Real Property-1 Frequently Asked Questions

What is Public Services and Procurement Canada (PSPC) trying to accomplish with RP-1?

With RP-1, the Department is building and enhancing its service delivery capacity and flexibility by leveraging private sector capabilities while achieving efficiencies in the delivery of real property services across the Government of Canada. With RP-1, PSPC continues to build a strong corporate real estate organization that emphasizes internal service management and administration supported by external service delivery.

While the private sector is assuming a greater role in the delivery of real property services, PSPC remains accountable for the development, management and administration of the Department's real property program and continues to explore options that effectively leverage the private sector to respond to the current and emerging real property needs of the Department and client departments.

Why use the private sector to deliver real property services?

Simply put, because this is a delivery model that has demonstrated its benefits according to our previous experiences. As the Government of Canada's real estate expert, PSPC must provide real property services while ensuring best value for taxpayers, sound stewardship, quality of service, oversight and effective custodianship of federally owned and leased assets.

The real property services management contracts, formerly referred to as Alternative Forms of Delivery (AFD) contracts, represent an effective approach that enables us to meet these objectives. These objectives continue to be met by ensuring the strategic management of our real property portfolio and the use of industry-established approaches, such as the increased use of private sector capacity, to enhance service delivery.

Is this type of contract really cost-effective?

Yes it is. Past experiences with the AFD contracts have demonstrated that leveraging private sector expertise, flexibility and capabilities is a cost-effective method of delivering real property services to the federal government. That being said, cost-effectiveness is only one aspect of the contract. Other considerations include value for money and quality of work performed.

How many contracts were issued under RP-1, and what types of services do they cover?

RP-1 consists of six regional, performance-based contracts. These contracts provide a comprehensive range of real property services for federally owned and federally leased assets across Canada. They also include options allowing PSPC the flexibility to add or remove assets during the term of the contracts.

How long will the RP-1 contracts be for?

The initial RP-1 contracts are for 7 years with an option to extend the period by three additional two-year options, as well as the additional contract initiation and close-out periods, which are approximately six months each. Therefore, the total potential contract period is for up to fourteen years, if all options are exercised.

6 – In what ways do the RP-1 contracts differ from the former AFD mechanism?

RP-1 include six regionally based contracts for each of the PSPC regions, rather than the eight contracts under AFD. Other key distinctions pertain to the level of responsibility given to the service provider(s). Through RP-1, PSPC will be placing more emphasis on results than processes, thereby allowing service providers greater flexibility to determine both how best to deliver services and how best to measure performance, using PSPC's Key Performance Indicators: satisfaction, asset integrity, financial, and information integrity.

The basis of payment was also redesigned as a two-tier performance fee structure and involves a holdback at the overall contract level and one for each portfolio in the contract. This approach enables individual custodians to be accountable for the performance of their respective assets and for tracking associated funds, ensuring a balanced approach to the attainment of objectives for all contract portfolios.

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