Status report on transformational and major Crown projects: 2016 to 2017 Departmental Results Report

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

The Public Services and Procurement Canada (PSPC) Transformation of Pay Administration Initiative, approved in July 2009, consisted of 2 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Both projects were implemented to replace the Government of Canada's outdated pay administration system, renew business processes, and consolidate pay services in the Public Service Pay Centre in Miramichi, New Brunswick.

The Pay Modernization Project replaced the Government of Canada's 40-year-old pay system with the new pay system, called Phoenix. The new pay system which was rolled out in February and April 2016, was integrated with the Government of Canada Human Resources Management System (PeopleSoft). Following the implementation of Phoenix, PSPC's activities moving forward are focused on stabilizing the pay system and achieving a steady state by meeting pay processing service standards consistently. The project has been closed since April 2016.

The Consolidation of Pay Services Project completed the transfer of 95,000 pay accounts from 46 departments and agencies to the Public Service Pay Centre in Miramichi. After having successfully established the Pay Centre and created 550 public service jobs in the Miramichi region, approximately 195,000 public servants are receiving pay services from the Pay Centre. This project has been closed since December 2015.

Project outcomes

The initiative was intended, among other things, to achieve the sustainability of pay administration, contribute to a more effective and efficient public service, and offer better value to Canadians.

Outcomes are being measured and monitored as part of on-going operations. For Phoenix, success is measured by the Pay Compensation Sector and reported through the existing departmental results framework. For the Pay Centre, success is measured by the Pay Centre and also reported through the existing departmental results framework. To note, as at end of 2016 to 2017, Phoenix stabilization and Pay Centre service delivery activities are being overseen by the Assistant Deputy Minister (ADM) and Associate Assistant Deputy Minister (AADM) of Accounting, Banking and Compensation Branch (ABCB) working closely with central agencies in an oversight capacity (such as 4 corners). Activities are also planned (as of end of April 2017) to be measured and monitored for success through an enhanced governance process, including the Ministers Working Group on Achieving Steady State, and the Associate Deputy Minister overseeing end to end human resources through pay activities.

Industrial benefits

Pay Modernization Project: a multi-million dollar contract is in place with IBM Canada Ltd. for the provision of software licenses, professional services. Currently, services include in-service support for maintenance of the Phoenix solution.

Consolidation of Pay Services Project: the project created over 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 being delivered by PSPC's ABCB in partnership with the Chief Information Officer Branch and Shared Services Canada. Both projects are now closed.

The following were the primary stakeholders:

Prime contractor

For provision of software licenses and professional services:

For provision of project management services:

Major subcontractors Pay Modernization Project (project completed)

Project phase

After completing its definition phase, the Pay Modernization Project began its implementation phase in December 2012. Implementation was completed in April 2016.

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

Both projects are complete. Pay Modernization closed in April 2016 and Pay Consolidation closed in December 2015.

Issues and challenges related to Phoenix and Pay Centre service delivery after Phoenix was rolled out in early 2016 are being managed by the ADM and AADM of ABCB as part of in-service support and ongoing operations.

Some of the comprehensive measures implemented by the Department in 2016 to 2017 include:

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

In 2007, the Government of Canada Transformation of Pension Administration Initiative was launched to replace PSPC's 40-year old pension systems with commercial off-the-shelf software, streamline business processes, and centralize pension services at the Government of Canada Pension Centre in Shediac, New Brunswick. The Public Service Pension Plan transformation was completed in January 2013.

In July 2014, PSPC began administering pension services to the Royal Canadian Mounted Police (RCMP) using the new Government of Canada (GC) pension system.

Work began in 2012 to modify the Government of Canada pension system already in use for the administration of pension for the public service and the RCMP, to include all the rules associated with the Canadian Armed Forces pension plans.

The Government of Canada Transformation of Pension Administration Initiative delivered a:

The new GC pension system 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.

Project completion

In July 2016, the first system release (release 1) to support the transfer of pension administration for the Canadian Armed Forces was successfully completed. A new Pension Centre office was also established in Ottawa to provide services to active Canadian Armed Forces members using the new GC pension system while services to retired members were being delivered using an old legacy system.

In January 2017, implementation activities for the final system release (release 2) were executed as planned. The Pension Centre in Ottawa successfully went live on January 3, 2017 and started delivering all services to Canadian Armed Forces members (active and retired) using the GC pension system.

With the addition of the Canadian Armed Forces, PSPC's overall pension administration client base is now of approximately 850,000.

This significant accomplishment, which was delivered on time, within scope and under budget, represents an important milestone for the department as we close the book on a successful ten-year Government of Canada Transformation of Pension Administration Initiative.

Recognition of this important milestone was acknowledged by the Clerk of the Privy Council in his 24th annual report to the Prime Minister on the Public Service of Canada.

