Public Services and Procurement Canada
Supplementary information: 2018 to 2019 Departmental Results Report
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Corporate information
Organizational profile
Appropriate minister: Carla Qualtrough, PC, MP
Institutional head: Bill Matthews
Ministerial portfolio: Public Services and Procurement Canada
Enabling instrument: The Department of Public Works and Government Services Act establishes the Department of Public Services and Procurement Canada.
Year of incorporation/commencement: 1841
Other: The Minister of Public Services, Procurement and Accessibility has responsibilities under 19 other acts. The most important ones are:
- Shared Services Canada Act
- Expropriation Act
- Defence Production Act
- Seized Property Management Act
- Surplus Crown Assets Act
- Financial Administration Act
Raison d'être, mandate and role: Who we are and what we do
Raison d'être
Public Services and Procurement Canada (PSPC) plays an important role in the daily operations of the Government of Canada. It supports federal departments and agencies in the achievement of their mandated objectives as their central purchasing agent, real property manager, linguistic authority, treasurer, accountant, pay and pension administrator, and common service provider. The department's vision is to excel in government operations. Our mission is to deliver high-quality, central programs and services that ensure sound stewardship on behalf of Canadians and meet the program needs of federal institutions.
Mandate and role
The department, founded in 1841, was instrumental in the building of our nation's canals, roads and bridges, the Houses of Parliament, post offices and federal buildings across the country.
The Department of Public Works and Government Services Act, passed in 1996, established the current department and set out the legal authorities for PSPC's services. As a common service organization providing government departments, boards and agencies with support services, PSPC delivers on its mandate through 5 core responsibilities:
- Purchase of goods and services
- Payments and accounting
- Property and infrastructure
- Government-wide support
- Procurement Ombudsman (note: the Office of the Procurement Ombudsman operates at arm's length from the department)
PSPC's goal is to manage its business in a way that demonstrates integrity, accountability, efficiency, transparency, and adds value for its client departments and agencies, and Canadians.
In 2018 to 2019, the portfolio included 3 Crown corporations (Canada Lands Company Limited, Defence Construction Canada and Canada Post Corporation). The Office of the Procurement Ombudsman (OPO) also reports to the minister and operates independently. Details of the operations of the Crown corporations and OPO are provided in separate annual reports that are tabled in Parliament by the minister.
For more information on the department's organizational mandate letter commitments, consult the Minister's mandate letter.
Operating context and key risks
Operating context
PSPC is a large organization with over 16,000 employees located across Canada; they are experts in a wide variety of fields, from professional purchasers to translators, from accountants to banking experts, and from architects and engineers to sustainable development experts. Across these varying business lines, PSPC needs to be nimble, adaptive and proactive in adjusting to global and public service trends in a timely manner so that we can serve our clients better, plan for future workforce needs, keep pace with rapidly shifting technology trends and meet social environmental and economic expectations.
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.
Over the last year, PSPC has been revising its approach to integrated risk management to meet its evolving needs and operational context. The most notable changes include:
- further from a top-down key risk identification to a more comprehensive bottom-up and top-down consultative process
- presentation of risks in a manner that are more PSPC-specific
- inclusion of top risks at the strategic, operational and project level, both from a service delivery and internal services perspective
- evolution to an evergreen departmental risk profile which will be refreshed more regularly
- introduction of a more equitable balance between risks and opportunity in the risk management approach
Due to these changes during the fiscal year, the top risks experienced an evolution from the time they were identified in the Departmental Plan to the presentation of this report. Where they still pose key risks to the department, the previously identified risks continue to be included in the updated risks as sub-components or as overarching themes for more specific risks. The new presentation will facilitate the department's ability to better articulate its risk management efforts and as a result contribute to increased informed decision-making.
PSPC's top 5 key risks outlined in the Departmental Plan for fiscal year 2018 to 2019 included:
- solution delivery
- concurrent complex changes
- health, safety and security
- critical system emergencies
- fraud
PSPC's risk management strategies for fiscal year 2018 to 2019 for these risks are outlined in the key risks table below.
