Request for Proposals for Royal Canadian Mounted Police E Division Headquarters

Volume 1

Executive Summary

Closing Times:
Technical Proposal:
Wednesday, September 30, 2009
2:00 pm (local time)
Financial Proposal:
Friday, November 13, 2009
2:00 pm (local time)
Delivery Address:
1210 – 800 Burrard Street
Vancouver BC V6Z 2V8
E-mail Address:
edivisionrelocation@pwgsc-tpsgc.gc.ca (for procurement purposes only)

On this page

  1. Executive Summary
  2. The Project
  3. Overview of the Project Agreement
  4. Summary of Payment Issues

1. Executive Summary

1. 1 Purpose of Executive Summary

This summary (the "Executive Summary") is intended as a quick-reference summary and overview to this Request for Proposals ("RFP"), including the draft Project Agreement. Also included in this Executive Summary is background information to the RFP and Canada's objectives for the Project for the purpose of providing context to the reader. Capitalized but undefined terms used in this Executive Summary have the meanings given to them in Volume 2 of the RFP.

This Executive Summary is provided for convenience, being a summary of the other parts of the RFP. It is intentionally not complete and only refers to issues that Canada believes might be helpful to persons who want a quick-reference view of the RFP, the Project and the Project Agreement. This Executive Summary is not intended to define any of the parties' obligations, and will not be referred to in the interpretation of any party's rights or obligations under this RFP.

1. 2 Structure of the Structure of the Request for Proposals

The RFP is structured as set out below, and for convenience has been published in two Volumes:

1. 3 Procurement

As of the date of issuance of this RFP:

  1. the Request for Qualifications phase is complete and a short-list of three Proponents has been selected to participate in the RFP; and
  2. the Project has been approved to proceed to the RFP stage.

Further governmental approval will be required following the completion of the RFP stage and prior to announcement of the Preferred Proponent.

1. 4 Anticipated Project Schedule

The following is Canada's estimated timeline for Project:

Estimated timeline for the RCMP E Division Headquarters Relocation project
Activity Timeline
Issue RFP to Short-Listed Proponents March 30, 2009
Collaborative Discussions between Proponents and Canada April, 2009 - August, 2009
Issue Final Draft Project Agreement August, 2009
Closing date for Proposals
  • September 30, 2009 (Technical)
  • November 13, 2009 (Financial)
Selection of Preferred Proponent January, 2010
Financial Close March, 2010

1. 5 Partial Compensation

  1. The RFP provides that Canada will pay partial compensation in the amount of $750,000 to unsuccessful short-listed Proponents who submit a bona fide Proposal in response to the RFP.
  2. If Canada cancels the RFP prior to the Financial Proposal Closing Time, then Canada will pay each Proponent an amount up to a maximum of $750,000 of substantiated costs reasonably incurred by the Proponent in the preparation of a Proposal.

1. 6 Transparency of the Competitive Selection Process

At the completion of the procurement process, after the selection of the Preferred Proponent and after the Project Agreement is entered into, the project team will prepare a Project Report that describes the outcome of the procurement process and identifies the value for money expected through the public private partnership. In addition, the final Project Agreement will be made public, subject to the severing of information that is commercially confidential. Project Co will be consulted on appropriate severing prior to the release of the final Project Agreement. The Fairness Monitor will issue reports giving an unbiased opinion on the fairness of the procurement. The Project Report and the Fairness Monitor's reports will be made public.

2. The Project

2.1 General

The project (the "Project") is for the design, construction and financing of, and the provision of selected services to, a Royal Canadian Mounted Police ("RCMP") E Division Headquarters (the "Facility") located at the Green Timbers site in Surrey, British Columbia.

The successful entity ("Project Co"), identified through the RFP process, may enter into an agreement (the "Project Agreement") with Canada for the performance of the Project. The Project is a major initiative for Canada and Canada is looking for a partner that understands and appreciates the significance of the Project.

2.2 The New Facility

The RCMP has identified total Functional Program requirements that include:

  1. Site development, utility and special works including Green Timbers Way Works, monument and communication tower
  2. 62,682 useable square metres of office and special purpose accommodations (anticipated to be approximately 68,750 rentable square metres), including:
    1. 51,548 useable square metres of office, support and common service space
    2. 1,508 useable square metres of emergency and operations centre space designed and constructed as a post disaster building
    3. 3,708 useable square metres for a high bay garage/workshop
    4. 5,918 useable square metres of forensic laboratory space
  3. 1,166 rentable square metres of food services space including a kitchen and cafeteria
  4. a minimum of 1,810 above-ground parking spaces and the design and construction of roads and services
  5. LEED® Gold certification

