issue

Canada Post’s two collective agreements with the Canadian Union of Postal Workers (CUPW) expired on December 31, 2023, (Rural and Suburban Mail Carriers) and January 31, 2024 (Urban Postal Operations).

Key facts
Key messages

If pressed on back to work legislation:

If pressed on layoffs:

If pressed on impacts to Receiver General cheques:

Background

Canada Post and the Canadian Union of Postal Workers (CUPW) have been negotiating since November 2023 to reach new collective agreements.

Canada Post has proposed wage increases (11.5% over 4 years), added paid leave, and preserved employee pensions and jobs. Plans include seven-day parcel delivery and competitive pricing.

During the national strike, no mail or parcels will be processed or delivered, some post offices will close, and service guarantees will be affected. Items in the network will be secured and delivered on a first-in, first-out basis once operations resume, but delays are expected even after the strike ends.

Separate Sort from Delivery

Separate Sort from Delivery (SSD), a key issue in CUPW negotiations, is a delivery model introduced by Canada Post in 2017. It separates mail sortation from delivery, with some employees sorting mail for multiple routes and others focused solely on delivery. Now used in over 70 facilities nationwide, SSD has not affected customer delivery or caused job losses. Employees are encouraged to share local feedback to address any concerns.

Rural postal service

Issue

Questions have been raised in the past on the level of postal service in rural communities and on the moratorium on rural post office closures. On February 6, 2024, the Government Operations and Estimates Committee passed a motion to study the decline of rural postal services

Key messages

If pressed on postal service:

If pressed on delivery and returns:

Background

The operations of Canada Post are funded by the revenue generated by the sale of its products and services, not taxpayer dollars.

Rural moratorium

In 1994, the Government announced that no rural or small town post offices would be closed or converted to franchised postal outlets and thus established an indefinite moratorium on rural post office closures.

In 1999, the Government confirmed that the moratorium was to remain in place and in 2009 introduced the Canadian Postal Service Charter. This charter reflects the Government’s commitment to a universal, effective and economically viable postal service for all Canadians, rural and urban. Canada Post continue to meet all of our obligations under the Canadian Postal Service Charter. This ensures postal services remain universal, affordable and reliable. Canada Post serve all 17.2 million residential and business addresses in Canada, including rural and remote regions. Canada Post provide five-day-a-week delivery while maintaining an extensive network of post offices.

The Charter recognizes that situations affecting the operation of some small post offices do unfortunately arise, whether the office is corporately or privately operated. Retirements, illness, death, fire, termination of a lease or sale of a business occurs and it is unavoidable that service at small rural post offices will be affected. Canada Post has established an assessment and consultation process to manage these changes in rural communities.

Canada Post’s first priority is always to ensure that local mail delivery is maintained without interruption while the options available to meet the postal needs of the community are explored. In some cases, emergency temporary arrangements are put into place to ensure that mail delivery is not interrupted. If a dealer operates the post office, Canada Post attempts to replace the dealer.

Canada Post proceeds to immediately staff the corporate post office where:

Canada Post consults with elected officials from communities where:

Decisions are made on a case-by-case basis, and the approach is to find solutions that are satisfactory to the community by providing the service required in a practical manner. All affected Members of Parliament and municipal officials are informed when a situation affecting a post office arise. In 2022, there were 135 events potentially affecting ongoing operation of rural post offices. In 77% of cases, retail services were maintained within the same community. The other 23%of cases were resolved through services provided in nearby towns.

Rehabilitation of National Capital Commission assets

Issue

The Official Residences of Canada: 2021 Asset Portfolio Condition Report was released by the NCC in 2021 and identified a requirement for an injection of $175 million over 10 years to address the deferred maintenance deficit for all six official residences.

