TBS  Real  Property  Policy  Reset  Progress  Update      

RPIC  Real  Property  Na8onal  Workshop  November  16,  2016  

Treasury  Board  of  Canada  Secretariat  launched  Policy  Suite  reset  in  June  2014.  This  exercise  is  intended  to  update  TB  policy  instruments  that  apply  to  the  federal  government.  Revised  real  property  instruments  incorporate  a  number  of  elements:  

Five  Year  Reviews  

The  results  of  reviews  will  be  included  in  revised  instruments

   

Plain  language  

Policy  instruments  are  intended  to  be  clear  and  easy  to  understand  

Streamlining  

Removing  duplicaEve  requirements.  

Coherence  

Ensuing  complementary  requirements  within  and  across  policies    

Simplified  Repor8ng    Reduce  burden  to  comply  with  and  report  on  TB  policy.    

Risk-­‐based  

Requirements  in  instruments  must  address  clear  risks.    

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Policy  Reset  Objec8ves  

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Current  Policy  Suite  for  Assets  and  Acquired  Services  

ASAS  func8ons  

Investment  Planning  

Project  Management  

Capacity  Building  for  

ASAS  communi8es  

Materiel  

Real    Property  

Procurement  

•  Current  Acquired  Services  and  Assets  Sector  (ASAS)  Policy  Suite  consists  of:  o  1  framework  o  8  policies  o  6  standards  o  7  direcEves  o  12  guidelines  

•  22  Mandatory  •  12  Non-­‐mandatory  

•  ASAS  works  to  build  and  maintain  vibrant  professional  communiEes  

 

•  Treasury  Board  policies  for  the  management  of  assets  and  acquired  services  set  the  direcEon  to  ensure  that  the  conduct  of  these  acEviEes  provide  value  for  money  and  sound  stewardship  

34  ASAS  policy  instruments  

     

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Acquired  Services  and  Assets  Sector  Policy  Reset  Objec8ves  

•  Maintain  key  principles  from  the  exisEng  policy  suite  for  assets  and  acquired  services,  such  as:  

•  Fairness,  openness  and  transparency;  demonstraEng  due  diligence  

•  Decisions  with  respect  to  the  management  of  assets  and  acquired  services  are  consistent  with  government  prioriEes  and  departmental  mandates  and  enable  program  outcomes  

•  Increase  efficiency,  break  down  silos  through  integrated  governance,  planning  and  decision  making  for  assets  and  related  acquired  services,  projects  and  procurement    

•  Promote  enterprise-­‐wide  approaches  and  collaboraEon  between  departments  

•  Enhance  use  of  data  to  assess  performance  and  support  decision  making  

•  Enable  Treasury  Board  Ministers    to  have  oversight  on  the  right  things  at  the  right  Eme    

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Proposed  ASAS  Policy  Suite  

Policy  on  Management  of    Assets,  Procurement  and  Projects    Sound  stewardship  

Open  &  Fair  Transparent  

Value  for  money  Life-­‐cycle  approach  

Support  program    delivery  Investment  Planning    Capacity  building  

Procurement  DirecEve  

Real  Property  DirecEve  

Materiel  DirecEve  Management  of  Projects  DirecEve  

•  Eight  ASAS  policies  are  integrated  into  one  policy  –  Policy  on  Management  of  Assets,  Procurement  and  Projects  

•  Policy  is  supported  by  four  func8onal  area  direc8ves  with  suppor8ng  Mandatory  Procedures  •  TB  approval  limits  for  projects,  real  property  transac8ons  and  contracts  are  addressed  in  the  

policy  and  corresponding  func8onal  direc8ves,  as  appropriate    

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Proposed  Policy  on  the  Management  of  Assets,  Procurement  and  Projects  

 

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§  A single policy is intended to drive more integrated decision-making and reinforce life-cycle management

§  Requirement to assign responsibilities to appropriate senior officials

§  Encourages departments to consolidate requests for project, real property and procurement approvals by the Treasury Board

§  Capacity-building is brought to the forefront of the policy – similar to Financial Management and Internal Audit policies

§  Alignment with the new Policy on Results to support departments’ program delivery with a focus on outcomes

§  The Policy communicates the importance of assets and acquired services from the deputy head’s perspective

§  Directives, mandatory procedures, and guidance will communicate the “how”

Context

Planning  

Acquisi8on  

Asset  Management  Life  Cycle  

Ongoing  assessment  of  asset  performance    to  meet  program  

needs  

People  Governance  &  controls  

Opera8ng  &  Maintenance  

Disposal  

Key Features

Five-­‐year  review:    •  Policy  instruments  effecEve  in  achieving  

results  

•  Desire  for  more  guidance  vs.  more  policy  

•  Clarify  disposal  requirements  

•  Recognize  that  not  all  surplus  properEes  can  be  disposed  

•  DisEncEon  between  rouEne  and  strategic  disposals  is  not  clear  

•  Rust-­‐out  is  a  significant  concern  

Government  priori8es:    •  Increase  emphasis  on  relaEonship  with  

Indigenous  Peoples  and  greening  government  operaEons  

 

What  we  heard  

Maintaining:  •  Life  cycle  approach    •  Decentralized  custody  model  

Key  Changes:  •  Adding  self  governing  Indigenous  

groups  to  priority  list  for  disposals  

•  Requiring  a  strategy  for  underuElized  real  property  

•  EliminaEng  rouEne/strategic  disposal  classificaEon  

•  AllocaEng  appropriate  investment  in  repair,  maintenance  and  recapitalizaEon  throughout  the  life  cycle  

•  Allowing  transfers  of  administraEon  at  nominal  value,  with  tailored  due  diligence  

•  Strengthen    requirements  for  consultaEon  with  Indigenous  Peoples  

•  LimiEng  the  environmental  footprint  of  real  property  operaEons  

•  IdenEfying  opportuniEes  for  departments  to  share  their  special  purpose  real  property  

What  we  are  proposing  

 Direc8ve  on  the  Management  of  Real  Property  

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Planning  and  Governance  

 

GOVERNANCE  

PLANNING  

PROCESSES  AND  SYSTEMS    

INVESTMENT  IN  ASSETS  

InvesEng  in  assets;  avoid    deferral  of  maintenance.    

