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Minister's Message

I am pleased to present Public Works and Government Services Canada's (PWGSC) 2010-2011 Report on Plans and Priorities, which summarizes the Department's priorities to realize the Government of Canada's commitments.

PWGSC aims 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.

Under Canada's Economic Action Plan, PWGSC is moving quickly on key infrastructure projects and making a positive contribution to the Canadian economy. We are accelerating our plans to repair and restore federal buildings, bridges and highways, as well to enhance the accessibility of buildings where federal services are provided. PWGSC is also providing critical support to other government departments who are delivering Canada's Economic Action Plan to Canadians.

In addition, we continue to improve our approaches to major procurements, including those in support of Canada's Armed Forces. To that end, we are working with the private sector to improve our procurement results for the Government of Canada and for Canadians.

Through the Office of Small and Medium Enterprises, PWGSC will continue to strengthen its relationships with suppliers by reducing procurement barriers, simplifying the contracting process, providing training and education to suppliers, and working with small and medium enterprises to ensure their concerns are addressed.

We are undertaking major projects to improve the way the government administers its pay and pension systems which will modernize service, introduce efficiencies, and improve our stewardship responsibilities in those areas. We are working to meet the growing demand for linguistic and interpretation services in both official languages, as well as Aboriginal and foreign languages.

As the custodian of the Parliamentary Precinct buildings, we will continue to renovate the core buildings to protect their architectural integrity and their heritage value.

To support the government's environmental agenda, we are working with other departments to establish priorities for the greening of government operations. Finally, we will continue to strengthen accountability and ensure transparency in our operations.

I am confident that the initiatives described in this report—supported by our dedicated employees—will make an important and lasting contribution to the sound management of the resources entrusted to us, and to the economic well-being of Canada and Canadians.

Section I – Departmental Overview

1.1 Summary Information

Raison d'être

Responsibilities

The Department, founded in 1841, 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 Area 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. The Act established PWGSC as a common service organization providing government departments, boards and agencies with support services for their programs, including:

• procurement;
• office accommodation and facilities;
• architectural and engineering services;
• construction, maintenance and repair of public works and federal real property; and
• linguistic, information technology, telecommunications, industrial security, consulting and auditing services.

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

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

• injects more than $14 billion annually into the Canadian economy through government procurement;
• issues more than 13 million federal pay and pension payments to Canadians;
• provides accommodation to parliamentarians and more than 255,000 public servants in 1,800 locations across Canada;
• provides translation and interpretation services for more than 1,800 sessions of Parliament annually, and translates 1.7 million pages of text on behalf of other federal organizations; and
• handles more than $1.7 trillion in cash flow transactions as the Receiver General for Canada.

Program Activity Architecture

PWGSC's Program Activity Architecture (PAA), as approved by Treasury Board, contributes to our strategic outcome of seeking high-quality, central programs and services that ensure sound stewardship on behalf of Canadians and meet the program needs of federal institutions. The following table lists the nine program activities that comprise PWGSC's PAA.

Strategic Outcome

Program Activities

1.2 Planning Summary

Financial and Human Resources

The following table summarizes PWGSC's total planned spending and human resources Full-Time Equivalents (FTEs) for the next three fiscal years (2010-2011 to 2012-2013).

Financial and Human Resources Summary
(in millions of dollars)

	Planned Spending
Financial Resources	2010-11	2011-12	2012-13
Gross Expenditures	6,423.8	5,527.1	5,342.3
Less Respendable Revenue	3,545.6	3,107.4	3,077.9
Net Expenditures	2,878.2	2,419.7	2,264.4
Human Resources	2010-11	2011-12	2012-13
Full-Time Equivalents (FTEs)	14,539	14,641	14,306

Planned Spending by Program Activity

Federal departments and agencies are supported by PWGSC's strategic outcome and program activities. PWGSC's strategic outcome is aligned with the Government Affairs spending area of the Government of Canada's whole-of-government reporting framework and thus, it supports all of the government's outcome areas by helping departments and agencies meet their responsibilities to deliver their mandates and serve Canadians.

The table below outlines PWGSC's net Forecast Spending for 2009-2010 and the net Planned Spending, by program activity, from 2010-2011 to 2012-2013.

Forecast and Planned Spending

Program Activity (in millions of dollars)	Forecast Spending 2009-10	Planned Spending
		2010-11	2011-12	2012-13
Acquisitions	133.7	119.2	119.2	118.4
Accommodation and Real Property Assets Management	2,076.7	2,063.5	1,635.7	1,498.3
Receiver General for Canada	128.2	129.2	128.9	128.9
Information Technology Infrastructure Services	31.2	10.1	6.6	8.3
Federal Pay and Pension Administration	38.9	44.4	51.0	30.9
Linguistic Management and Services	77.3	72.4	68.5	68.1
Specialized Programs and Services	111.5	94.8	94.1	100.3
Procurement Ombudsman	4.7	4.3	4.3	4.3
Internal Services	336.4	340.3	311.3	306.9
Total for strategic outcome	2,938.6	2,878.2	2,419.7	2,264.4
Note: Includes intradepartmental revenues and expenditures of $283.1 million for 2009-2010, $253.6 million for 2010-2011, $256.5 million for 2011-2012, and $261.7 million for 2012-2013 for a nil bottom line impact. The Forecast Spending for 2009-2010 includes Main Estimates and additional funding approved since Main Estimates, primarily related to Real Property activities (e.g. Accelerated Infrastructure Program plus price and volume increases). * The Procurement Ombudsman operates at arm's length from the Department but forms part of the Minister of PWGSC's portfolio.

