Union of National Defence Employees - UNDE
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Transcript Union of National Defence Employees - UNDE
Union of National Defence
Employees
1
DEVELOPING A STRATEGY IN REGARD TO
DEFENCE CONSTRUCTION CANADA
AUGUST 17, 2011
Purpose of Presentation
2
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
Background info on DCC
3
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
Background info on DCC
4
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
DCC is an Agent Crown Corp
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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
Why DND uses DCC
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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
Site Visits and Findings
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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
Problems with increasing the use of DCC
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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
Strategies to Consider for Protecting-Enhancing
Positions
9
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
Next Steps
10
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