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Status Report on Major Crown/Transformational Projects

Long-Term Vision and Plan for the Parliamentary Precinct

Description

In 2007, PWGSC updated the Long Term Vision and Plan (LTVP) for the Parliamentary Precinct. This update was undertaken in conjunction with the Parliamentary Partners (the Senate, the House of Commons, and the Library of Parliament), and established a comprehensive approach for rehabilitating the heritage buildings, providing additional parliamentary accommodations, and creating a secure and welcoming environment for Parliamentarians, staff, visitors, and tourists. It confirmed the Vision and Guiding Principles for the Precinct and the extensive set of Planning and Design Principles created to guide future development. The Vision of the LTVP is to ensure that changes to Parliamentary Precinct occur in a way that balances the evolving functional needs of parliamentarians and other users with the overriding commitment to preserve the historic, environmental and symbolic primacy of the site. A major component of the LTVP Update was the creation of a new Implementation Framework designed to improve results and enhance accountability. This Framework establishes shorter term objectives in the context of the longer term vision and provides a strategy for getting projects underway and completed in an efficient and timely manner.

The Implementation Strategy for the LTVP is composed of a broad Strategic Direction and a series of rolling Five-Year Programs. The Strategic Direction establishes the renovation of the core historic parliamentary buildings — the triad of the West Block, Centre Block and East Block — as the first priority. Since Centre Block cannot be renovated while occupied, the East and West Blocks will be renovated first. This will be done not only to accommodate the interim uses from Centre Block, but also to address the pressing restoration work that is required on these two buildings. This work initiates a series of projects to create interim accommodation for those functions displaced from the East and West Blocks and, in a cascading fashion, triggers further projects required to house those displaced from buildings renovated for interim Parliamentary uses.

The rolling Five-Year Programs establish short term cycles for the approval of specific projects to implement the Strategic Direction. These shorter cycles provide greater flexibility in responding to government and parliamentary priorities, building conditions and current market conditions, and allow for better accuracy in determining functional requirements and establishing project costs and scheduling. Each Five-Year Program is composed of three components:

The Major Capital Program, which includes primary projects necessary to advance the overall objective of restoring the key heritage buildings;

The Recapitalization Program, which includes a series of urgent building interventions (related mostly to exterior masonry repairs), required to ensure the ongoing viability of buildings and address health and safety issues. These projects will be part of the full restoration work that will ultimately be done on these buildings and by undertaking them early will ensure that future projects are less complicated and costly; and

The Planning Program, which includes the development of more refined plans and reliable cost estimates for projects in the next five-year program.

Project Phase

Accordingly, the current five-year program includes projects for each of the three components. The core focus of the Major Capital Program is the stabilization and renovation of the West Block. Other projects will provide appropriate interim space to sustain the operations of Parliament while the West Block is being renovated, and will create interim and permanent facilities that meet the operational needs of Parliament and allow future phases of the LTVP to proceed in a cost-efficient manner. A number of projects have been completed, including renovations at 1 Wellington and the La Promenade Buildings to provide Committee Rooms and Parliamentary office space and the relocation of fourteen House of Commons operational units from the Wellington Building. These completed renovations and relocations allowed for the emptying of the West Block and 180 Wellington Buildings and the start of their major rehabilitation. Bank of Montreal) is also underway.

The Recapitalization Program focuses on the physical state of the buildings in the Parliamentary Precinct, and includes a series of projects for East Block, Centre Block and Confederation Building. These projects will ensure that the key buildings are consistently restored, as required; addressing problems that cannot wait until the major renovation projects can begin. The primary focus of these projects will be the long term restoration of discrete components of the buildings to extend their life.

The Planning Program develops strategies to ensure that all LTVP projects and objectives are executed in a coordinated and timely manner. Planning studies are currently being developed for Centre Block, to ensure that the major rehabilitation of the building can proceed without delay. In addition to planning studies, the Planning Program includes a number of master planning initiatives, such as the West Sector Area Master Plan, the Underground Infrastructure Master Plan, Material Handling and Transportation Master Plan, the Parliament Hill Master Landscape Plan Update, and Blocks 1, 2 and 3 Sector Area Master Plan. Once completed, these documents will be used to coordinate the preparation of more detailed plans and will provide a road map for efficient, coordinated, integrated development through the foreseeable future while preserving the flexibility necessary to respond to changing conditions.

Funding for individual projects within this five-year program will follow the normal approval process for government expenditures and will be approved by Treasury Board on a project-by-project basis.

