Government Operations Committee on May 7th, 2026

[Scott Davis]

Thank you for that question.

We keep the links for a number of reasons. The reality is that, historically, most of the technology comes from the American companies that built it. I could name several.

Let me take a few seconds to answer the question you asked earlier.

In the fiscal year 2024-2025, Shared Services Canada awarded contracts totalling $3.174 billion. Most are IT contracts, of which 52.18% were signed with Canadian companies headquartered here in Canada. In addition, 26.39% of the contracts were awarded to Canadian suppliers—

[Marie-Hélène Gaudreau, Bloc, Laurentides—Labelle, QC]

Could you give me that answer after the meeting? I only have a few seconds left.

I would like to focus on what my colleagues said yesterday about the PrescribeIT software. It was designed to provide an e-prescribing service for medications. It incurred additional costs of $300 million. Finally, the project was abandoned. The minister did not even reply to us.

What is the issue?

[Scott Davis]

I think that contract was set up by Public Services and Procurement Canada on behalf of the Department of Health. They would be better able to answer your question.

[Marie-Hélène Gaudreau, Bloc, Laurentides—Labelle, QC]

Okay.

[Dominic Laporte]

I would just like to correct that answer.

PSPC was never involved in those files or those contracts.

Thank you.

[Marie-Hélène Gaudreau, Bloc, Laurentides—Labelle, QC]

Great.

Thank you, Mr. Chair.

[Dominic Laporte]

Thank you for indulging me.

[The Chair, Conservative, Kelly McCauley]

You are forgiven.

We'll go back to Ms. Jansen, please.

[Tamara Jansen, Conservative, Cloverdale—Langley City, BC]

Thank you.

My questions are for PSPC.

In the spring economic update, there was additional funding for PSPC to run an extra team at the pay centre dealing with the current backlog of cases. With additional funding and a shorter runway to remove that backlog of cases before the new Dayforce system comes in, do you have a timeline for that backlog to be removed?

[Michael Hammond]

Thank you for the question.

I'll turn to Kim Steele, who's responsible for the human capital area.

[Kim Steele, Assistant Deputy Minister, Department of Public Works and Government Services]

Thanks.

To clarify, the additional funding we received was to maintain surge capacity that we have at the pay centre. It's for resources that are already there specifically to address the potential increase in cases related to the early retirement incentive, as well as workforce adjustment. This gives you a sense that it's to maintain that capacity.

I want to highlight that, currently, the most recent backlog numbers are at 88,000, so we've seen a significant decrease in the backlog. Really, we're at the lowest point since Phoenix has been tracking the backlog, so we've been making good progress.

In relation to the onboarding to Dayforce, the goal is that we will have a phased approach. We will be onboarding gradually so that we will clear the backlog before each department onboards.

[Tamara Jansen, Conservative, Cloverdale—Langley City, BC]

Okay.

How many cases still exist that are older than five years?

[Kim Steele]

The way we track the backlog is with any case that's over a year old, and we have 88,000 of those. I'd have to come back with how many are over five years, but our backlog strategy is to address those that are the oldest and have the biggest financial impacts. Those are prioritized as part of our backlog work.

[Tamara Jansen, Conservative, Cloverdale—Langley City, BC]

You do have cases that are over five years old. Is that correct?

[Kim Steele]

I will have to come back and confirm.

[Tamara Jansen, Conservative, Cloverdale—Langley City, BC]

Have you been using AI, or will you be using AI, to assist in clearing that backlog?

[Kim Steele]

We've been using a number of different types of tools. We've just started introducing AI. The work we're looking to do is to help speed up the processing of cases, but we always have a compensation adviser as part of it. AI helps to gather the information together, but it is not making a decision; the compensation adviser does that.

[Tamara Jansen, Conservative, Cloverdale—Langley City, BC]

Then the question is this: How much is being spent to implement AI?

[Kim Steele]

I'll have to come back to you with that number.

[Tamara Jansen, Conservative, Cloverdale—Langley City, BC]

Okay, I'd appreciate it if you could.

I'm going back to PSPC.

My colleague had asked a question when the minister was present about PSPC being directed to examine present and future contracts to find savings last fall.

Was this exercise part of the CER?

[Michael Hammond]

Thank you for the question.

I'll turn to Dominic to speak to the federal contract review work that's been ongoing.

[Dominic Laporte]

Thank you for the question.

That review was requested by Minister Champagne and Minister Lightbound. We reviewed the largest contract that we have as a common service provider to identify savings.

[Tamara Jansen, Conservative, Cloverdale—Langley City, BC]

How much of the CER savings came from examining contracts for savings?

[Michael Hammond]

None of the CER savings that we proposed as a department were related to the review of contracts.

[Tamara Jansen, Conservative, Cloverdale—Langley City, BC]

Okay.

The interim policy on reciprocal procurement was issued last summer.

How much money will no longer be going to firms that fall outside the policy?