Real property activities: Standing Committee on Government Operations and Estimates—June 10, 2022
Document navigation for "Standing Committee on Government Operations and Estimates: June 10, 2022"
On this page
- Federal building management during COVID-19
- Greening Public Services and Procurement Canada’s portfolio
- Procurement of electric vehicles
- Lac-Mégantic rail bypass, reconstruction
- National Capital Region bridges
- Leases and contracts related to the St-Bernard-de-Lacolle Border Crossing
- Rehabilitation of the Supreme Court of Canada and the West Memorial Building
Federal building management during COVID-19
In this section
Key messages
- Public Services and Procurement Canada (PSPC) is committed to providing healthy and productive work environments in line with the latest public health guidance and global best practices in property management
- Although occupancy levels are currently reduced, our buildings remain operational and all mandatory maintenance and life safety system testing continue on our regular schedule, ensuring that essential government functions can be delivered in a safe environment
- COVID-19 protocols remain in place for all leased and crown-owned assets, including:
- augmented cleaning of high touch points
- flushing of building water systems in low occupancy spaces for continued water potability
- heating, ventilation and air conditioning (HVAC) measures to increase outdoor air and maximize filtration
Key data point
- PSPC’s real property portfolio is comprised of approximately 1500 leased and Crown-owned assets
Background
Mandatory vaccinations
In alignment with the federal public service mandate, all supplier personnel (including subcontractor personnel and private sector landlord personnel) who access federal government workplaces and commercial tenants operating inside secure areas are required to be fully vaccinated against COVID-19. This requirement entered into effect on November 15, 2021.
In leased assets, the policy is applicable to federal workspaces only (almost 1100 assets). While there is no contractual recourse for mandatory vaccination in existing lease agreements, PSPC has successfully secured almost 90% positive attestations with the remaining 10% being followed up.
Publicly accessible space does not fall under the requirements of the vaccination policy.
Public Service Occupational Health Program
On May 13, 2022, Public Service Occupational Health Program (PSOHP) updated their guidance related to the lifting of restrictions within the workplace. While much of the guidance concerns the employer/employee relationship, key impacts to building operations include:
- lifting capacity restrictions in elevators and washrooms
- reopening of water fountains and shower facilities
- returning to pre-pandemic traffic flow in hallways and stairwells
- eliminating the need for specialized cleaning and disinfection after a suspected/confirmed case of COVID-19 in the workplace
Masking should still continue where physical distancing cannot be maintained.
PSPC’s augmented cleaning of high touch points and HVAC protocols remain.
Heating, ventilation and air conditioning
PSPC’s HVAC systems are designed, installed, operated and maintained to meet or exceed the requirements set out in the Canada Labour Code and the Canada Occupational Health and Safety Regulations, as well as reflect the guidance on ventilation published by the Canadian Centre for Occupational Health and Safety and the Public Health Agency of Canada during the COVID-19 pandemic.
PSPC has implemented supplemental HVAC measures to promote occupant wellness in its buildings and facilities, related to ventilation and filtration.
Cleaning costs
Base building cleaning costs have increased throughout the pandemic due to augmented cleaning protocols, seeing an increase of almost 28% in the crown-owned portfolio. These costs will continue to increase as occupancy increases.
Utility costs
While reduced occupancies may suggest lower utility costs, the reality is that utility costs have remained stable when compared to pre-pandemic costs due to continued operations, projects, and COVID-19 protocols related to HVAC and water flushing.
Parking revenue
PSPC parking revenue has decreased by approximately 77% since the beginning of the pandemic due to the majority of the federal public service working remotely. Flexible parking arrangements have been introduced to support hybrid work arrangements.
Next steps
The department continues its engagement with central agencies, clients, industry and bargaining agents to collaborate on guidance to advance procedures for the easing of restrictions and planning a safe return to the workplace.
