Annexes—The Long Term Vision and Plan Annual Report 2017 to 2018
Annex A: Risk and contingency management
The delivery of a program as complex and multifaceted as the LTVP requires rigorous risk management. This includes Parliamentary Precinct Branch (PPB)'s own processes, as well as the third party oversight by both government and private sector specialists. Key elements include:
- Contracting: PSPC's Integrity Framework is intended to increase departmental due diligence in its dealings with third parties in order to reduce fraud against the Crown. Major construction work on Parliament Hill is contracted through a transparent, two-stage process to promote competition. All contractors on Parliament Hill must obtain a security clearance. At PSPC, the technical authority is clearly separate from the contracting authority. The independent fairness monitors review and report on major procurements and provide independent assurance to departmental management, client departments, government suppliers, Parliament, and Canadians that PSPC's large and complex procurement activities are conducted in a fair, open, and transparent manner. These reports are published on PSPC's website.
- Audit regime: In 2010, the Auditor General found that sound project management practices were in place for the rehabilitation of the Parliament Buildings. In 2012, the same observations were made by experts, Raymond-Chabot Grant Thornton. Between 2014 and 2015, Price Waterhouse Cooper provided certified clean financial audits for the construction management contracts for the West Block, Wellington and Sir John A Macdonald Building projects—these audits are performed on a cyclical basis and will be put in place for the Centre Block Rehabilitation project once it begins.
- Cost, schedule and design quality management: Cost estimates, schedules and design quality management are developed by a prime consultant for each project, and are then reviewed, assessed, and challenged by internal and external experts. Estimates are also reviewed on a monthly basis by independent costing experts.
- The National Project Management System (NPMS): As part of a comprehensive project management process, NPMS has ensured that projects continue to be delivered using an accountable and cost-effective methodology. The requirement to produce a ‘lessons learned' document at the end of each project provides staff with an understanding of the time, effort and costs associated with risk management. In addition, these reviews serve as reminders of the importance of adhering to applicable policies and dealing with issues in a timely manner.
The rehabilitation of the buildings within the Precinct is of a scale and complexity unrivalled in Canada. Given the extent of the interventions, PPB has used pilot projects on many buildings to obtain valuable information about building conditions and reduce the likelihood of time, scope, or budgetary risks for major projects. Early work on the West Block's North Towers provided invaluable insight into the extent and nature of the program required for the full West Block rehabilitation. PPB also partnered with the Universities of Calgary, Alberta and Manitoba to tap into their knowledge and facilities for leading-edge seismic testing of replica walls made of the same stone as the Parliament Buildings. This provided research and evidence for the large-scale structural reinforcement of heritage masonry walls.
The renovation and rehabilitation of heritage buildings is complex and difficult to forecast. As an important component of effective costing, PPB has developed and implemented a robust costing methodology including a systematic approach to allocating appropriate allowances for contingencies and risk. Based on lessons learned from other projects, internal and third party cost specialists and industry best practices, allowances are specific to every project to reflect its unique characteristics, building conditions and overall complexities and constraints. Over the past number of years, this methodology has been validated by independent third-party experts as part of the PPB's sound project management practices.
Contingency allowances address cost estimating uncertainties and known issues that occur on every project (known—knowns). For example, this could include a change to a project's design to accommodate new scope. Contingency allowances are applied to key project cost elements, such as design and pricing and construction, and are adjusted to reflect the refinement of a project as part of ongoing project management activities.
Risk allowances address certain circumstances that may or may not occur during the implementation of a project (known—unknowns). For example, risk events could include unforeseen masonry deterioration and challenging site conditions. Risk allowances are applied as a single-line item to the aggregate project cost estimate. Initial risk allowances are reviewed and refined throughout the development of a project leading to the identification of individual risk events. Each risk event is then qualified as to its probability of occurrence and then quantified to determine its potential cost impact. Mitigation measures are also identified for each risk event. Managing risk is part of ongoing project management activities.
