Breaking New Ground—Stories from Defence Construction Breaking_new_ground | Page 101

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
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