Investment analysis report (for asset projects at expenditure authority)

Table of contents

This template serves as a helpful tool for preparing an investment analysis report (IAR). It does not replace the “Guide for the Preparation of investment analysis reports”. The template has been approved by National Portfolio Management and the 2009 Guide is currently in the process of being updated.

The IAR at expenditure authority (EA) for project implementation uses most of the information from the initial project approval (PA) and is updated where appropriate. After verifying that they are still valid, sections 1 to 3 should be taken directly from the IAR at PA.

Executive Summary

The purpose of the revised Executive Summary is to provide a brief overview of the most essential and relevant information concerning the project for decision-makers. This summary will replace the Integrated Investment Plan (IIP) Project Summary and should be written in a narrative sense, as opposed to using bullet points.

Project Description


  • In this section, start with a clear statement of the proposal that is being recommended for approval.  This includes the authorities requested (e.g. project approval [PA]/expenditure authority [EA] or amended PA/EA) and a brief definition of the project scope (e.g. renovate/retrofit a building, undertake base building modifications, replace a building component, bridge or dam, etc.), amount of space (m2) (as required), total project cost (e.g. base building estimate and/or fit-up) and timing (e.g. in-service date/end construction date).  The name(s) of the client department(s) must be identified, along with relevant space requirements, if the project driver is a renovation/repairs to a Crown building that accommodates clients being affected.
  • As an example, use the following wording to begin the statement, as follows:
    • For project seeking EA2:
      The project is seeking project approval in the amount of [insert amount and indicate amount before taxes] and expenditure authorityFootnote 1 in the amount of [insert amount and indicate amount before taxes]Footnote 2, to proceed with construction or replacement of [indicate purpose].

Project Information

Project Background

  • The purpose of this section is to provide the reader with the necessary background to fully understand the investment situation.
  • Provide brief history of the current project and the rationale for undertaking this project (problem/opportunity statement).  This should clearly define what factors or issues are driving the initiation of the project and how the project will address these issues. For all projects, indicate information on current location.
  • Projects may be launched for a number of reasons such as: to maintain or improve an asset; Issues related to insufficient effectiveness of a system; improving environmental performance; or to address an urgent health & safety situation. Make reference to any portfolio planning considerations that may be driving the requirement for the project. If applicable, comment on the urgency of the project. (e.g. current condition, if represents health and safety issues, components that are old and obsolete and why the need to replace or repair etc.)

Project scope

[Please ensure project scope is well reflected in Callipers under "Activities covered by PCRA"]

  • Summarize and provide a brief description of the project scope and the key requirements that are being addressed in this project.
    • For asset-based projects involving existing assets;
      • Provide information on the location of the asset, ensure to summarize any pertinent information concerning the asset’s condition and performance, including identifying other project requirements related to the asset,
      • Identify all the requirements (generally technical requirements related to the building components or systems that will be replaced, upgraded or repaired,
      • Identify if the requirements were identified in the Building condition Report, Asset Management Plan or Building Management Plan.
  • Identify any dependencies and impacts (previous project approvals, branches, other projects, contracting, legal, announcements, communications, etc.) that are dependent on the outcomes of this project or whether this project is dependent on the outcomes of another project. [Ensure consistency with Callipers (questions 58 and 59)]
  • Indicate any special issues that need to be brought to the attention of decision-makers. These issues may pertain to level of urgency, health & safety, risk management, potential political considerations, timing, legal issues, and issues regarding the department’s sustainable development targets, heritage conservation considerations or areas of public sensitivity with respect to the project.

Options considered and a brief description of option selected with justification

  • Identify and list the options that were considered (non-feasible and feasible options) and analyzed. Illustrate the results of the financial analysis in the form of a table showing the Present Value Cost of Accommodation (PVCOA) and the risk-adjusted PVCOA (if calculated) for each feasible option. 
    • Feasible
      • Option 1 (Present Value Cost $XXM – construction cost $XXM)
      • Option 2 (Present Value Cost $XXM – construction cost $XXM)
    • Non-feasible
      • Option 3
  • The selected option should include a concise statement that explains the rationale for selecting the recommended option. The recommendation should be based upon the financial, non-financial and risk factors that contribute to making this the best value approach.
  • As per the TBS-PSPC IIP Protocol, please complete the table (below) and indicate whether Minister Engagement for the project is required.
Table Summary

This table indicates whether the Minister Engagement for the project is required and presents the criteria for Minister Engagement.

Criteria for Minister Engagement Yes Footnote 3/No Notes #
The project, or others associated to it, is likely to attract negative media coverage.    
The project is part of a government-wide initiative.    
The project is related to observations from Office of the Auditor General.    
The Minister has shown interest or has been briefed on this project or others of a similar nature in the past (e.g. Minister briefings, TB submissions, speeches, etc.).    
The project has significant security considerations.    
The project is high risk or high dollar value.    

