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MINISTER'S MESSAGE

I am pleased to present Public Works and Government Services Canada's (PWGSC) Report on Plans and Priorities for 2009-2010.

As the largest provider of common, central and shared services to other departments and agencies, PWGSC is committed to helping streamline the way the Government of Canada does business. Sound management is key to Canada's economic and fiscal future.

Budget 2009 includes commitments to make significant investments in building and renewing Canada-wide federal public infrastructure over the next two years. Our department will be accelerating its plans to repair and restore federal buildings and bridges and to enhance the accessibility of federal buildings. We will be called upon to support the activities of our colleague departments and will have the opportunity to work with other levels of government to coordinate the delivery of these activities and demonstrate our leadership in our core areas of expertise.

As part of Canada's Economic Action Plan, we are planning for the future of Québec City's historic drill hall-the Manège Militaire, and preserving the architectural integrity and historic significance of our heritage buildings in the Parliamentary Precinct. As well, the modernization and streamlining of our real property processes will incorporate environmentally responsible management practices to ensure safe, healthy and affordable accommodations to those who serve Canadians.

Small and medium-sized enterprises and Aboriginal businesses will continue to benefit from our procurement renewal efforts. By simplifying how the government purchases goods and services, we are reducing the cost of doing business for suppliers. At the same time, we are ensuring suppliers have open and fair access to government contracting opportunities while achieving best value for Canadians. We will also continue to implement simpler and streamlined procurement processes to acquire urgently needed goods and services for the Canadian Forces.

In addition, my department is modernizing our pension systems in order to generate savings and to improve how we deliver these services to current and retired public servants. Delivering information technology products, services and programs more effectively and efficiently is also a key priority for PWGSC, and we remain committed to working closely with other departments to reduce the government's environmental footprint.

All of our activities will take into consideration the current economic uncertainty and challenges. We are redoubling our efforts to engage our stakeholders so that their views and concerns are considered in the development and review of our programs and services.

I am proud of our progress to make government more effective. And I remain fully committed to leading this department in its efforts to deliver high-quality services and programs that meet the needs of federal organizations and ensure sound stewardship on behalf of all Canadians.

The Honourable Christian Paradis

SECTION 1 - DEPARTMENTAL OVERVIEW

1.1 Summary Information

Raison d'être

Public Works and Government Services Canada (PWGSC) plays an important role in the daily operations of government. We are the government's principal banker, accountant, central purchasing agent, translation authority, real property manager and enabler of access to government services online.

Our vision is to excel in government operations by delivering high-quality services and programs that meet the needs of federal organizations and ensure sound stewardship on behalf of Canadians.

Responsibilities

The department was originally founded in 1841 and was instrumental in the building of our nation's canals, roads and bridges, the Houses of Parliament, post offices, and federal buildings across the country.

Today, we have evolved into a sophisticated operational arm of government that employs nearly 14,000 staff working in the National Capital and five regional offices in Halifax, Montreal, Toronto, Edmonton, and Vancouver.

The Department of Public Works and Government Services Act, passed in 1996, established the department and set out the legal authorities for PWGSC's services. Specifically, the Act established PWGSC as a common service agency providing government departments, boards and agencies with services in support of their programs, including:

• Acquisition of goods and services;
• Office accommodation and facilities;
• Architectural and engineering services;
• Construction, maintenance and repair of public works and federal real property; and
• Provision of translation, information technology, telecommunications, industrial security and consulting and audit services.

The Act also specifies that the Minister of PWGSC is the Receiver General for Canada and has the authority for the administration of services related to benefits, superannuation and pension plans and disbursement of pay to federal employees.

Our goal is to run our business in a way that strengthens accountability and adds value to our clients. In doing so, PWGSC:

• Provides accommodation to parliamentarians and to more than 241,000 public servants in 1,800 locations across Canada;
• Injects more than $14 billion annually into the Canadian economy through government procurement;
• Issues nearly 13.5 million federal pay and pension payments to Canadians;
• Helps more than 18,000 small and medium-sized enterprises do business with the federal government;
• Provides translation and interpretation services annually for more than 2,000 sessions of Parliament and 1.5 million pages of translation for other federal organizations; and
• Handles more than $1.6 trillion in cash flow transactions as the Receiver General for Canada.

