Question Period Note: Optimizing the Office Portfolio

Public Services and Procurement Canada will continue to provide sufficient, functional office space to accommodate federal public service employees while it optimizes the space under its responsibility and reduces operating costs.

• Reducing the size of our office portfolio will allow Public Services and Procurement Canada to reduce operating costs, lower greenhouse gas emissions and dispose of surplus properties for housing and other community needs
  • Public Services and Procurement Canada continues to work with other departments and agencies to reduce the portfolio while providing sufficient, functional office space to ensure the delivery of their respective mandates and services

If pressed on further office space reductions:

• Public Services and Procurement Canada is using innovative portfolio strategies and exploring incentive models to encourage tenant departments and agencies to optimize their office space
• Furthermore, in collaboration with key federal stakeholders, it is assessing various technologies to collect data on the use of office space by all federal tenants to make the fullest use of the office portfolio

If pressed on use of the Full-Service Workplace (Space as a Service) Contract – awarded to LAUFT:

• A contract was awarded to LAUFT in 2022 to test innovative, short-term, third party-managed office space to respond to evolving demand
• While the contract allowed for up to $13.8 million in spending on an as-and-when-required basis, their was no longer a continued need for the space and therefore the full value was not utilized
• Public Services and Procurement Canada respected all terms and conditions of the contract and the contract term of September 2022 to September 2025

Public Services and Procurement Canada (PSPC) continuously reviews its use of public funds to provide efficient work environments for federal public servants. The funding announced in Budget 2024 will enable PSPC to plan and undertake strategic workplace enhancements, support the transition to unassigned workstations, and facilitate decommissioning of certain workplaces and client moves into existing or new office space.

PSPC is responsible for making decisions about quality, quantity, and location of space, while also providing accommodation solutions that respond to federal public service employee requirements and ensure best value for money. We have already identified ways to optimize our leased and owned space, including by using shareable spaces and co-locating federal departments and agencies, and accelerating the disposal of surplus assets.

PSPC is currently working with federal departments and agencies to establish their long-term accommodation requirements. The ongoing reduction of the real property portfolio, which began during the pandemic, will continue over a period of 10 years.

The growth in the number of federal employees and the updated Directive on Prescribed Presence in the Workplace (3 to 4-day per week in office presence) has brought projected space savings down to approximately 33% over the ten-year period, with associated operations and maintenance savings of approximately $2.45 billion over this period.

PSPC works with Shared Services Canada to ensure that office spaces are equipped with the necessary tools for employees, including internet connectivity.

• Public Services and Procurement Canada’s office portfolio reduction plan initially launched in Spring 2024 is currently projected to achieve a reduction of 33% in floor area, with associated operations and maintenance savings of $2.45 billion over 10 years and an additional $514 million in annual recurring savings
  • Over 50% of Public Services and Procurement Canada’s office portfolio is within the National Capital Region, with the remaining distributed across all other regions of Canada
  • Budget 2024 proposed to provide Public Services and Procurement Canada with $1.1 billion over 10 years to reduce the office portfolio by 50% to convert underused federal offices into homes or community facilities