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MINISTER'S MESSAGE

photo - The Honourable Michael M Fortier

I am pleased to present Public Works and Government Services Canada’s Departmental Performance Report for the period ending March 31, 2007.

During the past fiscal year, my department continued to make important progress on our business transformation and to improve our management practices.

In procurement, we pursued our efforts to simplify the way we buy goods and services to make it easier for Canadians and the private sector to do business with the government. We introduced new standing offers for goods and services most commonly purchased by the Government of Canada. My department also supported critical military procurement including the award of an $869 million contract for the acquisition of four C-17 aircraft, which was completed within eight months following the announcement of the project.

In real property, we began to move towards a corporate real estate model to align ourselves with industry best practices and help us manage the government’s real estate portfolio more strategically. With the assistance of leading industry experts, we assessed cost-effective options for accommodating federal departments. This led to our recent annoucement about the sale of nine buildings across Canada. Also, we furthered our work on the Ontario:Quebec 75/25 distribution ratio. This resulted in the release, in May 2007, of a request for information for the development of new office space in Gatineau, Quebec.

To directly support the Federal Accountability Act and Action Plan’s commitment to promoting fairness, openness and transparency in the procurement process, an independent advisor was appointed to review the government’s public opinion research. As well, we completed the process leading to the appointment of a Procurement Ombudsman Designate. Finally, the rules governing public opinion research across government were amended. As a result, federal departments and agencies are now legally required to make public, within six months of the completion of fieldwork, their written public opinion research reports obtained under contract.

As the government-wide centre of expertise for greening government operations, my department provided leadership for initiatives such as the clean-up of contaminated sites, energy efficient buildings, and green procurement.

Once again, my department has demonstrated over the past year an unwavering commitment to strengthening accountability and transparency.

The Honourable Michael M Fortier


MANAGEMENT REPRESENTATION STATEMENT

photo - Franois Guimont - Deputy Minister of Public Works and Government Services

I submit for tabling in Parliament, the 2006-2007 Departmental Performance Report (DPR) for Public Works and Government Services Canada.

This document has been prepared based on the reporting principles contained in the Guide for the Preparation of Part III of the 2006-2007 Estimates: Reports on Plans and Priorities and Departmental Performance Reports:

  • It adheres to the specific reporting requirements outlined in the Treasury Board Secretariat guidance document;
  • It is based on the department's Strategic Outcomes and Program Activity Architecture that were approved by the Treasury Board;
  • It presents consistent, comprehensive, balanced and reliable information;
  • It provides a basis of accountability for the results achieved with the resources and authorities entrusted to it; and
  • It reports finances based on approved numbers from the Estimates and the Public Accounts of Canada.

Having recently been appointed as Deputy Minister, my department is committed to continuous improvement, building on the results of 2006-2007. We will be focusing on the fundamentals of service delivery with people dedicated to excellence, while continuing with the implementation of our business transformation agenda.


Franois Guimont
Deputy Minister of Public Works and Government Services


Section I - DEPARTMENTAL OVERVIEW

Summary Information

The mandate of Public Works and Government Services Canada (PWGSC) is to ensure optimum value to Canadians and the government in the provision of common, central and shared services. Through the delivery of our services, we enable other government departments and agencies to provide their programs and services to Canadians.


PWGSC Business Highlights *

  • Accommodated 241,000 federal employees in 6.8 million square metres of space in roughly 1,800 locations.
  • Administered annual payments in excess of $460 million under the Payments in Lieu of Taxes Program to approximately 1,300 local taxing authorities.
  • Purchased roughly $12 billion worth of goods and services, and also managed about 60,000 transactions.
  • Provided $168 million in telecommunications and informatics services.
  • Provided 130 federal government services online with over 5 million epasses for online credentials used in accessing government services.
  • Handled $1.5 trillion in Receiver General cash flow, involving 252 million payments in 150 countries.
  • Administered compensation for 307,000 government pay accounts and 332,000 pensioner accounts.
  • Prepared the Public Accounts of Canada for 175 federal departments and agencies.
  • Translated 1.5 million pages at 60 service centres.

 * Sources: Departmental databases, Acquisitions Performance Management Report, IT Services Sustainable Development Strategy Report, Translation Integrated Ordering System.


