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  • Three portfolios in the NCA make up 55% of the AFD Inventory.
  • PWGSC is expanding the scope of its AFD because independent financial and customer evaluations of previous AFD contracts have acknowledged that it is efficient and responsive. AFD will not impair service delivery. AFD contracts are quality and performance-based, designed to ensure service levels are met or exceeded and that government workplace values - such as environmental Sustainability - are upheld. AFD enables the private sector to bring its real property expertise for the day to day management of federal properties, while enabling PWGSC to focus on being the government's strategic real property advisor.
  • raic.org/raic/advocacy/federal_procurement ...

    1. 1. Service and Solutions Alternative Forms of Delivery February 2005
    2. 2. An overview of PWGSC real property <ul><li>Portfolio </li></ul><ul><li>Steward of $7B in holdings, including national treasures </li></ul><ul><li>6.7M m 2 (52% owned/48% leased) </li></ul><ul><li>2,100 leases worth $709.6M </li></ul><ul><li>254 Government of Canada buildings </li></ul><ul><li>Accommodation of 210,000 public servants & parliamentarians in 1,900 locations </li></ul>Public Works and Government Services “ The Government of Canada’s strategic real property advisor and portfolio manager”
    3. 3. PWGSC’s Alternative Forms of Delivery <ul><li>Performance-based Contract: </li></ul><ul><li>Statement of Work </li></ul><ul><li>Performance Management Framework </li></ul>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
    4. 4. AFD New Procurement
    5. 5. Objectives of RFP <ul><li>“ 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” </li></ul>
    6. 6. <ul><li>Expansion of services </li></ul><ul><li>Increase in inventory from 2.4 million m² to 2.9 million m² </li></ul><ul><li>Flexibility to increase Project levels from $200 K to $1 M. </li></ul><ul><li>Number of portfolios (and Contracts) reduced </li></ul><ul><li>Fees to be a fixed lump sum tied to Consumer Price Index rather than a percent of O & M. </li></ul><ul><li>Contractor's property managers to be integrated with the Department's Service Integration Teams. </li></ul>Approach to New Procurement
    7. 7. <ul><li>Facilitate and encourage tenants to deal directly with the Contractor (and vice versa). </li></ul><ul><li>Contract term - 4 years with 3 two year options (potential 10 year contract) </li></ul><ul><li>Amended KPI Framework - reduced # of KPIs </li></ul><ul><li>Contractor to implement Quality Management System to the ISO 9001 - 2000 standard </li></ul><ul><li>Reduced inspections and contract oversight by PWGSC – more strategic focus on Portfolio Management, rather than day-to-day activities </li></ul><ul><li>Shift focus from inputs to outputs </li></ul><ul><li>New Contractor Incentive Program </li></ul>Approach to New Procurement ( continued)
    8. 8. Performance v. quality management <ul><li>Quality control & process descriptions </li></ul><ul><li>Quality assurance & measurement </li></ul><ul><li>Internal & external audits </li></ul><ul><li>Corrective action on any non-conformance </li></ul><ul><li>Innovation & new ideas – continual improvement </li></ul><ul><li>Quality monitoring </li></ul><ul><li>Key Performance Indicators (KPI) </li></ul><ul><li>Fee determination </li></ul><ul><li>Incentive program </li></ul>SERVICE PROVIDER: Quality Management PWGSC: Performance Management ISO certified
    9. 9. Service Offerings
    10. 10. Property Management Services <ul><li>Building Performance Reviews </li></ul><ul><li>Service Calls </li></ul><ul><li>Energy Management </li></ul><ul><li>Daily Operations </li></ul><ul><li>Maintenance Management </li></ul><ul><li>Building Cleaning </li></ul><ul><li>Materiel Management </li></ul><ul><li>Other Building Services </li></ul><ul><li>Grounds Upkeep and Landscaping </li></ul><ul><li>Physical Security Services </li></ul><ul><li>Building Infrastructure Continuity Plans </li></ul><ul><ul><li>Prepare, maintain and annually update </li></ul></ul><ul><ul><li>PWGSC template tailored & populated </li></ul></ul><ul><li>Building Emergency Plans </li></ul><ul><li>Business Continuity Plan </li></ul><ul><li>Commercial Operations </li></ul>
    11. 11. Project Delivery Services <ul><li>Managing Projects within Cost Categories </li></ul><ul><li>Tenant Service Projects </li></ul><ul><li>Commissioning </li></ul>
