COVID-19 related items: Committee of the Whole—July 22, 2020

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Easing of restrictions and planning a safe return to the workplace

Context

A large proportion of the public service has transitioned to working from home during the COVID-19 pandemic. Government offices remain open and have been maintained for essential and critical workers to support Government of Canada efforts nationally. This situation is now evolving as some key service functions are incrementally increasing their presence in offices while remaining guided by regional public health agencies.

Suggested response

• Public Services and Procurement Canada (PSPC) is committed to providing healthy and productive work environments
• Physical distancing and telework provisions are reducing occupancy rates in buildings, however, occupancy levels will begin to increase in accordance with public health guidance
• Preparatory work for a safe return to the workplace is underway
• PSPC is gauging client requirements for hand sanitizer, disinfecting wipes, other protective equipment as required
• Application of local bylaws relating to the wearing of masks/facial coverings is being coordinated within publicly accessible spaces in PSPC assets

If pressed on telework arrangements:

• easing of restrictions and planning a safe return to the workplace will count on retaining a significant telework component as gradual increased office presence proceeds
• we continue to improve network infrastructure and bandwidth, and have been providing employees with mobility tools such as laptops, mobile phones and virtual collaboration platforms to ensure continued program delivery

If pressed on government building heating, ventilation and air conditioning (HVAC) systems spreading COVID-19:

• Public Health Agency of Canada (PHAC) has indicated that the virus is not known to spread through ventilation or water systems. PSPC is monitoring health research related to the airborne transmission of COVID-19
• PSPC is currently in compliance with expert recommendations to support adequate ventilation system performance and is prepared to implement any new measures recommended by the scientific community to mitigate risks in this area

Background

PSPC continues to monitor and adjust its body of guidance to departments on the advice of PHAC and Health Canada to support them in their plans for easing of restrictions and planning a safe return to the workplace. PSPC’s guidance was part of the overall guidance package issued to deputy heads on June 22, 2020.

Preparatory measures for a safe return to the workplace are underway, such as the maintenance and operation of building water systems and HVAC systems, enhanced cleaning protocols and signage/communication materials to promote physical distancing, capacity restrictions and traffic flow.

The Government of Canada’s plans of easing restrictions and planning a safe return to the workplace are being elaborated based on each client’s nature of work, the functions to support services provided to Canadians, and the current configurations of workplaces. The implementation of key practices include physical distancing for workstations, gathering rooms, and pathways for circulation within the work areas, along with enhanced sanitation measures for workers including hand sanitizer and wipes for workspaces supported by guidelines recommended by the public health authorities.

Further, as other key employment infrastructure elements progressively resume, such as small businesses, schools and daycares, easing of restrictions and planning a safe return to the workplace strategies will continue to require balancing office work with teleworking, sustaining and improving network infrastructure and bandwidth, and providing employees with access to mobility tools such as laptops, screens, mobile phones and virtual collaboration platforms to ensure continued program delivery.

PSPC continues to communicate with bargaining agents, liaise with the Treasury Board of Canada Secretariat for employer guidance and Health Canada for any adjustments to cleaning and building maintenance protocols.

PSPC continues to monitor ongoing research regarding workplace design and is prepared to recommend changes to implementations, if required and supported by science, for reducing the transmission of COVID-19 in workspaces.

Next steps

The department continues its engagement with central agencies, clients and our bargaining agents to collaborate on guidance. PSPC will also continue to advance procedures to ensure healthy and productive work environments for the easing of restrictions and planning a safe return to the workplace in our buildings as guidance evolves.

Logistics support

Context

Prior to COVID-19, Public Health Agency of Canada’s (PHAC) National Emergency Strategic Stockpile (NESS) warehouse network was comprised of [redacted]. The amount of personal protective equipment (PPE) that has been ordered in response to COVID-19 is well beyond the existing PHAC capacity to receive and store supplies.

Suggested response

• The health and safety of Canadians is our top priority, and that means ensuring life-saving medical supplies reach our frontline healthcare providers as quickly as possible
• To achieve this goal, multiple partnerships have been implemented to warehouse, inventory and distribute the PPE ordered by Canada

If pressed on PHAC’s role:

• PHAC is maintaining oversight of all equipment being warehoused to ensure supplies are distributed appropriately to provinces and territories

If pressed on Amazon’s role:

• Amazon provided an adapted customer interface that allows provincial and territorial health authorities to request supplies directly
• needs evolved to require shipment of PPE directly to provinces and territories, which went beyond the original agreement. The contract with Amazon was therefore suspended on June 30, 2020

If pressed on request for proposal for national logistics and warehousing services:

• on May 4, to facilitate the intake and distribution of large volumes of PPE and medical supplies, a letter of intent (LOI) / request for information (RFI) notice was posted on the Public Services and Procurement Canada (PSPC) Buy and Sell website to solicit interest from major logistics service providers
• this expression of interest relates to a multimodal logistics solution in Canada, going beyond distribution and includes warehousing and inventory management
• The LOI / RFI closed on May 7, and the review of the expressions of interest resulted in a short-term contract to Groupe Robert to support immediate warehousing needs
• A request for proposals for the longer-term solution was also published on the PSPC Buy and Sell website on July 16, 2020

If pressed on Groupe Robert’s role:

• on May 22, PHAC awarded a contract to Groupe Robert as an immediate temporary measure to store PPE
• subsequently, on June 13, after contacting several firms further to the LOI / RFI, PSPC awarded a contract to Groupe Robert for warehousing, inventory management and transportation needs
• this contract provides [redacted], as well as inventory management, transportation services and a warehouse management system capability to facilitate the reporting and control of the materiel

Background

In response to COVID-19 requirements, NESS entered into short-term leases for [redacted] totalling approximately [redacted].

