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Minister’s Message

It is my pleasure to present Public Works and Government Services Canada's (PWGSC) Report on Plans and Priorities for 2012-13. This report outlines the Department's priorities in support of the Government of Canada and Canadians.

Our Government's top priority is creating jobs, growth and long-term economic prosperity. Over the next year, PWGSC will continue to improve how we do business to ensure best value for the Canadian taxpayer and the best result for the Canadian economy. We will focus on improving our services, ensuring that federal infrastructure is safe, and building on our cost-efficient management practices.

By providing services to the Government of Canada, PWGSC helps departments and agencies focus on serving Canadians. We will build on the progress made to ensure client satisfaction and sound stewardship on behalf of Canadians. With the global economy still fragile, PWGSC is committed to delivering these services smarter and faster and at a reduced cost so that we improve how the government does business while saving taxpayer dollars.

The Government of Canada is committed to improving procurement, in consultation with Canadian industries, so that we can maximize job creation, support Canadian innovation and bolster economic growth across the country. For example, through our Smart Procurement approach, which includes the Canadian Innovation Commercialization Program, the National Shipbuilding Procurement Strategy and the Review of Procurement Strategies for 31 categories of goods and services, we are building on our successes and leveraging government contracting to support Canadian businesses and deliver the best value to Canadians.

Investments in federal infrastructure create local jobs and help keep our economy moving while ensuring that we continue to provide safe and reliable public infrastructure for all Canadians. Through Canada's Economic Action Plan, over the next five years the Government of Canada is investing in federal infrastructure projects across the country, including bridges and dams within the PWGSC infrastructure portfolio.

This year marks an important milestone in our service modernization initiative. We are completing the transfer of pension administration services, and we will soon begin to gradually transfer pay administration services to a new Centre of Expertise in Miramichi, New Brunswick.

The modernization of the Government's pay system and services will save taxpayers millions of dollars and create hundreds of jobs. This is part of our Government's ongoing commitment to increase the effectiveness of our operations and eliminate unnecessary costs.

The Government has received a mandate from Canadians to eliminate the deficit, keep taxes low and continue creating jobs for Canadians. As part of this work, we are modernizing how we do business to ensure that our initiatives are being implemented as effectively and efficiently as possible at the best value for the Canadian taxpayer.

I am proud of what we have accomplished in making government more transparent, modern and accountable to Canadians. I am confident that the initiatives described in this report-supported by our dedicated employees-will make an important contribution to the sound management of the resources entrusted to us, and will ensure value for money for Canadians.

Section I: Organizational Overview

Raison d’être

Responsibilities

The Department, founded in 1841, was instrumental in the building of our nation's canals, roads and bridges, the Houses of Parliament, post offices and federal buildings across the country.

Today, we have evolved into a sophisticated operational arm of government that employs more than 12,700 staff working in the National Capital Area, as well as in offices in Halifax, Montreal, Toronto, Edmonton and Vancouver and other locations throughout the regions.

The Department of Public Works and Government Services Act, passed in 1996, established the Department and set out the legal authorities for PWGSC's services. The Act established PWGSC as a common service organization providing government departments, boards and agencies with support services for their programs, including:

• Procurement;
• Office accommodation and facilities;
• Architectural and engineering services;
• Construction, maintenance and repair of public works and federal real property;
• Linguistic authority; and
• Industrial security screening.

The Minister of PWGSC serves as the Receiver General for Canada and has the authority for the administration of services related to benefits, superannuation, pension plans, and the disbursement of pay to federal employees. The Minister is also responsible for maintaining the Public Accounts of Canada.

Our goal is to manage our business in a way that strengthens accountability, transparency, and adds value for our clients. In doing so, PWGSC:

• Injects more than $14 billion annually into the Canadian economy through government procurement;
• Issues more than 14 million federal pay and pension payments;
• Provides accommodation to parliamentarians and more than 269,000 public servants in 1,819 locations across Canada;
• Provides translation and interpretation services, annually, for more than 1,700 parliamentary sittings and parliamentary committee meetings, and translates more than one million pages of text on behalf of other federal organizations; and
• Handles over $2 trillion in cash flow transactions as the Receiver General for Canada.