Contribution of Priorities to Strategic Outcome

PWGSC's strategic outcome is to deliver “high quality, central programs and services that ensure sound stewardship on behalf of Canadians and meet the program needs of federal institutions.” In support of this goal, our efforts include the 15 key operational and management priorities described in the following table. These priorities have influenced many of the program activity planning highlights in Section 2 of this report.

In 2010-2011, in support of Canada's Economic Action Plan, PWGSC will focus heavily on delivering the second year of its Accelerated Infrastructure Program (AIP). The Department is investing more than $400 million over two years (2009-2011) to repair and renovate PWGSC's federally owned infrastructure under Canada's Economic Action Plan and Budget 2009. Program activities involved in the delivery of the AIP include Accommodation and Real Property Assets Management, Acquisitions, and Linguistic Management and Services. AIP planning highlights can be found in Section 2 of this report. Detailed information on the AIP can be found at http://www.actionplan.gc.ca/eng/index.asp.

Operational Priorities	Type	Program Activity	Description
Accelerated Infrastructure Program (AIP)	New	Accommodation and Real Property Assets Management Acquisitions Linguistic Management Services	In Budget 2009, PWGSC received over $400 million in additional funding over two years to implement the Accelerated Infrastructure Program (AIP) in support of Canada's Economic Action Plan. In 2010-2011, the second year of this program, we will further invest in our assets to achieve a more modern and greener infrastructure. AIP investments are grouped as follows: building repairs and renovations; enhanced accessibility; bridges and the Alaska Highway; Le Manège militaire; and federal contaminated sites. These investments across Canada are stimulating the economy and creating jobs for Canadians. PWGSC is supporting other government departments' Economic Action Plans by providing common services, particularly in the areas of procurement, real property and translation.
Military and Major Procurement	Ongoing	Acquisitions	In collaboration with National Defence, Fisheries and Oceans, Industry Canada and the Treasury Board Secretariat, PWGSC will work to further streamline acquisition processes and improve the efficiency of military and major procurements. This continues to be a significant priority. By engaging and working with industry, we will strive to maximize benefits for Canada through planned large investments in the Canadian Forces and the Coast Guard.
Procurement Renewal	Ongoing	Acquisitions	In consultation with key stakeholders, including small and medium enterprises, PWGSC is using best practices to modernize and streamline our procurement processes. It is supported by improved self-serve opportunities available through 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 more complex procurements, 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 its real property business by employing a systematic approach to transforming the following key business elements: portfolio management and asset integrity; delivery performance and client relationship management; business processes, systems and service delivery mechanisms; and, people and stakeholder partnerships. The objective is 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 parliamentary partners. The LTVP establishes renovating 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	In June 2007, PWGSC received approval to proceed with the Pension Administration Transformation. Our aim is to replace outdated systems infrastructure, conform to industry standards, and centralize the delivery of pension services within PWGSC's Public Service Pension Centre, in Shediac, New Brunswick. Over the next two and a half years, we will continue to implement the new pension solution, integrated with an imaging component, and complete the centralization of the remaining six pension services.
Pay Administration Transformation	Ongoing	Federal Pay and Pension Administration	PWGSC received approval in July 2009 to begin the preliminary phase of transforming pay administration, including a new service delivery model across government. Our goal is to transform the systems and processes by increasing flexibility and web self-service for managers and employees. We will improve efficiency in service delivery—generating significant government-wide operational savings.
Translation Renewal	Ongoing	Linguistic Management and Services	PWGSC is developing capacity to meet growing demand for translation and interpretation services in both official languages, Aboriginal languages and those foreign languages that are needed in military, diplomatic and intelligence areas. We 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 with our partners, we will continue to identify solutions for a more efficient and effective process for government and the private sector.

Management Priorities	Type	Program Activity	Description
Workforce for the Future	Ongoing	Internal Services	PWGSC continues to advance its human resources (HR) agenda to support effective people management and good HR practices through a back-to-fundamentals approach and by aligning efforts with Public Service Renewal. We recognize the importance of a productive and sustainable workforce and, as such, continue to support employee recruitment, retention and development. Our efforts include striking the right balance between post-secondary recruits, mid-career hires and inter-departmental mobility.
Getting the Fundamentals Right	Ongoing	Internal Services	To strengthen PWGSC's management fundamentals and enhance the integrity and transparency of our decision-making, we are introducing improvements to the management of our HR, internal controls, financial information reporting and other support processes. Quality improvements and enhanced management practices will improve the delivery of our operational priorities and reinforce an organizational culture that supports excellence in business decisions.
Risk Management	Ongoing	Internal Services	PWGSC has developed management tools and mechanisms to support departmental programs and priorities—including the AIP—to identify, monitor, report and manage risks. A proactive approach will place quality management at the front end of risk management and use a control risk assessment methodology. The Corporate Risk Profile is regularly updated to identify and assess key corporate-level internal risks and aid in developing departmental risk response strategies.
Client Service Improvement Initiative	New	Internal Services	PWGSC is introducing a new Client Service Improvement Initiative to implement sound service management practices. As part of this initiative, common/consistent instruments targeted at other government departments and responsive to their needs are being developed, based on government-wide best practices. In the first phase, we will develop a service implementation strategy.

