Public Services and Procurement Canada
Archived—Section II: Operating context and key risks—2017 to 2018 Departmental Results Report

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Operating context

As a central service provider, Public Services and Procurement Canada (PSPC) plays a critical role in enabling federal departments to deliver services and programs. To effectively meet this responsibility, PSPC must constantly measure and evaluate its performance, and use the resulting information to increase its operational effectiveness. Through continuous improvement of its services, PSPC can remain responsive in an evolving and dynamic context.

In support of service excellence to its clients, PSPC embraces best practices and lessons learned. For example, enterprise-wide initiatives are now guided by experiences from Phoenix to ensure they are well supported by effective governance, policies, training and clear roles and responsibilities.

Environmental considerations are increasingly shaping decisions and operations in organizations of all sizes. Efforts to reduce the federal government's environmental footprint are central to many PSPC activities, in particular our management of federal buildings. PSPC is developing efficient and modern workplaces by supporting the implementation of smart technology and the creation of innovative environments to make better use of office space. These efforts will help Canadian public servants reduce their ecological footprint and assist the Government of Canada in meeting emissions reduction targets.

PSPC administers fair, open and transparent procurement processes, but we recognize that government purchasing can work better. It can be easier for suppliers and produce greater value for citizens. The department is streamlining procurement processes and working towards the implementation of a modern system for all procurement needs. In addition to these efforts, PSPC is identifying innovative and modern procurement approaches to generate social and economic benefit for Canadians. Large-scale projects such as shipbuilding and construction are also being used to create growth and opportunities across the country.

In order to deliver on its core responsibilities, as outlined in the Departmental Results Framework and government priorities, PSPC recognizes that a healthy, agile and responsive organization is critical. As such, PSPC has developed 3 corporate priorities:

• changing the way we deliver services
• greening the way we work
• changing the way we work

A range of activities under these priorities will position the department for success as an employer and service provider of choice.

Key risks

PSPC integrates risk into business planning, decision-making and organizational processes to minimize negative impacts and maximize opportunities across the diverse range of its services and operations. Risk management is conducted throughout PSPC in accordance with the Treasury Board Framework for the Management of Risk, PSPC Policy on Integrated Risk Management, the International Organization for Standardization's ISO 31000 Standard, and the Canadian Standards Association Implementation Guide to CAN/CSA-ISO 31000, Risk Management—Principles and Guidelines.

As outlined in its Departmental Plan for fiscal year 2017 to 2018, PSPC's top 5 key risks were as follows:

• solution delivery
• concurrent and complex changes
• health, safety and security
• critical system emergencies
• fraud

PSPC's risk management strategies are outlined in the risk table below.

PSPC's key risks will be reviewed and updated as part of the departmental planning process for fiscal year 2019 to 2020.

Solution delivery

PSPC undertakes complex and important projects and procurements. There is risk associated with delivering these services on time, within the approved budget and according to scope. This risk can have a significant impact on PSPC's service strategy. To continue delivering service excellence to Canadians, the public service requires timely and appropriate implementation of business processes coupled with technological and innovative enablers such as web-based solutions and collaborative workspaces. These change initiatives require introduction at an optimal pace. If implementation happens too fast, employee adoption may not be as deep as originally envisioned, while potentially causing personnel disengagement. If implementation happens too slowly, PSPC's planned changes face obsolescence, as well as a higher risk of disruption during the migration of legacy systems. By innovating effectively and in a coordinated way, PSPC will make sure it stays well-positioned and relevant to its multiple stakeholders.

Risk responses

Based on PSPC's semi-annual risk response monitoring and reporting, the department's risk responses have mitigated the solution delivery risk for the 2017 to 2018 fiscal year.

Key  examples of Public Services and Procurement Canada's solution delivery risk responses

Leveraging technology

Technology was better utilized to communicate with, and make documents more accessible to, employees. Online training was provided to employees in key subject areas, such as the pay system and security.

