ARCHIVED - RPP 2006-2007
Public Works and Government Services Canada

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MINISTER'S MESSAGE

Public Works and Government Services Canada (PWGSC)'s Report on Plans and Priorities 2006-07 outlines the key objectives for the department, and how we intend to help the Government of Canada provide quality services to Canadians.

Our department has begun transforming the way the government does business and finding innovative ways to deliver services smarter, faster and at a reduced cost. We are buying smarter, exploring savings in real estate, taking full advantage of information technology and greening government operations. We are taking a whole-of-government approach to program and service delivery. And, we aim to save several billion dollars for taxpayers over a five-year period.

As we begin to deliver on those savings and efficiencies, we have identified four major priorities that will guide our activities over the reporting period: strengthening accountability and transparency, pursuing our business transformation agenda, supporting the government's strategic agenda, and, delivering major projects of national importance, such as military procurement and e-Government.

To do this, we will build on the accountability measures we have implemented including improved internal audit and evaluation functions, coordinated risk management, increased proactive disclosure and better reporting on commitments.

In support of the government's commitments articulated in the Federal Accountability Act and Action Plan, we will pay particular attention to ensuring a fair, open and transparent procurement process. We will make sure that there are improved opportunities for Small and Medium Enterprises in all regions of Canada to compete for government contracts.

Working with Canadians, our partners in government and private sector stakeholders, we will generate savings that can be reallocated to Canadians' other priorities – priorities such as lowering taxes for working Canadians, supporting parents' child care choices, and delivering the health care Canadians need.

Sound management, strong ethics and a profound respect for Canadians' hard earned money are at the core of what we do. I look forward to working with all PWGSC employees to respond to the expectations of Canadians in these areas.

 

Management Representation Statement

I submit, for tabling in Parliament, the Report on Plans and Priorities: 2006-2007 to 2008-2009 for Public Works and Government Services Canada.

This document has been prepared based on the reporting principles and disclosure requirements contained in the Treasury Board Secretariat's Guide for the Preparation of Report on Plans and Priorities in that it presents consistent, balanced, and accurate information to Parliament by:

• Reporting based on the department's approved accountability structure as reflected in its Management Resources and Results Structure (MRRS);
• Providing a basis of accountability for the results pursued or achieved with the resources and authorities entrusted to it; and
• Reporting finances based on approved planned spending numbers from the Treasury Board Secretariat.

I. David Marshall
Deputy Minister of Public Works and Government Services

 

Section I - DEPARTMENTAL OVERVIEW

Our Raison d'être

Our raison d'être is to ensure optimum value to the government and to Canadians in the provision of common, central and shared services. Through the delivery of our core services, Public Works and Government Services Canada (PWGSC) enables other government departments and agencies to deliver on their mandates.

PWGSC's Value Proposition

PWGSC focuses on what Canadians, our clients and key stakeholders, have said they value. The following has become the PWGSC Value Proposition.

• Strengthening Management and Public Confidence - PWGSC will operate with appropriate checks and balances to strengthen public confidence in government operations by improving accountability, efficiency and transparency of our operations. Further, we are committed to reducing waste, maintaining internal management tools to monitor our performance, ensuring proper comptrollership and enhancing a culture based on values and ethics.
• Increasing Savings and Productivity - As the common, central and shared services provider for government, PWGSC will respond to the needs of government and devise strategies to yield significant savings and productivity improvements on behalf of client departments and Canadians.
• Delivering Transformed Quality Services - PWGSC will deliver quality goods and services to our clients, at the right quantity, price and time. In so doing, we will educate our stakeholders and devise frameworks to strike a balance among their needs and those of government as a whole.
• Supporting the Government's Strategic Agenda - PWGSC will support government-wide priorities, such as those articulated in the Federal Accountability Act and Action Plan, by providing sound management of government polling and advertising, supporting a Procurement Auditor to ensure that government procurements are fair and transparent, and ensuring that Small and Medium Enterprises receive due consideration for government contracts. PWGSC is also committed to leading government-wide efforts in the greening of its operations.
• Delivering Major Projects of National Importance - PWGSC will provide professional and results-oriented capacity for managing and delivering complex and high-value projects of national importance.

