Thank you, Mr. Chairman, and good afternoon, everyone.
First I would like to thank committee members for this opportunity to share with you information about PWGSC's procurement activities.
George Butts will provide an overview of procurement activities, the constraints involved, and the impact of trade agreements.
Marshall Moffat will describe his group's role in reaching out to the 99.9% of Canadian companies that are not large corporations, the group's successes to date, and its prospects for the future.
I'd like to add that in the audience there are also some members of the acquisition team who can, upon request, answer your questions.
First I'll give you an overview of our activities.
As the federal government's central purchasing agent, PWGSC is Canada's largest buyer of goods and services. It alone represents 85% of government procurement by value. We manage more than 60,000 transactions a year totalling some $12 billion.
Our goal in procurement is simple: it is to fulfil government's operational requirements - everything from uniforms and equipment for the Canadian Forces to office supplies.
We work, however, in a complex environment, influenced by trade agreements, Treasury Board policy, various statutes, and oversight bodies such as the Canadian International Trade Tribunal, as well as the Auditor General.
In addition, under the Federal Accountability Act, PWGSC is putting in place a code of conduct for procurement. The FAA also creates the position of procurement ombudsman. Under Government of Canada contracting policy, we must ensure an open, fair, and transparent procurement process while working to remove barriers to competition.
Implicit in all of our activities is a commitment to obtaining the best value possible for Canadian taxpayers. It comes as no surprise that this has a significant impact on the economy, and you will be hearing more about this later in our presentation.
While we occasionally find ourselves in the spotlight, it must be said that the vast majority of our contracts are trouble-free.
Fewer than 1% of contracts are challenged through the Canadian International Trade Tribunal, and only one in five of those challenges are validated.
That said, Mr. Chairman, we are always striving to improve.
As the committee knows, we are in the midst of a transformation effort. Ours is focused on changing our procurement role from one based on transactions to one based on the provision of strategic management of supply, and the creation of a whole-of-government approach to procurement.
Our approach to procurement is collaborative, and we are working hard to build partnerships with Canadian businesses. Over the past several months, we have set up consultation committees with key industries to allow us to hear first-hand their challenges and concerns prior to finalizing our procurement strategies. The committee on temporary help, for example, has met 16 times since last November. These meetings are instructive both to us and to suppliers, and they underscore our commitment to fairness and transparency, as well as good value for taxpayers.
ln addition, we set up the Office of Small and Medium Enterprises to break down barriers to doing business with the Government of Canada in all regions of the country. You will be hearing about this from Mr. Moffat, but first I would like to turn the floor over to George Butts.