On April 1, 2020, PSPC signed, on behalf of PHAC, a 1-year contract with Amazon to use their on-line technology for provinces to order material directly. Canada Post and Purolator were delivering the equipment to provinces and territories as a subcontractor of Amazon.

The agreement had primarily been put in place to access Amazon’s easy-to use online interface, which allowed individual health establishments to order supplies directly from PHAC. As provinces and territories requested that PHAC deliver the supplies directly rather than awaiting for orders from them, the requirement evolved beyond what was covered in the Amazon agreement. As a result, the contract with Amazon was suspended on June 30, 2020. Prior to the suspension, only $200,000 was spent under this contract.

A separate agreement between the PHAC and Canada Post allowed for the warehousing of the PPE at Maritime Ontario, a key on-going subcontractor of Canada Post. This warehouse quickly ran out of space. Therefore, PHAC subsequently awarded, on May 22, 2020, a contract to Groupe Robert as a temporary measure while a long-term solution was being developed.

On May 4, 2020, a LOI / RFI was published on Buy and Sell to gather information in relation to a longer-term warehousing, inventory management and transportation solution.

Further to the LOI / RFI process, PSPC awarded a [redacted] to Groupe Robert Inc on June 13, 2020. This contract provides [redacted], transportation capabilities and a warehouse management system capability. It is expected that the actual space available under this contract will be [redacted].

PSPC is currently [redacted] as well as proceeded with a request for proposal for National Logistics and Warehousing Services on July 16, 2020 to provide for warehousing, inventory management and distributions services for the next 2 years, with an option for an additional year.

International competition and export restrictions impacting personal protective equipment procurement

Context

Countries have begun curbing the export of personal protective equipment (PPE), increasing competition for the procurement of these goods. Media has also reported on several instances of medical supplies procured from unfamiliar overseas suppliers not meeting advertised quality standards.

Suggested response

• Our priority is making sure we get safe, effective equipment and supplies into the hands of frontline healthcare workers
• Given the high level of complexity in the global supply chain, ensuring quality of the product Public Services and Procurement Canada (PSPC) is purchasing is extremely important
• We are working closely with our partners around the world, including embassies, as well as with on the ground logistics expertise in the private sector to get these supplies into the hands of health care workers on the front lines of this crisis
• We are taking a multi-pronged approach by purchasing supplies internationally where possible, while at the same time directly supporting Canadian industry to scale-up and re-tool to build domestic capacity
• Our goal is to be over prepared and we are ordering supplies in anticipation of future needs, to ensure they are available for provinces, territories, frontline health workers and Canadians

If pressed on quality-issues of medical supplies:

• we are working with established suppliers and distributors, as well as quality assurance experts, and we have strong processes in place to help ensure that the supplies we receive meet all necessary standards
• in addition, Public Health Agency of Canada (PHAC) has robust testing measures in place, and they are in place for the very purpose of ensuring quality control of these essential products before they go out to provinces and territories
• we have encountered situations where supplies were found to be substandard, and we have acted quickly to address these issues, and to ensure that replacement supplies are rolled out where they were needed most
• these actions include suspending orders with certain manufacturers, and working closely with others to ensure that production issues are identified and corrected as soon as possible
• we must make sure that the equipment that our frontline workers rely on is high quality, so they can stay safe, and keep us safe too

If pressed on international export conditions:

• countries have begun implementing export conditions on the goods critical to combating COVID-19, such as PPE
• this environment has made it increasingly challenging to source and acquire the PPE that Canada needs
• this is why we have been collaborating with provinces and territories on an ongoing basis to identify their needs and establish bulk buys to purchase required equipment, supplies, and services to combat COVID-19

If pressed on charters from China:

• we have started to reduce the frequency of air charters from China as the stockpile of PPE in Canada increases
• task-based air charter contracts remain in place which allow us to ramp-up quickly if demand increases or urgent shipments are required
• significant volumes of PPE including gloves and hand sanitizer are also being transported by sea

Background

Global demand for medical supplies remains high for the fight against COVID-19, and competition remains fierce for their delivery. The federal government is procuring materials from a variety of sources, including from overseas suppliers. In addition to federal supply purchases, provinces and cities are also sourcing their own equipment.