2009-2010 Program Activity Architecture

In 2008, we improved our reporting to Parliament by consolidating and streamlining our Program Activity Architecture (PAA).

This was done to better reflect PWGSC's commitment to be a dynamic, results-based organization which is focused on providing tangible benefits to Canadians.

The new PAA, as approved by Treasury Board in 2008, consolidates the number of program activities from twenty-six to nine, and establishes our strategic outcome as follows:

High-quality, central programs and services that ensure sound stewardship on behalf of Canadians and meet the program needs of federal institutions.

Our new PAA allows us to pursue our mandate more effectively, enabling us to place increased emphasis on improving our management structures, tools and processes to drive quality and efficiency into all facets of our business. Guided by the new strategic outcome, we are building on international best practices and taking concrete steps to improve the use of different planning, performance measurement and reporting tools to enhance the organizational capacity and management practices of our department.

The table below showcases PWGSC's complete framework of program activities and program sub-activities, which contribute to the department's strategic outcome.

Program Activity Architecture

Program Activities	Program Sub-Activities
Acquisitions	Procurement Services Customized/Unique Procurement Services Strategic Acquisition Support Services
Accommodation and Real Property Assets Management	Federal Accommodation Federal Holdings Professional and Technical Services Disposition Incentives Payments in Lieu of Taxes Parliamentary Precinct
Receiver General for Canada	Stewardship of Public Money and Accounts of Canada Receiver General Services
Information Technology Infrastructure Services	Distributed Computing Services Data Centre Services Telecommunications Services Information Technology Security Services
Federal Pay and Pension Administration	Pay Pension
Linguistic Management and Services	Management of Translation Function Terminology Standardization Program Translation and Other Linguistic Services Translation and Interpretation to Parliament Conference Interpretation
Specialized Programs and Services	Industrial Security Program Greening of Government Operations Sydney Tar Ponds and Coke Ovens Remediation Project Government Information Services Government Consulting Services Audit Services Canada Seized Property Canadian General Standards Board Forensic Accounting Crown Assets Distribution Shared Travel Services Initiative Marine Inspection and Technical Services Document Imaging Services Shared Services Integration
Procurement Ombudsman	Review of Procurement Practices Supplier Complaints
Internal Services

1.2 Planning Summary

Financial and Human Resources

The table below provides a summary of PWGSC's total planned spending and human resources Full-Time Equivalents (FTEs) for the next three fiscal years (2009-2010 to 2011-2012).

Financial and Human Resources Summary

	Planned Spending
Financial Resources (in millions of dollars)	2009­-2010	2010-2011	2011-2012
Gross Expenditures	5,922.0	5,437.5	4,897.0
Less Respendable Revenue	3,045.7	2,858.4	2,709.7
Net Expenditures	2,876.3	2,579.1	2,187.3
Human Resources
Full-Time Equivalents (FTEs)	13,928	13,855	13,866

Planned Spending by Program Activity

Federal departments and agencies are supported by PWGSC's strategic outcome and program activities, which are aligned to the Government Affairs' spending area of the Government of Canada's whole-of-government reporting framework. The table below outlines PWGSC's net forecasted spending for 2008-2009 and the net planned spending, by program activity, from 2009-2010 to 2011-2012.

