Government of Canada HR and Pay Next Steps (EN920-190988/A)

Tender Notice


Publishing status
Days to closing
1 year 1 month hence


Publication date
Amendment date
Date closing
2020/08/24 14:00 Eastern Daylight Time (EDT)


Reference number
Solicitation number
Region of delivery
National Capital Region
Notice type
Notice of Proposed Procurement (NPP)
Trade agreement
  • Canada-Colombia Free Trade Agreement
  • Canada-Peru Free Trade Agreement (CPFTA)
  • North American Free Trade Agreement (NAFTA)
  • World Trade Organization-Agreement on Government Procurement (WTO-AGP)
  • Canada-Panama Free Trade Agreement
  • Canada-Korea Free Trade Agreement (CKFTA)
  • Canadian Free Trade Agreement (CFTA)
  • Comprehensive Economic and Trade Agreement (CETA)
Tendering procedure
All interested suppliers may submit a bid
Competitive procurement strategy
N/A - P&A/LOI Only
Procurement entity
Public Works and Government Services Canada
End user entity
Public Works and Government Services Canada

Contact Information

Contact name
Godard(681xe), Mario
Contact email
Contact phone
(613) 818-0360 ( )
Contact fax
(819) 956-2675
Contact address
Special Procurement Initiative Dir
Dir. des initiatives speciales
Terrasses de la Chaudière 4th Floor
10 Wellington Street

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Trade Agreement: CETA / WTO-AGP / NAFTA / CFTA / FTAs with Peru / Colombia / Panama / Korea
Tendering Procedures: All interested suppliers may submit a bid
Competitive Procurement Strategy: N/A - P&A/LOI Only
Comprehensive Land Claim Agreement: No
Nature of Requirements: 

Government of Canada HR and Pay Next Steps

Godard(681xe), Mario
Telephone No. - (613) 818-0360 (    )
Fax No. - (819) 956-2675 (    )

Notice of Proposed Procurement
Government of Canada HR and Pay Next Steps

IMPORTANT INFORMATION: To facilitate search for industry all future postings related to Stabilizing Phoenix innovations and the Next Generation solution will include "HRP-RHP" in the title.  Please note that vendors can subscribe to tender notice updates (RSS, ATOM, e-mail) using the keyword "HRP-RHP". 


Canadas public servants deserve to be paid properly and on time for their important work. Stabilizing the Government of Canadas (GoC) current pay system (Phoenix) remains a top priority and continues to be carried out by Public Services and Procurement Canada (PSPC) and Treasury Board of Canada Secretariat (TBS) integrated team.  While recent information indicates the current pay system is showing some signs of stabilizing, a longer-term, sustainable, end-to-end solution needs to be explored for an HR and pay solution.

As outlined in Budget 2018, in addition to Stabilizing Phoenix, the GoC is committing to the next steps in addressing the ongoing challenges of the Phoenix pay system, including its intention to move to a next generation solution; one that will be better aligned with the complexity of the federal governments HR and pay structure.  The Phoenix issues have shown that HR and pay are mutually dependent and don't exist in isolation.  The next generation solution may therefore also support the full hire-to-retire employee lifecycle, enabling the GoC to better attract, pay, retain and nurture its employees.  This solution may cover aspects such as: recruitment, training, performance management and other HR processes and systems, and interdependencies with pay, and any other downstream systems like pension and receiver general.

The GoC is committed to exploring all options, and will be working with experts, unions, public servants, and technology providers to address the current pay challenges as well as define the way forward.  In particular, we are committed to working in partnership with our bargaining agents and system users at the centre of this process.  The GoC will consider the lessons learned and best practices from the implementation of large-scale initiatives from other jurisdictions.  Stabilization efforts are absolutely critical and will continue as the GoC works towards options for this Next Generation HR and pay solution.

The following information therefore relates to two distinct projects currently identified as priorities for the GoC:

1. Stabilization of the Phoenix pay system and related pay activities led by PSPC, through collaboration with the integrated team;
2. Next Generation HR and pay solution (people, technology, and processes)  led by TBS on behalf of the GoC. 

A. Nature of Requirement
The GoC is calling on private sector vendors to provide information and potential solutions to a variety of Enterprise-wide business challenges and needs associated with both stabilization and a Next Generation HR and Pay solution.

This Notice:

 Communicates that the GoC may establish pre-qualified lists of suppliers to address HR and Pay challenges; and
 Identifies categories for which the GoC may be seeking information and potential solution proposals.

The following describes areas of work that the GoC will be seeking information and proposals.  This list may evolve with amendments, additions, or deletions.