Countries have increased the conditions on the export of face masks, gloves and other medical supplies critical for front-line workers in the fight against the COVID-19 pandemic, resulting in a more time-consuming procurement process. China is the largest supplier of PPE in the world, and global supply was impacted when the country had to shut down its factories earlier this year when the outbreak began. Canada has taken a 2-pronged approach to the acquisition of supplies, by scaling up domestic capacity while seeking to acquire PPE internationally.

The federal government has hired private firms to provide quality assurance before supplies are shipped to Canada, and the federal public health agency does further checks before distributing goods.

Procurement of medical supplies

Context

Public Services and Procurement Canada (PSPC) has been working aggressively with domestic and international suppliers, along with provincial and territorial governments to procure medical supplies and personal protective equipment (PPE).

Suggested response

• We remain steadfast in our efforts to get safe and effective supplies to the frontlines as quickly as possible
• Good progress is being made, despite challenges posed by a highly competitive market and constrained supply chains
• PSPC continues to ramp up procurement efforts domestically and abroad
• We have ordered and received millions of swabs, large amounts of reagent, millions of medical gowns, millions of litres of hand sanitizer, millions of surgical masks and gloves, and the N95 respirators that have passed testing are now being distributed to provinces
• All products we are buying continue to be subject to stringent controls at various points in the process, including testing by the Public Health Agency of Canada (PHAC)

If pressed on hand sanitizer recalls:

• Health Canada is advising Canadians that certain hand sanitizers are being recalled from the market because they contain industrial-grade ethanol that has not been authorized for use in hand sanitizers in Canada
• Health Canada has directed companies to stop the sale of these products and is monitoring the effectiveness of the recalls
• if Health Canada identifies additional products or manufacturers using ethanol that does not meet Health Canada requirements, it will take appropriate action and inform Canadians

If pressed on material shortages:

• the Government of Canada is purchasing supplies from a number of sources and countries, both internationally and domestically
• we are taking an aggressive approach to buying, especially when it comes to personal protective equipment for frontline healthcare workers. This includes:
  • ordering ahead in bulk on behalf of provinces and territories
  • supplementing those orders by purchasing limited-availability supplies that are immediately available
  • ramping up the domestic manufacturing capacity, through the Plan to Mobilize Industry to fight COVID-19, being led by Innovation, Science and Economic Development Canada (ISED)
• this is over and above the efforts provinces and territories are taking to secure their own supply

If pressed on domestic suppliers:

• industry and suppliers have absolutely stepped up and a dedicated team of procurement specialists are actively assessing responses as they come in
• this assessment takes time, but we are completing it as quickly as possible and pursuing all viable leads

If pressed on general request for proposal process:

• PSPC is increasingly using open competitions to procure necessary PPE
• the department has issued numerous competitive processes including for cloth and disposable masks
• these procurements are undertaken to obtain the goods and services that PSPC and other federal departments and agencies need to respond to the COVID-19 pandemic
• they require quick turn-around times and we have seen many companies submit proposals to these tenders. Officials work diligently to review the proposals and award contracts as quickly as possible
• consistent with our commitment to increase the participation of Indigenous companies in procurements related to our COVID-19 response, there are currently 2 active tenders (1 for cloth masks and 1 for non-medical disposable masks) which are open only to Indigenous companies

If pressed on PPE for the Government of Canada departments and agencies:

• since March, PSPC has been procuring PPE on behalf of departments and agencies to support maintaining their essential services
• as the country moves toward broader economic and social activity, including a gradual return to the workplace, the government will require access to PPE and disinfectants to ensure the safety of its employees and facilities
• the department has already placed orders for most of the needed goods requested by other departments and agencies

If pressed on Buy and Sell:

• industry and suppliers have responded positively to the call to action. By May 18, we had received more than 26,000 submissions, including nearly 17,000 domestic submissions
• we have contacted nearly all domestic companies who submitted forms, and continue to reach out to those submitting forms
• given the progress we have made to secure vast quantities of PPE, we will gradually be moving toward more typical procurement vehicles, such as competitive processes, moving forward

If pressed on provincial and territorial collaboration:

• from the outset we have been working directly with provincial and territorial governments to ensure that we are capturing their needs, and purchasing supplies with a “Team Canada” approach
• I am in regular contact with my provincial and territorial counterparts to ensure that we are working cohesively and collaboratively, and that they are getting the support they need
• our goal is to be over prepared and we are ordering supplies in anticipation of future needs, to ensure they are available for provinces, territories, frontline health workers and Canadians

If pressed on providing the private sector with PPE:

• our top priority remains protecting the health and safety of Canadians
• our government, in consultation with provinces and territories and industry, is actively exploring opportunities to support organizations beyond the healthcare system in accessing PPE supplies to meet the needs of Canadian workers

If pressed on the supply hub:

• as organizations re-open for business, they need reliable information on how to buy and sell the necessary PPE required to keep themselves and others safe
• on June 9, the prime minister announced the launch of a new web hub to connect organizations with federal, provincial, territorial, and other resources on buying and selling PPE
• buyers will find best practices to keep people safe, where to find PPE for purchase, consumer advice, and additional health and safety resources. For suppliers looking to sell PPE, information includes product specifications, procurement and donation opportunities, and business guidance and programs
• as we continue to engage with our partners and advisory groups, the hub will evolve to include additional resources

