Evidence of meeting #22 for Government Operations and Estimates in the 40th Parliament, 3rd Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was contract.

A recording is available from Parliament.

On the agenda

MPs speaking

Also speaking

John McBain  Assistant Deputy Minister, Real Property Branch, Department of Public Works and Government Services
Frank Brunetta  Assistant Deputy Minister, Departmental Oversight Branch, Department of Public Works and Government Services
Charles Rate  President, SNC Lavalin Operations and Maintenance (O & M)
Martin Lefebvre  General Manager, Public Works and Government Services Canada, SNC Lavalin Operations and Maintenance (O & M)
Justin Sharp  Senior Vice-President, Facility Management, SNC Lavalin Operations and Maintenance (O & M)
Clerk of the Committee  Mr. Marc-Olivier Girard

5 p.m.

President, SNC Lavalin Operations and Maintenance (O & M)

Charles Rate

It really comes back to that discussion we had in camera.

5 p.m.

NDP

Pat Martin NDP Winnipeg Centre, MB

Well, I'm not asking for a dollar figure so much as 80-20 or 50-50. No one knows what your markup is, except those of us in this room. So I don't think there's anything commercially sensitive about your telling me how much is billable, of the $5.4 billion, in the sense that you can add your markup to it and make earnings from it.

5 p.m.

President, SNC Lavalin Operations and Maintenance (O & M)

Charles Rate

That would be about 50%.

5 p.m.

Senior Vice-President, Facility Management, SNC Lavalin Operations and Maintenance (O & M)

Justin Sharp

Yes, approximately 50% is in that category, and the other 50% is in the operations and maintenance category.

5 p.m.

NDP

Pat Martin NDP Winnipeg Centre, MB

Well, that's very helpful. That gives me an idea of how much it's costing us, above and beyond the actual cost, to have you employed by us.

5 p.m.

Senior Vice-President, Facility Management, SNC Lavalin Operations and Maintenance (O & M)

Justin Sharp

Maybe if we could clarify that as well, if the work were being done by a landlord, for example, in the lease portfolio of the government, which is a significant portfolio, you would be paying a substantial fee on top of that—more so than is the case here.

5 p.m.

NDP

Pat Martin NDP Winnipeg Centre, MB

I'm not a big fan of that lease buyback thing either, frankly.

5 p.m.

Senior Vice-President, Facility Management, SNC Lavalin Operations and Maintenance (O & M)

Justin Sharp

Oh, I'm not speaking of that. It's only in the normal practice, as you know, for lease portfolios.

5 p.m.

NDP

Pat Martin NDP Winnipeg Centre, MB

Well, I don't mind people marking stuff up. I'm just saying that when it gets into hundreds of millions of dollars a year, maybe we should be revisiting this idea and maybe it should be done in-house, if as a taxpayer we could show a business case that it would be cheaper for us to do it in-house. Perhaps you're the wrong people to ask, but I think a lot of Canadians would agree that we should save a couple hundred million dollars and do it in-house.

5 p.m.

Liberal

The Chair Liberal Yasmin Ratansi

Could you wrap up? You have 40 seconds.

You're done? Okay.

Thank you for being here. I think you had two requests from Madame Faille. One was for the performance report.

Did I hear you correctly? Did you ask for the performance report—

5 p.m.

Bloc

Meili Faille Bloc Vaudreuil—Soulanges, QC

Yes.

5 p.m.

Liberal

The Chair Liberal Yasmin Ratansi

—that was being conducted?

5 p.m.

Bloc

Meili Faille Bloc Vaudreuil—Soulanges, QC

Despite the 27 risks?

5:05 p.m.

General Manager, Public Works and Government Services Canada, SNC Lavalin Operations and Maintenance (O & M)

Martin Lefebvre

The 28 risks.

Key performance indicators—

5:05 p.m.

Liberal

The Chair Liberal Yasmin Ratansi

Key performance indicators. So—

5:05 p.m.

Bloc

Meili Faille Bloc Vaudreuil—Soulanges, QC

Since they have had the contract. I think it was Brookfield before, in 2005.

5:05 p.m.

Liberal

The Chair Liberal Yasmin Ratansi

Okay, and how soon can we get it? Can we get it by June 16? Yes.

And the second thing was a copy of the fairness monitoring report.

5:05 p.m.

President, SNC Lavalin Operations and Maintenance (O & M)

Charles Rate

We don't have that.

5:05 p.m.

General Manager, Public Works and Government Services Canada, SNC Lavalin Operations and Maintenance (O & M)

Martin Lefebvre

It's actually a Public Works document.

5:05 p.m.

Liberal

The Chair Liberal Yasmin Ratansi

So we can request it from Public Works.

5:05 p.m.

General Manager, Public Works and Government Services Canada, SNC Lavalin Operations and Maintenance (O & M)

Martin Lefebvre

We'd be very interested in seeing it, though.

5:05 p.m.

A voice

Oh, oh!

5:05 p.m.

Liberal

The Chair Liberal Yasmin Ratansi

Okay.

I'd like to thank you for being here.

I will suspend the meeting for 30 seconds, and then we have committee business to deal with.

Committee members, we have before us some business. We have a notice of motion that was presented by Ms. Coady.

I understand, Ms. Mendes, you are going to be speaking to it.

June 7th, 2010 / 5:08 p.m.

Liberal

Alexandra Mendes Liberal Brossard—La Prairie, QC

I will.

5:08 p.m.

Liberal

The Chair Liberal Yasmin Ratansi

Okay. Go ahead, Ms. Mendes.