PACP Committee Report

GOVERNMENT RESPONSE TO THE FIFTH REPORT OF THE STANDING COMMITTEE ON PUBLIC ACCOUNTS:  CHAPTER 1, SAFEGUARDING GOVERNMENT INFORMATION AND ASSETS IN CONTRACTING OF THE OCTOBER 2007 REPORT OF THE AUDITOR GENERAL OF CANADA.

The Government of Canada is pleased to table its response to the Fifth Report of the Standing Committee on Public Accounts, “Chapter 1, Safeguarding Government Information and Assets in Contracting of the October 2007 Report of the Auditor General of Canada” that was tabled in the House of Commons on April 14, 2010.

The Standing Committee on Public Accounts considered Chapter 1 of the Auditor General’s October 2007 Report and heard testimony from senior officials of the Office of the Auditor General (OAG), Public Works and Government Services Canada (PWGSC), Treasury Board of Canada Secretariat (TBS), Department of National Defence (DND) and Defence Construction Canada (DCC).  The Fifth Report of the Standing Committee reflects its consideration of all recommendations and observations noted in the chapter and subsequent testimony.

The Government of Canada thanks the Standing Committee on Public Accounts for its Fifth Report and welcomes its continuing interest in strengthening industrial security and the safeguarding of government information and assets in contracting.  This document provides the Government Response to each of the four recommendations from the Fifth Report.  The Government agrees with all four recommendations made by the Committee and this Response demonstrates that the Government has acted and continues to act on these recommendations.

TBS, PWGSC, DND, RCMP and DCC developed robust action plans and took immediate action to address the ten recommendations outlined in the Report of the Auditor General and in many cases also addressed observations made in the Report.  Addressing the recommendations of the Standing Committee further strengthens the Government’s commitment to security.

Recommendation 1

That the Treasury Board Secretariat provide the Public Accounts Committee with consolidated results of the next Management Accountability Framework assessment of departments’ and agencies’ compliance with security requirements.

TBS will provide the Public Accounts Committee a report of the consolidated results from the last two rounds (i.e., V and VI) of the Management Accountability Framework assessments for Area of Management 19 (Security and Business Continuity) at the earliest opportunity once Parliament resumes.  The results of Round VII will be provided to the Committee when they become available.

Recommendation 2

That the Treasury Board approve stable, long-term funding to Public Works and Government Services Canada’s Industrial Security Program to enable it to meet its objectives.

TBS and PWGSC officials have been working closely to ensure that stable, long-term funding be made available for the individual components of the Industrial Security Program (ISP).  The Government is providing ongoing funding to support the ISP’s international contract security and controlled goods activities beginning in 2010-11.  Starting in 2011-12 and onwards, PWGSC will introduce a full cost-recovery regime. The ISP will charge federal departments for Canadian contract security services provided by the ISP in support of their contracts with security requirements.

Recommendation 3

That Public Works and Government Services Canada and the Treasury Board Secretariat review whether all contracts with a requirement of “secret” level of security or higher should be processed by the Industrial Security Program, and report to the Public Accounts Committee by 31 August 2010 on the results of this review.

TBS and PWGSC accept this recommendation and have commenced a review to examine whether all contracts with a requirement of “secret” level of security or higher should be processed by the ISP.  TBS and PWGSC will report on the status of this review to the Public Accounts Committee at the earliest opportunity once Parliament resumes.

Recommendation 4

That the Department of National Defence undertake thorough assessments of security issues that take into account a building’s future use before constructing new facilities.

The Department of National Defence accepts this recommendation.  Indeed, the Department recognizes the importance of ensuring that appropriate security practices for contracting are well communicated, clearly understood and followed consistently.  National Defence developed a new departmental standard on The Identification and Communication of Security Requirements for Realty Projects.  This standard includes the use of Security Requirements Checklists for the construction of future buildings and/or renovations that specifically directs Project Authorities to consider the future use of a building as part of the security assessment for contracting.  It also establishes the Project Authority’s responsibility for identifying and communicating the security requirements through the Checklist process.

This new departmental standard has been integrated into the Department’s security policy, through the Defence Security Manual.  Chapters 2 and 3 of this manual, Contracts and Security Requirements Checklist and Security of Defence Projects and Industry, have been amended and circulated widely within the Department of National Defence and the Canadian Forces.

In addition, to ensure that these new standards and practices are followed, National Defence will randomly select contracts on an ongoing basis to audit.