Full investment analysis report (for space projects)

Full investment analysis report (for space projects) (DOC, 209KB)

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National Project Management System
Analysis Phase
Version: March 2019

Prepared by:
Date:
Lease number:
SIGMA project or internal order number:

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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.

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

Instructions

  • 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. lease renewal, tender, space assignment, etc.), amount of space (m2) and parking, total project cost (e.g. fit-up or base building estimate) and timing (e.g. in-service date). The name(s) of the client department(s) must be identified.
  • As an example, use the following wording to begin the statement, as follows:
    • Lease project approval

      The project is seeking project approval and expenditure authorityFootnote 1 in the amount of [insert amount and indicate amount before taxes] including a fit-up amountFootnote 2 of [insert amount and indicate amount before taxes] to [indicate purpose]. The in-service date is [insert date], with a lease term certain of [insert number of years] [indicate lease options, if any].

      • Examples of purpose:
        • If lease tender: to proceed with a lease tender to accommodate employees of [name of Department] at [location]
        • Lease in Public Services and Procurement Canada (PSPC)’s inventory: to proceed with a lease inventory solution to accommodate the office requirements of [name of Department]
          • In this scenario, there will be no rent included in the PA
    • Other projects (e.g. Crown-owned for base building modifications for space assignments)

      The project is seeking project approval in the amount of [insert amount and indicate amount before taxes] and expenditure authority (EA)Footnote 1 in the amount of [insert amount and indicate amount before taxes], to [indicate purpose]. The in-service date is [insert date], with an Occupancy Instrument (OI) of [insert number of years].

      • Examples of purpose:
        • For accommodation in a Crown-owned inventory building (Base building and/or Fit up works): to fit-up office space and special purpose space to accommodate employees of [name of Department]

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 meet a client requirement; to maintain or improve an asset; or to take advantage of an opportunity. 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 project complexity and risk assessment (PCRA)”]

Instructions
  • Summarize and provide a brief description of the project scope and the key requirements that are being addressed in this project.
    • For space-based projects, provide information on new location, new requirements in usable (m2u) and rentable (m2r) square meters and indicate # of Full-time equivalent (FTE)s it will accommodate and the utilization rates (m2/FTE). Identify any special purpose space or non-compliant requests, or any other special client requirements. Represents space savings of [insert number] m2u/m2r compared to current space occupied. For a lease, indicate duration of the lease and anticipated occupancy date.
    • For projects involving existing assets (e.g. Crown-owned), ensure to summarize any pertinent information concerning the asset’s condition and performance, including identifying other project requirements related to the asset.
    • For projects requiring moving employees temporarily (swing space to a location), provide information such as where, duration, etc.
  • If the project involves leased accommodation, the method of acquiring the space should be identified. For example, a lease tender call, a direct negotiation acquisition or a lease renewal.
  • 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 risk management, potential political considerations, timing, legal issues, client issues, and issues regarding the department’s sustainable development targets, heritage conservation considerations or areas of public sensitivity with respect to the project.
  • Identify any client concerns to the project and whether the client supports the recommended solution (e.g. client liaison activities).

Options considered and a brief description of option selected with justification

Instructions
  • 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 (PVCOA $XXM)
      • Option 2 (PVCOA $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.

This table is only an example and contains no data.

Yes ☐ No ☐ (check one)

Criteria for minister engagement
Criteria for minister engagement YesTable "Criteria for minister engagement" note */ 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 of Canada (OAG).    
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, Treasury Board (TB) submissions, speeches, etc.).    
The project has significant security considerations.    
The project is high risk or high dollar value.    

Table "Criteria for minister engagement" note

Table "Criteria for minister engagement" note *

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

Return to table "Criteria for minister engagement" note * referrer

Note 1:
Note 2:

Approval authorities and funding

Instructions
  • 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 (e.g. Land Charges Act [LCA]) and/or to access new funding (e.g. table below or similar).
Table no.
Item Amount Approval authority
PA $X,XXX Assistant Deputy Minister, Real Property Services
LCA $X,XXX Treasury Board
PCRA/IIP Level 2 Real Property Investment Board
  • Identify any expenditures to be incurred by PSPC on behalf of the client for which PSPC will be reimbursed via the RPS Revolving fund (e.g. SPS and/or non-compliant fit-up, and possibly Furniture, Fixture & Equipment (FF&E) (if required)) and the client direct costs related to the project that are paid for directly by the client department (e.g. FF&E, IT/IM, cabling).
  • Include a statement of what is being included into PSPC’s project approval (which excludes FF&E costs);
    • Example wording to be used:

      The project approval includes the PSPC portion of the project (Vote 1 and Vote 5) and the portion recovered via the Revolving Fund. The costs that are directly incurred and funded by [name of Client Department] (FF&E or other direct costs) in the amount of [insert amount and indicate amount before taxes] are the responsibility and the accountability of [name of Client Department]. Therefore, these costs are excluded from the project approval.