PWGSC is the government's manager of office space and provider of real estate services. We are its central purchasing agent, banker and accountant. We provide services in the areas of payroll and pensions, information technology, linguistic services, audit, communications and consulting. In addition, we lead e-Government and greening of government initiatives. We directly service Canadians as the Receiver General, sending Universal Child Care Benefit cheques and Goods and Services Tax (GST) refunds to citizens.

Canadians, in Canada and abroad, benefit directly and indirectly from our services. PWGSC has two strategic outcomes, Quality Services and Sound Stewardship, with 28 program activities. Our ongoing operations support the Government of Canada's outcomes related to Economic, Social, International, and Government Affairs spending areas. (See Canada's Performance 2007 at http://www.tbs-sct.gc.ca). Under the Treasury Board Secretariat's (TBS) whole-of-government framework, PWGSC contributes to all of the Government of Canada's outcomes by providing services to government departments and agencies (See Figure 1).

Linking PWGSC to Government Strategic Outcomes

Summary of Resources and Performance



Figure 2: Summary of Planned and Actual Spending
Program Activities are organized by Strategic Outcome: Quality Services & Sound Stewardship
(In millions of dollars)

2006-2007

  Actual
2005-
2006
Main
Estimates
Planned
Spending
Total
Authorities
Actual

GOVERNMENT SERVICES PROGRAM  
Operating (including Special Purpose Allotments), Capital, Grants and Contributions and Statutory Votes  
Quality Services (16 Program Activities)          
Federal Accommodation and Holdings 1,647.2 1,890.4 2,237.9 1,891.5 1,728.3
Real Property Services Revolving Fund  -   -   -   -   - 
Real Property Disposition Revolving Fund (3.0) (8.0) (8.0) (8.0) (6.1)
Acquisition Services 180.2 152.2 154.4 167.2 169.5
Optional Services Revolving Fund (1.4)  -   -   -  (0.9)
Defence Production Revolving Fund  -   -   -   -   - 
IM/IT Services 282.1 143.5 143.2 263.3 259.0
Telecommunications Services Revolving Fund 4.0  -   -   -  (6.8)
Receiver General Services 7.1 9.0 8.8 6.6 7.3
Public Service Compensation Services 1.5 1.8 1.7 2.0 1.9
Government Information Services 49.5 32.9 32.3 31.7 30.8
Business Integration Services 15.9 10.2 10.0 16.9 15.5
Consulting and Audit Canada Revolving Fund (0.4) (0.4) (0.5) (0.5) (0.5)
Translation and Interpretation to Parliament, Conference Interpretation, Terminology 51.4 52.3 51.9 57.1 58.2
Translation Bureau Revolving Fund (9.2)  -   -  6.0 4.6
Office of Greening Government Operations Services  -   -   -   -   - 

Total Quality Services 2,224.9 2,283.9 2,631.7 2,433.8 2,260.8

Sound Stewardship (10 Program Activities)          
Real Property Stewardship 57.1 34.1 33.7 54.9 51.3
Supply Operations Stewardship 52.4 39.7 39.1 87.9 64.4
IM/IT Stewardship 11.3 12.8 9.8 14.2 14.2
Receiver General Stewardship 116.3 127.4 126.9 137.8 128.0
Public Service Pay Stewardship 28.3 27.9 27.7 33.2 31.9
Public Service Pension Stewardship 19.2 20.0 20.2 25.2 23.3
Government Information Stewardship 10.0 18.5 18.1 18.6 20.3
Business Integration Performance Management 6.1 5.3 5.4 6.1 6.1
Translation Stewardship 2.5 2.4 2.5 2.4 2.4
Office of Greening Government Operations Stewardship  -  1.3 1.3 2.1 0.7

Total Sound Stewardship 303.2 289.4 284.7 382.4 342.6

Gross Expenditures 4,850.2 4,579.2 4,922.3 5,108.5 5,031.2
Less: Respendable Revenues 2,322.1 2,005.9 2,005.9 2,292.3 2,427.9

DEPARTMENT TOTAL 2,528.1 2,573.3 2,916.4 2,816.3 2,603.4

Less: Non-Respendable revenues 67.4 21.5 21.5 22.8 63.8
Plus: Cost of services received without charge 53.5 37.9 37.9 38.3 60.2

NET COST OF DEPARTMENT 2,514.2 2,589.7 2,932.8 2,831.8 2,599.8

FULL-TIME EQUIVALENTS (FTEs) 12,483 12,043 12,502 12,626 12,338


Please note that this financial table has not been audited. Totals may not add up due to rounding.

