Reports on Plans and Priorities

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2005-2006 Estimates
Report on Plans and Priorities

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Section III - Supplementary Information

Status Report on Major Crown Projects

C. Pension Modernization Project (PMP)

Project Name: Pension Modernization Project

Project Phase: Project Definition

1. Overview

The Government of Canada Pension Modernization Project (GoCPMP) is the renewal of PWGSC's pension administration systems and processes, and business processes to enable PWGSC to replace thirty-year-old technology and to use industry best practices to deliver pension administration services to public service employees, employers and pensioners. It is expected that the GoCPMP will be able to procure a system solution that has the flexibility and functionality to simultaneously meet the unique requirements of administering the Public Service Superannuation Act as well as providing the capability of administering multiple other pension plans. It will also provide information management and access tools that allow expert pension advisors to administer pensions effectively and provide timely, accurate and consistent responses to plan members, employers and administrators. The solution will also provide sustainable systems capable of efficient adoption of future technologies and best pension practices. The current cost estimate is $115.5 million ($19.5 million for the Definition Phase) and the planned contract award is September 2005 .

2. Lead and Participating Departments

• Sponsoring Department: Public Works and Government Services Canada
• Contracting Authority: Public Works and Government Services Canada
• Stakeholder Departments: Treasury Board Secretariat, Department of National Defence

3. Prime Contractor and Major Sub-Contractors

No prime contractor or major sub-contractors under contract at this time.

4. Major Milestones

The Request for Proposal was released on MERX in October 2004. The closing date is in January 2005.

Bid Evaluation/Vendor selection/Contract award – September 2005

Effective Project Approval from Treasury Board – November 2006

Core Pension functionality (Contributor administration) implemented – January 2009

Final implementation date (Annuitant administration) – August 2011

Final maintenance transition – January 2012

5. Progress Report and Explanation of Variances

The initiation and preliminary planning phases were conducted from September 2000 to January 2004, leading up to the finalization and presentation of the Treasury Board (TB) submission in April 2004. Approval in principle was received from the Treasury Board in March 2004. Preliminary Project Approval (PPA) was received in May 2004 and the project is now proceeding with the Project Definition Phase.

The establishment of the project governance mechanisms has been completed, including the initiation of the interdepartmental Senior Project Advisory Committee (SPAC), chaired by the Project Leader, the Stakeholder Steering Committee (SSC), chaired by the Deputy Project Leader, and the Pension Modernization Working Group, chaired by the Director, GoCPMP. The Internal Audit and Evaluation process has been initiated and a preliminary report of the audit findings will be completed in March 2005.

To date, the project team has completed t he d evelopment of requirements specification sufficient for the procurement of a Commercial-Off-the-Shelf (COTS) based solution and the development and implementation of a procurement strategy for acquiring a
COTS-based solution. Next steps include: a Requirements Mapping and Gap Analysis between the Pension Modernization requirements specification and the selected
COTS-based solution; and the development of detailed implementation plans to support the preparation of substantive estimates for all work to complete the Pension Modernization Project delivery for approval by Treasury Board of the Effective Project Approval Phase.

6. Risk Analysis

The key risks associated with this project at this time are:

1. Business Transformation / Staff Resistance to Change: There is a risk that staff will be apprehensive about changes, and will be reluctant to embark on business
   re-engineering activities and multiple initiatives.
   
   Mitigation: a control strategy has been adopted for this risk whereby the staff receive consistent and appropriate communication on the project and are involved in key planning and implementation activities throughout the project (e.g.: bid evaluation, Fit/Gap analysis, business transformation).
   
   
2. Size and Complexity of Project: There is a risk that the project's inherent size combined with the level of complexity of both the technological changes and business transformation involved will result in schedule delays and cost overruns.
   
   Mitigation: an assume strategy has been adopted for this risk. The Project Management Framework for the project includes mechanisms to ensure that project monitoring and control structures are appropriate for the size and nature of the project. A multi-level governance structure, including senior management and stakeholders, has been established. As well, lessons learned from similar projects have been integrated into the project's methodologies and plans.
   
   
3. Human Resource Capacity and Continuity: There is a risk that PWGSC will be unable to meet the project's ongoing Human Resources requirements (related to both staffing levels and continuity/subject matter expertise of resources).
   
   Mitigation: an avoidance strategy, based on four main points, was adopted for this risk:
   
   
   • An HR strategy to address staffing, training, etc., has been developed. It is kept current and reflect changes in the project environment;
   • A retention program has been developed for the Compensation Sector;
   • The Project Management Office has developed plans and procedures to manage project information assets to minimize impact of knowledge loss when key individuals depart;
   • Coordination of assignments of key business resources between projects (Pension Modernization, Pay Modernization, and Pension Services Delivery projects).

7. Environmental Assessment

There is no impact on the environment due to this project.

8. Industrial Benefits

A multi-million dollar contract will be awarded for a COTS product, implementation, support services and on-going maintenance The number of available jobs will be determined after the award of the contract.

9. Summary of Non-recurring Expenditures