Leading and Participating Departments and Agencies


Lead Department Public Works and Government Services Canada
Contracting Authority Public Works and Government Services Canada
Participating Departments Senate of Canada, House of Commons, Library of Parliament

Prime and Major Subcontractor(s)

See separate notes for each specific project.

Major Milestones

See separate notes for each specific project.

Project Outcomes

See separate notes for each specific project.

Progress Report and Explanations of Variances

See separate notes for each specific project.

Industrial Benefits

See separate notes for each specific project.

Parliamentary Precinct Project - Wellington Building

Description

The Wellington Building is located at 180 Wellington Street, across from Parliament Hill. It is a six-storey structure first built in 1925 and later enlarged in the 1950's by Metropolitan Life Insurance Company. The House of Commons has been the major tenant since the Crown expropriated the building in 1973. Renovations of the building are required to address health and safety issues, replace obsolete building systems and meet building code requirements. The building has been completely vacated during the renovations. The Wellington Building is part of the Long Term Vision and Plan and will be used for Parliamentary accommodations.

Project Phase

This project is currently in project implementation. The work will be completed in two phases to expedite project delivery. Phase 1, which is currently being implemented, includes interior demolition, asbestos abatement and seismic reinforcement work. Phase 2, which will begin in fiscal year 2011/2012, will include the restoration of the exterior envelope undertaken as advanced work, followed by base building construction and fit-up the interior space. The entire renovation is targeted to be completed in late 2015, and subject to final funding approval.

Leading and Participating Departments and Agencies


Lead Department Public Works and Government Services Canada
Contracting Authority Public Works and Government Services Canada
Participating Departments Senate of Canada, House of Commons, Library of Parliament

Prime and Major Subcontractor(s)


Prime Contractor Design consultant for the Wellington renovation project is
NORR Architects and Engineers Ltd., 175 Bloor Street East, Toronto, Ontario, M4W 3R8
Major Subcontractor(s)

Adjeleian Allen Rubeli (Structural)
75 Albert Street Suite 1005
Ottawa ON K1P 5E7

Fournier Gersovitz Moss and Associates (Heritage)
1435 rue St. Alexandre #1000
Montreal QC H3A 2G4

Phase 1 Construction:
PCL Construction Ltd., 49 Auriga Drive, Nepean, Ontario, K2E 8A1

Amor Construction (Abatement Contractor), 134 Saint Paul Street, Vanier, Ontario, K1L 6A3

OSC Contractors (Demolition contractor), 42 Stafford Drive, Brampton, Ontario, L6W 1L4


Major Milestones


Major Milestone RPP 2010-2011 DPR 2010-2011
Preliminary Functional Program Completed July 2007 Completed - July 2007
Revised Preliminary Project Approval and Phase 1 Effective Project Approval March 2008 Completed - March 2008
Consultant Contract Award August 2008 Completed - August 2008
Final Functional Program October 2009 Completed - January 2009
Final Schematic Design Report October 2009 Completed - Sept 2009
Phase 1 Construction Start April 2010 Completed - May 2010
Phase 2 Effective Project Approval 2012 Completed - March 2011
Phase 1 Construction Completion 2012 2012
Phase 2 Construction Start 2012 October 2011
Phase 2 Construction Completion 2015 2015

Project Outcomes


  Project objectives (expected results) Performance indicators Project outcomes (performance summary)
Long Term Vision and Plan for the Parliamentary Precinct Parliamentarians have safe, modern facilities that support their work and Parliament Hill is restored as the cultural centre of Canada's federal government, to the benefit of all Canadians Under the LTVP First Five-year Program, 2007-2012, 90% of projects are to be delivered on-time, on-budget and on-scope Status:  Of the projects completed in 2010/2011, all were on-time, on-budget and on-scope

Progress Report and Explanations of Variances

A suite of projects to completely empty the Wellington Building are now complete. Fourteen House of Commons operational units were transferred to alternative locations in Crown-owned and leased facilities. Some relocations are temporary, pending completion of the renovation, while others are permanent. Alternative locations include 131 Queen, 155 Queen, 2086 Walkley Road, Confederation Building and 2455 Don Reid Drive in Ottawa and 45 Sacré Coeur in Gatineau.

The design of the renovation for 180 Wellington has been approved by the Senate and the House of Commons, and final contract documents are being developed. Selective interior demolition and asbestos abatement are 50% complete.