The Minister of PWGSC's portfolio also includes four Crown Corporations: Canada Lands Company Limited; Defence Construction (1951) Limited; Old Port of Montreal Corporation Inc.; and Parc Downsview Park Inc.

Strategic Outcome and Program Activity Architecture

PWGSC's Program Activity Architecture (PAA), as approved by the Treasury Board, supports our strategic outcome of seeking high-quality, central programs and services that ensure sound stewardship on behalf of Canadians and meet the program needs of federal institutions. The following table lists the program activities that comprise PWGSC's PAA.

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Contribution of Priorities to Strategic Outcome

PWGSC's strategic outcome is to deliver 'high quality, central programs and services that ensure sound stewardship on behalf of Canadians and meet the program needs of federal institutions'. Our work in support of this goal includes the three organizational priorities described in the table below, which are also reflected in the program activity planning highlights in Section II of this report.

PWGSC's Client Service Strategy

PWGSC's Client Service Strategy supports both the "quality services" and "sound stewardship" aspects of PWGSC's Strategic Outcome. This department-wide initiative, now in its third year of implementation, consists of six pillars:

• Service Agreements,
• Service Standards,
• Client Satisfaction,
• Client Engagement,
• Service Culture, and
• Innovative Service Offerings.

Building on the progress made over the past year, each pillar of this strategy will be further implemented in 2012-13 in all business branches.

PWGSC will engage client departments to develop and ratify service agreements and will publicize its commitments to service performance in an annual report, Our Services and Standards. It will publish a Client Engagement Framework, which presents a consistent set of principles and practices to guide the Department's interactions with its clients, including consultation activities and dissemination of results. PWGSC will also introduce client service training courses for employees and develop a client service competency against which to assess employee performance.

Our goal is to build a common, department-wide approach to client service management, in consultation with client departments, that will bring greater clarity to service priorities and expectations, improve client satisfaction measurement, facilitate better client engagement, and introduce a more systematic approach to the ongoing development of a client service culture at PWGSC.

Organizational Priorities

Priority	Type	Strategic Outcome and/or Program Activity
Delivering Efficient and Effective Services	Ongoing	Acquisitions Federal Pay and Pension Administration Receiver General for Canada Linguistic Management and Services Specialized Programs and Services
Description
Working within and across programs to continuously improve the efficiency and effectiveness of service delivery to PWGSC's clients inside and outside government. Why is this a priority? With a mission to deliver high-quality services and programs, PWGSC focuses on improving service delivery to meet the current and future needs of our clients, increase their satisfaction with the services they receive, and ensure they and Canadian taxpayers receive value for money. Plans for meeting the priority For 2012-13, the department will: In the area of procurement modernization, explore innovative approaches such as "Smart Procurement" to simplify and streamline our procurement process. We will enhance departments' access to pre-competed procurement tools and methods of supply through on-line tools, risk-based delegation mechanisms, and an evolving service strategy. We will also continue strengthening relations with suppliers, making it easier for them to do business with the Government of Canada so that Federal clients will have access to the best goods and services available. Continue to implement the Transformation of Pay Administration Initiative, replacing the outdated pay system to: ensure the long-term sustainability of the Government of Canada pay administration, and increase efficiency, generating $78M in annual savings to the government; modernize processes and build web-based self-service; gradually transfer pay administration services from other departments and begin the hiring of employees to PWGSC's new Centre of Expertise in Miramichi, New Brunswick. Continue to implement the Transformation of Pension Administration with the aim of: completing the replacement of outdated systems infrastructure by implementing the last two releases of the Pension Modernization project; increasing pension administration efficiency resulting in an across-government annual saving of $29M. Continue the transformation of the Translation Bureau (through the Rethinking the Bureau initiative) in order to maximize the efficiency and effectiveness of operations by investing in new language technologies to increase its translators' productivity and improve service delivery Increase awareness of Document Imaging Services, based in Matane, Quebec, which delivers industry leading document imaging services to federal government departments and agencies aimed at reducing the need to store large volumes of paper documents and allowing client departments to reduce operational costs. Further modernize and transform the Industrial Security Program's operations with the goal of reducing red tape and increasing the efficiency of the security clearances process. Complete the planned enhancements to the Controlled Goods Program to ensure a smooth implementation that allows Canadian industry to take full and immediate advantage of the new International Traffic in Arms Regulation(ITAR) dual national rule.