    12. 12. Optional Services <ul><li>Lease Administration and Facilities Management Services </li></ul><ul><li>Project Delivery Related Services – Projects $200,000 to $1,000,000 </li></ul><ul><li>Commercial Operations Related Services – Leasing </li></ul>
    13. 13. Requirements Related to All Services <ul><li>Contract Relationship Management </li></ul><ul><li>Tenant Relationship Management </li></ul><ul><li>Quality Management </li></ul><ul><li>Subcontract Management </li></ul><ul><li>Management of PWGSC Contracts </li></ul><ul><li>Novation and Assignment of Existing Contracts </li></ul><ul><li>Occupational Health and Safety </li></ul><ul><li>Environmental Protection and Conservation </li></ul><ul><li>Stewardship of Heritage Character and Design Quality of Buildings </li></ul><ul><li>Critical Incidents </li></ul><ul><li>Risk Management </li></ul>
    14. 14. TRANSITION <ul><li>SEAMLESS DELIVERY </li></ul><ul><li>BUSINESS AS USUAL </li></ul><ul><li>IMPACT ON CLIENTS = NONE </li></ul>
    15. 15. The evolution of AFD in PWGSC <ul><li>Guiding principle Partnerships, not policing </li></ul><ul><li>Focus Adding value for Canadians </li></ul>“ Service providers are powerful partners in driving economy, quality, innovation & satisfaction ” Initial AFD <ul><li>Encouraged innovation </li></ul><ul><li>Continuous improvement </li></ul><ul><li>Self-monitoring QMS </li></ul>Traditional relationship Strategic alliance 1998 2005 <ul><li>Heavy prescription </li></ul><ul><li>Hands-on monitoring </li></ul><ul><li>Lack of trust </li></ul>Strengthened alliance 2002 <ul><li>Turnaround exercise </li></ul><ul><li>Team-building </li></ul><ul><li>Reduced oversight </li></ul>New procurement
    16. 16. 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 <ul><li>projects up to $1M </li></ul><ul><li>facilities management </li></ul><ul><li>commercial leasing </li></ul><ul><li>lease administration </li></ul>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
    17. 17. Regrouping of Portfolios Along Regional Lines: <ul><li>No. of Bldg. M2 </li></ul><ul><li>Pacific 33 194,151 </li></ul><ul><li>Western 20 294,474 </li></ul><ul><li>Ontario 55 340,412 </li></ul><ul><li>Ottawa Downtown 18 435,033 </li></ul><ul><li>Ottawa Perimeter 25 511,535 </li></ul><ul><li>Gatineau 11 487,609 </li></ul><ul><li>Québec 55 381,500 </li></ul><ul><li>Atlantic 102 274,956 </li></ul><ul><li>* BCBC agreement (89,000m2) has been included in portfolio #1(Pacific). </li></ul><ul><li>**SPMC agreement (40,000 m2) is being incorporated into portfolio #2 (Western). </li></ul>
    18. 18. Procurement - Summary <ul><li>Request for Proposal issued April 16th - closing July 15, 2004 </li></ul><ul><li>Bid Evaluation Period - mid July to September 30, 2004 </li></ul><ul><li>TB approval and contract award – November 22, 2004 </li></ul><ul><li>Contracts signed without negotiation – December 7, 2004 </li></ul><ul><li>Transition period of 4 months commencing December 1, 2004 </li></ul><ul><li>Start date for new contracts April 1, 2005 </li></ul>
    19. 19. Contract Award <ul><li>Through the use of a competitive process a new Service Provider was the successful bidder for all 8 portfolios. </li></ul><ul><li>SNC-Lavalin ProFac Incorporated signed contracts with PWGSC in December 2004 and take over their duties on April 1, 2005 </li></ul><ul><li>The web-site for SNC-Lavalin ProFac Inc. is www.snclavalinprofac.com </li></ul>
    20. 20. <ul><li>Building on the AFD success - PWGSC has expanded services to include 2/3 of the our custodial office inventory in the new AFD contracts. </li></ul><ul><li>Private sector will manage the day to day operations of federal properties </li></ul><ul><li>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. </li></ul><ul><li>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. </li></ul>Conclusions
    21. 21. <ul><li>Departments will continue to contact PWGSC for service requests and use the National Service Call Center to obtain service. </li></ul><ul><li>New AFD incorporates lessons learned, industry best practices and more ambitious performance indicators to ensure the highest quality service delivery. </li></ul><ul><li>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) </li></ul><ul><li>As opportunities present themselves, other assets and services will be assessed to determine whether they could also benefit from the efficiencies offered by AFD. </li></ul>Conclusions (continued)