Archived – Status report on transformational and major crown projects—2016–17 Report on Plans and Priorities

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Public Services and Procurement Canada's transformation of pay administration initiative

Public Services and Procurement Canada's Transformation of Pay Administration Initiative, approved in July 2009, consists of two projects, the Pay Modernization and Consolidation of Pay Services projects. Both projects are being implemented to replace the Government of Canada's outdated pay administration system, renew business processes, and consolidate pay services in the Public Service Pay Centre in Miramichi, New Brunswick.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 will 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 45-year-old pay system with the PeopleSoft payroll system, the new pay system, called Phoenix, successfully completed its first rollout in February 2016, and will be implementing its second rollout in April 2016. Phoenix will provide seamless integration with the Government of Canada Human Resources Management System (My GCHR) - PeopleSoft, will renew the delivery of pay services by streamlining and modernizing business processes and will provide increased automation and self-service.

The Consolidation of Pay Services Project successfully completed the transfer of 92,000 pay accounts from 46 departments and agencies using the Government of Canada Human Resources Management System - PeopleSoft to the Public Service Pay Centre in Miramichi, New Brunswick. The project completed its closeout in December 2015. After having successfully established the Pay Centre and created 550 public service jobs in the Miramichi region, a total of 184,000 public servants will be receiving their pay services from the Pay Centre once Phoenix is fully rolled out.

Once completed, the Transformation of Pay Administration Initiative will result in Government of Canada-wide annual savings from efficiencies in pay administration of over $70 million starting in 2016–17.

Project outcomes

Overall, the initiative will ensure the sustainability of pay administration, generate savings from efficiencies in pay administration, contribute to a more effective and efficient public service, and offer better value to Canadians.

Monitored and measured outcomes

Industrial benefits

The Transformation of Pay Administration Initiative will ensure that, as one of Canada's largest payroll providers, the Government of Canada has a modern system able to implement payroll industry best practices.

Sponsoring department

Public Services and Procurement Canada

Contracting authority

Public Services and Procurement Canada

Participating departments

This initiative is being delivered by Public Services and Procurement Canada (Accounting, Banking and Compensation Branch in partnership with the Chief Information Officer Branch) and Shared Services Canada. Although there are no participating departments / agencies in the Initiative's delivery, all departments and agencies receiving pay services are involved and affected as primary stakeholders:

Prime contractor

Major subcontractors—Pay modernization project

Project phase

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, general approval was received for the "Initiative to Fix the Pay System" (Transformation of Pay Administration Initiative) which was comprised of the Consolidation of Pay Services Project and the Pay Modernization Project.

In December 2011, implementation began for the Consolidation of Pay Services at a cost of $122.9 million and in November 2012, the Pay Modernization Project began at a cost of $186.6 million.

Pay modernization project (in progress)

As of March 2016, the Pay Modernization Project is expected to be 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 affecting 123,701 public servants. In April 2016, the project is moving forward with the second Phoenix rollout impacting a further 170,081 public servants. The project is ensuring that transition is successfully completed, such that the new pay system becomes part of regular operations, and receives ongoing maintenance and support; the project will be completing its closeout activities in April 2016.

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 Public Service Pay Centre was set up with 550 new employees, in Miramichi, New Brunswick. In total, 92,000 pay accounts were transferred from departments to the new Pay Centre. Partnerships with local colleges were established to ensure ongoing professional development and recruiting. The Pay Centre has continuously improved, implementing both a new service delivery model to address various challenges as well as an enhanced case management tracking tool to handle the increased workload during Phoenix rollouts. Once Phoenix is fully rolled-out, the Pay Centre will be able to handle the total of 184,000 pay accounts. In addition, the project completed an analysis of consolidating pay administration services from departments not using the GC Human Resources Management System (PeopleSoft) and will be exploring next steps in 2016–17.

