2021 Minister’s Transition Book 2: Core responsibility 3—Property and infrastructure

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Real Property Services Overview

National office portfolio strategy

Overview

In 2021, the department created the Public Services and Procurement Canada 2021 to 2022 Office Long Term Plan. The plan is aspirational and contains targets designed to right-size, recapitalize and modernize the Government of Canada’s office portfolio over a 25-year planning horizon.

Mandate

Constructed around these key pillars—people, portfolio, greening, digital technology and socioeconomic—the plan enables an integrated approach to investment planning and the life-cycle management of the department’s office assets for both the department and its clients while allowing for a whole-of-government perspective.

The ultimate goal is to have a modern office portfolio in good or greater overall condition with optimal usage that delivers on greening targets and meets or exceeds accessibility standards. The plan is evolutive in nature and takes into account the dramatic change in working patterns resulting from the ongoing COVID-19 pandemic. It strives to achieve a right-sized portfolio with an overall physical footprint reduction that could drive billions in ongoing savings for the Government of Canada. This is especially notable given that infrastructure is the federal government’s second largest expense after salary expenses.

Key activities

Public Services and Procurement Canada’s previous plan, developed in 2019, was written prior to the pandemic and embodied many of the same goals. Since then, the pandemic has forced the majority of government office workers to work from home on a full-time basis and worker productivity has not materially suffered as a result. Various surveys among workers and executives in both the public and private sectors indicate that a significantly increased level of telework relative to pre-pandemic levels is likely to continue into the foreseeable future. This trend positively responds to an enhanced work-life balance for employees while reducing organizations’ demand for traditional office accommodation.

The trend of reducing the amount of office space through telework and unassigned workstations was occurring prior to the pandemic among various governments around the world and among many major private sector employers. The pandemic has served to accelerate and intensify this trend. Indeed, a growing consensus has been established, indicating that COVID-19 has materially altered both the future of work and the future of the workplace. Remote work which, historically, may have been considered only on an exceptional basis is likely here to stay. In this way, the office environment is expected to evolve into an environment that promotes collaboration and innovation, rather than a space for individual work.

Where viable, this plan supports moving away from having segregated departmental space to providing interdepartmental shared spaces, noting that this transformative change has significant policy implications with regard to the traditional funding model. This agile and flexible approach, that leverages activity-based, shared space in support of broader portfolio objectives to enable a hybrid work model, is called GCcoworking. It is considered one of the key components of a modern, diverse office portfolio that offers a network of strategically placed office space, contributing to, amongst many other things, a reduction in greenhouse gas (GHG) emissions by decreasing employee commute distances.

The 2021 to 2022 Office Long Term Plan also introduces and highlights a number of new departmental tools and pilot projects designed to assist in investment decision-making with respect to assets (both owned and leased). This will assist in determining which assets should be recapitalized, modernized or disposed of. GCcoworking is a pilot that is designed to explore the potential benefits of providing multi-user Government of Canada workspaces as opposed to departmentally segregated accommodation. These initiatives will allow the department to take evidence-based decisions and to ensure that the best accommodation solutions are chosen.

The plan was written while COVID-19 was, and remains, an active pandemic; consequently, a level of uncertainty remains around the pace and precise extent of remote working adoption in the long term. In this context, the plan will be monitored and updated annually.

Partners and stakeholders

This Office Long Term Plan is client-centric, focused on delivering a modern, green and accessible workspace to the employees of the 103 client departments that Public Services and Procurement Canada serves. It also responds to a growing desire for flexibility and agility in real property portfolio management. Broad consultation, both internal and external to the department, was performed during the development of the plan.

Key considerations

The most significant impediment to the implementation of the plan is the availability of sufficient long-term capital funding to support required investments to modernize and right-size the portfolio. Over time, these investments will drive financial efficiencies and operating savings as a result of a more effective use of space. Presently, our current funding framework includes both capital and operating votes that limits the department’s ability to recycle operating savings to support the capital needs of the portfolio.

Additional risks and challenges that could impact the implementation of the Office Long Term Plan include:

While the pace of modernization and extent of remote work remains to be determined, the department continues to:

Return to the workplace

Mandate

Public Services and Procurement Canada is the designated custodian of general-purpose office facilities provided on an obligatory basis to departments and agencies to support delivery of their programs.

