1234 - Facilities Management & Transaction Management Services - Market Sounding

Infrastructure Ontario (“IO”) is seeking input from the market on best practices, options and opportunities to inform the development of their next generation service delivery model. IO continues to explore its real estate strategy and service delivery model and as such, input from the market consultations will serve to inform the development of IO’s service delivery model, scope of services and agreement. The objective of the market consultations will be to better understand the below identified outcome topics.

IO is encouraging any organization that wishes to participate to submit a written response to any or all of the identified outcome topics for further exploration. IO reserves the right to invite any organization to participate in a meeting at their sole discretion. This is not part of a procurement activity and participation in responding will have no affect on any future procurement activities.

Background:

IO is responsible for a real estate portfolio consisting of 35 million square feet of owned space, 10 million square feet of leased space and approximately 130,000 acres of land.

IO is aspiring to integrate the IT platforms and data across all services and platforms where IO is responsible for the services including Realty ops and P3s. Over time, IO will be evolving to take on additional accountability for integrating the corporate real estate services.  In addition, IO has made the decision and is in the early stages of moving the General Ledger in-house. As you respond, please consider what may be required as IO moves through both the IT integrator and the GL journey. For each of the outcome topics, please discuss the approach, risks, opportunities and rationale in your response.

For clarity, this is not a procurement activity and there are no evaluation activities, therefore please do not prepare any materials on your organization’s capabilities. The market consultations are intended to focus on the below outcome topics only.

Outcome Topics:
 

1. What is the best practice to drive value in the Management Fees, including gearing ratios and repurposing resources?
2. What would incentivize Service Providers to drive performance and efficiencies, including rebalancing service levels, identifying savings opportunities, bringing forward and executing new initiatives (outside / in), etc.?
3. In order to better understand and manage service providers risk profile, what risks are you willing to take on and what would cause the profile to change from a pricing perspective?
4. How do you suggest we design and roll in KPI structures for new IO Clients, where the size and type of property will be quite different?
5. What is the best practice model for transactions including the sharing of commission revenues?

1. What Portfolio and Asset management strategies are being implemented in the industry to create and maximize value and which of the identified strategies could be beneficial for IO? 
2. How is the industry creating better value in the project identification phase, to better identify the selection of the projects, projects options and/or use of a challenge function on the identified options? 
3. How can IO obtain value through project classification for the delivery of projects?
4. What is the best approach to drive the extension of useful life while balancing with risk impact to service provider?

1. How is the industry investing capital and/or leveraging operating budgets in portfolios in order to improve the FCI?
2. What innovative approaches are being adopted in the circumstance where client budgets are insufficient to meet the required FCI investments?
3. What sustainability programs are being implemented in the industry and how are they incorporating COVID-19 related impacts?
4. What are service providers doing to drive energy and sustainability initiatives including energy savings, resilience, GHG reduction, etc. and what is the appetite and most appropriate mechanism for them to invest in their client’s portfolio?
5. How can IO ensure that service providers are integrating Leased Properties in their portfolio and investment strategies?

1. How do you envision the future role of Facilities Managers (Owner the house)?
2. What is the industry doing to enhance and leverage Supplier engagement, including Tier 2 Suppliers to improve the delivery of services?
3. How is the industry integrating smart buildings into the Service Delivery approach?
4. Where is the industry heading and what advancements have been made in regards to 24/7 Smart Buildings Centralized Operations Centers with the capability to remotely operate, analyze and control building systems?  Please indicate to IO what are the dominant technologies used in the market today? 
5. How is the industry integrating smart building technologies with the Facility Management and Building Operations Teams (call center, predictive failures, project commissioning, capital planning, energy management, air quality, environmental management, etc) to maximize efficiency and enhance client experience? 
6. How is the industry leveraging Master Services Integrators (MSI's) to enable and accelerate their smart buildings initiatives?
7. What considerations should IO take into account regarding its future Smart Buildings/MSI strategy?   
8. In future, where IO plays the role of the integrator, how can IO ensure fair value and continuous support as it evolves to their future state as indicated above?

1. How is the industry approaching Leasing, Lease Administration and Landlord Management to provide an end-to-end integrated service delivery?
2. How is the industry integrating and optimizing occupancy and space management, including tracking use (smart buildings) across the entire portfolio including leased properties?
3. What is the best approach to managing a regional portfolio with large volumes and varied asset classes?
4. What are the IT capabilities available to manage a portfolio of IO’s size?
5. What leasing obligations and/or clauses are becoming leading practice and how are leasing considerations changing, including effects and obligations due to Covid? (i.e. terms, clauses, obligations, etc.)
6. What is the optimal approach to managing conflict of interests? 
7. Can you describe the current state of the leasing market in selected Municipalities across the province including trends and a 5-year forecast?
8. What innovative methods are you seeing in the industry to deal with negotiated market transactions including the structuring of lease renewals to provide flexibility?

1. Where is the industry heading from an IWM strategy and space information (Integrated Source of Truth) perspective and what do you believe is the best practice?
2. What is the best practice to ensure that data is accessible and accurate on a portfolio level to ensure a harmonized intake process including data from Leased Properties, Owned Properties and P3s for all types of work?
3. How can IO ensure that their service provider provided IT platform and infrastructure remains current throughout the term of the agreement? 

1. How does your procurement practices include Equity, Diversity and Inclusion focus and how can IO increase representation of small and medium sized businesses?
2. How are Service Provider procurement platforms beneficial to IO and how do they impact the objectives to the question above in 6(a)?
3. How do you measure and ensure value for money in your procurement outcomes.?
4. How do you ensure transparency and mitigate conflict of interest in your procurement activities?

1. If IO were to go to market with separate bundles, should lease administration services be bundled with Transaction Management services or Facility Management services? Please explain the rationale behind your response.

1. What is the appropriate term of the agreement to realize the maximum value while balancing complacency, innovation and future proofing?

1.  What other considerations do you think that IO should explore as they undertake this journey?
2. How can IO ensure appropriate skills and capabilities for their varied asset classes (i.e. data centers, courthouses, jails, office, etc.) from a Service Provider?
3. Based on your previous experience responding to similar procurement events in the past, is there anything that may discourage you from responding to a future IO procurement event for outsourced services?