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Table of Contents
Letters of Transmittal.................................................................................................................................2
Introduction.................................................................................................................................................3
Who We Are.................................................................................................................................................4
Risk Management.......................................................................................................................................6
2006-2007 Results at a Glance.................................................................................................................7.2006-2007 Performance Results............................................................................................................�0
. Goal.I.–.Effective.and.value-added.service............................................................................................�0
. Goal.II.–.Sustainable.property.infrastructure.........................................................................................�4
GoalIII–Partnershipsthatbenefitgovernmentandcommunities........................................................20
2006-2007 Financial Results...................................................................................................................22
For More Information...............................................................................................................................29
Appendices............................................................................................................................................... 30
A–OrganizationalChart........................................................................................................................ 30. B–KeyPiecesofLegislation.................................................................................................................3�
ThisannualreportisalsoavaialbleinelectronicformatfromtheDepartment’swebsiteatwww.spm.gov.sk.ca
2
Letter of Transmittal
HisHonourtheHonourableDr.GordonL.BarnhartLieutenantGovernorofSaskatchewan
May.it.please.Your.Honour:
IrespectfullysubmittheAnnualReportforSaskatchewanProperty.ManagementforthefiscalyearendingMarch31,2007.
ClaySerbyMinisterofPropertyManagement
TheHonourableClaySerbyMinisterofPropertyManagement
IhavethehonourofsubmittingtheAnnualReportforSaskatchewan.PropertyManagementforthefiscalyearendingMarch31,2007.
DebMcDonaldDeputyMinister
3
Introduction
The2006-07fiscalyearmarkedSaskatchewanPropertyManagement’ssecondyearasagovernmentdepartment.TheDepartmentisworkingtofurtherimproveperformancemeasuresinfutureperfor-manceplans,andthisworkwillbereflectedinfutureannualreports.
ThisreportmeasurestheDepartment’sworktoprovideeffectiveandvalue-addedservicesforclients,toprovidesustainablepropertyinfrastructure,andtocreateandmaintainpartnershipsthatbenefitgovernmentandcommunities.Aswell,anumberofactionsarerelatedtotheGovernment’sGreenStrategy,ashighlightedintheResultsataGlancesection.
Thisannualreportdescribesresultsfromthe2006-07PerformancePlan,whichcanbefoundat:http://www.spm.gov.sk.ca/docs/spm_performance_plan_2006-07.pdf
Thegovernment-wideplanandbudgetdocumentsareavailableat:http://www.gov.sk.ca/finance/budget/budget06/budgetsummary.pdf
4
SaskatchewanPropertyManagement(SPM)managesthevastandvariedinfrastructureandassetsrequiredfortheprovincialgovernmenttodelivernecessaryservicesandprogramming.Whetherthatisprovidingreliabletransportation,findingadequateofficespaceforpublicservantstoworkin,makingsuremailreachesitsdestination,orimplementingnewtelecommunicationstechnology,SPMservesthegovernment,oftenbehindthescenes.Byprovidingefficientandeffectiveservicesforday-to-dayoperations,SPMsupportsotherdepartmentsbyenablingthemtofocusontheirspecificmandatestoservethepeopleofSaskatchewan.
Vision
• Toprovidethebestpropertymanagementandsupportservicesforbestvaluetopublicagencies. inSaskatchewan
Mandate
• Tosupportpublicagencyprogramdeliverybyprovidingbestvalueforclientrequirementsinthe areasofaccommodation,propertymanagement,furnishingsandsupplies,transportation,purchas- ing,riskmanagement,recordsmanagement,telecommunicationsandmailservices
SPM by numbers
• 834.5fulltimeequivalentemployees• Leasesorowns774buildings• Ownsmorethan5,200vehicles•. Operates.6.aircraft• Housesover140,000boxesofarchivestorage• Processes25millionpiecesofmailperyear• Purchases$125millioningoodsperyear• Manages$1.9billionworthofproperty(replacementvalue)
Commercial Services
•. Transportation–TheCentralVehicleAgency(CVA)providesvehiclesandfleetmanagement. servicestoexecutivegovernmentdepartments,someCrowncorporations,andotherpublicly. fundedorganizations.AirtransportationservicesincludeAirAmbulanceServicetoresidentsand ExecutiveAirServiceforelectedofficials.
•. Purchasing–Thisbranchconductscompetitionsforpublicservicegoodsandservices.
•. Relocation Services–Afullrangeofrelocationservicesismanagedforgovernmentemployees.
•. Records Management–SPMprovidesacentral,securestoragefacilityforwarehousingand. retrievinggovernmentdocumentsanddisposalofdocumentsfollowingSaskatchewanArchives . Board.approval.
•. Mail Services–SPMhandlesmailforgovernmentdepartments,boards,commissions,crown. corporations,andsomeauthorizedpublicagencies.
•. Distribution Centre–Thiscentreprovidesofficeandjanitorialsuppliestoclientsandachieves. savingstogovernmentbybulkpurchasingandcentralizedwarehousing.
Who We Are
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Accommodation Services
TheAccommodationServicesdivisionensuresthatgovernmentdepartmentsandagencieshavetheofficeandprogramspacerequiredtodelivergovernmentservices.Itprovidesplanning,constructionprojectmanagement,buildingoperationandmaintenance,leasing,propertypurchase,realestate,propertydisposal,security,andfurniture.
Corporate Support Services
CorporateSupportServicesdivisionincludeshumanresources,financialservices,centraladministra-tion,andriskmanagementservices.ThedivisionsupportstheprogramareasoftheDepartmentbyprovidingcentralizedbudgeting,accounting,internalaudits,humanresourcesandconsultativeser-vices,payrollandadministrativeservices,learninganddevelopment,aswellasriskmanagementandinvestigativeservices.Thedivisionalsodevelopsthestrategicplan,departmentalpolicies,andbusinessimprovementinitiatives.
Information Services
TheInformationServicesdivisionmanagesSPM’sinformationtechnologyassetsandmaintainsandoperatesallthedepartmentalsoftwareapplications,suchasShopSPM.Thedivisionalsoprovides.servicestogovernmentdepartmentsandagencies,includingCentrexandVoIPphoneservicesand.theweb-basedgovernmentdirectory(www.gtds.gov.sk.ca).