PWGSC's nine program activities contribute to our strategic outcome. The table below describes the performance indicator and target for the Department's strategic outcome. This is a composite of the performance indicators and targets of 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, 2011.

Risk Analysis

PWGSC integrates risk management principles and practices in its strategic and operational decision-making. This assists the Department in minimizing the negative impacts of events resulting from uncertainty, while maximizing opportunities to improve our service delivery and add value to the operations of government. Our aim is to reinforce a risk-based, informed and ethical decision-making culture.

PWGSC will face a number of external and internal risks in 2010-2011. The dominant external risks focus on the growing operational demands associated with major project initiatives such as the Accelerated Infrastructure Program (AIP), military procurement and information technology.

While external risks will dominate PWGSC's operational requirements, internal risks are equally important for our Department's long-term viability. PWGSC will refresh its Corporate Risk Profile based on a departmental Operational Risk Profile. PWGSC's current internal risks include:

• human resources capacity and skills shortages;
• ability of legacy information management and information technology infrastructure to meet the modern needs of PWGSC and our key stakeholders;
• the sustainability of our business model for providing services to our client departments;
• risk averse public sector culture and its effect on departmental processes and practices; and
• demands related to organizational change required by major tranformational initiatives such as procurement renewal, changes to the real property business model, and pension/pay modernization.

In 2008, PWGSC created the Departmental Oversight Branch (DOB) to coordinate and manage oversight functions, including the development of risk mitigation strategies to manage risk across the Department. In the coming fiscal year, PWGSC's DOB will:

• work with an interdepartmental team of risk management professionals to assist in the development of the newest iteration of the Treasury Board Secretariat's Integrated Risk Management Framework;
• update PWGSC's Integrated Risk Management Policy and handbook to reflect the new Treasury Board Secretariat Framework and best practices developed by the International Organization for Standardization and the Canadian Standards Association;
• implement a Treasury Board (TB) submission risk assessment tool to improve risk management and risk communication to TB ministers for the Department's largest and most sensitive contract award transactions; and,
• leverage the new Contract Monitoring Program and specific new policies to identify and assess risk related to acquisitions and national real property projects.

Expenditure Profile

The following graph represents the spending trend for PWGSC in millions of dollars. The first three amounts of $2,603.3 for 2006-2007, $2,348.0 for 2007-2008 and $2,459.1 for 2008-2009 are actual final expenditures reported and explained in the Departmental Performance Reports for those fiscal years. The next figure of $2,938.6 for 2009-2010 represents Forecast Spending for the current year and is the most precise calculation since projects are operational and Treasury Board submissions have been approved. The last three figures reflect Planned Spending of $2,878.2 for 2010-2011, $2,419.7 for 2011-2012 and $2,264.4 for 2012-2013 and include known funding approved to date via the Expenditure Management System, such as Treasury Board submissions, transfers with other government departments, and reprofilings.

Under Budget 2009, and in support of Canada's Economic Action Plan, PWGSC's Accelerated Infrastructure Program (AIP) received investment funding of $431.4 million over two years, which excludes related administrative funding. This amount is split into $237.3 million for 2009-2010 and $194.0 million for 2010-2011 and accounts for 8.1 percent in 2009-2010 and 6.7 percent in 2010-2011 of the Department's total Planned Spending.

PWGSC Spending Trend

Voted and Statutory Items

For the 2010-2011 fiscal year, PWGSC plans to spend $2,878.2 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 $34.9 million, between 2010-2011 Planned Spending and the Main Estimates, relates to earmarked items for which funds will be spent on specific expenditures.

(in millions of dollars)

Vote or Statutory Item	Vote or Statutory Wording	Main Estimates 2009-2010	Main Estimates 2010-2011
1	Operating expenditures	1,947.5	2,300.6
5	Capital expenditures	349.1	451.4
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	78.4	87.2
(S)	Real Property Disposition Revolving Fund	(5.2)	(9.0)
(S)	Optional Services Revolving Fund	0.0	0.0
(S)	Consulting and Audit Canada Revolving Fund	(3.6)	(0.2)
(S)	Translation Bureau Revolving Fund	5.1	3.9
(S)	Payment in lieu of taxes to municipalities and other taxing authorities	0.0	0.0
(S)	Real Property Services Revolving Fund	10.0	10.0
(S)	Telecommunications and Informatics Common Services Revolving Fund	6.1	(0.7)
(S)	Defence Production Revolving Fund	0.0	0.0
Department Total		2,387.5	2,843.3

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