Purpose
The purpose of Policy Notification (PN)-43U2 is to adjust Real Property Contracting Directorate contracting services rates to reflect rates of pay in the recent signed/ratified Collective Agreements and to update the Memorandum of Understanding (MOU) template and MOU Appendix C Real Property Contracting with Public Services and Procurement Canada dated April 2018.
Effective date
This policy notification is effective immediately.
Introduction
This Policy Notification PN-43U2 supersedes PN-43U1, Use of Architectural & Engineering and Construction Services Contracting Authorities, released 25 March 2015.
Background
This PN was first issued in 1999. It was updated in March 2001, April 2009 and again updated in March 2015. It was designed to reduce the risk to government in contracting for Architectural and Engineering (A&E), and Construction services as these requirements can deal with complex technical, health and safety, and project management issues.
As A&E and Construction Contracting Authorities had previously only been given to the former Department of Public Works (prior to its merging with the Department of Supply and Services), for their use of their own technical resources, it was perceived that any other department accessing these higher contracting authorities may pose a risk, not only to the individual department but also to the Department of Public Works.
The initial PN-43 was therefore created to ensure that for such contracts, for which PWGSC was the Contracting Authority, adequate risk management approaches were used by the PWGSC Acquisitions Program (AP) contracting community to ensure, in advance, that projects managed by client department Technical Authorities were undertaken with an appropriate level of: (i) contracting; and (ii) technical expertise.
In situations where Real Property Services (RPS) was the Technical Authority, AP accepted that the appropriate level of understanding and technical expertise existed to ensure an acceptable level of risk to Canada. However, where a client department was to be the Technical Authority, AP was to assess the risks inherent in the planned procurement. This analysis was to include a confirmation that the client had the required capacity (including the appropriate construction management capabilities and procedures), and that the client department was willing to accept the related responsibilities. RPS was to assist AP in the overall assessment of the client department's required capacity.
Upon obtaining a favorable assessment, the Director of the client department responsible for the project was to sign a short certification document outlining the responsibilities of the client department, allowing AP to proceed with the requirement. If the assessment was unfavorable, the client department was informed in writing of the reason(s) for which contracting services from AP would not be provided. The client department would then have to make internal modifications or avail themselves of the RPS technical services to carry-out the project.
Application
When Real Property Services (RPS) is the Technical Authority/Project Manager for an A&E or Construction services project, it is accepted that the appropriate level of technical expertise will be applied to the development and management of the project. Real Property Contracting (RPC) of AP will therefore provide its full range of RPC services to RPS.
When a client department intends to serve as the Technical Authority/Project Manager for an A&E or construction services contract, put in place under the authority of the Minister of Public Works and Government Services Canada, it is the sole responsibility of the client department to assess and to determine that they have the required capacity (including the appropriate construction management capabilities and procedures). The division of responsibilities between the Technical Authority and the Contracting Authority are clearly defined in the document Appendix C, Real Property Contracting with Public Works and Government Services Canada
. With this document, the client department and
RPC will work together to formalize a project/program specific
MOU. This
MOU will confirm that the client has the required capacity and accepts the related responsibilities. The
MOU must be signed before
PWGSC agrees to undertake the service or work specified in the requisition.
Summary of changes
Documents related to the Use of Construction and Architectural and Engineering Services Contracting Authorities have been updated. Real Property Contracting with Public Works and Government Services Appendix C replaced Real Property Contracting with Public Works and Government Services Appendix B in its entirety, and the Memorandum of Understanding template has been updated.
Contacts
Any inquiries are to be addressed to Real Property Contracting Directorate at – tpsgc.pasgacadami-apcaamsrpcd.pwgsc@tpsgc-pwgsc.gc.ca