If pressed on National Security Exception (NSE) contracting:

• the NSE is invoked to remove procurements from the obligations of Canada’s trade agreements for reasons of national security
• the procurement itself must either be indispensable for national security or indispensable for national defence purposes
• in the case of COVID-19, after the World Health Organization (WHO) declared the pandemic, PHAC made a request on behalf of the federal government that PSPC invoke the NSE with respect to the acquisition of goods and services required in order to respond to the COVID-19 pandemic
• some of the procurements being carried out in response to COVID-19 are being done under a national security exception, meaning that many solicitation documents are not published on Buy and Sell. This allows us to move rapidly as we purchase goods and services to protect the health and safety of Canadians as we face this pandemic

If pressed on treatment of workers:

• Canada recognizes that millions of people are in situations of forced labour worldwide in a multitude of industries. The Government of Canada is not exempt from the risk of purchasing goods that have been made by forced labour
• as outlined in the 2019 National Strategy to Combat Human Trafficking, Canada will launch a national public awareness campaign to raise awareness of human trafficking, including forced labour
• Canada will encourage industry partners to act ethically by implementing changes in their supply chains to prevent and reduce the risk of forced labour
• as one of the first phases of a multi-pronged approach to ensure that federal procurement supply chains are free from human trafficking and labour exploitation, Canada is working to revise the code of conduct for procurement to include expectations for suppliers regarding human rights and labour standards

If pressed on logistics to handle large imports of PPE:

• on May 4, a notice was posted on the PSPC Buy and Sell website to solicit interest from major logistics service providers to facilitate the intake and distribution of large volumes of PPE and medical supplies.
• this notice seeks a logistics solution going beyond distribution and includes warehousing, customs documentation and brokerage, and inventory management in Canada
• the notice closed on May 7, and we are now reviewing the expressions of interest

If pressed on Deloitte:

• PSPC had minimal capacity to identify, screen and support acquisition of COVID-19 related products from suppliers located outside of Canada specifically with an emphasis on China
• PSPC issued a contract with Deloitte to identify, review and support the acquisition of COVID-19 related products from suppliers located outside of Canada with an emphasis on China
• specifically, Deloitte’s contract focused on overseas sourcing, logistics support to track and manage orders and reporting, and help ensure Canada obtain needed PPE items
• Deloitte augmented PSPC’s capacity to identify, review products and support acquisition of COVID-19 related products from suppliers
• Deloitte’s contract also included the establishment of an integrated control tower to track and manage logistics, allocation fulfillment and order tracking and help ensure Canada obtains needed PPE items

If pressed on Fluid Energy labels:

• to assist in the fight against COVID-19, Fluid Energy Group Ltd has retooled their production line to be able to produce hand sanitizer
• the company distributed units of Triton hand sanitizer without all required information on the label
• this hand sanitizer contains technical-grade ethanol, which Health Canada recently authorized on a temporary basis for use in hand sanitizers in Canada to help address the increased demand in response to COVID-19
• Health Canada recently conducted an assessment of the risks and benefits of using specific sources of technical-grade ethanol in hand sanitizers. The department determined that when used as directed and for a limited period, the public health benefits of using hand sanitizers containing approved sources of technical-grade ethanol to limit the spread of COVID-19 outweigh the risks
• the company has contacted all of its customers and is working to correct the labelling issue for any remaining product in stock and has also updated the information posted on its website

If pressed on gowns:

• we remain steadfast in our efforts to get safe and effective supplies of gowns to provinces and territories as quickly as possible
• medical gowns are subject to stringent quality controls, including testing by the Public Health Agency of Canada (PHAC)

If pressed on gown material shortages:

• the Government of Canada is purchasing supplies from a number of sources and countries, both internationally and domestically
• the global demand for medical gowns is high and there is a worldwide shortage in disposable gown material
• ISED has identified Canadian textile manufacturers for the domestic supply of disposable and reusable medical gown materials, including alternative materials such as Canadian manufactured house wrap and air bag materials
• this is over and above the efforts provinces and territories are taking to secure their own supply

If pressed on domestic gown suppliers:

• PSPC has awarded contracts to 16 domestic suppliers for the production of gowns and, through ISED have connected these domestic suppliers with domestic material manufacturers
• delivery of domestically-made gowns started in early May

Background

Deloitte

The sole sourced contract to Deloitte was awarded for $8,625,000.

