Question Period Note: 2024 PUBLIC ACCOUNTS OF CANADA FOR EMPLOYMENT AND SOCIAL DEVELOPMENT CANADA

Employment and Social
Development Canada (ESDC) has reported $1.02 billion in professional and special
services expenditures in 2023-2024. Can you elaborate on how the department is
demonstrating stewardship of funds through its procurement of professional services?

In volume III of the Public Accounts of Canada 2024, ESDC
reported a total of $1.02B in expenditures for professional
and special services ($963.2M in 2022-2023). In carrying out
its programs and providing services to Canadians, ESDC is
committed to ensuring effective contract and financial
management, upholding transparency, compliance, and
accountability in the use of public resources.
 Consultants provide a flexible and rapid deployment of
resources with specialized skills and expertise to support
ESDC’s operational requirements and internal systems,
specifically providing guidance for the department’s
transformation efforts, and to help ensure ESDC programs
and services are delivered efficiently, effectively, and
prudently.
 The department continues to ensure that contracts include a
knowledge-transfer component or plans for sustained
management of solutions to be less reliant on consultants as
we move from the building and implementation stages to the
management of solutions.
 ESDC utilizes Public Services and Procurement Canada
(PSPC) mandatory government-wide vehicles for its
professional services contracts and follows all applicable
policies, directives, laws, and trade agreements, in all its
procurement activities. Notably, ESDC, conducts
procurements in line with the key principles found in
Treasury Board’s Directive on the Management of
Procurement, the Government Contracts Regulations
(GCRs), and the guidance provided in PSPC’s Supply
Manual.

ESDC reports on professional services, categorized in accordance with Receiver General
instructions. The following table presents the total amount spent in the current fiscal year
for professional and special services in the following reporting categories:
Reporting Category Expenses reported
Business Services 444.29M
Legal Services 18.52M
Scientific and Research Services 1.85M
Training and Educational Services 13.61M
Health and Welfare Services 7.47M
Protection Services 17.05M
Informatics Services 266.39M
Management Consulting 233.59M
Special Fees and Services 1.24M
Temporary Help Services 1.00M
Interpretation and Translation Services 8.07M
Other Services 2.61M
Total 1,015.71M
The reporting in the Public Accounts includes for each category of professional and special
services, a detailed listing of individuals or organizations that received payments
aggregating to $100,000 or over. Amounts below $100,000 are presented as a cumulative
total with the total number of payees.
Amounts reported include both internal and external expenditures whereas external
expenditures result from transactions between the Government and outside parties, internal
expenditures result from transactions involving organizations that are part of the
Government of Canada (i.e. other departments).
Under the business services category ($444M), there are internal expenditures with other
government departments and service fees for the delivery of some of ESDC’s programs;
with the provinces for Labor Market Development Agreements ($191.8M), with the service
provider for Canada Student Loans ($50.5M), for the Government Employees
Compensation Act ($46.9M), and with Public Services and Procurement Canada (PSPC)
for internal expenditures with regards to the National Accommodation Plan ($64.3M).
Under the informatics services category ($266M), $196.5M is for internal services
provided by Shared Services Canada (SSC).
Under the management consulting category ($234M), $150M is mainly for services
providing software capabilities and design related to the Benefit Delivery Modernization
project to develop a new system to issue benefits to Canadian citizens.
As one of the Government of Canada’s largest departments, ESDC awards hundreds of
contracts every year. The procurement of professional services allows the department to
support the delivery of programs and services to Canadians, while ensuring best value to
the Crown.
ESDC collaborates closely with various audit bodies to continuously improve its
procurement process, and diligently implements recommendations resulting from audits,
thereby strengthening internal procedures and minimizing risk to the department.
The Procurement Review Committee (PRC) at ESDC provides ongoing procurement
oversight to ensure that ESDC’s contracting activities are carried out in accordance with the
applicable legislation, policies, and procedures, while considering national and
departmental priorities. The PRC provides oversight of high-risk procurement activities for
the department and provides a challenge function aimed at upholding the principles of
fairness, openness, transparency, and sound contract management.
In May 2024, the Treasury Board amended the Directive on the Management of
Procurement to include new requirements related to values and ethics, documentation, and
reporting.

Dans le volume III des Comptes publics du Canada 2024, EDSC a déclaré des
dépenses de services professionnels et spéciaux de 1,02 milliards de dollars
(963,2 millions de dollars en 2023), les dépenses les plus importantes étant
attribuées aux services commerciaux, aux services informatiques et aux services
de conseil en gestion.