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Hon. Filomena Tassi (Minister of Public Services and Procurement, Lib.)

May/19/22 6:48:58 p.m.
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Madam Chair, we always provide the estimates, and we do our best to maintain procurement that matches up with those estimates.

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Mr. Pierre Paul-Hus

May/19/22 6:51:00 p.m.
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Madam Chair, I have another point that was raised by officials from Public Services and Procurement Canada. On April 7, these bureaucrats told the committee that we can expect further cost overruns and delays regarding the delivery of new ships for the navy and the Coast Guard, and that the multi-billion dollar shipbuilding program faces significant challenges. Will the minister admit that billions of dollars in cost overruns are already expected?

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Mr. Pierre Paul-Hus

May/19/22 6:52:57 p.m.
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Madam Chair, Troy Crosby, the person responsible for National Defence procurement, told the committee that the ships are not being built fast enough and that they are costing more. I want to know if the minister has sent the shipyards an official letter, directive or document of some sort expressing the Government of Canada's concerns about the delays and cost overruns. If so, when did she send it? If not, why not?

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Mr. Pierre Paul-Hus

May/19/22 7:02:19 p.m.
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Madam Chair, at present, we see that defence procurement for major projects is rather complex and we understand this complexity. That is why, in his 2019 mandate letters for the then Minister of Public Services and Procurement and Minister of Defence, the Prime Minister included the creation of an organization whose sole focus would be defence procurement. This was missing in the 2021 mandate letters. I would like to know whether it is still being contemplated, and, if not, why it was overlooked.

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Hon. Filomena Tassi (Minister of Public Services and Procurement, Lib.)