| Risks | Risk response strategy and effectiveness | Link to the department's core responsibilities | Link to mandate letter commitments and any government-wide or departmental priorities as applicable |
|---|---|---|---|
| Solution delivery: There are inherent risks in PSPC undertaking and delivering complex, transformational and interdepartmental major projects and procurements on time, within approved budget and according to scope which could ultimately have an impact on the department's service strategy. | Given the nature of its mandate, PSPC continuously monitors risks for projects it undertakes to deliver services to its client. Below are a few examples of risk response strategies. Developing and launching the pay pod pilot project as part of the HR-to-Pay Integrated Plan has decreased the queue of outstanding transactions by 32% within the areas covered by the pilot projects, and allowed for quicker resolution of pay issues and the development of greater departmental expertise. Positive results led to scaling up of this initiative across multiple departments. Electronic procurement solutions: Progress made towards transitioning to an electronic procurement solution by applying lessons learned from previous transformational initiatives, including choosing a proven commercial-off-the-shelf technology, developing a strong governance oversight function throughout the project and engaging current and future stakeholders early. Creating the Evaluation and Integrated Risk Management Sector: Began the review and renewal of the integrated risk management approach with a renewed focus which includes more specificity relating to this risk, especially at the corporate level. The change in reporting structure for evaluation is a starting point to build stronger relationships with linked functions and more value-added services for operations. |
Purchase of goods and services Payments and accounting Property and infrastructure Government-wide support |
Procurement modernization Skills, innovation and middle-class jobs: fostering a nation of innovators Skills, innovation and middle-class jobs: Canada's innovation economy through clean technology, digital industries and agri-food |
| Concurrent complex changes: The simultaneous implementation of complex transformational initiatives within PSPC and throughout the Government of Canada could expose the department to capacity risks. This could lead to inability for PSPC to remain relevant (reputation) to its clients and consequently, its workforce. | Completing the activities of the Chief Transformation Office (CTO): During 2018 to 2019, the CTO completed its mandate, which included work towards both Blueprint 2020 and the Integrated Plan for PSPC, in order to support process improvements and ensure operational consistency and alignment across the department. Progress towards managing concurrent complex changes continues as key functions from the CTO have been integrated in various branches to support operations. For example, integrating planning began the realignment exercise by performing foundational work in assessing capacity, resources and structures, with the aim of realigning them in a manner that promotes stronger effectiveness and efficiency. The work is ongoing. Supporting workplace mental health: The Office of the Ombudsman for Mental Health (the office) released its annual report and recommendations to the Deputy Minister. The office also initiated various projects and activities from communication and outreach activities to educate employees on the importance of promoting and protecting mental health, to the development of mental health surveys, to chairing the first Interdepartmental Committee of Organizational Ombudsmen to advise central agencies on updating its policy, procedure and guideline suites. Began work towards implementing a predictable capital funding model (accrual budgeting): Will provide long-term, stable funding to maintain the operations and integrity of PSPC real property assets. Work to continue in 2019 to 2020 fiscal year. |
Purchase of Goods and Services Payments and Accounting Property and Infrastructure Government-wide support |
An open and transparent government: better government for Canadians by focusing on outcomes. |
| Heath, safety and security: There is a risk that issues related to the integrity of infrastructure could affect the operating condition, business continuity as well as the performance of Government of Canada real property assets, leading to: non-compliance with acts, regulations or codes and the disruption to services provided to clients. This could negatively affect the health, well-being, security and safety of employees and the public. | Conducting assessments to mitigate threats and risks to assets: Several tools are in place to assess the condition of PSPC's fixed asset portfolio. Planning takes place at strategic and operational levels and includes building performance reviews, building condition reports, various studies, and asset and building management plans. Assessing climate change impacts: PSPC continued to hold intra-departmental climate change adaptation working group meetings, in order to help implement recommendations from the climate change adaptation risk assessment. Improving the condition of both real property and engineering assets: Activities include the refitting related to the GCworkplace renovation projects, and construction and maintenance to enhance infrastructure, such as the Esquimalt Graving Dock. |
Property and infrastructure Government-wide support |
Parliamentary Precinct renewal Communities built for change: creating Canada's clean growth economy under the Pan-Canadian Framework for Clean Growth and Climate Change |
Critical system emergencies: There is a risk of a failure of critical systems and infrastructure (such as electrical power supply, water and sewage system, etc.) due to natural and other hazards. These could reduce or halt systems, putting at risk various basic operations within the department, such as:
|