Transformation of Pension Administration Initiative—Canadian Armed Forces pension modernization project

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

Since 2007, Public Services and Procurement Canada has been engaged in the Transformation of Pension Administration Initiative. In 2013, modernization of the infrastructure supporting the public service pension administration was completed. The obsolete, legacy pension system was replaced with commercial software products, and streamlined business processes were introduced. 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 a robust, sustainable pension system; consistent, industry standard services; multi-portal access; greater accuracy and timeliness in processing transactions and payments; and government-wide savings. 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, also as part of the Transformation of Pension Administration Initiative, the new pension solution was configured and the administration of Royal Canadian Mounted Police (RCMP) pension plans was moved from the private sector to Public Services and Procurement Canada. 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 our department's Document Imaging Centre in Matane, Quebec, and in partnership with our Compensation Sector, located in the National Capital Region.

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

Project outcomes

Monitored and measured outcomes

Industrial benefits—Transformation of Pension Administration Initiative

The Transformation of Pension Administration Initiative continues to ensure that, as one of Canada's largest pension administrators, the Government of Canada has a modern system able to implement pension industry best practices.

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 and their integration. The contract 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 implementation phase

Progress report and explanation of variances

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: the Major Capital Program, the Recapitalization Program, the Planning Program, and 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, Wellington (180 Wellington), East Block 1867 Wing Exterior, and Senate Interim Accommodations at the Government Conference Centre (2 Rideau). In addition, PSPC is constructing a new building, the Visitor Welcome Centre – Phase 1, to support the security and operational requirements of the West Block.

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, Public Works and Government Services Canada (PWGSC) 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; and
  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

Government Conference Centre building rehabilitation

East Block building 1867 wing exterior rehabilitation

Project phase

The LTVP encompasses numerous and varied individual 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 West Block provides accommodation for Members of Parliament, parliamentary functions and support.

In 2015–16, progress was made on the construction of the courtyard infill and north court structures as well as on the installation of mechanical and electrical infrastructure. Also, work on masonry and roof rehabilitation was well advanced and interior structural upgrades were completed. By March 31, 2016, the overall project delivery met its completion target of 70%.

In 2016–17, construction of the courtyard infill and north court structures will be complete and the installation of the glass roof will be underway. Work on the exterior masonry and copper roof rehabilitation will be complete, including installation of new and restored window units. The overall project is expected to be approximately 85% complete by March 31, 2017. The rehabilitation of the building and the construction of the interim House of Commons Chamber in the courtyard are scheduled to be complete in 2017.

Visitor Welcome Centre—Phase 1

The Visitor Welcome Centre – Phase 1 will be a newly constructed, multi-level, underground facility to 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 connect the West Block to the Centre Block Underground Services, and will provide a new public entrance to the West Block.

Critical underground utilities serving the Centre and West Block buildings located in the construction area have been relocated to support the excavation and construction of this first phase of the Visitor Welcome Centre. Underground utilities were relocated in a manner that ensured continuous, secure services to the buildings currently served by the existing underground utilities network. Subsequent phases of the Visitor Welcome Centre will extend eastward as the LTVP progresses.

In 2015–16, design and excavation activities were completed. Construction of the building began in late 2015. By March 31, 2016, the overall project delivery met its completion target of 50%.

In 2016–17, construction of the facility will continue throughout the year. Structural work will be completed, while installation of mechanical and electrical systems will be well advanced. The overall project, which is expected to be completed in 2017, will be approximately 80% complete by March 31, 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. This building was acquired by PWGSC in 1973.

The Wellington Building, is being rehabilitated to address health and safety issues, replace obsolete building systems, and meet modern building code requirements. Once completed, this building will house 10 parliamentary Committee Rooms and 70 parliamentary offices, which will be used while other Parliament Buildings are being rehabilitated.

In 2015–16, the building envelope was completed. Sequential floor handover and commissioning of building systems began mid-year. The installation of multimedia, network equipment and communication technology began in late 2015. Delivery and installation of furniture also started. The overall project met its completion target of 90% by March 31, 2016.

In 2016–17, construction completion and handover of the building to the House of Commons is expected in the spring. Building occupancy is expected in fall 2016.

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, so that the rehabilitation of Centre Block can begin as early as 2018. In the meantime, the GCC itself 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.