The contract included the following scope of work:

• the contractor shall provide professional services related to acquisition and supply of materials in support of the Government of Canada’s response to COVID-19

These professional services include, but are not limited to, the following areas:

• establish an integrated control tower to track and manage logistics, allocation fulfillment and order tracking. This includes, but is not be limited to, the following:
  • developing and delivering the stack for logistics and visibility of order queue
  • creating a centralized control tower to track all inbound orders, dates, quantities, quality and logistics for all sourced items
  • monitoring and tracking domestic allocation fulfillment
  • monitoring and tracking factory production fulfillment for pending production. This includes manufacturing plant and traceability to provide insight into knowing which order is at risk and/or likely to be at risk and delivery
  • other related services, as required
• acquire pandemic response supplies from global market. This may include, but is not be limited to, the following:
  • working with PSPC and other resources to identify, screen and support acquisition of COVID-19 related products from suppliers located outside of Canada (with initial emphasis on China)
  • conducting initial screening and review(s) of new supplier solicitations and offers received by the Government of Canada
  • assisting, as an expert resource, in support of negotiations to conclude procurement transactions as required
  • conducting local supplier inspections and plant monitoring in China or other markets, as required
  • other related services
• develop and maintain demand and supply forecasts for pandemic supplies, and associated inventory allocation models. This may include, but is not be limited to, the following:
  • developing a national demand forecast for COVID-19 response materials to support both the health care system and broader public needs
  • coordinating and synchronizing national forecasts with those being developed by provincial and territorial governments and relevant health authorities
  • supporting the development of allocation guidelines for national supplies both inside and outside the health care system
  • other related services
• create screening and qualification process(es) for alternative (not previously qualified) suppliers. This may include, but is not be limited to, the following:
  • developing guidelines and processes to source fit-for-purpose products, including qualifications of newly emergent suppliers
  • developing screening process(es) to identify viable supply sources from new and existing producers that do not have existing regulatory approval from Canada or equivalent regulators
  • other related services
• additional services and taskings may be required as the COVID-19 situation and Government of Canada requirements evolve. Other deliverables required may include, but are not limited to:
  • reports
  • visual aids in the form of deck presentations, info graphics or interactive maps
  • market and financial assessments of supply sources
  • demand forecast models and reports
  • documented processes for new supplier solicitation screening
  • oral briefings
  • research, data and information both qualitative and quantitative
  • other related deliverables, as required

Other support

Through this contract, Deloitte is providing some targeted PPE support work for PHAC, Health Canada, and ISED, to help in the effort to ensure Canada has the necessary products.

PHAC’s extension of the supply chain control tower:

• extend the supply chain control tower to track and manage logistics, distribution, and order fulfillments from product source to the provincial and territorial locations
• process improvement support to enable control tower to handle master data management, inventory control and logistics and distribution
• provide additional, as-and-when required services, relating to and in support of the Government of Canada’s COVID-19 response efforts

Health Canada demand and supply forecasts for PPE:

• developing and maintaining demand and supply forecasts for PPE and associated inventory allocation models
• developing a national demand and supply forecast for COVID-19 response materials to support both the health care system (wave 1) and broader public needs (wave 2)
• developing a model to monitor private sector supply markets to enable planning, procurement and investment decisions
• coordinating and synchronizing national forecasts with those being developed by provincial and territorial governments and relevant health authorities; including providing access to provincial data subject to  permission from provincial and territorial partners
• work with federal government partners to incorporate available data on supply and demand, as well as disease progression
• ongoing steady state support to enhance and maintain the models (wave 3)

ISED N95 respirator research and analysis:

• identify N95 demand scenarios and assessment of potential new supply requirements
• identify shortlist of top three industry proposals with the most credible business plans and potential to address Canada’s supply requirements
• conduct accelerated and more fulsome due diligence on the shortlisted proposals
• provide advice on how procurement and/or support measures could best be structured in order to facilitate project proposals in a manner that respects government’s needs to manage public resources responsibly

Supply hub

On June 9, 2020, the prime minister announced the launch of a new web hub to connect organizations with federal, provincial, territorial, and other resources on buying and selling PPE. For suppliers looking to sell PPE, information includes product specifications, procurement and donation opportunities, and business guidance and programs.

Gowns

Medical gowns are hospital gowns worn by medical professionals as PPE in order to provide a barrier between patient and professional. Whereas patient gowns are flimsy often with exposed backs and arms, PPE gowns cover most of the exposed skin surfaces of the professional medics.

There is a very high demand for gowns globally. Material usually used for the production of gowns is being diverted to the production of masks. Manufacturers are proposing alternative material for the production of gowns in Canada. On the domestic front, there is also great competition amongst the suppliers for the same resources, resulting in an impact on the price.

Product compliance is reviewed against the technical specifications released by the World Health Organization (WHO). All proposed gowns are reviewed by the PHAC technical team. PHAC has implemented a robust quality assurance program. For domestic suppliers, samples are being assessed before production begins and then again once they are delivered to PHAC and prior to distribution to provinces and territories.

In April, Canada was experiencing some delivery delays with gown shipments, however the delivery of domestic gowns started at the beginning of May. With the shortage of material, the global demand for gowns, and the restrictions for physical distancing measures in manufacturing industries, production lines were delayed. With the new restrictions for exporting from China, the customs process is taking longer than anticipated. Imported gowns are now being delivered in low quantities as deliveries by air are affected by the weight of the gowns.