  • Clearly indicate that the client agrees with these costs and has confirmed the required funding to pay for them. Has the client(s) provided confirmation of source of funds for both Revolving Fund and client direct costs?
  • State the class of cost estimate for project approval (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. Goods and services tax (GST)/Harmonized Sales Tax (HST) are shown separately. A separate table has been developed to identify the rent payments by fiscal year for information purposes (see below). 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 OGD direct (client) costs. (Note: Non-FF&E—OGD reimbursed via Revolving Fund line (table below) refers specifically to fit-up construction costs related to SPS, non-compliant or other special fit-up requirements).
Project fit-up/Construction costs (for IIP inclusion)
Categories Funded Y/N Total cost Previous years IIP Investment period (in thousands of dollars) Future years (2022-2023 and up)
2017-2018 2018-2019 2019-2020 2020-2021 2021-2022 Total 5-years
PSPC vote 1—Operating (B123) Y 329,620 15,223 262,250 52,147 N/A N/A N/A 314,397 N/A
PSPC vote 5—Capital (B141) Y 9,926,818 52,636 5,965,874 3,255,896 652,412 N/A N/A 9,874,182 N/A
PSPC vote 5—Fit up (B143) Y 7,432,626 N/A 6,252,144 1,123,586 56,896 N/A N/A 7,432,626 N/A
Total vote 1 and 5 (before taxes) (a) N/A 17,689,064 67,859 12,480,268 4,431,629 709,308 N/A N/A 17,621,205 N/A
Non FF&E—OGD reimbursed via revolving fund (b) N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
Total project construction cost (before taxes) (c) = (a) + (b) N/A 17,689,064 67,859 12,480,268 4,431,629 709,308 N/A N/A 17,621,205 N/A
Taxes (Goods and services tax [GST], Harmonized sales tax [HST], Provincial sales tax [PST]) N/A 2,299,578 8,822 1,622,435 576,112 92,210 N/A N/A 2,290,757 N/A
Total project construction cost (incl. taxes) (d) = (c) + taxes N/A 19,988,642 76,681 14,102,703 5,007,741 801,518 N/A N/A 19,911,962 N/A
FF&E (OGD reimbursed via revolving fund or directs costs, before taxes) = e Y 4,782,371 N/A 1,525,478 3,256,893 N/A N/A N/A 4,782,371 N/A
Total project construction cost (Project construction cost before taxes + FF&E) (f) = (c) + (e) N/A 22,471,435 67,859 14,005,746 7,688,522 709,308 N/A N/A 22,403,576 N/A
Acquired Services—Leasing costs
PSPC vote 1—Operating (B123)—Net rent Y 28,589,650 N/A N/A 2,858,965 2,858,965 2,858,965 2,858,965 11,435,860 17,153,790
PSPC vote 1—Operating (B123)—Operations & maintenance (O&M) Y 3,726,049 N/A N/A 357,895  362,452 371,896 376,258 1,468,501 2,257,548
PSPC vote 1—Operating (B123)—Property taxes Y 3,202,604 N/A N/A 296,587 301,258 309,587 313,596 1,221,028 1,881,576
Total vote 1—Operating (B123) (g) N/A 35,518,303 N/A N/A 3,613,447 3,522,675 3,540,448 3,548,819 14,225,389 21,292,914
Total project cost pbjective before taxes (h) = (f) + (g) N/A 57,989,738 67,859 14,005,746 11,301,969 4,231,983 3,540,448 3,548,819 36,628,965 21,292,914
Note

Leasing Costs should reflect current dollars and not the amounts used to calculate project approval (i.e. present value)

Project risks

Instructions
  • 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.

This table is only an example and contains no data.