Greening Public Services and Procurement Canada’s portfolio
Key messages
- The government is taking action to reduce greenhouse gas emissions from its buildings
- In 2020 to 2021, Public Services and Procurement Canada reported a 57.6% reduction in greenhouse gas emissions from its own buildings compared to the 2005 to 2006 baseline
- These reductions came from improvements in buildings’ energy efficiency, electricity grid improvements and the procurement of renewable energy credits
Key data points
- A decrease of 19% of the remaining emissions is expected by 2025 through the national clean electricity initiative
- A decrease of 40% of the remaining emissions is expected by 2025 through the Energy Services Acquisition Program
- Target is over 82% greenhouse gas emissions reductions by 2025 and net-zero carbon by 2030 for the Crown-owned portfolio
Background
National clean electricity initiative
PSPC has been working with the Treasury Board Secretariat Centre for greening government to develop a strategy to procure 100% clean electricity where available, as was identified in the 2019 minister of Public Services and Procurement mandate letter. PSPC will purchase electricity from new renewable infrastructure, in provinces where it is available, and will procure renewable energy certificates to displace greenhouse gas emitting electricity in locations where new infrastructure development is not presently available.
In 2018 to 2019, the Government of Canada consumed approximately 2,692,500 megawatt-hour (MWh) of electricity. Approximately 80% of the electricity procured for use in the Crown-owned building portfolio (excluding housing) comes from clean sources. The remaining 20% (532,000 MWh) will be addressed through the national clean electricity initiative.
Energy Services Acquisition Program
The Energy Services Acquisition Program is modernizing the National Capital Region district energy system, which provides heating services to 80 buildings and cooling services to 67 buildings (1.6M square meter of floor space), accommodating 55,000 occupants. Modernization of the district energy system, including the addition of electric boilers, is expected to result in a 92% reduction in greenhouse gas emissions by 2025, when compared to the 2005 baseline year.
Major projects
PSPC is ensuring that all new buildings and major building retrofits prioritize low-carbon and climate resilience with investment decisions based on total cost of ownership. Environmental impacts beyond carbon, such as waste, water and biodiversity are also considered.
Procurement of electric vehicles
Key messages
- As the government’s common service purchaser for vehicles, the department has established procurement tools for light duty vehicles that includes zero emission and hybrid light-duty vehicles
- In addition, the department is working to make other electric vehicles available, such as buses and medium and heavy commercial electric trucks
- PSPC continues to support departments and agencies with their conversion of fleets with procurement instruments to facilitate adoption of hybrid and zero emission vehicles
Key data points
- 1,255 green vehicles procured in the last 3 years
- 276 charging stations installed at 77 Crown-owned and leased locations
- Increase of 50% in light-duty green vehicles available in procurement instruments for regular fleet; increase of 30% in the executive vehicle fleet
Background
Public Services and Procurement Canada is the service provider for purchasing electric vehicles as well as electric vehicle charging stations. These vehicles are made available to all federal departments as fleet vehicles and as executive vehicles for cabinet ministers, ministers of State, secretaries of State and eligible deputy heads. The government also encourages employees to use low-carbon forms of transportation to reduce emissions from employee commute.
Charges related to the charging stations are funded by the users, with the exception of executive vehicles.
Two suppliers have been awarded procurement instruments for electric shuttle buses. Public Services and Procurement Canada also recently posted tender documents to procure electric commuter buses. The department is also engaging companies and suppliers as it seeks to move forward with the procurement of electric medium and heavy trucks.
Lac-Mégantic rail bypass, reconstruction
Key messages
- The Government of Canada is proceeding with an open, transparent and equitable process to acquire the properties needed to build the rail bypass
- Public Services and Procurement Canada is collaborating and communicating regularly with Transport Canada (TC) in order to move quickly on this file while ensuring a fair acquisition process for property owners
- The Government of Canada is pursuing negotiations aimed at reaching agreements that are satisfactory to all parties
Key data point
- 105 parcels of land are to be acquired
Background
Transport Canada has mandated PSPC to acquire the properties and to manage the technical contracts related to the acquisition process. Therefore, PSPC is responsible for surveying and appraising the properties, meeting with the owners to explain the acquisition process, negotiating with them by mutual agreement when possible and, ultimately, implementing the expropriation process in the event of an impasse during the mutual negotiation process.
The property appraisal process began in the fall of 2019. On August 26, 2020, AECOM, the consultant appointed to design a route for the bypass, submitted its final design development report. The right-of-way submitted was technically reviewed by Central Maine and Quebec Railway (CMQ) and TC. PSPC received the final version of the route on May 28, 2021, with subsequent changes being received until December 14, 2021.