Priority	Type	Strategic Outcome and/or Program Activity
Transforming Critical Infrastructure	Ongoing	Accommodation and Real Property Services
Description
Implementing major projects to transform the state and management of the Department's physical assets in support of sound stewardship objectives. Why is this a priority? PWGSC must use its available resources to effectively maintain an up-to-date infrastructure, introduce efficiencies in how the infrastructure meets the needs of our clients, and exercise sound stewardship on behalf of Canadians. Plans for meeting the priority In 2012-13, the Department will: Ensure strategic management of our real property portfolio, including our engineering assets (bridges, dams, wharves, the portions of the Alaska Highway under PWGSC custodianship and the Esquimalt Graving Dock), and use innovative approaches to enhance our service delivery mechanisms, such as the increased use of private sector capacity, where appropriate. Through the implementation of a state of the art information technology system (NOVUS), our reporting will be integrated and accurate. We will continue to improve our relationship with clients and our partners, and will apply lessons learned from successful projects to enhance our future project delivery mechanisms. To improve how we evaluate and report on the performance of our business, we will use metrics and other evidence to achieve measurable results. Continue to protect the architectural integrity of the buildings in the Parliament Precinct through the Long Term Vision and Plan (LTVP): a blueprint for renovations and new construction to meet accommodation requirements of the Senate, the House of Commons and the Library of Parliament. The first priority of the LTVP continues to be the restoration of the heritage buildings on Parliament Hill (West, East and Centre Blocks). Major restoration work will continue on the West Block, 180 Wellington (Wellington Building) and the Sir John A. Macdonald (144 Wellington) buildings. Stabilization efforts will also continue on the East and Centre Blocks, as well as the Confederation Building in advance of their future major restoration. Lead the Workplace 2.0 initiative for the Government of Canada, updating workspaces and work processes, and providing new technologies that allow employees to better connect, collaborate and communicate. This initiative will help us to attract and retain the right people, with the skills and competencies needed to serve Canadians.

Priority	Type	Strategic Outcome and/or Program Activity
Ensuring Sound Stewardship and Management Excellence	Ongoing	All Program Activities
Description
Strengthening departmental practices and processes in the delivery of internal services and the management of financial and human resources in support of PWGSC's agenda, and supporting excellence in the greening of government operations. Why is this a priority? PWGSC is committed to building an enabling, productive workplace, to improving internal processes, and to promoting environmental sustainability government-wide. These activities are essential for the effective implementation of PWGSC's vision to excel in government operations. They will also ensure that PWGSC conducts its operations with a high level of transparency and accountability while ensuring that our commitment to our values and ethics is reflected in all PWGSC transactions. Plans for meeting the priority In 2012-13, the Department will: Maintain an integrated approach to labour force planning and workforce management while fostering a modern workplace and a skilled workforce. PWGSC will build on key human resources initiatives, now in place, which include a renewed governance framework for human resources, a new people management policy suite, and the implementation of the PWGSC People Management Philosophy. Improve financial management by focusing on four key areas: implement the Budget Management Excellence Framework to enhance budget monitoring and forecasting and ensure a more effective allocation of resources for business priorities; implement the Financial Management Framework which sets out standards and expectations for financial management and control across the Department; improve the management of capital and IT investments as well as acquired services through the implementation of PWGSC's Integrated Investment Plan and its governance framework; strengthen PWGSC's Enterprise Resource Planning (ERP) system and further develop our training strategy to ensure strengthened governance and greater accountability to Canadians. Implement a portfolio approach to the management of IT to ensure that projects and programs align with Departmental objectives, and that resource allocation for IT is prioritized on a department-wide basis, while reducing the cost of IT operations. Strengthen PWGSC's Information Management (IM) program to support effective decision-making and facilitate the delivery of programs and services. In the context of the Federal Sustainable Development Strategy, work closely with other government departments on strategies to improve the environmental performance of the federal government's operations in the areas of green buildings, greenhouse gas emissions from federal operations, electronic waste, printing units, paper consumption, green meetings and green procurement. In addition, the department is committed to reducing its own environmental footprint through the implementation of PWGSC's Sustainable Development Strategy 2011-14.