Approval Authorities and Funding

  • Provide the PCRA rating level with a score of [%] for the project,
  • Identify the appropriate delegated authority required for project approval,
  • Indicate if there is a requirement for a TB Submission for Contracting Authority (CA) (e.g. CA for design/CA for construction) and/or to access new funding. (e.g.: table below or similar)
Table Summary

This table indicates the funding, the approval authority and the PCRA level.

Item Amount Approval Authority
CA $X,XXX Treasury Board
  • State the class of cost estimate (e.g. indicative or substantive). For projects seeking expenditure authority, it must be stated that substantive cost estimates have been provided.

Project cash flows:

  • Provide cash flow by budget year in current dollars for one-time costs (e.g. fit-up/base building) using the IIP table provided below. GST/HST are shown separately.  Fill in yellow cells only and answer whether it is funded (Y/N), others are formulas.
  • Identify the source of funding (e.g. Vote 1, Operating B123, Vote 5 - Capital B141 and/or Fit-up B143) and Other Government Department (OGD) direct (client) costs.  (Note: Non-Furniture, fixture and equipment (FF&E) – OGD reimbursed via Revolving Fund line (table below) refers specifically to fit-up construction costs related to SPS, non-compliant or other fit-up requirements).
Table Summary

This table details the cash flow by budget year and identifies the source of funding and other government department direct (client) costs.

Project construction costs (for IIP inclusion)
Categories Funded yes/no Total cost Previous years IIP Investment Period (in thousands of dollars) Future years (2022/23 and up)
2017/18 2018/19 2019/20 2020/21 2021/22 Total 5 years
PSPC Vote 1 - Operating (B123) Y 1,303,839 569,854 325,874 254,111 154,000     733,985  
PSPC Vote 5 - Capital (B141) Y 14,084,700 52,000 3,850,250 6,957,250 3,225,200     14,032,700  
PSPC Vote 5 - Fit up (B143) Y 5,653,994   1,522,581 1,545,555 2,585,858     5,653,994  
Total Vote 1 and 5 (before taxes) (a)   21,042,533 621,854 5,698,705 8,756,916 5,965,058     20,420,679  
Non FF&E - OGD reimbursed via Revolving Fund (b)                    
Total Project Construction Cost (before taxes) (c) = (a) + (b)   21,042,533 621,854 5,698,705 8,756,916 5,965,058     20,420,679  
Taxes ( GST, HST, PST)   2,735,529 80,841 740,832 1,138,399 775,458     2,654,688  
Total Project Construction Cost (incl. taxes) (d) = (c) + taxes    23,778,062 702,695 6,439,537 9,895,315 6,740,516     23,075,367  
FF&E ( OGD reimbursed via Revolving Fund or directs costs,  before taxes)  = e Y 3,047,474   1,525,252 1,522,222       3,047,474  
Total Project Construction Cost (Project Construction Cost before taxes + FF&E) (f) = (c) + (e)   24,090,007 621,854 7,223,957 10,279,138 5,965,058     23,468,153  

Project Risks

  • Using the table (below), provide a brief description/risk statement, indicate the risk assessment/risk level, and summarize the mitigation measures to effectively manage those risks.
  • This information should be in line with the risk management plan.  Use same terminology as in Risk Management Plan for Risk Statements, Assessment and Response.
  • Identify the key risks associated with the implementation plan for the recommended option.  These risks are typically the highest risks identified in the Risk Management Plan.
  • Indicate the risk allowance being requested for project implementation. This would be the sum of residual risk indicated in the Risk Management Plan.
Risk allowance requested: $ XXX
Highest risk statements Risk assessment Risk response

1. Problem/Oppportunity 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
    • Client Requirements
    • Possible Opportunity
    • 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
  3. Note: This section should not include any indication of the proposed solution. Its purpose is to concentrate on what drives the project.

2. Background

2.1 Project history

  1. Short history
    • Relationship to other projects or programs (if applicable)
  2. Any previous approval(s) or decision(s) related to the project
    • Date and amount of project approval (PA) including expenditure authority (EA)
    • Explain briefly the scope of the project approved at PA
  3. Compliance with NPMS

2.2 Building condition

Note: Briefly summarize background information from the PA

  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

Note: Update any information that has changed since PA and explain the variances

  • List the Occupants
  • Type and amount of space occupied in form of a table (if appropriate)
  • Information on client changes, movement, issues, etc. (if applicable)
Table Summary

The table presents the type and amount of space occupied by each client, and the Occupancy Instrument expiry date.

