Thank you, Mr. Chair.
As you know, we are gathered on the traditional, unceded territory of the Algonquin Anishinaabe people.
As Minister of Public Services and Procurement Canada, or PSPC, and Shared Services Canada, or SSC, I thank everyone for giving me the opportunity to present our requests within the framework of the 2023‑2024 Supplementary Estimates (C).
To summarize, PSPC is asking for a net increase of $263 million for its expenditures budget, while SSC is asking for $53 million.
Allow me to position some of these requests within the context of our priorities.
First of all, modernizing procurement includes simplifying our processes and improving access to public contracts for SMEs and suppliers from historically under-represented groups, namely indigenous peoples.
A second priority is to invest in quality care for Canadians, resolve pay issues for public servants and move forward with the Next Generation Human Resources and Pay System.
A third priority involves supporting our government’s response to the housing crisis. To do so, we are accelerating the conversion of surplus federal properties into affordable and accessible housing. This year alone, through agreements with developers, the Canada Lands Company will enable the construction of more than 2,800 housing units. Furthermore, over the next five years, the Company plans to build over 26,000 new homes on its properties, at least 20% of which will be affordable housing units.
Of course, our fourth priority is to continue working in close collaboration with several key partners to implement the Canadian government’s new Canadian Dental Care Plan. To date, over 1.5 million seniors have become eligible for the plan, and oral health care providers have started signing up.
Allow me to briefly update you on the work done by PSPC officials to answer questions about the Canadian government’s procurement processes.
First, I want to say that we are very proud and grateful for all the work accomplished by public servants, who worked diligently to protect Canadians’ health during the pandemic. Whether it be by ensuring the supply of vaccines, rapid tests or personal protective equipment, the work of these public servants and all Canadians helped save thousands of lives and protect thousands of jobs.
I want to reassure the committee that the findings of improper behaviour, including fraud, are unacceptable.
In November 2023, PSPC suspended all delegated authorities for professional services-based task authorizations in order to implement additional controls to strengthen IT procurement and the management of contracts.
That same month, PSPC suspended all GC Strategies contracts with the Canada Border Services Agency. Since that time, I can confirm that every active contract with that company has been terminated across the government and that the company is ineligible for any new contracts.
Following further investigations, both PSPC and Shared Services Canada have also recently suspended Dalian and the Dalian-Coradix joint venture from current and future contracts.
We also have to have more tools that can protect our supply chains from bad actors and respond to evolving threats. That is why, earlier today, I announced the establishment of the office of supplier integrity and compliance. That new office will enable PSPC to better respond to misconduct and wrongdoing and further safeguard the integrity of federal procurement.
I also provided an update on investigations by PSPC that uncovered several fraudulent schemes undertaken by subcontractors working on federal professional services contracts between 2018 and 2022. The department has revoked or suspended the security statuses of these subcontractors and is taking steps to recover illegitimate amounts billed to the government. These cases have also been referred to the RCMP.
In closing, Mr. Chair, all of this work is part of the reinforced efforts of PSPC and all other departments to keep strengthening federal procurement and hold bad actors accountable for wrongdoing.
I would be pleased to answer any questions the committee may have.