PWGSC > PWGSC Reports > DPR 2005-2006 > Section I - Departmental Overview 2005-2006 Departmental Performance Report

Section I - DEPARTMENTAL OVERVIEW

Our Raison d’être

Our raison d’être is to ensure optimum value to the government and to Canadians in the provision of common, central and shared services. Through the delivery of our core services, Public Works and Government Services Canada (PWGSC) enables other government departments and agencies to deliver on their mandates.

PWGSC’s Value Proposition

During 2005-2006, PWGSC focused on the strategic areas that government and client organizations have indicated they value. These are reflected in PWGSC’s five-point Value Proposition.

• Strengthening Management and Public Confidence – PWGSC operates with appropriate checks and balances to strengthen public confidence in government operations by improving the accountability, efficiency and transparency of our operations.
• Increasing Savings and Productivity – As the common, central and shared services provider for government, PWGSC responds to the needs of government while devising strategies to yield significant savings and productivity improvements on behalf of client departments and Canadians.
• Delivering Quality Services – PWGSC aims to deliver quality goods and services to our clients, at the right quantity, price and time. In so doing, we educate our stakeholders and devise frameworks to strike a balance among their needs and those of government as a whole.
• Supporting the Government’s Strategic Agenda – Most of government’s strategic priorities require PWGSC participation. For example, PWGSC supports the Federal Accountability Act and Action Plan, by augmenting sound management of government polling and advertising, and ensuring that government procurements are fair and transparent. PWGSC is committed to ensuring that small and medium enterprises receive due consideration for government contracts. PWGSC is also committed to leading government-wide efforts in the greening of the federal government’s operations.
• Delivering Major Projects of National Importance – PWGSC focuses on results in providing professional capacity for managing complex and high-value projects of national importance such as military procurement.

Our Business

PWGSC has an annual budget of about $4.5 billion and employs approximately 12,500 people. It is the government’s principal real property manager and steward, central purchasing agent, banker and accountant. It also provides services in the areas of payroll and pensions, information technology, translation, audit, communications, consulting, industrial security and shared administrative systems. In addition, PWGSC has a leadership role in the Government On-Line (GOL) initiative and in the greening of government operations.

PWGSC provides its services in a professional, innovative, efficient and effective manner. It ensures that transparent and independent checks and balances are carried out to safeguard the management of public funds.

Strategic Outcomes

PWGSC plays a key role in providing the core infrastructure and services needed for the delivery of the government’s agenda and for responding to the evolving needs and expectations of Canadians. To conduct our business and guide our department’s transformation, we are focusing on two strategic outcomes: Quality Services and Sound Stewardship.

Quality Services: The delivery of quality services is central to PWGSC’s vision as a “centre of excellence” in the provision of common, central and shared services to federal departments and agencies. However, the concept of quality services goes beyond providing effective support to clients: it also means generating savings and improving performance on a government-wide basis for the benefit of all Canadians.

PWGSC adds value by exploiting economies of scale and providing specialized expertise to support public servants across the country. The department also provides benefits to Canadians through the strategic role it plays in building the country’s electronic, information, physical and translation infrastructures.

Sound Stewardship: PWGSC’s second strategic outcome, Sound Stewardship, stems from its responsibility to retain the capacity to offer needed services well into the future in a manner that inspires public trust. This means safeguarding the assets entrusted to the department, including the skills and knowledge of its employees as well as its physical infrastructure and systems.

Sound Stewardship safeguards the public trust by ensuring that our work is done in accordance with high standards of accountability, transparency, prudence, probity, consistency and fairness.

Our Expenditure and Savings Summary

The PWGSC Expenditure Summary for 2005-2006 (Figure 1) presents the expenditures for PWGSC (i.e., Government Services Program) by our seven key government service areas: Real Property; Acquisitions; Information Technology; Receiver General and Public Service Compensation; Government Information Services; Business Integration; and Special Operating Agencies.

In addition to the standard delivery of its services, PWGSC is leading a government-wide effort to reduce the cost of procurement and real property. PWGSC is planning and leading initiatives expected to produce several billion dollars in government-wide savings for taxpayers.

A summary of Expected Government-wide Net Savings is provided in Figure 2. In 2005-2006, PWGSC substantially exceeded its target government-wide net savings of $177 million. We contributed to government and Canadians an estimated $229 million in net savings ($69 million in acquisitions and $160 million in real property).