Currently, significant efforts are being directed toward the development of more flexible work environments, which enable employees to work from various locations, including their homes, and the optimization of the government’s office space portfolio.

Key activities

Public Services and Procurement Canada has provided leadership to the federal community related to the real property aspect of the return to the workplace through a number of pathfinding initiatives within its own department. One innovative approach is the use of shared space on floors (activity based working) to create a network of multiple work locations available to all departmental employees. This provides flexibility for employees to choose from multiple work locations including home, operational locations for specific activities, “neighbourhoods” of space for employee collaboration, and general purpose office spaces for anyone.

The pathfinder includes GCcoworking spaces which are modern activity-based spaces shared between multiple departments as part of an innovative pre-pandemic pilot. Under the gradual return to the workplace, these spaces have initially been limited to Public Services and Procurement Canada employees. By 2022, however, the GCcoworking sites may be extended to other departments. Departments have signalled a strong desire to include these locations as part of their own return to the workplace strategies and we anticipate a high demand for these modernized workplaces once restrictions have eased. Public Services and Procurement Canada continues to engage client departments in order to understand evolving and anticipated office accommodation requirements.

Partners and stakeholders

The department’s return to the workplace strategy relies on a close collaboration with client departments, central agencies, centres of expertise and service delivery partners:

Key considerations

One key challenge across client departments and for Public Services and Procurement Canada itself is understanding how many employees will return to the office and at what frequency. It is expected that this may vary based on mandates and regional needs, amongst other factors.

A second key challenge is supporting a hybrid workforce (flexible workforce). Human resources, security and data policies that no longer reflect post-pandemic realities as well as insufficient network capacity to support hybrid work in office towers represent complex, inter-related challenges. To address this in our own spaces, the department has prepared a set of readiness criteria to ensure that the work sites being made available are aligned with certain considerations while new and adapted measures are being put in place. This is a model that could be adopted by other departments.

Longer-term challenges include:

A structured and organized gradual return to the workplace will not only help us to manage expectations within current limitations but it will also serve to bridge the gaps in the end-state vision of the hybrid and modern workplace and optimize the future model.

Reducing federal greenhouse gas emissions

Mandate

Public Services and Procurement Canada currently has 343 Crown-owned and 10 lease purchase buildings within its portfolio. As the government’s real property expert, the department has a significant opportunity to play a leadership role in reducing greenhouse gas emissions from its building operations.

Key activities

The following activities are being undertaken to achieve various greening objectives.

Optimization of the real property portfolio
Continuous improvement to energy performance of assets to reduce greenhouse gas emissions
Use of purchase agreements for clean electricity
Federal buildings initiative

Greenhouse gas options analysis methodology

Partners and stakeholders

The department is working closely with the Treasury Board of Canada Secretariat to achieve the commitments outlined in the Greening Government Strategy. Public Services and Procurement Canada was the first federal real property custodian to complete a carbon neutral portfolio plan. Following the department’s lead, many other departments have developed carbon neutral plans, in partnership with Public Services and Procurement Canada, including the Department of National Defence, Agriculture and Agri-Food Canada, Transport Canada, Canada Border Services Agency, Natural Resources Canada, Environment and Climate Change Canada, and Correctional Services Canada.

CanmetENERGY in Varennes—Natural Resources Canada: CanmetENERGY in Varennes, Quebec leads innovative science and research activities to develop and implement solution pathways that create value and a sustainable energy future for Canadians. The department and CanmetENERGY in Varennes have signed a memorandum of understanding to enhance collaboration and to provide expertise, services, and tools to assist federal organizations (including the department) in reducing greenhouse gas emissions.

Real property contractor: Brookfield Global Integrated Solutions is the largest provider of integrated real estate and property management services in Canada. The department has a contract with Brookfield Global Integrated Solutions for property management and select project delivery services. This business partnership supports the department in achieving important emission reductions with Brookfield Global Integrated Solutions providing portfolio expertise and knowledge gained form other important real property management contracts across the globe.

Key considerations

Cost

Greening objectives, when considered amongst other factors, introduce additional cost considerations to real property and infrastructure projects, creating funding challenges.

Industry resource capacity

Consulting firms and contractors are struggling to keep pace and deliver enhanced greening services at a time when there is high demand and competition.

Internal resource capacity

The department relies on internal experts to set national functional direction and to deliver expert technical services to federal client departments. Similar to industry, the government faces a challenge in recruiting qualified individuals as a result of the ever-growing demand for greening expertise across the country.

