Government Operations Committee on Nov. 24th, 2022

[The Chair, Conservative, Kelly McCauley]

Good afternoon, everyone. We have quorum, so we will get going.

This is meeting number 41 of the House of Commons Standing Committee on Government Operations and Estimates, a.k.a. the mighty OGGO.

Today, from 3:30 to 5:30, we will be studying the supplementary estimates (B). We'll start off with a five-minute opening statement from the minister.

Welcome to your first OGGO appearance, Minister. I'll give you five minutes. Please go ahead.

[Helena Jaczek, Liberal, Minister of Public Services and Procurement]

Thank you so much, Mr. Chair.

Good afternoon, committee members. Let me begin by acknowledging that we're gathered on the unceded territory of the Algonquin Anishinabe peoples.

With me today from Public Services and Procurement Canada we have Paul Thompson, deputy minister, and Wojo Zielonka, assistant deputy minister and chief financial officer. From Shared Services Canada we have Sony Perron, president; and Scott Davis, chief financial officer.

I am pleased to be here for the first time as Minister of Public Services and Procurement to discuss the funding requested by both Public Services and Procurement Canada and Shared Services Canada through supplementary estimates (B).

Let me also say that I am honoured to continue the work of my predecessor on the mandates of both departments.

To support our activities, we're requesting access to additional funding of $192.2 million for Public Services and Procurement Canada and $8.5 million for Shared Services Canada through supplementary estimates (B).

Specifically, Public Services and Procurement Canada is seeking access to $135.9 million to support Canada's ongoing response to COVID-19. The department has aggressively secured services, supplies and vaccines to keep Canadians safe through this time of crisis. We will continue that vital work as we strive to emerge from the pandemic.

The department is also seeking access to $20.5 million to help continue to stabilize the government's pay system and resolve the backlog of pay transactions. In addition, the department is seeking access to $17.4 million to continue supporting our e-procurement solution, which will bring more of our procurement processes online, making them easier and more accessible to suppliers.

This is an important part of our plan to modernize government procurement.

As part of those efforts, the department has also launched a supplier diversity action plan, with an aim to increase the participation of under-represented groups in federal procurement.

I'll note that we continue to walk the path of reconciliation by requiring that a minimum of 5% of the total value of federal contracts be held by businesses led by first nations, Inuit and Métis peoples.

Through supplementary estimates (B), PSPC is also seeking access to $10.1 million to support the planning and implementation for critical infrastructure projects. These projects include the rehabilitation of the Supreme Court of Canada building, replacing the Alexandra Bridge and implementing a long-term interprovincial crossings plan, an endeavour led by the National Capital Commission.

In addition to the initiatives for which Public Services and Procurement Canada is seeking access to funding through supplementary estimates (B), the department has other important work under way.

We're making progress on the procurement of 88 advanced fighter jets for the Royal Canadian Air Force. The government continues to work on the finalization phase of this complex procurement, and we're on track to award a contract very soon.

At the same time we are working with our partners to continue progress on Canada's national shipbuilding strategy. Due to the pandemic and other global events, the shipbuilding industry, like so many others, is facing significant challenges, such as rising costs of materials, supply chain disruptions and labour shortages. Nonetheless we are delivering on the strategy, and we remain committed to supporting a revitalized domestic shipbuilding industry that meets the needs of the Canadian Coast Guard and the Royal Canadian Navy.

As you know, we're also working to rehabilitate the parliamentary precinct, and the department continues to modernize our real property portfolio to lower operating costs and reduce greenhouse gas emissions, while providing public servants with workspaces that meet their modern needs.

Like Public Services and Procurement Canada, Shared Services Canada plays a vital role in supporting the government's operations, providing public servants with modern tools, and Canadians with secure and reliable digital services.

Shared Services Canada's request is for a net increase of $8.5 million for core IT services. This is made up of $18.2 million in new funding, but with transfers to other government departments, resulting in a decrease of $9.7 million, and—

[The Chair, Conservative, Kelly McCauley]

Minister, we're at five minutes. Would you wrap up quickly?

[Helena Jaczek, Liberal, Markham—Stouffville, ON]

Yes, I will.