Risk Analysis

PWGSC integrates risk management principles into business planning, decision-making and organizational processes to minimize negative impacts and maximize opportunities in service delivery. Using risk management as an enabler, we seek well-managed, cost effective programs and projects.

PWGSC will face a number of internal and external risks in 2012-13. PWGSC's implementation of Strategic Review as well as the fiscal restraint measures found in Budgets 2010 and 2011 will potentially result in both risks and opportunities.

The PWGSC 2011 Corporate Risk Profile (CRP) provides a high level overview of PWGSC's strategic risks, including information on the new risk management environment. The CRP will inform PWGSC's business planning and will be monitored and reported in the upcoming fiscal year (2012-13).

In addition to managing its own cost reductions, PWGSC will face the financial and operational uncertainty that results from its role as a common service provider to federal departments and agencies. As a result of Federal Budget 2010, all departments must contain growth through efficiencies and reallocate resources within their operating vote to meet their obligations. At PWGSC, steps have already been taken to ensure these risks are mitigated, notably through the implementation of a more robust Financial Management Framework and by implementing a more rigorous approach to the management of revenues, expenditures, forecasting and commitment monitoring.

Human resources capacity continues to be of concern to PWGSC. Financial restraint may limit the organization's ability to hire skilled resources needed to successfully achieve the department's current objectives, and to meet the needs of the future. In response, PWGSC has implemented departmental strategies to ensure the required workforce is in place to deliver its mandate, and to manage workload issues. In addition, to increase retention of the current workforce, the Department has developed strategies to be an employer of choice, which includes the PWGSC People Management Philosophy and its related commitments.

Planning Summary

The following table summarizes PWGSC's total planned spending for the next three fiscal years (2012-15).

Financial Resources ($ millions)

	Planned Spending
	2012-13	2013-14	2014-15
Gross Expenditures	5,950.3	5,706.0	5,667.9
Less Respendable Revenue	(3,276.5)	(3,070.8)	(3,163.8)
Net Expenditures	2,673.8	2,635.2	2,504.1

Totals may not add up due to rounding.

The following table provides PWGSC's total human resources Full-Time Equivalents (FTEs) for the next three fiscal years (2012-15).

Human Resources (FTEs)

2012-13	2013-14	2014-15
12,544	12,303	12,298

The table below describes the performance indicator and target for the Department's strategic outcome. This is a composite of the performance indicators and targets of program activities described in Section II of this report. All of PWGSC's program activities contribute to our strategic outcome.

Strategic Outcome: High quality, central programs and services that ensure sound stewardship on behalf of Canadians and meet the program needs of federal institutions.

Performance Indicators	Targets
Percentage of programs and services that meet their expected results, including service levels and published standards.	95%

Planning Summary Table

Federal departments and agencies are supported by PWGSC's strategic outcome and program activities. PWGSC's strategic outcome is aligned with the Government Affairs spending area of the Government of Canada's whole-of-government reporting framework, and therefore helps all departments and agencies to deliver on their mandates and serve Canadians.

The table below outlines PWGSC's planned spending for 2012-13, 2013-14 and 2014-15.

Planning Summary Table
($ millions)

Program Activity	Forecast Spending 2011-12	Planned Spending			Alignment to Government of Canada Outcomes
		2012-13	2013-14	2014-15
Acquisitions	155.6	152.0	121.6	121.5	Well-managed and efficient government operations.
Accommodation and Real Property Assets Management	1,909.3	2,012.8	2,045.9	1,925.2
Receiver General for Canada	125.3	121.3	118.2	118.1
Information Technology Infrastructure Services	8.9	9.4	3.9	-
Federal Pay and Pension Administration	64.0	33.9	22.9	21.7
Linguistic Management and Services	78.0	80.7	65.1	59.6
Specialized Programs and Services	55.0	45.7	44.4	44.4
Procurement Ombudsman	4.3	4.3	4.3	4.3	A transparent, accountable and responsive federal government.
Total Planned Spending	2,400.5	2,460.1	2,426.3	2,294.6
Note: The Forecast Spending for 2011-12 includes Main Estimates and additional funding approved since Main Estimates, primarily related to Real Property activities.