Risk allowance requested: $ XXX
Highest risk statements Risk assessment Risk response
     
     
     

1. 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. Background

2.1 Project history

  1. 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. Compliance with National Project Management System (NPMS)

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 Department
    • Nature of program(s) that may be impacted by this requirement
    Inventory of current occupancies in the regionTable "Inventory of current occupancies in the region" note **
    Name or address Client occupancy starting date Expiry date Lease expiry date Options left Office SPS Total m2r
    Square meter usable (m2u) Square meter rentable (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

    Table "Inventory of current occupancies in the region" note

    Table "Inventory of current occupancies in the region" note **

    This information is from the OI List. If relevant (i.e. consolidation), information should be provided.

    Return to table "Inventory of current occupancies in the region" note ** referrer

    Note

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

    Current client(s) occupancies affected by this requirement
    Client Lease no. OI Funding Type of space FTEs m2u m2r 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  
  2. Impact of current problem/opportunity on tenants (if applicable)
    • Additional tenant costs
    • Disruption of Program
    • Required relocation
    • In-service date
  3. 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
    • 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 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.

2.5 Stakeholders

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

3. Project scopeFootnote 3

  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
      1. North:
      2. South:
      3. West:
      4. 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 (accessible to Public Services and Procurement Canada employees only)
    • 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 WP2.0 fit-up standards and exemptions (non-compliant space)
    Space allocation standards based on project requirement
    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
  3. Operational parking requirements (as per custodial parking policy)
  4. Special considerations (if applicable)
    • Specific location within a building (ground floor, retail space etc.)
    • Specific type of location
    • Security requirements (highly sensitive)
    • Heritage building
  5. Client demand forecast (if applicable)
    • Factors influencing future demand
    • Likelihood of factors
    • Impact on client requirements
    • Future changes in funding levels
  6. Occupancy commitments (client commitment vs. lease term)
  7. Impact on space envelope and source of client funding (Expansion Control Framework (ECF) or Non-Reimbursing)

4. Identification & analysis of options

The information in the following section should only summarize the key findings of the feasibility report and should be updated, if applicable. If the project qualifies for National Project Management System (NPMS) Lite (where a feasibility report is not required), all feasibility report information should be incorporated into this section.

4.1 Options considered

Identify and describe all reasonable options for satisfying the project requirements.

4.2 Non feasible options

Clearly explain why the eliminated options are not considered for further analysis.

4.3 Feasible options

Clearly explain why the retained options are being considered for further analysis.

4.4 Financial analysis

  1. Availability of accommodation space
    • Government inventory
    • Local real estate market description (quarterly reports)
  2. Real Estate Market Analysis
    Market information
    • Market Survey Report (MSR) (include source of reports and effective dates)
    • Market Analysis Report (MAR) (include source of reports and effective dates)
    • Market Analysis Report; reference XXXXXX (date)
      • Gross Effective Rental Range ($/m2r): $XXX - $XXX
      • Estimated Base Year Taxes and Operating Costs: $XXX
      • Net Effective Rental Range: $XXX - $XXX
      • Storage Space (Gross): $XXX - $XXX
      • Parking (per stall per month, including taxes):$XXX - $XXX
    • Classifications of comparable buildings surveyed (class A, B, or C)
    • Vacancy rates
    • Results of recent Generic Request for Information (GRFI) and Request for Information (RFI) that may apply to this project to confirm the supply
    • Conclusion reached based on the analysis of demand and supply related to this project:
    • Most probable availability of suitable space (description of the supply; class of building; anticipated rental rates used)
  3. Financial Assumptions

    Note: Financial Assumptions must either be fully developed under each option wherever relevant or an individual section must be created before the Financial Analysis section. This information could also be put in an appendix.

    • Key input assumptions common to all options
    • Detailed description specific to each option (in-service date, swing space, m2 for each option, description of delivery, LEED requirement, …)
    • Additional notes where applicable
    • Summary table for each option and source (refer to Appendix 1)

    Note: Real Estate Financial Investment Toolkit (REFIT) calculations and detailed table of assumptions are always required.

  4. Financial Analysis
    • Full costs to the federal government for each option (PSPC and client)
    • All relevant costs (ensure valid assumptions and input values are realistic and supported by an explanation or a source)
    • Results of financial analysis in table showing PVCOA for each option
      PVCOA and RA-PVCOA for each option
        PVCOA Rank RA-PVCOA Rank
      Option 1: … $XXXX 2 $XXXX 1
      Option 2: … $XXXX 1 $XXXX 2
    • Risk-based investment analysis (for projects with LPA > $30 millions only)
      • Risk-neutral PVCOA and risk-adjusted PVCOA for each option in table form
      • Explain the results

      Note: if a risk factor is quantified in the RA-PVCOA, do not include it in the Risk Assessment (Section 4.6) as it would then be double-counted

    • Conclusion
      • Which is the most financially viable option?
      • Do variations to key assumption make a difference (sensitivity analysis)?
      • What conclusions can be reached?