Change management

PSPC has embarked on a process to enhance its service strategy, with a deeper focus on internal services to better anticipate and meet client needs. PSPC is working to develop long-term strategies with clients that support existing and future client needs and expectations, mitigate dependencies and maximize cost-recovery. The department is also ensuring efficient communication by setting clearer expectations with branches, regions and employees, and working to monitor and maintain client and employee engagement.
To further mitigate the risks related to solution delivery, PSPC established the Office of the Chief Transformation Officer in November 2017 to support process improvements and advance PSPC's employee and client satisfaction culture.

Organizational restructuring

PSPC created a new integrated team to deal with pay administration issues through an end-to-end and government-wide approach (July 2017). A Pay Solutions Branch was also created to play a central role in information management and technology processes in support of pay system stabilization (March 2018). This branch also leads MyGCHR, an online platform that modernizes human resources services for public servants.

Concurrent complex changes

Concurrent complex changes can occur within PSPC's diverse, functional program areas. Several major projects may take place at the same time, or there may be large numbers of new priorities in the context of ongoing operations. The simultaneous implementation of complex, transformational initiatives within PSPC and throughout the Government of Canada, coupled with budget and time restrictions, can expose the department to risks associated with increased workload and resource constraints, and lead to employee disengagement and stress. If PSPC projects do not fully achieve their desired outcomes, they can become more costly and negatively impact the department's reputation with its staff, clients and the public.

Risk responses

Based on PSPC's semi-annual risk response monitoring and reporting, the department's risk responses have mitigated the concurrent complex changes risk for 2017 to 2018.

Key examples of Public Services and Procurement Canada's concurrent complex changes risk responses

Workforce planning

An integrated human resources planning process allowed branches and regions to better forecast and manage their staff resourcing needs in conjunction with program needs. This resulted in a greater ability to manage capacity risks that result from complex, transformational initiatives.

Recruitment strategies

Recent outreach activities targeted universities and colleges, as well as other countries, for employee exchange programs and internships. A dedicated recruitment group was formed to ensure that appropriate resources were available to address the workload.

Improving the way we work

As part of PSPC's commitment to innovate and transform operations, and to ensure operational consistency and alignment across the department, the Office of the Chief Transformation Officer was established in November 2017.

Supporting workplace mental health

The Office of the Ombudsman for Mental Health's First Report to the Deputy Minister was published in September 2017. The PSPC psychological health and safety working group was subsequently established with representatives from the department's branches, regions, unions, and employee networks. PSPC developed a mental health framework integrating the federal strategy and expected outcomes, and launched a new peer support program. Additionally, branches and regions provided over 300 activities to promote mental health.

Ensuring all employees have the necessary training

The department provided detailed contract management and oversight training to key employees in order to strengthen expertise across the organization.

Health, safety and security

PSPC manages one of the largest and most diverse real estate portfolios in the country, including government office facilities and specialized infrastructure such as bridges and dams. PSPC is also responsible for the renovation of the buildings in the parliamentary Precinct.

The integrity of the government's property assets can become diminished for many reasons, including missing or delayed repairs or a lack of maintenance and renewal. Often, such challenges would happen as a result of budget limitations, or more recently, climate change events. However, government infrastructure and buildings can also be purposefully targeted and compromised.

If government infrastructure becomes diminished, then the physical safety of assets and occupants, as well as the continuity of government operations and services, may be threatened. Additionally, facilities may fail to comply with certain acts, codes or regulations. Lastly, the economy or functionality of nearby communities may also be negatively impacted.

Risk responses

Based on PSPC's semi-annual risk response monitoring and reporting, the department's risk responses have mitigated the health, safety and security risk for 2017 to 2018.

Key examples of Public Services and Procurement Canada's health, safety and security risk responses

Conducting assessments to mitigate base building threats and risks to assets

Several tools have been put in place to assess the condition of the real property services fixed asset portfolio. These include building performance reviews, building condition reports, studies and asset management plans.

Assessing climate change impacts

PSPC took action in response to recommendations of the Commissioner of the Environment Climate Change Adaptation Audit, and has completed a climate change adaptation risk assessment. The assessment helped identify vulnerabilities in current departmental climate change adaptations, and has allowed the department to begin focused planning around impacts to departmental objectives. In addition, the department participates in a newly created intra-departmental climate change adaptation working group.