Totals may not add up due to rounding.

Planning Summary Table
($ millions)

Program Activity	Forecast Spending 2011-12	Planned Spending
		2012-13	2013-14	2014-15
Internal Services	351.9	213.7	209.0	209.4

Expenditure Profile

PWGSC is responding to government priorities by implementing its 2011 Strategic Review initiatives in a cost effective, efficient and timely manner. Federal Budget 2010 announced a number of cost containment measures to reduce the growth in operating expenditures in 2010-11 and the following two fiscal years. PWGSC has met this challenge by increasing management efficiencies, reallocating resources and establishing rigorous oversight on expenditures. PWGSC will continue to closely monitor revenue fluctuations and ensure ongoing financial agility to meet future fiscal challenges. Financial risks will also be addressed in a financial management environment which ensures resources are aligned with business priorities.

Departmental overhead expenditures will continue to be examined in light of overall program spending. Recent analysis indicates that increases in overhead expenditures have been held below the rate of the growth in business volumes.

Federal budget 2010 announced a number of cost containment measures to reduce the growth in operating expenditures in 2010-2011 and the following two fiscal years. PWGSC is responding by maintaining a freeze on its operating budget and reducing expenditure on travel.

The department continues to adhere to its Budget Management Excellence (BME) practices. These practices provide assurance that public funds are managed with requisite due diligence and oversight. BME is supported by effective financial management, planning, budgeting, monitoring and reporting. Since its implementation in 2009-10, BME has resulted in significant improvements to PWGSC's forecasting and budgeting results.

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The year over year variances in the table above are explained as follows:

• Planned spending decrease from 2011-12 to 2012-13 is due primarily to the transfer to Shared Services Canada following the creation of this new department on August 4, 2011.
• Planned spending decrease from 2012-13 to 2013-14 is due primarily to the Budget 2011 Strategic Review exercise to ensure that government programs and services meet the priorities of Canadians and are aligned with federal responsibilities.
• Planned spending decrease in 2013-14 to 2014-15 is due to completion of the site remediation at the Sydney Tar Ponds and the near completion of this phase of the Federal Contaminated Sites Action Plan.

Estimates by Vote

For information on our organizational appropriations, please see the 2012-13 Main Estimates publication. An electronic version of the Main Estimates is available at www.tbs-sct.gc.ca/est-pre/20122013/p2-eng.asp.

Contribution to the Federal Sustainable Development Strategy (FSDS)

The Federal Sustainable Development Strategy (FSDS) outlines the Government of Canada's commitment to improving the transparency of environmental decision-making by articulating its key strategic environmental goals and targets. PWGSC ensures that consideration of these outcomes is an integral part of its decision-making processes. In particular, through the department's Strategic Environmental Assessment (SEA) process, any policy, plan, or program proposal for which Cabinet or Ministerial approval is sought, is reviewed for potential important environmental effects, including its impact on the department's ability to achieve its FSDS goals and targets.

PWGSC contributes to Theme IV - Shrinking the Environmental Footprint - Beginning with Government, as denoted by the visual identifier below.

These contributions fall under the following Program Activities and are further explained in Section II:

• P.A. 2.2.2 - Accommodation and Real Property Services
• P.A. 2.2.7 - Specialized Programs and Services

For additional details on PWGSC's activities to support sustainable development please see Section II of this RPP and PWGSC's Sustainable Development Strategy webpage: www.tpsgc-pwgsc.gc.ca/ecologisation-greening/publications/renouvelable-sustainable-eng.html. For complete details on the Federal Sustainable Development Strategy please see www.ec.gc.ca/dd-sd/.

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