Feasibility Report (for Space Projects)

Table of Contents

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 consideration
    • 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. General Information
    • Client requirement
    • Occupancy Expiry Date
    • New Acquisition Date
    • Deadline to exercise lease option(s) (if applicable)
    • Location of space (address)
  2. Drivers
    • Program requirements
    • Current Accommodation not suitable (if applicable)
    • Possible opportunities
  3. Previous approvals, decisions or agreements:
    • Real Property Investment Board (RPIB)
    • Regional Investment Management Board decision (RIMB)
    • Treasury Board approvals (TB)
    • Cabinet or Ministerial decision
    • Interdepartmental agreement
  4. Special Involvement of other departments

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

  • Description of tenants
    • Short description of the relevant history of the client occupancy at this location
    • Date when the client first occupied the space

2.2 Building Condition

  1. Brief description of building
    • Age, area , location, main characteristics, classification of the building, building owner
    • History of occupancy (When did the federal government begin leasing in this building? How was this space acquired initially?)
    • Environmental performance assessment (BOMA BESt, LEED, etc)
  2. Overall condition
    • Building Performance Report (Building-related problems and impacts)
    • Recent renovations, refresh projects or tenant service projects, and fit-up condition
    • Accessibility Report (if not available; must have a confirmation from Property Management on condition, and should include the estimated date that the report will be available)
    • Lease Condition Report (LCR) (if not available; must have a confirmation from Property Management on condition, and should include the estimated date that the report will be available)

2.3 Tenant Considerations

  1. Description of tenants
    • Background information on tenants
    • Inventory of current occupancies for Client Departments
    • Nature of program(s) that may be impacted by this requirement

Inventory of current occupancies in the region Footnote 1

Table Summary

The table presents, for each address or client, the Client occupancy starting date, the expiry date, the options left, the amount of office space occupied, the Special Purpose Space occupied, and the total amount of space occupied.

Name or address Client Occupancy Starting Date Expiry Date Lease Expiry Date Options Left Office SPS Total m2r
m2u  m2r  m2u m2r
Fontaine Apr. 1, 2009 Dec. 31, 2013 Dec. 31, 2022   117.6 129.2     129.2
Monclair May 1, 2010 Mar. 31, 2013 Apr. 30, 2020   1,350.1 1,357.9     1,357.9
Saint-Joseph May 1, 2010 Aug. 31, 2014 Aug. 31, 2014 1 X 5Y 195.6 225.9     225.9
Vincent Massey Aug. 1, 2011 Mar. 31, 2016 Jul. 31, 2036   1,477.0 2,429.0 752.8 884.3 3,313.3
Grand Total 3,140.3 4,142.0 752.8 884.3 5,026.3

Current client(s) occupancies affected by this requirement

Note:  for Special Purpose Space (SPS) and office, even if they are the same rate, they should always be shown separately

Table Summary

The table presents, for each client, the lease number, the occupancy instrument, the type of funding (reimbursing or not), the type of space, the number of FTEs, the amount of space occupied, the number of parking and the occupancy expiry.

Client Lease No OI Funding Type of Space FTEs m 2u m 2r Parking Occupancy Expiry
ABC 123456 4A0000 Non-reimbursing Office
SPS
62 1,000.0
500.0
1,125.6
562.8
2 May 31, 2015
123457 4A0001 Reimbursing Office 46 750.0 844.2 3 May 31, 2015
Total for ABC 108 2,250.0 2,532.6 5  
  1. Impact of current problem/opportunity on tenants (if applicable)
    • Additional tenant costs
    • Disruption of Program
    • Required relocation
    • In-service date
  2. Client liaison activities (if applicable)
    • How client concerns are currently being dealt with

2.4 Strategic Context

  1. Describe how the problem/opportunity relates to current strategies and plans
    • National Investment Strategy (NIS)
    • Regional Investment Strategy (RIS)
    • Community Based Investment Strategy (CBIS)
    • Portfolio Strategy
    • Strategic Action Plan
    • Lease Action Plan
    • Client Strategy (Explain the client's long-term and short-term accommodation strategy)
    • Government of Canada Workplace 2.0 (WP2.0) fit-up standards
  2. Meet with Portfolio Management, Owner Investor Analyst, Asset 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. Also, obtain a copy of the Accommodation Projects 101 Workbook, which explains PSPC's accommodation project processes and helps guide you through the implementation of an accommodation project from start to finish.

2.5 Stakeholders

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

3.0 Project Scope Footnote 2

  1. Requirements
    • Space required: number of FTEs to accommodate, m2 of Special Purpose Space (SPS), m2 of storage (warehouse, training rooms, etc,)
    • Type of space (identify if any non-compliant space or SPS was approved by PSPC)
    • Swing Space (if applicable)
    • Geographical boundaries including justification of boundaries chosen
      • North: _________
      • South: _________
      • West: _________
      • East: _________
    • Identify the City and Province.  Identify unique program and/or operational requirements that may further restrict the geographic boundaries as per the Geographic Boundaries Procedure. This link is available only to clients with access to mySource, the PWGSC/PSPC intranet.
    • Date by which space is required
    • Length of term as required by client
  2. PSPC Space Allocation Limits (see table below)
    • Number of FTEs
    • Space entitlement  (m2u/ m2r) as per Space Allocation Limits (WP2.0)
    • Ratio m2u/FTE (current vs. WP2.0)
    • Determine if space is quasi-judicial; if yes, WP2.0 entitlement is different
    • If client is above m2u/FTE target, justification is required
    • Requirements for compliance to WP 2.0 fit-up standards and exemptions (non-compliant space)

Space Allocation Standards based on future project requirement

Table Summary

The table presents, for each client, the type of space, the number of FTEs, the space allocation limits, the requested space, the variance and the utilization rate.