Project outcomes

Industrial benefits

A multi-million dollar contract was awarded to Hewlett Packard Enterprise Services Canada (now DXC Consulting) for the provision of commercial-off-the-shelf software systems. It included professional services for the design, implementation and maintenance of the new system, and for business processes and services transformation. The project contributed 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 was successfully completed in January 2017.

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 Canadian Armed Forces pension administration to PSPC in December 2011, 6 months later than planned.

As a result, a re-profiling of funds and a 6-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 was December 2016 and the project scope and budget remained unchanged. 

Release 1.0 detailed design, development, testing, data conversion, and implementation activities were completed as planned. Business transformation activities were also completed in support of the new Pension Centre satellite office in the National Capital Area.

Release 2.0 activities were also completed as planned. In January 2017, implementation activities for this final system release were successfully completed.

The overall project was delivered on time, within scope, and under budget.

Long Term Vision and Plan for the Parliamentary Precinct

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 collaboration with the Parliamentary Partners (the Senate, the House of Commons, the Library of Parliament), PSPC updated the Long Term Vision and Plan (LTVP). The updated LTVP provides a coordinated long-term approach to rehabilitate 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 and their staff, visitors and tourists.

The LTVP is implemented through 4 distinct components, the:

The Major Capital Program manages the rehabilitation of major buildings in the Parliamentary Precinct, including the West Block, the Centre Block, the East Block, the 180 Wellington Building, the Government Conference Centre. This program also manages new construction projects such as the Visitor Welcome Centre Complex, to support the security and operational requirements for the buildings on Parliament Hill.

The Recapitalization Program delivers projects required to preserve buildings against deterioration and ensure their ongoing viability, address health and safety concerns to occupants, and to reduce overall expenditures while ensuring ongoing operations of occupied buildings.

The Building Components and Connectivity Program includes the delivery of projects that provide infrastructure and services such as building fixtures, furnishings, equipment, as well as modernization of multimedia communication and information technology, to implement the connectivity requirements throughout the precinct.

The Planning Program focuses on the development of master plans, development plans, and enabling studies to guide investment decisions and prioritization of future projects. It also provides overall coordination between active projects and ensure that they contribute to the broader objectives of the LTVP.

A new update to the LTVP is now required to incorporate evolving conditions and requirements, to take advantage of new opportunities, and to ensure the plan reflects government and parliamentary priorities. In 2016 to 2017, the Parliamentary Precinct Branch (PPB) initiated phase 1 of the LTVP update with the parliamentary partners and stakeholders. The result was a set of 5 strategic directions that will provide a framework to guide the update to the LTVP (phase 2). Among these strategic directions is the shift to a campus approach which will better support the safe and efficient operations of Parliament, as well as those of the Prime Minister's Office and the Privy Council Office. The campus approach will allow for a comprehensive view of important areas of project delivery, including security, information technology, sustainability, and material handling.

The next phase of work (phase 2) will be the result of collaborative work between the PPB project team, a consulting team, the parliamentary partners, and stakeholder working groups. This collective work will identify functional, flexible, integrated and creative approaches to realize the full potential of the precinct and its important role in the nation's capital.

Project outcomes

The LTVP is a complex multi-decade strategy designed to address 3 priorities:

The benefits of a well-conceived and well-executed LTVP are 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

The LTVP creates significant employment opportunities through contracts held with small, medium and large companies across Canada, including set-aside criteria in procurement for indigenous people. Once completed, current and past major projects West Block (2011 to 2018), Visitor Welcome Centre Phase 1 (2015 to 2018), Government Conference Centre (2015 to 2018), 180 Wellington (2010 to 2016), and Sir John A. Macdonald (2012 to 2015) will have generated over 25,000 person-years.

By partnering with colleges and universities the LTVP creates unique opportunities for young Canadians to contribute to these historic projects and to build industry capacity. These partnerships leverage innovative architectural and engineering practices and cutting edge technology to help achieve more efficient program delivery to deliver the program more efficiently. They include:

Over the last 5 years, several multi-million dollar contracts have been awarded for the:

Sponsoring department

Public Services and Procurement Canada

Contracting authority

Public Services and Procurement Canada

Participating departments

The National Capital Commission, the Federal Heritage Buildings Review Office, and the Royal Canadian Mounted Police.

Parliamentary partners

Prime contractor

Major subcontractors

Project phase

The LTVP encompasses numerous and varied individual major capital, recapitalization, building components and connectivity, and planning projects taking place simultaneously at different project phases at any one time. The Major Capital Projects are described below.

West Block rehabilitation

The West Block is the oldest building of the Parliamentary building located on Parliament Hill. This 4-story building was built in 3 phases, between 1859 and 1909. After rehabilitation, the West Block will provide an interim House of Commons Chamber in the courtyard, four committee rooms, as well as offices necessary for the Prime Minister, House Officials and Officers, Party Leaders and Party Whips.