		Figure 1		PWGSC Expenditure Summary for 2005-2006
		Government Services Program		Raison d’être---to ensure optimum value to government and Canadians in the provision of common, central and shared government services
		Strategic Outcomes		Quality Services Sound Stewardship
		Government Service Note: See Section III for financial details.		Service Planned Spending 2005-2006 Total Autho- rities Actual Spen-ding 2005-2006 Real Property 2,004 1,830 1,701 Acquisitions 179 246 231 Information Technology 154 317 297 Receiver General and Public Service Compensation 167 180 172 Government Information Services 49 63 60 Business Integration 34 26 22 Special Operating Agencies 53 53 44 Total Spending 2,641 2,714 2,528 Total FTE's 12,945 12,819 12,483
	Totals may not add up due to rounding.

PWGSC Performance Context

As a common service organization, PWGSC must satisfy clients’ requirements for timely and responsive services, while simultaneously ensuring full compliance with central agency policies. In addition, to meet the Expenditure Review goals for government-wide savings, PWGSC implemented year one of its five-year business transformation agenda, while responding to other challenges in its environment.

Business Transformation Agenda

The department is currently leading a five-year transformation of its business, known as The Way Forward. It aims to find innovative ways of delivering services smarter, faster and at reduced cost, while preserving the confidence of Canadians in the integrity and fairness of the Government of Canada by acting in an open and transparent manner.

The Way Forward has established a specific target of generating government-wide savings of $3.4 billion over five years:

• $2.5 billion in the area of acquisitions by strategically managing and improving government procurement of goods and services; and
• $925 million in the area of real property by managing properties more effectively and improving the application of standards for office space.

In addition, the business transformation agenda includes a wide range of initiatives aimed at improving the management and stewardship functions of PWGSC, including:

• enhancing capacity for managing risk and tracking performance;
• moving toward a shared services model in the area of Information Technology (IT); and
• greening of government operations.

In its first year of implementation, The Way Forward transformation agenda has met some challenges. These included the need to implement a new framework for acquisitions, to develop new tools and systems, to forge new relationships with client organizations, to provide extensive training and to undertake a degree of organizational restructuring.

PWGSC has also faced a number of operational challenges such as: replacing aging technology and buildings requiring long-term capital and service delivery plans; and HR succession planning concerns associated with the recruitment, training and retention of specialists in finance, audit, information technology and procurement.

Performance Results

To meet the challenges posed by implementing its transformation agenda, while continuing to deliver quality services with sound management and stewardship, PWGSC focused on four priorities in 2005-2006:

1. Strengthening Accountability and Transparency;
2. Implementing the Business Transformation Agenda;
3. Supporting the Government’s Strategic Agenda; and
4. Delivering Major Projects of National Importance.

A) Strengthening Accountability and Transparency

In 2005-2006, PWGSC undertook a number of initiatives to strengthen accountability and transparency, manage risk and ensure a culture of integrity.

Central to these efforts, the department created the position of Chief Financial Officer to strengthen is financial management and accountability. In addition, PWGSC established the Office of the Chief Risk Officer (OCRO) to:

• develop and implement an Integrated Risk Management Framework across the department;
• establish mechanisms to address potential wrongdoing under the Public Servants Disclosure Protection Act; and
• help ensure fairness in contracting.

PWGSC notably improved its compliance rate on access to information requests to 92.4 percent, a 10-percent improvement over the previous year.

Accountability within the Real Property Branch was strengthened by establishing a National Service Level Agreement and signing a Memorandum of Understanding with its parliamentary partners.

Furthermore, the department continued to strengthen advertising and public opinion research coordination, reinforcing accountability and transparency in its technical coordinating authority role for these activities. These changes were in line with the recommendations of the November 2003 Auditor General’s Report relating to advertising activities and management of public opinion research. Further changes were planned as a result of the November 2005 Auditor General Report on the quality and reporting of government surveys.

During the year, the department continued to provide timely and accurate information and documentation to the Gomery Inquiry, the Agent of the Attorney General for the recovery of funds, the RCMP and the Sûreté du Québec for their criminal investigations.

Finally, in support of enhanced government accountability, PWGSC made significant contributions to the development of the Federal Accountability Act and Action Plan, especially in the area of procurement reform.