We also found that [PSPC] has improved its costing methodology and estimates based on lessons learned from other projects. For instance, the Department has learned from other heritage projects that it must make a higher provision for contingency and risk because of the limited information available on building conditions.
Figure 24 provides an overview of cumulative contingency and risk allowances for the key projects within the Major Capital Program (MCP). Contingency and risk usage is monitored and reported on a monthly basis. Usage values reflect funds spent and/or committed, over the life of the project, to perform approved project work which is deemed to be a planned contingency element or within the scope of a project's risk plan. Unused values reflect the remainder of the respective overall allowances which are not spent or committed.
Figure 24 - Major Capital Program risk and contingency data
Table equivalent of Figure 24 - Major Capital Program risk and contingency data
| Project | Risk/Contingency | Used | Unused |
|---|---|---|---|
| West Block rehabilitation | Risk | 99.5% | 0.5% |
| Contingency | 90.0% | 10.0% | |
| Visitor Welcome Centre - phase 1 | Risk | 37.0% | 63.0% |
| Contingency | 32.7% | 67.3% | |
| East Block 1867 Wing exterior rehabilitation | Risk | 0.0% | 100.0% |
| Contingency | 0.0% | 100.0% | |
| Senate interim accommodations - GCC | Risk | 89.0% | 11.0% |
| Contingency | 100.0% | 0.0% |
Annex B: Five strategic directions
Summary: Strategic directions
The Parliamentary Precinct is the home of Canada's federal parliamentary system and the place where Canadians gather to celebrate and express themselves in matters of national interest. The Parliamentary Precinct Branch (PPB) is responsible for the care and stewardship of these landmark buildings and grounds, and for providing accommodations and infrastructure that allows a modern parliament to better serve Canadians. An update to the 2006 Long Term Vision and Plan (LTVP) is being under taken to incorporate evolving conditions and requirements, to take advantage of new opportunities and to ensure the plan reflects government priorities. This set of five strategic directions provides a framework to guide the update to the LTVP. How these strategic directions will be realized in the updated LTVP will be developed in the next phase of work, Phase 2. This next phase will be the result of the collaborative work of the project leadership team, a consulting team, the Parliamentary Partners, and stakeholder working groups over the course of the coming months. This collective work will identify functional, flexible, integrated and creative approaches to realize the full potential of the Precinct and its important role in the nation's capital.
Objective: Sustaining the activities of the parliament of Canada
The Parliamentary Precinct is the symbolic heart of Canada. It is central to the country's history as a nation and is home to our federal parliamentary system including the institutions of the Senate, House of Commons, and Library of Parliament. It continues to be the place where Canadians gather for national celebrations and expressions of democracy. The LTVP provides a long-term approach for rehabilitating the Precinct's heritage buildings, meeting Parliamentary accommodation requirements, and providing a secure and welcoming environment for parliamentarians, staff, and visitors.