PSPC will carry out significant interior renovations, including replacement of key building systems. The recapitalization of this building to meet the interim accommodation needs of the Senate is also expected to help meet the long-term business needs of the Department after the Senate returns to the Centre Block.

In 2015–16, the base building and fit-up design, along with the abatement and demolition will be complete. By March 31, 2016, the overall project delivery met its completion target of 25%.

In 2016–17, construction will continue with a focus on the interior structural and seismic upgrades and exterior rehabilitation. Furniture and multimedia equipment will be procured in preparation for their installation in 2017–18. This project, which is scheduled to be completed in 2018, will be approximately 45% complete by March 31, 2017.

East Block 1867 wing exterior rehabilitation

The East Block on Parliament Hill was built in two periods. The first portion was completed in 1867, which included the main west and south wings (referred to as the 1867 Wing). Then, in 1910, a second wing was added to the east.

As a part of the LTVP, PSPC will approach the rehabilitation of East Block in 2 distinct phases. The first phase will focus on the conservation and rehabilitation of the exterior envelope of the 1867 Wing, which is in most need of repair. Minor interior upgrades will be made to permit the Senate to continue to conduct its business in the building while work is carried out on the building's exterior.

After 2028, following the completion of Centre Block, the East Block will be vacated so that its interior can be rehabilitated. This second phase will focus on remaining exterior work, including the 1910 Wing, completing the seismic reinforcement program for the entire building, and replacing interior building systems with modern systems.

In 2015–16, design development and construction planning were completed and PSPC started the preparation of construction documents for Phase I. Investigations began in the summer and were completed by mid-fall. By March 31, 2016, the overall project met its completion target of 15%.

In 2016–17, the construction documentation for the first construction package of phase 1 will be complete with construction starting near the end of 2016–17. This project, which is scheduled to be completed in 2022, is expected to be approximately 20% complete by March 31, 2017.

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 projects, achieving substantial time and cost savings that have enabled the Department to 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 Towers 2013 2013
Sir John A. Macdonald Building rehabilitation 2015 2015

Variances of the budget

West Block rehabilitation

The total project cost remains within the approved budget of $862.9 million (excluding Goods and Services Tax (GST)/Harmonized Sales Tax (HST)), and the project is expected to be completed within this amount.

Visitor Welcome Centre—Phase 1

The total project cost remains within the approved budget of $129.87 million (excluding HST), and the project is expected to be completed within this amount.

Wellington Building rehabilitation

The total project cost remains within the approved budget of $425.2 million (excluding GST/HST), and the project is expected to be completed within this amount.

East Block 1867 wing exterior rehabilitation

The total project cost remains within the approved budget of $167.3 million (excluding HST), and the project is expected to be completed within this amount.

Government Conference Centre rehabilitation

The total project cost remains within the approved budget of $219.8 million (excluding HST), and the project is expected to be completed within this amount.

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 from the planned completion date set as part of the 2007 revised LTVP. 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.

Carling campus project

This project is to upgrade and refit the buildings at Carling Campus enabling Department of National Defence (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, PSPC's allocation of costs for lease space is reduced by $30 million/year starting in 2016–17. 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, strengthening of the security posture and transformation of business. 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 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 such as, reducing security costs for commissionaires and minimizing churn rate or re-fit as a result of lease terminations, in addition to operational efficiencies and strengthen their departmental security posture. 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 (BGIS)

Major subcontractors

Project phase

Major milestones

Phase I

Phase II

Phase III

Project close-out

March 2020

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 TBS Submission, the project identified a nine-month delay in the expected Phase I move in date. This extension will postpone the first move of National Defence Team members from December 2015 to September 2016. At this time, the Phase I delay does not impact the overall budget, the other phases or the final project end date of 2019–20. 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, PSPC identifies and undertakes recapitalization projects related to 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 units as their seals fail was deemed inappropriate; whole units had to be replaced to ensure structural integrity. However, a 2013–14 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 BGIS, 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 BGIS, 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 8 and 9 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 BGIS 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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