Our Business

PWGSC has an annual budget of $4.5 billion and employs approximately 12,000 people. Where appropriate, PWGSC takes a government-wide approach to facilitate innovative solutions to the complex challenges that it faces.

PWGSC Business Highlights Accommodates almost 235,000 public servants across Canada and manages over 6.7 million square metres of space in some 1,840 locations. Administers annual payments in excess of $460 million under the Payments in Lieu of Taxes Program to approximately 1,300 local taxing authorities. Purchases over $10 billion worth of goods and services and manages 60,000 transactions annually. Provides 130 federal government services on-line including secure e-Government services. Handles $1.3 trillion in Receiver General cash flow, involving 230 million payments in 200 countries. Administers compensation for 293,000 government pay accounts and 324,000 pensioner accounts. Provides $100 million in consulting and audit services. Provides $260 million annually in translation and interpretation services in approximately 100 languages. Provides $150 million in telecommunications and informatics service.

PWGSC is the government's principal real property manager, central purchasing agent, banker and accountant. It provides services in the areas of payroll and pensions, information technology, translation, audit, communications and consulting. PWGSC is also responsible for leading the greening of government operations, with initiatives such as environmentally-friendly "green" procurement.

PWGSC provides its services in a professional, innovative, efficient and effective manner. The management of public funds is safeguarded by transparent and independent checks and balances.

The department's Program Activity Architecture (PAA) is based on two strategic outcomes, namely Quality Services and Sound Stewardship.

Quality Services: PWGSC provides common, central and shared services to client departments and agencies.

Sound Stewardship: PWGSC aims to achieve best value for the taxpayer by exercising quality assurance and maintaining service integrity.

Our Expenditure and Savings Summary

The PWGSC Expenditure Summary for 2006-09 (Figure 1) presents the expenditures for PWGSC (i.e., Government Services Program) by our eight key government service areas: Real Property; Acquisitions; Information Technology; Receiver General and Public Service Compensation; Government Information and Consulting; Office of Greening Government Operations; Business Integration; and Special Operating Agencies.

In addition to the standard delivery of its services, PWGSC is committed to leading a government-wide effort to reduce the cost of procurement and real property. Over a five-year period, PWGSC is planning and leading initiatives expected to produce $3.4 billion in government-wide savings. Procurement and Real Property will be the primary generators of these savings. Approximately $2.5 billion and $925 million in savings are projected from Procurement and Real Property respectively.

		Figure 1		PWGSC Expenditure Summary for 2006-09
		Government Services Program		Raison d'être---to ensure optimum value to government and Canadians in the provision of common, central and shared government services
		Strategic Outcomes		Quality Services Sound Stewardship
		Government Service Note: See Section III for financial details.		Service Planned Spending ($ millions)   2006-07 2007-08 2008-09 Real Property 2,264 1,948 1,776 Acquisitions 194 181 184 Information Technology 153 144 144 Receiver General and Public Service Compensation 185 184 185 Government Information 50 47 47 Greening of Government Operations 1 1 1 Business Integration 15 17 17 Special Operating Agencies 54 57 57 Pre-Adjustment Total Spending 2,916 2,579 2,411 Adjustments 17 17 16 Total Spending 2,933 2,596 2,427 Total FTE's 12,043 11,919 11,868
	Totals may not add up due to rounding.

 

Figure 2

Government-wide Potential Net Savings

Priority (New Saving)	2005-06	2006-07	2007-08	2008-09	2009-10	Total
Real Property	150	150	170	255	300	1,025
Acquisitions	59	184	513	711	748	2,215
Shared Travel Services Initiative		20	85	130	140	375
Investments	(32)	(58)	(46)	(28)	(26)	(190)
Total per Year	177	296	722	1,068	1,162	3,425
Note: The achievement of $3.4 billion in government-wide savings will require the full commitment of our colleague departments and policy-making agencies. Numbers have been rounded to the nearest million.

