Table of Contents



Full Investment Analysis Report (for Asset Projects at Project Approval and initial Expenditure Authority)<Project Name><Location>National Project Management SystemAnalysis PhaseVersion: March 2019Prepared by:Date: SIGMA number: Table of Contents TOC \o "1-3" \h \z \u Executive Summary PAGEREF _Toc347735081 \h 21.Problem/Opportunity Definition PAGEREF _Toc347735082 \h 62.Background PAGEREF _Toc347735083 \h 62.1 Project History PAGEREF _Toc347735084 \h 62.2 Building Condition PAGEREF _Toc347735085 \h 62.3 Tenant Considerations PAGEREF _Toc347735086 \h 72.4 Strategic Context PAGEREF _Toc347735087 \h 72.5 Stakeholders PAGEREF _Toc347735088 \h 73.Project Scope PAGEREF _Toc347735089 \h 74.Identification & Analysis of Options PAGEREF _Toc347735090 \h 84.1 Options Considered PAGEREF _Toc347735091 \h 84.2 Non Feasible Options PAGEREF _Toc347735092 \h 84.3 Feasible Options PAGEREF _Toc347735093 \h 84.4 Financial Analysis of Options PAGEREF _Toc347735094 \h 84.5 Risk Assessment PAGEREF _Toc347735095 \h 114.6 Conclusions PAGEREF _Toc347735098 \h 125.Strategic Impact PAGEREF _Toc347735099 \h 126.Recommendation PAGEREF _Toc347735100 \h 127.Approval Authority and Funding PAGEREF _Toc347735101 \h 127.1 Cost Estimate and Cash Flow Table PAGEREF _Toc347735102 \h 138.Implementation Plan PAGEREF _Toc347735103 \h 139.Project Team, Approval and Signatures PAGEREF _Toc347735104 \h 1310.Appendices PAGEREF _Toc347735105 \h 14[Upon completion of editing, update Table of Contents as follows: Right click on grey area of table, select ‘update field’, choose ‘update entire table’, then press the ‘OK’ button. Page numbers will be automatically updated.]This template serves as a helpful tool for preparing an 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.Note: Please attach (or copy) the Summary Cash Flow Table (from Real Property Project Funding and Cost Planning Workbook). For any NPMS full project that is, or potentially may be, requesting capital funding (Vote 5, B141 or B143), a betterment test is required to validate the funding. Choices include completion of the RP Project Funding and Cost Planning Workbook for work in crown-owned buildings, or contacting Finance and Administration Branch (FAB) directly for a manual betterment test for those projects with other “focuses” (i.e.: lease, engineering asset, infrastructure, etc.).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 (ex: Project Approval [PA]/Expenditure Authority [EA] or amended PA/EA) and a brief definition of the project scope (ex: 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 (ex: base building estimate and/or fit-up) and timing (ex: 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 the first Expenditure Authority (EA1);The project is seeking Project Approval in the amount of [insert amount and indicate amount before taxes] and Expenditure Authority1 in the amount of [insert amount and indicate amount before taxes]2, to [indicate purpose]. The in-service date or construction end date is [insert date]. Expenditure Authority is being sought to proceed with the development of design specifications and to obtain substantive cost estimates for EA2.Note: 1 IARs requesting project approval should also identify the amount of expenditure authority, based on substantive cost estimates. 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.Project InformationProject 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”] Instructions: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: 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 PVCOA and the risk-adjusted PVCOA (if calculated) for each feasible option. FeasibleOption 1 (Present Value Cost $XXM – construction cost $XXM)Option 2 (Present Value Cost $XXM – construction cost $XXM)Non-feasible Option 3 The selected option should include a concise statement that explains the rationale for selecting the recommended option. The recommendation should be based upon the financial, non-financial and risk factors that contribute to making this the best value approach.As per the TBS-PSPC IIP Protocol, please complete the table (below) and indicate whether Minister Engagement for the project is required.Criteria for Minister Engagement: Yes* ? No ? (check one)Yes/NoNotes #1The project, or others associated to it, is likely to attract negative media coverage.2The project is part of a government-wide initiative.3The project is related to observations from OAG.4The Minister has shown interest or has been briefed on this project or