TBS Real Property Policy Reset Progress Update RPIC Real Property Na8onal Workshop November 16, 2016
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