FAQs

General

A1.

The Way Forward is a wide-ranging strategy led by Public Works and Government Services Canada (PWGSC) to find innovative ways to deliver services smarter, faster and at a reduced cost, and to improve how the Government of Canada does business. It is part of Budget 2005 and of the government's agenda to improve management and accountability, demonstrate results and show Canadians that they are getting value for their money.

A2.

The Way Forward is part of PWGSC's ongoing commitment to help modernize government and provide the best service to Canadians. It is also part of the government's agenda to improve management and accountability, save money and reallocate the savings to higher priorities such as health care, early childhood development, a new deal for communities and the environment.

A3.

The Way Forward focuses on increasing efficiencies in three key areas:

1. Buying smarter: The government will save $2.5 billion over five years by maximizing its purchasing power and consolidating what it buys. We will also cut by 50% the time it takes to conduct procurement, and will reduce our internal procurement costs by 10%. We will monitor the impacts of our procurement changes on the supplier community – especially small and medium sized businesses – and address concerns as they arise.
2. Exploring savings in real estate: Our goal is to save $925 million over five years by managing our properties more effectively and improving the application of standards for office space. We will do this without reducing the visibility of the Government of Canada in regions and communities, and in keeping with our commitment to environmental excellence.
3. Taking full advantage of information technology systems: We want to make it easier for Canadians and businesses to interact with the government. This includes delivering more government services on-line through the Secure Channel, the Government of Canada's common infrastructure designed to enable interaction with its citizens, and increased sharing and better management of IT infrastructure services across government.

In addition, we will be taking steps to help lead the government's sustainable development agenda. We will undertake initiatives such as environmentally sound procurement and improve the energy efficiency of our buildings.

A4.

The Government of Canada is undertaking a fundamental shift in the way it does business. The Way Forward is a part of PWGSC's ongoing commitment to help modernize government, improve management and accountability, save money and reallocate savings to higher priorities such as health care, early childhood development, a new deal for communities and the environment.

Procurement

A5.

The savings will come from a number of steps. First, the government is making it mandatory for departments and agencies to use government-wide procurement tools, such as standing offers (when they exist) and the Government of Canada Marketplace – an on-line purchasing tool to be rolled out with several departments and agencies in 2005-06 – to buy a broad range of goods and services.

By using these tools, departments will pay less for certain commodities than they do now. In addition, by consolidating the purchase of these commodities, we will be able to negotiate better prices, which will mean even more savings.

We will also reduce the internal cost and administrative burden of procurement, and cut processing time by 50 per cent.

Finally, we will realize significant savings through the Shared Travel Services Initiative.

A6.

The objective of our procurement changes is to ensure the Government of Canada gets the best value for the goods and services it purchases and to reduce costs.

The government continues to be committed to providing a fair, open and transparent procurement system, and it will continue to fully consider the interests of small and medium sized businesses and promote opportunities for them in the procurement process.

The government is taking steps to secure the access of small and medium sized businesses (SMBs) to government procurement, such as requiring, where appropriate, that SMBs be included in major contracts, simplifying contracts and eliminating fees to access federal procurement opportunities. We have also established an office of small business as an entry point for doing business with government, and creating commodity councils that will include industry representatives and other stakeholders to help determine the right balance among factors such as efficiency, effectiveness and the effects on small, medium and regionally based businesses.

Finally, we will monitor the impact of our procurement changes on small and medium sized businesses and address concerns as they arise.

A7.

Consultations were conducted with suppliers and more than a dozen trade associations as part of the Government-Wide Review of Procurement. This was the most extensive review of government procurement in over 40 years. The review included interviews with stakeholders as well as extensive research into the best practices of other organizations.

Suppliers and other stakeholders were asked to comment on a discussion paper through meetings in regional offices across Canada. There was also a mechanism for people to provide feedback on-line. In addition, individual suppliers across Canada could either submit comments directly to us or through their associations.

The majority of feedback on our proposals was positive and confirmed that our approach is the right one.

A8.

The Way Forward is about achieving best value at better prices. PWGSC is committed to delivering services smarter, faster and at a reduced cost, while keeping in mind other factors such as sustainable development, aboriginal economic development and the impacts of procurement on small and medium sized businesses. We are not adopting a "one size fits all" approach. We will give consideration to individual commodities and determine the right balance among various factors in our purchasing decisions.

A9.

The current Standing Offer Index on the Web lists approximately 29,000 standing offers. It is a complex web site to navigate, which makes it difficult for departments and agencies to search and find products and services. The index is being revamped to facilitate the access to and use of the standing offers. We will also set up a help line to assist departments with their procurement needs.

