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Public Works and Government Services Canada (PWGSC)'s Report on Plans and Priorities 2006-07 outlines the key objectives for the department, and how we intend to help the Government of Canada provide quality services to Canadians.
Our department has begun transforming the way the government does business and finding innovative ways to deliver services smarter, faster and at a reduced cost. We are buying smarter, exploring savings in real estate, taking full advantage of information technology and greening government operations. We are taking a whole-of-government approach to program and service delivery. And, we aim to save several billion dollars for taxpayers over a five-year period.
As we begin to deliver on those savings and efficiencies, we have identified four major priorities that will guide our activities over the reporting period: strengthening accountability and transparency, pursuing our business transformation agenda, supporting the government's strategic agenda, and, delivering major projects of national importance, such as military procurement and e-Government.
To do this, we will build on the accountability measures we have implemented including improved internal audit and evaluation functions, coordinated risk management, increased proactive disclosure and better reporting on commitments.
In support of the government's commitments articulated in the Federal Accountability Act and Action Plan, we will pay particular attention to ensuring a fair, open and transparent procurement process. We will make sure that there are improved opportunities for Small and Medium Enterprises in all regions of Canada to compete for government contracts.
Working with Canadians, our partners in government and private sector stakeholders, we will generate savings that can be reallocated to Canadians' other priorities – priorities such as lowering taxes for working Canadians, supporting parents' child care choices, and delivering the health care Canadians need.
Sound management, strong ethics and a profound respect for Canadians' hard earned money are at the core of what we do. I look forward to working with all PWGSC employees to respond to the expectations of Canadians in these areas.
I submit, for tabling in Parliament, the Report on Plans and Priorities: 2006-2007 to 2008-2009 for Public Works and Government Services Canada.
This document has been prepared based on the reporting principles and disclosure requirements contained in the Treasury Board Secretariat's Guide for the Preparation of Report on Plans and Priorities in that it presents consistent, balanced, and accurate information to Parliament by:
Our raison d'être is to ensure optimum value to the government and to Canadians in the provision of common, central and shared services. Through the delivery of our core services, Public Works and Government Services Canada (PWGSC) enables other government departments and agencies to deliver on their mandates.
PWGSC focuses on what Canadians, our clients and key stakeholders, have said they value. The following has become the PWGSC Value Proposition.
PWGSC has an annual budget of $4.5 billion and employs approximately 12,000 people. Where appropriate, PWGSC takes a government-wide approach to facilitate innovative solutions to the complex challenges that it faces.
PWGSC Business Highlights
PWGSC is the government's principal real property manager, central purchasing agent, banker and accountant. It provides services in the areas of payroll and pensions, information technology, translation, audit, communications and consulting. PWGSC is also responsible for leading the greening of government operations, with initiatives such as environmentally-friendly "green" procurement.
PWGSC provides its services in a professional, innovative, efficient and effective manner. The management of public funds is safeguarded by transparent and independent checks and balances.
The department's Program Activity Architecture (PAA) is based on two strategic outcomes, namely Quality Services and Sound Stewardship.
Quality Services: PWGSC provides common, central and shared services to client departments and agencies.
Sound Stewardship: PWGSC aims to achieve best value for the taxpayer by exercising quality assurance and maintaining service integrity.
The PWGSC Expenditure Summary for 2006-09 (Figure 1) presents the expenditures for PWGSC (i.e., Government Services Program) by our eight key government service areas: Real Property; Acquisitions; Information Technology; Receiver General and Public Service Compensation; Government Information and Consulting; Office of Greening Government Operations; Business Integration; and Special Operating Agencies.
In addition to the standard delivery of its services, PWGSC is committed to leading a government-wide effort to reduce the cost of procurement and real property. Over a five-year period, PWGSC is planning and leading initiatives expected to produce $3.4 billion in government-wide savings. Procurement and Real Property will be the primary generators of these savings. Approximately $2.5 billion and $925 million in savings are projected from Procurement and Real Property respectively.
|Figure 1||PWGSC Expenditure Summary for 2006-09|
|Government Services Program||
Note: See Section III for financial details.
|Totals may not add up due to rounding.|
|Figure 2||Government-wide Potential Net Savings|
|Priority (New Saving)||2005-06||2006-07||2007-08||2008-09||2009-10||Total|
|Shared Travel Services Initiative||20||85||130||140||375|
|Total per Year||177||296||722||1,068||1,162||3,425|
|Note: The achievement of $3.4 billion in government-wide savings will require the full commitment of our colleague departments and policy-making agencies. Numbers have been rounded to the nearest million.|
Figure 2 provides a summary of these expected savings, and of the investments that will be needed to generate them.
To achieve these savings, PWGSC plans to invest up to $190 million over five years in initiatives to support procurement and real property transformation. Additional expertise, as well as policy, regulatory and legislative changes will be needed to implement these initiatives and support the planned, government-wide savings.
