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Minister's Message

It is my pleasure to present Public Works and Government Services Canada’s (PWGSC) 2011-2012 Report on Plans and Priorities. This report outlines the Department’s priorities in support of the Government of Canada.

We will continue to modernize our procurement processes, ensuring fair, open and transparent processes while providing best value to Canadians, and supporting other departments in delivering their services to Canadians. We are continuing to work on streamlining military procurement so that we can provide the necessary equipment to support our men and women in their missions.

Our Office of Small and Medium Enterprises will continue to work with suppliers, making it easier for them to do business with the Government of Canada and improving access to procurement opportunities. We will also continue to implement the Canadian Commercialization and Innovation Program on a pilot basis to support businesses in bringing their innovative products to markets for the first time.

As the custodian of the Parliamentary Precinct buildings, we will continue to renovate the core buildings (the West, Centre and East Blocks) to protect the architectural integrity of these national heritage landmarks.

PWGSC’s Client Service Strategy is entering its second year of implementation and is now well advanced in achieving a common department-wide approach to client service management. We will continue to bring greater clarity to client service priorities and expectations, improve how we measure client satisfaction, and develop a more systematic approach to building our client service culture within PWGSC.

PWGSC is implementing major projects to improve the way the government administers its pay and pension systems. We are replacing our 40 year old pay system with a modern, off-the-shelf, commercial system, and consolidating pay services in a new Centre of Expertise in Miramichi, New Brunswick. This new system will offer expanded self-service capabilities that will improve efficiency and reduce timeframes for processing pay transactions.

We are also ensuring the sustainability of PWGSC’s pension administration through the replacement of outdated systems, and through our commitment to provide modern industry standard services to employees and pensioners.

An important focus for us in 2011-2012 will be our contribution to the Federal Sustainable Development Strategy, which will ensure that environmental sustainability is integrated in decision-making. In particular, we will work to reduce greenhouse gas emissions arising from our extensive real estate portfolio, as well as from our use of vehicles.

I am confident that the initiatives described in this report will make a major contribution to the sound management of the resources entrusted to us on behalf of Canadians.

The Honourable Rona Ambrose
Minister of PWGSC

Section I - 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 the Government of Canada. We are its principal banker, accountant, central purchasing agent, linguistic authority, real property manager and enabler of access to government services online.

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

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 more than 14,000 staff working in the National Capital Area, as well as in offices in Halifax, Montreal, Toronto, Edmonton and Vancouver and other locations throughout the regions.

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 14.6 million federal pay and pension payments to Canadians;

• provides accommodation to parliamentarians and more than 265,000 public servants in 1,855 locations across Canada;

• provides translation and interpretation services for more than 1,700 sessions of Parliament annually, and translates 1.7 million pages of text on behalf of other federal organizations; and

• handles over $2 trillion in cash flow transactions as the Receiver General for Canada.

Contribution to the Federal Sustainable Development Strategy (FSDS)

The Federal Sustainable Development Strategy represents a major step forward for the Government of Canada by including environmental sustainability and strategic environmental assessment as an integral part of its decision-making processes. During the next three years, PWGSC will play an important role in greening government operations, which addresses Theme IV of the FSDS “Shrinking the Environmental Footprint – Beginning with Government”. The Department’s activities in this area are further explained in Section II and III.

More than 80% of the federal government’s greenhouse gas emissions come from its buildings. As custodian of 24% of the federal inventory of building space, PWGSC’s efforts to reduce emissions related to building operations will make a substantial contribution to this Theme IV target. PWGSC has one of the greenest fleets in the federal government with 58% of the fleet being hybrid or alternate fuel vehicles. Further efforts to reduce departmental fleet emissions will also contribute to the Theme IV target of reducing greenhouse gas emissions. Other Theme IV targets that will be supported by PWGSC include reducing internal paper consumption, strengthening green procurement-related requirements, disposing of electronic waste in an environmentally sound and secure way, and adopting a green meeting guide.

PWGSC’s programs and activities supporting the FSDS are tagged with the following graphic representing Theme IV.

For additional details on PWGSC’s activities to support sustainable development, please see

• http://www.tpsgc-pwgsc.gc.ca/ecologisation-greening/publications/renouvelable-sustainable-eng.html
• [ GGO table housed on the TBS website ]

and for complete details on the Federal Sustainable Development Strategy, please see http://www.ec.gc.ca/dd-sd/default.asp?lang=En&n=C2844D2D-1.

Program Activity Architecture (PAA)

PWGSC’s Program Activity Architecture (PAA), as approved by the Treasury Board, supports 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.

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 (2011-2014).

