Archived – Status report on transformational and major crown projects—2015 to 2016 Departmental Performance Report

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Public Services and Procurement Canada's Transformation of Pay Administration Initiative

Public Services and Procurement Canada's (PSPC) Transformation of Pay Administration Initiative, approved in July 2009, consists of two projects: the Pay Modernization and Consolidation of Pay Services Projects. Both projects were implemented to replace the Government of Canada's outdated pay administration system, renew business processes, and consolidate pay services in the Public Service Pay Centre in Miramichi, New Brunswick. These projects ensure the sustainability of pay administration and contribute to a more effective and efficient public service, offering better value for Canadians' tax dollars.

The Pay Modernization Project is replacing the 40 year-old pay system and modernizing business processes. The project was approved for implementation in November 2012 at a total cost of $186.6 million (including HST). The new pay system, based on PeopleSoft Payroll, is called Phoenix and provides seamless integration with the GC PeopleSoft Human Resources (HR) systems, increased automation and self-service functionality. In February 2016, Phoenix was rolled out to 34 departments and 120,000 employees. The second rollout was completed in April 2016 to 67 departments and 170,000 employees. With both rollouts completed, Phoenix is used by 101 departments and 290,000 employees. This is one of the largest IT-enabled transformational projects to launch in the federal government.

The Consolidation of Pay Services Project (phase 1), completed in December 2015, involved the establishment of 550 public service jobs, and the consolidation of 96,000 pay accounts from 46 organizations into the newly established PSPC Public Service Pay Centre in Miramichi, New Brunswick. The project was approved by Treasury Board (TB) for implementation in December 2011 at a total cost of $122.9 million (including HST). Having completed the integration of the GC's HR systems with Phoenix, Compensation Advisors in the Pay Centre will soon be able to increase their workflow and within the coming year double the number of accounts that they can manage. As a result, the Pay Centre will be servicing 191,000 employees from the 46 organizations once Phoenix is fully implemented.

Project outcomes

Outcomes will be measured in the year following the closeout of the initiative.

Monitored and measured outcomes

Industrial benefits

Transformation of Pay Administration Initiative

Pay Modernization Project: A multi-million dollar contract is in place with IBM Canada Ltd. for the provision of software licenses and professional services for the design and implementation of the new pay system. During the course of the project, there were some temporary positions required in IBM Canada and in PSPC offices located in the National Capital Area to support the solution implementation and business transformation activities.

Consolidation of Pay Services Project: The project created 550 new jobs in the new Public Service Pay Centre located in Miramichi, New Brunswick.

Sponsoring department

Public Services and Procurement Canada

Contracting authority

Public Services and Procurement Canada

Participating departments

This initiative was delivered by PSPC's Accounting, Banking and Compensation Branch in partnership with the Chief Information Officer Branch and Shared Services Canada. Although there were no participating departments / agencies in the initiative's delivery, the following are the primary stakeholders:

Prime contractor

Major subcontractors—Pay Modernization Project

Project phase

Pay Modernization Project: After completing its definition phase, the Pay Modernization Project began its implementation phase in December 2012. Implementation was completed in April 2016. Project close-out anticipated in March 2017.

Consolidation of Pay Services Project: After completing its definition phase, the Consolidation of Pay Services Project began its implementation phase in December 2011. Implementation was completed in December 2015.

Major milestones—Pay Modernization Project

Project definition phase

Project implementation phase

Major milestones—Consolidation of Pay Services Project

Project definition phase

Project implementation phase

Progress report and explanation of variances

In July 2009, approval was received for the "initiative to fix the pay system" (Transformation of Pay Administration Initiative) which is comprised of the Pay Modernization Project and the Consolidation of Pay Services Project.

In December 2011, approval was received for the implementation of the consolidation of pay services project for $122.9 million. In November 2012, approval was received for the implementation of the Pay Modernization Project for $186.6 million. The total project implementation approval for the Transformation of Pay Administration Initiative is $309.5 million.

