Public Works and Government Services Canada Procurement Plan
Fiscal Year 2010-2011

Introduction

Public Works and Government Services Canada (PWGSC) plays an important role in the daily operations of the Government of Canada by delivering high-quality services and programs that meet the needs of federal organizations; and ensuring sound stewardship on behalf of Canadians.

Over the last three fiscal years (2007-2008, 2008-2009 and 2009-2010), PWGSC spent an average of approximately $2.7 billion annually on a wide range of goods and services to support its own operations.

As part of its Management Accountability Framework, PWGSC has established a sound governance regime and processes to ensure that its procurement activities are managed effectively.

An annual procurement planning exercise is conducted as part of the Department's business planning cycle and results in the development of the PWGSC Procurement Plan.

PWGSC Procurement Planning

The PWGSC Procurement Plan is designed to identify and assess projected procurement activities and provide the Department with strategic information on the purchases and procurements PWGSC makes to fulfill its mandate and meet its operational requirements. As such, the Plan does not include procurements made by the Acquisitions Branch as a common service provider on behalf of other government departments.

The Procurement Plan includes a profile of PWGSC spending in various commodity areas which facilitates the identification of spending trends and areas to improve procurement efficiency. The Plan also provides key information for comparative exercises, environmental scanning and best practices purposes.

As part of the procurement planning process, PWGSC branches and regions are required to provide planned expenditures categorized by key spending categories (commodities) for the current and two subsequent fiscal years (FY), thus providing a strategic three-year outlook. These plans are used by individual branches and regions and are also consolidated and reviewed annually at the departmental level by the Business Operations Committee.

As a result of improved procurement planning, the Department has been able to better plan its purchases and standardize its requirements in high spending areas such as IT equipment and services. These strategies, combined with others such as Requests for Volume Discounts and maximizing the use of consolidated procurement tools, have generated ongoing procurement efficiencies at PWGSC.

While this version of the Procurement Plan provides only a summary of original contracts over $1 million issued in FY 2010-2011, the 2011-2012 Procurement Plan, scheduled to be posted in May 2011, will include comprehensive descriptions and estimated values of PWGSC's projected major procurement activities.

Procurement at PWGSC

PWGSC has an established departmental procurement governance structure, led by a senior level committee, to strategically manage procurement spending, risks and efficiencies at the departmental level.

An integral part of the Department's procurement regime is a Contract Management Framework designed to ensure high quality, consistent and compliant contract administration. The Framework includes: controls; risk management; policies, guides and procedures; tools and templates; management information systems; training; monitoring and reporting. The Framework is complemented by ongoing communication with managers and personnel responsible for contracting and materiel management functions throughout the Department to ensure awareness of processes and procedures and various roles, responsibilities and accountabilities. This Framework is a key management tool to ensure that contracting and materiel management activities at PWGSC are conducted in a fair, open and transparent manner in accordance with all applicable rules, policies and regulations, resulting in value for money and sound stewardship of public funds.

At PWGSC, fairness, openness, transparency and process integrity are also supported through the Department's Fairness Monitoring Program which provides independent assurance that the PWGSC's procurement activities are conducted in a fair, open and transparent manner. The Department also effectively manages risks related to procurement through the use of robust risk assessment processes and tools.

In terms of procurement efficiencies and economies of scale, PWGSC uses, where possible, pre-competed procurement instruments and methods of supply such as Standing Offers and Supply Arrangements. The Department also imposes the mandatory use of Standing Offers for 12 major commodities including: Professional Services; Office Supplies; Furniture; Temporary Help; Computer Equipment; Motor Vehicles; Clothing; and Management Support Services. PWGSC also has initiatives in place to standardize and optimize its IT hardware and software purchases where possible to ensure best value at the lowest cost.

As the main purchasing agent for the Government of Canada, PWGSC demonstrates leadership and innovation in greening government through integration of environmental performance considerations into its procurement decision-making processes. As per the Department's Policy on Green Procurement, environmental performance is considered along with other factors, such as cost, performance, quality and availability. This helps PWGSC and the Government of Canada achieve environmental benefits, including reduction of air pollutants and greenhouse gas emissions, improvement of energy, water and other resource efficiency, and reduction of ozone-depleting substances.

PWGSC Procurement Activity

The type of goods and services PWGSC procures is relatively consistent. The following list represents the major commodity areas and sub-commodity groups for PWGSC contracting:

• Real Property, Construction and Engineering Services
• Professional Services – comprised of Advisory Services, IT Professional Services and Temporary Help Services
• Information Technology Goods – including Software and Maintenance, IT Hardware and Telecommunications and Voice Equipment
• Logistics – comprised of Shipping, Freight and Logistics Services
• Utilities and Telecommunication Services – including Energy, Telecommunications and Water and Sewage
• Administrative Products, Equipment and Supplies – including Furniture and Office Equipment and Supplies.

