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

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Tender Notice - Notice of Proposed Procurement (NPP)


Days until closing
4 months 1 week hence


Publication date
Amendment date
Date closing
2021/03/31 14:00 Eastern Daylight Time (EDT)


Region of delivery
  • National Capital Region
End user entity
Public Works and Government Services Canada
Procurement entity
Public Works and Government Services Canada
Tendering procedure
All interested suppliers may submit a bid
Competitive procurement strategy
N/A - P&A/LOI Only
Reference number
Solicitation number


Trade Agreement: 
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
NPP Amendment August 2020
This Notice of Proposed Procurement (NPP) Amendment 006 is to extend the closing date on the NPP from August 24, 2020 to March 31, 2021. This extension will allow sufficient time for consideration of whether there will be a requirement for developing and issuing the annual ITQ refresh. Industry will be informed via NPP amendment of whether an ITQ refresh will be issued.


Government of Canada HR and Pay Next Steps
NPP Amendment November 2019
This NPP Amendment 005 is to post 2 Questions from Industry and the Responses.

QUESTION 1:  However through this NPP, it is not clear as to why PSPC procurement group plans to release a refresh of the six ITQs within a year of its first release instead of moving to the next stage of releasing RFPs under each of the remaining streams (for which the RFPs have not been released). 
ANSWER 1:  While Canada has not yet released RFPs in some of the Streams, we have various groups working on the different streams. It was always the intention to conduct a yearly refresh, in order to allow firms who did not qualify to the original ITQ, to do so under the refresh. Furthermore, as technology is ever evolving, we want to ensure that Canada is in a position to benefit from any new programs and/or new companies that could assist with various Streams under the Phoenix Stabilization Initiative.  
QUESTION 2:  As per your note in the NPP, the ITQ requirements in the new ITQs will be identical to the previous ITQs and current qualified vendors are not required to submit a proposal or renew their qualification. In our understanding all the industry key players would have already participated in first ITQ stage. Therefore, in our opinion it is not beneficial for both PSPC and vendors to go through this process again when there are no changes to ITQs to six streams and majority of the ITQs have not moved further to next stage.  

ANSWER 2:  Several firms have inquired as to when a refresh was going to be released, as they did not see the original ITQ when it was posted.  In regards to the RFPs that have not been released, the client department has been working on refining these requirements, while managing the contracts that have been awarded under the other Streams. As you can imagine, the lessons learned from the first few awarded Streams has been invaluable and will only assist us in further defining requirements for the remaining Streams. 


Government of Canada HR and Pay Next Steps
NPP Amendment October 2019


Since the NPP for the Government of Canada HR and Pay Next Steps was posted on August 24, 2018, Canada has been working on two distinct projects to stabilize the current pay system and to define a replacement solution. These two projects have been working under the following solicitation file numbers:
I. Stabilization of the Phoenix Pay System and related pay activities, under EN920-190988; 
II. Next Generation HR and Pay Solution (people, technology and processes), under 24062-190560.

This NPP Revision will address the Phoenix Stabilization project, only. To review activities on the Next Generation HR and Pay Solution, please review all postings on under File 24062-190560. Currently there are 3 active contracts held by three different firms, who were successful for ITQ Gate 1, ITQ Gate 2 and the RFP Gate 3. These 3 contracts were awarded June 21, 2019, each for an initial period of 5 years, plus options.

Reason for NPP Amendment

This Amendment to the NPP is being released to give Industry an update on the procurement activities for Phoenix stabilization since its launch in August 2018.

Planned Procurement Activities

PSPC plans to solicit a refresh of the ITQ for the six business challenge categories:
• The ITQ Refresh will allow new Bidders the opportunity to qualify in any number of the 6 streams
• Current Qualified Bidders in each stream are not required to re-qualify
• The ITQ requirements will be identical to those in the first ITQ

PSPC plans to release additional RFPs in any number of the Streams:
• Potential RFPs may include Draft RFP Review sessions with the qualified firms
• As requirements are evolving with the delivery of the current contracts, PSPC intends to release RFPs in the remaining Streams, but may combine, split or even replace the Streams that have not yet been released

*To receive an email notification for new amendments, select the email notification service icon   and fill out the subscription form on the Page of Notice. 

Update on Current/Completed Phoenix Pay Stabilization Requirements

Current Procurement Activities

PSPC released an ITQ for Stream 7 - Accelerator Services:
• ITQ released October 7, 2019
• Stream 7 is a new Phoenix Pay Challenge category
• Intended to result in a Qualified Bidders List for this stream

Completed Procurement Activities
Public Services and Procurement Canada (PSPC) solicited valuable information from Industry, under separate Requests for Information for six business challenge categories:
• RFI for Request Automation released September 17, 2018
• RFI for HR Processes released September 24, 2018
• RFI for Lowering the Queue released October 3, 2018
• RFI for Enhanced User Access Management released October 17, 2018
• RFI for Improving User Experience released October 18, 2018
• RFI for Training released October 31, 2018

Subsequently, PSPC released an Invitation to Qualify (ITQ) containing all six business challenge categories or Streams:
• ITQ released October 30, 2018; numerous responses received across the 6 categories
• Qualified Bidder Lists were established for each of the six streams

PSPC released a Request for Proposal (RFP) under Stream 1 - Request Process Automation:
• RFP released January 22, 2019; only the qualified firms could submit a response
• Two contracts were awarded March 5, 2019

PSPC released a RFP for Stream 3 - Lowering the Queue:
• A Draft RFP Review session was held with the qualified firms on February 12, 2019
• RFP released March 15, 2019; only the qualified firms could submit a response
• Two contracts were awarded May 28, 2019

PSPC released a Request for Proposal under Stream 1 - Request Process Automation:
• A Draft RFP Review session was held with the qualified firms on June 18, 2019
• RFP released July 26, 2019; only the qualified firms could submit a response
• Two contracts were awarded October 4, 2019


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

Original August 2018
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". 


Canada’s public servants deserve to be paid properly and on time for their important work. Stabilizing the Government of Canada’s (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 government’s 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 employee’s 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 GoC’s 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 team’s 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 government’s 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).

*To receive an email notification for new amendments, select the email notification service icon   and fill out the subscription form on the Page of Notice. 

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.

Contact information

Contact name
Ferrier (685xe), Heather
Contact email
Contact phone
(613) 408-0259 ( )
Contact fax
( ) -
Contact address
Special Procurement Initiative Dir
Dir. des initiatives speciales
Terrasses de la Chaudière 4th Floor
10 Wellington Street


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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
ABES.PROD.PW__XE.B681.E33763.EBSU002.PDF002English- 2020-08-25
ABES.PROD.PW__XE.B681.E33763.EBSU003.PDF003English- 2020-08-25
ABES.PROD.PW__XE.B681.F33763.EBSU003.PDF003French- 2020-08-25

Related tender notices

Related award notices

Title of related award notice Value of related award notice End user entity Contract award date
HRP-RHP Stream 7 - Accelerator Services RFP (EN920-190988/005/XE) CAD 4 989 656.25 Public Works and Government Services Canada 2020/02/27
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
"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

Related contract history