Client Type of space m 2u m 2r Occupancy Instrument (OI) Expiry Date
X Storage 473.9 494.3 August 31, 2016
Y Office
December 31, 2017
Z Office 6,900.0 7,495.1 September 30, 2018
Total Usable Area Required 10,892.2 11,779.5  

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. Project scope

Note: What has changed since PA? And what is the impact of this requirement change?

  1. Requirements
    • Must identify all the requirements (generally technical requirements related to building components or systems that will be replaced, upgraded or added)
    • Identify if the requirements were identified in the BCR, AMP or BMP
  2. Highlight any special issues/requirements relative, but not restricted to the following:
    • Technical requirements
    • Level of urgency
    • Health and safety
    • Environmental requirements
    • Sustainable Development Strategy requirements
    • Requirement based on a current strategy
    • Policy requirements
    • Timing requirements
    • Security requirements
    • Accessibility requirements
    • Requirement to address the condition of the Asset
    • Heritage building
    • Client requirements
    • Other requirements

4. Analysis of options


  • This section uses some of the information from the initial PA, updated when applicable.
  • This section should only focus on the feasible options that were analyzed at the PA stage, unless it is deemed necessary to analyze an additional option (forgotten at PA or changes in project scope elements require additional option analysis).
  • If the expenditure authority (EA) at PA has/will be surpassed before seeking EA to proceed with the implementation phase, an amended PA would need to be obtained.

4.1 Options analyzed at project approval

  • The following table summarizes the options analyzed at PA (clearly explain the details/scope of the options and their limitations. If information related to some option have changed, an update will be required):
Table Summary

This table is only an example and contains no data.

  Advantages Issues/Risks/Disadvantages Estimated cost at PA
Option 1: Scope     $
Option 2: Scope     $
Option 3: Scope     $
Option 4: Scope     $

4.2 Recommended option at project approval

  • Description of recommended option at initial PA:
    • Update the description if there have been any changes in the cost, scope, or schedule since the option was analyzed at initial PA
    • Update the cost of the recommended option with substantive (Class A/B) cost estimates
    • Update the proposed timeline (schedule) for the recommended option
  • List of all advantages and disadvantages of the recommended option (update information if applicable)
  • Since PA, explain any developments in the project regarding the design process or any other relevant factors including amount spent to date.

4.3  Variance analysis

  • The table below summarized the variances between initial PA and EA for project implementation (excluding escalation)
  • Conclusion of variance analysis:
    • Justification of variance
    • Since project costs have varied by X % from initial PA to EA for project implementation, the other feasible options for this option do not need to be re-analyzed
Table Summary

The table summarize the variance between PA and EA for the following item: construction, consultant fees, PSPC fees, and risk allowance.

4.4 Risk assessment

Item Project approval Expenditure authority Variance
Construction (including contingency) $ $ $
Consultant Fees $ $ $
PSPC Fees $ $ $
Risk allowance $ $ $
Total (excluding GST/ HST) $ $ $
GST/ HST $ $ $
TOTAL $ $ $

Note: This section should be taken directly from the IAR at PA, but updated if applicable

Evaluation of relative level of risk for each option (Evaluation Matrix for Risks)

Table Summary

The table measures the feasibility of options by assigning a score to each option with regards to risk factors, depending whether the impact and likelihood of the risk is low, moderate or high. At total score is calculated for each option, using the sum of its scores relating to each risk factor given.

Risk Factors Option 1 Option 2 Option 3
L Likelihood I Score L Likelihood I Score L Likelihood I Score
Client requirements not being met M M 4            
Changing client requirements L L 1            
Timing delays L H
Cost increase L H
Negotiation risk L L 1            
Market conditions L L 1            
Funding M M 4            
Lack of human resources L L 1            
Total score     18            
  • Note 1: Table not applicable if there is only one feasible option.
  • Note 2: For projects going to National, a 5x5 matrix (Very High-High-Moderate-Low-Very Low) is necessary.


Image Description

This image indicates the score to attribute to a risk whether the impact and likelihood of the risk is low, moderate or high.