Pay Modernization Project (in progress to be completed March 2017)

As of March 2016, the Pay Modernization Project was on scope and on budget having successfully completed all testing and transition activities, and having implemented the first rollout of the Phoenix solution in February 2016 reaching 123,701 public servants. In April 2016, the project moved forward with the second Phoenix rollout reaching over 170,081 public servants. However, this initiative has faced challenges as many public servants experienced issues with their pay. Employees deserve to be paid accurately and promptly, and PSPC is working very hard to resolve pay problems and ensure that the public service has a reliable and effective pay system. This includes resolving challenges in the Pay Centre in Miramichi to process pay within service standards, enhancing Phoenix system functionality, providing additional training and education, and supporting users through the transition to steady state (that is when pay requests are processed in an efficient, consistent manner with minimal errors and the department is meeting its service standards). The Department is working with departments, unions and stakeholders to address and resolve any issues as they emerge.

Consolidation of Pay Services Project (completed as of December 2015)

The consolidation of pay services project successfully completed its project scope on time and on budget in December 2015. The project successfully transferred 92,000 pay accounts to the Public Service Pay Centre in Miramichi, NB, hired 550 public service employees, and established partnerships with local colleges to ensure ongoing professional development and recruiting. The project implemented a number of changes as part of continuous improvement, including a new tiered service delivery model to match case complexity with experience and specialization, and an enhanced case management tracking tool to handle the increased workload that was anticipated in spring 2016 with Phoenix rollouts. In addition, the project completed its analysis of consolidating pay administration services from departments not using the GC Human Resources Management System (PeopleSoft) and will be exploring next steps in 2016 to 2017.

Transformation of Pension Administration Initiative—Canadian Armed Forces Pension Modernization Project

In December 2011, the Department of National Defence (DND) received approval to transfer the administration of the Canadian Armed Forces' (CAF) two pension plans, one for Regular Forces and the other for Reservists, to Public Services and Procurement Canada (PSPC) using the Government of Canada pension solution. Subsequently, PSPC and DND established the joint Government of Canada Pension Modernization Project-Canadian Forces Superannuation Act to develop and deliver the business processes, services transformation and system components for Canadian Armed Forces pension administration. The project will also develop a Government of Canada Pension Centre satellite office in the National Capital Area. 230 DND pension staff will be transferred to PSPC along with 40 PSPC pension employees to provide pension services to Canadian Armed Forces members out of the new Pension Centre.

Since 2007, PSPC has been engaged in the Transformation of Pension Administration Initiative. In 2013, modernization of the infrastructure supporting public service pension administration was completed. The fragile, obsolete, 40-year-old pension system was replaced with commercial software products and streamlined business processes. In addition to a more efficient system and improved services for public sector employees, retirees and their families, the delivery of all pension services to public service pension plan members was centralized in the Government of Canada Pension Centre in Shediac, New Brunswick.

The project delivered:

The new pension solution is adaptable and scalable, and capable of supporting multiple pension plans, thereby providing the potential for standardized and efficient pension services across the Government of Canada.

In July 2014, the Transformation of Pension Administration Initiative successfully leveraged the new pension solution and transferred the administration of Royal Canadian Mounted Police (RCMP) pension plans to PSPC. This project, the culmination of four years of work, demonstrated the multi-plan capabilities of the pension solution.

Today, pension administration services for all active and retired public service pension plan and RCMP pension plan members are delivered by the Pension Centre, with support from PSPC's Document Imaging Centre in Matane, Quebec, and in partnership with the Compensation Sector in the National Capital Area.

When the transfer of CAF pension administration to PSPC is completed in December 2016, PSPC will serve more than 800,000 public service, RCMP, and Canadian Armed Forces active and retired clients and their beneficiaries.

Project outcomes

Industrial benefits

A multi-million dollar contract was awarded to Hewlett Packard Enterprise Services Canada (formerly EDS) for the provision of commercial-off-the-shelf software systems. It also included professional services for the design, implementation, and maintenance of the new system, and for business processes and services transformation. In the long term, the project will contribute to the delivery of efficient operations and improved client service from a new pension centre based in the National Capital Area.

