Question Period Note: Continuous improvement of the procurement of professional services

Public Services and Procurement Canada is working to ensure that when external resources are used by departments, that the contracts are structured consistently with value in mind.

• Public Services and Procurement Canada works to continuously improve and modernize its procurement practices and instruments
  • The decision to hire public servants or to pursue professional services contracts is made by departments and agencies based on factors such as the availability of specialized expertise in-house, unexpected fluctuations in workload, time-limited projects, and shortages in certain employment groups
  • In July 2025, Public Services and Procurement Canada put in place measures to shift professional services procurement toward outcome-based contracting, to limit the value and duration of time-based professional services contracts and to introduce a new Vendor Performance Management program

Parliamentary inquiries, audits of the Office of the Auditor General and reviews of the Office of the Procurement Ombud on federal government spending on professional services contracts have generated negative media attention and have raised concerns about taxpayer dollars that are spent on professional services.

The Treasury Board Secretariat’s Directive on the Management of Procurement requires that business owners carefully consider and document alternative approaches before initiating a procurement for professional services. The Manager’s Guide: Key Considerations when Procuring Professional Services was published in October 2023 to support managers in fulfilling their responsibilities.

PSPC is currently developing streamlined and simplified suite of mandatory methods of supply for the procurement of professional services. While work and consultations are underway, ten measures are being implemented to strengthen contract management practices and ensure better value for money:

Framing the use of task-based procurement vehicles to shift practices towards solutions

• Measure 1: Value cap on Task-Based Informatics Professional Services and Task and Solutions Professional Services - Task Contracts
• Measure 2: Duration cap on Task-Based Informatics Professional Services and Task and Solutions Professional Services - Task Contracts
• Measure 3: Amendment cap on Task-Based Informatics Professional Services and Task and Solutions Professional Services - Task Contracts

Getting the best value from the private sector

• Measure 4: Restrictions on the use of subcontracted resources (this measure will be in effect at a future date)
• Measure 5: Mandatory value for money assessment for all Requests for Proposals with a time-based basis of payment
• Measure 6: Vendor Performance Management added to Supply Arrangements and resulting Requests for Proposals where Public Services and Procurement Canada is the Contracting Authority (this measure will be in effect at a future date)

Improved contract management

• Measure 7: Strengthened due diligence around invoices and timesheets
• Measure 8: Mitigating risks of employer-employee relationships and ensuring tasks and deliverables are specific

Heightened accountabilities for business owners

• Measure 9: Approval by Business Owner Assistant Deputy Minister of all non-competitive contracts, including extensions outside of competed options and for Task-Based Informatics Professional Services Requests for Proposals that result in only one company meeting the requirements
• Measure 10: Client departments to file a quarterly report on their use of mandatory Methods of Supply

On September 2, 2025, PSPC implemented a new Vendor Performance Management framework to assess vendor performance and use past performance information in awarding contracts. This new framework complements the existing Vendor Performance and Corrective Measures (VPCM) policy that triggers suspension or other corrective measures when a contract is terminated for default. PSPC is currently working on implementing this framework for the professional services supply arrangements.

• Over the last three fiscal years (2022-23 to 2024-25), Public Services and Procurement Canada, as a common service provider, has awarded an average of 3,070 contracts and amendments annually for Professional Services, with a total value of approximately $2.8 billion
  • As of November 1, 2025, Public Services and Procurement Canada, as a common service provider, has awarded 1,298 contracts and amendments this fiscal year for professional services, with a total value of approximately $1.2 billion