Client Type of Space FTEs Space Allocation Limits (m2u) Requested Space (m2u) Variance (+/-) Utilization rate
(m2u /FTE)
X Office – General Administration 183 Office 
5 SPS
2,429.12 2,430 0 12.92
Y Office – Public Contact 0 0 0 0 n/a
Z Office – Quasi-Judicial 0 0 0 0 n/a
Total Usable Area Required 188 2,429.12 2,430   12.92

Office Space Calculator

  1. Operational parking requirements (as per the custodial parking policy)
  2. Special considerations (if applicable)
    • Specific location within a building (ground floor, retail space, etc.)
    • Specific type of location
    • Security requirements (highly sensitive)
    • Heritage building
  3. Client demand forecast (if applicable)
    • Factors influencing future demand
    • Likelihood of factors
    • Impact on client requirements
    • Future changes in funding levels
  4. Occupancy commitments (client commitment vs. lease term)
  5. Impact on space envelope and source of client funding (ECF or Non-Reimbursing)

4.0 Identification & Analysis of Options

4.1 Options Considered

**Status quo must be fully analyzed and the consequences of maintaining the status quo are identified. For space projects, Status quo is the option of renewing the lease. Refer to Base Case (Status Quo) Scenario.

  • Identify and describe all reasonable options for satisfying the project requirements
  • It is best to identify a greater number of options and then rule them out
  • Some examples of options for space-based projects are the following:
    • Vacant crown inventory
    • Lease tender call for existing space
    • Renewal in-situ
    • Build-to-lease
    • Lease-purchase
    • Crown-construction
    • Acquisition of an existing building
    • Public-Private-Partnership (a P3 screening tool was developed for larger projects)
    • Space optimization of existing space

4.2 Analysis of Non-Financial Factors / Preliminary Risk Assessment

Advantage and Disadvantage and Preliminary Risk Assessment Table (example)

Table Summary

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

Option Advantages Disadvantages Preliminary Risk Assessment
(High-Medium-Low)
Option #1
Renewal In-Situ
  • Benefit from client investments and current infrastructure
  • No disruption to the tenants program delivery and services to Canadians
  • Non-competitive process
  • Risk of user needs not being met (low): client has confirmed that they are satisfied in their current space
  • Risk of changing requirements (low): client has confirmed their requirements through SOR and CARQ
Option #2
Lease Tender Call
  • Open transparent and competitive process
  • Space alignment with OAF  
  • Risk of not finding suitable alternative space
  • Limited internal resources
  • Disruption to client
  • New fit-up required, longer project delivery timeline
  • Risk of user needs not being met (medium): there is a risk that adequate space cannot be found
  • Risk of changing requirements (medium): once a Functional Program is completed, the client may modify their requirements

Some examples of non-financial factors are the following:

  • Project requirement satisfaction
  • Client requirements satisfaction
  • Strategic context
  • Impact on diversity or balance of the inventory
  • Timing requirements respected
  • Support goals and objectives of PSPC Sustainable Development Strategy
  • Suitability of accommodation
  • Flexibility
  • Ease of implementation
  • Disruptions to tenants
  • Strategic compatibility
  • Good Neighbour Policy
  • Environmental factors
  • Federal presence
  • Accessibility

Some examples of risk factors relevant to each option (ranked High, Medium or Low) are the following:

  • Risk that the project may not fully rectify an identified problem
  • Risk of user needs not being met
  • Risk of changing requirements
  • Risk of not meeting timing requirements
  • Risk of cost overruns
  • Risk of future performance being impaired
  • Risk of environmental degradation

4.3 Non Feasible Options

  • All options considered but not feasible
  • Clearly explain why the eliminated options are not considered for further analysis
  • Relate the client’s (or Regional Portfolio) strategy with the parameters of the options.

4.4 Feasible Options

  • Identify the options which are to be carried forward for in-depth analysis within the IAR:
    • Develop the main options analyzed
    • Clearly explain the details of each option (what they consist of)
    • Relate the client’s (or Regional Portfolio) strategy with the parameters of the options.
    • Proposed Timeline (project milestones only)
    • Is a short term renewal required for implementation of one of the options (i.e. Crown construct or lease-purchase) 

5.0 Recommended Options for Further Analysis

  • Combine the results and summarize the key findings of the options analysis (determine which options were considered as feasible after non-financial analysis and risk assessment)
  • Identify which options are recommended for further analysis in the preparation of the IAR

6.0 Project Team, Approval and Signatures

Position

Organization

Name

Project Director

   

   

Senior Project Leader

 

 

CASA or Accommodation Manager

 

 

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

 

 

Footnotes

Footnote 1

Return to footnote referrer 1

This information is from the OI List.

 

Footnote 2

Return to footnote referrer 2

If a Client Accommodation Requirement Questionnaire (CARQ) and/or a Tenant Requirement Package (TPR) were filled-out include them in the appendices.