large part of the planning and implementation phase, supplied the project manager. In the same time frame, DCC entered into a“ business alliance” with the Director General Infrastructure in NDHQ whereby DCC was that organization’ s preferred service provider.
A Memorandum of Understanding for Joint project Delivery was also signed with PWGSC that established the broad parameters of the working relationship between the organizations when working together on projects. This led to a joint venture undertaking of the facilities management of DND armouries in Southwestern Ontario.
Changes in leadership In January 1995, Lorne Atchison announced to the Board of Directors his intention to step down from the position of Chairman and President of the Corporation at the end of the year. In June 1996, following a selection process managed by the Privy Council Office, the Honourable Diane Marleau, Minister of Public Works and Government Services, announced the appointment of Ross Nicholls as President and Chief Executive Officer. Acting on recommendations of the Treasury Board to improve corporate governance, the position of Chair and President were separated for the first time and Reginald Lewis was appointed Chairman of the Board.
Ross Nicholls joined DCC in Halifax in 1978 after receiving his Bachelor of Science degree from Mount Allison University and Bachelor of( Civil) Engineering degree from Nova Scotia Technical College. Starting at CFB Shearwater, in Nova Scotia, he managed the CFB Summerside, PEI office, subsequently working as a Project Control Engineer in Head Office, Special Project Engineer, and then Area Engineer in the Quebec Region. As his career progressed, he became Special Assistant to the President in Head Office, Ontario Regional Director in Kingston, Vice-President Operations( once again in Head Office), and finally General Manager prior to his appointment as President.
The fee-for-service advantage Between 1995 and 1997, DCC carried out research into cost recovery and billing methods, established billing procedures and practices, and modified internal procedures and information systems to ensure that it was possible to recover its costs through such an approach, at a reasonable cost to the Department. After a brief transitionary use of a“ shadow” system in 1996 – 97, further to the decisions made during the Infrastructure and Environment review, and an agreement with the Assistant Deputy Minister, Infrastructure and Environment, the DCC cost recovery / service billing business model went“ live” on April 1, 1997: fees charged to clients for specific services were now DCC’ s sole source of income. The Corporation became responsible for all current and future cash requirements without the safety net of budgetary appropriations.
The 1997 – 98 Annual Report explained the rationale for the change:
“ The underlying assumption has been that clients will be better able to understand DCC’ s benefits if comparisons can be made at least partly on the basis of cost … This observation has particular merit given the fact that decentralization within the department has given Base and Wing clients direct accountability for program and funding decisions. DCC site personnel must now negotiate the scope and cost of services with these clients at the beginning of each fiscal year.”
From DCC’ s perspective, fee-for-service billing moved the Corporation even further into an entrepreneurship model: instead of securing funding from Parliament via Treasury Board and DND, DCC could determine its own requirements and be directly accountable to government for its performance. A very important benefit of the fee-for-service model is that it allows for meaningful
BREAKING NEW GROUND DEFENCE CONSTRUCTION CANADA
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