Strategy: Evolve to a campus approach for a modern parliament
The LTVP Update will consider all buildings and lands north of Wellington Street, as well as the three blocks south of Wellington (between Elgin Street, Bank Street and north of Sparks Street) as a single, inclusive campus to facilitate more effective planning, development and support efficient Parliamentary operations. This will include:
- Parliamentary accommodations: Shifting the focus of new development opportunities for permanent accommodations from lands north of Wellington to Blocks 1, 2 and 3 while continuing the important rehabilitation work of existing assets north of Wellington Street. Changing threat levels
- Infrastructure planning: Implementing integrated systems within the Campus and consolidating functions for greater efficiency, including material handling, waste management, food services, support services, surface and underground movement systems, storm water management
- Security: Integrating a comprehensive security plan for the campus, including the identification of security zones. Holistic physical security design requirements will be developed (with respect for institutional independence) for seamless protection, detection and response as well as addressing changing threat levels
- Innovation: Exploring proactive ways of integrating innovation in the way parliamentary functions and accommodations are provided and deployed in the precinct, including technological change and advances in how administrative space is used
- Future growth: Considering strategies for future growth beyond the timeframe of the LTVP Update, along with potential opportunities to protect Parliament and provide for future requirements that have yet to be defined
Support
- Leadership in environmental sustainability: The LTVP Update will incorporate a comprehensive campus wide sustainability strategy with measurable and achievable targets in support of Government programs and commitments. This will include: exploring opportunities to reduce Parliament's ecological footprint through the use of clean energy sources, implementing more efficient and sustainable water and waste management, reviewing space standards and identifying transportation demand strategies
- Enriching the visitor experience: The LTVP Update will identify and incorporate new standards, guidelines and best practices regarding visitor experience to contribute to a world class capital city and provide a memorable visitor experience. This will include identifying designated universally accessible routes for the grounds and exploring opportunities for greater integration between Parliament Hill and surrounding areas, including support to the revitalization of Sparks Street and re-imagining Wellington Street to improve its aesthetic appeal and walkability
- Responsible leadership: Looking to the future, the continued good stewardship of the Parliamentary Campus remains paramount. The LTVP will identify ways to achieve multiple objectives simultaneously and maximize Canadians' investment in preserving our cultural heritage and protecting the dignity of Parliament
- Engaging Canadians: The future of the Parliamentary Precinct, the heart of our country's democracy, must be envisioned with the hopes of all Canadians in mind. In support of the Government of Canada's commitment to an open, transparent government, a public engagement strategy will be developed to support the LTVP Update to ensure that the Precinct continues to be a welcoming and meaningful place that reflects the values and aspirations of all Canadians
Annex C: Results for Canadians—Performance Indicators
| Expected results | Performance indicators | Target |
|---|---|---|
| Parliament buildings are operational | Number of hours per annum that essential property management services are not provided for the ongoing operation of Parliament | Less than 48 hours |
| Parliamentarians are provided with modern accommodations that meet their needs and that preserve the cultural and architectural heritage of the Parliamentary Precinct | Percentage of recapitalization and major projects delivered on time and on budget | 90%, by March 31, 2018 |
| Direct benefits Projects generate jobs for Canadians, including unique opportunities for youth, apprentices and indigenous people |
Number of person-years of employment to be created | 25,000 for past and current projects (2019) |
| Number of partnerships with colleges/universities to build industry capacity and leverage innovative practices |
5 by fiscal year 2018 to 2019 | |
| Annual % of student population in Parliamentary Precinct Branch workforce | 5% | |
| Percentage of contracts for major projects that encourage companies and sub-companies to demonstrate reasonable progress towards a fair representation of the Canadian population and to meet the labour market availability, which includes youth and indigenous people. | 100% | |
| Upcoming major projects contain provisions to sub-contract 5% of work to indigenous firms | 100% | |
| % of work as part of major projects done by small and medium enterprises | 90% | |
| Parliament is more accessible, family friendly and open to the public | New or rehabilitated buildings have improved accessibility features (e.g. barrier-free walkway) | 100% |
| Parliament is a model of sustainability | Percentage reduction in greenhouse gas emissions from 2005 to 2006 levels | 80% by 2030 |
| Percentage of electricity purchased from clean energy sources | 100% by 2025 | |
| Percentage of waste diversion of construction, renovation and demolition projects over $1 million | 80% | |
| New construction meet Leadership in Energy and Environmental Design sustainability Gold Standard | 100% | |
| Heritage rehabilitation projects meet Leadership in Energy and Environmental Design sustainability Silver equivalent standard | 100% |
| Expected results | Performance indicators | Target |
|---|---|---|
| Buildings rehabilitated to meet the needs of a 21st century Parliament, for current and future generations to enjoy | Parliament buildings are designed to maximize lifecycle to reduce long-term costs | 60 years per rehabilitated buildings |