Moving Forward: SSC ICT Sector Engagement Process

Context Following a series of consultations with associations in the information and communications technology (ICT) sector, Shared Services Canada (SSC) has identified five possible areas for further work. SSC believes that these areas of work will help the department achieve its transformation objectives for the Government of Canada’s information technology (IT) infrastructure, while also addressing items of interest from an ICT sector perspective. SSC wants to ensure that it develops a long term relationship with the ICT sector that is substantive and sustainable. Clear outcomes for some of these areas of work have been proposed. In other cases, SSC needs to further explore how to best move forward. SSC has sought feedback from all associations that participated in the consultation process on these areas of work and the proposed approach for moving forward has been endorsed. SSC has received preliminary feedback from other government departments on the discussions that it held with associations. The input from associations is consistent with the type of commentary that other departments have heard from the ICT sector in recent years. SSC’s discussions with associations represent a specific point in time and do not necessarily reflect steps that have been taken in other departments to address process gaps or other problem areas. In particular, PWGSC feels that there may be a lag between some association views and initiatives that PWGSC has recently introduced to improve the procurement process. SSC will continue to be driven by its guiding principles (see below) that were developed at the outset of this engagement process. • Fairness, transparency, inclusiveness and integrity are the foundation of our value

system. • Market-based competition is the best vehicle to deliver the most efficient, effective

and highest value solutions. • The current federal government policy framework governs our execution. • Portfolio and individual project risk will be managed at all times. • Our horizon is biased towards the future. • Leading edge innovation will be an important determinant in assessing alternative

solutions.

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Areas of Work A. IT Infrastructure Roundtable An early, open and ongoing consultation between the Government of Canada and the ICT sector has been identified as key to a “win-win” relationship. Historically, the Government of Canada has tended to engage industry after decisions were made. However, meaningful consultations and open dialogue have shown to be more effective if they occur early in the process in order to affect or influence an outcome. SSC places a high premium on outside advice as a touchstone for validating approaches and providing guidance on complex issues. SSC also needs to be able to keep pace with the best industry solutions while achieving value for money, sound stewardship, innovation and service excellence. Trying to strike that balance and deliver through new and different sourcing approaches can be challenging. To support ongoing substantive consultation, SSC will establish a quarterly mechanism for dialogue with the ICT sector – the IT Infrastructure Roundtable (ITIR). Leading technology innovators will form an important component of ITIR’s membership. The purpose of this consultative body will be to discuss the long term IT transformation agenda for the Government of Canada; emerging technologies in the marketplace; first use technologies; provide progress reports on other key initiatives within government (e.g., Canadian Innovation Commercialization Program); and future directions for innovation. B. Government of Canada Architecture Framework SSC agrees with the feedback from the ICT sector that reference architectures are a best practice tool in managing technology diversity while promoting interoperability, standardization and cost management. Additionally, SSC in cooperation with its government partners (Communications Security Establishment Canada and Treasury Board of Canada Secretariat), needs a modern information security architecture to underpin our forward work on cyber security. Moving forward, SSC proposes to work with the sector, and in partnership with the Treasury Board of Canada Secretariat, to establish a Government of Canada Architecture Framework with layered domains for security, data, applications and technologies (e.g., platforms, networks and middleware). The Framework would be reviewed annually and its inaugural publication would be targeted for April 2013. The specific vehicle to accomplish this work could take the form of a Government of Canada / ICT sector working group that would: a. identify best practices in establishing and adopting reference architectures and

standards in the ICT industry in Canada while encouraging compliance; and

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b. identify and encourage adoption of technical standards, as well as the appropriate use and development of product-based reference architectures that support standardization and interoperability while simultaneously encouraging innovation and competition.

It will be important to strike the right balance in the development of a Government of Canada Architecture Framework. The Framework will need to have sufficient precision to be a useful reference tool while not unintentionally limiting innovative solutions as a result of being overly prescriptive. C. Supporting Innovative Canadian Enterprises SSC has a keen interest in spurring innovation so that it can access the best technologies available to meet its transformation needs while ensuring value for money and service excellence. In particular, SSC would like to create a forum to further examine the procurement limitations faced by Canadian ICT companies developing intellectual property. SSC believes that the significance of the economic value that is created as a result of these solutions has not always been well understood within government. As a new federal organization with a mandate in the IT field, SSC has a unique opportunity to lead a dialogue on supporting Canadian enterprises, and in particular small and medium-sized enterprises (SMEs). However, there are other measures within the Government of Canada that will also contribute to addressing these issues. Economic Action Plan 2012 announced a number of initiatives in support of innovation. • Support innovation through procurement by connecting SMEs with federal

departments and agencies to build their capacity to compete in the marketplace. • Refocus the National Research Council on demand-driven business oriented

research that will help Canadian businesses develop innovative products and services.

• Further explore recommendations from the Jenkins Expert Panel, in particular options to consolidate the suite of programs that supports business innovation to make it easier for businesses to access government support and improve efficiency.

• An additional $95 million over three years, starting in 2013–14, and $40 million per year thereafter to make the Canadian Innovation Commercialization Program permanent and to add a military procurement component.

SSC proposes to work with its federal counterparts to explore possible models for advancing a dialogue on the procurement limitations faced by Canadian ICT companies developing intellectual property.

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D. Procurement Benchmarks SSC agrees that there is room for improvement with respect to the execution of government-wide procurement and that business outcomes need to drive procurement activity. SSC will adopt best practices with respect to focusing on outcomes and avoiding over-prescriptive specifications, as well as fairness monitors for large Request for Proposals’. Timely and effective procurement processes are a critical component of SSC’s transformation journey and are also important to the ICT sector. Lengthy, protracted and litigious process is costly and harmful for both business and government. SSC will consider adopting a performance benchmark which stipulates that all procurements need to be completed in a given period of time (e.g., less than twelve months). In cases where a contracting process is likely to exceed the twelve month period, the cause for delay will be examined and SSC will cancel the process if the cause cannot be addressed and the contract awarded in reasonable timeframes. As it moves forward, SSC will explore other potential performance benchmarks for procurement to ensure it is less costly and faster for all parties. E. “Right” Sourcing As part of its ICT sector consultations, SSC asked for feedback on sourcing models. SSC agrees that it will be important to articulate the department’s views on “right” sourcing for the Government of Canada’s IT infrastructure services. By April 2013, SSC commits that it will provide declarative statements on the sourcing models it will pursue for email, data centres and telecommunications. Specifically, the department will outline the components of its IT infrastructure services that could potentially be considered for outsourcing and will also outline those components that will be managed directly within the Government of Canada. SSC believes that this type of information will help the ICT sector to better position itself and plan for potential opportunities to work with the department. This approach also provides SSC with the ability to better work with its current employees and those of the future.