Key facts
Key messages

If pressed on the NCC’s asset portfolio condition report:

If pressed on 24 Sussex:

If pressed on Harrington Lake:

If pressed on Stornoway:

If pressed on Rideau Hall:

Background

In 2017, the NCC commissioned in-depth building condition reports for the largest and most complex buildings in the official residences portfolio. These reports, made public in 2018, found that 58% of the assets in the official residences portfolio were considered to be in ‘poor’ to ‘critical’ condition, including half of the main residences. This analysis was refreshed in 2021 using the same methodology. The findings are laid out in the Official Residences of Canada: 2021 Asset Portfolio Condition Report, which details the current state of all six official residences and their ancillary buildings under the stewardship of the NCC. The latest findings confirm that the overall condition of the Portfolio continues to deteriorate with only 24% of the assets considered to be in “good” condition, down from 34% in 2018. The report was presented to the NCC’s Board of Directors on June 23, 2021, and subsequently published on the NCC’s website.

The report highlights the shortfall in funding required to restore and maintain the heritage buildings in this asset portfolio. Since the 2018 report, the NCC has invested approximately $26 million in capital funding on rehabilitation work. Despite these investments, the cost of addressing the portfolio’s deferred maintenance deficit has increased and it is now estimated that an injection of $17.5 million per year, over 10 years—for a total of $175 million—is needed to close the deferred maintenance gap. In addition to this sum, the report identifies a need for $26.1 million in annual funding to cover ongoing maintenance, repair and renovation costs.

Shared Services Canada

In this section

2024 to 2025 Supplementary Estimates (B) Overview

SSC is seeking a net increase of $52.0M through the Supplementary Estimates (B), increasing its available funding from $2.64B to $2.69B net of revenues.

Items sought in 2024-25 Supplementary Estimates (B) Amounts in Millions
New funding
Funding for core IT services $41.1
Funding for the presidency of the 2025 G7 Summit in Canada (Budget 2024) $11.5
Total new funding $52.6
Transfers
From other departments
From Statistics Canada (StatCan) to SSC for operations of StatCan cloud infrastructure $4.7
From the Treasury Board Secretariat (TBS) to various organizations to support projects which will reduce greenhouse gas emissions in federal government operations $0.05
To other departments
To Global Affairs Canada (GAC) for the transfer of Microsoft desktop support ($0.1)
To Public Service Commission (PSC) for the Public Service Resourcing System ($0.2)
To the Canada Revenue Agency (CRA) for bulk print equipment ($2.2)
To the Communications Security Establishment (CSE) for the operations of the Secure Communications for National Leadership Program ($3.1)
Total transfers ($0.9)
Other adjustments
Statutory Appropriations
Employee Benefit Plan (EBP) $0.3
Total other adjustments $0.3
Total net increase $52.0

New funding: $52.6 million increase

(A) Funding for Core IT Services

$41,064,936

Purpose

The funding of $41.1M is to support the onboarding of new full-time equivalents (FTE) employees with core IT services including standardized network services, procuring software and hardware for workplace technology devices, and providing technology-related services.

(B) Funding for the Presidency of the 2025 G7 Summit in Canada

$11,532,000

Purpose

The funding of $11.5M will be used to determine the telecommunications and IT infrastructure required to deliver the G7 Summit and associated activities.

Transfers: ($0.9 million) decrease

(C) Transfers between Shared Services Canada and other organizations

Transfer of ($927,830)

Purpose

Transfers between SSC and other organizations for various initiatives totalling $0.9M for 2024-25:

Other Adjustments: $0.3 million increase

Statutory appropriations

(D) Employee Benefit Plan

$270,000

Purpose

The increase to SSC’s statutory appropriations of $270,000 is related to EBP adjustments due to the increase in salary funding for the planning and the delivery of the 2025 G7 Summit, an item added in the 2024-25 Supplementary Estimates (B).

Shared Services Canada’s 2023 to 2024 Departmental Results Report

Issue

Key facts

Key messages

If pressed on unmet departmental results indicators:

Background

The Departmental Results Report informs parliamentarians and Canadians of the results achieved by SSC for Canadians, and the resources used to achieve those results. A retrospective view is provided for 2023-24 against the plans, priorities and expected results that were set out in the corresponding 2023-24 Departmental Plan. The Departmental Results Report is based on the approved 2023-24 Departmental Results Framework and Program Inventory.

Office of the Auditor General’s Report on Digital Identity

Issue

On December 2, 2024, the Auditor General released a report on Digital Validation of Identity to Access Services. SSC and other departments supported the work of the Treasury Board of Canada Secretariat to plan a national approach to digital identity that would provide Canadians with digital validation of their identity to seamlessly and securely access government and other services.