Sponsoring department

Department of National Defence

Contracting authority

Public Services and Procurement Canada

Participating departments

Prime contractor

Major subcontractors

Project phase

The Canadian Armed Forces Pension Modernization Project is currently in its execution phase.

Major milestones

Project definition phase

Project approval – completed December 2011

Project implementation phase

Progress report and explanation of variances

A feasibility study was completed in January 2010 at which time project completion was planned for April 2015. Approval was received to transfer CAF pension administration to PSPC in December 2011, six months later than planned.

As a result, a re-profiling of funds and a six-month extension were approved in May 2013, with a revised completion date of October 2015.

In June 2014, DND received approval to re-profile funds for phase I activities and extend the project to October 2016 because of the complexity of the Reserve Force plan.

The pension project schedule was adjusted in fall 2015 because of infrastructure delays and the need to coordinate the implementation with the Pay Modernization Project. The new completion date is December 2016 and the project scope and budget remain unchanged. Release 1.0 detailed design and development and vendor testing phases are complete. Data conversion activities are also in progress and on track.

Detailed design for Release 2.0 is also complete and development and vendor testing were completed in July 2016. Release 2.0 data conversion activities are also underway. The project will be completed as planned in December 2016 and will be delivered on budget and scope.

Business transformation activities are underway including the establishment of a Pension Centre satellite office in the National Capital Area.

Long Term Vision and Plan for the Parliamentary Precinct

Public Services and Procurement Canada (PSPC) is the custodian of the buildings and grounds within the area surrounding Parliament Hill, known as the Parliamentary Precinct. Part of this important mandate is to maintain the historical and architectural integrity of these assets and ensure client service excellence.

In 2007, in conjunction with the Parliamentary Partners – the Senate, the House of Commons and the Library of Parliament – PSPC updated the Long Term Vision and Plan (LTVP). The updated LTVP provides a coordinated long-term approach to rehabilitating the heritage buildings in the Parliamentary Precinct (including the Parliament Buildings), meeting the accommodation requirements of Parliament, and providing a secure and welcoming environment for parliamentarians, staff and visitors.

The LTVP confirms the vision and guiding principles for future development in the Parliamentary Precinct. The vision ensures that changes within the Precinct meet the evolving functional needs of parliamentarians and other stakeholders while respecting the historic, environmental and symbolic primacy of the site. The guiding principles are expressions of values and attitudes towards development within the Precinct, and they set out essential areas for consideration when change is contemplated. The vision and the guiding principles jointly establish a qualitative context for project evaluation and decision making.

The LTVP includes an Implementation Framework designed to provide greater flexibility in planning and implementation and support more accurate costing and project timelines. This Framework established a strategy, consisting of a series of cyclical five-year programs.

Each five-year program is composed of four components:

  1. the Major Capital Program
  2. the Recapitalization Program
  3. the Planning Program
  4. the Building Components and Connectivity Program

The Major Capital Program of the current five-year program of work focuses on the rehabilitation of major buildings in the Parliamentary Precinct, including the West Block, Visitor Welcome Centre—Phase 1, Wellington (180 Wellington), East Block 1867 Wing Exterior, and Senate Interim Accommodations at the Government Conference Centre (2 Rideau).

The Recapitalization Program delivers work required to preserve the buildings and address health and safety issues and to reduce overall expenditures while ensuring the ongoing operations of occupied buildings. Projects are permanent interventions to stop or reduce the continued deterioration, including urgent building repairs to ensure the ongoing viability of the buildings.

The Planning Program focuses on the development of master plans to guide project planning and preparatory work for future projects, including the development of plans and cost estimates for projects in the next five-year program. It provides overall coordination between active projects to ensure that they dovetail and contribute to the broader objectives of the LTVP vision and guiding principles.

The Building Components and Connectivity (BCC) Program delivers precinct-wide projects that provide the infrastructure and services to implement the connectivity requirements for the Precinct. Components include building fixtures, furnishings and equipment. Connectivity includes interconnected systems for networking, security, multimedia and other electronic communications. BCC is installed as part of each building project.