On May 25, 2021, federal parliamentarians unanimously passed a motion calling for work to be completed in 2023 in accordance with the schedule. On May 27, 2021, TC, as part of an agreement with CMQ, committed to taking possession of the properties in the winter of 2022.
Two virtual information sessions, organized by TC and attended by PSPC, were held in summer 2021 to inform the property owners that an expropriation process has become unavoidable.
On October 22, 2021, the negotiation process began after offer letters were sent to the owners.
On December 22, 2021, a meeting took place to discuss the status of the project and acquisition process. PSPC, TC, the mayors of Lac-Mégantic, Frontenac and Nantes, the Honourable Marie-Claude Bibeau, as well as other federal members of Parliament (MPs) and representatives of the ministère des Transports du Québec were in attendance. On January 13, 2022, a second meeting took place between PSPC, the municipalities' mayors, TC, and the member of Parliament (MP) for Mégantic—L'Érable to discuss the project's technical elements.
On January 27, 2022, TC representatives organized 2 public, virtual information sessions as part of the public consultations held by the Canadian Transportation Agency. Members of the public also had the opportunity to submit written comments to TC, during a longer consultation period taking place from January 21 until February 4, 2022.
On February 4, 2022, TC received a letter co-signed by the mayors of the 3 municipalities affected by the project, in which 7 requests are made directly to the Government of Canada. Among them is the request to extend the negotiation period with owners by an additional 3 months. On March 24, 2022, TC announced the granting of a 3-month extension of the negotiation period, giving property owners until August 12, 2022 to negotiate with PSPC.
However, even if mutual negotiations are concluded, legal action by the Fédération de l'Union des producteurs agricoles-Estrie currently prevents 36 landowners from selling their lands to the Government of Canada. The hearing of this motion at the Tribunal Administratif du Québec (TAQ), which was scheduled on April 6, 2022, has been postponed twice and is now scheduled for July 6, 2022. The TAQ has to determine if the Attorney General of Canada should be involved in the case. The decision following this hearing could be rendered in early fall 2022.
As of February 15, 2022, 43 offers have been submitted.
National Capital Region bridges
Key messages
- Public Services and Procurement Canada is working closely with the National Capital Commission (NCC), the cities of Ottawa and Gatineau, and other partners, to ensure federal bridges in the National Capital Region are safely and effectively serving Canadians
- Planning activities, including the impact assessment process, are underway to replace the Alexandra Bridge with construction of the new bridge scheduled to begin in 2028. In the meantime, inspections and repair work continue to ensure the bridge remains safe and accessible until it is replaced
- The National Capital Commission has approved a Long-Term Integrated Interprovincial Crossing Plan, developed in close collaboration with all its partners, to support decision-making on any future crossings. The study explores a number of important matters that should be taken into consideration during the planning of any additional crossing
Key data points
- There are 5 interprovincial crossings in the National Capital Region:
- Public Services and Procurement Canada manages and operates the Alexandra Bridge (built in 1901), Chaudière Crossing (with the Union Bridge built in 1919 being the oldest of the 8 structures that comprise the Chaudière Crossing) and the Macdonald-Cartier Bridge (built in 1965)
- the National Capital Commission manages and operates the Champlain Bridge (built in 1928) and the Portage Bridge (built in 1973)
Background
Budget 2019 provided funding $490 million for the replacement of the Alexandra Bridge, the rehabilitation and ongoing maintenance of the Macdonald-Cartier Bridge, and the Chaudière Crossing. It also provided direction to refresh technical studies on a potential sixth interprovincial crossing in the National Capital Region (NCR) and to develop a Long-term Integrated Interprovincial Crossings Plan.
Sixth crossing
Budget 2019 directed the National Capital Commission to “Address the demonstrated need for an additional NCR crossing by refreshing existing studies and developing a long-term integrated interprovincial crossing plan with both provincial governments and the cities of Gatineau and Ottawa.”
The NCC, in collaboration with Public Services and Procurement Canada, refreshed existing studies on a potential sixth crossing, including cost estimates and the evaluation of the corridors established in 2013. The refreshed studies were completed and accepted as final versions by the NCC’s Board of Directors in June 2020. In addition, the Long-term Integrated Interprovincial Crossings Plan was completed and approved by the Board in January 2021.