Financial and Human Resources Summary

Note: Totals may not add up due to rounding.
	Planned Spending
Financial Resources (in millions of dollars)	2011-2012	2012-2013	2013-2014
Gross Expenditures	6,286.9	5,765.9	5,762.3
Less Respendable Revenue	(3,569.4)	(3,323.0)	(3,183.2)
Net Expenditures	2,717.5	2,442.9	2,579.1
Human Resources
Full-Time Equivalents (FTEs)	14,244	14,512	14,546

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 therefore supports all of the government’s outcome areas by helping departments and agencies to deliver their mandates and serve Canadians.

The table below outlines PWGSC’s net Forecast Spending for 2010-2011 and the net Planned Spending, by program activity, from 2011-2012 to 2013-2014.

Forecast and Planned Spending

Note: The Forecast Spending for 2010-2011 includes Main Estimates and additional funding approved since Main Estimates, primarily related to Real Property activities (e.g. price and volume increases). Totals may not add up due to rounding.
Program Activity (in millions of dollars)	Forecast Spending 2010-2011	Planned Spending			Alignment to Government of Canada Outcomes
		2011-2012	2012-2013	2013-2014
Acquisitions	145.3	146.6	137.6	122.6	Well-managed and efficient government operations
Accommodation and Real Property Assets Management	2,235.4	1,903.2	1,693.1	1,865.3	Well-managed and efficient government operations
Receiver General for Canada	126.2	128.6	128.6	128.6	Well-managed and efficient government operations
Information Technology Infrastructure Services	25.0	24.8	14.0	5.4	Well-managed and efficient government operations
Federal Pay and Pension Administration	50.1	67.7	31.7	28.1	Well-managed and efficient government operations
Linguistic Management and Services	78.9	77.2	73.7	64.8	Well-managed and efficient government operations
Specialized Programs and Services	65.2	53.2	52.6	52.6	Well-managed and efficient government operations
Procurement Ombudsman*	4.5	4.3	4.3	4.3	Well-managed and efficient government operations
Internal Services	369.7	311.8	307.3	307.3	N/A
Total for strategic outcome	3,100.3	2,717.5	2,442.9	2,579.1

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’. Our work in support of this goal includes the 12 key operational and management priorities described in the table below, which are also reflected in the program activity planning highlights in Section 2 of this report.

PWGSC’s Client Service Strategy

Both the “quality services” and “sound stewardship” aspects of PWGSC’s Strategic Outcome will be supported by the Department’s Client Service Strategy, now in its second year of implementation. This department-wide initiative consists of six elements:

• Service Agreements,

• Service Standards,

• Client Satisfaction,

• Client Engagement,

• Service Culture and

• Innovative Service Offerings.

The objective is to build a common, department-wide approach to client service management, in consultation with client departments, that will bring greater clarity to service priorities and expectations, improve client satisfaction measurement, facilitate better client engagement, and introduce a more systematic approach to the ongoing development of a client service culture at PWGSC.

Building on the progress made over the past year, each element of this strategy will be further implemented in 2011-2012 in all business branches, and further supported by those specific tools and processes they need to address their unique requirements.

