Other: Standing Committee on Government Operations and Estimates—November 24, 2022
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Implementation and support of the Laboratories Canada initiative
Key messages
- Through the Laboratories Canada Strategy, the Government of Canada is providing federal scientists with world-class, innovative and collaborative facilities to ensure they can keep pace with the transformative changes facing science today and into the future
- Phase 1 of the Laboratories Canada Strategy includes the development of 5 science hubs across the country that will support science program synergies in areas such as:
- security and regulation
- health and safety
- sustainability of fresh water and coastal ecosystems
- Public Services and Procurement Canada is working in partnership with science-based departments and agencies, such as the Department of Fisheries and Oceans, to achieve the science outcomes set out under the Laboratories Canada Strategy
- This strategy is delivering on the government's commitment to revitalizing federal science and creating sustainable, accessible, and modern science facilities
- This transformative approach to federal science will bolster collaboration and evidence-based science, while creating high quality jobs and improving the lives of Canadians
- This strategy also enables research and regulatory work that are at the foundation of the government’s mandate and priorities, as well as promoting innovation and the commercialization of new ideas
Key data points
- The Government of Canada owns and operates close to 200 science and research facilities
- Limited investment over decades in these facilities has resulted in very many facilities at and beyond their useful lives. With almost 50% of them built before 1975, the physical, digital and equipment backbones are costly to maintain, no longer meet modern needs, and impede science outcomes and effective decision-making
- Budget 2018 launched the first phase of this strategy with an investment of $2.8 billion to support federal scientists with the important work they do for Canada
- In fiscal year 2022 to 2023, Public Services and Procurement Canada is transferring $1.6 million (vote 1—operating expenditures) to the Department of Fisheries and Oceans (DFO), as lead for the Atlantic Science Enterprise Centre (ASEC), for their role to support the implementation of phase I of the Laboratories Canada Strategy
Background
Public Services and Procurement Canada (PSPC) is responsible for Laboratories Canada, a transformative strategy that will create a world-class, national network of federal laboratories. This strategy is driven by a Long Term Vision and Plan, grounded in guiding principles of:
- science cxcellence
- collaboration
- inclusive and diverse talent pool
- agility and responsiveness
- environmental responsibility
- responsible public stewardship
Budget 2018 launched the first phase of the Laboratories Canada Strategy by providing $2.8 billion to build world-class, collaborative, and accessible science facilities. Phase 1 lays the foundation for future success, addresses scientific facilities that are in the worst condition, and supports science in priority areas such as:
- security
- regulation
- health and safety resource management
- transportation safety
- sustainability of fresh water and coastal ecosystems
- heritage conservation
PSPC is leading integrated efforts with federal science departments and agencies, such as the Department of Fisheries and Oceans, as well as service providers, to deliver the Laboratories Canada Strategy. In fiscal year 2022 to 2023, funding is being transferred to Fisheries and Oceans Canada to support the Atlantic Science Enterprise Centre Hub Management Office which:
- seeks science-based department and agency partners’ input into the planning and execution
- provides guidance in development of collaborative science approaches
The Hub Management Office ensures that a science vision exists and that integrated science and space requirements foster interdepartmental and external collaboration while Public Services and Procurement Canada leads the project management and delivery.
Multiple science hubs, projects, and components of phase 1 of the Laboratories Canada Strategy have been announced publicly. Then-Minister Anita Anand announced the Laboratories Strategy on April 15, 2021, outlining the Laboratories Canada Long Term Vision and Plan for federal science, investments in science infrastructure to support Canadian scientists, and the phase 1 TerraCanada Hub, including the investments in its Mississauga and Hamilton projects. These events represent major milestones that will enable Laboratories Canada to continue advancing phase 1 projects, and engagement with key stakeholders such as municipalities, community organizations, Indigenous groups, and universities.
Tangible progress and early successes are already underway across the country. The TerraCanada Hamilton laboratory was completed in May 2022: it offers leading-edge facilities for federal scientists and academic partners who use smart robotics and artificial intelligence to accelerate the development of new metal materials for the clean energy and transportation sectors. The TerraCanada Mississauga laboratory, under active construction, will be a partner facility to the Hamilton lab, focusing on next-generation clean materials, such as photovoltaics and renewable fuels. The Canadian Food Inspection Agency’s Centre for Plant Health in Sidney, British Columbia moved from planning into construction in September 2022, with a ground-breaking and land blessing ceremony carried out by Indigenous partners. And the Atlantic Science Enterprise Centre in Moncton, New Brunswick, awarded major contracts for design and construction, which include significant benefits for local Indigenous communities.
Outsourcing of contracts
Context
There has been recent media attention on federal government spending on outsourcing contracts, noting a 40% increase between fiscal year 2015 to 2016 and 2020 to 2021. This information was sourced from the Public Accounts of Canada, tabled in the House of Commons on December 14, 2021. The Commons Standing Committee on Government Operations and Estimates is currently carrying out a study on outsourcing of contracts.
Suggested response
- Public Services and Procurement Canada is committed to an open, fair and transparent procurement process
- Public Services and Procurement Canada is a common service provider and supports departments by providing procurement tools to enable government policy and program objectives
- Departments and agencies are responsible for identifying and defining their outsourcing and contracting requirements
- The numbers presented in the media conflate contracting and outsourcing which mischaracterizes the nature of the spending. PSPC’s view is that outsourcing means having external parties provide goods, services or construction that used to be done or would normally be done by public servants
- Outsourcing is different than typical contracting, where Canada procures goods, services or construction support that falls outside typical in-house public service work
If pressed on reasons for outsourcing and contracting or growing demand for information technology and professional services:
- in awarding contracts Public Services and Procurement Canada adheres to the Treasury Board Secretariat’s Directive on the Management of Procurement and Directive on Payments
- there are market-wide skill shortages in information technology areas of expertise, which are in high demand across the government and the private sector
Background
In January 2022, media reported that the federal government spending on outsourcing contracts in the fiscal year 2020 to 2021 increased by 40% when compared to fiscal year 2015 to 2016. This came from information publicly available in the Public Accounts of Canada, tabled in the House of Commons on December 14, 2021.
Over the course of the 44th Parliament, 1st session, the topic of outsourcing and contracting work outside departments has been considered by members of various House of Commons standing committees. In fall 2022, the Standing Committee on Government Operations and Estimates launched a study on outsourcing of contracts.
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