For immediate release
OTTAWA, September 6, 2005 -- The Government of Canada is moving ahead with a study seeking independent advice on new creative ways to better manage government office buildings.
The Honourable Scott Brison, Minister of Public Works and Government Services Canada (PWGSC), today launched a formal Request for Proposal inviting industry to submit bids. The Request for Proposal is asking for guidance on the most cost-effective and efficient ways to manage government office buildings while promoting important public policy goals such as energy efficiency.
"The study will look at ways to improve the environmental performance of the portfolio operated by the department and help us improve the way we manage our real estate holdings to ensure best value for taxpayers," said Minister Brison.
PWGSC sought industry advice last spring in developing the Request for Proposal for the study and has retained the services of a Fairness Monitor through a separate competitive process.
"We are ready to conduct a fair, open and transparent procurement process to ensure the best expertise is hired to conduct the study itself," Minister Brison added.
The study will include 326 buildings owned by the Government of Canada, excluding important historical landmarks such as the Parliament Buildings. PWGSC manages one of the largest and most diverse real estate portfolios in Canada, accommodating over 200,000 federal employees. Key decisions need to be made about how to manage its aging real estate inventory.
The results of the study are expected in 2006. The government will carefully consider all options before taking any action. Whatever decisions are made, the government will ensure continued federal visibility in all regions of Canada.
For more information, visit the Government Electronic Tendering Service (GETS): http://www.merx.com
Deadline for bids: October 24, 2005
A backgrounder is available below.
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For further information, media may contact:
Renée David
Press Secretary
Office of Minister Brison
(819) 997-5421
Public Works and Government Services
Media Relations Unit
(819) 956-2315
BACKGROUNDER
Request for Proposal On Real Estate Study
From April to June 2005, Public Works and Government Services Canada (PWGSC) sought input on drafts of its Request for Proposals (RFP) to solicit comments on the parameters of a study on how best to manage its office and common use real estate portfolio. Suggestions received throughout this phase brought about constructive modifications to the tender documentation.
In July, PWGSC launched a separate competitive process to engage a Fairness Monitor to oversee the Study's procurement process and ensure it is fair, open and transparent. With the Fairness Monitor engaged, PWGSC is now issuing a formal RFP to solicit bids to carry out the study.
PWGSC manages one of the largest and most diverse real estate portfolios in Canada, accommodating over 200,000 federal employees.
The current office portfolio is:
52% owned;
40% leased; and
8% leased to purchase.
The study will include 326 buildings used as office and common use space. They are on average 43 years old, and will require some $2 billion in investments over the next five years to preserve their value. The scope of this Study excludes the Parliament Buildings and other historical landmarks.
There will be a complete and thorough assessment of the current management approach and how innovative methods of management, finance and ownership could be used to improve overall performance. The Study will also look for methods to generate savings and contribute to support broader public policy objectives, such as environmental sustainability and the preservation of Canada's heritage. Some of the key objectives are to:
Identify long-term sustainable options for accommodating public servants more effectively and efficiently, enabling federal departments and agencies to deliver their programs while at the same time improving PWGSC's current life-cycle cost.
Produce an objective analysis of PWGSC's office and common use portfolio resulting in a business case for an optimal office accommodation strategy for the Government of Canada, which would deliver the best value to the taxpayer.
Examine and provide, where appropriate, various implementation options within a spectrum of real estate interests. These could include creative financial approaches to real estate such as Real Estate Investment Trusts (REIT) or public-private partnerships, or other innovative ownership structures.
The results will help PWGSC improve the way it manages its real estate holdings and ensure that Canadians get the best possible value for their tax dollars. In addition, the study is expected to identify ways to achieve savings that can be reinvested in the priorities of Canadians.
The final report will address a number of specific questions and issues, including:
The experience and lessons learned of other public and private institutions, in Canada and abroad, which have examined or adopted innovative approaches to managing real estate holdings, including the sale of some assets. Such institutions include the governments of Australia, New Zealand and Great Britain, Canadian provinces, such as Québec, Ontario and British Columbia, and organizations such as the Canadian Broadcasting Corporation, the Royal Bank and IBM.
The role of factors such as the age, condition and cost of maintaining the value of PWGSC's owned real estate; the location, diversity and flexibility of the portfolio; and heritage characteristics.
The need to show leadership in greening government operations.
Recommended approaches for the recapitalization of PWGSC's real estate portfolio.
Measures that PWGSC should use to measure performance with respect to the supply of accommodation.
The results of the study are expected in summer 2006. PWGSC will carefully consider all options before taking any action. Whatever decisions are made, PWGSC will respect commitments to environmental excellence, maintain the presence of the federal government in all regions of Canada, protect heritage properties, and work with local governments to support community objectives.
The study will include a total of 326 assets from the government real estate portfolio, as follows:
Province
Assets
Alberta
7
British Columbia
30
Prince Edward Island
10
Manitoba
10
New Brunswick
30
Newfoundland
38
Nova Scotia
28
Ontario
112
Québec
55
Saskatchewan
6
TOTAL
326