Budget 2021 mandated PSPC to establish a dedicated project office responsible for addressing the need for an additional NCR crossing, jointly with the NCC. The project office was established in fall 2021 and will continue to grow as the project progresses. The project office is proceeding with project planning, gathering initial geotechnical information, and development of a business case.
Alexandra Bridge
While the Alexandra Bridge is designated as a national historic civil engineering site by the Canadian Society for Civil Engineering, the bridge is over 120 years old and is nearing the end of its lifecycle. A 2018 third-party life-cycle cost assessment determined that replacing the bridge would be less disruptive to the public, as well as more economical, than attempting to maintain the existing bridge. The planning and impact assessment process for this replacement project are underway. The project team will continue to publish studies proactively as the project progresses.
With regard to the Alexandra Bridge replacement, current activities include public and stakeholder consultations and engagement with Indigenous partners which will inform the impact assessment. The Impact Assessment Agency posted the initial project description, the first step of the impact assessment process, on its website on March 24, 2022.
Chaudière Crossing works
The Chaudière Crossing links Booth Street in Ottawa to Eddy Street in Gatineau. It consists of 8 separate structures that span over the Ottawa River and hydro-eclectic channels. The 8 structures, from Ottawa to Gatineau, are:
- Bronson Channel Bridge
- Ottawa Hydro Electric Power Channel Bridge
- Buchannan Channel Culvert
- Union Bridge
- Arch number 1
- Hull Causeway Bridge
- Arch number 3
- Hull Trestle Bridge
Work is underway on 2 of the 8 structures, which is to widen the Hull Causeway and complete a major rehabilitation for the 100 year old Union Bridge. The work started in July 2021 and will continue until summer 2023. A positive outcome of this work will be the addition of dedicated cycling lanes on the entire length of the Chaudière Crossing.
Champlain Bridge
Ongoing and planned work by the NCC seeks to address required capital rehabilitation on Champlain Bridge, including addressing rehabilitation requirements recommended by industry best practices to support the bridge over its entire lifespan and ensure continuous public access and safety. Following extreme floods in 2019, an investigation of shoreline erosion was conducted to assess the damage caused, and emergency work was carried out to continue the operation of the bridge. Upcoming planned projects include surface rehabilitation, along with the replacement and the improvement of cycling safety features (for example, unidirectional buffered bike lane with curbing and delineators)—this work is scheduled to begin in summer 2022. Pier rehabilitation is also planned for a later date—the start date of this work remains to be determined.
Leases and contracts related to the St-Bernard-de-Lacolle Border Crossing
Key messages
- On behalf of the Canada Border Services Agency, Public Services and Procurement Canada negotiated leases for temporary space to receive refugee claimants and process their claims in Saint-Bernard-de-Lacolle, Quebec
- Given the location of the property and its proximity to the border, this was an ideal location for this purpose
- Generally, Public Services and Procurement Canada is not able to unilaterally disclose certain details of lease agreements given that some information may be commercially confidential; however, I can confirm that the government paid fair market value for the leases
Key data points
- March 2017: With PSPC’s support, the Canada Border Services Agency put in place a first, sole-sourced lease with Importations Guay Ltée to help accommodate an increase in asylum seekers at the St-Bernard-de-Lacolle border crossing
- 2017: Various lease agreements (for example, lease for office space, land lease, contracts for use of the hotel adjacent to the border crossing) were concluded with companies owned by Pierre Guay
- These agreements have been renewed until June 30, 2022
- In 2021, 2 new lease agreements were put in place with Importations Guay Ltée, both running from April 1, 2022, to March 31, 2027
Background
On October 12, 2021, following a news release, Canada Border Services Agency received a media request regarding the value of the agreements between the Government of Canada and Importations Guay Ltée. This request was denied on the basis of confidentiality and contractual clauses.
On December 7, 2021, Public Services and Procurement Canada received a media request from La Presse requesting the value of the agreements between the Government of Canada and companies owned by Pierre Guay. Public Services and Procurement Canada did not disclose the value of the agreements signed with Pierre Guay’s companies due to reasons of commercial confidentiality. On December 7, 2021, Public Services and Procurement Canada also received an access to information request concerning the lease and all related information, citing a 2004 Federal Court of Appeal decision arguing the department must make the value of the lease public.