The current total project cost is $425.2 million (current dollars, excluding GST/HST). Separate project approval has been received for alternate space at 181 Queen Street and 131 Queen Street.

Industrial Benefits

Several multi-million dollar contracts will be awarded over the seven-year period for building construction, information technology systems, multimedia systems, furniture and other equipment. An estimated 1,500 private sector jobs will be generated by this project.

Parliamentary Precinct Project - West Block

Description

The West Block, located within the Parliamentary Precinct, is the oldest of the parliamentary buildings located on the "Hill". It is a three-storey building that was built in three phases starting in 1859 and completed in 1906. The West Block provides accommodation for Members of Parliament (MPs) and for parliamentary functions and support services.

Project Phase

This project is currently in project implementation. Renovations of the building are required to address health and safety and asset integrity conditions. In order to implement the renovations, the building has been completely vacated, thus requiring the provision of alternate accommodations for the MPs, parliamentary functions such as committee rooms and support services. Consequently, the program of work is being undertaken in two phases.

Phase 1
  1. Emergency stabilization and rehabilitation of towers – complete;

  2. Repairs and conservation of the exterior masonry – construction start in 2011;

  3. Fit-up of alternate accommodations in the La Promenade building and other locations for MPs, committee rooms and support services – complete; and

  4. The permanent relocation of the food production facility for Parliament Hill to a remote site – complete.

Phase 2
  1. Fit-up of space for the relocation of Confederation Room 200 to the former Bank of Montreal building – construction start 2011;

  2. Asbestos abatement, interior demolition, of the West Block building – underway;

  3. General rehabilitation of the West Block building – construction start 2011; and

  4. Associated infrastructure to support legislative functions during the renovation of the Centre Block, including a courtyard infill to accommodate Chamber activities, and provision of a security screening and material handling facility – construction start 2011*.

*Requires additional funding for completion

Leading and Participating Departments and Agencies


Lead Department Public Works and Government Services Canada
Contracting Authority Public Works and Government Services Canada
Participating Departments Senate of Canada, House of Commons, Library of Parliament

Prime and Major Subcontractor(s)


Prime Contractor Design consultant for the West Block renovation and fit-up project is ARCOP/FGM, architects in joint venture, 1244 Ste-Catherine Ouest, 3rd floor, Montreal PQ, H3G 1P1
Prime Contractor Contractor for demolition and abatement at West Block is Ellis Don, 303-150 Isabella St
Ottawa, ON K1S 5P7
Prime Contractor General contractor for the West Block North Towers stabilization and rehabilitation project is L'Unique General Insurance inc., 425, blvd. de Maisonneuve Ouest, suite 750, Montréal (Québec) H3A 3G5 with Verrault, 1080 cote du Beaver Hall, Suite 800, Montreal, Quebec, H2Z 1S8
Prime Contractor Design consultant for the Bank of Montreal rehabilitation project is NORR Architects and Engineers Ltd., 175 Bloor Street East, Toronto, Ontario, M4W 3R8
Prime Contractor Design consultant for the La Promenade fit-up project was KWC Architects Inc. 110 Argyle Avenue, Ottawa, Ontario K2P 1B4; project complete.
Prime Contractor General contractor for the La Promenade fit-up project was Pomerleau Inc., 220-343 Preston St. Ottawa, Ontario,K1S 1N4; project complete.
Prime Contractor General contractor for construction of the Food Production Facility for Parliament Hill was PCL Construction Ltd, 49 Auriga Drive, Nepean, Ontario, K2E 8A1; project complete.
Prime Contractor General contractor for the renovation of 1 Wellington was PCL Construction Ltd, 49 Auriga Drive, Nepean, Ontario, K2E 8A1; project complete.

Major Milestones


Major Milestone RPP 2010-2011 DPR 2010-2011
Revised Preliminary Project Approval June 2005 Completed - June 2005
Partial Effective Project Approval (Phase 1) June 2005 Completed - June 2005
$17.2 million Spending Authority Approved for the development of preliminary design to EPA for West Block, Bank of Montreal, Wellington Committee rooms and project management support services for the program December 2006 Approved - December 2006
Effective Project Approval (Phase 1) February 2007 Approved - February 2007
MPs, parliamentary functions and support services vacate West Block 2010 Completed –
December 2010
Effective Project Approval 2010 Completed - 2010
Major Construction Start 2010 Completed – February 2011
Major Construction Completion 2020 2018*
La Promenade swing space completion 2010 Completed – December 2010
Bank of Montreal 2014 2014
Food Production Facility 2010 Completed – Fall 2009