Note: PWGSC's Program Activity Architecture has 26 Program Activities organized by two Strategic Outcomes. The overview can be found on page 11. The two additional program activities of Corporate Management and Business Integration Client Relations Management are not shown in the table above because, for Treasury Board Secretariat's financial reporting purposes, their costs have been re-allocated to the other program activities.


Figure 3: Summary of Performance Results 2006-2007
Key Planned Results1 Actual Performance Results Status
Real Property
  • Five-year savings of $1.025 billion with $150 million in 2006-2007.
  • Budget reductions of $151 million in 2006-2007; $134 million of efficiencies within PWGSC and $17 million attributable to organizations that reimburse us for services.

Met most expectations

  • Issue a request for proposal for Financial Advisory Services to provide private sector recommendations to address challenges facing the management of Crown-owned real estate.
  • Awarded a competitive contract to two financial groups to identify cost-effective options for accommodation related to 40 government office buildings. Cabinet approval was given for the sale-leaseback of nine assets.
  • Continuing work on the Long-Term Vision and Plan for the Parliamentary Precinct (Phase I).
  • Library of Parliament restoration was completed and West Block renovation began.
  • Rigorously apply space and fit-up standards.
  • Average space per employee reduced from 21.4 square metres to 19.7 to contribute to planned savings.
  • Continue to implement the National Capital Area Accommodations Strategy of a 75/25 distribution ratio for Ontario and Quebec.
  • Expect to reach the distribution ratio of 75/25 by 2010 and created a Gatineau-specific strategy to increase office space in Quebec by 120,000
  • Increase efficiency in overhead management.
  • Continued to take full advantage of efficiencies and reduced overhead while maintaining a satisfactory level of service delivery.
Acquisitions
  • Procurement savings of $204 million in 2006-2007.
  • Achieved procurement savings of $225 million in 2006-2007.

Met most expectations

  • Continued development of the Government of Canada Marketplace (GoCM).
  • GoCM received Effective Project Approval from Treasury Board in June 2006 and was released in December.
  • Establish a Procurement Ombudsman.
  • Supported the development of the Office of the Procurement Ombudsman.
  • Introduce a Code of Conduct for Procurement.
  • Introduced a draft Code of Conduct for Procurement in February 2007.
  • Develop a new vendor performance policy.
  • The policy was drafted and is expected in February 2008.
  • Facilitate and ensure the participation of Small and Medium Enterprises in government procurement.
  • PWGSC expanded the Office of Small and Medium Enterprise, opening new regional offices in Halifax, Montral, Toronto, Edmonton, Vancouver, and Ottawa.
  • Establish Interdepartmental Commodity Councils.
  • Established 10 commodity councils, 34 commodity strategies and 24 commodity teams.
Information Technology Services
  • Explore the advantages of creating dedicated IT Shared Services (IT-SS).
  • The IT-SS proof of concept project undertaken. Spending totalled $4.9 million in 2006-2007 and the current estimated total cost is $10.5 million.

Met most expectations

  • Shift from a departmental approach for IT to a government-wide approach to reduce duplication, lower costs and improve quality and use of data.
  • Launched the Identification, Qualification, Service Transfer and Transformation process. This was started with six partner departments and agencies.
  • Increase the proportion of IT shared services in both IT infrastructure services, and, external service channels for Canadians.
  • The product catalogue now contains 62 shared services; a product maturity index will be used to further assess the readiness of these services.
Receiver General and Public Service Compensation
  • Continue the implementation of direct deposit.
  • In 2006-2007, direct deposit participation levels increased by 3%, creating savings in processing and paper.