Business continuity planning and emergency management processes: PSPC's business continuity plans and emergency response procedures were tested and periodically reviewed under the department-wide annual review process. Assessing climate change impacts: PSPC continued to hold intra-departmental climate change adaptation working group meetings to help implement recommendations from the climate change adaptation risk assessment. |
Property and Infrastructure Government-wide support |
Parliamentary Precinct renewal Communities built for change: creating Canada's clean growth economy under the Pan-Canadian Framework for Clean Growth and Climate Change |
| Fraud: Given PSPC's role as the primary provider of procurement and real property services for the Government of Canada as well as its dependence on computer systems and networks, fraud and other misconduct such as corruption, collusion among contractors, bid rigging or cyber-attack could compromise not only PSPC's operations but also the Government of Canada by undermining fair competition, threatening the integrity of the markets, acting as a barrier to economic growth, increasing the cost and risk of doing business and undermining public confidence in government institutions. | Utilizing of fairness monitors: The Fairness Monitoring Program continues to provide a formal oversight mechanism for obtaining independent assurance that departmental procurement activities are conducted in a fair, open, and transparent manner. An evaluation of the program was conducted during the year. Applying the Government of Canada's Integrity Regime: PSPC continues to administer the Government of Canada's Integrity Regime to help ensure that the federal government does business with ethical suppliers. Fraud risk assessment: PSPC undertook a 3 year department-wide fraud risk assessment (FRA) to identify potential vulnerabilities for fraud, and to develop and implement strategies to mitigate those risks. In 2018 to 2019, PSPC completed the first phase of the FRA, relating to the risks of fraud found in PSPC contracting, and began implementation of the measures recommended to address the risks identified. Phase 2 of the FRA, regarding real property transactions, was launched in July 2018, and completed in June 2019. The third phase of the FRA, relating to other business lines of PSPC, started in July 2019. Establishing and promoting the Fraud Tip Line: PSPC, in partnership with the Royal Canadian Mounted Police (RCMP) and the Competition Bureau, promotes 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. |
Purchase of goods and services Property and Infrastructure |
Procurement modernization Skills, innovation and middle-class jobs: fostering a nation of innovators |
Solution delivery
PSPC regularly undertakes complex and important projects and procurements, many of which can occur at the same time increasing the risk of competing priorities. There are risks associated with delivering these services on time, within the approved budget, and according to scope, and they can have a significant impact on PSPC's service strategy and delivery. To continue delivering service excellence to its clients and Canadians, modern business processes coupled with technological and innovative enablers such as web-based solutions and collaborative workspaces are needed. These change initiatives have a strategic component to their implementation and exist in an environment in which pace of change seems to be ever increasing. In order to minimize the risk of failure, they need to be implemented at the right pace and by taking appropriate change management consideration into account. By innovating effectively and in a coordinated way, PSPC will make sure it stays well-positioned and relevant to its multiple stakeholders.
Beyond the risk of service delivery and change management, the risk of fraud is present in every organization, regardless of size, sector, or governance structure. Fraud against the organization can be committed either internally (by employees, managers, officers, or owners of the company), externally (by customers, vendors, and other parties) or a combination thereof. However, as PSPC manages a large number of procurement files and construction projects, it needs to remain vigilant to the increase risk of fraud these activities can bring. In addition to financial losses that may result, organizations may suffer reputational harm which can erode the confidence of stakeholders and the public at large. Government organizations are especially sensitive to this risk as instances of financial and property loss, data breaches, or the misuse of public funds receive widespread attention in the media, which can undermine the public's confidence in government operations. PSPC continues to monitor, update and modernize its systems and controls in order to best respond to a rapidly changing technological environment (such as cyber-attack) that affords new means by which criminal actors (internal and external) could compromise internal controls.
In addition, as PSPC manages one of the largest and most diverse real estate portfolios in the country, including government office facilities and the Parliamentary Precinct renewal, and specialized infrastructure such as bridges, dams and roads, a number of external and internal factors influence its risk portfolio. For example, the integrity of the government's assets can deteriorate for many reasons, including missing or delayed repairs, maintenance and renewal. These challenges can occur as a result of budget limitations, or due to the growing threat of climate change events. Government infrastructure and buildings can also be purposefully targeted and compromised. The impact of these factors can put the physical safety of assets and occupants, as well as the continuity of government operations and services in a precarious position or put them in a position of non-compliance with certain acts, codes, or regulations. Lastly, the economy or functionality of nearby communities may also be negatively impacted.
As PSPC further enhances its integrated risk management approach and renews its framework, it will continue to monitor internal and external factors that influences its risks and opportunities, and build capacity within the organization to effectively manage risks to add value to its clients and Canadians and minimize the impact of risks on the delivery of its mandate.
