Question Period Note: Outsourcing of professional services

Public Services and Procurement Canada’s spending on professional services contracts.

• Public Services and Procurement Canada continuously improves and modernizes its procurement practices and instruments in the area of professional services to ensure that they maximize value for money and that appropriate controls are in place

  • The decision to hire public servants or to pursue professional services contracts is made by departments and agencies based on multiple factors such as expertise needed, defined time, cost, etc.

  • The vast majority of Public Services and Procurement Canada contracts for goods and services are for work that cannot and has not traditionally been carried out by public servants

  • The Department continues to explore ways to reduce its reliance on professional services, including by using traditional and innovative human resourcing to meet short-term needs

The Office of the Procurement Ombud (OPO) and the Office of the Auditor General (OAG) tabled audit reports on January 29, 2024, and February 12, 2024, respectively. The reports highlight serious concerns regarding project management and offer recommendations pertaining to procurement, specifically professional services.

Prior to the release of these reports, Public Services and Procurement Canada (PSPC) had already been taking action to strengthen existing controls around the administration of professional services contracts. On November 28, 2023, other government departments and agencies were informed of new measures, introducing a common set of principles and mandatory procedures that clients must abide by to use PSPC’s professional services contracting instruments. Public Services and Procurement Canada is also putting in place, as of July 1, 2025, strengthened conditions for the use of its methods of supply for professional services.

These changes closely align with the recommendations made by the OAG and OPO, and are echoed in the resultant management action plans to which PSPC committed.

On October 5, 2023, the Treasury Board of Canada Secretariat published guidance about the use of contracted professional services. The Manager’s Guide: Key Considerations when Procuring Professional Services helps managers determine when to contract for professional services versus when to use internal resources. The Guide also lays out practical considerations for managers when structuring contracts so that they deliver best possible value, can be effectively managed, and fully align with requirements of Treasury Board’s Directive on the Management of Procurement, which was also updated, in June 2024, to incorporate some of the elements of the Guide as mandatory procedures. The new Mandatory Procedures for Business Owners When Procuring Professional Services seek to strike a balance between reinforcing the accountabilities of business owners without creating undue barriers to the delivery of programs and services to Canadians.

The Notice of Action filed by the Department of Justice in the Ontario Superior Court of Justice on February 7, 2025, targets several prime contractors who have not agreed to repay the Government of Canada, along with the subcontractors they engaged.

The Notice of Action seeks approximately $1.6 million from the defendants. This includes the original outstanding amounts owed to Canada ($1.3 million), as well as other costs (approximately $300,000). This also includes $198,000 being sought from GCStrategies.

When work cannot be performed in house, PSPC seeks professional services. These services provide specialized expertise, where necessary, to meet unexpected fluctuations in workload and to complement the work of the public service. In addition, time-limited projects, shortages in certain employment groups and shortages in certain geographic locations may also require the use of professional services.

Over the past decade, government expenditures on professional services have remained consistent, relative to both total government expenditures, and the total payroll for public servants. PSPC takes allegations of wrongdoing and fraudulent activity seriously and has taken action to strengthen measures and enhance oversight for professional services contracts at all stages of the procurement process.

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