Question Period Note: Outsourcing of Contracts

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About

Reference number:
PSPC-2022-QP-00061
Date received:
Nov 15, 2022
Organization:
Public Services and Procurement Canada
Name of Minister:
Jaczek, Helena (Hon.)
Title of Minister:
Minister of Public Services and Procurement

Issue/Question:

There has been recent media attention on federal government spending on outsourcing contracts, noting a 40% increase between fiscal year 2015-16 and 2020-21. 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 (OGGO) 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 requirements
    • The decision to make-or-buy, which is often referred to as outsourcing, is made by departments and agencies for several reasons, including to access specialized skills or knowledge. When PSPC contract for goods and services it is overwhelmingly for work that cannot and has not been traditionally carried out by public servants, such as shipbuilding, construction and renovation work

If pressed on reasons for outsourcing 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 2020-21 increased by 40% when compared to fiscal year 2015-16. This came from information publicly available in the Public Accounts of Canada, tabled in the House of Commons on December 14, 2021.

In Fall 2022, the Standing Committee on Government Operations and Estimates (OGGO) launched a study on outsourcing of contracts.

Additional Information:

None