ThisdivisionalsomanagestheDepartment’sgeneralcommunications,suchasthewebsite.and.publications..
6
Risk Management
Asabuildingowner,projectmanager,andemployer,SaskatchewanPropertyManagementhasamoralandlegalresponsibilitytomanagerisk.SPMisrequiredbyfederalandprovinciallegislationandmunicipalbylawstoprotectthepublicwhouseourbuildings,thetenantswhoworkinourbuildingsandouremployees.
Aninternalriskmanagementteamconductsanannualriskreview,usingavarietyoftechniques,includinginterviewingkeypersonnel,conductingsiteinspectionsofhighvaluefacilities,andreviewingbothexternalandinternalreportsgeneratedfromavarietyofsources.
ThefollowingisasummaryofthekeyrisksfacingtheDepartmentandourplansandactivitiestomanagetheserisks.
• AgingInfrastructure
SPMmanagestheriskofaginginfrastructurethroughongoingpreventativemaintenanceaswell. assystematicinformationgatheringandanalysis.Accessibilityimprovements,fireprotection,and majorpreventativemaintenancearehighpriority,whileotherprojectsaredeterminedbybuilding conditionandprogramneeds.Whenkeyfacilitiesarenolongermeetingrequirements,SPMconsid- ersmajorretrofits,capitalimprovements,replacement,orevendecommissioningofthebuildings.
• SuccessionPlanning
SPMvaluesitsemployeesandtheircollectivewealthofknowledgeandskills,andfacesthesame demographicchallengesasotherNorthAmericanemployers.Toactivelyrecruitandretainvaluable. employees,SPMisimplementingaformalsuccessionplancalledBuildingFutureLeaders,imple- mentingabroaderseriesofsupervisoryandleadershipmodulesforstaff,workingwiththePublic ServiceCommissiontoimplementmarketsupplementswhenrequired,andencouragingsupportive policiesandpracticesalignedwiththeStatementofOrganizationalCulture.
• MarketRisk
SPMfacestheconstantriskofanunpredictableandever-changingmarketplace.Volatilefuelprices andrisingleasecosts,forexample,haveasignificantimpactonSPM’soperations.Toadjustand. respondtothedynamicmarketconditions,SPMcontinuallyreviewshowwellitsprogramsand . practicesaremeetingtheneedsofitsclients,andconductsongoingreviewsofitsoperationalcosts.
• BusinessContinuityManagement
SPMneedstobeabletorespondtoclientneedsintheeventofanemergency.SPMismanaging. thisriskthroughthedevelopmentofdisasterrecoveryplans,businesscontinuityplanning,. pandemicplanning,andotherrelatedactivities.
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Summary of Performance Results
Contributing to the Government of Saskatchewan’s Green Strategy• Threegovernmentfacilitieshavebeenupgradedatacostof$1.7milliontoachieveanoverall. decreaseinenergyconsumptionof16percentforthesefacilities.• TheSaskatchewanDiseaseControlLaboratory,thereplacementofthe1913sectionoftheRegina. CorrectionalCentre,andCenturyPlazainReginahavebeendesignedtoachieveinternational. LeadershipinEnergyandEnvironmentalDesign®(LEED)certification.• Ninety-fiveE-85vehicles(capableofusing85percentethanolblendgasoline)havebeenpurchased. in.2006-07.• Althoughopportunitiestoenhancepaperrecyclingwereinvestigated,itwasdecidedthatseparating typesofpaperdoesnotsignificantlyenhancerecyclingprocesses.• SPMpurchased18.9millionkWhsofgreenenergy(windgeneratedelectricity)in2006-07,. representingapproximately23percentoftheelectricityrequirementsofgovernment.
Other significant initiatives• VoiceoverInternetProtocol(VoIP)isarelativelynewtechnologythatallowsphonecallstobe. madeviatheinternetinsteadoftraditionalphonelines.Aswitchtothistechnology,whichSPMwill. implementoverthenextthreeyears,willtranslateintosignificantsavingsforgovernment.SPM’s headoffice,CenturyPlaza,isalreadytransferredtoVoIP.• SPMownssixaircraftforthegovernment,threeofwhichareusedforAirAmbulanceandthreefor ExecutiveAir.AnagingfleethasnecessitatedthepurchasesoftwonewKingAirB200aircraft,and. onepreviouslyleasedKingAirB200aircraftwasalsopurchased.In2007-08,oneKingAirB200 aircraftwillbemovedfromAirAmbulancetoExecutiveAirtoreplaceadecommissioned. Cheyenneaircraft.
2006-07 Results at a Glance
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Summary of Financial Results
EffectiveApril1,2005,SaskatchewanPropertyManagement(SPM)wasestablishedtoreplacethe.SaskatchewanPropertyManagementCorporation.
MostoftheDepartment’sprogramsoperateontheprinciplesofsharedservicesandnetbudgetingwhicharesetoutinlegislationinThe Financial Administration Act, 1993.TheActallowsfordepartmentsto.providesharedservicestootherdepartmentsandtochargethosedepartmentsforthecostsof.those.services..
Thecostofsharedservicesisallocatedtodepartmentsandthiscostisdescribedasinternalrecoveries,becausethedepartmentsreceivingthoseservicesareinternaltotheGeneralRevenueFund(GRF).In.essence,SPMchargesdepartmentsforaccommodation,transportationandotherservicesprovided.tothem.Thesechargesarereflectedinthefinancialresultsfortherespectivedepartments.
TheActalsoallowsaformofnetbudgetingforservicesprovidedbyadepartmenttogovernment.organizationsthatareoutsideofexecutivegovernment.Theprovisionofservicestoandrecoveryof.thecostofthoseservicesfromagenciesexternaltotheGRFaredescribedasexternalrecoveries..SPMchargesarecoveryfee(price)forthoseservices.
FollowingtheDepartment’spricingprincipleofcostrecovery,theexpensesofSPM’sCentralManage-mentandServicessubvoteareallocatedtoprogramsubvotesandthosecostsarereflectedinthefullcostrecoveryratestructure.ThecostofprovidingExecutiveGovernment’spurchasingfunctionis.appropriatedandisnotrecoveredthroughchargestodepartments.Someothercostsarenot.recovered.and.are.directly.appropriated..In.2006-07.these.costs.include:• OperationsandMaintenanceoftheLegislativeAssembly;• EnergyPerformanceInvestments;and• WindEnergy.
