44th Parl. 1st Sess.
May 19, 2022 10:00AM
- 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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- May/19/22 7:37:29 p.m.
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Madam Chair, again, we respond to provinces and territories. We have been working very closely with the provinces and territories. Provinces and territories have asked us for supplies. They have asked us for over 100 million vaccines; we have provided over 100 million vaccines. They have asked us for rapid tests; we have supplied over 600 million rapid tests. They have asked us for therapeutics; we have procured 1.7 million therapeutics. We have distributed these products to the provinces and territories because they have asked for them, and I want to thank all those who have worked so hard to make that possible.
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- May/19/22 8:00:43 p.m.
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Madam Chair, I agree with the many things my hon. colleague said, specifically about the procurement success that we have had. I want to thank all the procurement specialists that have worked so very hard. Let us go back to March 2020, when COVID had descended upon us. Since that time we have procured over 100 million vaccines. We have enough vaccines in this country for every Canadian to get their full complement, those that are eligible, together with the booster.
We have procured over 600 million rapid tests. Provinces and territories were in great need of those. We have procured them. We have delivered them. It is a fantastic tool.
We have procured over two billion pieces of personal protective equipment to keep Canadians safe. We have now 1.7 million treatments of therapeutics.
I look at what has been achieved by the team, and it is an army. Some of them are watching tonight. Some are before me here. Some are in the lobby. Some are working at home, and some are in their offices. I want to thank that army, that team that worked day and night in order to ensure that we had the supplies to keep Canadians safe. That has always been our goal, to look ahead, to plan ahead and to put in place whatever was needed so that we could deliver for Canadians. We did not want to let them down, and we wanted to be smart and prudent and forward thinking and that is exactly what we have done.
How we were able to do that was by the sweat and the dedication and the commitment of so many Canadians who were working. I want to thank them together with all Canadians across this country that helped keep safe, whether that was in health care or in grocery stores making sure we had the food, but it was a fantastic effort. I am very proud of the Canadians in this country who worked so hard to get us to the place that we are in today.
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- May/19/22 8:20:22 p.m.
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Madam Chair, I am pleased to have the opportunity to address this committee to discuss the procurement activities of the Government of Canada and how these are being leveraged to meet our goals for equity.
I believe every member of the House would agree that the government wields considerable buying power as one of the largest public buyers of goods and services in this country. Every year, Public Services and Procurement Canada manages or facilitates approximately 23 billion dollars' worth of contracts for goods and services.
Our procurement activities keep the government functioning so it can serve and protect all Canadians. These procurements generate economic activity and bring money into the hands of Canadian companies, sustaining many thousands of jobs in cities and towns all across this country and contributing to our prosperity as a nation.
Government procurement has always been an important catalyst for change, and the opportunities it provides have never been more evident than they are today. It is our focus as a government to bring our purchasing power to bear as we work to improve the way the government buys goods and services to support Canadians.
While our economy is making a strong recovery, we know the pandemic has affected the lives and livelihoods of so many across our country and around the world. Most recently, our bulk procurements of rapid tests, vaccines and therapeutics have helped Canada respond to the COVID-19 pandemic, a top priority for our government.
We have also seen how these economic hardships have affected some communities more than others. For members of under-represented groups in this country, the pandemic is just the latest in a long history of tragic events that have led us further and further from the image of equality that we want to see for Canada. There is still so much work to be done if Canada is to become a country with equal opportunities for everyone.
As this government finishes the fight against COVID-19, we are committed to creating an environment where all Canadians can benefit from a robust economic recovery. That means ensuring that those who are facing systemic barriers to success are able to successfully participate in federal procurement and benefit from our considerable buying power. That is exactly what we have been doing in recent years.
We have been consulting businesses led by indigenous people, Black Canadians, other racialized Canadians, women, LGBTQ2+ Canadians and Canadians with disabilities. These discussions have informed us, and we have developed concrete plans to increase their representation in federal procurement to better reflect our country and society.
I would like to now take a few minutes to explain in detail our actions to attract a wider diversity in suppliers to government.