*Requires additional funding for completion

Project Outcomes


  Project objectives (expected results) Performance indicators Project outcomes (performance summary)
Long Term Vision and Plan for the Parliamentary Precinct Parliamentarians have safe, modern facilities that support their work and Parliament Hill is restored as the cultural centre of Canada's federal government, to the benefit of all Canadians Under the LTVP First Five-year Program, 2007-2012, 90% of projects are to be delivered on-time, on-budget and on-scope Status:  Of the projects completed in 2009-2010, all were on-time, on-budget and on-scope

Progress Report and Explanations of Variances

The West Block Program of work consists of sub-projects involving emergency stabilization of towers and masonry, several interim space projects, major rehabilitation of the building and construction of a courtyard infill.

Stabilization

The work coming to completion is required in order to ensure the most at risk areas of the building envelope are stabilized. The masonry pilot project on the South East Tower of the West Block was completed in 2009. Construction work on the North Towers of the West Block is continuing with masonry and copper roof repairs and will be completed at the end of Summer 2011. The Masonry Wall Investigation and Research Project - conducted with the Intelligent Sensing for Innovative Structures (ISIS) Canada and three Canadian universities – is also complete. The objective was to gain and share leading edge knowledge on seismic reinforcing methodologies for heritage masonry walls. PWGSC constructed masonry wall sections, similar to those used in our Parliament buildings, in the University of Calgary seismic laboratories, in order to simulate seismic events and assess the reaction of various reinforcement methodologies.

Relocation Projects

La Promenade swing space - scope of the project consists of restoring the building and fitting up 62 MP suites and 3 committee rooms for Parliamentarians. This project was completed, under budget, in December 2010.

1 Wellington (the former Canadian Museum of Contemporary Photography) - completed on-time and on-budget in 2010/2011. The facility at 1 Wellington currently provides four committee rooms to the House of Commons. The building was handed over to the House of Commons prior to the start of the Fall Parliamentary session.

144 Wellington (former Bank of Montreal Building) – has been identified as the permanent alternate location for West Block's Confederation Room 200 functions. The concept design has been approved, and the contracts for the start of the rehabilitation work are nearing tender stage. Construction will start in early 2012 and completion is scheduled for 2014.

Food Production Facility - was permanently relocated off-site. Completed ahead of schedule and under budget in Fall 2009.

Rehabilitation Project

In January of 2011, Parliamentarians and their staff were relocated to the newly renovated La Promenade building, leaving the West Block empty so that work could begin. The West Block site has been prepared for construction activity, which has begun with demolition and asbestos abatement. The rehabilitation of the building is expected to be completed in 2018.

Current Treasury Board Preliminary Project Approval is $1,171.3 million (current dollars excluding GST/HST).

Industrial Benefits

Several multi-million dollar contracts will be awarded over a ten-year period for building construction, information technology systems, multimedia systems, furniture and other equipment. An estimated 3,500 private sector jobs will be generated by this program of work.

Government of Canada Pension Modernization Project (GCPMP)

Description

The GCPMP is a major component of PWGSC's Transformation of Pension Administration agenda. The purpose of this project is to renew PWGSC's pension administration systems and services, and transform its business processes to industry standard. This will allow PWGSC to ensure the sustainability of the pension administration function. It will also allow PWGSC to cope with the increasing business volume. Demographic trends indicate that by 2016, approximately 40% of the current public service will have become eligible for retirement. As a result, increasingly large numbers of employees are seeking retirement counselling and want access to capabilities that allow them to analyze their pension benefit options. Similarly, demands for enrolment services are increasing as new employees are hired to replace retirees.

PWGSC's approximately 40-year-old systems and business-process infrastructure for pension administration were in grave need of renewal. The limited capabilities of existing processes and the archaic technology of the legacy systems are severely compromising PWGSC's ability to sustain current service levels. As well, they are severely limiting PWGSC's ability to offer future services that are comparable to the delivery performance and cost-effectiveness industry standards. Although the project is focused on the Public Service Superannuation Act administration, the project is implementing a multi-plan solution that will provide for other pension plans within the public service.