Met most expectations

  • Introduce a new cheque format as part of Receiver General Settlement Streamlining and start testing with financial institutions.
  • A new cheque was developed to the industry-wide standard, offering increased security, simple management and printing, with testing in 2007-2008.
  • Replace 40-year old pay and pension systems to modernize PWGSC's compensation function.
  • The Pay Modernization Project to renew pay administration processes was given preliminary approval in March.
  • Create and implement, from 2005 to 2012, a multi-plan solution that will replace outdated systems and business processes and enable PWGSC to provide best practice pension services to both active and retired plan members.
  • Since receiving Preliminary Project Approval for pension modernization, 16 key business processes have been defined and the business transformation strategy has been developed. The cost estimates have been validated by two external audits.
  • The centralization of the pension services, supplied by compensation advisors in over 100 departments and agencies, to provide savings, administrative efficiencies and improved services.
  • Pension centralization is progressing, consolidating the delivery within PWGSC. Centralization of the retirement planning information sessions was completed, adding to centralized Pension Benefits and Pension Transfers.
Consulting, Information and Shared Services
  • We will begin implementing a system to measure Government Information Services performance in terms of client satisfaction to identify opportunities for improvement.
  • Completed a client satisfaction survey in 2006-2007 for communications services indicating satisfaction ratings ranging from 77% to 97%. The survey also found 90% of Canada Pavilion visitors increased their awareness of government services.

Met most expectations

  • Implement Public Opinion Research and Advertising Coordination (PORAC) management improvements which also addresses the Auditor General's audit on the quality of surveys by: establishing an expert technical advisory panel; conducting a study to improve the quality of public opinion research; and providing contracting process tools that will be developed and made available to departments.
  • In response to the November 2005 Auditor General's Report, Chapter 2, "The Quality and Reporting of Surveys", PORAC created an advisory panel on telephone survey quality and completed a report to guide the development of new contracting tools and publishing of annual reports for PORAC.
  • The Canada Gazette will launch an interactive online tool to enable students to further their knowledge of the democratic process.
  • Initiated a pilot project to gauge the feasibility of and interest in an interactive on-line tool to educate future Canadian voters, and Canada Gazette will now partner with Library and Archives Canada to develop a fully digitized, indexed on-line research tool.
Business Integration
  • Industrial security programs and services will focus on increasing productivity by modernizing and streamlining operational activities.
  • Streamlined services: 85% of security requirements checklists were processed within 21 days and 98% of new or renewal registrations for the Controlled Goods Program were processed within 30 days.

Met most expectations

Consulting and Audit Canada
  • In October 2005, Treasury Board (TB) announced the realignment of Consulting and Audit Canada's (CAC) services to reinforce the internal audit function within government and transfer Government Consulting Services (GCS).
  • In response to the TB decision, CAC was divided into two: Audit Services Canada (ASC) and GCS. Both ASC and GCS continued to provide their services on a fee-for-service basis throughout 2006-2007, achieving over 90% client satisfaction.

Met most expectations

Translation Bureau
  • Streamline costs through new tools and reduced accommodation costs to pass on a 17% rate reduction for administrative work by April 2006.
  • As of April 1, 2006, the rate charged for administrative translation was reduced by 17%.

Met most expectations

  • Speed up the implementation of the new business model by dedicating translators to clients or relocating them to work in "translation boutiques".
  • Accelerated the implementation of the new business model assigning 47 on-site translators and designating 243 dedicated translators to serve clients better.
  • Represent Canada nationally and internationally at language forums and in standardization networks and committees such as the International Organization for Standardization (ISO).
  • Attended meetings of the ISO in Beijing and helped develop new international standards. We obtained the authorization of the European Association for Terminology to hold the 4th World Terminology Summit in Gatineau in October 2008.
  • Pursue its workforce renewal programs in interpretation, terminology and translation in specialized and critical sectors.
  • Produced brochures and promoted the language industry in colleges and secondary schools. We also maintained our partnership with the University of Ottawa, notably with respect to the master's degree in interpretation.
  • Launch a new version of TERMIUM to enable client departments and agencies to store, standardize and update their specific terminology.
  • Continued developing the next generation of TERMIUM, which will help client departments and organizations store and update their own terminology.
Office of Greening Government Operations
  • Partner with TBS to further refine the government-wide Performance Management Framework (PMF) for greening government operations.
  • The Office of Greening Government Operations (OGGO) worked with TBS and Environment Canada to help refine the PMF for OGGO.