Forecast and Planned Spending

Program Activity (in millions of dollars)	Forecast Spending 2008-2009	Planned Spending
		2009-2010	2010-2011	2011-2012
Acquisitions	118.7	110.4	110.3	110.2
Accommodation and Real Property Assets Management	1,767.8	2,157.3	1,884.0	1,503.0
Receiver General for Canada	126.1	131.2	128.1	127.6
Information Technology Infrastructure Services	19.4	14.4	3.9	1.5
Federal Pay and Pension Administration	36.4	31.6	31.5	27.5
Linguistic Management and Services	72.6	70.2	66.4	65.3
Specialized Programs and Services	89.7	87.3	81.7	79.8
Procurement Ombudsman	4.4	4.3	4.3	4.3
Internal Services	286.9	269.6	268.9	268.1
Total for strategic outcome	2,522.0	2,876.3	2,579.1	2,187.3

Note: Includes intradepartmental revenues and expenditures of $241.5 million for 2008-2009, $229.7 million for 2009-2010, $254.8 million for 2010-2011 and $314.8 million for 2011-2012 for a nil bottom line impact. Forecast spending for 2008-2009 includes $7.6 million for volume and inflationary pressures on non-discretionary charges for federal accommodation and holdings and $6.1 million for Translation and Interpretation to Parliament. Planned spending includes $457.1 million announced in the Budget 2009 for the Accelerated Infrastructure Program ($237.6 million for 2009-2010 and $219.5 million for 2010-2011).

The nine program activities of our PAA contribute to PWGSC's strategic outcome. The table below describes the performance indicator and target for PWGSC's single strategic outcome. This is a composite of the performance indicators and targets of various program activities described in Section 2 of this report.

Strategic Outcome	Performance Indicator	Target	Achievement Date
High-quality, central programs and services that ensure sound stewardship on behalf of Canadians and meet the program needs of federal institutions.	Percentage of programs and services that meet their expected results, including service levels and published standards.	95%	March 31, 2010.

Contribution of Priorities to Strategic Outcome

The government established "Making Government More Effective" as a priority in the November 2008 Speech from the Throne. PWGSC is well-aligned to support this priority and to advance our department's strategic outcome. We will do this by taking a multi-pronged approach to achieve our operational and management objectives in the upcoming year.

We will realign and refocus our services through initiatives such as real property modernization, procurement renewal, and pay and pension modernization. In addition, we will improve the quality and value of our services by working closely with our clients and partners, including suppliers, to identify, develop and implement new and innovative ways to improve our service offerings. Finally, we will continue to strengthen our organizational capacity and improve the fundamentals of our business.

Our operating environment is strongly influenced by national and international developments. Within the government, these trends include preference for cost-effective models that provide smarter, faster service delivery, in a way that ensures Canadians receive the best possible value for their tax dollars. Our plans and priorities are strongly influenced by these trends. As listed below, fourteen key operational and management priorities have been identified for 2009-2010.