others of a similar nature in the past (e.g. Minister briefings, TB submissions, speeches, etc.).5The project has significant security considerations.6The project is high risk or high dollar value.Note 1:Note 2:* Yes indicates that the Minister may require a briefing on the project as per governance. Approval Authorities and Funding: Instructions:Provide the PCRA rating level with a score of [%] for the project,Identify the appropriate delegated authority required for project approval,Indicate if there is a requirement for a TB Submission for Contracting Authority (CA) (ex: CA for design/CA for construction) and/or to access new funding. (e.g.: table below or similar)Table No.ItemAmountApproval AuthorityPA$X,XXXADM, RPSCA$X,XXXTreasury BoardPCRA/IIPLevel 2RPIBState 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 OGD direct (client) costs. (Note: Non-FFE – 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). Project RisksInstructions: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: $ XXXHighest Risk StatementsRisk Assessment Risk ResponseProblem/Opportunity DefinitionKey Issues (factors driving the initiation of the project)Maintain or improve assetIssues related to insufficient effectiveness of a systemImproving environmental performances Client RequirementsPossible OpportunityEmergency situationPrevious approvals, decisions or agreements:Regional Investment Management Board decision (RIMB)Real Property Investment Board (RPIB)Treasury Board approvals (TB)Cabinet or Ministerial decisionInterdepartmental agreementNote: This section should not include any indication of the proposed solution. Its purpose is to concentrate on what drives the project.Background2.1 Project History Short historyRelationship to other projects or programs (if applicable) Compliance with NPMS Substantially completed Identification close out document (to be included as an appendix)2.2 Building ConditionBrief description of the buildingAge, area, location, main characteristics, classification of the building, building owner Environmental performance assessment (BOMA BESt, LEED, etc)Heritage considerationsStrategic value of assetFuture plans for use of assetOverall 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.)LimitationsRecent renovationsFacility Condition Index (FCI) (if applicable)Upcoming requirementsOperational, financial, environmental and functional performanceProject related problems and impactsAccessibilityImpact of current problem on tenants (if applicable)2.3 Tenant ConsiderationsList the OccupantsType and amount of space occupied in form of a table (if appropriate)ClientType of spacem2um2rOccupancy instrument (OI) Expiry DateXStorage473.9494.3August 31, 2016YOffice SPS2,744.0774.32,982.6807.5December 31, 2017ZOffice6,900.07,495.1September 30, 201810,892.211,779.5Information on client changes, movement, issues, etc. (if applicable)2.4 Strategic ContextDescribe 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 StrategyStrategic Action PlanAsset Management PlanBuilding Management PlanClient 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)List all the relevant stakeholders who have an involvement in the problem/opportunityBriefly describe their stakeProject Scope 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 BMPHighlight any special issues/requirements relative, but not restricted to the following:Technical requirementsLevel of urgencyHealth and safetyEnvironmental requirementsSustainable Development Strategy requirementsRequirement based on a current strategyPolicy requirementsTiming requirementsSecurity requirementsAccessibility requirementsRequirement to address the condition of the AssetHeritage buildingClient requirementsOther requirementsIdentification & Analysis of OptionsThe information in the following section should only summarize the key findings of the Feasibility Report and should be updated, if applicable. 