In early 2014, PSPC established the LTVP Program Management Office (PgMO) to provide centralized coordination as a key element in the LTVP's governance, oversight and management framework. The program of work of the PgMO includes life cycle management, parking and traffic management, reporting and information management, and special projects in response to evolving program demands.

Project outcomes

The LTVP provides clear direction for the renewal of Canada's parliamentary buildings over a long-term planning horizon. It focuses on achieving three key objectives:

  1. ensuring that the physical and heritage integrity of the existing buildings serve Parliament's needs now and into the future
  2. ensuring that Parliamentary accommodations are capable of meeting changing requirements
  3. ensuring that the overall design of the Precinct is exemplary in terms of its urban and environmental design considerations

The benefits of a well-conceived and well-executed LTVP will be substantial. When the work envisioned is complete, the Parliament Buildings will stand not only as proud symbols of Canadian heritage, but as the hub of a parliamentary system of government equipped to handle the demands of a growing, dynamic nation in a rapidly changing world.

Industrial benefits

Several multi-million dollar contracts will be awarded over a multi-year period for building construction, information technology systems, multimedia systems, furniture and other equipment. The five major crown projects are expected to generate over 25,000 jobs.

Sponsoring department

Public Services and Procurement Canada

Contracting authority

Public Services and Procurement Canada

Participating departments

Parliamentary partners

Prime contractor

West Block rehabilitation

Visitor Welcome Centre—Phase 1

Wellington Building rehabilitation

Government Conference Centre building rehabilitation

East Block building 1867 wing exterior rehabilitation

Major subcontractors

West Block rehabilitation

Visitor Welcome Centre—Phase 1

Wellington Building rehabilitation

Construction Managers:

Government Conference Centre building rehabilitation

East Block building 1867 wing exterior rehabilitation

Project phase

The LTVP encompasses numerous major capital, recapitalization and planning projects at different project phases at any one time. The Major Capital Projects are described below:

West Block rehabilitation

The West Block is the oldest of the Parliament Buildings located on Parliament Hill. This four-storey building was built in three phases, starting in 1859 and completed in 1906. The rehabilitated West Block will provide an interim House of Commons Chamber and support spaces, as well as offices necessary for the functioning of the offices of the Prime Minister, House Officials and Officers, Party Leaders and Party Whips.

In 2015 to 2016, construction of the courtyard infill and north court structures progressed, while the interior structural upgrades were completed. Mechanical and electrical infrastructure was installed and work began inside the building on interior finishes such as plastering in corridors. Masonry and roof rehabilitation work continued throughout the year. By March 31, 2016, the overall project delivery met its target of 72% completion. The rehabilitation of the heritage building and the construction of the interim House of Commons chamber in the courtyard are scheduled to be completed in 2017.

Visitor Welcome Centre—Phase 1

The Visitor Welcome Centre—Phase 1 will be a newly constructed, multi-level, underground facility which will support the West Block's security and operational requirements, including security screening and scanning, material handling support services, and interim visitor services. This facility will provide a new public entrance to the West Block.

In 2015 to 2016, design was approved by the stakeholders and the major excavation activities advanced significantly. Construction of the building began late in the year with work on the concrete structure, which continued throughout the fiscal year. By March 31, 2016, the overall project delivery met its target of 54% completion. The construction of the Visitor Welcome Centre—Phase 1 is scheduled to be completed in 2017.

Wellington building rehabilitation

The Wellington Building, located at 180 Wellington Street, across from Parliament Hill, was built between 1925 and 1927 as the headquarters of the Metropolitan Life Insurance Company. The Wellington Building is being rehabilitated to replace obsolete building systems and meet modern building code requirements. Once completed, this building will house 10 parliamentary Committee Rooms and 70 parliamentary offices to support Parliament's requirements.