PWGSC Spending Trends

The table below presents a high level view of PWGSC expenditures in major commodity groups for FY 2010-2011 through FY 2012-2013. The expenditures include new procurement and expenditures for existing contracts and Standing Offers.

Table 1: Major Commodity Groups

Major Commodity Groups	Projected ($ million)
	2010/2011	2011/2012	2012/2013
Real Property	1469.7	1429.9	1423.3
Construction & Engineering Services	330.7	297.6	311.4
Professional Services	186.8	183.5	184.9
Information Technology Services	130.7	131.9	133.6
Utilities and Telecommunication Services	71.0	68.5	68.8
Information Technology	61.7	62.9	63.7
Logistics	53.4	48.9	50.6
Others	65.4	65.8	63.8
Total	2369.4	2289.0	2300.1

The top commodities within PWGSC are Real Property and Construction and Engineering Services which account for approximately 75 per cent of the Department's annual expenditures. Professional Services and Information Technology Services follow, representing approximately eight per cent and five per cent of annual expenditures, respectively. Projections in major commodity groups are expected to remain constant until FY 2012-2013.

The table below presents a high level view of PWGSC's expenditures of specific commodities for FY 2010-2011 through FY 2012-2013. These specific commodities represent sub-categories which fall under some of the major commodity groups found in Table 1 (Excluding Real Property, Construction & Engineering Services). The expenditures include new procurement and expenditures for existing contracts or Standing Offers.

Table 2: Specific Commodities

Commodities	Projected ($ million)
	2010/2011	2011/2012	2012/2013
IT Professional Services	130.0	131.2	132.9
Advisory Services	132.3	131.9	132.9
Energy	63.9	61.6	62
Shipping	51.7	47.1	48.8
Software and Maintenance	34.2	33.5	33.9
Temporary Help Services	18.5	17.3	17.4
IT Hardware	19.3	21.2	21.6
Travel	16.8	16.3	16.4
Furniture	11.5	12.2	11.5
Misc. Professional Services	7.4	5.9	6.0
Other	83.5	83.1	82.0
Total	569.1	561.3	565.4

For FY 2010-2011, the planned spending for the top two commodities, IT Professional Services and Advisory Services, is anticipated to be $262 million. This represents 46 per cent of the remaining planned expenditures. The spending in these commodities is forecasted to remain constant until FY2012-2013.

PWGSC 2010/2011 Contracting Highlights

The table below presents the number of original contracts over $1 million awarded by PWGSC's Acquisitions Branch on behalf of the Department during the 2010-2011 fiscal year, as of December 31, 2010. The numbers represent contracts for which PWGSC is a client, including government-wide contracts.

Table 3: New contracts awarded for PWGSC in 2010-2011

Procurement Category	Contracts	Total Value ($ million)
IT and Telecom Services	22	1,185.40
Construction	95	411.66
Fuels, Lubricants, Oils and Waxes	7	155.78
Environmental Services	27	105.70
Medical Equipment, Drugs and Supplies	6	54.53
Telecom Equipment	7	20.00
Architect and Engineering Services	9	19.24
IT Equipment, Software, Supplies and Support	9	15.23
Professional and Administrative Services	5	14.28
Office Supplies and Devices	3	13.65
Communications and Marketing Services	2	13.05
Transportation, Relocation and Freight Services	2	8.97
Office Furniture	1	6.65
Engines, Turbines and Components	3	6.00
Vehicle and Equipment Rentals	1	5.00
Photographic Equipment	3	4.00
Maintenance and Repair Services	2	2.48
Chemicals, Chemical Products and Gases	1	1.70
Water Purification and Sewage	1	1.61
Educational and Training Services	1	1.50
Food and Beverages	1	1.50
Hand Tools	1	1.50
Electric Wire and Power and Distribution Equipment	1	1.48
Construction and Building Materials	1	1.40
Material Handling Equipment	1	1.07
Total	212	2,053.38

* Source: Acquisitions Information System

Further Information

Statistics on purchases and contracts conducted by departments and agencies are available publicly as part of the Government of Canada's annual Purchasing Activity Report. This report is used to provide statistical analysis of the processes and tools through which government contracting is conducted. To view the 2009 Purchasing Activity Report, please visit the following web pages:

• 2009 Purchasing Activity Report
• Purchasing Activity Report 2009 - Departmental Details

For current PWGSC-issued open competitive solicitations, please refer to the Government Electronic Tendering System (GETS) accessible through the MERX Web site.

Buyandsell.gc.ca is the Government of Canada's new procurement Web site for government buyers and industry suppliers. It is the main location to find information about doing business with the Government of Canada.