4.1 Options Considered Identify and describe all reasonable options for satisfying the project requirements4.2 Non Feasible OptionsClearly explain why the eliminated options are not considered for further analysis4.3 Feasible Options Clearly explain why the retained options are being considered for further analysis4.4 Financial Analysis of OptionsNote: This section summarize the non-financial analysis of the Feasibility Report, except that a cost estimate and schedule of work for each option analyzed must now be included.Status Quo option must always be fully analyzed. For asset projects, Status quo is the option of maintaining the asset as-is, with minor repairs when necessary. The estimated project cost for this option is the average maintenance cost per year.Description of options:Option 1: Status QuoScope: Clearly explain the details of this option (what they consist of) and its limitationOption 2Scope: Clearly explain the details of this option (what they consist of) and its limitationThis option includes/excludes:Additional scope of work (compared to Option X):Option 3Scope: Clearly explain the details of this option (what they consist of) and its limitation This option includes/excludes:Additional scope of work (compared to Option X):Advantage and Disadvantage and Cost/Schedule Estimate Table. For example:OptionsAdvantagesDisadvantagesCost & ScheduleOption 1: Status QuoDisruption: No added disruptions to elevator service by removing elevators from service for upgrading.Codes and Standards: Does not address non-compliance with current barrier free design, B44 Elevator Safety Code, and safety bulletin from Technical Standards and Safety AuthorityFuture maintenance: Increased capital and maintenance costs due to the replacement of obsolete components of the existing control and drive systems. Tenant satisfaction: Continued tenant dissatisfaction regarding elevator service and reliability including numerous shutdowns and entrapments.Cost Estimate: $XXXX (average cost of maintenance repair, and/or any opportunities cost if applicable) NPV if applicableSchedule (start and completion)Option 2: Upgrade to Comply With Current B44 Elevator Safety Code OnlyHealth and Safety: The elevator system will have a significant overall improvement to the level of safety.Codes & Standards: Full compliance with current barrier free design, B44 Elevator Safety Code, and safety bulletin from Technical Standards and Safety Authority.Disruption: Disruption to elevator service, as one elevator at a time will be down for approximately four to five weeks for upgrading.Tenant Satisfaction: No improvements in elevator service or reliability.Future modernization: Approximately 15-20% of this work (and costs) would become redundant when a major modernization is carried out in the near future.Energy Efficiency: No energy-related savings as the original drive and control equipment would be retained. Cost Estimate: $XXXX (Total project cost estimate, current dollars, Class D, including GST/HST of $XXX) NPV if applicableSchedule (start and completion)Option 3:Complete Elevator ModernizationHealth and Safety: The elevator system will have a significant overall improvement to the level of safety.Codes and Standards: Full compliance with current barrier free design, B44 Elevator Safety Code, and safety bulletin from Technical Standards and Safety Authority.Long-Term Solution: Completely refurbished custom cab interiors that should not require refurbishing for another 10-15 years.Tenant Satisfaction: Significant improvement in elevator service and waiting times with the installation of microprocessor based computerized controls and dispatching as well as increased system reliability.Energy Efficiency: Elevator energy savings of approximately 40% with the installation of solid state motor drives and permanent magnet alternating current gearless drive machines.Recapitalization Project: Staging and timing of other projects within the complex may incur revisiting, upgrading or changing some base building which form part of this project.Disruption: Longest shutdown time for each elevator. One elevator at a time will be out of service for approximately 12 weeks.Cost Estimate: $XXXX (Total project cost estimate, current dollars, Class D, including GST/HST of $XXX) NPV if applicableSchedule (start and completion)Some examples of advantage/disadvantage that can be used:Project requirement satisfactionStrategic compatibility (Long Term Vision and Plan, NIS, RIS, AMP, CBIS etc.)Impact on diversity or balance of the inventoryTiming requirements respectedSupport goals and objectives of PSPC Sustainable Development StrategyClient requirements satisfactionSuitability of accommodationHealth and SafetySeismic/CodeConservation of Heritage ValueContinuity of OperationsFlexibilityDisruptions to tenantsAccessibilityFederal presenceGood Neighbour PolicyEnvironmental factorsAboriginal considerationsCostFor projects that require National approval, also use an “Evaluation Matrix for Qualitative Analysis”Each factor should be explainedNon-Financial FactorWeightOption 1Option 2Option 3ScoreScoreScoreFactor 130302730Factor 