May/19/22 7:03:48 p.m.
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Madam Chair, I am thankful for being invited to rise in the committee of the whole to speak to the main estimates for Public Services and Procurement. As a direct service provider, my department works to serve Canadians in support of the government's missions. My department is the government's central purchasing agent. It manages real property, acts as a treasurer and accountant, is responsible for pay and pension administration, advises on matters of integrity, and acts as the linguistic authority. It has a wide-ranging mandate that touches so many aspects of daily and long-term government operations. To deliver on this mandate, we have requested more than $4.6 billion in the 2022-23 main estimates for PSPC. As the central purchasing agent for our government, one of the department's most critical roles of late has been to support Canada's response to the ongoing pandemic, and we intend to keep that support going. I can tell members that our aggressive procurement approach over more than two years has ensured that Canada has a secure supply of vaccines and personal protective equipment. In fact, Canada is a world leader on this front. We have contracts in place with several vaccine suppliers and we have access to supplies of future formulations that will protect us against variants. I can also say that thanks to our long-term contracts with Medicom and 3M, tens of millions of N95 respirators are being produced right here at home every single month. It is because of the ground work that we laid at the beginning of the pandemic that Canada is in good standing to see it through to the end. As Canadians are keenly aware, the pandemic is not over yet and there is still more to do. For example, we are working to ensure that we have enough supply of rapid tests and therapeutics, as they remain in high demand across the globe. So far, Canada has produced more than 600 million rapid tests, and we have contracts in place for nine different therapeutic treatments, giving us access to 1.7 million treatment courses. I can assure the House that the department will continue to deliver for Canadians as we work to finish the fight against COVID. As members well know, the pandemic is not the only crisis we are dealing with. Every day, we learn more about the horrors unfolding in Ukraine following Russia's unprovoked and unjustifiable attack. We know that it is essential for all democratic nations to stand united in our support of the Ukrainian people and Ukrainian sovereignty. That is precisely what our government is doing. PSPC continues to provide logistical and other support to ensure that Canada's support and assistance are received by those who need them. On the domestic front, defence procurement and defence contract management are important parts of my mandate, and I am honoured to be leading on this front during this crucial time as Canada's defence policy evolves in a rapidly changing world. We continue to make progress on our defence procurements. That includes our government's work to procure 88 advanced fighter jets to replace our aging fleet of fighters. The purchase of new jets represents the most significant investment in the Royal Canadian Air Force in more than 30 years. Since day one, our government has been focused on steering a process that is truly competitive. That is what we have done because we know that it is the right way to get the best value for Canadians and to make sure our defence needs are properly met. Following a rigorous evaluation of the proposals, the government has entered into the finalization phase of the process with the United States government and Lockheed Martin. This is an important milestone in the procurement process, and I can report that we are on track to reaching an agreement later this year, with the delivery of aircraft potentially as early as 2025. We also continue to work with our partners to renew the fleets of the Canadian Coast Guard and the Royal Canadian Navy. Despite the immense pressures on global supply chains, we are making progress on shipbuilding and revitalizing the industry in Canada. There is no doubt that the government's purchasing power is an important lever and we are using it to drive economic prosperity, but we must make sure that prosperity is inclusive for all Canadians. That is why we have recently launched a supplier diversity action plan, which includes pilot projects to increase the participation of under-represented groups in federal procurement. An example of this is our Black business procurement pilot project, which has led our government to awarding a series of contracts. We received important feedback from the community about the process so we can improve it going forward. Our goal here is to help remove barriers to full participation in procurement for all suppliers. We also continue to walk the path of reconciliation by leading in the implementation of a requirement to ensure that a minimum of 5% of the value of federal contracts is held by businesses that are led by and employ first nations, Inuit and Métis people. With our purchasing power comes other responsibilities, such as doing our part to tackle forced labour around the world. I know that all members would agree that we must do everything we can to eradicate this abhorrent practice. That is why our government has updated the federal code of conduct for procurement to clearly outline Canada's expectations for suppliers when it comes to human and labour rights. As of November 2021, all of our goods-related contracts now contain anti-forced labour clauses. That means the government can terminate contracts when there is credible information that goods have been produced in whole or in part by forced labour or human trafficking. The department has done other important work, including major projects in the national capital region. That includes replacing the Alexandra Bridge and implementing a long-term, integrated, interprovincial crossing plan. It is an endeavour led by the National Capital Commission, which is part of my portfolio. Of course, we are also working on the renovation and rehabilitation of the Parliamentary Precinct. Just outside of these doors, we are working to modernize and preserve the heart of Canada's democracy and to keep it a place that can be enjoyed by all Canadians. Our work in this area expands beyond Parliament Hill and its historic buildings. On Monday, I had the pleasure of announcing the winner of the design competition for the city block that faces Parliament on Confederation Boulevard known as “Block Two”. Renewing the Parliamentary Precinct is an enormous undertaking that will result in an integrated parliamentary campus while moving us toward carbon neutrality and climate resiliency. Of course, greening all of our operations across government will support Canada's commitments to fighting climate change. Our energy services acquisition program is an excellent example of progress my department has made when it comes to greening government. Under the program, we are modernizing the district energy systems that heat and cool 80 buildings in the national capital region. I am happy to report that we have already cut greenhouse gas emissions by 57% from the baseline year of 2005, and we are on track to meet our goal of net zero emissions by 2030. These many initiatives are made possible by Canada's hard-working public servants here in the national capital region and across the country. They deserve to be paid accurately and on time. I also want this committee to know that we continue our efforts to resolve the backlog of pay transactions and stabilize pay operations. At the same time, Shared Services Canada is advancing work on the next generation of human resources and pay solutions: one that is flexible, modern and integrated. Shared Services Canada is also working to provide public servants with modern tools and deliver digital services to Canadians that are secure, reliable and easy to use anywhere. While not covered in the main estimates, Shared Services Canada is an important part of my portfolio, and like PSPC, it plays a vital role in supporting government operations. Also in my portfolio is Canada Post Corporation, and I want to note for the committee and all Canadians my appreciation of postal workers. Despite hardships brought on by the pandemic over the past two years, our dedicated postal workers have continued to provide high-quality service across the country. Indeed, all public servants have stepped up since COVID-19 hit our shores to get through to the other side of the pandemic and to keep the Government of Canada running. I am so honoured and humbled to lead such a talented team, and I know that we will be able to build on our accomplishments and achieve great things for Canadians. I have touched on only a fraction of the important work happening under my portfolio of Public Services and Procurement Canada. I am happy to take the committee's questions regarding the main estimates for my department.

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Mr. Anthony Housefather (Parliamentary Secretary to the Minister of Public Services and Procurement, Lib.)

May/19/22 7:13:18 p.m.
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Madam Chair, our government has been working to address inequities by modernizing its procurement practices and encouraging suppliers from diverse backgrounds to be part of the federal supply chain. Budget 2021 proposed $87.4 million over five years, and $18.6 million ongoing, to modernize federal procurement and to create opportunities for specific communities such as indigenous people, women, LGBTQ2+ Canadians, Black and other racialized Canadians. This included a two-year study from 2018 to 2020 that aimed to leverage the government's significant purchasing power to pursue socio-economic outcomes through procurement. As the minister mentioned, our government also undertook a Black business procurement pilot in 2021 to expand procurement opportunities for Black entrepreneurs. We also recently released two requests for information to better understand the procurement experience of businesses owned or led by persons with disabilities and the LGBTQ2+ community. As part of its efforts to diversify the federal supply chain, we have issued requests for information to gather input from Canadian Black businesses and businesses owned or operated by persons with disabilities, as well as businesses owned or led by members of the LGBTQ2+ community. The feedback gathered through the RFIs will be used to expand the use of targeted approaches to increase diversity in federal procurements. PSPC's Policy on Social Procurement came into effect in May 2021. It allows the department to create targeted approaches to increase diversity and inclusion in PSPC procurement and leverage trade agreements that permit socio-economic procurement. I know that the minister has been holding a number of round tables. Could the minister tell the House what she has been hearing first-hand from business leaders?