In 2015 to 2016, the building envelope, landscaping work and the office fit-up were fully completed. Sequential floor handover and commissioning began mid-year, while the multimedia and network equipment for the building as well as communication technology devices were also installed to ensure proper functionality. All key office and building-related furniture deliveries and installations were begun. By March 31, 2016, the overall project delivery was at 95% completion, exceeding its target of 92%. The Wellington Building Rehabilitation Project is scheduled to be complete in spring 2016, with occupancy expected later in the year. 

Government Conference Centre rehabilitation

The Government Conference Centre (GCC) occupies a prominent location in downtown Ottawa at 2 Rideau Street, a short distance from Parliament Hill. Senate functions historically located in the Centre Block will be relocated to the GCC, to accommodate the rehabilitation of Centre Block. The GCC will be rehabilitated to accommodate an interim Chamber for the Senate, three Committee Rooms, along with the Senate's Leadership and Legislative functions for the duration of the Centre Block Rehabilitation. Public Services and Procurement Canada will carry out significant interior renovations, including the full replacement of key building systems.

In 2015 to 2016, the base building and fit-up design, along with the abatement and demolition were completed and the seismic upgrades progressed. Also, the design packages, specifically, mechanical and electrical and exterior masonry rehabilitation, were issued for tender. By March 31, 2016, the overall project delivery was at 31% completion, exceeding its target of 28%. The GCC Rehabilitation Project is scheduled to be complete in 2018.

East Block 1867 wing rehabilitation

The East Block on Parliament Hill was built in two stages. The first stage, which was completed in 1867, included the main west and south wings (referred to as the 1867 Wing). Then, in 1910, a second wing was added to the east. Today's conservation and rehabilitation work aims to preserve the exterior envelope of the 1867 Wing. Rehabilitation of the East Block to meet current and future needs, while respecting the building's heritage character, will be implemented in two major phases of construction.

In 2015 to 2016, the design, construction planning and preparation of construction documents continued to progress. The construction management advisor contract was awarded in late fall of 2015 and the design phase was almost fully completed by fiscal year-end. Investigations and screening activities of the existing heritage building were undertaken. By March 31, 2016, the overall project delivery met its target of 15% completion. The construction work for rehabilitation of the 1867 Wing is expected to be complete in 2022.

Major milestones

Long Term Vision and Plan

West Block building rehabilitation

Visitor Welcome Centre—Phase 1

Wellington building rehabilitation

East Block building rehabilitation (1867 wing)

Government Conference Centre building rehabilitation

Progress report and explanation of variances

Over the life of the LTVP, Public Services and Procurement Canada has completed 20 key projects, achieving substantial time and cost savings that have enabled the Department to, for example, advance the completion date for West Block rehabilitation by three years (to 2017). 

Recently completed Long Term Vision and Plan projects

Update to the Long Term Vision and Plan
Long Term Vision and Plan project Target completion Final completion
Perimeter security project 2013 2013
East Block 1867 wing – Northwest tower 2013 2013
Sir John A. Macdonald building rehabilitation 2015 2015
Variances of the budget

All five Major Crown Projects remain within the approved budgets, and the projects are expected to be completed within their respective amounts.

Variances of the major milestones

There are currently no variances to the major milestones, with the positive exception of advancing the planned completion of the West Block Project by three years. An active management approach has been instituted to avoid project delays, and lessons learned have been captured and are being applied to subsequent projects in the LTVP Program.

National Defence Headquarters Carling Campus Project

This project is to upgrade and refit the buildings at Carling Campus, enabling DND to consolidate a significant portion of its accommodations, currently located in the downtown core, to a single, suburban crown-owned location by March 2019.

Project outcomes

This consolidation project will result in important savings/cost avoidance for Canadians. The original business case prepared at the time of the purchase identified savings to the Crown in the range of $600 million over a 25-year period based on the reduction of downtown core leases and movement to a suburban location. As a result, Public Services and Procurement Canada's allocation of costs for lease space is reduced by $30 million/year starting in 2016 to 2017. Following a further review of costs and savings, the purchase of the campus represents overall savings and cost avoidance of approximately $750 million over the status quo.