TheDepartment’s2006-07expenditurebudget(appropriation)was$34.266million,including$24.324millionforcapitalassetacquisitions.Inthefallof2006,theLegislatureapprovedanadditional$2.8millionrequiredtoprovideforthebuy-outofaleasedaircraft.ThisadditionalfundingallowedSPMtocontinuetoprovidethesamelevelofairserviceforthePremier,CabinetMinisters,MLAs,andtheLieutenantGovernor.Furthermore,inthespringof2007,theLegislatureapproved$5.1millionforthedecommissioningcostsrelatedtotheagreementtotransfertheSourisValleyRegionalCareCentretotheCityofWeyburn..Inadditiontoappropriatedfunds,theDepartment’sfundingalsoincludesrecoveryofcostsrelatedtosharedservicesandnetbudgeting.IntotaltheDepartment’sbudgetedfundingrepresentsactivityof$279million,summarizedas:
2006-2007 Funding. Budget Actual ($000s) ($000s)
TotalAppropriation 34,266 41,427
ExpensesallocatedtoDepartments 180,277 190,320
Expenseschargedtoexternalclients 64,571 65,190
TOTAL 279,114 296,937
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Theactualactivityin2006-07was$297million;avarianceof$18million.Thevarianceisdueinlargeparttoanincreaseinappropriationforanaircraftleasebuy-outandspecialwarrantfundingtocoverthecostsassociatedwiththetransferoftheSourisValleyRegionalCareCentre.Inaddition,SPM.recoveredthecostoftwoairambulanceaircraftfromtheDepartmentofHealth.Resultsbysubvote.andprogramareaaresummarizedinsubsequentpagesoftheannualreport.Detailedpayee.informationwillbepublishedinVolume2ofthe2006-07PublicAccounts.
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SaskatchewanPropertyManagementisguidedbythegovernment’saccountabilityframework,andcontinuallyworkstoimprovetransparencyandaccountabilitybyitsreportingprocess.Goodreportingpractices,whichincludeidentificationandmonitoringoftargets,improveperformanceandassist.programmanagersanddepartmentsinmakingmoreeffectivedecisions.
SaskatchewanPropertyManagementisworkingtowardsettingtargetsthatreflectindustrystandardsandgiveamorecomprehensivepictureoftheconditionofgovernmentinfrastructureandassets.AsthisworkisincorporatedintheDepartment’sperformanceplans,theAnnualReportwillreflectthoserefinedmeasuresandtargets.
Thekeyactionsoriginallypresentedinour2006-07planarelistedbelow,followedbyareporton.actualprogressforeach.Resultsareincludedforallkeyactionsandperformancemeasuresthatwerepublishedinour2006-2007PerformancePlanaswellasforallcommitmentsrelatedtoSPMinthe.government-wide2006-2007PerformancePlanSummary.
AdditionalinformationaboutSPMperformancemeasuresfor2006-07canbefoundonthe.Department’swebsiteatwww.spm.gov.sk.ca.
Goal I – Effective and value-added service
Objective 1 – Cost effective services for clients
SaskatchewanPropertyManagementdeliversarangeofsupportservicestodepartmentsandagen-ciesoftheGovernmentofSaskatchewan,includingaccommodation,transportation,maildelivery,andnewtechnology.Byprovidingthesesupportservicescentrally,SPMisabletocaptureeconomiesofscale,whichhelpensureeffectiveandefficientoperationandlowerthecostofservicestoSPMclients.
SaskatchewanPropertyManagementcontinuallyevaluatesitsrangeanddeliveryofservicestoensuretheDepartmentispursuingandachievingitsmandateofmeetingtheneedsofclientsbydeliveringtherightservicesatanappropriateprice.BecauseSPMtakesresponsibilityforthesesupportservices,individualdepartmentsandagenciesaremoreabletofocusontheirspecificmandatesinsteadof.day-to-dayoperationalimperatives.
Key results
• EvaluatepotentialchangestolocationsonSPMinter-officemailnetworktoensurecost-effective servicedeliveryforallusersofgovernmentinter-officemail.[2006-07.planned.result]
o Theevaluationhasbeencompleted.AproposedreorganizationoftheReginaoperationwas . . delayed.due.to.a.labour.disruption.
• Investigateopportunitiestoenhancepaperrecyclingtoprovidegreaterreturntogovernmentby separatingvarioustypesofpaper.[2006-07.planned.result]
o Theinvestigationwascompleted.Itwasrecommendedtoretainthestatusquo,asseparating typesofpaperdoesnotenhancetherecyclingprocess.
• Implementimprovementsininventorymanagementinseveralbusinessunitsfollowingtherecom-. mendationsmadeintheinventoryoptimizationreviewcompletedin2005-06.[2006-07.planned.result]
o TheDistributionCentrestockroomhasreduceditsoperationalinventoryofofficeandpaper products,andMailServicesisphasingouttheuseofprepaidenvelopes.
2006-07 Performance Results
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Measurable results
1. Price comparisons for SPM office space compared to the private sector
Result: 2.3%belowprivatesectormarketprice(September2006)
SPMownsandleasesspaceinbuildingsonbehalfofgovernment.Inturn,SPMleasesthisspacetoindividualgovernmentdepartments.Thisperformancemeasureshowsthecost-ef-fectivenessofcentralizedaccommodationservicesprovidedtogovernmentdepartmentsandagenciesbycomparingthegrossrentalrateforofficespaceinReginaandSaskatoon,totheprivatesector.Thesetwocitiesareusedforthe.baseline.since.they.represent.6�.per.cent.of.SPM’stotalofficebuildingspaceandcompara-tivemarketofficespaceinformationisreadilyavailable.Programspacethatisdesignedforaspecificfunction,suchasacorrectionalfacilityorcourthouse,isexcludedfromthismeasure,astheprivatesectordoesnottypicallyprovidereadilycomparablefacilities.
SPM’slevelofinfluenceoverthisperformancemeasureishigh.SPMcaninfluencetheratesforofficespacebyhowandwhenitacquiresaccommodation,throughqualityspecifications,timingofnegotia-tionsandRequestsforProposals,andbuild,buy,leaseanalysisanddecisions.