[Redacted]
On March 10, 2022, Public Services and Procurement Canada received a media request from La Presse regarding all the leases and contracts that the department has with companies owned by Pierre Guay. On March 15, 2022, this information has been disclosed, except for the amounts of the contracts.
On April 7, 2022, Public Services and Procurement Canada responded to La Presse regarding the 2004 Federal Court of Appeal decision and stated that this judgment did not change its position. The same day, La Presse reiterated its request to obtain all the contracts and leases. On April 11, 2022, in a verbal discussion, Public Services and Procurement Canada’s national communications team informed La Presse that the information provided on March 15 included all the contracts and leases. La Presse then claimed to be dissatisfied not to get the leases’ amounts.
On April 20, 2022, Public Services and Procurement Canada received an access to information request to obtain all exchanges and communications related to this file. This request is currently being processed.
Rehabilitation of the Supreme Court of Canada and the West Memorial Building
Key messages
- More than $1 billion is being invested in the rehabilitation of the Supreme Court of Canada and the West Memorial Building (WMB)
- When completed, these buildings will provide modernized workplaces that are safe, secure, accessible and environmentally sustainable, while conserving their heritage value
- These projects will create jobs by creating employment opportunities for Canadians in construction, manufacturing, and professional services
- All measures to ensure the continuous delivery of operations in the Supreme Court of Canada Building (SCCB) are in place, including the monitoring of key building components and pursuing urgent repair and maintenance
- Public Services and Procurement Canada has been working with the construction manager to hire Indigenous firms and staff during the West Memorial Building construction phase. The Supreme Court of Canada Building rehabilitation project will also include Indigenous participation, through upcoming tendering processes in the fields of architecture, engineering, construction and support services
Key data point
- The WMB will serve as interim accommodation for occupants of the Supreme Court of Canada Building from 2024 to 2032, while the SCCB rehabilitation takes place
Background
The West Memorial Building has been vacant since 2008 and requires major rehabilitation in order to meet the standards of the National Building Code of Canada. This includes upgrades to meet current building standards for sustainability, health and safety, and accessibility, while at the same time conserving its heritage character. Demolition and enabling work started in fall 2019, and construction started in April 2020.
The contract award to Moriyama & Teshima Architects and Kasian Architecture Interior Design and Planning Ltd. for design and architectural services was announced on February 23, 2018, and the contract to EllisDon Corporation for construction management services was announced on October 26, 2018.
The Supreme Court of Canada Building rehabilitation project is progressing, with the request for qualification for architect/engineer services published on August 19, 2020, and the one for construction Mmnager on August 31, 2020. The occupants are scheduled to move into the West Memorial Building in summer 2024, allowing the Supreme Court of Canada Building’s rehabilitation to start in fall 2024.
Indigenous involvement
West Memorial Building
- A contract was awarded to Adirondack Information Management, an Aboriginal supplier, for project monitoring services such as conducting independent review on the program of work, to assess its effectiveness and identify areas of improvement
- An additional contract was awarded to Indigenous firm Mishkumi for scheduling services
Supreme Court of Canada Building
- The SCCB rehabilitation project, through upcoming tendering processes in the fields of architecture, engineering, construction, and support services, will include a point-rated Indigenous Participation Plan based on lessons learned from other recent major projects with similar initiatives
- The procurement process includes terms and conditions in which bidders will be evaluated on their commitment to acquire goods and services from Indigenous firms or maximize the use of Indigenous employment or training and development
Greening
The rehabilitation projects will reduce the buildings’ impact on the environment by producing less greenhouse gas and using less energy. The renovated buildings will offer a healthy workspace that are more accessible and that supports the wellbeing of employees.
Accessibility
The renovated buildings will be fully accessible by providing solutions such as a ramp at the entrance, elevators, electric adjustable tables, power doors and tactile signage for people with visual and physical disabilities. The projects will also address changes in the Canadian standards for accessibility to accommodate a full range of wheeled mobility devices.
Impact of the carpenters’ labour strikes
The West Memorial Building rehabilitation project was impacted by several recent union strikes (such as, International Union of Operating Engineers, the Carpenters & Drywall District Council of Ontario). The project incurred delays to the structural work upgrades required throughout the building as formwork and concrete pours could not be completed. Drywall and exterior masonry work were also impacted. PSPC is in discussions with the construction manager, who will need time to assess the impacts of the strikes to the project schedule and critical path.
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