Since July 2007 the project has been completing its Implementation Phase, which is expected to take five years. The project is replacing the current pension systems and business processes with commercial-off-the-shelf software applications and industry-standard business processes. Implementation is proceeding according to the following phased approach, which introduces new systems and functionality over five releases aligned with the centralization of pension services delivery from departments to PWGSC:

New system / functionality and centralized service Target completion date
Release 1.0 - Implementation of Siebel Case Management software and a new Interactive Voice Response System / Centralization of Service Purchase services Completed in February 2009
Release 1.5 - Implementation of enhanced case management applications, including document imaging capabilities / Centralization of Plan Enrolment and Orientation services Completed in January 2010
Release 2.0 - Implementation of software functionality related to the administration of Contributor accounts and Pension Benefits Division Act/ Centralization of services related to Pension Benefit and Survivor Pension Entitlements and Employer Support April 2011
Release 2.5 - Implementation of software functionality related to the administration of Service Buyback and Leave Without Pay / Centralization of Leave Without Pay services November 2011
Release 3.0 - Implementation of software functionality related to the administration of Annuitant accounts and accounting September 2012

Project Phase

The two Transformation of Pension Administration projects, the GCPMP and the Centralization of Pension Services Delivery Project (CoPSDP) are currently in their Implementation Phases and are within 18 months of completion. Implementation activities began in July 2007 and are expected to be completed in September 2012.

Leading and Participating Departments and Agencies


Lead Department Public Works and Government Services Canada
Contracting Authority Public Works and Government Services Canada
Participating Departments Public Works and Government Services Canada

Prime and Major Subcontractor(s)


Prime Contractor HP Enterprise Services (formerly EDS Canada Inc.)
99 Bank St., 6th Floor, Ottawa, Ontario K1P 6B9
Major Subcontractor(s)

James Evans & Associates (JEA)
4th floor, 844 Courtney St.
Victoria, British Columbia V8W 1C4

Vangent Canada Limited
(formerly Pearson Canada Solutions)
169 Colonnade Road, Nepean, Ontario K2E 7J4

Oracle Canada Inc.
50 O'Connor St., Suite 1301, Ottawa, Ontario K1P 6L2


Major Milestones


Major Milestone Date
Project Definition Phase (from Preliminary Project Approval to Effective Project Approval):
Preliminary Project Approval for completion of Project Definition May 2004
Release of draft Request For Proposal May 2004
Consultations with vendors July 2004
Release of final Request For Proposal October 2004
(Release of Request For Proposal was delayed to allow the project to address feedback from consultations)
Close of bidding period January 2005
(Bidding period was extended at the request of the bidders)
Evaluation of bids May 2005
(Completion date was deferred to accommodate the extended bidding period and the larger than expected number of bids)
Preparation of the Treasury Board submission for contract authority / Contract award November 2005 – Contract signed with EDS (now HP)
November 2005 – Vendor began work
(contract award was deferred to accommodate the extended bidding and evaluation periods. Treasury Board approved the contract award to EDS Canada Inc. in October 2005)
Requirements Mapping and Gap Analysis
These activities were rescheduled from original planned date of January 2006 to April 2006 following contract award.
April 2006
Architecture and Design September 2006
Effective Project Approval June 2007 (Completion of the Treasury Board Submission was delayed to accommodate Treasury Board’s request to prepare a single submission for both the GCPMP and the CoPSDP)
Implementation Phase (Effective Project Approval to Close-Out):
Phase 5 – Effective Project Approval Start-Up Activities March 2008
(Final Crown approval and sign-off of vendor deliverables was completed March 2008)

Phase 6 – Design, Construction and Implementation:

  • Release 1.0 – Client Services Basic Case Management and Interactive Voice Response (IVR

  • Release 1.5 – Enhanced Case Management and Imaging

  • Release 2.0 – Replacement of current system and business processes for the administration of active accounts (Contributors)

  • Release 2.5 – Improved business processes and system functionality for the administration of Service Acquisition, Leave Without Pay (LWOP) and Pension Benefits Division Act (PBDA)

  • Software Upgrade

  • Release 3.0 – Replacement of current system and business processes for the administration of retired member accounts (Annuitants) and improvement of Accounting and reporting functionality

  • Basic Case Management completed December 2008

  • Interactive Voice Response completed February 2009

  • Enhanced Case Management completed December 2009

  • Imaging completed January 2010

Phase 7 – Final Maintenance Transition  
Phase 8 – Close-out Phase  

Project Outcomes

The Pension Modernization project is renewing the public service pension administration systems and business processes in order to achieve the following objectives:

  1. Sustainability – Ensure the ongoing sustainability of the Government of Canada’s pension administration services and systems through the replacement of outdated legacy systems and the provision of automation and web capabilities needed to enable the centralization of pension services delivery.

