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AFD Frequently Asked Questions

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Q1. What is the Alternative Forms of Delivery (AFD) approach?

Alternative Forms of Delivery, known as AFD, is a service delivery model whereby PWGSC partners with the private sector to deliver real property services, but retains full accountability for standards and performance. In this relationship, the private sector service providers act as PWGSC's "delegated managers", while the Department strategically manages the service and sustains overall relations with federal colleagues.

Q2. Why is this site password protected?

The site has been developed as a business support tool for PWGSC and its service provider, SNC-Lavalin ProFac. Use of the Internet for this purpose will save government resources and ensure that those involved with the program are using a single and accurate source of information. The information is password protected to ensure integrity of the business and relationship between the engaged parties.

Q3. Does SNC-Lavalin ProFac manage all PWGSC properties?

No, the new procurement was designed to replace the previous property management contracts. The contract was expanded from 300 office buildings to 319 office buildings totaling 2.9 million square metres across the country, including buildings in Saskatchewan and British Columbia previously managed through agreements with the provinces. PWGSC manages most of the remaining buildings not included in the SNC-Lavalin ProFac contracts.

Q4. Why was SNC-Lavalin ProFac awarded all 8 contracts?

As with the previous contracts, this new competition was based on achieving best overall value for the Crown and for Canadians. SNC-Lavalin ProFac, a well recognized leader in the provision of real property management and project delivery services, presented the best value proposals, offering to carry out the work for $50 million less annually than budgeted for these activities. SNC-Lavalin ProFac was the top-ranked bidder on each of the eight portfolios available through this competition.

Q5. How many bids were received and who were they from?

Brookfield LePage Johnson Controls, of Markham, Ontario, and SNC-Lavalin ProFac of Toronto, Ontario, two reputable Canadian firms, presented highly competitive and fully qualified bids for each of the eight portfolios in this competition.

Q6. When did the new AFD contracts take effect and how long are they?

The operational start date of the new contracts was April 1, 2005. All eight contracts awarded to SNC-Lavalin ProFac are for an initial term of four years with options at the Crown's discretion for extension up to an additional six years. The first two-year option has been exercised extending the contract to March 31, 2011. There are two additional two-year options remaining.


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Q7. What measures did the Department take to ensure the process was fair, open and transparent?

A number of measures were implemented. PWGSC staff managing existing AFD contracts were segregated from those overseeing the second contracting out competition. A third party review of solicitation and evaluation documents was also conducted. PWGSC consulted extensively with industry and executed a rigorous 10-step evaluation process.

Industry consultation: This procurement featured an unprecedented sharing of information and collaboration between government and industry. Approximately 60 firms attended briefings in five centres across the country. PWGSC shared draft tender documentation with industry whose feedback was instrumental in improving the final statement of work. One-on-one sessions and a bidders' conference were also held.

Ten-step evaluation process: Each portfolio was bid on and evaluated independently. Eight separate evaluations, one for each portfolio, were conducted at a secure site by teams of both real property and contracting experts. A total of 324 requirements per bid, per portfolio, were rated. Proposals were rated for experience, approach, financial assessment and an oral presentation.

Q8. Is PWGSC considering outsourcing other services to the private sector and, if so, what are they?

PWGSC is reviewing its current practices and functions to ensure it provides best value to taxpayers. As part of this departmental review, we are looking at how services can be best delivered through various scenarios including one that would make use of private sector service providers.

Q9. Isn't this exercise pointless if you plan on selling federal buildings?

On October 31, 2007, PWGSC announced that it had closed the sale and leaseback of seven federal office properties. This sale has allowed increased flexibility to explore facilities management agreements with other government departments.

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Q10. Why did PWGSC outsource some of its property management services in 1997?

PWGSC had three key goals related to procuring certain property management services from the private sector, namely to save money, improve responsiveness and eliminate the perception that PWGSC was in competition with the private sector. In 1997, the Department contracted out operations and maintenance of PWGSC facilities in British Columbia and Saskatchewan to those provincial governments and, through a competitive process, assigned the responsibility for some 300 office buildings to the private sector in 13 separate, provincially-grouped portfolios.

Q11. Which company won the 1997 property management contracts?

Brookfield LePage Johnson Controls (BLJC), of Markham, Ontario, was successful in winning all 13 private sector contracts under the 1997 procurement.

Q12. Why did the Department decide to replace its initial AFD contracts?

The decision to replace the contracts was made after PWGSC commissioned several studies which demonstrated that the AFD approach is cost-effective and that clients are satisfied with the service.

The AFD approach offered several benefits, including more responsive services, private sector expertise and innovation, national service standards, higher performance benchmarks and an increased capacity for service delivery. As a result, this new procurement was launched to replace the initial AFD contracts that ended on March 31, 2005.

Q13. Why are there 8 contracts in this procurement when there were 13 in 1998?

PWGSC gained considerable experience from the previous procurement and built upon lessons learned for this second tendering process. To attract firms that could offer a full range of services at the level of quality required, PWGSC believed contracts would be more appealing if they contained sufficient space to generate a large enough portfolio to attract the private sector.

Q14. Why were more buildings included in this new procurement?

The new procurement was designed to replace existing AFD contracts, but was expanded from 300 to 319 office buildings totaling 2.9 million square metres across the country. These include buildings in Saskatchewan and British Columbia that were previously managed through provincial agreements, as well as recently purchased buildings from the private sector. The expanded AFD inventory has been reconfigured into eight portfolios grouped along regional lines, each giving rise to a distinct contract. Portfolios range in size from 200,000 to 450,000 square metres of space. The AFD portfolio distribution is as follows:

  1. Atlantic
  2. Quebec
  3. Gatineau
  4. Ottawa downtown
  5. Ottawa perimeter
  6. Ontario
  7. Western
  8. Pacific

Q15. Why were provincial agreements with British Columbia and Saskatchewan not replaced?

In 2003, the government of British Columbia decided to outsource its first level property management services. Consequently, properties previously included in PWGSC's agreement with the British Columbia Building Corporation (BCBC) have been included in the new procurement for the Pacific portfolio. Leaving PWGSC properties in BCBC's care would have resulted in federal properties being managed by a third-party provider, with the province as a go-between.

Earlier this year the Government of Saskatchewan decided, by mutual accord with PWGSC, that it did not intend to pursue a second federal-provincial agreement to provide real property services in federal buildings. Buildings included in the current agreement with the Saskatchewan Property Management Corporation have been incorporated into the new AFD Western portfolio.

Q16. Are there other differences between the initial and new AFD contracts?

Yes, the new procurement features many enhancements designed to ensure the continuation of top quality service delivery. These include:

  • a more rigorous regime of performance indicators;
  • the implementation of ISO-certified quality management systems; and
  • more flexibility for the service provider to innovate.

PWGSC has also secured options from SNC-Lavalin ProFac for project delivery services valued between $200,000 and $1 million, as well as for facilities management, lease administration and commercial operations. Exercising these optional services is at the Department's discretion, exclusively, and will give PWGSC more flexibility in how it delivers these services in the future, should the need arise.

Date Modified: 2012-09-11

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