Keeping pace

The diversity, age and national distribution of the department’s real property portfolio provides a level of complexity when planning new construction and major building retrofits. Flexible portfolio planning is required to ensure appropriate long-term investment decisions are made that prioritize low-carbon investments. The department has developed a number of new tools and adjusted business processes in order to achieve this. The challenge lies in keeping pace with the evolving greening commitments for real property and infrastructure projects that take many years to complete.

Energy Services Acquisition Program

Mandate

In June 2019, the department’s Energy Services Acquisition Program signed an agreement with Innovate Energy to form a public-private partnership for the modernization of the district energy system in the National Capital Region. The public-private partnership is designing, building, operating and maintaining the district energy system, with construction to be completed in 2025. After construction completion, the public-private partnership is contracted to continue operating and maintaining the district energy system until 2055.

The program supports the Government of Canada’s plans to transition to net-zero operations as part of the 2021 revised Greening Government Strategy: A Government of Canada Directive. The program includes 2 stages: stage 1, which is the energy services modernization project and User Building Conversion Plan; and stage 2, the Deeper Greening Program, which will see the program transition to the use of carbon neutral energy sources.

Key activities

In the National Capital Region, 80 buildings, including the parliamentary buildings, are heated and 67 are cooled through a set of central plants, known as the district energy system. However, this existing infrastructure is reaching the end of its service life. It uses outdated technology that is expensive to maintain and is 25% less efficient than industry standard equipment. The Energy Services Acquisition Program investment in modern technology will result in an estimated cost avoidance of more than $400 million over the next 35 years and significant reduction of greenhouse gas emissions.

The stage 1 energy services modernization project will involve converting the district energy system to use low temperature hot water for heating and electric chillers for cooling. It also involves the implementation of the smart buildings and smart plants programs that will pinpoint opportunities for operational efficiencies.

The energy service modernization project is being delivered as a public-private partnership to replace the current infrastructure and to operate and maintain the system over a 35-year period (until October 2055). Public Services and Procurement Canada will retain ownership of all assets throughout the term of the contract. Innovate Energy took over the operations of the existing district energy system on March 31, 2020. In August 2020, early work began in all of the central heating and cooling plants located at Confederation Heights, Cliff, Tunney’s Pasture, and the National Printing Bureau.

Conversion of all connected user buildings from either high-pressure steam or high temperature hot water heating to technology that can accept low temperature hot water is being undertaken, with completion expected by the end of September 2024 to ensure that all converted buildings are available for connection to the modernized district energy system once completed.

The stage 2 Deeper Greening Program will involve replacing natural gas with carbon neutral energy sources and transitioning to alternative strategies for peak load.

The Energy Services Acquisition Program has already cut greenhouse gas emissions by approximately 30% since 2005, and by 2025 total reductions will be 63% with the completion of stage 1. Stage 2 will reduce emissions to less than 10% of the 2005 baseline, with the remaining emissions to be eliminated through green energy procurement by 2030.

Partners and stakeholders

The User Building Conversion Plan Team regularly consults with tenants and property facility managers during the planning and construction phases of the building conversions. Once plans are put in place to convert a building from steam or high temperature hot water to low temperature hot water (the standard for the modernized district energy system), team officials meet with property managers on a regular basis to report on project status and identify issues early on in the process to mitigate additional issues that may arise due to construction. In addition, the meetings are used to raise awareness about the benefits of the conversion process and to ensure that any disruptions during conversion are well managed.

Tunney’s Pasture redevelopment

Mandate

Public Services and Procurement Canada and Canada Lands Company have partnered to implement the Tunney’s Pasture Master Plan that was developed through public consultations and approved by the National Capital Commission in 2014. This plan will see the transformation of Tunney’s Pasture from an office campus to a sustainable mixed-use community. This process includes completing an engagement program with Indigenous communities, other stakeholders and community members, and additional approvals. Further consultations with the public will begin in the fall of 2021.

Key activities

The Tunney’s Pasture Implementation Plan is an evolution of the master plan and will provide a more detailed analysis of the building and infrastructure requirements to guide investment decisions. It will further define the lands to be retained for office accommodation and the surplus land for residential and community uses. It will also provide guidelines on sustainability, accessibility and urban design that align with federal government objectives.

