Feasibility report (for Asset Based Projects)

Feasibility report (for Asset Based Projects) (Word, 342KB)

<Project Name>
<Location>

National Project Management System

Feasibility Phase

Version: July 2, 2013
Prepared by:
Date:
CPBN:
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Note

The feasibility report (FR) presents the project parameters and defines the potential solutions to the defined problem, need or opportunity. It expands on each of these potential solutions, providing sufficient detail and non-financial evaluations to permit the project leader to recommend to the approving authority all viable potential solutions that should be further analyzed in the next phase (investment analysis report [IAR]). The FR should also justify why any potential solutions were considered to be non-viable or considered to be non-compliant with government policy and/or project objectives and therefore not considered further.

Executive Summary

  1. Statement of the problem/opportunity
    • Problem/Opportunity definition
  2. Previous Approvals, decision or agreements (if applicable)
  3. Special issues to Regional Investment Management Board/Real Property Investment Board (if applicable)
    • Risk management
    • Potential political considerations
    • Timing
    • Legal issues
    • Client issues
    • Department's sustainable development targets
    • Heritage conservation
    • Public sensitivity
    • Recent or ongoing related projects
  4. List options to be analyzed

1.0 Problem/Opportunity Definition

  1. Key Issues (factors driving the initiation of the project)
    • Maintain or improve asset
    • Issues related to insufficient effectiveness of a system
    • Improving environmental performances
    • Possible Opportunity
    • Client Requirements
    • Emergency situation
  2. Previous approvals, decisions or agreements:
    • Regional Investment Management Board decision (RIMB)
    • Real Property Investment Board (RPIB)
    • Treasury Board approvals (TB)
    • Cabinet or Ministerial decision
    • Interdepartmental agreement

Note: This section should not include any indication of the proposed solution. Its purpose is to concentrate on what drives the project.

2.0 Background

2.1 Project History

  1. Short history
    • Relationship to other projects or programs (if applicable)

2.2 Building Condition

  1. Brief description of the building
    • Age, area, location, main characteristics, classification of the building, building owner
    • Environmental performance assessment (BOMA BESt, LEED, etc.)
    • Heritage considerations
    • Strategic value of asset
  2. Future plans for use of asset
  3. Overall condition information from Building Condition Report, Properties Facilities Management, Building Management Plan, Asset Management Plan etc. (if applicable)
    • Building systems (Architectural, Structural, Fire Alarm System, Interior Condition, Mechanical Systems, Electrical Systems, Indoor Air Quality, etc.)
    • Limitations
    • Recent renovations
    • Facility Condition Index (FCI) (if applicable)
    • Upcoming requirements
    • Operational, financial, environmental and functional performance
    • Project related problems and impacts
    • Accessibility
    • Impact of current problem on tenants (if applicable)

2.3 Tenant Considerations

2.4 Strategic Context

  1. Describe how the problems/opportunities relate to current strategies and plans, such as:
    • National Investment Strategy (NIS)
    • Regional Investment Strategy (RIS)
    • Community Based Investment Strategy (CBIS)
    • Portfolio Strategy
    • Strategic Action Plan
    • Asset Management Plan
    • Building Management Plan
    • Client Strategy (Explain the client's long-term and short-term accommodation strategy, if applicable)
  2. Meet with the Portfolio Management Sector, Owner Investor Analyst, Asset Manager, Accommodation Manager and any other relevant stakeholders to ensure that all necessary background information is included; any additional directives from upper management, priorities, budget cuts, strategic and operating review, etc.

2.5 Stakeholders

(Relevant groups who may be implicated in the problem/opportunity)

  1. List all the relevant stakeholders who have an involvement in the problem/opportunity
  2. Briefly describe their stake

3.0 Project Considerations

Highlight any special issues/requirements relative, but not restricted to the following:

4.0 Identification and Analysis of Options

4.1 Options Considered

Note: Status quo must be fully analyzed and the consequences of maintaining the status quo are identified. Refer to Base Case (Status Quo) Scenario.