Met most expectations

  • Support and monitor the implementation of government-wide policies on greening of operations, such as the TB Policy on Green Procurement.
  • In 2006-2007, OGGO helped with the government-wide implementation of the Policy on Green Procurement by developing training and tools in cooperation with colleagues. Green procurement training is now provided at the Canada School of Public Service and online via Campus Direct.
  • Lead interdepartmental steering groups for greening government operations, to address and manage key operational areas.
  • OGGO played a lead role in coordinating the activities of six interdepartmental steering groups and a Federal-Provincial-Territorial Sub-committee on Sustainable Development.
Corporate Management
  • Hire ethics officers in every branch of every region, link accountability with integrity and performance pay and expand ethics training throughout the department.
  • Advanced the Ethics Program: established an Ethics and Risk Committee to train all officers in positions at risk, gave ethics and values orientation to new employees, presented 123 ethics training sessions (56 in the regions) and evaluated and improved the Introduction to Ethics course content.

Met most expectations

  • Manage government actions associated with the former Sponsorship Program through the financial recovery of frauded funds, paying legal fees and assisting investigations.
  • Continued recovering funds from 28 defendants. We are supporting and ensuring full transparency concerning activities related to criminal trials and the recovery of funds.

 1 The information above is a summary of performance highlights for 2006-2007. Performance reporting against PWGSC's Program Activity Architecture is presented in Section II.

Overview of Departmental Performance

Our Report on Plans and Priorities, 2006-2007, set out priority areas for strategic change to guide our work and to ensure continued best value to government and Canadians.

Our performance results for 2006-2007 reflect many challenges and accomplishments in the following strategic priorities:

  • Strengthening Accountability and Transparency;
  • Transforming Our Business;
  • Delivering Projects of National Importance; and
  • Supporting the Government's Strategic Agenda.

Strengthening Accountability and Transparency

In 2006-2007, PWGSC continued to improve management practices, strengthening accountability and transparency.

On December 12, 2006, the Federal Accountability Act became law. The implementation of the Federal Accountability Act and its related Action Plan was of particular importance to PWGSC. We played a significant role in the areas of procurement reform and public opinion research management and controls.

PWGSC supported the development of the Office of the Procurement Ombudsman to review procurement practices as well as complaints concerning government contracts and contract administration, and also be responsible for ensuring the availability of a Contract Related Alternative Dispute Resolution Program. A Procurement Ombudsman Designate was appointed in September 2007.

The Action Plan related to the Federal Accountability Act made reference to the appointment of an independent advisor to review public opinion research practices in government. An advisor has been appointed for the implementation of this process.

In support of the Federal Accountability Act, PWGSC provided advice and input to the Treasury Board Secretariat for the new Communications Policy of the Government of Canada. Specific changes include: increasing the emphasis on openness, fairness and transparency in public opinion research and advertising bidding processes; distinguishing advertising from collateral services and non-paid messages such as public service announcements; and, ensuring that departments make written public opinion research reports public within six months of completion of field work.

As one of the government’s initial series of measures to implement the Federal Accountability Act and Action Plan, PWGSC announced in February 2007 that we would seek input from all stakeholders on the development of a Code of Conduct for Procurement. The Code will provide a comprehensive statement of the government’s expectations for handling of procurement activities by suppliers and public service employees. It will also consolidate the government's existing legal, regulatory and policy requirements into a concise statement of the expectations government has of its employees and its suppliers. This will strengthen the integrity and transparency of all government procurement transactions.

PWGSC is committed to being more open and transparent. We are proactively disclosing information regarding travel and hospitality, contracts over $10,000 and reclassification of jobs. We are also improving our reporting to Parliament and Canadians through greater linkages to government priorities and strategic outcomes as well as increased electronic reporting.

Internal audit and evaluation functions are key to strengthened accountability. We are working diligently to maintain an effective workforce of qualified, broadly experienced auditors and evaluators. This has been, and will continue to be, important for strengthened accountability.