2.3 Phased Construction

It is anticipated that the full Functional Program will be implemented in phases as follows:

  1. the RFP invites Proponents to include in their Proposals, subject to affordability constraints:
    1. designs for the full Functional Program
    2. prices for the design, construction, maintenance and finance of a first phase comprised of a minimum of 46,150 useable square metres (anticipated to be approximately 51,000 that will not include the forensic laboratory
    3. approaches and structures for the optimum implementation of future phases, including the forensic laboratory, to complete the full Functional Program, including the best ways to satisfy lenders' requirements and the best ways to achieve campus-wide efficiencies
  2. the Project Agreement will define the parties' rights and obligations regarding Canada's right to implement future phases

2.4 Project Vision, Objectives and Desired Results

Project objectives and the corresponding desired results are presented in the table below.

Objectives and desired results of the RCMP E Division Headquarters Relocation project
Objectives Desired Results
Supports integrated intelligence-led policing services

A Facility that supports easy coordination of various integrated units both physically and electronically to provide citizens with complete and effective policing services

Supports effective and efficient service delivery

A Facility that is designed to meet current needs

Demonstrates value for money

A Project within affordability limits, that maximizes the value of each dollar spent to build and operate the Facility

Provides for future flexibility

A Facility designed with the flexibility to support organizational and technological change

Is accessible and welcoming to the public and community

A Facility that, while maintaining appropriate security, presents itself as open to the public

Meets national standards

A Facility that meets national standards for design and security

Demonstrates environmental excellence

A Facility that meets the LEED® Canada Gold Standard

Provides urgently needed services to the community in a timely way

Service Commencement in 2013

2.5 Affordability Constraints

The RFP identifies an affordability ceiling that Canada has available for the Project (expressed as a net present cost of the entire Project over the term of the Project Agreement, and also expressed as a maximum first year annual service payment). The RFP provides that:

  1. Canada reserves the right to disregard any Proposal that fails to offer the minimum project scope and within the affordability ceiling
  2. approximately 13 weeks after the issuance of the RFP Proponents will submit an interim financial submission to confirm generally the scope of the Project that can be covered under the affordability ceiling
  3. Canada reserves the right to amend the scope so as to optimize the procurement competition and achieve an affordable project

2.6 Security

The Project and the procurement process will have security requirements. The Proponent, and all major subcontractors, suppliers and key individuals, will need to have appropriate security clearances. Most will have been completed prior to the issuance of the RFP.

The successful Proponent will have to be able to demonstrate that proper security has been maintained with respect to design documentation that contains secure information. For that reason all three Proponents will need to comply with security requirements to control design documentation and information that would be confidential if that Proponent were selected as the successful Proponent.

3. Overview of the Project Agreement

3.1 Summary of Key Terms

The Project Agreement will be the instrument which describes the long term rights and obligations of Project Co and Canada with respect to the Facility.

Summary of key terms used in the project agreement
Project Element Description
General Project Co will design, construct, finance and provide selected services for the Facility.
Financing Canada anticipates contributing a total of $120 million, paid annually, during and shortly after the period of construction, with Project Co providing all additional financing required for the complete Project.
Service Payments Monthly service payments will commence at Service Commencement and will be linked to availability and performance, as set out in Schedule 8 to the Project Agreement.
Term The term of the Agreement ("Term") will commence on Financial Close and continue for 25 years after the initial Target Service Commencement Date.
Lands Canada will own the Site and the Facility for the term of the Project Agreement. The Site will be made available to Project Co during the Term by way of licence.
Design and construction Project Co will be responsible for all Design and Construction over the entire Term, including:
  • Obtaining and paying for all required building / development permits (except Canada will pay any development cost charges for the Project)
  • Site preparation and provision of utilities
  • Green Timbers Way Works
  • Off-site works required by the City of Surrey
  • Procurement, delivery, installation and/or commissioning of specified equipment
Services Project Co will be responsible for: FM and Plant Services; Cleaning and Waste Management Services; Help Desk Services; and Food Services.
Maintenance and Handback Project Co will maintain and return the Facility to Canada in the specified condition at the end of the Term.

3.2 Equipment

Under the Project Agreement, Project Co will be required to:

  1. include the supply, installation and commissioning of specified security equipment (such as security cameras) as part of the Facility
  2. make allowance for and/or install and/or commission specified special equipment to be supplied by Canada or Project Co
  3. accommodate the installation of existing furniture that will be moved to the Building, and act as Canada's representative under a furniture supply and installation agreement that Canada has with Knoll North America Corp for the procurement of new furniture required for the Building

(see Appendix 2G to the Initial Draft Project Agreement).

