Question Period Note: Shared Services Canada Procurement

During the previous Parliament, Parliamentarians raised concerns about procurement practices at Shared Services Canada (SSC).

• In fulfilling its role to stabilize, maintain, and enhance digital capacity across government, Shared Services Canada ensures that supplied goods are of high quality, procured at the best value and provided in a timely fashion
  • SSC conducts fair, open and transparent procurement processes in compliance with domestic and international Trade Agreements and within the Government’s procurement policy framework
  • Whenever possible, SSC uses competition to get the best value for Canadians, and adheres to open government principles by proactively disclosing all contracts over $10,000
  • As government IT service delivery is modernized, the Government of Canada is making procurement more agile, collaborative and inclusive to promote social values, as well as environmental sustainability

If pressed on sole sourcing:

• Occasionally it is necessary for SSC to issue a non-competitive contract where equipment must be compatible with existing IT infrastructure, but such contracts are avoided wherever possible
• Shared Services Canada executed 2,451 procurements in fiscal year 2020-2021. Of these:
  • 79% were made through the use of open, fair and transparent competitive processes, for a total spend of roughly $795 million
• In fiscal year 2020-2021, 73% of contracts awarded by SSC went to Small and Medium Enterprises

Shared Services Canada (SSC) is mandated with providing services related to email, data centres, networks, and end-user information technologies to its mandatory and optional clients.

In all instances where bids are not solicited, the legal authority to use an exception to soliciting bids must be fully justified with a reference to the applicable exception to competitive bidding which may apply under the Government Contracts Regulations (GCRs).

With respect to procurements subject to one or more trade agreements, SSC may award a contract without soliciting bids, only if one or more of the limited tendering reasons stated in each applicable trade agreement can be applied.

SSC also considers the provisions under Comprehensive Land Claim Agreements (CLCAs).

While work is already in motion to modernize procurement so that it is more agile, collaborative and inclusive, there are significant opportunities to continue to ‘buy better’ and transform how IT procurement and service delivery is done within Canada:

Diversity and Inclusion

Establish an exemplary model for IT procurements and service delivery to drive fair and inclusive business practices in Canada, and level the playing field for SMEs as well as Indigenous and underrepresented groups, and vendors operating across Canada, including in rural and remote communities, and broaden participation in IT service design and delivery.

Greening Government Strategy

Send strong market signals that government is serious about protecting the environment, incentivize an accelerated transition to greening and circularity for the IT sector and beyond by setting ambitious greening targets and requirements, and take action to ensure new private sector accountabilities.

Innovation, Growth and Digital Enablement

Strategically establish SSC as a convener of IT innovators and service providers, a first-in-class adopter of emerging technology and IT infrastructure, and a catalyst for the digital enablement of all Canadians.

Total Contracts Awarded by SSC in fiscal year 2020-2021:

• Total number of contracts: 8,881
• Total value of contracts: $1.86B
• Number of contracts awarded Small and Medium Enterprises: 5,988
• Value of contracts awarded to Small and Medium Enterprises: $1.25B

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