2. Central Vehicle Agency (CVA) pool price compared to Public Service Commission private vehicle usage rate.
Result: TheCVAprice*($0.278/km)is32.6%belowthePublicServiceCommissionrate($0.413/km). . (November2006)
SPMassemblesafleetofvehiclesandrentsthemtogovernmentdepartmentsandagencies.Throughbulkpurchasingandfleetmanagement,SPMcanpasssignificantsavingstoclients.Apoolofvehicleslocatedthroughouttheprovinceisavailableforshort-termuse.CVAchargesaper-kilometrefeetocoverallfixedandoperatingcosts.for.the.pool.vehicles..An.alternative.is.to.payemployeestheprivatevehicleusageratesetbythePublicServiceCommission.
SPM’slevelofinfluenceoverthismeasureishigh.SPMhassignificantinfluenceonitspricesforshort-termvehicleusage,althoughithasnoinfluenceonthePublicServiceCommission’sprivatevehicleusagerate.
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3. CVA pool price compared to market price.
Result: TheaverageCVApoolprice*($0.297/km)is29.8%belowtheaveragemarketprice($0.416/km). . (November2006)
Thecomparisonisbasedonanaverageofthreerentalcompanyratesforavarietyofonetothree-daytripsforamid-sizedvehicle.
SPMhassignificantinfluenceoveritsownpriceschargedtogovernmentdepartmentsandagen-cies,andnoinfluenceovermarketprices.
Objective 2 – Enhanced client service delivery
Asaclient-drivenorganization,SPMgoesbeyondcentralizedaccommodationandsupportservicestoprovideservicedeliverysystemsthatmeetitsclients’needs.Technologyisessentialtoprovidingvalue-addedservicesforclients,andSPMplaysanimportantroleinevaluatingandimplementingservicesthatcanimproveefficiencyandeffectiveness.
Key results
• Continuewithsystemandcapacityenhancementsforthegovernmentrecordscentretoensure. governmentagencieshaveappropriate,secure,low-coststorageforinactivegovernmentrecords. . [2006-07.planned.result]
o TheDistributionCentreacquiredanadditionaltwotothreeyearsofcapacity—approximately $36,000worthofarchivalshelving,or17,000boxes.
• UpgradepostalmeteringandassociatedequipmentinSPMmailroomsandatclientsitesaround theprovincetoensurecompliancewithnewCanadaPoststandardstobeputinplaceinDecember 2006.Newstandardsincludeapplicationofbarcodesonoutgoingmailthatwillallowforhigher. efficiencyinsortingmailbyCanadaPost..[2006-07.planned.result]
o Thisprojectissubstantiallycomplete,withminorsoftwareandequipmentissuesstill. beingaddressed.
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Measurable results
1. Percentage of clients satisfied with service received for government support, accommodation, transportation and purchasing services
SPMsurveysitsclientseverytwoyearstodeterminesatisfactionwithitsprogramsandservices.RespondentsareaskedtorateSPM’sservice,valueformoneyandneedsmetusingafive-pointscalefrom“verysatisfied”to“verydissatisfied.”Theinitialsurveyin2004usedafour-pointscale,sodirectcomparisonisnotpossible.Thenextsurveywillbeconductedin2008andwillonceagainuseafive-pointscale.
SPMhasahighlevelofinfluenceonthismeasuresinceitdeterminesthenature,level,priceandmeansofservicedeliverytoclients.Atotalof83SPMclientsweresurveyedinMarch2006and68responseswerereceived.Theresponsesprovidealevelofaccuracyofplusorminus5.1percent,95timesoutof.�00.
ThefollowingperformancemeasureindicatesthepercentageofSPMclientsthatareeithersatisfiedorverysatisfiedwithSPMservices,valueformoneyandneedsmet.. . . . . .
Governmentsupportservices 72.46%
Accommodationservices 64.72%
Transportation.services. �4.33%
Purchasingservices 71.98%
Overallrating 72.55%
(March2006)
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Goal II – Sustainable property infrastructure
Objective 1 – Appropriate facilities and equipment for clients
ProvidingappropriatefacilitiesandequipmentforSPMclientsinvolvesmanagementofalifecyclefromassessmentandacquisitionthroughmaintenanceandenhancementand,insomecases,ultimatedisposalofassetsnolongerrequired.ThedegreetowhichgovernmentemployeeshaveadequatespacetoworkandthetoolstodotheirworkeffectivelyandefficientlyhasadirectimpactonthelevelofserviceprovidedtotheSaskatchewanpublic.
Key results
• Identifylong-termprogramandspacerequirementneedsinconsultationwithclients.Focuswillbe onworkingwith: - JusticeforcourtfacilitiesinLloydminster,Regina,andcircuitpoints; - SIASTlong-termrequirementsforallcampuses;and - CorrectionsandPublicSafetyforcorrectionsfacilitiesinSaskatoonandPrinceAlbertand foryoungoffenderfacilitiesacrosstheprovince.[2006-07.planned.result]
o ConstructionhasbeencompletedatReginaQueen’sBenchCourtHouseandMeadowLake. AboriginalCourt,havecommencedatYorktonBroadcastPlaceandPunnichyCircuitCourt,and design/planningisunderwayatanumberofotherlocationsintheprovince. o AdditionalshopspacehasbeenaddedatKelseySIASTCampus,andanewInter-professional SimulationLearningCentrewillbeaddedfortheNursingprogramatWascanaCampusin. summer2007.RenovationplansarefinalizedatthePalliserSIASTCampus,withconstruction scheduledtostartsummer2007. o Constructiontoreplacethe1913portionoftheReginaProvincialCorrectionalCentreisapproxi- mately30percentcompletewithanticipatedcompletionin2008-09.
• Refinethelistofcoregovernmentfacilitiesbasedonclients’needsinordertoallocatelimited. capitalandmaintenancefundingtopriorityfacilities.[2006-07plannedresult] o Minorchangeshavebeenmadetothelist,whichnowincludes154buildingsin71facilities.
• Implementastrategytocontinuetomeetthegovernment’sairtransportationrequirements... [2006-07.planned.result] o OneleasedKingAir200aircraftwaspurchased.Inaddition,twonewKingAir200aircraftwere purchasedforAirAmbulance.In2007-08,oneKingAirB200aircraftwillbemovedfromAirAmbu- lancetoExecutiveAirtoreplaceadecommissionedCheyenneaircraft.
