Question Period Note: RIGHT OF FIRST REFUSAL POLICY

• The Government of Canada is committed to the successful transition of Veterans from military to civilian life. This includes Veteran employment, a key factor in the overall well-being of Veterans and their families.
• The Right of First Refusal Policy has been providing employment opportunities for Veterans for over 75 years.
• It is a procurement preference that requires federal government departments to request guard services from the Corps of Commissionaires (the Corps) before seeking services from other security guard suppliers.
• On April 1, 2023, VAC implemented the Policy on Procurement of Guard Services to continue the RFR until March 31, 2026.
• During this three-year period, VAC has been re-assessing the policy and its requirements, engaging with stakeholders, and evaluating the RFR’s continued relevance in supporting Veteran employment.

Original Policy
The Right of First Refusal (RFR) Policy was established in 1945 to provide employment opportunities for Veterans while also meeting the security needs of Government.
Initially, the RFR was the responsibility of the Treasury Board Secretariat (TBS) under the Common Services Policy with administrative responsibilities under the Financial Administration Act.
This policy was rescinded and archived on March 31, 2023.
Current Policy
In February 2023, Treasury Board delegated to the Deputy Minister of Veterans Affairs Canada, the authority under the Financial Administration Act to issue, administer, amend, or rescind an administrative policy to implement the RFR from April 1, 2023 to March 31, 2026.
The current RFR Policy is being implemented in the same manner it has been implemented historically with VAC now responsible for its administration. There is a requirement that VAC request a corrective action plan from the Corps to explain how progress will be made towards improving performance as it relates to Veteran hours worked. This has resulted in the Corps submitting a “Sustainable Employment for Veterans” report in October 2024 to outline the role the Corps plays in supporting Veterans as well as the challenges and issues being faced in the current employment landscape. Although the report outlines various steps the Corps is taking to overcome these challenges, it confirms that the number of Veterans working under the RFR is well below the 60% Veteran-worked hours requirement.
As the Government of Canada’s central purchaser, Public Services and Procurement Canada (PSPC) continues to be responsible for contracting guard services on behalf of federal organizations in accordance with the requirements of the RFR.
In 2024, VAC launched the National Veteran Employment Strategy (NVES) which is designed to address existing gaps and leverage opportunities that may exist for new and improved supports for Veterans.

QUICK FACTS & FIGURES
Cost
• The Government of Canada spends approximately $350M annually through RFR contracts with the Corps.
Policy Requirement for Veteran-worked hours
• The RFR Policy requires that:
o a minimum of 60% of all hours worked under RFR contracts in each fiscal year are to be worked by Veterans;
o the Corps provide Public Services and Procurement Canada (PSPC) with reports on its performance as it relates to Government contracts; and
o VAC request a corrective action plan from the Corps if in non-compliance with the 60% requirement for Veteran-worked hours.
Challenges meeting the 60%
• Since 2013/14, the Corps has not been meeting the 60% Veteran-worked hours requirement.
• Despite attempts to improve performance in this regard, the percentage of Veteran-worked hours continues to decline and is currently at 27% nationally.
• Approximately 4,200 Veterans are currently working in various positions within the organization (according to the latest report provided by the Corps, 3,181 are working as guards under RFR contracts).