This government remains committed to building progress to address the inequalities that exist between indigenous and non-indigenous people. As we continue to walk the path of reconciliation, we are working to help indigenous communities seize economic opportunities and promote self-determination.
This past August, we announced that our government is implementing a mandatory requirement for federal departments and agencies to ensure that a minimum of 5% of the value of their contracts is held by businesses managed and led by first nations, Inuit and Métis people. The new requirement will be phased in, and we expect it to be fully implemented by 2024. It will be mandatory to report publicly on our progress against this target.
I would like to make it clear that when it comes to ensuring that indigenous-owned and indigenous-led businesses are full partners in government contracting, the 5% requirement is the floor, not the ceiling. We will continue to work actively with indigenous groups to increase their participation in federal procurement more broadly.
I would like to remind members of the House that even as this government worked tirelessly to acquire supplies and equipment to support Canada's frontline health care workers and all Canadians during the pandemic, we were also creating opportunities for businesses led and managed by indigenous people. To date, 41 self-identified indigenous businesses have contributed to the government's pandemic response through contracts awarded by Public Services and Procurement Canada for goods and services collectively worth about $197 million.
These contracts represent vital services that include logistics, air charter services, accommodation, cleaning services and IT professional services. They also represent much-needed goods, such as medical and laboratory supplies, masks, hand sanitizers and thermometers, contributing to more than 2.7 billion pieces of personal protective equipment acquired by the government since the beginning of the pandemic. By increasing contracting opportunities, we are able to generate economic prosperity in communities that have not traditionally shared in this country's economic wealth. As we have said many times, this government is committed to reconciliation. That includes increasing the participation of indigenous-led businesses in the federal procurement process, and helping them to succeed and grow.
Our plan is also to continue addressing barriers faced by other groups that are under-represented in Canada's business community: Black and racialized Canadians, women, persons with disabilities and LGBTQ2+ Canadians. In January, Public Services and Procurement Canada launched the supplier diversity action plan, which includes concrete steps to increase the participation of businesses from under-represented groups in federal procurement. The foundation for this plan was the result of a number of pilot projects. One of these projects involved opening select bidding opportunities in several regions for various goods and services to Black-owned and operated businesses. The department then invited a number of these businesses to answer an online questionnaire about their experiences with federal procurement. This information has been helping PSPC improve efforts to attract more Black-owned and operated businesses to offer their goods and services to government.
A cornerstone of the supplier diversity action plan is the policy on social procurement. This policy demonstrates our government's commitment to using procurement toward greater economic and social opportunities for under-represented groups. The policy empowers procurement specialists to pursue this objective in their day-to-day work. By enacting this policy, our government is making it clear that including more under-represented groups among our suppliers is now a core objective of our procurement function.
I would like to highlight some of the ways in which our government is working to increase the participation of women-owned and led businesses in federal procurement. Encouraging women-owned and led businesses to do business with government will help ensure that our economic recovery after the pandemic will be strong and inclusive.
To help increase diversity and social procurement, Public Services and Procurement Canada is providing education and assistance on federal procurements to under-represented groups across Canada through the Procurement Assistance Canada service, formerly known as the Office of Small and Medium Enterprises. Small and medium-sized businesses can take advantage of webinars, seminars and events organized by regional offices across the country to learn more about how to do business with government. In addition, as part of the supplier diversity action plan that I mentioned earlier, these offices now offer personalized coaching to give targeted advice to enterprises that have previously bid on government contracts but have not been as successful as they could have been. The coaches provide information and tools that help guide companies through their bidding process.
When this government took office in 2015, one of the principles it wanted to reinforce was that Canadians should see themselves reflected in their government. Diversity and inclusion are crucial so that all Canadians feel they are participating in society. Can the minister elaborate on what actions her department has taken to help diversify the Canadian government's procurement process and to have the vendors and suppliers the government buys from better reflect the Canadian people it is serving, while advancing reconciliation?
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- May/19/22 10:47:05 p.m.
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Mr. Chair, the government keeps touting a safer supply as how it is going to respond to this crisis. Has the government looked into whether bulk buying harm reduction supplies or a safer supply could help reduce costs for supervised consumption sites, which often face funding challenges?
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