225222525Factor 320171016Factor 41515512Factor 510866Total Score100927389Note: not applicable if there is only one feasible option.Description of results of analysis and conclusion reached for each factor (must justify ratings)4.5 Risk AssessmentEvaluation of relative level of risk for each option as applicable (Evaluation Matrix for Risks)Risk FactorsOption 1Option 2Option 3LIScoreLIScoreLIScoreClient requirements not being metMM4Changing client requirements LL1Timing delaysLH3Cost increaseLH3Negotiation riskLL1Market conditionsLL1FundingMM4Lack of human resourcesLL1TOTAL SCORE18Note 1: Table not applicable if there is only one feasible option.Note 2: For project requiring National approval, a 5x5 matrix (Very High-High-Moderate-Low-Very Low) is necessary.Impact (I)High (H)3369Moderate (M)2246Low (L)1123123Low(L)Moderate (M)High(H)Likelihood (L)Legend:Examples of other risk factors relevant to each option Risk that the project may not fully rectify an identified problemRisk of user needs not being metRisk of changing requirementsRisk of not meeting timing requirementsRisk of cost overrunsRisk of future performance being impairedRisk of environmental degradationRisk of exceeding approved fundingRisk of Base building System FailureRisk related to Indoor Air Quality (IAQ)Risk related to Fire Code RequirementsRisk related to a request for Non-ComplianceRisk of Political PressureRisk of client commitment to the projectRisk of changing priorities in the Federal Government or DepartmentOther related risksExplanation of the evaluation matrix per risk: Description of resultsConclusion 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 matrix4.6 ConclusionsCombination 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” optionConvey the risks of not proceeding with the recommended option to further articulate the need to implement the recommended option Strategic Impact Identify strategic value of proceeding with the projectDemonstrate project is carried out in a manner consistent with departmental policies and strategies.Use checklist of strategic and policy compliance table below. Apply it specifically to each individual project: Policy/StrategyComplianceJustification(always required)YesNoAsset/Building Management PlanSustainable Development StrategyGood Neighbour Policy (if applicable)Community-Based Investment StrategyRegional Portfolio StrategyRecommendationMaximum length of 2 paragraphsClear and detailed statement of the proposal being recommended for approval. Project definition Cost (GST/HST, Class of estimate, Expenditure authority, Risk allowance)TimingComments on urgency of projectIssues to be brought to the attention of RPIB or RIMB (decision makers)Approval Authority and FundingPCRA ScoreDate when included on IIP listIdentify Delegated Approval Authority (DG, ADM, Deputy Minister, TB)Source of funding (including client funding, if applicable)Expenditure authority of $ XX for project planning and designCPBN no: XXXX7.1 Cost Estimate and Cash Flow Table?2017/20182018/20192019/20202020/2021TotalProject Cost $ $ $ $ $ Risk allowance $ $ $ $ $ Sub-Total $ $ $ $ $Escalation $ $ $ $ $GST/HST $ $ $ $ $ Total $ $ $ $ $ See detailed cost breakdown in AppendixImplementation PlanExplain the implementation tasks and activities, including engineering surveys, planning studies and other documents that are required to move the project forwardInclude project schedule Key milestones for projectTiming to take project to Expenditure Authority for project implementationAnticipated completion dateProvide detailed project schedule attached in appendixRisk Management Plan (attach as appendix)Identify key risks including summary of risk mitigation measures only for the recommended optionProject Team, Approval and SignaturesPosition (examples)OrganizationNameProject DirectorSenior Project LeaderSenior Project ManagerProject ManagerProf. and Tech. ResourcesSenior Financial AdvisorProperty ManagerOther (specify)ActionDateSignaturePrepared byReviewed byRecommended byApproved byAppendicesBelow are examples of items that could be included as an appendix to the IAR:Identification close out documentRisk Management PlanDetailed project costs/Cash Flow TablesSummaries of building condition and building performanceCanadian Environmental Assessment Act, Environment Assessment ReportProject Sustainable Development Strategy with targetsProject Implementation scheduleCommunication Strategy PCRA Summary Sheet ................
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