• TransformpublicsectorcommunicationsplatformutilizingCommunityNetandVoIPtoachieve. savingsandtoenhancepublicaccesstogovernmentservices..[2006-07.planned.result]
o SPMplanstoconvertapproximately10,800CentrexlinesandhandsetsbelongingtoExecutive. GovernmenttoVoIPduringthenextthreeyears.Thiswillbeaccomplishedinpartnershipwith theInformationTechnologyOfficeandSaskTel.
• Canvasclientstoreviewvehiclerequirementsandidentifythenumberandtypeofvehiclesrequired tomeetclientneeds.[2006-07.planned.result]
o SPMcompiledandreviewedclientrequirements,andorderstomeettheseneedsweremade March21,2007.
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Measurable results
1. Proportion of facilities meeting long-term client program needs
Result:. 63.6%.(March2006)
SPM’sperformanceinmeetingclients’needs,serviceandvalueexpectationsisassessedthroughasurveysenttoclientseverytwoyears.Sincetheinitialsurveyin2004usedafour-pointscaleinsteadofafive-pointscaletodeterminesatisfaction,resultscannotbedirectlycompared.Thenextsurveywillbeconductedin2008andwillonceagainuseafive-pointscale.
2. Average annual distance traveled per government vehicle.
Result: 26,136km(August2006)
Theaverageannualnumberofkilometres.traveledpervehicleintheSPMfleetisan.indicationoftheextenttowhichthevehiclesareneededandusedbygovernmentdepartmentsandagencies.Alownumberofkilometrestrav-eledpervehiclemightsuggestunder-utilization,whileahighnumberofkilometresmightsuggestmorevehiclesarerequired.
SPM’sinfluenceoverthismeasureisindirect..Asaserviceprovider,SPMdeterminesthecom-positionofthefleet.However,clientsdeterminetheextenttowhichvehiclesareutilized.
3. Vacancy rate for office space.
Result:. 0.�%.(August2006)
Whileitisprudenttohavesomeunusedcapacityinitsbuildingstoallowforperiodicmovementandchangesofpeopleandprograms,SPMbelievesitisimportanttohavearelativelylowvacancyratetominimizethecostofunusedspace.Thisperformancemeasureisdesignedtodemon-stratetheeffectivenessofSPMinmanagingthegovernment’sspaceportfolio.SPMofficespaceinReginaandSaskatoonisusedforcomparativepurposesinestablishingvacancymeasurements,because.it.collectively.represents.6�.per.cent.of.SPM’stotalavailableofficespace.
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Objective 2 – Affordable and sustainable infrastructure
Withmorethan500buildingsownedbySPM,akeychallengeistomaintainthespacetoensurefutureviability.Limitedcapitalspendingforasustainedperiodhascreatedabacklogofmaintenanceandmajorcapitalupgradingofbuildings.Asaresult,SPMmustplaneffectivelyforthefuturecondition.oftheinfrastructureandexploreimprovedmethodsofsustainableassetmanagement.
SPM’sstrategyistoconcentratefinancialinvestmentsontargetedcorefacilitiesthatareoccupiedbyhighpriorityprogramsandwhichwillbeviableforthelong-term,consideringcondition,functionanduse.Fundingforremainingfacilitiesisprimarilyallocatedonthebasisofoccupantsafetyandhigh.priorityregulatorycodes.
ExistingperformancemeasurescoverthetwomostsignificantareasprovidedbySPMtoclients:.accommodationandvehicles.
Key results
• Implementmajorcapitalconstructionprojectsforthefollowingfacilities: - ReginaProvincialCorrectionalCentre - SaskatchewanDiseaseControlLaboratory. . . . [2006-07.planned.result]
o ConstructionontheCorrectionalCentreisapproximately30percentcomplete,and. constructionontheLaboratoryisexpectedtobegininsummer2007.
• UpdatethecapitalplanforcorefacilitiesbasedonSPM’spriorityratingsystem.[2006-07.planned.result]
o Afiveyearcapital/maintenanceplanhasbeendeveloped.
Capitalandmajormaintenanceprojectsplannedfor2006-07includeworkinthefollowingbuildings:
La Ronge.
MistasniukPlace Projectcomplete
Moose Jaw..
CourtHouse Projectsubstantiallycomplete
SIASTPalliserCampus Constructionscheduledforsummer2007
North Battleford.
KramerPlace Inconstruction–anticipatedcompletionsummer2007
MentalHealthFacility Planningstudyunderway
Prince Albert
CorrectionalCentre Constructiontostart2007-08
L.F.McIntoshBuilding Multi-yearretrofit–inconstruction
PineGroveCorrectionalCentre Projectcomplete
SIASTWoodlandsCampus Projectcomplete
Regina
CenturyPlaza Projectsubstantiallycomplete
CooperPlace Inconstruction-approximately60%complete
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DunningPlace Projectsubstantiallycomplete
LloydPlace Projectcomplete
SIASTWascanaCampus Projectcomplete
WalterScottBuilding Inconstruction–anticipatedcompletionin2008-09
Saskatoon
SaskatchewanResearchCouncilPilotPlant Inconstruction
SturdyStoneCentre Projectcomplete
Swift Current
E.I.WoodBuilding,SwiftCurrent Indesign
Yorkton
KuziakBuilding Projectcomplete
• Upgradeaccessibilityineightgovernmentbuildingsatanestimatedcostof$1.2million... [2006-07.planned.result]
PrinceAlbert,L.F.McIntoshBuilding Ongoing
Regina,CooperPlace Ongoing
Regina,WascanaCentreInfrastructure Constructionscheduledtobeginin2007-08
Regina,515HendersonDrive Designcompletedin2006-07;
Constructiontobegin2007-08
Yorkton,KuziakBuilding Scheduledforcompletionsummerof2007
o Fiveoutofeightprojectsarecurrentlyproceeding(seeabove). o Estimatedcosthasbeenrevisedto$1.52millionduetoescalatingconstructioncosts.