We are also working with departments and agencies to gain a fuller understanding of everything they buy and what channels they use to buy them. With this information, we will be in a better position to negotiate lower prices with suppliers for standing offers on those products and services most needed by departments and agencies.

A10.

Every year, the government buys about $13 billion worth of goods and services. Because departments currently have wide latitude in purchasing products and services from many different sources, the government has not been able to leverage its buying power or get the best price for its standing offers.

By introducing common procurement tools such as the Government of Canada Marketplace, making standing offers mandatory and improving other supply arrangements, PWGSC will be able to negotiate better prices, cut by 50% the time it takes to conduct procurement, reduce its internal procurement costs by 10% and achieve significant savings for the Government of Canada.

A11.

The government's action plan to implement the recommendations of the Task Force on Procurement will be phased in over a five-year period. We expect to achieve $39 million savings in 2005-06, with savings increasing as we negotiate better prices with suppliers for standing offers, move to a full implementation of Government of Canada Marketplace and consolidate purchasing across government.

Real Property

A12.

The savings will come from various sources including the reduction of the current space of over 21 square metres per employee to the existing PWGSC standard of 18 square metres, which is more in keeping with private sector practices. Similarly, the consistent application of interior fit-up standards will provide affordable, productive and more environmentally sustainable work environments. The government will also realize savings from improving how it manages its properties, reducing overhead costs, and exploring efficiencies opportunities.

A13.

No decision has been made on the sale of federal government buildings. Through a competitive process, PWGSC will be seeking private sector advice on how to improve the ways it manages office properties. Specifically, the study (known as the Real Estate Study) will look at the most cost-effective and efficient ways to accommodate employees while improving the environmental performance of its real estate portfolio and gaining the flexibility to provide better services to Canadians.

A14.

We are not privatizing building management. PWGSC will remain accountable for the management of its buildings. The department will contract out services where the private sector is more efficient, as it has done for some years now.

A15.

No. Whatever decisions are made, we will ensure continued federal presence in all regions of Canada, that heritage properties are considered, and support other public policy goals such as working with local governments to support community objectives. We will carefully consider all options and consult with stakeholders before taking any action.

A16.

As part of our process to explore the most cost-effective and efficient ways to accommodate federal government departments, we will also consider other financing vehicles. PWGSC will be looking at ways it could gain access to private capital to renovate or replace its office space.

In the meantime, PWGSC will continue to provide the ongoing maintenance required to ensure the buildings are properly maintained and are in compliance with relevant building codes and health and safety regulations.

A17.

The amount of office space per employee is in keeping with private sector practices. The standards were designed to offer a quality, productive workspace for government employees while meeting health and safety requirements.

Greening Government Operations

A18.

A new Office of Greening Government Operations has opened up to provide a government-wide centre of expertise and leadership on environmental issues. This office will give guidance to the federal community on such issues as green procurement, green property management, recycling and waste management, and remediation of contaminated sites.

A19.

PWGSC has a great deal of experience in sustainable development, and we will continue to lead by example with initiatives such as green procurement and energy efficient buildings.

We will include environmental criteria so that green procurement is given a priority for standard commodities wherever possible.

We have shown that greening government operations can save money. For example, since 1990, PWGSC has reduced greenhouse gas emissions in its operations by approximately 20%, saving $16 million on its annual energy bill. And by lowering fuel consumption by just 10% in the government's fleet, we could achieve annual savings of approximately $5 million. Greening government makes good economic sense.

A20.

The government will significantly increase its purchase of hybrid and alternative fuel vehicles, and adopt more stringent user practices such as anti-idling, proper vehicle maintenance and vehicle sharing.

We will also ensure that, as of 2005, new government office buildings will be constructed to meet the LEED (Leadership in Energy and Environmental Design) Gold standard. Buildings that meet this standard use, on average, slightly over one-half of the energy required by the average equivalent office building presently in the government's inventory. This standard will also be sought in the case of new long-term leases.

PWGSC will modernize the government's central heating and cooling plants in Ottawa. This will reduce the greenhouse gas emissions of the government's office building inventory by a further 8-10%.

Information Technology

A21.

The Shared IT Services Agenda is part of the government's overall initiative to improve the management of IT services across departments and agencies. It rests on the following premise: a government-wide, coordinated approach to managing IT services can yield better, faster, more cost-effective results for clients and taxpayers.

The Secure Channel is the centrepiece of the government's common IT infrastructure – the systems and services that make a government-wide approach to IT possible. It provides citizens and businesses with secure, private, high-speed access to the government's on-line services. It also provides network services for all federal departments.