This project provides a stable, sustainable, less expensive location with enhanced inter-allied information transfer and communications, and strengthened security posture and business transformation. It will provide office space to accommodate a three phased migration of up to 8,500 DND Team members who will consolidate to the Campus from other National Capital Area leases starting in fall of 2016 with full mitigation expected to be completed by March 2019.

This is a business investment that will generate significant savings and operational efficiencies over the long term. This consolidation will also enable DND to achieve $160 million in cost avoidances by reducing security costs for commissionaires, minimizing churn rate or re-fit as a result of lease terminations, in addition to achieving operational efficiencies. Importantly, the Carling Campus offers DND the capacity to enable and accelerate their transformation agenda.

Industrial benefits

The Canadian construction industry in the Ottawa region (including small and medium enterprises) will benefit from this project as the service provider (Brookfield Global Integrated Solutions), through the construction manager (EllisDon), will solicit bidders for the work to be done at the Campus using transparent processes.

Sponsoring department

Public Services and Procurement Canada

Contracting authority

Participating departments

Prime contractor

Brookfield Global Integrated Solutions

Major subcontractors

Project phase

The project is in the delivery stage of the National Project Management System and has received two of the three planned expenditure authorities.

Major milestones

Inception stage of the National Project Management System

Identification stage of the National Project Management System

Delivery stage of the National Project Management System

Close-out stage

Progress report and explanation of variances

The Carling Campus Project remains on scope and on budget as well as on time in that the project schedule continues to call for the last move in to be completed by March 31, 2019, and project close-out to be completed by March 31, 2020.

In the June 2015 Treasury Board submission, the project identified a nine-month delay in the expected phase I move in date. This extension will postpone the first move of the National Defence team members from December 2015 to the fall of 2016. At this time, the phase I delay does not impact the overall budget, the other phases or the final project end date of 2019 to 2020. The delay to phase I fit-up is the cumulative effect of three distinct situations:

  1. Structural deficiency in phase I buildings – As a custodian, Public Services and Procurement Canada (PSPC) identifies and undertakes recapitalization projects related to the life cycle of its buildings. The 2010 pre-purchase condition reports identified that window integrated glazing units should be replaced as they fail. The standard mode of failure for glazing units is related to the loss of seal integrity that results in moisture entering the double-glazed units. This failure mode results in loss of thermal efficiency and "clouding" of the glass. After the units were determined to be at risk of structural failure, the approach to replace them as their seals fail was deemed inappropriate; whole units had to be replaced to ensure structural integrity. However, a 2013 to 2014 study done by a third party architectural firm determined that the exterior curtain wall system (windows and aluminum frame) presented a serious structural deficiency. An Investment Analysis Report identified three options: Status quo to replace units as they fail; structural modifications of existing system to support units; or full replacement of curtain wall system.
    In February 2015, PSPC concluded that the replacement of the curtain wall system is the best value and lowest cost solution. As well, the full replacement of curtain wall system could be undertaken at the same time as seismic upgrades. The construction work for the repair of structural deficiency in phase I buildings is responsible for a two-month delay in the Carling Campus refit project as it would be more costly and take longer to complete the work once DND moved in due to security restrictions, disruption to DND operations, and providing swing space for DND.
  2. The process that Brookfield Global Integrated Solutions, the service provider, followed for the requests for proposals and for selecting the main subcontractors for the project, a design consultant firm as well as a construction manager took longer than anticipated, due to the extension of the tendering process and a longer award process. This will not reoccur in the future as the two primary sub-consultants are now engaged, a fully integrated schedule for phase I is complete, performance of sub-consultants are monitored by Brookfield Global Integrated Solutions, and emerging issues are discussed at weekly meetings.
  3. A five-month delay in the preparation of the construction tender packages for the fit-up of phase I Buildings eight and nine was the result of the selected design consultant's inability to staff quick enough to meet the project's requirements. Performance of the consultant is being addressed by Brookfield Global Integrated Solutions and the award of the phase II design contract is dependent on the consultant's demonstration of adequate resources to deliver this portion of the work.

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