Figure 2 provides a summary of these expected savings, and of the investments that will be needed to generate them.

To achieve these savings, PWGSC plans to invest up to $190 million over five years in initiatives to support procurement and real property transformation. Additional expertise, as well as policy, regulatory and legislative changes will be needed to implement these initiatives and support the planned, government-wide savings.

Our Challenges

PWGSC must operate with appropriate checks and balances, and strengthen public confidence in government operations by reducing waste and by improving accountability, transparency and integrity. These challenges involve demonstrating that we have the internal management tools to monitor our performance, ensure proper comptrollership, and enhance a culture based on value and ethics.

PWGSC operates in a complex environment that is largely shaped by the government's priorities. PWGSC, with our client departments, must support public sector transformation. Government has become more horizontal and integrated. A challenge for PWGSC is to be an active contributor with other departments to whole-of-government strategic outcomes. In particular, PWGSC has a central role in achieving the government-wide objectives relating to modernization of public sector management. PWGSC must secure active participation from central agencies and colleague departments for successful delivery of the savings identified in the PWGSC-led, government-wide business transformation agenda, called The Way Forward.

PWGSC must emphasize client relationship management and best practices, if it is to respond in a more timely and effective manner to meet the needs of client departments and agencies. Canadians expect efficient and effective programs and operations that realize government-wide savings, while at the same time ensuring accountability, transparency and integrity.

Our Employees

Successful organizations know that the best plans are useless without knowledgeable, skilled, talented and motivated people to drive their success. In today's fiercely competitive marketplace, it is not enough to have a compelling business model and well planned strategies. Having a workforce strategy in place that is well connected to your business strategy is important.

Therefore, PWGSC will continue to build and improve Human Resources Management (HRM) in the spirit of the Public Service Modernization Act. We will continue to consult and work in partnership with our unions, support and foster early, informal workplace conflict resolution and improve integrated, business-based HRM Planning in a fair, transparent and effective fashion.

PWGSC will undergo significant changes over the next three years while striving to implement innovative ways to deliver services smarter, faster and at a reduced cost. Our ability to continue to efficiently provide high-quality services depends on having a work force that is productive, principled, sustainable and adaptable while providing a fair, enabling, healthy and safe workplace.

Given the many HRM challenges we face from The Way Forward, a departmental HRM Plan was developed. It focuses on the following principles:

• Develop first, and then recruit if necessary, professional and management competencies;
• Ensure employment continuity in the Public Service, or elsewhere, to the greatest extent possible; and
• Focus on people and monitor progress against the HRM elements of the Management Accountability Framework (MAF) including the People Component of the MAF (PCMAF).

Each principle outlines specific strategies, actions and accountabilities to support PWGSC and its branches in successfully implementing The Way Forward and in effectively managing employees on an ongoing basis to ensure continuing progress on HR issues such as learning, diversity, union-management relations, and official languages.

Our Priorities

To meet the challenges facing PWGSC, we have established the following four priority areas for 2006-07:

1. Strengthening Accountability and Transparency;
2. Business Transformation Agenda;
3. Supporting the Government's Strategic Agenda; and
4. Delivering Major Projects of National Importance.

1. Strengthening Accountability and Transparency

Canadians expect their tax dollars to be linked with results to ensure value-for-money, and they expect the Government of Canada to pursue policies and programs that respond to public priorities. They expect government programs to operate in an open, transparent and accountable manner. They want assurances that government programs and services are well managed and give good value for their tax dollars. PWGSC has built a solid foundation and is continuing to work to increase capacity in ethics, audit and risk management, while implementing the government's management agenda.

In particular, PWGSC will make an important contribution to the implementation of the Federal Accountability Act and Action Plan by acting upon provisions in the Act in the area of government polling and advertising, and government procurement.