The report recommends that Canadian Digital Service, now at Employment and Social Development Canada (ESDC)/SSC, should lead the work of the federal government to further explore a national approach with provincial and federal partners to digitally validating identity to support seamless and secure access to online services for Canadians

Key facts

Key messages

If pressed on the recent request for information:

Background

Canadians are becoming increasingly reliant on online services. As the GC continues to shift services online, a secure, reliable system for managing digital identities and sign-in services has become essential.

The federal government has over 60 different online programs and services where identity verification is required, each with their own verification system. The result is an inconsistent experience in obtaining government services digitally. The Government of Canada announced an investment of $25.1M over five years to establish a modern, single sign-in portal for federal government services.

On October 28 2024, the Government of Canada issued a Request for Information to gather information on prospective components for a common platform to issue and verify digital credentials. SSC, the Contracting Authority, issued the Request for Information on behalf of the Canadian Digital Service, the Technical Authority.

Shared Services Canada procurement

Issue

This note explains SSC’s general procurement practices and achievements.

Key facts

Key messages

If pressed on numbers:

If pressed on sole-sourcing:

If pressed on no substitution:

If pressed on need for professional services:

If pressed on supply arrangements:

Background

GC contracting is subject to mature controls through laws, regulations and government-wide policies, directives and guidelines. SSC complies with the Financial Administration Act, the Government Contracts Regulations, the Directive on the Management of Procurement, the Policy on the Planning and Management of Investments, as well as trade agreements, court decisions, the Policy on Green Procurement, the Procurement Strategy for Indigenous Businesses as well as the Nunavut Directive.

Cyber security overview

Issue

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

Key facts

Key messages

If pressed on SSC’s role:

If pressed on roles of partners:

If pressed on SSC’s responsibility vs. That of CSE: 

If pressed on small departments and agencies (SDA’s):

If pressed on privacy:

If pressed on the cyber security event management plan (GC-CSEMP):

Background

Cyber security is a key dimension of the services provided by SSC. Cyber security incidents impact services to the public and trust in institutions.

The GC works continuously to enhance cyber security in Canada by preventing attacks through robust security measures, identifying cyber threats and vulnerabilities, and by preparing for and responding to cyber incidents.

The GC has improved its enterprise capacity to detect, defend and respond to cyber threats; centralized Internet access points; launched an enterprise security architecture program; and implemented a whole-of-government incident response plan. The latter, the Canada Enterprise Cyber Security Strategy, includes yearly risk management, talent development, third-party risk management and a new Purple Team to emulate techniques used by malicious threat actors.

The GC Cyber Security Event Management Plan sets an operational framework for the management of cyber security events that impact the GC’s ability to deliver services to Canadians. It outlines responsibilities across government for different levels of cyber events, with low-impact events being led by the responsible department and more serious events being led by teams coordinated by TBS and the Cyber Centre.

While the terms IT security and cyber security are often used interchangeably, they have distinct meanings in this field. IT security refers to the protections for physical IT assets and digital data, while cyber security refers to the protection of the transmission of data across cyberspace.

Successes in Enterprise Services

Issue

SSC focuses on consolidating, maintaining, and enhancing the foundational IT infrastructure that supports departments and agencies, enabling service delivery to Canadians.

Key facts

Key messages

If pressed on hosting:

If pressed on digital services:

If pressed on connectivity:

If pressed on cyber security:

Background

SSC was created in 2011 as the common digital service provider for most of the Government of Canada (GC). It work is fundamental to preventing service disruptions and protecting our cyber security.

Under its new strategic approach – One SSC to Deliver Digital Together –  SSC delivers its mission with a strong emphasis on the collaborative efforts needed across the GC to achieve the government’s Digital Ambition and foster collective accountability for its successful delivery.

As part of this approach, SSC has developed objectives across its four primary service categories: Hosting, Connectivity, Digital Services, and Cyber Security. These objectives are supported by strategic roadmaps as well as the department’s clients and partners. The roadmaps provide predictability and transparency to work being undertaken by summarizing a trajectory with plans and priorities over a three- to five-year period. The roadmaps explain where SSC is headed and the path it will take to get there.

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