Reporting framework
Public Services and Procurement Canada's departmental results framework and program inventory of record for 2018 to 2019 are shown below.
Core responsibility 1. Purchase of goods and services
Description
PSPC purchases goods and services on behalf of the Government of Canada.
Departmental results and departmental results indicators
- 1.1 Federal organizations have the products and services they need, when they need them, at the best value
- 1.1.1 Percentage of overall client satisfaction with PSPC procurement services
- 1.1.2 Average number of days to award a contract (Target 1—Level 1 complexity)
- 1.1.3 Average number of days to award a contract (Target 2—Level 2 complexity)
- 1.1.4 Cost of procurement services per $100 of contract value
- 1.1.5 Percentage of dollar value awarded through competitive contracting processes
- 1.1.6 Percentage of contracts awarded through PSPC standing offers and/or supply arrangements
- 1.1.7 Percentage of competitive procurement processes versus sole source
- 1.1.8 Percentage of competitive procurement processes for which at least 2 bids were received (level 3-5)
- 1.1.9 Average number of qualified bidders on complex competitive procurement processes
- 1.2 Government purchasing is simpler and easy to access, fair and transparent for suppliers
- 1.2.1 Percentage of suppliers that rate the purchasing process as simpler and easy to access
- 1.2.2 Percentage of contracts awarded for which a valid complaint was filed
- 1.2.3 Percentage of suppliers that rate the purchasing process as fair and transparent
- 1.2.4 Number of agile digital procurements
- 1.3 Government purchasing supports Canada's economic, environmental, and social policy goals
- 1.3.1 Percentage of contract value awarded to small and medium businesses
- 1.3.2 Percentage of innovation contracts awarded by PSPC for which products and services are commercialized within 1 year after contract completion
- 1.3.3 Percentage of PSPC contracts, standing offers and supply arrangements that include "green" goods and services
- 1.3.4 Percentage increase in participation to procurement processes by businesses owned by Indigenous peoples
- 1.3.5 Percentage increase in participation to procurement processes by businesses owned by women
Program inventory
- Procurement leadership
- Procurement services
Core responsibility 2. Payments and accounting
Description
PSPC collects revenues and issues payments, maintains the financial accounts of Canada, issues financial reports, and administers payroll and pension services for the Government of Canada.
Departmental results and departmental results indicators
- 2.1 Canadians have timely access to reliable information on Canada's finances
- 2.1.1 The Public Accounts of Canada are posted on the department's website within 24 hours of tabling in the House of Commons
- 2.1.2 Information presented in the Consolidated Financial Statements of the Government of Canada is accurate
- 2.2 In collaboration with government departments, employees receive timely and accurate pay and benefits
- 2.2.1 Percentage of pay transactions processed that are accurate and on time
- 2.3 Members of federal pension plans receive timely and accurate pension payments, benefits and support services to which they are entitled
- 2.3.1 Percentage of pension payments processed that are accurate and on time
- 2.4 Canadians, businesses and organizations receive payments on time and revenues are collected for government services in an efficient manner
- 2.4.1 Percentage of payments issued within established timeframes
- 2.4.2 Percentage of money paid to the Government of Canada that is reconciled within 2 business days
- 2.4.3 Percentage of payments made instead of property taxes to taxing authorities within established timeframes
Program inventory
- Federal pay administration
- Federal pension administration
- Payments instead of property taxes to local governments
- Payments and revenue Collection
- Government-wide accounting and reporting
- Cape Breton operations: HR legacy benefits
Core responsibility 3. Property and infrastructure
Description
PSPC provides federal employees and parliamentarians with work space; builds, maintains and manages federal properties and other public works such as bridges and dams; and provides associated services to federal organizations.