In addition, PWGSC, is one of the first departments to introduce an Ethics Program, that includes a Ten Point Integrity Plan that sets out the department's commitment to: strengthen ethical practices; hire Ethics Officers in every branch and region; link accountability with integrity and performance pay; and, expand ethics training throughout the department. In 2006-07, the department commits to further progress in its Ethics Program. The Statement of Values is being refocused to better reflect the principles and objectives of the business transformation agenda. The department plans to engage suppliers in a discussion on the role of values and ethics in managing their business relationships with PWGSC.

In line with the priorities of the Office of Comptroller General, PWGSC continues to strengthen its internal audit capacity, including increasing the independence of the Audit, Assurance and Ethics Committee with external members. In addition, the Office of the Chief Risk Officer (OCRO) provides advice directly to the Deputy Minister and to the department's senior management team on risk-related issues. OCRO acts as a focal point in managing risks within the department and plays an active role in identifying and managing risks within PWGSC. As well, a Chief Financial Officer position was established (subject to TB approval) to provide financial advice independently from any program or service responsibility.

In 2006-07, the department will:

• Collaborate with Treasury Board Secretariat (TBS) and the Office of the Comptroller General on the implementation of the TB Policy on Internal Audit that took effect on April 1, 2006;
• Support the establishment of the Procurement Auditor function - it is proposed that the Auditor will be responsible for:
  • reviewing procurement practices across government;
  • reviewing certain complaints;
  • managing an alternative dispute resolution process; and
  • tabling an annual report in Parliament;
• Introduce a Code of Conduct for Procurement that will consolidate the government's existing suite of conflict of interest and anti-corruption policies, and will apply to both suppliers and public service employees;
• Develop a new vendor performance policy for procedures and standards for evaluating vendor performance in various commodity and service lines as well as improving dispute resolution processes;
• Enhance the implementation of the Management Accountability Framework;
• Strengthen oversight and transparency of operation of programs and services with actions such as proactive disclosure of contracts over $10,000, and post travel and hospitality expenses of senior departmental officials;
• Enhance risk, audit and evaluation management;
• Implement a Financial Management Framework; and
• Proactively manage, co-ordinate, and support PWGSC's and the Government of Canada's roles and actions associated with the former Sponsorship Program by:
  • providing documents and managing the payment of legal fees;
  • supporting the financial recovery of frauded funds; and
  • assisting the Royal Canadian Mounted Police and the Sûreté du Québec with their investigations.

2. Business Transformation Agenda

Generating government-wide savings of $3.4 billion and improving management are the central components of PWGSC's transformation agenda. We are leading a major government-wide business transformation aimed at finding innovative ways to deliver services smarter, faster and at reduced cost in the areas of real property, procurement and Information Technology (IT) while leading the government's efforts to green its operations. This transformation has the following objectives:

• Finding savings and process efficiencies across government to be reallocated to higher government priorities; and
• Improving accountability and transparency of government management systems by delivering programs and services that demonstrate results and show Canadians that they are getting value for their money.

The Way Forward – PWGSC's Contribution Overall, PWGSC will contribute approximately $1.2 billion or 35% of the total government-wide savings of $3.4 billion over 5 years. Other PWGSC productivity gains are expected to generate up to $24 million in savings over the next two years.

Specific initiatives to achieve this transformation occur in the following core areas:

• Acquisitions Transformation (Buying Smarter);
• Real Property Renewal; and
• IT-Shared Services.

PWGSC has created a Strategic Transformation Branch to establish a more results-oriented approach to transformation, and to strengthen departmental co-ordination and monitoring of our core business transformation activities.

Throughout the business transformation process, PWGSC is committed to supporting government programs and priorities by delivering ongoing quality services to client departments and agencies in the right quantity, price and on time.

Acquisitions Transformation (Buying Smarter)

PWGSC, the central purchaser for the government, buys on average over $10 billion in goods and services annually. This represents about 80 per cent of government purchases involving more than 60,000 transactions. The acquisitions program is shifting from managing on a transactional basis to the provision of strategic management and oversight of the procurement process.