1) Stabilization: 

a. Lowering the Queue/Backlog: The GoC is seeking innovative approaches to processing outstanding pay-related tickets in order to accelerate the close-rate.

b. Training: The GoC is seeking training solutions to rapidly develop and deploy new training materials, deliver training products, and measure the effectiveness of the training. The solution should have the ability to assess how the training materials contribute to improved user productivity. 

c. Automation of Pay Centre Processes: Serving over 200,000 clients, the Pay Centre in Miramichi receives approximately 1.3 million requests for service annually.  Many of these requests result in compensation agents at the Pay Centre having to perform some level of manual processing to complete the transaction. The GoC is seeking innovative approaches and solutions to automate some of these manual transactions, which can also be extended to pay processing in other Departments and Agencies.

d. Improving User Experience: A number of studies have identified that the usability of pay systems and processes needs to improve. Users, and particularly employees and managers, are experiencing a sense of powerlessness and frustration because interactions related to pay are spread across multiple channels, do not always provide requested information and are not sufficiently responsive. Canada is seeking innovative approaches to improve the user experience.

e. Automation of System User Access Management: Current user-access management processes are paper-based causing delays to employees access to HR and Pay systems.  The GoC is seeking assistance to automate these processes in the current Phoenix pay system, while retaining necessary controls.

f. HR Processes: The design of the Phoenix system requires that data be fed from HR systems into the Phoenix system or directly entered into Phoenix by compensation advisors. The various HR Systems interfacing with the Phoenix Pay System have different architectures and different front end system edits which have a direct influence on the quality of the HR data being transmitted to Phoenix and ultimately on the pay cheque of employees. Over the course of the last two years while operating the new Phoenix payroll system and the new consolidated compensation process operation, the Government of Canada has identified HR Process Transformation as an area that requires strengthening in order to stabilize and subsequently optimize its HR-to-Pay process. Canada is seeking innovative approaches to effectively and efficiently perform HR functions that have led to positive downstream payroll implications and will directly contribute to system stabilization.  
2) Next Generation HR and Pay Solution:

a. Discovery and Design Thinking: The GoC continues to learn and adopt leading human-centered design & service design best practices that can shape the vision and inform decisions across all aspects of the project (people, technology, processes).  The GoC may seek expert assistance in conducting user research and engaging GoC employees, HR practitioners, compensation advisors and/or unions to further understand who the users are, what are their goals and expectations, and how the new service should meet those needs.

b. Digital Business Optimization and Architecture: As employee and citizen expectations rise and businesses deliver digital-based and better services across all industry sectors, the GoC recognizes the need to rethink the way it works. The GoC may seek expert assistance in conducting an end-to-end review of business capabilities, business outcomes, business requirements and business processes, potentially resulting in improvements to service models and pay operations, improved training, reporting, interactions, etc. 

c. Innovative technology solutions: As digital concepts are releasing more personalized employee, supplier, and partner experiences through the use of mobility, self-service, cloud, in-memory databases, embedded analytics, etc., GoC employees expect and demand that innovation be also reflected in their interactions with government so that GoC employees can take full advantage.  Consequently, the GoC may seek expert assistance to evaluate and fully utilize innovative solutions, industry best practices and technological advancements are embedded into the GoCs future.

d. Change Management: The GoC recognizes that change management should be a priority throughout the life of any high risk, complex transformation initiative and is fundamental to ensure business outcomes are met. The GoC may seek expert assistance to ensure individuals, teams, and organizations are prepared and supported to successfully execute the organizational change.

e. Program Management & Capacity: The GoC recognizes that oversight and strategic direction is critical to ensure the desired outcomes are reached and benefits realized. The GoC may seek a strategic partnership(s) to supplement the Next Generation Project teams capacity to plan for transformation to digital services and platforms based on their understanding of industry best practices, methodologies, implementation strategies, etc. Any strategic partner(s) would not be allowed to bid on the future business, technology, or implementation services related to any Next Generation HR and Pay solution.

In all applicable areas above, the GoC requires all solutions to be accessible by default, include security and privacy by design, and leverage the use of cloud services first (in alignment with the Policy on Management of IT, secured in accordance with the Direction on the Secure Use of Commercial Cloud Services).

Please note GoC pay stabilization efforts have been ongoing since 2016, and GoC Next Generation HR and Pay solution efforts started earlier in 2018.  Therefore some private sector vendors have already been engaged and some standing procurement vehicles are already in place, which have helped the GoC begin work in some of the categories highlighted above.  Existing vehicles will continue to be leveraged as appropriate, and any information gathered to date will serve as foundational as the GoC looks to address, as required, all of the areas outlined in this notice.

B. Context

The Pay Modernization Project replaced the Regional Pay System with a PeopleSoft based payroll system, an application that eventually came to be called Phoenix.  Since pay crisis emerged in spring 2016, it has been obvious that the outcomes have been unacceptable for both the Government and its employees.