B) Implementing the Business Transformation Agenda

The business transformation agenda focused on the twin goals of government-wide savings and management improvement. PWGSC exceeds its targeted savings for the year.

In the area of acquisitions, improvements in acquisitions processes contributed approximately $69 million in net savings, while the introduction of mandatory standing offers promises further savings. The department has developed detailed plans to achieve the balance of the savings commitments over the next four years, including the identification of key risks and mitigation strategies.

In the area of real property, PWGSC achieved $160 million in net savings, meeting its target for the year. These savings are the result of the application of space and fit-up standards, improved inventory management, reductions in overhead, and outsourcing opportunities. A major effort is now under way to identify strategies that will enable the department to meet its five-year target in real property savings.

In the area of information technology, although there are no specific savings targets, the economies associated with the IT Shared Services Initiative should yield continuing savings for government. The past year saw significant progress on IT shared services, including extensive consultations with clients and central agencies, leading to the development of agreements in principle with key stakeholders.

During the year, PWGSC undertook a number of steps to improve management within the context of the business transformation agenda. This included the establishment of the Strategic Transformation Branch, to plan, coordinate and monitor The Way Forward transformation agenda and oversight committees.

The department adjusted its organizational structure to better support the transformation and transparency objectives. This included:

• transfer of Public Access Programs to Service Canada;
• organizational separation of the consulting and audit services offered by Consulting and Audit Canada in order to increase transparency and accountability;
• reassignment of the functions of the Service Integration Branch and the integration of its client relations specialists into the acquisitions, real property and IT branches; and
• re-establishment of a stand-alone Human Resources Branch with an enhanced focus on recruitment and retention efforts.

During the year, PWGSC strengthened management in key areas within its branches. This included the establishment, within the Acquisitions Branch, of a Commodity Management Framework and commodity councils, with representation from some 40 departments, and the launching of a National Project Management System within the Real Property Branch.

Other branches, such as Government Information Services and the newly created Office of Greening Government Operations, took steps to build their capacity to respond to their new responsibilities and services.

The Greenstone Building is the first North of 60 Leadership in Energy and Environmental Design (LEED)-Canada-Gold-Standard-certified office building. The building was completed and ready for occupancy in Fall 2005.

C) Supporting the Government’s Strategic Agenda

PWGSC supported the government’s strategic agenda, both directly and indirectly, in a number of areas. As already highlighted, the most significant among these has been the achievement of the savings targets for The Way Forward. In addition, PWGSC took significant steps in the areas of Small and Medium Enterprises, as well as in greening government operations.

Small and Medium Enterprises

PWGSC supported the government’s economic agenda by launching the Office for Small and Medium Enterprises (OSME). OSME initiated consultations with SME suppliers on how to reduce the barriers they face in doing business with the government.

As well, the Translation Bureau undertook a number of initiatives to support the language industry in Canada, by awarding more large-value translation and interpretation contracts to foster the creation of bigger SMEs in the language industry.

The Translation Bureau also established internships for 100 students in the translation profession and participated in the creation of the Language Technologies Research Centre in Gatineau, Quebec.

Greening of Government Operations

In 2005, the Office of Greening Government Operations (OGGO) was established as a key element of The Way Forward to assist federal government departments and agencies to accelerate the greening of government operations. To advance this agenda, OGGO worked collaboratively with other federal bodies, particularly Treasury Board Secretariat and Environment Canada, as well as with six interdepartmental steering groups, representing key operational sectors.

D) Delivering Major Projects of National Importance

In 2005-2006, PWGSC led a number of major capital projects and horizontal initiatives.

Defence Procurement

PWGSC is working closely with the Department of National Defence (DND) to ensure that the Canadian Forces have the equipment needed to operate in today’s environment. DND is accountable for the definition of operational requirements and development of performance and technical specifications, while PWGSC is accountable for the contracting.

In 2005-2006, PWGSC continued to apply its procurement and major project expertise to respond to Canada’s requirement for effective management of complex and high-value defence procurement contracts. For example, PWGSC responded within two months to the Canadian Forces’ need for vehicles with improved protection and firepower by purchasing armoured patrol vehicles to support Canadian troops in Afghanistan.

The government is currently reviewing military procurement and working with DND and the military supplier community to reduce the time it takes to execute major military procurements and to better support Canada’s men and women in the armed forces.