Departmental results and departmental results indicators
- 3.1 Federal infrastructure spending supports Canada's social, economic and environmental priorities
- 3.1.1 Percentage of PSPC-managed building locations that provide features to support universal accessibility
- 3.1.2 Operating expenses per square metre of Crown-owned office space
- 3.1.3 Percentage of reduction in green-house gases in PSPC Crown-owned building portfolio, excluding housing
- 3.2 National heritage assets are preserved on behalf of Canadians
- 3.2.1 Percentage of Crown-owned heritage buildings that are in fair or better condition
- 3.2.2 Percentage of PSPC-managed heritage asset projects that are completed on time, on scope and on budget
- 3.3 Federal real estate and associated services meet the needs of federal government clients and/or parliamentarians, and ensure best value for Canadians
- 3.3.1 Percentage of Crown-owned buildings that are in fair or better condition
- 3.2.2 Percentage of PSPC-managed office space that is modernized each year to meet the current Government of Canada workplace fit-up standards
- 3.3.3 Percentage of real property projects that meet the needs of clients as defined in the project scope, and are completed on time and on budget
- 3.3.4 Percentage of time that essential property management services are fully available and functional
- 3.3.5 Percentage of PSPC Crown-owned surplus properties that are sold or transferred to non-federal entities
Program inventory
- Federal accommodation and infrastructure
- Real property services
- Parliament Hill and surroundings
- Cape Breton operations: portfolio management
Core responsibility 4. Government-side support
Description
PSPC provides administrative services and tools to federal organizations that help them deliver programs and services to Canadians.
Departmental results and departmental results indicators
- 4.1 Federal organizations have access to high quality linguistic services and tools
- 4.1.1 Percentage of translation, interpretation and terminology services that comply with established quality standards: target 1 (translation)
- 4.1.2 Percentage of translation, interpretation and terminology services that comply with established quality standards: target 2 (interpretation)
- 4.1.3 Percentage of translation, interpretation and terminology services that comply with established quality standards: target 3 (terminology)
- 4.1.4 Percentage of overall user satisfaction with the Translation Bureau's language tools and services
- 4.1.5 Percentage of translation, interpretation and terminology services provided to Government of Canada by Translation Bureau
- 4.2 The Government does business with ethical suppliers and ensures that sensitive information is handled appropriately
- 4.2.1 Percentage of business integrity verification requests answered within the 4-hour client service standard
- 4.2.2 Percentage of security screenings processed within 7 business days for contractors and sub-contractors requiring access to protected information
- 4.3 Federal organizations have the support services and tools they need to deliver their programs to Canadians
- 4.3.1 Percentage of overall client satisfaction with PSPC support services and tools
- 4.3.2 Percentage of PSPC service standards met
Program inventory
- Linguistic services
- Communication services
- Government-wide corporate services
- Document imaging services
- Asset disposal
- Service strategy
- Canadian General Standards Board
- Security and oversight services
Core responsibility 5. Procurement Ombudsman
Description
The Office of the Procurement Ombudsman operates at arm's-length from federal organizations. It is legislated to review the procurement practices of federal organizations, review complaints from Canadian suppliers, and provide dispute resolution services.
Departmental results and departmental results indicators
- 5.1 Raise awareness of procurement issues and exchange information (education)
- 5.1.1 Number of educational events per year with small and medium-sized businesses and federal officials
- 5.1.2 Number of geographical locations where these educational events are held
- 5.2 Procurement related issues are addressed through facilitation (alternative dispute resolution)
- 5.2.1 Percentage of alternative dispute resolution processes that result in settlement agreements agreed to by both parties
- 5.3 Procurement related issues are addressed through investigation
- 5.3.1 Percentage of supplier complaint reviews completed within 120 working days as per legislative requirements
- 5.3.2 Percentage of recommendations made by the Ombudsman acted upon by federal organizations
Program inventory
- Procurement Ombudsman
Supporting information on the program inventory
Financial, human resources and performance information for Public Services and Procurement Canada's program inventory is available in the Government of Canada InfoBase.
Supplementary information tables
The supplementary information tables listed in the 2018 to 2019 Departmental Results Report are available for consultation:
- Departmental Sustainable Development Strategy
- Details on transfer payment programs of $5 million or more
- Gender-based analysis plus
- Responses to parliamentary committees and external audits
- Status report on transformational and major Crown projects
Federal tax expenditures
The tax system can be used to achieve public policy objectives through the application of special measures such as low tax rates, exemptions, deductions, deferrals and credits. The Department of Finance Canada publishes cost estimates and projections for these measures each year in the Report on Federal Tax Expenditures. This report also provides detailed background information on tax expenditures, including descriptions, objectives, historical information and references to related federal spending programs. The tax measures presented in this report are the responsibility of the Minister of Finance.
Organizational contact information
For more information on Public Services and Procurement Canada's programs and services, please communicate with us through our General enquiries webpage.
You can follow PSPC on Facebook, LinkedIn, Twitter and Instagram.
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