Real property service delivery

Guided by the National Service Management Strategy, Public Services and Procurement Canada (PSPC) develops strategic real property sourced solutions designed to leverage private sector capacity, agility and expertise.

On this page

• History of building management for federal government properties
• Current third generation contracts
• Next (fourth) generation of real property mechanisms
• Oversight measures in place for all Public Services and Procurement Canada contracts

History of building management for federal government properties

For decades, real property management and related services were directly provided by Government of Canada employees. In the mid-1990s, in response to multiple challenges, such as fiscal constraints, downsizing objectives of program reviews and other reform initiatives, PSPC chose to focus on its strategic advisory and service management roles, while identifying a more efficient method of providing day-to-day operational services. To achieve this, in 1998, PSPC initiated the first outsourcing of property management and project delivery services.

The first generation of real property services outsourced to the private sector involved 13 contracts competitively tendered and awarded to Brookfield LePage Johnson Controls (now known as Brookfield Johnson Controls Canada LP). These contracts were for the management of 300 PSPC office facilities across the country, representing 2.5 million square metres.

With the success of the first generation of contracts, the initiative was renewed in 2005. The second generation of real property services management contracts was competitively tendered, and 8 contracts were awarded to SNC-Lavalin ProFac (now known as SNC-Lavalin Operations and Maintenance Inc.). These contracts, which had an operational end date of March 31, 2015, were for the management of over 1,000 Crown facilities owned by PSPC, the Canada Border Services Agency (CBSA), the Royal Canadian Mounted Police (RCMP) and Natural Resources Canada (NRCan) across the country, representing a maximum managed space of 3.34 million square metres.

The awarding of the third generation of contracts through a fair, open and transparent procurement process is a successful example of PSPC’s continuing transformation agenda, moving towards greater use of private sector expertise, with the objective of being more efficient and offering best value to Canadians.

The 6 competitively tendered contracts for the delivery of diverse real property services include the management of up to approximately 3,800 Crown facilities owned by PSPC, the CBSA, the RCMP and NRCan and leased facilities across Canada (8 million square metres).

Current third generation contracts

PSPC is currently in its third generation of sourced service delivery for:

• property management
• project delivery
• lease administration
• select optional services:
• Real Property (RP) 2 contract
• 6 RP 1 contracts

Key milestones

2013: PSPC awarded the RP 2 contract to Brookfield Global Integrated Solutions for:

• property management services
• project delivery services
• select optional services at 2 campus locations in the National Capital Region (32 Crown-owned assets at Tunney’s Pasture and the Carling Campus)

The contract expires on March 31, 2025.

2014: Following a fair, open and transparent procurement process, Brookfield Global Integrated Solutions was awarded 6 regional multi-year contracts ( RP 1) for:

• property management services
• project delivery services
• lease administration services
• select optional services at approximately 3,800 PSPC and other government department locations

The RP 1 contracts are set to expire on March 31, 2028.

Due to the nature of the work, many small and medium enterprises across the country have access to the work through thousands of competitive subcontracting opportunities offered by the contractor. The contracts include a requirement that the contractor engage subcontractors through fair, open, transparent and competitive processes.

Next (fourth) generation of real property mechanisms

Following a fair, open and transparent competitive process, PSPC awarded the property management services contract to BGIS Global Integrated Solutions Canada LP for the delivery of a range of real property services for select Crown-owned assets in the National Capital Region, on behalf of the Government of Canada. These real property services include:

• management services
• property management services
• project delivery services
• commercial agreements
• tenant and facilities management services

The contract will provide more flexibility to respond to changing government priorities, help meet the Government of Canada’s accessibility standards and advance the Greening Government Strategy. The contract will also support the Government of Canada’s efforts to increase economic opportunities for First Nations, Inuit and Métis businesses through the federal procurement process.

The property management services contract serves as a partial replacement for the existing real property contracts, RP 1 and RP 2, which cover:

• property management
• project delivery
• lease administration
• select optional services

PSPC has chosen to transition from an “all-in-one” service model to a more strategic, service-specific approach. As a result, this new generation of service-specific contracts will enable PSPC to evolve its service delivery and tap into specialized suppliers by customizing real property contracts based on the service type. This approach will strengthen the government’s purchasing power and increase bidding opportunities.

Oversight measures in place for all Public Services and Procurement Canada contracts

While recognizing the value of leveraging the expertise of the private sector, PSPC maintains its commitment to due diligence and good stewardship by continually improving procurement practices. This is achieved through the use of fairness monitors, strong governance mechanisms and third-party expertise to ensure that all phases of the tender and award processes are conducted in an open, fair and transparent manner.

In this case, an independent third-party fairness monitor was engaged to observe the RP 4 procurement process and to attest to the fairness, openness and transparency of the process. The fairness monitor provided services such as reviewing relevant solicitation documents, monitoring communications with proponents and observing evaluation consensus meetings. The reports from the fairness monitor concluded that the procurement was conducted in a fair, open and transparent manner and that equitable treatment was given to all bidders.

As the government’s main buyer of goods and services, PSPC puts in place ongoing monitoring and continual improvement processes for the duration of its contracts. As part of this due diligence, PSPC has established numerous measures to ensure contract compliance and value for money. These measures include audits, inspections, performance measurement and reporting, internal controls over the approval of payments and client satisfaction surveys.