• Implementpricingforlife-cyclecostsfornewand“re-life-ed”facilities:
- Regina–LloydPlaceandCenturyPlaza;
- MeadowLake–equipmentstoragebuilding;
- Carlyle–equipmentstoragebuilding;and,
- Yorkton–weighscale.
. . . . [2006-07.planned.result]
o LifecyclechargesarebeingappliedtoLloydPlace,CenturyPlazaandtheExecutiveAir. administrationbuildinginRegina,andtotheequipmentstoragebuildinginMeadowLake. commencingin2006-07.
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Objective 3 — Reduce the environmental impact of government operations
Key results
• Upgradethreegovernmentfacilitiesatacostof$1.7milliontoachieveanoveralldecreaseinenergy consumptionof16percentforthesefacilities.[2006-07.planned.result]
o Boththemen’sandwomen’sCorrectionalCentresinPrinceAlbert,aswellasthemen’s. CorrectionalCentreinSaskatoonwereupgradedanddeliveredonbudget. o Upgradesarecomplete,andtheenergyperformanceanalysiswillbecompletedJuly2007.
• PlananddesignthenewportionsoftheReginaCorrectionalCentre,theSaskatchewanDisease ControlLaboratoryandCenturyPlazainReginatoachieveinternationalLeadershipinEnergyand EnvironmentalDesign®(LEED)certification.[2006-07.planned.result]
o BoththeReginaCorrectionalCentreandtheSaskatchewanDiseaseControlLaboratoryareon tracktobeLEED®“Certified”or“Silver”whentheyarecompleted. o SPMwillapplyforLEED®certificationforCenturyPlaza.
• Continuetoassesstheavailability,costandviabilityofhybridandalternativefuelvehicles,for. applicabilitytogovernmentvehicleapplications..[2006-07.planned.result]
o Ninety-fiveE-85vehicles(capableofusing85percentethanolblendgasoline)havebeen.. . purchased.in.2006-07.
• Purchase18.9millionkWhsofgreenenergy(windgeneratedelectricity)whichrepresentsapproxi-. mately23percentoftheelectricityrequirementsofgovernmentatacostof$400,000.. [2006-07.planned.result]
o Thistargethasbeenachieved.
Measurable results
1. Average condition of government buildings (Facility Condition Index)
Result:. 20%.(November2006)
Tokeepbuildingsinagoodstateofrepairtomeetgovernmentprogramrequirementsandtoprotectpeopleandtheinvestmentingovern-mentassets,SPMmustcontinuallymeasuretheconditionofgovernmentbuildings.TheindustrymeasurementforfacilityconditionistheFacil-ityConditionIndex(FCI).ThelowertheFCI,thebettertheconditionofafacility,whilethehighertheindexthegreaterchancethefacilityisshow-ingsignsofdeterioration.AlowerFCIisalsoageneralindicatorofalowerdeferredmaintenancebacklog.Thelevelofcapitalandmaintenancefundingavailableforgovernmentbuildingswilldirectlyaffectthisperformancemeasure.
2004 200� 20060
�
�0
��
2020
Progress to date
Per
Cen
t
3026
2�
30
3�
�9
2. Average age of vehicles
Result:. 4.7.years.(September2006)
Theaverageageofvehiclesisanindicationofthe.overall.condition.and.sustainability.of.the.SPMfleetofvehiclesandtheneedforreplace-ment.SPMhasamoderatelevelofinfluenceoverthismeasure.Eachyear,SPMsurveysclientstodeterminevehiclerequirements,.includingthenumberandtypeofvehiclesrequired;however,governmentdeterminestheamountoffundingavailabletopurchasevehicles.SPMalsosetsguidelinesforvehiclereplacement;however,thedecisiontoretainorreplaceavehicleonceitexceedsthereplace-mentguidelinesrestswithdepartments.andagencies.
3. Average mileage on vehicles.
Result:105,101km(September2006)
Theaveragemileageofvehiclesisanindication.of.the.overall.condition.and.sustainability.of.the.vehiclefleet.SPMhasamoderatelevelofinfluenceoverthismeasure.SPMdeterminestheamountoffundingavailabletopurchaseorleasevehicles.Eachyear,SPMsurveysclientstodeterminevehiclerequirements,includingthenumberandtypeofvehiclesrequired.SPMalsosetsguidelinesforvehiclereplacement;however,the.decision.to.retain.or.replace.a.vehicle.once.itexceedsthereplacementguidelinesrestwithdepartmentsandagencies.
2003 2004 200� 2006�
2
3
4
� 4.7
Progress to date
Yea
rs
�.��.�
�6
7
2003 2004 200� 2006�00
�0�
��0
Progress to date
Th
ou
san
ds
of
kms
105,027
���
�20
107,735
111,513
105,101
20
Goal III – Partnerships that benefit government and communities
Objective 1 – Facilitate economic development
AsGovernment’sprocurementagent,SPMisresponsibleforobtaininggoodsandinformation.technologyservicesonbehalfofgovernmentdepartmentsusingafair,openandcompetitiveprocess.Intheprocurementprocess,SPMendeavourstoobtainthebestvalueforgovernmentwhileseekingtofacilitateahighproportionoflocalsuppliersintheprovisionofgoodsandservices.
Key results
• Followingconsultationsin2005-06,makepolicyrecommendationsregardingprocurementfrom SaskatchewanAboriginal-ownedbusinesses..[2006-07.planned.result]
o SPMhasdevelopedapolicytoencourageAboriginal-ownedbusinessestoparticipateinthe procurementprocess,whichwillbeimplementedin2007-08.
Measurable results
1. Goods and information technology services sourced in Saskatchewan through SPM’s Purchasing branch.
Result: 76.8%*.Thismeasurerecognizesprocurementcanbeaneffectivetoolinpromotingprovincialeconomicactivityandmeasurestheproportionofgovern-mentbusinessbeingsourcedwithintheprovince.SPMhasamoderatelevelofinfluenceoverthismeasure.SPMestablishestheprocurementprocesstoobtainbestvalueforgovernmentand,concurrently,toencourageclientdepartmentstosupportSaskatchewansuppliers.
* Excludes contracts for the purchase of aircraft, as these are one-time purchases of goods not available in Saskatchewan.
2003 200� 200770
7�
Progress to date
Per
Cen
t
��.2
�0
��
2004 2006
79.9
77.3* 77* 76.8*
Resultsarethree-yearaveragesendingMarch31of.each.year.