  2. Accountability – Strengthen accountability, governance, and stewardship of pension administration and resources to achieve and maintain greater operational efficiency.

  3. Measurable Results – Ensure the provision of accurate, consistent and timely processing of all transactions and payments.

  4. Streamlined Business Processes – Re-engineer and streamline business processes to improve effectiveness and provide a seamless information flow.

  5. Client Focus – Provide clients with value-added, best-practice services and reporting that offer flexible access and up-to-date information by leveraging the new system’s capabilities to adopt modern service delivery methods and provide industry standard pension administration services to all pension plan members, pensioners and employers.

Progress Report and Explanations of Variances

Effective Project Approval was obtained in June 2007. After almost four years of implementation activities, the project is within budget and implementation is expected to be completed in fiscal year 2012-2013, within eight months of its planned completion.

  • Release 1.0 - Client Services: In February 2009, the project completed its first technology release, as well as the centralization of service purchase. The new Siebel Case Management applications, the Genesys software for the Interactive Voice Response system, and the centralized service are now in full operation in the Government's Public Service Pension Centre, located in Shediac, New Brunswick.

  • Release 1.5 - In January 2010, the project completed its second technology release, as well as the centralization of plan enrolment and orientation services. Pension administration made an important step towards paperless case processing with the implementation of Document Imaging capabilities in the Cheque Redemption and Control Directorate in Matane, Quebec. Scanned images of mail, fax and email case documents and forms are now immediately available to the Pension Centre staff in Shediac. In addition, this release enhanced Case Management functionality in the Pension Centre and expanded the use of the new tools to approximately 600 users.

  • Release 2.0 - Systems and processes to administer active member accounts (including the calculation of estimates) and Pension Benefits Division: Activities for this release began in January 2008, as planned. Design, development and Vendor testing activities for this release have been completed. Client acceptance testing is approximately 85% completed. This release has incurred an overall delay of ~14 months as a result of the carry over of delays with previous releases, increased technical complexity and limited contractor resource capacity, as well as delays in receiving a stable solution from the vendor. Significant progress has been made and the project expects to implement the new solution in April 2011. This delay has resulted in an eight-month delay to the project’s completion date.

  • Release 2.5 - Systems and processes related to Service Buyback and Leave Without Pay. The implementation of Release 2.5 functionality began in September 2009 and design activities were completed in January 2011. Development activities are approximately~ 70% completed. This release has incurred an overall nine month delay due to increased complexity, change requests and the impacts of the Release 2.0 delay. Completion is now expected in November 2011.

  • Release 3.0 - Systems and processes to administer retired member accounts and to perform accounting functions: Implementation activities for this final release began in April 2010 and design activities are ~50% completed. Due to the impacts of the Release 2.0 delay, completion date for Release 3.0 is being planned for September 2012, resulting in an overall eight-month delay to the project.

  • Final project closeout activities will be done in parallel to Release 3.0 and are being planned for September 2012.

Industrial Benefits

A multi-million dollar contract has been awarded for the commercial off-the-shelf software products, as well as for the implementation of the new systems and business processes, support services and ongoing maintenance. The products include Penfax for core pension administration and Siebel for the Customer Relationship Management functions. Implementation of the new solution, business processes and associated business transformation, is the responsibility of the System Integrator, HP Entreprise Services (formerly EDS Canada), to whom the contract was awarded. The implementation is being conducted in several phases over a period of approximately four and a half years (July 2007 to March 2012). During that time, it is expected that there will be some temporary positions required to support the system implementation and business transformation activities in both the National Capital Area and Shediac, New Brunswick. In the long term, the size and responsibilities of the Pension Centre in Shediac, New Brunswick will be more stable as a result of centralization and the modernization of the systems and services.

Transformation of Pay Administration (TPA) Initiative

Description

PWGSC’s Transformation of Pay Administration Initiative was launched in October 2009, after receiving Treasury Board Minister’s approval for the Pay Modernization and Consolidation of Pay Services Projects. These projects will replace the 40-year-old pay system and gradually consolidate pay administration services from departments to PWGSC’s new Centre of Expertise in Miramichi, New Brunswick. The transformation will ensure the long-term sustainability of the Government of Canada pay administration system and services as well as contribute to a more effective and efficient public service, offering better value to Canadians.

