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

When external resources are used by departments, Public Services and Procurement Canada works to ensure that contracts are structured consistently with value in mind.

• Public Services and Procurement Canada is continuously improving and modernizing its procurement practices and instruments for professional services
  • 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 implemented 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 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.

Public Services and Procurement Canada (PSPC) is currently developing a streamlined and simplified suite of mandatory methods of supply for the procurement of professional services. While work and consultations are underway, measures were introduced to strengthen contract management practices and ensure better value for money.

In July 2025, PSPC introduced strengthened measures to reinforce stewardship, accountability, and value for money in the procurement of professional services across the federal government. These measures respond directly to findings from parliamentary reviews, audits by the Office of the Auditor General, and reports from the Office of the Procurement Ombud.

Collectively, the measures are designed to ensure that professional services contracts are appropriately scoped, competitively awarded, and actively managed, with clearer expectations and stronger controls throughout the contract lifecycle. They limit the size, duration, and growth of task-based contracts; require greater scrutiny of pricing and amendments; strengthen invoice verification and performance oversight; and introduce additional senior-level approvals and reporting where risks are higher. At the same time, they support a gradual transition toward outcome-based contracting.

These measures ensure that when external resources are used, decisions are well documented, defensible, and demonstrably aligned with value for money.

In parallel, PSPC has undertaken extensive engagement with industry to inform the next phase of the transformation of professional services procurement. This has included a Request for Information and targeted one-on-one sessions with suppliers, the results of which will help shape future initiatives for fiscal year 2026 to 2027.

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 policy that triggers suspension or other corrective measures when a contract is terminated for default. PSPC is currently working on implementing this framework for professional services supply arrangements.

• Over the last three fiscal years (2023 to 2024 to 2025 to 2026), Public Services and Procurement Canada, as a common service provider, has awarded an average of 2,978 contracts and amendments annually for Professional Services, with a total value of approximately $2.2 billion dollars
  • In 2025 to 2026, Public Services and Procurement Canada, as a common service provider, awarded 2,507 contracts and amendments for professional services, with a total value of approximately $2.1 billion