Long-Term Vision and Plan (LTVP) for the Parliamentary Precinct

In the spring of 2006, substantial rehabilitation and reconstruction was completed on the Library of Parliament building. The rejuvenated Library re-opened its doors to Parliamentarians and visitors. The conservation, rehabilitation and upgrade of the Library of Parliament building was a major project undertaken by PWGSC to ensure this heritage building could support the activities of an efficient, modern parliamentary library.

In the spring of 2006, the renovated Library of Parliament opened. PWGSC set a new standard for sustainability by requiring that improvements would last for decades to minimize the need for maintenance while ensuring the Library will be beautiful and functional.

Remediation of Contaminated Sites

PWGSC continued to lead the federal government’s involvement in the remediation of certain contaminated sites, such as the Sydney Tar Ponds in Nova Scotia, Argentia in Newfoundland and Labrador, and the Giant Mine in the Northwest Territories.

Government of Canada Marketplace (GoCM)

The department developed and successfully tested a functioning prototype of the Government of Canada Marketplace (GoCM), a virtual shopping market that will streamline the procurement process for suppliers, including SMEs across Canada, and for the government. The prototype demonstrated to stakeholders the usefulness of the GoCM as a tool to manage commodities.

Procurement of Drugs and Vaccines

As part of nation-wide emergency preparedness efforts to preserve the health of Canadians, PWGSC facilitated the procurement of approximately $127 million of drugs and vaccines on behalf of the federal government, the provinces and the territories.

	PWGSC – Adding Value for Canadians
	Strengthening Management and Public Confidence
	Created the positions of Chief Financial Officer and Chief Risk Officer. Made significant contributions to the development of the Federal Accountability Act, particularly in the area of procurement reform. Implemented needed changes to advertising and public opinion research coordination in order to support federal accountability and transparency. Continued to support the RCMP and the Sûreté du Québec for their criminal investigations and the Attorney General for the recovery of funds. Continued to implement the Secure Channel providing Canadians with secure access to all of government’s on-line services. Continued to modernize the Public Accounts of Canada on behalf of 169 federal departments, agencies and Crown corporations.
	Increasing Savings and Productivity
	The Way Forward established a specific target of generating government-wide savings: $2.5 billion in the area of acquisitions by strategically managing and improving the way in which it procures goods and services, and $925 million in the area of real property by managing properties more effectively and improving the application of standards for office space. Achieved net savings of $160 million in Real Property Services and $69 million in Acquisitions Services. The Receiver General reduced the annual cost of payment operations by $39 million when the volume increased by 22 percent.
	Delivering Quality Services
	Accommodated 235,000 federal employees across Canada and managed over 6.8 million square metres of space in about 1,840 locations. Purchased over $10 billion worth of goods and services, managing about 60,000 transactions. Provided $150 million in telecommunications and informatics services. Handled $1.5 trillion in Receiver General cash flow, involving 240 million payments in 200 countries. Administered compensation for 300,000 government pay accounts and 328,000 pensioner accounts.
	Supporting the Government’s Strategic Agenda
	Supported the government’s economic agenda by launching the Office of Small and Medium Enterprises, which initiated a range of consultations with SME suppliers on how to reduce the barriers they face in doing business with the government. Led the government's sustainable development agenda, through the Office of Greening of Government Operations, by undertaking initiatives such as environmentally sound procurement and improving the energy efficiency of buildings. Supported the language industry in Canada: participated in the creation of the Language Technologies Research Centre, in Gatineau, Quebec, and by establishing 100 internship positions for translators. Achieved a major milestone in the fall of 2005 with the award of a contract to develop and implement business process transformation and to implement a Commercial-Off-The-Shelf (COTS) software solution for the Pension Modernization Project, thereby ensuring that the solution obtained for the Government of Canada was a readily available, proven solution that had already been used successfully for pension administration by other, similar organizations.
	Delivering Major Projects of National Importance
	Supported major military procurement. The department responded rapidly by awarding a contract within two months after the identification of an urgent need for armoured patrol vehicles to support Canadian troops in Kandahar. Contributed to the rehabilitation and preservation of heritage buildings (i.e., Vimy Ridge monument and Library of Parliament). Continued to lead the federal government’s involvement in the remediation of certain contaminated sites, such as the Sydney Tar Ponds in Nova Scotia, Argentia in Newfoundland and Labrador, and the Giant Mine in the Northwest Territories.