Once Indigenous and community engagement is completed, approvals for the Implementation Plan will be sought from the National Capital Commission in 2022 to 2023, prior to seeking the approval of the Treasury Board of Canada Secretariat in 2023 to 2024.

Partners and stakeholders

Local Algonquin Nations

Local Algonquin Nations are being engaged at this stage of the project as part of reconciliation. The aim is to inform them of work completed to date and to demonstrate potential opportunities for participation. As the project moves further along these initial discussions, it will lead to formal duty to consult as part of the land transaction process.

Canada Lands Company

The department is collaborating with Canada Lands Company on the redevelopment, leveraging the strengths of each organization. Public Services and Procurement Canada will remain the lead on all office and land uses maintained by the federal government, while Canada Lands Company will lead all residential and community uses.

National Capital Commission

All land use changes, transactions and implementation planning activities will require approval from the National Capital Commission.

City of Ottawa

The department and Canada Lands Company are coordinating with the City of Ottawa for the eventual transfer of the roads and infrastructure within Tunney’s Pasture to the city.

Client departments

The department will be leading all internal communication with client departments and keeping them updated as the redevelopment moves forward.

Community associations

The local community associations have been very interested in being a part of the planning process and having their voices heard. Canada Lands Company will be leading all public facing activities, including public information sessions, and meeting with community associations to receive and respond to their feedback.

Portage III

Mandate

The Portage III asset and workplace renewal project undertakes a complete building retrofit, including base building systems (for example, heating, cooling, plumbing, etc.), workplace modernization, and security and information technology components. The building consists of 9 towers, commercial areas, 4 basement levels and a tri-level underground parking garage.

Portage III is a key Crown-owned building that supports Government of Canada policy to maintain a 25:75 ratio of office space between Gatineau and Ottawa. The building represents 12.6% of the government’s Gatineau portfolio and approximately 3% of the portfolio in the National Capital Region. The renewed unassigned and activity-based workspace will provide greater building efficiency by consolidating several locations and increasing the number of full-time equivalents from 4,773 to about 8,845 (at a 50% telework ratio in the post pandemic).

As a result, once the Portage III building is rehabilitated leased space will be released, generating significant rent savings of up to $24.5 million annually. From Parliament Hill, Portage III constitutes the gateway into downtown Gatineau. As such, it is a prominent part of the National Capital Region and of Canadian heritage.

Key activities

The planning and design activities for the project began in 2018 and the project is expected to be completed in 2027. The relocation of employees to swing space from multiple towers was completed in May 2021.

In June 2021, the Treasury Board of Canada Secretariat granted authority to implement the construction of the western towers and common base building systems, the completion of the overall design of the eastern towers fit-up, the relocation of tenants, and the undertaking of selective interior demolition of the eastern towers.

On June 28, 2021, Brookfield Global Integrated Solutions launched the third and final step in the competitive procurement of a construction manager for the project and the request for proposals. Brookfield Global Integrated Solutions expects to award that contract to one of the 3 prequalified proponents of this process in November 2021 and construction is expected to start shortly thereafter. Work is already underway in the western towers of the building, with their selective interior demolition expected to be completed in October 2021.

In 2022 to 2023, the department will seek authority to implement the second phase of the project, which consists of the fit-up of the eastern towers.

Partners and stakeholders

Portage III is headquarters for Public Services and Procurement Canada and Shared Services Canada. Additional stakeholders include the City of Gatineau, the Société de transport de l’Outaouais, the National Capital Commission, the Federal Heritage Buildings Review Office, and central agencies, such as the Treasury Board of Canada Secretariat. Key partners include Brookfield Global Integrated Solutions and contracted firms that provide project management, design and engineering, consulting, construction management, construction, and other services.

Key considerations

While the full impact (for example, schedule, cost) associated with COVID-19 health and safety measures continues to be analyzed, the pandemic has already impacted the cost of the selective demolition work currently underway in the building’s western towers. To mitigate the pandemic’s impact, telework is being used and good communication is being maintained with client representatives and with the suppliers of goods and services.

A daycare fully subsidized by Employment and Social Development Canada is housed in Portage IV through a lease. It is expected that the Portage III project construction activities will impact the outside area in the vicinity where the daycare is currently located. Therefore, the Public Services and Procurement Canada and Employment and Social Development Canada are fully engaged in coordinating relocation solutions.