3.3 Services

Over the term of the Project Agreement, Project Co will be required to provide:

  1. FM and Plant Services (see Appendix 4B to the Initial Draft Project Agreement)
  2. Cleaning and Waste Management Services (see Appendix 4C to the Initial Draft Project Agreement)
  3. Help Desk and Information Management Services (see Appendix 4D to the Initial Draft Project Agreement)
  4. Food Services (see Appendix 4E to the Initial Draft Project Agreement)

3.4 Leadership in Energy and Environmental Design®

Under the Project Agreement (Section 4.7 of Schedule 2), Project Co will be required to obtain LEED® Gold Certification for the Facility from Canada Green Building Council. Project Co will have the discretion to determine which of the credits and points to pursue except that Project Co will be required to achieve certain credits as set out in Schedule 3 to the Project Agreement.

4. Summary of Payment Issues

4.1 Construction Payments

Canada will make monthly payments to Project Co during the Construction Period based on a schedule of payments set out in Appendix 8C of the Project Agreement. Project Co is responsible to finance the balance of the costs of the Project.

4.2 Service Payments

Canada will make monthly Service Payments to Project Co during the Operating Period. No Service Payment will be owing until the Service Commencement Date.

4.3 Service Payment Adjustments

The monthly Service Payment will, as defined in Schedule 8 to the Final Draft Project Agreement, be subject to adjustment for:

  1. Unavailability Deductions
  2. Service Failure Deductions
  3. Energy Gainshare and Energy Painshare adjustments
  4. Insurance payments

The adjusted Service Payment cannot be less than zero.

The criteria and standards of performance of the Services are set out in Schedule 4 [Services Protocols and Specifications] and Schedule 8 [Payments] of the Project Agreement.

4.4 Indexation

Proponents will be asked to propose a fixed proportion of the Service Payment that will be indexed annually. Generally, Canada intends to pay indexation only on those elements of the Service Payment where Project Co's costs are subject to inflation. The agreed proportion of the Service Payment will be indexed annually by CPI.

4.5 Availability Deductions

Failure to meet the Availability Condition will result in an Unavailability Event. Should Project Co rectify an Unavailability Event within the Rectification Period then no Deduction will be made from the Service Payment. Failure to rectify within the Rectification Period will result in an Unavailability Deduction.

Deductions for Unavailability Events will be index-linked and are listed in Schedule 8 [Payments]. If a space in the Facility is Unavailable but Canada continues to use it, the Deduction will be 50% of the normal Unavailability Deduction.

4.6 Service Failure Deductions

Under the Project Agreement the performance standards are categorized into High, Medium and Low according to their level of importance to Canada. Each category has a fixed, index-linked Service Failure Deduction which is applied to each Service Failure of that category.

4.7 Energy

Project Co will warrant that the energy consumption in the Facility, by area per year, will not exceed the design and construction energy target specified in Project Co's Proposal (see Section 2.6.1 of Appendix A). If the target is not achieved, then Project Co will either modify the Facility at its cost, as required, or make a lump sum payment to Canada equal to the lesser of $2,500,000 and the net present value of the cost to Canada during the expected life of the Facility of the amount by which energy consumption by area will exceed the design and construction energy target.

Project Co will share the risk and reward of ongoing energy performance for the "Regulated Energy Consumption" of the Facility .

(See Schedule 20 of the Initial Draft Project Agreement).

4.8 Insurance

The insurance requirements for the Project are described in Schedule 5 [Insurance Requirements] to the draft Project Agreement which provides that Project Co will be responsible for obtaining:

  1. during the Construction Period:
    1. commercial general liability insurance
    2. course of construction "All Risks" property insurance
    3. depending on need, automobile, aircraft, watercraft, marine cargo and key construction equipment insurance
  2. during the Operating Period:
    1. all risks property insurance
    2. boiler & machinery insurance
    3. business interruption insurance
    4. employee dishonesty, workers' compensation, automobile and appropriate insurance, as may be required due to construction activity

4.9 Provincial Sales Tax

Canada is not subject to provincial sales tax, and the Project Agreement will contain provisions which preserve the Project's tax exempt status for all procurement of otherwise taxable goods. Proponents should assume that no provincial sales tax will be payable by any level of project contractor or sub-contractor for this Project.

4.10 Other Tax Considerations

Each Proponent is responsible for obtaining and relying on tax advice from its own advisors and experts, including with regard to its own advance interpretations and rulings from Canada Revenue Agency in relation to the Project (including in relation to the proposed structure and its tax consequences) as it considers appropriate or necessary.

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