2�
Objective 2 – Constructive relationships with industry
SPM’srelationshipwiththeconstructionindustryandthesuppliercommunitygoesbeyondacquiringaccommodationandsupportservicesrequiredbygovernment.TheDepartmentcultivatesasolidwork-ingrelationshipaimedatknowingandunderstandingthesectorswithwhichwework.ThishelpsSPMensureweobtainthebestvalueforclientsandbuildsconfidenceamongsuppliersthattheprocure-mentprocessisfair,balanced,andtransparent.
Key results
• Reviewbusinessprocessesforgovernmentacquisitionofservicesandmakerecommendationsto. bringaboutamoreconsistentapproachforservicecontractingbyallgovernmentdepartments. . [2006-07.planned.result]
o SPMhasconductedseveralprocurementtrainingsessions/workshops(includingservice. contracting)forthedepartmentsofCommunityResources,InformationTechnologyOffice,and. Environment,andhasworkedwithJusticetoconductalegalreviewofourcompetitionand agreementtemplates. o SPMiscurrentlyworkingonaguidetoservicecontractingforgovernmentprocurement.. . personnel..
• Investigate,research,anddevelopoptionsforgovernmenttoreceiveandevaluatebidsubmissions . electronically..[2006-07.planned.result]
o ElectronicbidsubmissionwillbeaddressedaspartofSPM’soverallwebstrategy,which. includesSaskTenders.Implementationisplannedfor2007-08.
• HostathirdPurchasers’Showcaseinearly2007thatbringstogetherbuyersandSaskatchewan suppliersinterestedinsellinggoodsandservicestothepublicsector..[2006-07.planned.result]
o SPMsuccessfullyhelditsthirdPurchasers’ShowcaseonMarch21,2007,withpositivefeedback fromparticipants.
Measurable results
1. Level of industry satisfaction when dealing with SPM’s Purchasing branch.
Result:. 92.6%.(December2004)
SPMhasaresponsibilitytoensuresuppliershaveconfidenceinthegovernmentprocurementprocess.AsuppliersurveyisusedtomeasuresuppliersatisfactionwithSPM’sprocurementprocess.Asurveywasdistributedto3,281supplierswith487replies,ora14.8percentresponse.Supplierswereasked.in13questionsusingafour-pointratingscale,rangingfrom“verysatisfied”to“verydissatisfied”in.ratingtheirdealingswithSPM’sPurchasingbranch.Theperformancemeasureindicatesthepercent-ageeither“satisfied”or“verysatisfied.”ThenextsurveywillbeconductedinMay2007,andwillbeincludedinnextyear’sannualreport.
22
2006-2007 Financial Results
Central Management and Services (PM01)
. Estimated Actual Variance Notes ($000s) ($000s) ($000s)
ExecutiveManagement 614 410 (204 1
CentralServices 7,712 7,618 (94 1
AccommodationServices 607 607 —
AllocatedtoServicesSubvotes (8,933 (8,635 298 1
— —
Accommodation Services (PM02)
. Estimated Actual Variance Notes ($000s) ($000s) ($000s)
OperationsandMaintenanceofOwnedProperty 80,380 72,470 (7,910 2
OperationsandMaintenanceofLeasedProperty 49,324 48,944 (380 2
AccommodationCostsIncurredonBehalfofthe
LegislativeAssembly 2,818 2,753 (65 2
ProgramDeliveryandClientServices 24,091 34,863 10,772 3
WindEnergy 400 400 —
EnergyPerformanceInvestments 2,140 1,954 (186 4
AccommodationAllocatedtoDepartments (109,494 (116,733 (7,239 5
AccommodationChargedtoExternalClients (41,481 (38,036 3,445 5
8,178 6,615 (1,563
) )
)
)
)
)
)
)
)
)
)
)
)
)
Thefollowingtableoutlinesinformationonactualandbudgetedexpensesandcapitalassetspendingbysubvotesandprograms.CapitalassetspendingincludesamountsspentoncapitalacquisitionsonbehalfofotherdepartmentsforwhichSPMrecoveredtheexpenditures.Thetablealsoidentifiestheamountsallocatedtodepartmentsasinternalrecoveriesandamountschargedtoclientsexternalto.theGRF.Explanationsareprovidedforsignificantvariances.
23
Project Management (PM03)
. Estimated Actual Variance Notes ($000s) ($000s) ($000s)
ReginaProvincialCorrectionalCentre 14,663 11,182 (3,481 6
SaskatchewanDiseaseControlLaboratory 11,096 2,254 (8,842 7
Other 1,575 5,139 3,564 8
ProjectManagementAllocatedtoDepartments (27,334 (18,510 8,824
— 65
Purchasing (PM04)
. Estimated Actual Variance Notes ($000s) ($000s) ($000s)
Purchasing 1,764 1,527 (237 9
Transportation Services (PM05)
. Estimated Actual Variance Notes ($000s) ($000s) ($000s)
VehicleServices 29,800 32,694 2,894 10
AirServices 7,718 19,796 12,078 11
AllocationtoDepartments (22,455 (35,917 (13,462 12
ChargedtoExternalClients (15,063 (17,471 (2,408 12
— (898
Government Support Services (PM06)
. Estimated Actual Variance Notes ($000s) ($000s) ($000s)
MailServices 10,807 10,957 150 13
TelecommunicationServices 12,192 11,962 (230 14
DistributionCentreandOtherServices 6,022 5,589 (433 15
GovernmentServicesAllocatedtoDepartments (20,994 (19,160 1,834 16
GovernmentServicesChargedtoExternalClients (8,027 (9,683 (1,656 16
— (335
) )
)
)
) )
) ) )
)
)
)
)
) )
)
)
)
)
)
24
Asset Disposal (PM09)
. Estimated Actual Variance Notes ($000s) ($000s) ($000s)
AssetDisposal — 5,100 5,100 17
— 5,100
2�
Major Capital Assets (PM07)
. Estimated Actual Variance Notes ($000s) ($000s) ($000s)
Land,BuildingsandBuildingImprovements 7,100 8,064 964 18
Equipment 17,224 21,024 3,800 19
24,324 29,088
Major Capital Asset Aquisitions
26
Explanation of major variances:
1. Thesavingswereprimarilytheresultofsalarysavingsduetovacanciesanddelaysinthestaffing. process.CentralManagementandServicescostsareallocatedtotheothersubvotes,thetotal. allocationisreducedaccordinglyasactualcostswereallocated.