In 2016 to 2017, progress was made on construction in the courtyard and the north court and the installation of the Chamber's glass roof is nearing completion. The exterior masonry work was completed. The rough-in for mechanical and electrical systems is nearing completion, while work on the interior finishes and the cabling and connectivity has started. By March 31, 2017, the overall project delivery met its target of 85%. The rehabilitation of the heritage building and the construction of the interim House of Commons Chamber in the courtyard will be ready for occupancy by the opening session of Parliament in the fall of 2018.

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, and visitor services. It will provide a new public entrance to the West Block. The building connects the West Block to the Centre Block underground services facility on the service levels, providing a route for material management and utility connections.

In 2016 to 2017, major excavation activities were completed, the work on the concrete structure is in the finishing stages, and the rough-in for mechanical and electrical systems has begun. By March 31, 2017, the overall project delivery met its target of 80%. The construction for the Visitor Welcome Centre—Phase 1 will be ready to welcome its first visitors by the opening session of Parliament in the fall of 2018.

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. The GCC will accommodate the Senate Chamber, 3 committee rooms, and Parliamentary Office units leadership and legislative functions for the duration of the Centre Block rehabilitation. PSPC is carrying out significant interior renovations, including the full replacement of key building systems. In addition, to meet the interim accommodation needs of the Senate, the rehabilitation of this building is expected to meet the long-term business needs of the department after the Senate returns to the Centre Block.

In 2016 to 2017, the construction of the GCC progressed well. The structural upgrades are nearing completion; while the exterior and interior masonry, the construction of an east addition and a loading dock, and the installation of mechanical and electrical systems are well underway. Work on interior finishes has also begun. By March 31, 2017, the overall project delivery met its target of 45%. The rehabilitated building will be ready for occupancy by the opening session of Parliament in the fall of 2018.

East Block 1867 wing envelope recapitalization

The East Block on Parliament Hill was built in 2 phases. The first portion was completed in 1865, which included the main west and south wings (referred to as the 1867 Wing). Subsequently, in 1910, a second wing was added to the east to enclose the courtyard.

As part of the LTVP, PSPC is approaching the rehabilitation of East Block in 2 distinct phases. The first phase will focus on the recapitalization of four areas of greatest concern within the exterior envelope of the 1867 Wing. These areas include urgent repairs to the South West Tower, the South East entrance (agricultural entrance), the South entrance and the Governor General's entrance. Also, the department will implement an enhanced maintenance program to provide targeted maintenance activities and an ongoing screening and investigation program to identify issues that are to be addressed prior to its full rehabilitation.

As part of the second phase to occur in the future, the department is assessing options for the remaining exterior rehabilitation and for advancing the full interior rehabilitation of the East Block. The full rehabilitation will address the remaining exterior work not addressed in the first phase, including the 1910 Wing, completing the seismic reinforcement program for the entire building, and replacing interior building systems with modern systems. The building will also be upgraded to meet the modern building standards and functional requirements of the Senate of Canada.

In 2016 to 2017, progress was made on the design, construction planning and preparation of construction documents for the first phase of the project. Maintenance, screening and investigation activities were conducted to address any issue prior to the full rehabilitation of the building. By March 31, 2017, the overall project delivery met its target of 20% completion, enabling the construction of the South East entrance to begin in the fall of 2017. The remainder of the work is expected to begin in the spring and summer of 2018, with anticipated completion of the first phase of the envelope work by late 2020.

Major milestones

Progress report and explanation of variances

PSPC has completed 21 major projects since the completion of the Library of Parliament, achieving substantial time and cost savings.

Recently completed Long Term Vision and Plan Projects

Update to the Long Term Vision and Plan
LTVP 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
Wellington Building Rehabilitation 2016 2016

Variances of the budget

Variances of the major milestones

There are currently no variances to the major milestones. 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 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 fall 2019.

Project outcomes

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 3-phased migration of up to 8,500 DND team members who will consolidate to the campus from other National Capital Area leases starting in January 2017 with full mitigation expected to be completed in fall 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.

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 once the Campus is fully occupied by DND in 2019. 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.

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 procurement 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 National Project Management System and has received 2 of the 3 planned expenditure authorities (EA). The third EA will be sought in fall 2017.

Major milestones

Expenditure authorities 1: December 12, 2013

Expenditure authorities 2: June 9, 2015

Expenditure authorities 3: October 2017

Inception stage of National Project Management System

Identification stage of National Project Management System

Delivery stage of National Project Management System

Close-out stage

Progress report and explanation of variances

As at March 31, 2017, building 8 was fully occupied by DND and building 9 was ready for move-in. Phase I will be complete by the end of November 2017 (buildings 6 and 7). The remaining 5 buildings (representing 60% of the campus capacity) will be occupied during phases II and III. Moves into the remaining buildings are presently planned between late fall 2018 and late fall 2019.

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