Good afternoon, and thank you for the opportunity to discuss PSPC's main estimates for fiscal year 2024-25.

Before we begin, I would like to acknowledge that we are meeting on the traditional unceded territories of the Anishinabe Algonquin people.

Today I'm joined by Associate Deputy Minister Alex Benay, Assistant Deputy Minister Simon Page, Assistant Deputy Minister Catherine Poulin, Assistant Deputy Minister Dominic Laporte and Chief Financial Officer Wojo Zielonka.

Mr. Chair, PSPC has a wide-ranging mandate related to government procurements, managing government buildings, administering pay and pensions for the public service and more. In order to support these activities, PSPC is requesting a net amount of $4.8 billion through these estimates. This is a net increase of $449 million from the previous year.

The majority of that amount, more than $3.3 billion, will be spent on property and infrastructure activities, including major rehabilitation projects across the country. The amount of $767.9 million is for payments and accounting initiatives, which include supporting the Government of Canada's pay administration program. PSPC remains dedicated to achieving pay stabilization and eliminating the backlog of pay issues. Also, as this committee has heard, we are making progress on the next-generation human resources and pay system.

Mr. Chair, $181.7 million is being sought for the running of important procurements. This includes our work with key partners advancing the national shipbuilding strategy and other key defence procurements.

It also includes our continued work to modernize the federal procurement system with a focus on increasing the participation of small and medium-sized businesses as well as suppliers from under-represented groups, including indigenous businesses. The current focus is to ensure that 5% of the value of federal contracts is awarded to indigenous businesses. Indigenous Services Canada is the federal department responsible for procurement strategy for indigenous businesses and has determined that the government on the whole is exceeding the target.

Furthermore, PSPC is looking for ways to increase the discipline exercised in federal procurement, particularly as regards professional services. As you know, PSPC relies on its product expertise and qualified personnel in managing more complex and riskier procurement projects.

PSPC also introduces procurement mechanisms and strategies across government that help departments make efficiency gains.

We've made many improvements to our processes and procedures by relying on the recent reports of the procurement ombud and the Auditor General, as well as our own internal reviews, particularly with regard to record-keeping and the transparency exercised out of a concern to strengthen process controls.

A new entity, the Office of Supplier Integrity and Compliance, began operations on May 31. Thanks to it, we can now respond more effectively to cases of supplier misconduct and unethical behaviour.

As for fraud detection, PSPC continues to improve its tools, which include data analysis, and to expand the ways in which it uses them. As mentioned, we have previously referred many fraudulent overbilling cases from 2022, 2023 and 2024 to the RCMP, and other internal investigations are under way.

Although those investigations are still open, I can assure you that, depending on what they reveal, those cases will also be referred to the RCMP where appropriate.

Going back to main estimates, I would also like to note, as part of the refocusing of government spending initiatives for this fiscal year, that the planned spending reduction for PSPC will be $148.2 million.

Mr. Chair, the department has many other priorities stemming from budget 2024. That includes leading on the new public lands for homes plan, for which the department is now working out the details.

Budget 2024 also featured proposed funds to support Laboratories Canada and parliamentary precinct projects as well as new funds to move forward on a new pay and HR system and to expand the translation bureau's capacity.

Mr. Chair, we're pleased to answer your questions about the work under way at PSPC and our main estimates.

Thank you.