The goal of the Pay Modernization Project is to replace the 40-year-old Regional Pay System (RPS) with a modern, commercial, off-the-shelf pay system. Once implemented, the modernized system will establish a platform for more efficient compensation processes. This project will provide a new pay system that will benefit all departments. It will offer extensive Web capabilities for managers and employees of departments using the GC Human Resource Management System such as requesting and approving overtime payments directly through the Web.

The goal of the Consolidation of Pay Services Project is to gradually transfer pay administration services to a Centre of Expertise located in Miramichi, New Brunswick starting in 2011-2012 with those departments using the endorsed Government of Canada Human Resources Management System (PeopleSoft). The consolidation of pay services will contribute to providing more consistent service delivery and continued sustainability of pay services while addressing the high attrition and turnover rates in the compensation community.

Project Phase

The Pay Modernization Project began its Project Definition Phase in October 2009. The Project Definition Phase will take approximately two and a half years.

The Consolidation of Pay Services Project also began its Project Definition Phase in October 2009 which is planned for completion in April 2011. The Implementation Phase of the Project will take approximately five years.

Leading and Participating Departments and Agencies


Lead Department Public Works and Government Services Canada
Contracting Authority Public Works and Government Services Canada
Participating Departments

This Initiative will be delivered by PWGSC ABC branch in partnership with ITSB.

Although there are no participating departments in the Initiative delivery, there are primary stakeholders as follows:

  1. Treasury Board of Canada Secretariat (TBS): TBS, as the employer for the core public administration, according to the Financial Administration Act (FAA) Schedules I and IV, sets compensation policies and negotiates collective agreements with unions representing employees of those organizations.

  2. Separate Agencies: These organizations, named in Schedule V of the FAA, negotiate collective agreements, set compensation policy for their employees, and have primary responsibility to ensure that their employees receive accurate and timely pay and benefits.

  3. Crown Corporations and Other Federal Entities: As the employer, these organizations, named under Schedules II and III of the FAA, or are not listed under a specific FAA schedule, negotiate collective agreements and set compensation policy for their employees.

  4. Departments, Agencies and other Organizations: These organizations have primary responsibility to ensure that their employees receive accurate and timely pay and benefits.


Prime and Major Subcontractor(s)


Prime Contractor

There is no Prime Contractor as the procurement process has not been completed.

The procurement activities for acquiring the Prime Contractor, originally planned for completion by January 2011, will be completed by the end of June 2011.

Major Subcontractor(s)

There is currently a contract with ADGA for Project Management Office (PMO) services for the duration of the project.


Major Milestones

This subsection lists the major milestones associated with the progress of the Pay Modernization and Consolidation of Pay Services Projects.

Pay Modernization Project


Major Milestone Date
Project Definition Phase (from Preliminary Project Approval to Effective Project Approval):
Preliminary Project Approval July 2009
Release of draft Request For Proposal September 22, 2009
Consultations with vendors January 31, 2010
Release of final Request For Proposal June 9, 2010
(Postponed at the request of a Central Agency)
Close of bidding period October 13, 2010
(Bidding period was extended at the request of the bidders)
Evaluation of bids (Completion date was deferred to April 2011 to accommodate the extended bidding period and the complexity of the bid evaluation.)
Contract award (Contract award has been deferred to June 2011 to accommodate the extended bidding and evaluation periods.)
Process Modeling and Fit-to-Standard Analysis  
Effective Project Approval  
Implementation Phase (Effective Project Approval to Close-Out):
Configuration  
Testing  
Pilot  
Deployment  
Project Close Out  

Consolidation of Pay Services Project


Major Milestone Date
Project Definition Phase (from Preliminary Project Approval to Effective Project Approval):
Preliminary Project Approval for completion of Project Definition July 2009
Announcement of region for Centre of Expertise August 2010
(The Prime Minister announced the Transformation of Pay Administration Initiative in August 2010, including Miramichi as the location of the PWGSC Centre of Expertise. The definition phase activities were rescheduled from the original planned date of June 2010 to the dates listed below)
Planning for building, IT connectivity, architecture and access  
Negotiation and timing for transition of each department  
Close of bidding period (Deferred to June 2011)
Evaluation of bids (Deferred to June 2011)
Implementation Phase (Effective Project Approval to Close-Out):
Wave 1 Departments Transition (Deferred to June 2012)
Wave 2 Departments Transition (Deferred to June 2013)
Wave 3 Departments Transition (Deferred to June 2015)
Project Close Out (Deferred to June 2015)

Project Outcomes

The expected project outcomes for the Transformation of Pay Administration Initiative have been divided into 3 types: Strategic, Final and Measured.