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May/19/22 7:15:15 p.m.
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Madam Chair, this is a very important part of the portfolio for me, to ensure that we level the playing field and give all business leaders an opportunity to enter into procurement with the federal government. I think it is really important that we listen. This is why I have had the opportunity to set up round tables and hear directly from business leaders and from those who have established a desire to work with the government, but have felt that they have faced some obstacles. These discussions have been very helpful, in terms of providing us with feedback on what things have been working, and how we need to move forward. I have met with diverse groups and really appreciate the feedback. One of the areas was the coaching pilot. We held a coaching pilot that talked to business leaders about how to be successful in their procurement bids, and offered training and assistance. Afterward, I had an opportunity to speak with those business leaders who experienced the coaching pilot. I can tell members that they were all grateful. They said it was helpful in terms of better understanding, recognizing and feeling supported and that they would like to see projects like that continue. These pilots, round tables and discussions have been very helpful. We are going to continue to work toward levelling the playing field because, at the end of the day, we know that when we allow all businesses an opportunity to enter into procurement, we all benefit. It is not just the moral and right thing to do; it is also the economically smart thing to do.

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Mr. Anthony Housefather

May/19/22 7:17:16 p.m.
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Madam Chair, our government is committed to renewing and strengthening its economic relationship with indigenous entrepreneurs and communities by providing increased economic opportunities to first nations, Inuit and Métis businesses through the federal procurement process. Our government announced the implementation of a mandatory requirement for federal departments and agencies to ensure that a minimum of 5% of the total value of contracts is held by indigenous businesses. This requirement includes public reporting and will be phased in over three years, beginning this year, with a number of federal departments that are ready to immediately begin this work, with full implementation expected by 2024. From March 2020 to March 2022, Public Services and Procurement Canada, as a common service provider, has awarded $1.3 billion through 1,744 contracts to indigenous suppliers. Can the minister tell the House more about the efforts to achieve this mandatory target, and what she is hearing from indigenous business leaders and partners?

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Mrs. Julie Vignola (Beauport—Limoilou, BQ)

May/19/22 7:18:59 p.m.
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Madam Chair, I thank the Minister of Public Services and Procurement for being here this evening. We are happy to have her. Madam Chair, how many full-time public servants work at Public Services and Procurement Canada?

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May/19/22 7:19:23 p.m.
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Madam Chair, how many of those public servants work specifically on procurement?

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May/19/22 7:19:29 p.m.
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Madam Chair, the procurement service workers are doing an absolutely fantastic job. I want to thank them. The full-time equivalent of procurement service workers is 2,193.

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May/19/22 7:19:50 p.m.
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Madam Chair, how does the minister explain the challenges in tracking expenditures in areas such as air defence and the national shipbuilding strategy if there are so many procurement specialists? We often hear that it is difficult to do the tracking and that expenses are on the rise.

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May/19/22 7:20:13 p.m.
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Madam Chair, I am proud of the work that our procurement specialists are doing. We have now navigated over two years through a pandemic that has descended upon this country and the world, but I am speaking about Canada because that is where I am the procurement minister. The work that procurement has done has been second to none. I think we need to take time to give them thanks and credit and all those procurement officials—

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The Assistant Deputy Chair

May/19/22 7:21:17 p.m.
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Before giving the floor to the minister, I would remind the hon. member to ask her questions through the Chair. The hon. Minister of Public Services and Procurement.

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May/19/22 7:22:40 p.m.
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Madam Chair, just about every witness we heard from in committee has told us the same thing: The military procurement process is slow, inefficient and rife with political interference. Does the minister have a plan to fix this fiasco? Some witnesses think that a second department focused solely on military procurement may be needed. Does the minister believe that this would be useful and effective?

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May/19/22 7:23:13 p.m.
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Madam Chair, I would repeat what I said earlier, which is that I believe that we are strong in defence procurement. In fact, members can look at what we are involved in right now: The most significant investment in the air force in 30 years is the purchase of 88 fighter jets. The first five ships have been delivered under the national shipbuilding strategy. Two-thirds of the projects under Strong, Secure and Engaged have been either implemented, completed or are near completion. That is a pretty strong record. In terms of defence procurement, I think we have a strong record.

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May/19/22 7:24:47 p.m.
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Madam Chair, we have talked about Cisco and sole-source procurement several times at the Standing Committee on Government Operations and Estimates, and I have asked the minister about it. What concrete action have the department and the minister taken to ensure that the government receives the best available prices for computer equipment?

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May/19/22 7:25:11 p.m.
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Madam Chair, I wish to begin by assuring the member that whenever we are procuring, we always want to ensure that we are getting the best product for the best price. We have rigorous procurement measures that take place, and we are going to continue with that. We recognize that these are taxpayers' dollars. In every procurement project, it is important that we are getting value, and that is the process that we will continue to undertake for every procurement.

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