Procurement of COVID-19 vaccines

Context

Public Services and Procurement Canada (PSPC) is working with the Public Health Agency of Canada (PHAC), Health Canada and Industry, Science and Economic Development Canada, along with the COVID-19 Vaccine Task Force to prepare for the procurement of COVID-19 vaccines and related supplies.

Suggested response

• The Government of Canada is committed to fighting COVID-19 through various strategies, including vaccination
• The government is developing a plan that will expand our ability to manufacture a vaccine here in Canada, as well as partnering with international vaccine developers to provide vaccines to Canadians
• The COVID-19 Vaccine Task Force is reviewing potential candidate vaccines and we are closely monitoring what other nations are doing
• We have initiated discussions with international manufacturers with promising candidate vaccines

If pressed on advance purchase agreements:

• getting access to an effective vaccine is our top priority
• we will continue to support domestic manufacturing of the vaccines. When dealing with international candidates, we will look for ways to leverage Canada’s own manufacturing abilities
• we have already had early discussions with a number of international manufacturers and we will identify and pursue the most promising in order to secure access to these vaccines

If pressed on provincial and territorial collaboration:

• from the outset the Government of Canada has been working directly with provincial and territorial governments to ensure that we are considering their needs
• we are regular contact with provincial and territorial counterparts to ensure that we are working cohesively and collaboratively, and that they are getting the support they need

If pressed on material shortages:

• the Government of Canada is purchasing supplies from a number of sources and countries, both internationally and domestically
• we have entered into contracts for materials such as syringes and needles to ensure sufficient supplies to support immunization clinics
• this is over and above the efforts provinces and territories are taking to secure their own supplies

If pressed on national security exception (NSE) contracting:

• The NSE is invoked to remove procurements from the obligations of Canada’s trade agreements for reasons of national security
• In the case of COVID-19, after the World Health Organization (WHO) declared the pandemic, PHAC made a request on behalf of the federal government that PSPC invoke the NSE with respect to the acquisition of goods and services required in order to respond to the COVID-19 pandemic
• Some of the procurements being carried out in response to COVID-19 are being done under a national security exception, meaning that many solicitation documents are not published on Buy and Sell. This allows us to move rapidly as we purchase goods and services to protect the health and safety of Canadians as we face this pandemic

Procurement of serologic tests

Context

The Government of Canada launched the COVID-19 Immunity Task Force to measure the scope of coronavirus infection in Canada and provide information needed to manage the pandemic and safely get Canadians back to work.

Suggested response

• The Government of Canada is committed to determining the extent of COVID-19 immunity in the population and in subgroups such as healthcare workers, the elderly and Indigenous populations
• The department has begun procuring serologic tests that are designed to help identify how widely the virus has spread in Canada and provide reliable estimates of potential immunity and vulnerabilities in Canadian populations
• The department has procured 200,000 tests as well as equipment and lab consumables to support the Immunity Task Force and we are working to have these items delivered as quickly as possible
• Procured items began to arrive June 19th 2020. There is sufficient supply of all required items with no risk of shortage

If pressed on funding and funds spent:

• the Government of Canada approved the use of up to 300 million dollars to support activities related to serological surveillance and research in Canada under the direction of the COVID-19 Immunity Task Force. This includes funding for the procurement of serology tests and related items

If pressed on why there are only orders for the Abbott platform:

• a total of 200,000 Abbott Laboratories serological test kits have been procured to support serological studies conducted under the auspices of the COVID-19 Immunity Task Force
• as demand for serology tests increase, the Government of Canada will procure additional Health Canada approved tests and related equipment as requested by the task force
• Abbott Laboratories has a strong supply chain and currently there is sufficient supply of all required items with no risk of shortage

Background

Serology testing (collecting and testing blood samples for antibodies to SARS-CoV-2) of large numbers of people will provide the data needed to understand the scale of infection in the Canadian population.

This approach will help us capture not only symptomatic individuals, but also asymptomatic or mildly symptomatic people who we are not aware of, as they did not seek healthcare. The importance of coordinated, rapid and representative national surveys cannot be understated. They provide critical information on the current spread of COVID-19, and help us prepare for possible future waves of infection, both in the general population or vulnerable groups.

Knowledge of the level of immunity in the general population, and in at risk populations such as the elderly and healthcare workers, will guide important public health decisions and immunization strategies once a vaccine becomes available. Serological testing is the key to developing this knowledge.

The COVID-19 Immunity Task Force aims to catalyze, support, and, where appropriate and feasible, harmonize the design and rapid implementation of population-based studies that will generate first estimates of COVID-19 immunity, overall and in priority populations across Canada. Public Services and Procurement Canada is working in close collaboration with the Immunity Task Force to identify any required procurement.

The task force will deliver a coordinated serologic survey agenda, and rapidly provide results to federal, provincial and territorial decision-makers as the basis for managing the COVID-19 epidemic in the near and medium term.

On May 12th, 2020, Health Canada authorized the first of a number of anticipated commercial serological tests for COVID-19, which will allow the COVID-19 Immunity Task Force to focus on processes to initiate testing of samples in the serosurvey studies.