PWGSC must operate with appropriate checks and balances, and strengthen public confidence in government operations by reducing waste and by improving accountability, transparency and integrity. These challenges involve demonstrating that we have the internal management tools to monitor our performance, ensure proper comptrollership, and enhance a culture based on value and ethics.
PWGSC operates in a complex environment that is largely shaped by the government's priorities. PWGSC, with our client departments, must support public sector transformation. Government has become more horizontal and integrated. A challenge for PWGSC is to be an active contributor with other departments to whole-of-government strategic outcomes. In particular, PWGSC has a central role in achieving the government-wide objectives relating to modernization of public sector management. PWGSC must secure active participation from central agencies and colleague departments for successful delivery of the savings identified in the PWGSC-led, government-wide business transformation agenda, called The Way Forward.
PWGSC must emphasize client relationship management and best practices, if it is to respond in a more timely and effective manner to meet the needs of client departments and agencies. Canadians expect efficient and effective programs and operations that realize government-wide savings, while at the same time ensuring accountability, transparency and integrity.
Successful organizations know that the best plans are useless without knowledgeable, skilled, talented and motivated people to drive their success. In today's fiercely competitive marketplace, it is not enough to have a compelling business model and well planned strategies. Having a workforce strategy in place that is well connected to your business strategy is important.
Therefore, PWGSC will continue to build and improve Human Resources Management (HRM) in the spirit of the Public Service Modernization Act. We will continue to consult and work in partnership with our unions, support and foster early, informal workplace conflict resolution and improve integrated, business-based HRM Planning in a fair, transparent and effective fashion.
PWGSC will undergo significant changes over the next three years while striving to implement innovative ways to deliver services smarter, faster and at a reduced cost. Our ability to continue to efficiently provide high-quality services depends on having a work force that is productive, principled, sustainable and adaptable while providing a fair, enabling, healthy and safe workplace.
Given the many HRM challenges we face from The Way Forward, a departmental HRM Plan was developed. It focuses on the following principles:
Each principle outlines specific strategies, actions and accountabilities to support PWGSC and its branches in successfully implementing The Way Forward and in effectively managing employees on an ongoing basis to ensure continuing progress on HR issues such as learning, diversity, union-management relations, and official languages.
To meet the challenges facing PWGSC, we have established the following four priority areas for 2006-07:
Canadians expect their tax dollars to be linked with results to ensure value-for-money, and they expect the Government of Canada to pursue policies and programs that respond to public priorities. They expect government programs to operate in an open, transparent and accountable manner. They want assurances that government programs and services are well managed and give good value for their tax dollars. PWGSC has built a solid foundation and is continuing to work to increase capacity in ethics, audit and risk management, while implementing the government's management agenda.
In particular, PWGSC will make an important contribution to the implementation of the Federal Accountability Act and Action Plan by acting upon provisions in the Act in the area of government polling and advertising, and government procurement.
In addition, PWGSC, is one of the first departments to introduce an Ethics Program, that includes a Ten Point Integrity Plan that sets out the department's commitment to: strengthen ethical practices; hire Ethics Officers in every branch and region; link accountability with integrity and performance pay; and, expand ethics training throughout the department. In 2006-07, the department commits to further progress in its Ethics Program. The Statement of Values is being refocused to better reflect the principles and objectives of the business transformation agenda. The department plans to engage suppliers in a discussion on the role of values and ethics in managing their business relationships with PWGSC.
In line with the priorities of the Office of Comptroller General, PWGSC continues to strengthen its internal audit capacity, including increasing the independence of the Audit, Assurance and Ethics Committee with external members. In addition, the Office of the Chief Risk Officer (OCRO) provides advice directly to the Deputy Minister and to the department's senior management team on risk-related issues. OCRO acts as a focal point in managing risks within the department and plays an active role in identifying and managing risks within PWGSC. As well, a Chief Financial Officer position was established (subject to TB approval) to provide financial advice independently from any program or service responsibility.
In 2006-07, the department will:
Generating government-wide savings of $3.4 billion and improving management are the central components of PWGSC's transformation agenda. We are leading a major government-wide business transformation aimed at finding innovative ways to deliver services smarter, faster and at reduced cost in the areas of real property, procurement and Information Technology (IT) while leading the government's efforts to green its operations. This transformation has the following objectives:
The Way Forward – PWGSC's Contribution
Specific initiatives to achieve this transformation occur in the following core areas:
PWGSC has created a Strategic Transformation Branch to establish a more results-oriented approach to transformation, and to strengthen departmental co-ordination and monitoring of our core business transformation activities.
Throughout the business transformation process, PWGSC is committed to supporting government programs and priorities by delivering ongoing quality services to client departments and agencies in the right quantity, price and on time.