Transforming our Business

In 2006-2007, PWGSC implemented the second year of our business renewal agenda to deliver services smarter, faster and at reduced cost in the areas of procurement, real property and information technology.

Procurement Renewal

The November 2006 Economic and Fiscal Update identified adjustments to the savings forecast after determining that the savings were overestimated. Budget 2007 indicated that "after further analysis, it has become clear that the revised savings targets will not be realized. The government, however, has determined that the savings for 2008-2009 and beyond will need to be achieved by departments through overall cost efficiencies including continued efforts to reduce procurement costs. Accordingly, departmental budgets will be reduced to reflect the fiscal targets projected in the November 2006 Economic and Fiscal Update."

We have exceeded our 2006-2007 target for procurement savings of $204 million, achieving procurement savings of $225 million.

In December 2006, PWGSC unveiled the Government of Canada Marketplace (GoCM), which offers simplified access to mandatory standing offers and supply arrangements. The initial launch was made available to all government departments and agencies to collect feedback in order to further refine and improve the GoCM in preparation for the full launch in March 2008. The intent is to develop an end-to-end solution for purchasing goods and services throughout the Government of Canada.

During 2006-2007, PWGSC worked closely with the private sector to better understand suppliers' concerns as changes to government procurement were introduced. Following consultations with suppliers, we announced that we would create an ongoing consultation mechanism. Feedback from suppliers will help us achieve our goal of reducing procurement costs while ensuring fair, simple and open access for all suppliers - irrespective of their size - across Canada.

To improve its outreach, PWGSC expanded the Office of Small and Medium Enterprise (SME), opening six regional offices across the country. The regional offices are working to identify and reduce barriers to SMEs in the procurement system. To this end, we are providing information, counselling and training services to help small and medium enterprises and PWGSC employees improve their procurement practices. SME participation by dollar value has already jumped, increasing by 85% to 300% in certain commodity areas. Currently, the overall participation rate by dollar value of SMEs exceeds 37% of total volume, representing approximately $5 billion per year being awarded to an average of 9,500 SMEs.

Real Property Renewal

At PWGSC, we face many challenges managing our real estate portfolio. These include the condition and age of buildings, our recapitalization needs (estimated at $ 4.5 billion over 15 years, adjusted for inflation and some acceleration, includes almost $1.0 billion indeferred capital expenditures), and the limited flexibility of the assets.

We have looked at private sector best practices, to improve the management of customer relationships and our assets. We also undertook more rigorous application of accommodation standards, improved inventory management, and the maintenance of overhead efficiencies. In 2006-2007, we tracked $134 million of efficiencies within PWGSC's Real Property Branch and $17 million attributable to organizations that reimburse PWGSC for services and accommodation for a total of $151 million against a target of $150 million.

In September 2006, we awarded a competitive contract to study 40 of the 325 Crown-owned real estate assets and to provide recommendations on the most cost-effective and efficient ways to accommodate federal government departments, while generating savings for Canadians. On August 20, 2007, the Government of Canada announced that it entered into an agreement for the sale of nine office buildings and their subsequent lease-back for a period of twenty-five years.

Information Technology Shared Services

PWGSC is leading the "whole-of-government" approach to modernizing Information Technology (IT). This initiative, called IT Shared Services, aims to consolidate IT infrastructure, services and facilities across government, to streamline processes, realize efficiencies and provide high-quality and cost-effective services to Canadians. It views government as a single enterprise whose goal is to reduce technical complexity and increase interoperability and information exchange. For example 98% of Government of Canada on-line programs are supported by our secure channel network.

To manage the growth strategies of IT Shared Services, we launched the Identification, Qualification, Transition and Transformation (IQTT) process. This initiative was started with six partner departments and agencies. Eventually, specific IT services, currently administered by each department or agency, will be transferred to a single IT Shared Services environment. Some of these organizations have begun to move the people, business processes and technology to the shared services model as part of the IT Shared Services Initiative.

Delivering Projects of National Importance

PWGSC undertook a wide range of major projects of national importance, including those in the following areas:

  • Clean-up of Contaminated Sites;
  • Restoration of the Vimy Ridge Monument;
  • Renewal of Pension Administration Systems; and
  • Military Procurement.