Rent relief measures for federal building occupants

Context

Public Services Procurement Canada (PSPC) has put in place measures to alleviate financial pressure on its commercial tenants during a period of low-building occupancy brought on by the COVID-19 pandemic.

Suggested response

• PSPC is committed to providing its building occupants and employees with healthy and productive work environments
• The department has taken steps to allow tenants to defer their rent payments for a 3-month period effective April 1, 2020, for those businesses whose income has been affected by the COVID-19 containment measures 
• On April 24, 2020, the prime minister also announced additional details regarding the Canada Emergency Commercial Rent Assistance (CECRA) Program aimed at commercial property owners who are experiencing financial hardship during April, May, and June
• PSPC is committed to continue implementing measures, in alignment with guidelines provided by the Treasury Board of Canada Secretariat (TBS) that support a whole-of-government approach

Background

Given the health and safety measures put in place to contain COVID-19, buildings under PSPC’s management are largely empty. As a result, commercial tenants may have experienced reductions in their business volumes.

In line with March 31, 2020, guidance from TBS on rent relief to external tenants, PSPC has taken steps to allow tenants to defer their rent payments for a 3-month period effective April 1, 2020, for those businesses whose income has been affected by the COVID-19 containment measures. To date, rent deferrals were sought by 126 tenants for a total of $1.4 million for the 3-month period.

On April 24, 2020, the prime minister announced that the federal government had reached an agreement in principle with all provinces and territories to implement the CECRA targeted for small businesses and non-profit organizations. This program will lower rent by 75% for businesses that have been affected by COVID-19 for a 3-month period (April to June 2020).

On April 25, 2020, TBS assistant comptroller general sent a communique stating that, although CECRA does not apply to PSPC, as a custodian, it is required to ensure a whole-of-government approach to the implementation of the program. As such, custodians are expected to extend similar flexibilities to provide eligible tenants with appropriate rent relief. TBS’s guidance will follow to ensure a consistent approach. Based on expected program criteria, it could equate to a total rent relief of up to $2.8 million (75% of $3.6 million in revenues from 327 leases).

COVID-19 Supply Council

Context

The Government of Canada has created a COVID-19 Supply Council which brings together a diverse group of leaders to provide the government with advice on the procurement of critical goods and services required as part of Canada’s COVID-19 response and recovery.

Suggested response

• The Government of Canada has created a COVID-19 Supply Council which brings together a diverse group of leaders to provide the government with advice on the procurement of critical goods and services to fight the pandemic
• The council will provide advice on building innovative and agile supply chains for goods in common use, such as masks, gloves and disinfectants. It does not discuss specific Government of Canada procurement processes
• We continue to support Canadians and take the necessary steps to supply Canada with the goods and services to combat COVID-19

If pressed on the departure of a council member:

• the COVID-19 Supply Council has no role in the Government of Canada’s procurement processes or contract awards
• the council is in place to provide advice on the federal government’s work to build up Canada’s supply of personal protective equipment and medical supplies in response to this pandemic
• in the interest of ensuring the transparency of the council’s function, and out of an abundance of caution, a member has withdrawn from the council
• the council will continue to provide valuable advice on building innovative and agile supply chains, including with respect to production, sourcing, shipping and distribution strategies as the situation surrounding COVID-19 continues to evolve

If pressed on the registration of council members on the lobbyist registry:

• council members were selected because they are leaders in the private and not-for-profit sectors. This inherently means that many will have interests in matters of public policy, which may have required their registration on the lobbyists registry
• the supply council itself has no involvement in decisions related to legislative proposals, policy or program design, awarding of financial benefits, or awarding of contracts on behalf of the federal government

Background

The council will provide advice on building innovative and agile supply chains for goods in wide use such as masks, gloves and disinfectants, including production, sourcing, shipping and distribution strategies as the situation surrounding COVID-19 continues to evolve. It is an advisory body reporting to the minister of Public Services and Procurement, who serves as the chair of the council. The council held its first meeting on Friday, May 8, 2020. The council consists of 16 members from across the public, private and non-profit sectors.

Membership

The following is a list of the COVID-19 Supply Council members:

• Bramwell Strain, President and Chief Executive Officer (CEO) of the Business Council of Manitoba
• Dave McHattie, Vice President, Institutional Relations Tenaris Canada; Chair of the Board of Canadian Manufacturers and Exporters
• The Honourable Perrin Beatty, Progressive Conservative (PC), Order of Canada (OC), CEO and President, Canadian Chamber of Commerce
• Tabatha Bull, President and CEO of the Canadian Council for Aboriginal Business
• Diane J. Brisebois, President and Chief Executive Officer of the Retail Council of Canada (RCC)
• Tina Lee, CEO, T&T Supermarkets
• Christine Hrudka, Chair of the Canadian Pharmacists Association
• Jodi Hall, Chair of the Canadian Association of Long Term Care; Executive Director, New Brunswick Association of Nursing Homes (NBANH)
• Sue Paish, CEO, Digital Supercluster and leads BC Supply Hub
• Eric Edmondson, President and CEO, AirGeorgian; Chair of the Board of the Air Transport Association of Canada
• François Laporte, President of Teamsters Canada
• Joyce Carter, President and CEO of Halifax International Airport Authority (HIAA); Elected Chair of the Canadian Airports Council (CAC)
• Stephen Laskowski, President, Canadian Trucking Alliance (CTA)
• Sylvie Vachon, President and CEO of the Port de Montréal
• Conrad Sauvé, President and CEO of the Canadian Red Cross
• Paulette Senior, President and CEO, Canadian Women's Foundation

Members were selected for their expertise and leadership in their respective fields and their work on the council will be on a voluntary basis. The council will be convened until the end of 2020, a term that the minister can extend if circumstances require it.