The net increase required is the $8.5 million.

The new funding will support the costs of providing core information technology services to Government of Canada employees.

I'm very pleased to be here to answer your questions and to work with this committee.

Thank you so much.

[The Chair, Conservative, Kelly McCauley]

Thank you, Minister.

Mr. Barrett, you have six minutes, please.

[Michael Barrett, Conservative, Leeds—Grenville—Thousand Islands and Rideau Lakes, ON]

Thanks, Mr. Chair.

Thanks to the minister and officials for appearing today.

Minister, does your department waive security clearance requirements on contracts dealing with the private information of Canadians?

[Helena Jaczek, Liberal, Markham—Stouffville, ON]

Mr. Barrett, that is of such a technical nature that I think I'm going to refer to my officials for that.

Deputy.

[Paul Thompson, Deputy Minister, Department of Public Works and Government Services]

The question is whether we waive protections under.... Could you repeat the question?

[Michael Barrett, Conservative, Leeds—Grenville—Thousand Islands and Rideau Lakes, ON]

The question is this: Does PSPC waive security clearance requirements for any contractors dealing with the private information of Canadians?

[Paul Thompson]

I might have to take that under advisement. Could you elaborate on the question and maybe give a scenario that you have in mind?

[Michael Barrett, Conservative, Leeds—Grenville—Thousand Islands and Rideau Lakes, ON]

Certainly.

On contracts that this committee has viewed and with respect to ArriveCAN, we've seen in responses to vendors that security clearance requirements would be waived, so where a vendor or a contractor would be required to have top secret clearance, having filed the paperwork to apply for top secret clearance would have sufficed.

Is that something that PSPC does?

[Paul Thompson]

One of the things we've done is change our security methods so that we do the security clearances on award of a contract, rather than as part of the eligibility of bidders. We've streamlined our security clearances in that fashion.

I'm not sure if that's what you're getting at, but we don't waive, to my knowledge, the requirements in the case of.... When there are information requirements that are built into the job, we honour those and require the security provisions.

[Michael Barrett, Conservative, Leeds—Grenville—Thousand Islands and Rideau Lakes, ON]

Okay.

Then you can confidently say that nobody works...that no contractors for PSPC or contracted by PSPC are authorized to do work unless they have been cleared with the requisite security clearance.

To be perfectly clear—

[Paul Thompson]

Yes.

[Michael Barrett, Conservative, Leeds—Grenville—Thousand Islands and Rideau Lakes, ON]

—I mean not that they have an application in process, but that they have the clearance.

[Paul Thompson]

There may be situations where the work package is altered so that the contractor in question doesn't have access to the data. Those kinds of adjustments could be made during the course of a project to make sure that the work aligns with the security clearances of the individual in question.

[Michael Barrett, Conservative, Leeds—Grenville—Thousand Islands and Rideau Lakes, ON]

That's a “no”. The department does not allow or—

[Paul Thompson]

We wouldn't allow access to secret information or classified information if the contractor didn't have the required authorizations.

[Michael Barrett, Conservative, Leeds—Grenville—Thousand Islands and Rideau Lakes, ON]

Thank you.

Are you able, Minister, to tell us how many sole-source contracts were awarded for the ArriveCAN application?

[Helena Jaczek, Liberal, Markham—Stouffville, ON]

I will be consulting tab 19 in this giant book.

[Michael Barrett, Conservative, Leeds—Grenville—Thousand Islands and Rideau Lakes, ON]

Thank you.

That's the “we've been expecting you” tab.

[Voices]

Oh, oh!

[Helena Jaczek, Liberal, Markham—Stouffville, ON]

Okay. Our information comes from the CBSA. I have just actually been handed....

Thirteen out of 21 awarded were competitive, and presumably that means the remaining eight were not. They were sole-source contracts.

[Michael Barrett, Conservative, Leeds—Grenville—Thousand Islands and Rideau Lakes, ON]

Okay.

Are you able to say why the balance were not competitive contracts?

[Helena Jaczek, Liberal, Markham—Stouffville, ON]

I will have to turn to my deputy.