  • Impact Low: Normal
  • Impact Moderate: We could still function
  • Impact High: We couldn't function or our mandate would have to change
  • Likelihood Low: Normal or unlikely
  • Likelihood Moderate: Likely
  • Likelihood High: Very likely
  • Low impact and low likelihood: Accept risks - the score is 1
  • Low impact and moderate likelihood: Accept, but monitor risks - the score is 2
  • Low impact and high likelihood: Manage, mitigate and monitor risks - the score is 3
  • Moderate impact and low likelihood: Risk may be worth accepting with monitoring - the score is 2
  • Moderate impact and moderate likelihood: Management effort worthwhile, mitigate and monitor risks - the score is 4
  • Moderate impact and high likelihood: Must manage and monitor risk (inform senior management) - the score is 6
  • High impact and low likelihood: Considerable management and monitoring required - the score is 3
  • High impact and moderate likelihood: Manage and monitor risks (inform senior management) - the score is 6
  • High impact and high likelihood: Management (extensive senior management involvement) - the score is 9
See long description above image.
  1. Examples of other risk factors relevant to each option
    • 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
    • Risk of exceeding approved funding
    • Risk of Base building System Failure
    • Risk related to Indoor Air Quality (IAQ)
    • Risk related to Fire Code Requirements
    • Risk related to a request for Non-Compliance
    • Risk of Political Pressure
    • Risk of client commitment to the project
    • Risk of changing priorities in the Federal Government or Department
    • Other related risks
  2. Explanation of the evaluation matrix per risk: 
    • Description of results
  3. Conclusion of risk assessment:
    • Which option carries lowest level of risk? How does each option rank in terms of risk?
    • Do any of the options carry an unacceptable high level of risk?
    • Briefly summarize key findings from the evaluation matrix

4.5 Conclusions

  • Combination of results of all analysis (determine which option provides the overall best value to the federal government)
  • Considering results, what conclusions can be reached?
  • State why preferred option is better than the other options available
  • Convey through the conclusion that the recommended option represents “best value” to the Crown, particularly when it may not be the “least cost” option
  • Convey the risks of not proceeding with the recommended option to further articulate the need to implement the recommended option  

5. Strategic impact

Note: This section should be taken directly from the IAR at PA, but updated if applicable

  1. Identify strategic value of proceeding with the project
  2. Demonstrate project is carried out in a manner consistent with departmental policies and strategies.
  3. Use checklist of strategic and policy compliance table below. Apply it specifically to each individual project:
Table Summary

This checklist list the policies and strategies related to a given project, whether or not the project complies with the given policy and strategy, and the justification.

Policy/Strategy Compliance Justification (always required)
Yes No
Asset/Building Management Plan      
Sustainable Development Strategy      
Good Neighbour Policy (if applicable)      
Community-Based Investment Strategy      
Regional Portfolio Strategy      

6. Recommendation

  • Maximum length of 2 paragraphs
  1. Clear and detailed statement of the proposal being recommended for approval.
    • Project definition
    • Cost (HST, Class of estimate, LCA, Risk allowance)
    • Timing
  2. Comments on urgency of project
  3. Project Review Advisory Committee (PRAC): (if applicable)
    • PRAC review date
    • Issues/recommendations (in table form)
  4. Issues to be brought to the attention of RPIB or RIMB (decision makers)
Table Summary

This table is only an example and contains no data.

PRAC Recommendation Implementation Justification (if no)
Yes No

7. Approval authority and funding

  1. PCRA Score
    • Date when included on IIP list
  2. Identify Delegated Approval Authority (DG, ADM, Deputy Minister, TB)
  3. Source of funding (including client funding, if applicable)
  4. CPBN no: XXXX

7.1 Cost estimate and cash flow table

Table Summary

This table details the cash flow for projects that require National approval. For each fiscal year, the project cost, risk allowance, escalation, taxes and total are provided.

  2017/2018 2018/2019 2019/2020 2020/2021 Total
Project Cost $ $ $ $ $
Risk allowance $ $ $ $ $
Sub-Total $ $ $ $ $
Escalation $ $ $ $ $
GST/HST $ $ $ $ $
Total $ $ $ $ $

See detailed cost breakdown in Appendix

8. Implementation plan

  1. Explain the implementation tasks and activities, including engineering surveys, planning studies and other documents that are required to move the project forward
  2. Include project schedule
    • Key milestones for project
    • Anticipated completion date
    • Provide detailed project schedule attached in appendix
  3. Update Risk Management Plan (attached in appendix)

9. Project team, approval and signatures

Table Summary

This table is only an example and contains no data.

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
    • Prepared by:
    • Reviewed by:
    • Recommended by:
    • Approved by:
  • Date
  • Signature

10. Appendices

Below are examples of items that could be included as an Appendix to the IAR:

  1. NPMS conformance review form
  2. Risk Management Plan
  3. Detailed project costs/Cash Flow Tables
  4. Summaries of building condition and building performance
  5. Canadian Environmental Assessment Act, Environment Assessment Report
  6. Project Sustainable Development Strategy with targets
  7. Project Implementation schedule
  8. Communication Strategy
  9. PCRA Summary Sheet


Footnote 1

IARs requesting project approval should also identify the amount of expenditure authority, based on substantive cost estimates.

Return to footnote 1 referrer

Footnote 2

For purposes of IIP inclusion, any fit-up amount should be aligned to line C and line D of the cash flow table found under the Approval Authorities and Funding section of the Executive Summary.

Return to footnote 2 referrer

Footnote 3

Yes indicates that the Minister may require a briefing on the project as per governance. 

Return to footnote 3 referrer