Operational Priorities	Type	Program Activity	Description
Procurement Modernization	Ongoing	Acquisitions	Streamlined processes will be implemented for less complex, low risk procurements. Departments’ access to pre-competed procurement tools and methods of supply will be enhanced through on line tools, risk-based delegation mechanisms, and an evolving service strategy. Work will begin on improving complex and higher risk procurement processes. Strengthening relations with suppliers will continue by making it easier for them to do business with the Government of Canada via a supplier portal and outreach by the Office of Small and Medium Enterprises.
Real Property Modernization	Ongoing	Accommodation and Real Property Services	PWGSC continues to modernize our real property business by improving performance in key areas of our operations. We will efficiently manage our real property portfolio using innovative approaches and effective service delivery mechanisms, such as the increased use of private sector capacity where appropriate. The department will improve how we evaluate and communicate the results of our work through enhanced performance reporting. We will strengthen stakeholder relationships through an increased focus on clients and partners, and improve project delivery through the application of lessons learned.
Greening of Government Operations	Ongoing	Specialized Programs and Services	In the context of the Federal Sustainable Development Strategy, PWGSC is committed to working closely with other government departments on strategies to improve the environmental performance of the federal government’s operations in the areas of land, buildings, business and movement. In addition, the department is committed to reducing its own environmental footprint through the implementation of 19 sustainable development commitments and other initiatives.
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 of the Senate, the House of Commons and the Library of Parliament. The first priority of the LTVP is the renovation of the core buildings (the West, Centre and East Blocks). Major restoration work will begin on the West Block and East Block’s northwest tower, and final designs for the Wellington Building and the former Bank of Montreal will be completed.
Information Technology Shared Services	Ongoing	Information Technology Infrastructure Services	In partnership with other departments and agencies, PWGSC is leading a number of key initiatives to streamline operations and achieve better enterprise efficiencies for government-wide Information Technology. These initiatives involve modernization, and consolidation, within the four ITSS lines of business: telecommunications services, data centre services, IT security services, and distributed computing environment services. PWGSC has launched the GC Data Centre Consolidation (DCC) strategy to examine approaches to Enterprise IT Infrastructure and the number of data centres in the Government of Canada, thereby reducing operating costs, increasing interoperability, improving security and reducing environmental impact through lower energy consumption. In conjunction with TBS-CIOB the Cyber Authentication strategy will evolve the current Secure Channel authentication service to provide secure and reliable on-line access to GC programs and services across the GC. In addition, virtual computing approaches will be launched and further advance and align with GC Cloud Computing Security framework.
Transformation of Pension Administration	Ongoing	Federal Pay and Pension Administration	The aim of the Transformation of Pension Administration 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. By November 2011, we will: implement the new core pension system components for the remaining two types of pension transactions, as well as web-based self-service for employees; and centralize in the Pension Centre the remaining pension service currently delivered by departments.
Transformation of Pay Administration	Ongoing	Federal Pay and Pension Administration	The Transformation of Pay Administration Initiative, approved in July 2009, will: replace the 40-year-old pay system; modernize processes and build web-based self-service; and gradually consolidate pay administration services from other departments to PWGSC’s new Centre of Expertise in Miramichi, New Brunswick. This will ensure the long-term sustainability of the Government of Canada pay administration and increase efficiency, generating $79M in annual savings. In 2011-2012, the following will be completed: an analysis to evaluate the proposed new pay solution against the Government of Canada pay requirements; and the new Centre of Expertise will be in operation with the first wave of centralized departments.
Linguistic Services Renewal	Ongoing	Linguistic Management and Services	In 2011-2012, PWGSC’s Translation Bureau will strengthen its partnership with federal departments and agencies to provide quality translation, interpretation and other linguistic services at a reasonable cost. We will also assess the application of leading-edge technological solutions to the delivery of translation services.
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. This program ensures that controlled goods are protected against unauthorized possession, examination or transfer when in custody of the private sector. In 2011-2012, working with our stakeholders and partners, we will continue to modernize and transform ISP processes to provide quality, timely and cost-effective services to support industry and government clients.

Management Priorities	Type	Program Activity	Description
HR Renewal	Ongoing	Internal Services	PWGSC will continue to advance our HR agenda while actively supporting Public Service Renewal, including an increased focus on renewing the workplace. We are working to streamline processes, increase collaboration and provide tools to support effective people management, which will also benefit client service. Our HR infrastructure will be modernized by implementing common HR business processes; maximizing the use of collective staffing; and implementing our new, streamlined HR Policy Suite and associated instruments.
Improved Financial Management	Ongoing	Internal Services	PWGSC will improve financial management by focusing its efforts in three key areas: 1) enhanced integrity of financial information; 2) strengthened internal controls; and 3) implementation of the Budget Management Excellence Framework. To strengthen PWGSC’s management practices, enhance the integrity of financial information and the transparency of decision-making, the Finance Branch will continue to improve the departmental business and internal control processes by introducing a business intelligence reporting tool. In addition, improvements will be made to the financial system (SIGMA) as well developing a training strategy and strengthening governance. PWGSC’s Budget Management Excellence Framework, based on sound analysis and reliable information, is a set of financial strategies, accountabilities and incentives. The Framework provides assurance that the Department’s management of public funds is supported by effective financial planning, budgeting, monitoring and reporting. With this robust Budget Management Excellence Framework, PWGSC will ensure enhanced budget forecasting, resource optimization and greater alignment of resources to business priorities.
IT Modernization	Ongoing	Internal Services	PWGSC will continue to demonstrate excellence in its stewardship of the Information Technology (IT) function by reducing the cost of IT operations and providing reliable and efficient IT services. Through the alignment of PWGSC strategic objectives and IT investments, with emphasis on facilitating the modernization agenda, PWGSC will ensure a foundation to deliver efficient and effective IT services. PWGSC will also strengthen its Information Management (IM) program to support effective decision-making and to facilitate the delivery of programs and services. An Enterprise Information Management Strategy will be developed to ensure that the prioritization of the initiatives will progressively move PWGSC towards the vision of a modernized digital office. Implementation will begin in 2011-2012 and continue over the following 3 years. This strategy will be refreshed annually.

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. All nine of PWGSC’s program activities contribute to our strategic outcome.

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, 2012.

Risk Analysis

PWGSC integrates risk management into business planning, decision-making and organizational processes. In doing so, the Department minimizes negative impacts and maximizes opportunities in service delivery and adds value to government operations. The outcomes we seek are well-managed, cost effective programs and projects that are consistent with the Government of Canada’s values and ethics.