Creating sustainable financing arrangements

A budget allocation process is in place to ensure adequate funds are distributed efficiently and effectively to maintain fixed assets.

Improving analysis and communication processes for security incidents and other emergencies

An operational tool was developed to enhance analysis and communication by departmental security officers during security breaches.

National training

PSPC held national training sessions to strengthen the department's in-house contract and oversight management expertise.

Critical system emergencies

In today's world, a range of natural and health hazards, as well as man-made threats, are increasing in their frequency, complexity and interconnectedness as a result of globalization and natural and political forces. Climate change can increase the likelihood of the aforementioned threats being realized.

Although a variety of emergency-response systems are in place, the aforementioned challenges can still increase the potential for system disruptions or collapses. Consequences can include large-scale interruption of important services and programs, as well as reduced productivity, efficiency and effectiveness.

Risk responses

Based on PSPC's semi-annual risk response monitoring and reporting, the department determined that more attention should be given to critical system emergencies risk responses.

Key examples of Public Services and Procurement Canada's critical system emergencies risk responses

Business continuity planning and emergency management processes

PSPC's business continuity plans and emergency-response procedures are tested and periodically reviewed under the department-wide annual review process, as part of the planning and reporting calendar. Security controls are also in place, such as the PSPC crisis management plan.
Nevertheless, PSPC is implementing more robust processes and exercises for business continuity planning and emergency management. For example, PSPC has recently completed a building contingency plan for the Parliamentary Precinct, which includes tools and procedures specifically designated for emergency situations. PSPC is also redefining its critical services to align more closely with the Treasury Board of Canada Secretariat's definition of a critical service in order to develop a comprehensive, department-wide business continuity plan that will ensure that critical services continue to be provided through periods of disruption.
Finally, PSPC has developed a concept of operations for departmental emergency management. PSPC is following through on this initiative by planning a new integrated departmental operations control centre, which will provide an integrated response to emergencies that affect its clients or its internal functions.

Assessing climate change impacts

PSPC took action in response to recommendations of the Commissioner of the Environment Climate Change Adaptation Audit, and has completed a climate change adaptation risk assessment. The assessment helped identify vulnerabilities in current departmental climate change adaptations and has allowed the department to begin focused planning around impacts to departmental objectives. In addition, the department participates in a newly created intra-departmental climate change adaptation working group.

Fraud

Fraud is a deliberate attempt to deceive for a calculated gain. Government initiatives are not immune to the risk of fraud as demonstrated by previous instances of bid rigging, collusion and corruption.

Existing systems must continue to evolve in order to best respond to a rapidly changing technological environment (for example, cyber-attack) that affords new means by which criminal actors (internal and external) could compromise internal controls. Fraudulent activities could result in the undermining of public trust in government institutions, and financial loss.

Risk responses

Based on PSPC's semi-annual risk response monitoring and reporting, the department's risk responses have mitigated the fraud risk for 2017 to 2018.

Key examples of Public Services and Procurement Canada's fraud risk responses

Fraud risk assessment

In response to recommendations of the Office of the Auditor General in its audit on managing the risk of fraud, PSPC launched a 3-year departmental fraud risk assessment in 2017 to 2018. The 3 phases of the assessment will deliver a variety of fraud mitigation strategies.

Use of fairness monitors

The Fairness Monitoring Program supports PSPC's commitment to integrity and excellence by providing a formal oversight mechanism for obtaining independent assurance that departmental procurement activities are conducted in a fair, open and transparent manner.

Applying the Government of Canada's Integrity Regime

The federal government announced enhancements to the Integrity Regime that will take effect in 2018 to 2019. These are aimed at mitigating fraud risks associated with conducting business with unethical suppliers.

Establishing and promoting the Fraud Tip Line

PSPC, in partnership with the RCMP and the Competition Bureau, established the federal contracting Fraud Tip Line, which provides Canadians with a mechanism to report suspected cases of fraud, collusion and wrongdoing in federal contracts and real property transactions.

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