Clean-up of Contaminated Sites: Federal contaminated sites are managed under the Federal Contaminated Sites Action Plan (FCSAP). The Program is managed by Environment Canada (EC) and the Treasury Board Secretariat (TBS). Funding is directed to highest risk federal contaminated sites. FCSAP contains commitments for remediation of more than 600 federal contaminated sites. PWGSC is responsible for 209 contaminated sites. This includes the Sydney Tar Ponds clean-up, jointly supported by the government of Nova Scotia and Canada. Of the 209 PWGSC contaminated sites, the 2006-2007 annual report to the Treasury Board Secretariat indicates that:

  • 22% are under assessment;
  • 11% are under remediation;
  • 3% are remediated and under risk assessment;
  • 25% are under risk management;
  • 17% are remediated; and
  • 22% are assessed and require no action.

Restoration of the Vimy Ridge Monument: PWGSC completed the high profile restoration of 12 First World War monuments in Europe, including the Vimy Ridge Monument. In close partnership with Veterans Affairs Canada, this collaborative project brought together a unique multi-disciplinary team of heritage conservation experts from Canada, France and Belgium.

Renewal of Pension Administration Systems: We are continuing to work with the Treasury Board Secretariat in our efforts to renew our pension administration systems and business processes to replace the existing services to public service employees, employers and pensioners. The Pension Modernization Project will replace outdated technology and business processes by a multi-plan solution based on commercial off-the-shelf software. In 2006-2007, the design of a new system architecture was completed and cost estimates were validated by two external audits.

Military Procurement: PWGSC has been working with the Department of National Defence to streamline the procurement process with respect to military purchases to better meet the needs of the Armed Forces while ensuring best value for Canadians. An example was the award of an $869 million contract for the acquisition of four C-17 aircraft within eight months following the announcement of the project. This was a marked improvement when compared to the average 63 months it took in the past for similar large size military projects.

Details on all of the major projects of national importance above, and other major projects, can be found throughout Section II, in Section III — Table 12, and on our website at: http://www.pwgsc.gc.ca/reports/text/dpr_2006-2007/rpe-cpt-e.html.

Supporting the Government's Strategic Agenda

Security:

PWGSC continued to support the government's security agenda through a broad range of activities. We ensured public safety and security through the Industrial Security Program, designed to prevent the loss of classified information, secure assets and controlled goods. We facilitated military procurement by providing timely contract security services and we enabled Canadian industry to compete where contracts contain sensitive or classified government information or access to secure assets.

More specifically, we provided personnel security screening services to Canadian private sector organizations involved in protected/classified government contracts. We inspected organizations with access to protected and classified information and assets and those dealing with controlled goods or technology. We also processed Canadian and foreign visit requests for visitors requiring access to contract-related classified/protected information and assets.

PWGSC continued to negotiate industrial security Memoranda of Understanding (MOUs) with foreign governments that enable the government to share foreign sensitive technologies with Canadian industry. This helps Canadian industry to participate in foreign classified contracts. It also helps maintain the trust and confidence of NATO and our other allies and it supports Canada's anti-proliferation, public safety, security and global security priorities.

Military procurement is a large and important component of our work. Through enhanced working relationships with the Department of National Defence and improved processes, we have achieved significant reductions in delivery times directly supporting Canada's initiatives in Afghanistan and other areas abroad. The average timeline for new capability procurements is now estimated to be less than 25 months, which is an over 60% reduction from past procurements.

Greening of Government Operations

Since being given the responsibility to lead in the greening of government two years ago, we have developed initiatives to: reduce energy consumption, greenhouse gases and other polluting emissions; promote green procurement; improve the management of waste; direct or advise on the remediation of contaminated sites; and improve the environmental performance of the government's vehicle fleet.

PWGSC assists federal government departments in meeting their environmental regulatory requirements. In the past year, we provided training and advice to operational managers in the areas of storage tanks, hazardous materials and waste, ozone-depleting substances, air emissions, and waste-water management. As a result of these efforts, more than 75% of the Sustainable Development Strategies have incorporated recommendations for greening government operations. For example, guidance for vehicle fleets was taken up by 22 of the 28 departments that tabled their Sustainable Development Strategies in December 2006, increasing the use of hybrid vehicles and alternative transportation fuels.