Outcome Type Outcome Project / Initiative

Strategic Outcome

GC is employer of choice

Transformation of Pay Administration Initiative

Increased Contribution to PS Renewal/MAF

Transformation of Pay Administration Initiative

Increased stakeholder confidence in Payroll Administration function

Transformation of Pay Administration Initiative

Supports Recommendations of OGGO Report

Transformation of Pay Administration Initiative

Greening Government Operations

Pay Modernization Project

Final Outcome

Increased Pay Administration Sustainability

Transformation of Pay Administration Initiative

Increased GC Operational Savings

Transformation of Pay Administration Initiative

Increased quality of reporting for departments

Consolidation of Pay Services Project

Created simplified CA Organization

Consolidation of Pay Services Project

Eliminated need for departments to keep CAs, space, A-Base, etc.

Consolidation of Pay Services Project

Measured Outcome

Increased employee satisfaction

Transformation of Pay Administration Initiative

Decreased time to train pay administration staff

Transformation of Pay Administration Initiative

Decreased cost to deliver pay administration

Pay Modernization Project

Decreased materiel usage (e.g. paper, mail)

Pay Modernization Project

Decreased work effort for CA's

Pay Modernization Project

Increased pay administration staff retention

Consolidation of Pay Services Project

Increased # of accounts per CA

Consolidation of Pay Services Project


Progress Report and Explanations of Variances

On July 30, 2009, the Treasury Board approved the “Initiative to Fix the Pay System” (Transformation of Pay Administration) which included the Pay Modernization Project with an estimated cost of $192,067,332 (including GST) and the Consolidation of Pay Services Project with an estimated cost of $106,132,817 (including GST).

Pay Modernization Project Definition Phase (in progress)

A Request for Proposal (RFP) to procure a firm to provide Project Management Services was issued, and a contract was awarded to ADGA Group in February 2010.

As a first step in procuring the services of both a Commercial-Off-the-Shelf (COTS) pay solution as well as a System Integrator, a Request for Information (RFI) was developed and posted to industry. The goal of the RFI was to gather information from industry to assist in the preparation of the System Integrator RFP. The information gathered through RFI consultative process was assessed and, where applicable, amendments were made to the draft RFP.

The RFP was published June 09, 2010. The RFP closed on October 13, 2010 after an additional extension of 7 weeks at the request of industry. The contract award for the System Integrator is planned for completion by the end of June 2011. The Treasury Board approved funding for the Pay Modernization Project definition phase in the amount of $36,587,929 million (with GST). The project is currently running under budget due to the extension in the RFP closing date which resulted in delays in dependent activities as well as the fact that the use of contingency funding was not required.

Analysis will be completed in 2011-12 to evaluate the proposed new pay solution against the Government of Canada pay requirements. The definition phase for the modernized pay system and processes, originally planned for completion in April 2012, is now expected to be completed by June 2012.

Consolidation of Pay Services Project Definition Phase (in progress)

PWGSC will gradually transfer pay administration services to a Centre of Expertise within PWGSC for departments using the Government of Canada Human Resources Management System (PeopleSoft) over a five year period starting in 2011-2012. By March 2012, the new Centre of Expertise will start its operations.

In preparation, work has been done to compile and analyze up-to-date workforce data on the Compensation community provided by the Heads of Human Resources from departments and agencies. Based on the workforce data provided, the project team has been working with client departments and agencies to develop a transition plan and adopt a government-wide approach to manage compensation staff during the transition. . Staffing processes have been initiated to fill positions in the Centre of Expertise. In addition to this, a far reaching and inclusive governance framework and a robust communications strategy have been developed. Furthermore, a joint union management consultation committee has been established in collaboration with departments, central agencies and the Public Service Alliance of Canada.

A Service Delivery Model and Concept of Operations have been developed for the Centre of Expertise. The project team has also developed Information Technology and network infrastructure plans and estimates. A Request for Information to identify office space for the initial opening of the Centre of Expertise in Miramichi, New Brunswick has been completed.

The Effective Project Approval submission is planned to be tabled in June 2011.

Industrial Benefits

A multi-million dollar contract will be awarded in 2011-12 for the COTS pay solution and a System Integrator. During the course of the project, it is expected that there will be some temporary positions required to support the solution implementation and business transformation activities.

The Consolidation of Pay Services Project will create 550 new public service jobs in Miramichi, New Brunswick, contributing to improve the local economy.