In May 2005, legislative changes gave the Minister of PWGSC expanded authority and responsibility for the acquisition and provision of services, including construction services, for departments and agencies. PWGSC will continue to work with TBS to establish the necessary conditions to bring these authorities into force. Government-wide commitment is a key condition for success in order to achieve the bottom line savings target. Implementation of the government-wide procurement strategy also requires keeping in mind other factors such as sustainable development, Aboriginal economic development and the impacts of procurement on Small and Medium Enterprises, and the regions.

Government procurement will be managed in such a manner as to promote greater accountability and transparency as called for in the Federal Accountability Act and Action Plan.

PWGSC – Acquisitions Departmental Act amended to give the Minister of PWGSC full and exclusive responsibility for procurement of goods and services. Procurement includes market research, product planning and the soliciting, evaluating, selecting, negotiating, issuing and administering of contracts. PWGSC's role involves ensuring contracts are successfully executed in accordance with agreed terms of time, cost and performance. PWGSC contracts represent about 9% of the total number but 89% of the government procurement value. Top commodities include: General purpose computers and software; Information processing and telecommunications services; and Communications equipment and publishing.

PWGSC will:

• Ensure that government procurements are fair and transparent;
• Achieve government-wide acquisition savings of $2.5 billion over five years beginning in 2005-06;
• Use its consolidated purchasing power to drive innovation and increase productivity within the economy;
• Improve procurement by reducing the transaction times by 50% and administration costs by 10%;
• Establish Interdepartmental Commodity Councils to develop government-wide procurement strategies tailored for key commodities;
• Implement an automated electronic purchasing and data tracking system; and
• Facilitate ongoing participation of Small and Medium Enterprises (SMEs) in federal government procurement opportunities.

Real Property (RP) Renewal

The Real Property Renewal Strategy emphasizes a government-wide approach to improved planning and management, increased efficiencies in service delivery, as well as cost-effective, environmentally-friendly management of the portfolio. In the long-term, our objective is to achieve a net savings of $925 million over five years, with over 90% of these savings from PWGSC's reference levels.

Real Property will commence implementation of an enterprise-wide business transformation agenda by developing and implementing consistent and disciplined approaches to reflect industry standard practices. This will involve alignment of processes, people and systems with the new strategy. Some of our key commitments are to:

• Improve the management of our real estate portfolio, including approaches to innovative leasing;
• Implement a more rationalized approach to space utilization;
• Realize $150 million in savings in 2006-07;
• Rigorously apply space and fit-up standards;
• Continue to implement the NCA Accommodations Strategy and office accommodations distribution between Ontario and Quebec (Ratio of 75/25);
• Realign project governance and continue to make improvements in project delivery, having more focus on key clients and major projects;
• Improve management practices;
• Issue an RFP for Financial Advisory Services to provide innovative and useful recommendations from the private sector to address challenges facing the management of PWGSC's Crown-owned real estate;
• Identify and implement efficiencies in program management and the delivery of real property services, in consultation with unions and key stakeholders; and
• Increase efficiency in our overhead management.

IT – Shared Services Transformation

As one of the three pillars of the department's business transformation agenda, Information Technology (IT) Service's vision is to become the centre of excellence for the delivery of IT Shared Services to the government. Our goal is to facilitate the transformation of how the government does business by adopting a government-wide IT Shared Services approach.

PWGSC's Information Technology Services is enhancing electronic services and creating new value for citizens and businesses, by rationalizing the management of IT infrastructure across government to increase efficiencies, improve quality and standardize processes. IT transformation is about leveraging investments in technology to enable public sector modernization.

Currently, PWGSC is working with six partner organizations within the federal government to transfer IT services to a shared services model. IT Shared Services is key to improving how government works. It is an essential enabler of the government's commitment to delivering integrated, easily accessible services to Canadians.