4.2 Analysis of Non-Financial Factors/Preliminary Risk Assessment

1) Description of options:

Option 1: Status Quo

Option 2

Option 3

2) Advantage and Disadvantage and Preliminary Risk Assessment Table. For example:

The table presents examples of options, their advantages, disadvantages, and preliminary risk assessments for each options.

Options Advantages Disadvantages Preliminary Risk Assessment
(High-Medium-Low)
Option 1: Status Quo
  • Disruption: No added disruptions to elevator service by removing elevators from service for upgrading.
  • Codes and Standards: Does not address non-compliance with current barrier free design, B44 Elevator Safety Code, and safety bulletin from Technical Standards and Safety Authority
  • Future maintenance: Increased capital and maintenance costs due to the replacement of obsolete components of the existing control and drive systems.
  • Tenant satisfaction: Continued tenant dissatisfaction regarding elevator service and reliability including numerous shutdowns and entrapments.
  • Risk of project delays (very low): there is no additional work to be done on the floor
  • Risk of eventual system failure (high): failure of obsolete machinery and energy inefficient operation posing a health and safety risk to occupants and visitors alike
Option 2: Upgrade to Comply With Current B44 Elevator Safety Code Only
  • Health and Safety: The elevator system will have a significant overall improvement to the level of safety.
  • Codes & Standards: Full compliance with current barrier free design, B44 Elevator Safety Code, and safety bulletin from Technical Standards and Safety Authority.
  • Disruption: Disruption to elevator service, as one elevator at a time will be down for approximately four to five weeks for upgrading.
  • Tenant Satisfaction: No improvements in elevator service or reliability.
  • Future modernization: Approximately 15-20% of this work (and costs) would become redundant when a major modernization is carried out in the near future.
  • Energy Efficiency: No energy-related savings as the original drive and control equipment would be retained.
  • Risk of project delays (medium): delays in schedule due to “unknowns” or additional work to meet various Codes & Standards.
  • Risk of cost overruns (medium): increased costs associated with factors unknown before the construction phase
Option 3:
Complete Elevator Modernization
  • Health and Safety: The elevator system will have a significant overall improvement to the level of safety.
  • Codes and Standards: Full compliance with current barrier free design, B44 Elevator Safety Code, and safety bulletin from Technical Standards and Safety Authority.
  • Long-Term Solution: Completely refurbished custom cab interiors that should not require refurbishing for another 10-15 years.
  • Tenant Satisfaction: Significant improvement in elevator service and waiting times with the installation of microprocessor based computerized controls and dispatching as well as increased system reliability.
  • Energy Efficiency: Elevator energy savings of approximately 40% with the installation of solid state motor drives and permanent magnet alternating current gearless drive machines.
  • Recapitalization Project: Staging and timing of other projects within the complex may incur revisiting, upgrading or changing some base building which form part of this project.
  • Disruption: Longest shutdown time for each elevator. One elevator at a time will be out of service for approximately 12 weeks.
  • Risk of project delays (low): delays in schedule due to “unknowns” during the construction phase
  • Risk of cost overruns (low): increased costs associated with factors unknown before the construction phase or inaccurate as-built drawings

Some examples of non-financial factors are the following:

Example of risk factors relevant to each option

4.3 Non-Feasible Options

4.4 Feasible Options

Identify the options which are to be carried forward for in-depth analysis

5.0 Recommended Options for Further Analysis

6.0 Project Team, Approval and Signatures

Position (examples) Organization Name
Project Director    
Senior Project Leader    
Senior Project Manager    
Project Manager    
Prof. and Tech. Resources    
Senior Financial Advisor    
Property Manager    
Other (specify)    
Action Date Signature
Prepared by

Project Leader

   
Reviewed by    
Recommended by    
Approved by    
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