1 / 10

Union of National Defence Employees

Union of National Defence Employees. Developing a Strategy in regard to Defence Construction Canada August 17, 2011. Purpose of Presentation. Provide background information on Defence Construction Canada (DCC) Provide some insight as to why National Defence (DND) may use DCC

faunia
Download Presentation

Union of National Defence Employees

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Union of National Defence Employees Developing a Strategy in regard to Defence Construction Canada August 17, 2011

  2. Purpose of Presentation • Provide background information on Defence Construction Canada (DCC) • Provide some insight as to why National Defence (DND) may use DCC • Findings and Issues discovered from site visits • Identify potential issues/challenges with the DND/DCC relationship • Identify possible strategies to protect /enhance CE/UNDE members’ positions

  3. Background info on DCC • Defence Construction Canada formal name is Defence Construction (1951) Ltd. • Mandate, approved by Treasury Board through DCC’s Annual Plan, “….provide a wide variety of property-related services to support the Department of National Defence in the management of its facilities' infrastructure needs…” • Mandate last reviewed in 2001 by Minister of PWGS and was not changed

  4. Background info on DCC • Services & number of employees continue to grow – close to 90o people and still hiring • DCC is funded 100% by DND – no other sources of revenue • Revenue level over $ 700 million (2009/10)– • All profits/losses by DCC are returned/covered by DND as part of next year budgeting process

  5. DCC is an Agent Crown Corp • Reports through Minister of PWGS • Own employer but looks like a government department • Are encouraged to adhere to most TB Policies • Must follow Financial Admin Act (Sec 32/34) • Auditor General of Canada is designated auditor for DCC

  6. Why DND uses DCC • Facility operations not core to DND mandate • No staffing issues for DND • No formal contract between DND and DCC – just a MOU for services • Payment to DCC comes from O&M budget and not salary budget • Perceived cost savings but no business case • Back door method of downsizing

  7. Site Visits and Findings • Team has visited several Bases/Support Areas; Quebec, Ontario, Saskatchewan, others to be arranged • Consistent issues found at each location • Growth of DCC in all areas • Limited/no hiring of CE staff • Increased time for RFPs • Some evidence of fraud – further investigation is required • Project charging issues • DND senior staff joining DCC • Where are the business cases to support use of DCC

  8. Problems with increasing the use of DCC • CE employees increasingly out of loop, by-passed, unable to complete assignments due to lack of resources • Quality of work, oversight of contractors, security clearances for contractors’ staff • No real consultation with existing staff/UNDE about increasing use of DCC • DND still accountable for facilities and projects but has no “organization” to carry out due diligence role

  9. Strategies to Consider for Protecting-Enhancing Positions • Assume DCC is not going away , UNDE National Executive to consider various strategies to approach DND Management to discuss issue • Need to be proactive in DND’s strategic review • Set up UNDE/DND Committee to review DND custodian management requirements/structure • Consider expanded roles for CE employees in area of contract management • Return DCC to original role/mandate

  10. Next Steps • Finalize site visits and information gathering – visits can be arranged through Regional VP • Continue to examine/analyze P3 contract for CSE HQ in Ottawa – need to stop the trend • Start to “build the movie” and be ready when Parliament returns next month to demonstrate how much DCC is really costing DND and Canadians

More Related