PWGSC-delivered IT Common Services Hosting of 250 software applications on behalf of various departments. Data centre service for 47 departments and agencies. 3 cheque production facilities (Dartmouth, NS; Quebec, QC and Winnipeg, MB) that handle 100 million mailings per annum. Secure Channel ePass services to 45 government programs and Secure Channel brokered services to 6 government programs for a total of 51 programs. Satellite-based, mobile fixed communication services for 30 departments.

As we move forward with this shared services approach, we will explore the advantages of creating a dedicated IT Shared Services Organization (IT-SSO). Such a model seeks to achieve a number of key results: more efficient, cost-effective operations through economies of scale and standardization; productivity gains; clearer accountabilities; timely decision-making based on consistent management information; and, common, more consistent levels of service across the government. To achieve these results, PWGSC is aiming to:

• Shift from a departmental approach for IT to a government-wide approach to improve quality and availability of data, reduce duplication, lower costs, and improve the management of programs and internal functions;
• Increase the proportion of IT shared services in both IT infrastructure services, and, external service channels for Canadians;
• Achieve economies of scale for IT purchasing and outsourcing;
• Establish sustainable business models for the Secure Channel and Shared Travel Services Initiative;
• Strengthen internal IM/IT practices; and
• Support our business transformation commitments.

3. Supporting Government's Strategic Agenda

PWGSC is well-positioned to support the government's strategic agenda and government-wide management priorities while at the same time providing savings and quality services to the satisfaction of our stakeholders. PWGSC is supporting the government's accountability agenda by our # 1 priority, Strengthening Accountability and Transparency, by contributing to the implementation of the Federal Accountability Act and Action Plan. PWGSC is also indirectly supporting the government's commitments (e.g., tax reductions and child care) through savings resulting from our # 2 priority, Business Transformation.

4. Delivering Major Projects of National Importance

As one of Canada's oldest federal departments, PWGSC has a long history of public service representing some of the best traditions of Canadian nationhood. PWGSC has extensive experience in linking communities through infrastructure and Canada-wide federal presence. PWGSC continues to provide professional and results-oriented management and to deliver complex and high-value projects of national importance.

Specific major capital projects and horizontal initiatives led by PWGSC include: 

• Defence Procurement;
• Parliamentary Precinct (Phase I);
• Government of Canada Marketplace (GoCM);
• Shared Travel Services Initiative;
• Pension Modernization Project;
• Sustainable Development Strategies;
• Procurement and Contracting.

Pressures to share information across departments, agencies, other levels of government and international organizations are increasing. Our continued collaboration with provinces and territories, as well as other jurisdictions, will enhance our ability to deliver shared services and projects of national importance.

Emerging Priorities for Canadians

PWGSC has a unique opportunity to contribute to the government's broader agenda, e.g., the implementation of the Federal Accountability Act and Action Plan. This legislation will improve accountability and transparency and strengthen the management of such government-wide activities as public opinion research, advertising and procurement. In addition, PWGSC will align its management practices with the measures in the Federal Accountability Act and Action Plan, and adjust the programs and services we deliver on behalf of the Government of Canada.

PWGSC is well-positioned to deliver on and support emerging priorities for Canadians. PWGSC launched The Way Forward business transformation initiative, built on a whole-of-government service model, that would provide greater public sector value through: improved efficiency and sound management; more focus on strategic outcomes; improved service delivery; and greater accountability and transparency. In an effort to mitigate concerns raised by Small and Medium Enterprises regarding the potential reduction of competitive opportunities for government business; the Office of Small and Medium Enterprises is endeavouring to strengthen access to government business for SMEs through collaboration with industry associations and individual businesses on training, information, development of support tools, and through participation in procurement policy changes.

PWGSC has recognized and embraced the government's commitment to restoring Canadians' faith in their public institutions, rewarding hard work and innovation, improving the quality of life in our communities and strengthening Canada through safety and unity. Through its plans and performance, particularly The Way Forward, PWGSC will be vigilant in supporting the government's emerging priorities over the planning period of this Report.

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