The Pay Consolidation Project consolidated the compensation function, which resided within each GoC department and agency, under PSPC and included the location in Miramichi, New Brunswick.  Today, 44 departments representing approximately 200,000 civil servants are provided with compensation services based out of the Miramichi Pay Centre. 

The GoC has worked with its own subject matter experts and suppliers alike to deploy improvements to ensure employees are paid accurately and on time. 

Since pay crisis emerged in spring 2016, the on-going difficulties with the implementation of the pay system triggered a decision, as documented in Budget 2018, to begin investigating the development of the next generation of the federal governments HR and pay systems. 

C. Procurement Framework 

As part of its effort to streamline the procurement process and improve business outcomes, with a focus on agility and dialogue with interested vendors, the GoC plans to engage industry as follows.

1. The GoC recognizes the diversity of industry, which may range from vertically integrated vendors, start-ups, and long established corporate entities. 
2. The purpose of the proposed procurement is to allow the Government of Canada, as an enterprise, to rapidly access, pre-qualified suppliers that can provide innovative solutions to a variety of business challenges  Canada may put forth relating to all aspects of the HR-to-Pay environment and its related services.
3. Any proposed procurement will be processed through the PSPC or TBS procurement authority potentially using a wide range of procurement tools.
4. As an initial step, the GoC anticipates sharing more information on the problem to be solved and solicit information from industry with the intention of using the feedback to determine how to best proceed and use the various procurement options the GoC has at its disposal.  
5. The GoC will work with suppliers in a collaborative fashion to the greatest extent possible and an iterative approach may be used to incorporate feedback from both stakeholders and industry. As such, the GoC also intends to qualify firms in various workstreams which would subsequently be invited to compete either in an expedited way or through an agile iterative approach.
6. As part of the collaborative process, suppliers must be prepared to offer a sandbox environment to the GoC at no charge to demonstrate functionality and facilitate evaluation.

7. The GoC may employ a variety of procurement tools to solicit industry response to this Notice.  Canada anticipates that it may use Requests for Information (RFI), Letters of Interest (LOI), Invitations to Qualify (ITQ), Requests for Proposals (RFP), Requests for Supply Arrangement (RFSA) and\or other methods to meet its needs.
8. Suppliers should be aware that initiating a business solution in response to a procurement request may not result in the solution being selected for implementation.
9. The GoC remains open to solutions put forth both internally by its own subject matter experts and externally from innovators that may complement work already undertaken or planned.

D. Approach and Timelines 

As part of its effort to streamline the procurement process and reduce dwell times along the procurement continuum with a focus on agility and dialogues with interested vendors, the GoC plans to engage industry as follows:

1. Start publishing RFIs on in September 2018, outlining specific business problems and to establish lists of qualified suppliers to address HR-to-Pay issues. 
2. Industry consultation(s) as required (industry day and/or one-on-one meetings).
3. Establish a list of pre-qualified suppliers via RFSA or ITQ or other processes such as an iterative agile procurement (fall 2018).
4. Compete amongst pre-qualified suppliers (if required) (starting fall 2018).
5. Award contract(s) as deemed appropriate.
6. Periodic refresh of qualified supplier lists and/or refresh the list of workstreams.

The exact approach and timelines may vary per workstream (business challenge and service requested).

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E. Enquiries

All enquiries and any other communications related to this Notice should be directed to the Contracting Authority indicated in the Notice at the following email address:

Delivery Date: Above-mentioned

The Crown retains the right to negotiate with suppliers on any procurement.

Documents may be submitted in either official language of Canada.

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Solicitation Documents

FileAmendment numberLanguageUnique Download Event (English page)Date added
ABES.PROD.PW__XE.B681.E33763.EBSU000.PDF000English- 2018-09-14
ABES.PROD.PW__XE.B681.F33763.EBSU000.PDF000French- 2018-09-14
ABES.PROD.PW__XE.B681.E33763.EBSU001.PDF001English- 2018-10-10
ABES.PROD.PW__XE.B681.F33763.EBSU001.PDF001French- 2018-10-10

Related Tender Notices

Related Award Notices

Title of Related Award Notice Value of Related Award Notice End User Entity Contract award date
"HRP-RHP" - RFP - Robotic Process Automation (EN920-190988/002/XE) CAD 107 350.00 Public Works and Government Services Canada 2019/03/05
"HRP-RHP" - RFP - Robotic Process Automation (EN920-190988/001/XE) CAD 107 350.00 Public Works and Government Services Canada 2019/03/05
HRP-RHP Stream 3 - Lowering the Queue RFP (EN920-190988/004/XE) CAD 145 247.38 Public Works and Government Services Canada 2019/05/28
HRP-RHP Stream 3 - Lowering the Queue RFP (EN920-190988/003/XE) CAD 203 400.00 Public Works and Government Services Canada 2019/05/28

Related Contract History