Question Period Note: PUBLIC ACCOUNTS OF CANADA 2025 FOR EMPLOYMENT AND SOCIAL DEVELOPMENT CANADA

Employment and Social
Development Canada (ESDC) has reported $998.5 million in professional and special
services expenditures in 2024-2025. 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 2025, ESDC reported a total
of $998.5M in expenditures for professional and special services ($1.02B in
2024). 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 454.2M
Legal Services 19.9M
Scientific and Research Services 0.9M
Training and Educational Services 15.6M
Health and Welfare Services 7.5M
Protection Services 12.7M
Informatics Services 446.8M
Management Consulting 29.2M
Special Fees and Services 1.4M
Temporary Help Services 0.4M
Interpretation and Translation
Services 7.7M
Other Services 2.2M
Total 998.5M
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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 ($454.2M), 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 ($50.3M), for the Government Employees
Compensation Act ($62.6M), and with Public Services and Procurement Canada (PSPC)
for internal expenditures with regards to the National Accommodation Plan ($62.8M).
Under the informatics services category ($446.8M), $194M is for internal services
provided by Shared Services Canada (SSC) and $183.9M 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.

In volume III of the Public Accounts of Canada 2025, ESDC reported professional
and special services expenditures of $998.5 million ($1.02 billion in 2024), with the
most significant expenditures attributed to Business Services and Informatics
Services.