Strategic Outcome High-quality, central programs and services that ensure sound stewardship on behalf of Canadians and meet the program needs of federal institutions.
OPERATIONAL PRIORITIES	Type	Program Activity	Description
Military and Major Procurement	Ongoing	Acquisitions	Improving the efficiency of military and major procurements has been, and continues to be, a significant priority for the department. In collaboration with the departments of National Defence, Fisheries and Oceans, Industry Canada and the Treasury Board Secretariat, PWGSC will work to further streamline acquisitions processes and reduce timelines for military and major procurements. Efforts will also be deployed to maximize benefits for Canada from the planned large investments in the Canadian Forces and the Coast Guard while engaging and working with industry.
Procurement Renewal	Ongoing	Acquisitions	In consultation with key stakeholders, PWGSC is using best practices to modernize and streamline our procurement practices, supported by improved self-serve opportunities via supplier and client e-portals, sophisticated delegation mechanisms and robust benchmarks, service standards and measures. We intend to move up the value-chain, to optimize existing cadres of expertise for higher value work, while revitalizing the acquisitions business model to support procurement processes that are efficient, effective and as responsive as possible to our stakeholders while providing best value for the Canadian taxpayer.
Real Property Modernization	Ongoing	Accommodation and Real Property Assets Management	PWGSC is modernizing our real property business by employing a systematic approach to transforming key business elements: portfolio management and asset integrity, improved client relationship management, enhanced business processes, systems and service delivery mechanisms, and strengthened people and stakeholder partnerships. The objectives are to increase efficiencies, improve the services we provide to clients, and provide better value for money for taxpayers.
Greening of Government	Ongoing	Specialized Programs and Services	PWGSC is committed to working closely with other government departments to improve the environmental performance of the federal government's operations in the areas of land, buildings, business and movement. We will work, in collaboration with partner departments, to establish government-wide operational priorities, accountabilities, targets, timelines and reporting requirements to support the government's environmental agenda.
Parliamentary Precinct Project (Long-Term Vision and Plan)	Ongoing	Accommodation and Real Property Assets Management	As the custodian of the buildings in the Parliamentary Precinct, PWGSC is investing to protect their architectural integrity through the Long-Term Vision and Plan (LTVP): a blueprint for renovations and new construction to meet accommodation requirements identified by the Senate, House of Commons, and the Library of Parliament. The LTVP establishes the renovation of the core buildings (the West, Centre and East Blocks) as the first priority.
Information Technology Shared Services	Ongoing	Information Technology Infrastructure Services	PWGSC is committed to delivering a consistent set of government-wide information technology infrastructure products and services to enable government departments to deliver on their priorities. In partnership with other departments, PWGSC is leading a government-wide information technology (IT) transformation as part of the IT Shared Services initiative, including: shared enterprise network, data centre consolidation, IT security, and managed desktop services.
Pension Administration Transformation	Ongoing	Federal Pay and Pension Administration	Our pension administration systems are outdated, inefficient and difficult to maintain. In order to ensure sustainability and consistent service delivery to plan members, and improved service levels to employers, employees and pensioners, PWGSC is modernizing our pension administration system and process infrastructure. During the next three and a half years, we will re-engineer business processes, replace existing systems with modern software products, and centralize service delivery within PWGSC.
Pay Administration Transformation	Ongoing	Federal Pay and Pension Administration	PWGSC will continue to examine how we can modernize the government's pay administration systems and services. Our goal is to transform the government's pay administration by increasing automation and self-service while reducing the need for assistance from departmental compensation advisors.
Translation Renewal	Ongoing	Linguistic Management and Services	PWGSC is developing the capacity to meet growing demand for translation and interpretation services in official languages, Aboriginal languages and in those foreign languages that are needed in military, diplomatic and intelligence areas. PWGSC will help ensure the security of supply of qualified professionals to meet the needs of Parliament and federal institutions.
Industrial Security Program	Ongoing	Specialized Programs and Services	PWGSC's Industrial Security Program contributes to the government's national security agenda and safeguards Canadian and foreign governments' sensitive information and assets entrusted to the private sector, companies or individuals, when under government contract. We ensure that controlled goods are protected against unauthorized possession, examination or transfer when in custody of the private sector. By working closely with our partners, we will continue to identify solutions for a more streamlined and consistent process for both government and the private sector.
MANAGEMENT PRIORITIES	Type	Program Activity	Description
Workforce for the Future	Ongoing	Internal Services	PWGSC expects that a significant number of our employees will retire in the next few years. To meet this challenge, our human resources renewal agenda focuses on employee recruitment, retention and development. We will increase capacity and new skill sets in areas like strategic management and information technology. We will emphasize change management, change leadership and continue to implement the Public Service Employee Survey Action Plan.
System Renewal Support to Fundamentals Agenda	Ongoing	Internal Services	To strengthen PWGSC's management fundamentals and enhance the integrity and transparency of our decision-making, we will improve our business processes and introduce new systems and technologies. This will include stabilizing our investments with SIGMA - our financial management system - and exploring the implementation of systems-based solutions to improve the management of our human resources, internal controls, financial information reporting, connectivity among business systems and other executive decision-support processes. Our goal is to incorporate best practices and innovations in technology and systems to increase the range of our executive oversight, prudence, probity and sound management.
Organizational Excellence	New	Internal Services	PWGSC projects are underway to redesign key processes to consistently produce and deliver programs and services that meet or exceed client requirements; comply with legislative, regulatory and policy requirements; and respect established standards. Quality improvements and enhanced management practices will result in processes, products, programs and services that are recognized for their excellence and efficiency and support business decisions.
Risk Management	New	Internal Services	PWGSC has developed management tools and mechanisms to identify, monitor, report and manage risks. The Corporate Risk Profile is updated annually to identify key corporate-level risks and internal risk mitigation strategies related to departmental initiatives. PWGSC will focus on effectively treating residual vulnerabilities and integrating sound risk management practices throughout the department's operations.

