Thank you, Mr. Chair. Good afternoon and thank you for having me and my officials here with you today to talk about the role of Public Services and Procurement Canada in the government's response to COVID-19.
Before I begin I would like to thank the people behind the scenes who are making this meeting possible, including our language interpreters who continue to do an exceptional job in ensuring that Canadians have the most recent information.
With me today, Mr. Chair, as you mentioned, is Michael Vandergrift, the associate deputy minister at PSPC; as well as Arianne Reza, the assistant deputy minister of the procurement branch.
PSPC is the central purchaser for the Government of Canada and is responsible for procuring goods that will help see us through the COVID-19 pandemic. Specifically we are helping to equip Canada with personal protective equipment and medical supplies for now and for the months ahead. It is no secret that we are operating in a highly competitive global environment, and this comes with challenges. The entire world is scrambling to get the same materials from a finite number of suppliers, many of whom are located in China. This is resulting in a complex and unpredictable supply chain. Add to this order restrictions and you end up with a highly unstable marketplace where orders don't always materialize into immediate deliveries.
I think I should spend a few minutes, Mr. Chair, talking to you about our procurement strategy. Then I will drift into some updates on specific goods that we are acquiring.
I can tell you that our procurement experts are working day and night aggressively buying from all available suppliers and distributors here at home and abroad. In support of Canada's front-line health workers, we buy supplies on behalf of the Public Health Agency of Canada, which consolidates requests from provinces and territories and also maintains our national stockpile. This procurement activity is over and above what provinces and territories are doing on their own.
I should stress that the strategy we're pursuing, which I mentioned I would share with committee, continues to evolve and be fine-tuned as circumstances change as we are dealing with global marketplaces such as we have never seen. I am sure that members are aware of the importance of PPE, personal protective equipment, given the global scale of this crisis and the importance of China from a PPE production standpoint. We're dealing with a situation in which many jurisdictions are competing for scarce supplies. At the same time, industry is trying to scale up to meet the global demand, which means that new players are emerging rapidly. Normally we would look to procure these types of goods through a Canadian distribution channel, but given the rapidly changing market conditions, a different approach was and is necessary.
Our procurement strategy is three-pronged. The first part involved buying existing inventory where we could, inventory that was already on the shelves. As you can imagine, given the pandemic, these goods were in short supply but they were important to obtain while we put in place the second part of our strategy.
Part two of the strategy, which is ongoing, was to place large orders to receive a steady stream of goods over a number of months. One of the benefits here is that big orders are more commercially attractive in a competitive marketplace. Ordering collaboratively with the provincial and territorial partners allows us to increase the size of our orders and get the attention of industry. We've also made the deliberate decision to order aggressively, or stated another way, to consciously over-order. This was and is a deliberate attempt to acquire goods given the uncertainty around the timeliness of receipts and delivery.
As you can imagine, close collaboration with provincial and territorial governments is imperative to our success. To that end, the minister of PSPC has established a federal-provincial-territorial ministerial table on procurement, which is helping to bring even greater coordination in identifying and meeting supply needs.
The third prong is domestic. Under the leadership of the Department of Innovation, Science and Economic Development Canada, discussions have been launched with domestic industry in Canada to help fill the gap on a medium- and longer-term basis. Many companies from across Canada have answered that call with some manufacturers completely shifting their production lines to meet the urgent need. My department's role in this case is to establish contracts with these companies. We've already begun to do so, and I will get into that in a moment.
There are some challenges and I would be misleading the committee members if I left anyone with the impression that procuring in this environment is easy or risk-free. There are many risks. We are buying products at a high volume from unfamiliar suppliers, and that situation can present challenges both in terms of delivery and in terms of quality. Limited availability of many of these products is resulting in buyers overbidding—I mentioned competition earlier—and established orders are often redirected to those who are willing to pay the most. On top of this, we are seeing export controls change in China and rules around requirements for medical supplies changing as well. I mentioned China already. That situation has changed a couple of times and it's worth keeping an eye on as rules change there.
Successfully navigating this environment requires significant support on the ground. This is an area where we have had to adjust our strategy to better align with reality. Given the emergence of new players and the shortage of supply, we can no longer rely solely on Canadian distributors to obtain products. Our officials are working closely with partners in other countries, including embassies, to ensure our supply chain. This on-the-ground support and expertise is proving invaluable, as diplomatic staff and external partners assist in vetting companies in advance to ensure better quality. This is in addition to the on-the-ground support to ensure product delivery, logistics and warehousing expertise to help secure our shipments and bring them to Canada.