Timely,  informed  real  property  decisions  are  supported  by  processes,  systems  and  asset  performance  data.  

Asset  management  strategies  are  based  on  performance  informaEon  and  inform  departmental  investment  plans.  

Requirements  targeted  to  a  designated  senior  real  property  official,  named  by  deputy  head.  

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Stewardship  

 

SHARING  REAL  PROPERTY  

GREENING  

ABORIGINAL  RIGHTS  AND  INTERESTS  

STREAMLINED  AND  CLARIFIED  

Requirements  from  exisEng  Appraisal  and  Es,mates  Standard,  Accessibility  Standard  and  Fire  Protec,on  Standard  have  been  streamlined  and  clarified.  

Strengthening  requirements  to  consult  and  engage  Aboriginal  groups  throughout  the  life  cycle.  

LimiEng  the  environmental  footprint  of  real  property  in  a  manner  consistent  with  government  objecEves  for  sustainable  development  and  GHG  reducEon.  

Encourages  an  enterprise  –wide  focus  by  removing  barriers  to  co-­‐locaEon,  with  the  objecEve  of  encouraging  porholio  raEonalizaEon  and  shared  use  of  real  property  assets.    

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Acquisi8on  

 

ASSESSMENT  OF  NEED  

OPTIONS  ANALYSIS  

DUE  DILIGENCE  

REAL  ESTATE  PRACTICES  

Due  diligence  requirements  prior  to  acquisiEon  of  real  property  are  clarified.  

ExaminaEon  of  opEons  prior  to  acquisiEon  to  support  decisions  that  are  cost-­‐effecEve  over  the  life  cycle  of  the  asset.  

Need  to  acquire  real  property  should  be  based  on  program    requirements  and  government-­‐wide  objecEves.  

Acquire    real  property  in  a  fair  and  transparent  manner.  

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Assessing  and  Managing  Underu8lized  or  Surplus  Real  Property    

 

PERFORMANCE  INFORMATION  

STAKEHOLDER  ENGAGEMENT  

MANAGEMENT  STRATEGY  

TRANSFERS  OF  ADMINISTRATION  

Develop  a  transfer,  disposal  or  management  strategy  based  on  Crown  needs,  legal  obligaEons,  market  condiEons  and  costs.  

Engagement  of  other  departments,  Aboriginal  groups  with  established  land  rights,  and  other  stakeholders  to  inform  a  strategy  for  asset  transfer,  disposal  or  management.  

Use  performance  informaEon  to  idenEfy  property  or  buildings  that  are  underuElized  or  inefficient  for  possible  raEonalizaEon,  decommissioning  or  disposal.  

Transfers  of  administraEon  between  federal  departments  to  be  conducted  at  nominal  value.    

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Disposal  of  Real  Property  Outside  the  Federal  Government  

 

ROUTINE  VS.  STRATEGIC  

ABORIGINAL  ENGAGEMENT  

PUBLIC  PURPOSE  

ROLE  OF  CLC  

Priority  organizaEons  can  acquire  the  enEre  site  only  if  substanEated  by  public  purpose  needs.  

Ensuring  Aboriginal  rights  and  interests  are  respected  throughout  the  disposal  process  through  consultaEon  and  accommodaEon;  addiEon  of  self-­‐governing  Aboriginal  groups  to  the  priority  circulaEon  list.  

Disposal  classificaEon  simplified;  the  disEncEon  between  rouEne  and  strategic  disposals  has  been  eliminated.  

Canada  Lands  Company  CLC  Limited  can  only  acquire  certain  surplus  real  property  (criteria  unchanged),  and  must  make  best  efforts  to  address  idenEfied  public  purpose  interests  in  the  site.  

Horizontal  Engagement  -­‐  Cross  funcEonal  focus  groups  organized  to  discuss  the  

Policy,  how  to  promote  integraEon  and  improve  management  pracEces.  

Func8onal  Communi8es  -­‐  Engagement  of  exisEng  working  groups  and  communiEes  

of  pracEce.  -­‐  Focus  groups  on  key  themes/issues  as  required.  

Wri]en  Feedback  -­‐  Drak  instruments  on  GCPedia.  -­‐  Formal  request  for  wrilen  feedback.  -­‐  Discussion  on  GC  Connex.  

Approach  to  Consulta8ons    

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Next  Steps  

•  Complete  consultaEons  with  key  stakeholders  and  revise  drak  policy  instruments  

•  External  to  government  discussion  with  key  interest  groups.    

•   Seek  internal  approvals  within  TBS,  followed  by  Treasury  Board    

•  Release  approved  policies  and  develop  guidance,  tools  and  training  prior  to  implementaEon  date  

•  Implement  and  monitor  revised  instruments  and  support  users  through  the  first  year,  to  ensure  effecEveness  and  determine  whether  any  adjustments  are  required