4.5 Analysis of non-financial factors

  1. Advantage and disadvantage (example)
    • Option #1: Renewal In-Situ
      • Advantages
        • Benefit from client investments and current infrastructure
        • No disruption to the tenants program delivery and services to Canadians
      • Disadvantages
        • Non-competitive process
    • Option #2: Lease Tender Call
      • Advantages
        • Open transparent and competitive process
        • Space alignment with Office Accommodation Framework (OAF)
      • Disadvantages
        • Risk of not finding suitable alternative space
        • Limited internal resources
        • Disruption to client
        • New fit-up required, longer project delivery timeline
  2. Include all relevant non-financial factors for each option. Some examples that can be used 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
  3. For projects that require National approval, also use an “Evaluation Matrix for Qualitative Analysis”
    • Each factor should be explained
    Example of Evaluation Matrix for Qualitative Analysis
    Non-financial factor Weight Option 1
    Score    		 Option 2
    Score    		 Option 3
    Score
    Factor 1 30 30 27 30
    Factor 2 25 22 25 25
    Factor 3 20 17 10 16
    Factor 4 15 15 5 12
    Factor 5 10 8 6 6
    Total score 100 92 73 89

    Note

    Not applicable if there is only one feasible option.

  4. Description of results of analysis and conclusion reached for each factor (must justify ratings)

4.6 Risk assessment

  1. Evaluation of relative level of risk for each option (Evaluation Matrix for Risks)
    Example of evaluation table for risks
    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
    High    		 3            
    Cost increase L H
    High    		 3            
    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.
    2. For projects going to National, a 5x5 matrix (Very High-High-Moderate-Low-Very Low) is necessary.

    Legend

    Risk assessment matrix (3x3) - Description below.

    Image desciption

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

    • Low impact and low likelihood: the score is 1—Accept risks
    • Low impact and moderate likelihood: the score is 2—Accept, but monitor risks
    • Low impact and high likelihood: the score is 3—Manage, mitigate and monitor risks
    • Moderate impact and low likelihood: the score is 2—Risk may be worth accepting with monitoring
    • Moderate impact and moderate likelihood: the score is 4—Management effort worthwile, mitigate and monitor risks
    • Moderate impact and high likelihood: the score is 6—Must manage and monitor risk (inform senior management)
    • High impact and low likelihood: the score is 3—Considerable management and monitoring required
    • High impact and moderate likelihood: the score is 6—Manage and monitor risks (inform senior management)
    • High impact and high likelihood: the score is 9—Management (extensive senior management involvement)
  2. Example of 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
  3. Explanation of the evaluation matrix per risk: 
    • Description of results
  4. 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

4.7 Conclusions

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

5. Strategic impact

  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:

    This table is only an example and contains no data.

    Example of strategic and policy compliance checklist
    Policy/Strategy Compliance Justification (always required)
    Yes No
    Workplace 2.0 Fit-up Standards      
    Sustainable Development Strategy      
    Good Neighbour Policy      
    Community-Based Investment Strategy      
    Strategic Action Plan      
    Regional Portfolio Strategy      
    Client Strategy      
  4. In Case of direct negotiation for lease, identify whether or not the project meets with the ‘Six Principles of Direct Negotiation Lease Renewal’.
    • If not, identify why not and include a mitigation strategy if renewal fails
    • In the Appendix, attach a detailed list of the Six Principles

6. Recommendation

Maximum length of 2 pages

  1. Clear and detailed statement of the proposal being recommended for approval.
    • Project definition
    • Cost (HST, Class of estimate, LCA, Risk allowance)
    • Timing
    • Usable and rentable square meters (m2u, m2r)
  2. Client costs (if applicable)
    • Related to above standard fit-up (included in LPA) and how they will be reimbursed
    • Furniture, Fixture & Equipment (FF&E)
  3. Comments on urgency of project
  4. Client agreement with proposed approach (statement)
  5. Issues to be brought to the attention of RPIB or RIMB (decision makers)

7. Approval authority and funding

  1. PCRA Score
    • Date included on IIP list
  2. Identify Delegated Approval Authority (DG, ADM, Deputy Minister, TB)
  3. Source of funding (confirmation from CFO for client costs)
  4. Projection of cash flows (in a table)
  5. For projects that require National approval, detail cash flow table should be provided:
Cost estimate and cash flow table
  2017-2018 2018-2019 2019-2020 2020-2021 Total
Project Cost $ XXXXX $ XXXXX $ XXXXX $ XXXXX $ XXXXX
Risk allowance $ XXXXX $ XXXXX $ XXXXX $ XXXXX $ XXXXX
Sub-Total          
Escalation          
GST/HST $ XXX $ XXX $ XXX $ XXX $ XXX
Total $ XXXXX $ XXXXX $ XXXXX $ XXXXX $ XXXXX

See detailed cost breakdown in Appendix.

