Service and Solutions Alternative Forms of Delivery February 2005
An overview of PWGSC real property
Steward of $7B in holdings, including national treasures
6.7M m 2 (52% owned/48% leased)
2,100 leases worth $709.6M
254 Government of Canada buildings
Accommodation of 210,000 public servants & parliamentarians in 1,900 locations
Public Works and Government Services “ The Government of Canada’s strategic real property advisor and portfolio manager”
PWGSC’s Alternative Forms of Delivery
Statement of Work
Performance Management Framework
Service Delivery ‘ Delegated manager’ Faster processes, industry expertise Commercial interests & public trust responsibilities Private sector Federal departments Service Offering Service Delivery “ Seamless Relationship” Service Management Public accountability Standards & policy development, client relationships Strategic contract management PWGSC Service Management
AFD New Procurement
Objectives of RFP
“ The Department is seeking a dynamic, solution-oriented private sector Real Property Service Providers who demonstrate commitment to long term collaborative relationships and strategic alliances for the delivery of high quality service to our clients”
Expansion of services
Increase in inventory from 2.4 million m² to 2.9 million m²
Flexibility to increase Project levels from $200 K to $1 M.
Number of portfolios (and Contracts) reduced
Fees to be a fixed lump sum tied to Consumer Price Index rather than a percent of O & M.
Contractor's property managers to be integrated with the Department's Service Integration Teams.
Approach to New Procurement
Facilitate and encourage tenants to deal directly with the Contractor (and vice versa).
Contract term - 4 years with 3 two year options (potential 10 year contract)
Amended KPI Framework - reduced # of KPIs
Contractor to implement Quality Management System to the ISO 9001 - 2000 standard
Reduced inspections and contract oversight by PWGSC – more strategic focus on Portfolio Management, rather than day-to-day activities
Shift focus from inputs to outputs
New Contractor Incentive Program
Approach to New Procurement ( continued)
Performance v. quality management
Quality control & process descriptions
Quality assurance & measurement
Internal & external audits
Corrective action on any non-conformance
Innovation & new ideas – continual improvement
Key Performance Indicators (KPI)
SERVICE PROVIDER: Quality Management PWGSC: Performance Management ISO certified
Property Management Services
Building Performance Reviews
Other Building Services
Grounds Upkeep and Landscaping
Physical Security Services
Building Infrastructure Continuity Plans
Prepare, maintain and annually update
PWGSC template tailored & populated
Building Emergency Plans
Business Continuity Plan
Project Delivery Services
Managing Projects within Cost Categories
Tenant Service Projects
Lease Administration and Facilities Management Services
Project Delivery Related Services – Projects $200,000 to $1,000,000
Commercial Operations Related Services – Leasing
Requirements Related to All Services
Contract Relationship Management
Tenant Relationship Management
Management of PWGSC Contracts
Novation and Assignment of Existing Contracts
Occupational Health and Safety
Environmental Protection and Conservation
Stewardship of Heritage Character and Design Quality of Buildings
BUSINESS AS USUAL
IMPACT ON CLIENTS = NONE
The evolution of AFD in PWGSC
Guiding principle Partnerships, not policing
Focus Adding value for Canadians
“ Service providers are powerful partners in driving economy, quality, innovation & satisfaction ” Initial AFD
Traditional relationship Strategic alliance 1998 2005
Lack of trust
Strengthened alliance 2002
AFD context in PWGSC 4 years + 3 x 2 years = potential 10 years 3 years + 4 x 1 year = 7years Term SNC-Lavalin ProFac Inc. Brookfield Lepage Johnson Controls Service Provider
projects up to $1M
n/a Secured Options 8 Regionally-based individual portfolios encompassing all parts of Canada 13 Regional contracts Organization 319 office buildings; 2.9M m 2 300 office buildings; 2.4M m 2 Scope All inclusive Property Management Services/ Project delivery (up to $200K) Property management & project delivery (up to $200K) Services 2005 1998
Regrouping of Portfolios Along Regional Lines:
No. of Bldg. M2
Pacific 33 194,151
Western 20 294,474
Ontario 55 340,412
Ottawa Downtown 18 435,033
Ottawa Perimeter 25 511,535
Gatineau 11 487,609
Québec 55 381,500
Atlantic 102 274,956
* BCBC agreement (89,000m2) has been included in portfolio #1(Pacific).
**SPMC agreement (40,000 m2) is being incorporated into portfolio #2 (Western).
Procurement - Summary
Request for Proposal issued April 16th - closing July 15, 2004
Bid Evaluation Period - mid July to September 30, 2004
TB approval and contract award – November 22, 2004
Contracts signed without negotiation – December 7, 2004
Transition period of 4 months commencing December 1, 2004
Start date for new contracts April 1, 2005
Through the use of a competitive process a new Service Provider was the successful bidder for all 8 portfolios.
SNC-Lavalin ProFac Incorporated signed contracts with PWGSC in December 2004 and take over their duties on April 1, 2005
The web-site for SNC-Lavalin ProFac Inc. is www.snclavalinprofac.com
Building on the AFD success - PWGSC has expanded services to include 2/3 of the our custodial office inventory in the new AFD contracts.
Private sector will manage the day to day operations of federal properties
PWGSC retains asset management, strategic investment decision-making, acquisition and disposal services, payments in lieu of taxes, and operation of the National Service Call Center.
PWGSC will focus on our key role as strategic real property advisor to government and remains accountable for all services provided to our customer departments, whether delivered in-house or through external service providers.
Departments will continue to contact PWGSC for service requests and use the National Service Call Center to obtain service.
New AFD incorporates lessons learned, industry best practices and more ambitious performance indicators to ensure the highest quality service delivery.
New contracts provide flexibility to increase AFD inventory by up to 10% and provides optional services for facility management, lease administration, commercial leasing and project delivery services ($200K >$1Million)
As opportunities present themselves, other assets and services will be assessed to determine whether they could also benefit from the efficiencies offered by AFD.