We also helped establish steering groups on greening government operations and sustainable development. These federal-provincial-territorial and interdepartmental groups provide opportunities to share information, best practices and environmental management tools.

PWGSC has committed to ensuring that new buildings be at least 25% more energy-efficient than the Model National Energy Code for Buildings, and that buildings we renovate be at least 15% more energy-efficient after their renovation. New government office buildings also apply the Canada Green Building Council's Leadership in Energy and Environmental Design (LEED) Gold standard.

One new building on the forefront of sustainable design is Yellowknife's Greenstone Building. This will be the first North of 60 LEED-Canada-Gold-standard-certified office building.

In 2006-2007, direct deposit participation levels increased by 3%, generating significant savings in processing, handling, postage and paper. Not only does this initiative have positive environmental impacts across the country, it also delivers funds to the client faster, with greater satisfaction to Canadians. Such measures are noted in Section II.

Supporting Official Languages

The linguistic and interpretation services that PWGSC provides to Parliament are essential for its work. The Translation Bureau provided overnight translation of more than 9.5 million words of parliamentary debates last year, compared with an average of 7 million words in the previous three years. It also provided translation and interpretation for 82 parliamentary committees and sub-committees, compared to 70 the prior year.

This growing workload, combined with increased retirement expectations, represents a major challenge for the government. Canada needs 1,000 new translators every year, but Canadian universities produce only 300 graduates.

To face this growing need, PWGSC has established partnerships with Canadian universities and the language industry. The work of the Translation Bureau is highlighted in more detail in Section II.

Challenges

A number of key challenges, with their related risks and opportunities, were identified during 2006-2007. Specifically, working with our client departments and central agencies, we face the challenges of:

  • Continuing Business Renewal;
  • Improving Quality Control and Performance Measurement; and
  • Renewing Human Resources.

Continuing Business Renewal

Challenge: maintaining momentum for business renewal.

We have undergone two years of complex renewal of our main business areas, encountering various challenges in meeting targets. Although we have made major adjustments to our plans during 2006-2007, we remain committed to moving ahead with our renewal agenda to realize long-term efficiencies for Canadians.

Our challenge is to continue the renewal and modernization of our business processes so that we become a "Best in Class" organization in our delivery of common, central and shared services. For example, we must apply the real property and procurement management best practices found in the private and public sectors, domestically and internationally. We must also take a best practice approach to shared IT services and pension modernization by applying proven solutions found in other jurisdictions.

The momentum must be maintained for continuous improvement by achieving our performance expectations and using best practice standards to ensure quality services. Results-based planning and reporting can help to ensure that our performance will be measured and judged by our tangible past, present and future results.

Improving Quality Control and Performance Measurement

Challenge: improving quality control and performance measurement to improve service delivery and performance reporting across the department.

To ensure PWGSC achieves our objectives, we must improve quality control and performance measurement in the delivery of our services (including reporting results in a transparent and balanced manner).

Quality assurance activities are being enhanced in all major business lines to improve service delivery. Key performance indicators for each business line provide a basis for measuring and reporting on results achieved.

We will also continue to improve our financial management as well as our integration of business, human resources, and financial planning.

Together, these activities build upon the government’s Performance Management Framework, integrating results for Canadians with strategic outcomes, expected outputs and performance indicators to provide the basis for our performance story.

Renewing Human Resources

Challenge: sustaining a qualified, skilled and motivated workforce.

Public Service Renewal is a government-wide priority. For PWGSC, employee retirement, normal attrition, employee movement and recruitment difficulties continue to threaten our ability to provide, on a day-to-day basis, the consistent level of quality services and sound stewardship that our clients and Canadians expect.

To become a "Best in Class" organization, we will continue to need a workforce of knowledgeable, skilled and enthusiastic people, whose hard work and dedication will help maintain and improve the quality of our services and support our ongoing commitment to sound stewardship.

We must continue to seek and apply better ways of attracting and retaining qualified and competent staff in all areas of operation, but in particular, those related to translation and interpretation, auditing and evaluation, and information technology.