PWGSC, the central purchaser for the government, buys on average over $10 billion in goods and services annually. This represents about 80 per cent of government purchases involving more than 60,000 transactions. The acquisitions program is shifting from managing on a transactional basis to the provision of strategic management and oversight of the procurement process.
In May 2005, legislative changes gave the Minister of PWGSC expanded authority and responsibility for the acquisition and provision of services, including construction services, for departments and agencies. PWGSC will continue to work with TBS to establish the necessary conditions to bring these authorities into force. Government-wide commitment is a key condition for success in order to achieve the bottom line savings target. Implementation of the government-wide procurement strategy also requires keeping in mind other factors such as sustainable development, Aboriginal economic development and the impacts of procurement on Small and Medium Enterprises, and the regions.
Government procurement will be managed in such a manner as to promote greater accountability and transparency as called for in the Federal Accountability Act and Action Plan.
PWGSC – Acquisitions
The Real Property Renewal Strategy emphasizes a government-wide approach to improved planning and management, increased efficiencies in service delivery, as well as cost-effective, environmentally-friendly management of the portfolio. In the long-term, our objective is to achieve a net savings of $925 million over five years, with over 90% of these savings from PWGSC's reference levels.
Real Property will commence implementation of an enterprise-wide business transformation agenda by developing and implementing consistent and disciplined approaches to reflect industry standard practices. This will involve alignment of processes, people and systems with the new strategy. Some of our key commitments are to:
As one of the three pillars of the department's business transformation agenda, Information Technology (IT) Service's vision is to become the centre of excellence for the delivery of IT Shared Services to the government. Our goal is to facilitate the transformation of how the government does business by adopting a government-wide IT Shared Services approach.
PWGSC's Information Technology Services is enhancing electronic services and creating new value for citizens and businesses, by rationalizing the management of IT infrastructure across government to increase efficiencies, improve quality and standardize processes. IT transformation is about leveraging investments in technology to enable public sector modernization.
Currently, PWGSC is working with six partner organizations within the federal government to transfer IT services to a shared services model. IT Shared Services is key to improving how government works. It is an essential enabler of the government's commitment to delivering integrated, easily accessible services to Canadians.
PWGSC-delivered IT Common Services
As we move forward with this shared services approach, we will explore the advantages of creating a dedicated IT Shared Services Organization (IT-SSO). Such a model seeks to achieve a number of key results: more efficient, cost-effective operations through economies of scale and standardization; productivity gains; clearer accountabilities; timely decision-making based on consistent management information; and, common, more consistent levels of service across the government. To achieve these results, PWGSC is aiming to:
PWGSC is well-positioned to support the government's strategic agenda and government-wide management priorities while at the same time providing savings and quality services to the satisfaction of our stakeholders. PWGSC is supporting the government's accountability agenda by our # 1 priority, Strengthening Accountability and Transparency, by contributing to the implementation of the Federal Accountability Act and Action Plan. PWGSC is also indirectly supporting the government's commitments (e.g., tax reductions and child care) through savings resulting from our # 2 priority, Business Transformation.
As one of Canada's oldest federal departments, PWGSC has a long history of public service representing some of the best traditions of Canadian nationhood. PWGSC has extensive experience in linking communities through infrastructure and Canada-wide federal presence. PWGSC continues to provide professional and results-oriented management and to deliver complex and high-value projects of national importance.
Specific major capital projects and horizontal initiatives led by PWGSC include:
Pressures to share information across departments, agencies, other levels of government and international organizations are increasing. Our continued collaboration with provinces and territories, as well as other jurisdictions, will enhance our ability to deliver shared services and projects of national importance.
PWGSC has a unique opportunity to contribute to the government's broader agenda, e.g., the implementation of the Federal Accountability Act and Action Plan. This legislation will improve accountability and transparency and strengthen the management of such government-wide activities as public opinion research, advertising and procurement. In addition, PWGSC will align its management practices with the measures in the Federal Accountability Act and Action Plan, and adjust the programs and services we deliver on behalf of the Government of Canada.
PWGSC is well-positioned to deliver on and support emerging priorities for Canadians. PWGSC launched The Way Forward business transformation initiative, built on a whole-of-government service model, that would provide greater public sector value through: improved efficiency and sound management; more focus on strategic outcomes; improved service delivery; and greater accountability and transparency. In an effort to mitigate concerns raised by Small and Medium Enterprises regarding the potential reduction of competitive opportunities for government business; the Office of Small and Medium Enterprises is endeavouring to strengthen access to government business for SMEs through collaboration with industry associations and individual businesses on training, information, development of support tools, and through participation in procurement policy changes.
PWGSC has recognized and embraced the government's commitment to restoring Canadians' faith in their public institutions, rewarding hard work and innovation, improving the quality of life in our communities and strengthening Canada through safety and unity. Through its plans and performance, particularly The Way Forward, PWGSC will be vigilant in supporting the government's emerging priorities over the planning period of this Report.