2. Actualenergyandelectricitycostswerelowerduetolowerutilitypricesandlowerutilizationasa resultofawarmerthanseasonalwinter.
3. Additionalcostofapproximately$11millionduetohigherthanbudgetedspendingonminor/ preventativemaintenanceprojects.Theadditionalspendingwasduetoincreasedclientprojects. Thecostsoftheseprojectswererecoveredfromclients.
4. EnergyPerformanceInvestmentsspendingwaslessthanbudgetduetolabourdisruptioninthe . last.quarter.
5. Recoveriesweremorethanbudgetbyapproximately$4million.Thevarianceisduetohigherthan. budgetspendingforclientcapitalprojectspartiallyoffsetbypricingadjustments($6.5millionin total)thatweremadetoreflectlowerelectricity,energy,andsalarycoststhatoccurredduringthe. year.Thepricingadjustmentwasprovidedtoclientsthroughcreditinvoicesdistributednearthe endofthefiscalyear.
6. ThetimingofthebeginningoftheReginaProvincialCorrectionalCentreprojectwaslaterthan. originallyplanned.Constructionwillcontinuein2007-08.
7. TheSaskatchewanDiseaseControlLaboratoryprojectprogressedslowerthantheoriginal. scheduleduetoachangeinthedesignandthetenderingprocessbeingdelayeduntilJanuary/ February2007resultinginreducedcostsduring2006-07.Constructionwillcontinuein2007-08.
8. TheSIAST–KelseyProject,whichincludedacapitaladditiontothebuilding,wasfundedthrough. SupplementaryEstimatesbyAdvancedEducationandEmployment.
9. ThemajorityofthevarianceinPurchasingisduetosalarycostsavingsresultingfrom.. position.vacancies..
10. TheVehicleServicesvarianceincludeshighercoststhananticipated,mainlyduetoincreasedfuel andrepairexpendituresresultingfromrisingcostsandalargervehiclefleet.
11. TheAirServicesvarianceresultsmainlyfromthepurchaseoftwonewairambulanceaircrafton behalfoftheDepartmentofHealth.Theexpenditureofapproximately$11.8millionwasoffsetby. internalrecoveries.TheDepartmentofHealthpaidforthepurchaseoftheseaircraft,whichare. usedsolelyforAirAmbulanceservice.Otherincreasedcostsincludetheincreasedleasecosts.. related.to.the.buy-out.of.the.leased.aircraft.
12. Transportationchargestodepartmentsandexternalclientswerehigherthanbudgetduetothe recoveryfromtheDepartmentofHealthfortwonewairambulanceaircraftandduetoincreased CVArates.
27
13. TheMailServicesvarianceresultsmainlyfromhigherpostagecostsandpostage. meterpurchases.
14. TheTelecommunicationexpensevarianceislargelyduetosalarysavingsastheprogram. experiencedvacanciesduringtheyear.
15. TheDistributionCentrespentlessin2006-07thananticipatedduetolowerdemandwhich. resultedinlowercostofgoodssold.
16. TheGovernmentServicesrecoveryvarianceistheresultofincreasedactivitylevelsin2006-07. forMailServicesandTelecommunicationServices.
17. Additionalfundingwasprovidedthroughthespecialwarrantprocessfordecommissioning. costsunderthetermsofanagreementtotransferSourisValleyRegionalCareCentretothe. CityofWeyburn.
18. CapitalcostswerehigherthanbudgetprimarilyduetothereclassificationofDunningPlace . renovationprojectasacapitalproject.Additionalfundingwasprovidedthroughvirementsfrom.. other.subvotes.
19. Theequipmentacquisitionvarianceresultsfromanincreasedquantityofvehiclepurchases. andthepurchaseofanExecutiveAiraircraftthroughtheexerciseofaleasebuy-outoption.. IncrementalfundingwasapprovedbytheLegislatureinthefallof2006andtheremaining. differencewascoveredthroughvirementsfromothersubvotes.
2�
ThefollowingtableoutlinesinformationonactualandbudgetedrevenuesthatarecrediteddirectlytotheGRF.. Budget Actual Variance Notes ($000s) ($000s) ($000s)
ReceiptsfromotherGovernments
FederalRevenue 180 6 (174 1
Other — 1,911 1,911 2
TOTAL 180 1,917 1,737
Explanation of major variances:1. The“FederalRevenue”includedinthebudgetreflectedanticipatedrebatesrelatedtoimplementing. LEED®andachievingenergyperformancegoalsthroughbuildingretrofits.Thisprogramwas. changedbythefederalgovernmentandSPMdidnotreceiveanyoftherebatespreviously.. anticipated.2. Themajorityof“Other”revenueisarefundofprioryearexpenses,whichisaccountedforas. GRFrevenue.
2006-2007 GRF Revenues
)
29
ForgeneralinformationaboutSPM,visitwww.spm.gov.sk.ca
OtherimportantSPMwebsites:
www.sasktenders.cawww.sasksurplus.cawww.shopspm.com
ForinformationabouttheGovernmentofSaskatchewan,visitwww.gov.sk.ca
Forspecificenquiriesrelatedtothisreport,pleasecontact:
SaskatchewanPropertyManagementCommunications1920RoseStreetREGINASKS4P0A9phone:(306)787-5959fax:(306)787-8582
For more information
30
Appendix A – Organizational Chart
Minister
Deputy Minister
SaskatchewanPropertyManagement
SaskatchewanPropertyManagement
AccommodationServicesDivision
CommercialServicesDivision
CorporateSupportServicesDivision
InformationServices.Division
AssistantDeputy Minister
AssistantDeputy Minister
AssistantDeputy Minister
AssistantDeputy Minister
3�
Appendix B – Key Pieces of Legislation
Key pieces of legislation for which Saskatchewan Property Management is responsible:
•. The Public Works and Services Act•. The Purchasing Act, 2004.and.The Purchasing Regulations•. The Saskatchewan Applied Science Technologists and Technicians Act.•. The Architects Act•. The Interior Designers Act