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7.56 Public Works and Government Services Canada should
implement its controls rigorously. It should:
·
Clearly define and
document roles and responsibilities of all players, including itself and
other government departments, in monitoring the service provider’s
performance and in ensuring that selected obligations are met;
·
Determine and document which
monitoring controls are to be applied for each category of buildings managed
under the contracts;
·
Consistently and rigorously
apply the appropriate controls to address the implementation weaknesses
identified in this report;
·
Consider the need for a stronger
oversight function that will support consistent understanding and
implementation of the controls;
·
Strengthen its processes for
validating the reliability and completeness of information used to measure
the service provider’s performance and to determine incentive payments; and
·
Review the objective of the
Contractor Incentive Program or ensure that its implementation aligns with
its objectives.
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The Department, through two
generations of Alternate Forms of Delivery contracts, was able to save
$450 million. Leveraging the efficiency and the flexibility offered by
the private sector enables the Department to avoid competing with the private
sector and to better respond to the Government of Canada program needs and,
thus, be seen as a leader in the real property industry. In addition, by
taking advantage of the agility of the private sector, the Department
stimulates the economy by giving the service providers the flexibility to
subcontract work to over 6,500 small-and-medium enterprises across the
country.
The Department has already started to
integrate the following actions in the next generation of contracts and
associated framework. It is:
·
enhancing the way
the controls are implemented to ensure consistency and compliance with the
terms and conditions of the contracts;
·
continuing to use
these controls and improve, where possible, while recognizing the importance
of value for money in the management of these complex contracts;
·
continuing to
better define the roles and responsibilities of stakeholders in monitoring
the service provider’s performance;
·
ensuring that the
controls apply to each type of building managed under the contracts and that
key decisions, regarding the accountability of the other custodian
departments when service providers are selected to conduct work according to
the terms and conditions of the contracts, will be documented; and
·
applying the
modified Contractor Incentive Program, which has been changed to a
discretionary program that will be reviewed annually and subjected to meeting
all of the Key Performance Indicators for that fiscal year.
As a result of the previous audits and
lessons learned, the full spectrum of oversight functions for Alternate Forms
of Delivery contracts is currently under review with a view to developing a
new regime. The new oversight regime is based on a recognized industry model
and will ensure a comprehensive, integrated, and efficient approach is
implemented for future Real Property contracts. The implementation of this
new oversight regime will improve the way the contracts are managed,
monitored and reported on; these changes will be applied to the next
generation of contracts, which will be operational in 2015.
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1.1
a) RPB will develop and
implement a comprehensive integrated oversight framework for the next
generation of Real Property (RP-1) contracts (replacing the existing
Alternative Forms of Delivery contracts), which deliver real property
services to Crown-owned and leased assets in Canada. The framework will cover
the full spectrum of controls and related oversight activities. All
activities will be integrated and measures will be taken (e.g. documented
procedures, training and monitoring) to facilitate and monitor consistency
across the country.
b) The oversight framework
will also include a responsibility matrix that will define the roles and
responsibilities of employees.
c) RPB will develop and
implement Agreements for Tenants and Other Custodians to clarify the roles
and responsibilities of each party (i.e.: PWGSC, other government
departments, and service providers).
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April 1, 2015
April 1, 2015
April 1, 2015
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a) On track
b) On track
c) On track
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1.2
a) The RP-1 contracts will
include a performance delivery regime which details the performance measures
necessary to monitor the efficiency and effectiveness of the contracts for
each category of buildings.
b) RPB will develop process
maps and procedures for oversight, including monitoring activities, which
will be aligned with the assessment of the key risk areas. These monitoring
activities will be implemented nationally, across the country.
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October 2013
April 1, 2015
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a) Completed and integrated
in the Statement of Work. Will be implemented on April 1, 2015, upon coming
into force of contract.
b) On track
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1.5
a) The performance
management regime has been redesigned for RP-1. The new Regime institutes
regular meetings to review results and confirm validity of the Performance
Indicators.
b) A new framework for
quality management will be designed to govern the selection of buildings and
projects for all quality monitoring reviews.
c) The process mapping and
risk assessment conducted for the performance management regime and quality
management will result in procedures and training that will cover the full
spectrum of the building inventory and required information on file to
support decision-making.
d) Periodic quality
monitoring reviews will be conducted to ensure compliance with the contracts
and any other assurance activities. Any findings will be analyzed and
addressed. Analysis will be conducted to identify systemic issues.
e) RPB has included in the
RP-1 Statement of Work a key performance indicator on information integrity
which will help ensure that the service providers’ information is complete
and reliable.
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October 2013
April 1, 2015
April 1, 2015
April 1, 2015
October 2013
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a) Completed and integrated
in the Statement of Work. Will be implemented on April 1, 2015, upon coming
into force of contract.
b) On track
c) On track
d) On track
e) Completed and integrated
in the Statement of Work. Will be implemented on April 1, 2015, upon coming
into force of contract.
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1.6
a) The contractor incentive
program for RP-1 has been modified and will be a discretionary program
reviewed annually. When PWGSC determines that the contractor incentive
program will be in place for a given fiscal year, it will be subject to
meeting all of the key performance indicators for that fiscal year, prior to
any performance payments being awarded.
b) RPB will develop a
detailed procedure, specific to the contractor incentive program, with
parameters to determine when to use the Program.
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October 2013
Initiated on April 1, 2014
with full implementation on April 1, 2015
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a) Completed and integrated in the Statement of Work.
Will be implemented on April 1, 2015, upon coming into force of contract.
b) On track
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