Thank you, Mr. Chair, for the opportunity to discuss the role of Public Services and Procurement Canada in relation to the benefits delivery modernization program.
All Canadians should expect to receive accurate and timely benefits, regardless of how those benefits are managed from an IT infrastructure perspective. They trust that the government departments responsible for old age security, employment insurance and the Canada pension plan can preserve the continuity of payments, even during large-scale IT transformation projects.
The benefits delivery modernization program is the largest IT transformation initiative ever undertaken by the Government of Canada. It will replace outdated and complicated legacy systems with a streamlined and secure software platform to access benefits for old age security, employment insurance and the Canada pension plan.
Canada requires the skill and expertise to execute transformations of this magnitude and complexity. Consequently, PSPC, on behalf of ESDC, has contracted vendors with a proven track record of success in large transformation projects.
In her fall reports, the Auditor General concluded a study as to whether the program was progressing in a way that supports the continuous delivery of critical benefits for Canadians. This includes an examination of the various processes, including procurement, that are engaged during the transition of IT systems and business processes.
The study did not result in recommendations directed at PSPC, but our role in the program is important and critical, and we will continue to support ESDC as it moves forward.
As a common service provider, PSPC provides support to Employment and Social Development Canada for major procurements related to the benefit delivery modernization program, including all professional services contracts. These contracts ensure that Canada has access to the strategic advice and specialized expertise of system integrators that are critical to the success of the Program.
In early 2021, following a competitive procurement process, PSPC awarded four contracts to qualified systems integrators to provide integration services to onboard the three large benefits onto the new technology platform, which involves hundreds of different technologies. The systems integrators also provide strategic advice and some technologies as needed. Specifically, as a result of a competitive process, contracts were awarded to Accenture, CGI Information Systems, Deloitte, and Fujitsu Consulting.
These four qualified suppliers usually compete for work packages. In some instances, and where appropriate, the work is allocated among all four suppliers, who then work collaboratively to advance the program.
The combined cumulative value of contracts awarded to the four system integrators is currently $409 million. I will note that PSPC is currently supporting ESDC in designing the procurement to replace the employment insurance system, which will result in additional work via these contracts.
The department has also awarded a contract on behalf of ESDC, as a result of a competitive process, for the core technology platform to IBM Canada, currently valued at $70 million. Each of the benefit programs will be onboarded and integrated onto this platform. PSPC also issued a large competitive contract for strategic transformation advice, as well a project management services, to PricewaterhouseCoopers, currently valued at $147 million.
Finally, work has begun with ESDC to prepare for the retendering of the strategic transformation advice contract, and it is estimated that the contract will be valued at approximately $70 million.
Mr. Chair, PSPC is integrated into all levels of benefits delivery modernization governance in order to provide guidance on the procurement elements of this transformation program. Given the size and scope of the program, we have a team of procurement specialists working full time on this file to support ESDC in ensuring that it meets the needs of Canadians across the country.
For this project, as with everything we do, PSPC is committed to ensuring that procurements are conducted in a fair, open and transparent manner. At the same time, we are ensuring that procurements are undertaken in accordance with relevant policies, guidelines, regulations, trade agreements and procedures while meeting the requirements outlined by client departments.
We will continue to provide contracting services and work with ESDC and other partners to deliver BDM with the shared goal of ensuring that the government delivers benefits for Canadians with an emphasis on efficiency, accuracy and accessibility.
Thank you, Mr. Chair.
I would be pleased to answer the committee’s questions.