This support includes receiving product as it comes off production lines, quickly inspecting it for quality, arranging for shipment to a warehouse we have secured at an airport and actively securing customs clearance.
Through all of this, we have had to significantly accelerate our procurement processes by making quick decisions and streamlining contracting steps. Contracts that would usually take several months to finalize are being put into place in days, if not hours. Traditional competitive approaches would mean that the product would be sold to another buyer before we made a decision, in an environment where prices are increasing rapidly and rules and regulations are changing overnight.
Even after our shipments arrive in Canada, the Public Health Agency must first inspect purchased supplies and then get them to where they're needed across the country. The same is true for any supplies we produce in various regions across the country. To help us with this logistics effort and to help our colleagues at the Public Health Agency of Canada, we have reached an arrangement with Amazon Canada to do delivery and warehousing inside Canada. Canada Post and Purolator are also playing a role in this effort and that is really to help the Public Health Agency of Canada make sure that the PPE gets to the locations where it is needed most. This is all about moving supplies from where they're manufactured into the eventual hands of our doctors, nurses and health care professionals as fast as possible. PSPC has a role in doing that.
Let me turn now to the latest numbers in terms of orders and deliveries. These numbers are as of April 13 and they change rapidly. We have managed to order more than 293 million surgical masks and more than 130 million N95 respirators, a key piece of protection for health care workers. To date, we have received deliveries of more than 17 million surgical masks, and just over 609,000 N95 respirators. To meet longer-term supply needs, we are working to establish a domestic manufacturing contract in Canada with Medicom of Pointe-Claire, Quebec for these masks. Like all of the equipment that countries are seeking, ventilators are in short supply. In this tight market, we have managed to secure orders for 32,000 ventilators from a variety of companies, including Canadian companies Thornhill Medical, CAE, StarFish and FTI professional grade.
In addition, we have ordered more than 20 million litres of hand sanitizer. Delivery has already started and will continue over the coming months. This is supported domestically in part by an agreement with Fluid Energy, a Calgary-based company.
We have ordered over 900 million pairs of gloves, and to date we have already received nearly five million. We have ordered 17 million face shields. This includes an agreement with Bauer, which has shifted its hockey skate production lines to make face shields that are so important for front-line medical staff.
Test kits are an area of frequent discussion. When it comes to test kits, supplies are being delivered, including hundreds of thousands of swabs and we continue to work to procure more. I would note that there's a global shortage of reagent, which is an important chemical used in testing. It's something we are aggressively seeking out and ordering. We continue to monitor the situation with Health Canada on the availability of global supplies.
I would also like to mention that Health Canada and the Public Health Agency of Canada are accelerating regulatory reviews of new tests and other products, so that more products are available to support our response.
Here at home we have recently awarded a contract to Spartan, an Ottawa-based company that will provide rapid test kits to test more than a million Canadians for the virus. This is on top of the testing that is already being done by provinces and territories.
These are just some of the things we've procured and a handful of the Canadian companies that are rising to the challenge and involved in the response. We are constantly adding to our orders and identifying our needs.
Just before I wrap up, there are a couple of things I should highlight to the committee because the department is offering support in other ways besides procurements. I've already mentioned our interpreters here today. The translation bureau is supporting the communication of COVID-19 related information to Canadians. This includes sign languages, official language and indigenous language interpretation for government officials, ministers and the Prime Minister.
As we manage one of the largest portfolios of real estate across the country we are currently inventorying our holdings to explore how to best provide communities with the support for secure accommodations that they may need in the future. This obviously involves working with local governments and provincial partners as well.
In closing, Mr. Chair, the most important role we're playing is the purchase of vital supplies. These are unprecedented times, and the government is taking unprecedented measures to get equipment to the front lines. While we are making significant progress, we are operating in a hyper-competitive market, and we must continue to be vigilant. We know that we may be dealing with spikes in COVID-19 infections in Canada for months to come, and we need to be prepared for all scenarios.
On behalf of the health officials that we support, my department will continue to seek out supplies and secure them and the necessary products our health care professionals need to keep Canadians and themselves safe.
Thank you for your time. We look forward to your questions.