Order-in-council - procurement

Introduction

On September 1, 2015, Order-in-Council (OIC) 2015-1071 came into force, reaffirming and expanding the mandate of Shared Services Canada (SSC). The intent of this OIC was to ensure that SSC is the sole provider of services relating to its mandate to a critical mass of departments and agencies in order to assure the integrity of the government’s information technology (IT) infrastructure. The OIC established 41 small departments and agencies as mandatory clients for a sub-set of services related to email, networks, data centres and end-user information technologies (for example, desktop computers, laptops, office software and printers).

Strategic context: challenges and opportunities

• Prior to September 1, 2015, SSC had the mandate and enabling-procurement authorities to provide services related to email, data centres and networks to its 43 partner organizations, and optionally to other departments and Crown corporations. SSC also provided a range of mandatory services related to end-user information technologies to its partners and clients. SSC obtained this authority through the Shared Services Canada Act (SSC Act), OICs and the Treasury Board Contracting Policy.
   
  
• The original OICs facilitated a transfer of people and funding from SSC’s partners, as well as a partial transfer of procurement responsibilities and resources from Public Works and Government Services Canada (PWGSC) to SSC. SSC’s partners were estimated to represent approximately 95% of the government’s IT infrastructure spending, with the remainder of smaller departments and agencies representing the other 5%. As some departments continued to depend on PWGSC for the procurement of IT-related goods and services, PWGSC continued to own and maintain procurement instruments (that is, contracts, standing offers and supply arrangements) related to the purchase of IT goods and services. This situation resulted in considerable duplication of effort between PWGSC and SSC, as well as confusion for client departments, reduced efficiencies in the procurement process, an inconsistent approach to supply chain integrity and potentially compromised savings opportunities by a divided government buying power.
  
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• As a result of the expanded mandate, SSC is undertaking an increased volume of procurement transactions. This situation will continue until options are developed to allow the Minister responsible for SSC to delegate his/her authority to other ministers (see note on Procurement Authorities).

Strategic direction

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Next steps

• SSC will continue to reach out to and support its new clients on the changes brought about by the OIC while striving to address unique situations and requirements. SSC has developed an interpretation document to help partners and clients understand the changes brought about by the new OIC.
  
• SSC will continue to inform its existing partners and new mandatory clients about the implications of the OIC and the transition process.

Key messages

• As of September 1, 2015, SSC was designated via an OIC as the primary provider of IT goods and services to federal departments and agencies.
  
• These new authorities increase efficiencies in the procurement process, resulting in a consistent approach to supply chain integrity and the enhanced security of an enterprise-wide network for the Government of Canada.
  
• In addition, SSC now has the ability to open its procurement tools to other jurisdictions, including provinces, territories and municipalities. 

Content Responsibility
Program Lead: Patrice Breton, Director General, Procurement and Vendor Relations, Corporate Services
Responsible SADM/ADM: Elizabeth Tromp, A/SADM, Corporate Services, and Chief Financial Officer