Service and Solutions

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• Service and Solutions

Alternative Forms of Delivery
February 2005
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An overview of PWGSC real property

• Portfolio
• Steward of 7B in holdings, includingnational
  treasures
• 6.7M m2 (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 Canadas strategic real property
advisor and portfolio manager
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PWGSCs Alternative Forms of Delivery
Federal departments
Service Delivery
Service Offering
Seamless Relationship
Service Management
PWGSC
Private sector
Service Management Public accountability Standard
s policy development, client
relationships Strategic contract management
Service Delivery Delegated manager Faster
processes, industry expertise Commercial
interests public trustresponsibilities

• Performance-based Contract
• Statement of Work
• Performance Management Framework

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AFD New Procurement
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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

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Approach to New Procurement

• 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.

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Approach to New Procurement (continued)

• 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

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Performance v. quality management
SERVICE PROVIDER Quality Management
PWGSC Performance Management

• Quality control process descriptions
• Quality assurance measurement
• Internal external audits
• Corrective action on any non-conformance
• Innovation new ideas continual improvement

• Quality monitoring
• Key Performance Indicators (KPI)
• Fee determination
• Incentive program

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Service Offerings
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Property Management Services

• Building Performance Reviews
• Service Calls
• Energy Management
• Daily Operations
• Maintenance Management
• Building Cleaning
• Materiel Management
• 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
• Commercial Operations

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Project Delivery Services

• Managing Projects within Cost Categories
• Tenant Service Projects
• Commissioning

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Optional Services

• Lease Administration and Facilities Management
  Services
• Project Delivery Related Services Projects
  200,000 to 1,000,000
• Commercial Operations Related Services Leasing

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Requirements Related to All Services

• Contract Relationship Management
• Tenant Relationship Management
• Quality Management
• Subcontract 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
• Critical Incidents
• Risk Management

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TRANSITION

• SEAMLESS DELIVERY
• BUSINESS AS USUAL
• IMPACT ON CLIENTS NONE

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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
Traditional relationship
Strengthened alliance
Strategicalliance
1998
2002
2005

• Encouraged innovation
• Continuous improvement
• Self-monitoring QMS

• Heavy prescription
• Hands-on monitoring
• Lack of trust

• Turnaround exercise
• Team-building
• Reduced oversight

New procurement
Initial AFD
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AFD context in PWGSC
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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).

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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

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Contract Award

• 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

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Conclusions

• 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.

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Conclusions (continued)

• 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 gt1Million)
• As opportunities present themselves, other assets
  and services will be assessed to determine
  whether they could also benefit from the
  efficiencies offered by AFD.