Tabling of Supplementary Estimates A 2020 to 2021

Context

The 2020 to 2021 Supplementary Estimates (A) were tabled in Parliament on June 2, 2020. Items anticipated to attract interest include COVID-19 related procurement funding, funding to continue support for the Government of Canada’s pay system, and investments in the National Capital Commission (NCC).

Funding for COVID-19 procurement

• Funding of $500 million was provided to Public Services and Procurement Canada (PSPC) to meet expected needs related to the COVID-19 pandemic by expanding its procurement scope and to purchase supplies without unnecessary delays
• This funding will allow PSPC to be pro-active and aggressively acquire critical goods and services, such as personal protective equipment and health supplies, for a broad range of essential sectors with urgent needs as a result of the COVID-19 pandemic
• This funding will also be used to prepare against future uncertainties relating to COVID-19 by ensuring market availability and establishing an excess of supply

Continued support for the Government of Canada’s pay system

• PSPC is seeking access to $203.5 million in voted appropriations in 2020 to 2021 [redacted] to continue to eliminate the backlog of pay issues for public servants and continue delivering and stabilizing pay for the Government of Canada
• The Government of Canada is committed to supporting employees and resolving public service pay issues as quickly as possible
• To continue progress on this front, PSPC sought additional funding to continue efforts to eliminate the backlog of pay issues for public servants, maintain measures to deliver pay and support employees, and stabilize pay for the Government of Canada
• This new funding will primarily help to eliminate the backlog and to stabilize the pay system. To do so, we will:
  • sustain employee capacity
  • increase our processing rate
  • increase the automation of as many transactions as possible through system enhancements
• Since the launch of Phoenix, PSPC implemented a series of measures focused on stabilizing the pay system. These include increasing the compensation workforce, providing employees with greater support through our Client Contact Centre, introducing the pay pods model, and implementing technical fixes that have improved payroll processing, such as increased automation of transactions
• As a result, over the past 2 years the Pay Centre's backlog of transactions with financial implications has been reduced by more than half
• We have a series of changes planned to further adapt the pay system to the complex needs of the public service
• In addition to efforts underway, we are working closely with all stakeholders, including experts, federal public sector unions and the private sector for innovative solutions to accelerate pay stabilization
• We continue to regularly share information on progress with employees and Canadians through various platforms and tools

National Capital Commission funding

The NCC is seeking approval to access $52.4 million:

• this investment in support of critical repair and maintenance work will assist the NCC in ensuring that major infrastructure assets remain safe, resilient and enjoyable for current and future generations of residents and visitors to the National Capital Region. Examples include the maintenance and rehabilitation of NCC’s 2 interprovincial bridges, and repairs to assets damaged during the spring 2019 floods
• we will continue to work with the NCC, its partners and stakeholders to ensure that infrastructure and other valuable federal assets are restored and maintained to meet the needs of Canadians
• examples of major projects that will be completed with these funds include:
  • Portage and Champlain Bridge maintenance and rehabilitation
  • flooding damage repairs
  • park rehabilitation (Nepean Point; Jacques Cartier Park, etc.)
  • deferred maintenance of rental properties

Background

The Supplementary Estimates adjust the Government of Canada’s in-year expenditure plan as set out in the Main Estimates, usually to account for unforeseen or additional requirements that were not sufficiently developed in time for inclusion in the Main Estimates or for which a source of funds was not yet identified.

The 2020 to 2021 Supplementary Estimates (A) were tabled in Parliament on June 2, 2020.

Funding for COVID-19 procurement

Funding of $500 million is being sought by PSPC to meet expected needs related to the COVID-19 pandemic by expanding its procurement scope and to purchase supplies without unnecessary delays.

Government of Canada pay system

In addition to the $203.5 million in voted appropriations sought in 2020 to 2021 to support the Government of Canada’s pay system, PSPC’s Supplementary Estimates A page proof includes the Employee Benefit Plan (EBP) of $41.6 million [redacted].

National Capital Commission investments

• The NCC is seeking approval to access $ 52,404,000
• Examples of major projects that will be completed with these funds include:
  • Portage and Champlain Bridge maintenance and rehabilitation
  • flooding damage repairs
  • park rehabilitation (Nepean Point; Jacques Cartier Park, etc.)
  • deferred maintenance of rental properties

[Redacted]

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Date modified:

2023-05-10