Risk Analysis

PWGSC integrates risk management principles and practices into our strategic and operational decision-making. This helps us minimize the negative impacts of uncontrolled events and maximize opportunities to improve our service delivery and add value to the operations of government.

PWGSC faces a number of external and internal risks for 2009-2010. The dominant external risks centre around the growing operational demands associated with major project initiatives such as military procurement, real property infrastructure, and information technology.

In addition, as government revenues decline due to the downturn in the economy, PWGSC will be faced with significant pressures to find greater efficiencies and cost savings, beyond those already achieved in recent years.

While external risks will dominate PWGSC's operational requirements, internal risks are equally important for our department's long-term viability. PWGSC completed, in 2008, a Corporate Risk Profile which identified a number of internal risks, including:

• Human resources capacity, skills shortages and competency gaps;
• Risk averse public sector culture and its effect on departmental processes and practices;
• Lack of clarity in roles and responsibilities between PWGSC and key stakeholders and sustainability of our business model of funding and service provision for client departments;
• Ability of the legacy information management and information technology infrastructure to meet the modern needs of PWGSC and our key stakeholders; and,
• Demands related to organizational change required by initiatives such as procurement renewal, changes to the real property business model, and pension/pay modernization.

PWGSC has developed appropriate risk mitigation strategies to manage these risks. Our Corporate Integrated Risk Management Framework is being revised to address the complex operating environment of our business. We have instituted specific policies and guidelines for assessing risk related to acquisitions and national projects for real property. We are also adopting best practices in risk management as developed by the International Standards Organization. In 2008, PWGSC created the Departmental Oversight Branch to provide expertise in risk, quality and conflict management; fairness monitoring; internal disclosure; forensic accounting; audit and evaluation; and special investigations so that the department's operations are conducted in a way that ensures probity and transparency.

Expenditure Profile

PWGSC's planned spending is strongly influenced by national and international developments, and by trends within the government community. External to government, a downturn in the economy, international commitments such as Afghanistan and sustainable development challenges will influence PWGSC's services and spending. Within government, trends influencing the plans and priorities of PWGSC include the growing preference for government-wide service models, the need to ensure that Canadians receive the best possible value for their tax dollars, and the need to demonstrate transparency and accountability in all that we do.

PWGSC has also been undergoing a significant business renewal agenda, aimed at finding innovative ways to deliver services smarter, faster and at reduced cost, while demonstrating improved accountability and results. As with any large-scale business renewal, there are major challenges in continuing to deliver ongoing operations while implementing modernized approaches and processes. The positive consequences of business renewal are beginning to be reflected in our planned spending trend from 2005-2006 to 2011-2012, as noted below.

PWGSC Spending Trend

Note: 2009-2010 and future years represents best estimates of departmental initiatives. Planned spending includes the known funding approved in the annual budget process plus the recent 2009 Budget announcement for the Accelerated Infrastructure Program for 2009-2010 and 2010-2011. Additional information may be found on the departmental website at: www.tbs-sct.gc.ca/rpp/st-ts-eng.asp.

Voted and Statutory Items

For the 2009-2010 fiscal year, PWGSC plans to spend $2,876.3 million to meet the expected results of our program activities and contribute to our strategic outcome. The table below shows how Parliament approved PWGSC's resources. The variance of $488.8 million, between 2009-2010 Planned Spending and the Main Estimates, relates to earmarked items and Budget 2009 announcements for which funds will be spent on specific expenditures.