8. Implementation plan

  1. Include project schedule
    • Key milestones for project
    • Anticipated completion date
    • Occupancy date
    • Detailed project schedule attached in appendix
  2. Risk Management Plan (attach as appendix)
    • Identify key risks including summary of risk mitigation measures only for the recommended option
  3. Include what type of lease will be used (if applicable – mainly for large projects)

9. Project team, approval and signatures

This table is only an example and contains no data.

Project team
Position (examples) Organization Name
Project Director    
Senior Project Leader    
Client Accommodation Services Advisors/Accommodation Manager    
Senior Project Manager    
Project Manager    
Professional and Technical Resources    
Senior Financial Advisor    
Property Manager    
Other (specify)    

This table is only an example and contains no data.

Approval
Action Date Signature
Prepared by:
Project leader		    
Reviewed by:    
Recommended by:    
Approved by:    

10. Appendices

Content varies depending on situation:

  1. Financial Assumptions Summary Table
  2. Detailed cost estimates for the proposed project
  3. Space Calculation (summary page)
  4. NPMS feasibility report (if separate document)
  5. NPMS Compliance Checklist
  6. Risk Management Plan
  7. Summaries of building condition and building performance (LCR), if extensive
  8. Project Implementation schedule
  9. Communication Strategy
  10. PCRA Summary Sheet
  11. Six Principles of Direct Negotiation for Lease Renewal (if applicable)

Appendix 1—Financial assumptions summary table

Financial assumptions applicable to all options
Item Financial Assumption Source
Escalator (%)—Rent % Finance’s month/year publication
Escalator (%)—O&M % Finance’s month/year publication
Escalator (%)—Taxes % Finance’s month/year publication
Escalator (%)— Land % Finance’s month/year publication
Escalator (%)— Service Fees % Finance’s month/year publication
Escalator (%)—Construction & Systems % Finance’s month/year publication
General financial assumptions, financial assumptions for the LPA (2001L) and REFIT
Item Option 1 Option 2
Financial assumption Source Financial assumption Source
General financial assumptions
Office space m2u / m2r   m2u / m2r  
SPS space m2u / m2r   m2u / m2r  
Storage space m2u / m2r   m2u / m2r  
Parking stalls # of stalls   # of stalls  
Fit-up/Refresh $/m2u Based on PSPC's FYXX/XX Fit-up standards $/m2u Based on PSPC's FYXX/XX Fit-up standards
Moving and signage $/m2u Best practice $/m2u Best practice
Consultant % of fit-up Best practice % of fit-up Best practice
Disbursements % of fit-up Best practice % of fit-up Best practice
Contingency % of fit-up, moving and signage, consultant and disbursements Best practice % of fit-up, moving and signage, consultant and disbursements Best practice
Project leadership fees % of fit-up Best practice % of fit-up Best practice
Project management fees % of fit-up Best practice % of fit-up Best practice
LPA (2001L)
Gross rent office & SPS space $/m2r   N/A N/A
Gross rent storage $/m2r   N/A N/A
O&M $/m2r   N/A N/A
Taxes $/m2r   N/A N/A
Parking rate $/stall/year   N/A N/A
Investment horizon (Term) # years Client requirement, Owner Investor, Leasing N/A N/A
Discount Rate % Finance's month/year publication N/A N/A
Refit
Net rent office & SPS space $/m2r   $/m2r  
Net rent storage $/m2r   $/m2r  
O&M $/m2r   $/m2r  
Taxes $/m2r   $/m2r  
Parking rate $/stall/year   $/stall/year  
Investment horizon # years Owner Investor, Leasing # years Owner Investor, Leasing
Discount rate % Finance's month/year publication % Finance's month/year publication
Refresh $/m2u or % of fit-up Best practice $/m2u or % of fit-up Best practice
Client costs $/ FTE or $/m2u Best practice $/ FTEs or $/m2u Best practice
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