PWGSC will face a number of internal and external risks in 2011-2012, including those associated with the implementation of PWGSC’s Strategic Review, and the government-wide Administrative Service Review decisions. At PWGSC, we have used the Strategic Review opportunity to conduct a comprehensive review of all of our programs and expenditures to ensure that they are effective and efficient, that they meet the priorities of Canadian and are well aligned with our responsibilities. To address these risks, PWGSC will keep its Corporate, Operational, Branch and Regional Risk Profiles updated. A current list of some of the key corporate and operational risks includes:

• Delivery and Change Management of Government-wide Transformational Initiatives – There is a risk that delivery and change management of government-wide transformational initiatives may not succeed (e.g. the sunset of the Accelerated Infrastructure Plan, implementation of the Strategic and Administrative reviews, Alternate Forms of Delivery re-procurement, and military procurement).

• Human resources capacity and skills shortages – There is a risk HR capacity and turnover challenges may hinder PWGSC’s ability to achieve its mandate and priorities. There is also a risk that the department may have a skills gap (e.g. analytical/vision execution, contract/financial), which may impact its ability to successfully implement PWGSC priorities and major initiatives.

• Ability of IM/IT Infrastructure to Meet Needs – There is a risk that the current PWGSC IM/IT infrastructure (e.g. HRMS, pay and pension modernization, SIGMA reporting) may not effectively support the needs of PWGSC and/or its key stakeholders.

• Sustainability of Business Model Risk – There is a risk that the current PWGSC business model (given its size, complexity, multiple branches, regional model) may not be sustainable or may not meet the needs of stakeholders/clients.

• Risk-averse Culture and Business Processes/Practices – There is a risk that PWGSC’s risk-averse culture and existing business processes/practices (e.g. HR, procurement, web of rules) may hinder the department’s ability to adapt, innovate, and respond quickly.

Expenditure Profile

The federal government is focused on decreasing deficits and increasing efficiencies. PWGSC is responding by taking concrete steps to address the focus on increased fiscal restraint including the implementation of Strategic Review. Federal Budget 2010 announced a number of cost containment measures to reduce the growth in operating expenditures in 2010-2011 and the following two fiscal years. As a result of Federal Budget 2010, all departments must contain growth through efficiencies and reallocate resources within their operating vote to meet their obligations. Over the course of the next few years, PWGSC will face several financial management challenges including: implementing the Strategic and Administrative Reviews; absorbing collective bargaining increases until 2012-2013; strengthening departmental forecasting performance; monitoring of department expenditures including travel, hospitality and conferences; careful management of revenues; and, close monitoring of financial risks to ensure that resources are directed to higher business priorities.

Departmental overhead expenditure will be examined in light of overall program spending. Recent analysis indicates that overhead expenditures are reasonably low and have not increased at the same rate as the growth in business volumes. Over the past five years, the Department’s total expenditures increased by 36.3%, while internal services increased by 15.6%. PWGSC spends less on overhead costs (7% of total expenditures) than the average of most departments (10%).

From a financial management perspective, the Budget Management Excellence Framework has been developed and implemented at PWGSC. The Framework is based on sound analysis and reliable information. It is a set of financial strategies, accountabilities and incentives and provides assurance that the management of public funds is supported by effective financial management, planning, budgeting, monitoring and reporting. The Framework ensures that expenditures are within the approved authorities and resources are optimized and aligned to priorities. PWGSC is well positioned to address challenges in the current fiscal environment. The Department has sound financial management practices, monitors expenditures, ensures checks and balances are in place, manages financial risk, and is implementing the Government’s new Financial Management Policy Framework (Chief Financial Officer model).

PWGSC Spending Trend (in millions of dollars)

The year over year variances in the table above are explained as follows:

• Planned spending decrease from 2010-2011 to 2011-2012 is due primarily to the termination of the Federal Accelerated Infrastructure Investment (AIP) program which ends in 2010-2011; a decrease in the funding received to cover the inflation and non-discretionary pressures related to the maintenance, rent and utilities of real property assets; and a decrease in funding for government wide accommodations.

• Planned spending decrease from 2011-2012 to 2012-2013 is due primarily to funding for the Long Term Vision and Plan project (Parliamentary Precinct) which is lower in 2012-2013; further decreases in government wide accommodation funding; and the termination of funding for the Engineering Assets project which ends in 2011- 2012.

• Planned spending increase in 2012-2013 to 2013-2014 is for such items as the Long Term Vision and Plan project (West Block) and the acquisition of the Terrasses de la Chaudière building.

As part of Federal Budget 2009, and in support of Canada’s Economic Action Plan, PWGSC’s Accelerated Infrastructure Program (AIP) received investment funding of $435.4 million over two years; $237.3 million for 2009-2010 and $198.1 million for 2010-2011.

Estimates by Vote

For information on our organizational votes and/or statutory expenditures, please see the 2011-2012 Main Estimates publication. An electronic version of the Main Estimates is available.

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