(in millions of dollars)
Vote or Statutory Item	Vote or Statutory Wording	Main Estimates 2008-2009	Main Estimates 2009-2010
1	Operating expenditures	1,975.9	1,947.5
5	Capital expenditures	290.9	349.1
10	Grants and contributions	-	-
(S)	Minister of Public Works and Government Services - Salary and motor car allowance	0.1	0.1
(S)	Contributions to employee benefit plans	79.7	78.4
(S)	Real Property Disposition Revolving Fund	(5.5)	(5.2)
(S)	Optional Services Revolving Fund	-	-
(S)	Consulting and Audit Canada Revolving Fund	-	(3.6)
(S)	Translation Bureau Revolving Fund	2.0	5.1
(S)	Payment in lieu of taxes to municipalities and other taxing authorities	-	-
(S)	Real Property Services Revolving Fund	-	10.0
(S)	Telecommunications and Informatics Common Services Revolving Fund	-	6.1
(S)	Defence Production Revolving Fund	-	-
DEPARTMENT TOTAL		2,343.1	2,387.5

PAA Crosswalk

The crosswalk below displays the redistribution of 2008-2009 forecast spending between PWGSC's old and new PAAs. As PWGSC depends heavily on client revenue, the figures represent gross expenditures. Pursuant to TBS reporting guidelines, revenue by program activity has been used to arrive at net expenditures reported in other financial tables.

PAA Crosswalk: 2008-2009 Forecast Spending

2009-2010 Program Activities (in millions of dollars)
2008-2009 Program Activities	Program Activities	Acquisitions	Accommodation and Real Property Assets Management	Receiver General for Canada	Information Technology Infrastructure Services	Federal Pay and Pension Administration	Linguistic Management and Services	Specialized Programs and Services	Procurement Ombudsman	Internal Services	Total
	Acquisition Services	110.0						31.6		17.4	159.0
	Optional Services Revolving Fund	104.4									104.4
	Defence Production Revolving Fund										0.0
	Federal Accommodation and Holdings		2,646.1								2,646.1
	Real Property Services Revolving Fund		979.9								979.9
	Real Property Disposition Revolving Fund		3.0								3.0
	Information Technology Infrastructure Services				226.4					83.7	310.1
	Telecommunications and Informatics Common Services Revolving Fund				201.0						201.0
	Linguistic Services						63.6				63.6
	Translation Bureau Revolving Fund						205.1				205.1
	Consulting and Audit Canada Revolving Fund							43.4			43.4
	Information Services							79.8			79.8
	Receiver General Services			6.4				1.8			8.2
	Public Service Compensation Services					3.6					3.6
	Greening of Government Operations Services							26.9			26.9
	Acquisition Stewardship	38.8									38.8
	Real Property Stewardship		31.1								31.1
	Information Technology Infrastructure Stewardship				7.9					32.2	40.1
	Business Integration - Performance Management										0.0
	Linguistic Stewardship						2.4				2.4
	Information Stewardship							15.3			15.3
	Receiver General Stewardship			134.8							134.8
	Public Service Pay Stewardship					32.9					32.9
	Public Services Pension Stewardship					113.3					113.3
	Greening of Government Operations Stewardship							3.2			3.2
	Internal Services								4.4	306.8	311.2
	Total Gross Expenditures	253.2	3,660.1	141.2	435.3	149.8	271.1	202.0	4.4	440.1	5,557.2
	Total Respendable Revenue	134.5	1,892.3	15.1	415.9	113.4	198.5	112.3	0,0	153.2	3,035.2
	Total Net Expenditures	118.7	1,767.8	126.1	19.4	36.4	72.6	89.7	4.4	286.9	2,522.0

Note: PWGSC has simplified the PAA by aligning and integrating revolving funds within our program activities. For details, see Table 13 on the departmental website at: www.tbs-sct.gc.ca/rpp/st-ts-eng.asp

 

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