Evidence of meeting #41 for Government Operations and Estimates in the 45th Parliament, 1st session. (The original version is on Parliament’s site, as are the minutes.) The winning word was procurement.

A video is available from Parliament.

On the agenda

Members speaking

Before the committee

Laporte  Senior Assistant Deputy Minister, Procurement Branch, Department of Public Works and Government Services
Ozmutlu  Director General, Strategic Policy Sector, Department of Public Works and Government Services
Lawrence-Whyte  Director General, Buy Canadian, SME and Digital Solutions Sector, Department of Public Works and Government Services
Krumins  Assistant Comptroller General, Financial Management Sector, Treasury Board Secretariat
Kealey  Acting Executive Director, Financial Management Transfer Payments Policy, Treasury Board Secretariat
Franco  Executive Director, Procurement and Materiel Directorate, Treasury Board Secretariat

4:15 p.m.

Director General, Strategic Policy Sector, Department of Public Works and Government Services

Levent Ozmutlu

In terms of the value of the subcontracting, we are not putting a hard limit on that. That's determined based more on the evaluation. The more Canadian content you have, the higher points you will get.

4:15 p.m.

Conservative

Tamara Jansen Conservative Cloverdale—Langley City, BC

Okay. Has—

4:15 p.m.

Senior Assistant Deputy Minister, Procurement Branch, Department of Public Works and Government Services

Dominic Laporte

If I could add—

4:15 p.m.

Conservative

Tamara Jansen Conservative Cloverdale—Langley City, BC

I have another question. I'm sorry.

Has PSPC defined the threshold in writing for what we were just talking about?

4:15 p.m.

Senior Assistant Deputy Minister, Procurement Branch, Department of Public Works and Government Services

Dominic Laporte

You could be disqualified as a Canadian supplier if, for most of your activities, it was realized that you were subcontracting, so you're no longer driving those Canadian activities. For example, the supplier is outsourcing 75%—

4:15 p.m.

Conservative

Tamara Jansen Conservative Cloverdale—Langley City, BC

Is it in writing?

4:15 p.m.

Senior Assistant Deputy Minister, Procurement Branch, Department of Public Works and Government Services

Dominic Laporte

It's part of the policy, and it's going to define—

4:15 p.m.

Conservative

Tamara Jansen Conservative Cloverdale—Langley City, BC

It's in writing, then. We could find that.

4:15 p.m.

Senior Assistant Deputy Minister, Procurement Branch, Department of Public Works and Government Services

Dominic Laporte

Yes, you could find that as part—

4:15 p.m.

Conservative

Tamara Jansen Conservative Cloverdale—Langley City, BC

If you can hand that in, that would be great. That would be wonderful.

4:15 p.m.

Senior Assistant Deputy Minister, Procurement Branch, Department of Public Works and Government Services

Dominic Laporte

There's no specific threshold, though.

4:15 p.m.

Conservative

Tamara Jansen Conservative Cloverdale—Langley City, BC

Who verifies subcontractor compliance?

4:15 p.m.

Senior Assistant Deputy Minister, Procurement Branch, Department of Public Works and Government Services

Dominic Laporte

In terms of the subcontractor compliance, it's going to be on the supply chain. It's going to be incumbent on the main contractor to ensure that subcontractors are keeping all the evidence required for the self-attestation.

4:15 p.m.

Conservative

Tamara Jansen Conservative Cloverdale—Langley City, BC

How many resources will it take to properly monitor compliance?

4:15 p.m.

Senior Assistant Deputy Minister, Procurement Branch, Department of Public Works and Government Services

Dominic Laporte

We are launching the policy. There's a group.... Primarily, we're going to be relying on self-attestation.

4:15 p.m.

Conservative

Tamara Jansen Conservative Cloverdale—Langley City, BC

Okay.

In any procurement so far, has the government paid more in order to meet buy Canadian requirements?

4:15 p.m.

Senior Assistant Deputy Minister, Procurement Branch, Department of Public Works and Government Services

Dominic Laporte

I'm not able to comment on that. We have limited numbers of procurements so far.

4:15 p.m.

Conservative

Tamara Jansen Conservative Cloverdale—Langley City, BC

Has PSPC calculated the average cost premium associated with applying this policy?

4:15 p.m.

Senior Assistant Deputy Minister, Procurement Branch, Department of Public Works and Government Services

Dominic Laporte

Nine contracts have been awarded, so we don't have a large sample that will allow us to calculate that at this time.

4:15 p.m.

Conservative

Tamara Jansen Conservative Cloverdale—Langley City, BC

Do you have a formal audit framework for buy Canadian compliance?

4:15 p.m.

Senior Assistant Deputy Minister, Procurement Branch, Department of Public Works and Government Services

Dominic Laporte

We do have a compliance framework that has been developed. We involved our audit group as part of that, and yes, it's a very comprehensive, detailed audit.

4:15 p.m.

Conservative

Tamara Jansen Conservative Cloverdale—Langley City, BC

However, a lot of it is self-attestation. That's what I understood from your answers.

4:15 p.m.

Senior Assistant Deputy Minister, Procurement Branch, Department of Public Works and Government Services

Dominic Laporte

No, there's much more. It starts with a self-attestation, but at any time we can request information to—

Tamara Jansen Conservative Cloverdale—Langley City, BC

Will audits be random or risk-based?

4:15 p.m.

Senior Assistant Deputy Minister, Procurement Branch, Department of Public Works and Government Services

Dominic Laporte

They're going to be risk-based.