Les Terrasses de la Chaudière

Overview

Built in the late 1970s, the Crown-owned Les Terrasses de la Chaudière complex consists of 4 office towers located in downtown Gatineau. More than 40 years old, its systems and components are at or near the end of their normal service lives, including the brick exterior façade that began failing prematurely in the late 1990s. Between 2021 and the early 2030s, a comprehensive revitalization program will extend the service life of this key federal asset, contribute to sustainability targets and net-zero carbon objectives, and remedy longstanding health and safety concerns. The physical refurbishment of the site also presents opportunities to advance accessibility and inclusion, Indigenous engagement, technology upgrades, community connectedness, and the greening of the complex. Once completed, it will be a thoroughly renewed and modernized complex able to accommodate upwards of 8,700 employees (versus the existing 6,400), contributing significantly to the National Capital Area federal public service employment distribution ratio of 75:25 between Ontario and Quebec.

Key activities

Four integrated refurbishment projects will proceed over the coming decade:

Activities will be undertaken in a phased manner and work on more than 1 project will be underway concurrently at any given time.

The interior modernization project will see office space throughout the complex completely refurbished, providing employees with a modern, collaborative, productive and technology-enabled work environment. The first phase of the interior modernization was launched in 2021 and by 2023, 15 floors in the complex will have been renovated. This supplements several floors already recently modernized in the complex.

The exterior replacement project will remove the existing brick wall and windows and replace them with an envelope system that will transform the site into an energy-efficient and modern complex. The project will also modify the main entrances and will result in a predominantly glass and aluminum façade that will enhance and revitalize the aesthetic of the neighbourhood. The project is currently in the design stage. Construction is set to start in spring 2022 and is expected to be completed by 2026.

After 40 years of continuous use, the systems that underpin the complex’s operation require renewal and replacement. The base building renewal project aims to fully modernize the mechanical, electrical, heating and cooling, plumbing, and elevator systems, and to increase system capacities to support interior modernization initiatives. More immediate upgrades are also being pursued, such as installing new make-up air units, replacing the automation and lighting control systems and adopting touchless technologies.

The site’s redevelopment project addresses longstanding issues with site circulation and public engagement, and is centred on parts of the complex that are open to the public: the landscape, courtyard, ground floor retail, and common spaces.

Partners and stakeholders

Les Terrasses de la Chaudière is headquarters for federal departments and agencies, including Indigenous Services Canada, Crown-Indigenous Relations and Northern Affairs Canada, Canadian Heritage, the Canadian Radio-television and Telecommunications Commission, and the Treasury Board of Canada Secretariat. Additional stakeholders include the City of Gatineau and the National Capital Commission.

Key partners include Brookfield Global Integrated Solutions, the Société de transport de l’Outaouais, and contracted firms providing project management, design and engineering, consulting, and other services.

Key considerations

Activities associated with the multi-year revitalization of the complex are extensive, multi-faceted, and concurrent. Implementation and finalization require time and coordination. Challenges include project sequencing, schedule compliance, coordination amongst trades and contractors, client expectations, and construction in occupied buildings. A comprehensive master planning exercise is currently underway to develop concept design options and an optimum implementation strategy to guide and integrate modernization efforts over the long term.

Montréal courthouse

Overview

One of the responsibilities of Public Services and Procurement Canada is to provide workspace for federal organizations. The construction of the Montréal Courthouse will be the first project that reflects the National Accommodation Strategy for federal courts and tribunals, aiming to consolidate the activities of clients with similar needs. Housing the courts and administrative supports services in a government building will better serve their needs, while meeting the security needs unique to these organizations.

The construction project will promote barrier-free accessibility to the building in accordance with the Accessibility Canada Act.

Mandate

Public Services and Procurement Canada is planning the construction of a new Crown building in Montréal, Quebec, that will be located at 46, rue Saint-Jacques West. Upon its completion, the department will be responsible for managing the property. This construction and development project is expected to be completed by 2027, and the building will house and consolidate the judicial activities of 4 federal courts (the Tax Court of Canada, the Court Martial Appeal Court and satellite court sites of the Federal Court and the Federal Court of Appeal), federal court administrative services and the Administrative Tribunals Support Service of Canada.

Key activities

The Montréal Courthouse project will be carried out using a construction management approach. Two major contracts are required: one for architectural and engineering services, and another for construction management services. These contracts have been approved and were issued to the winning bidders in May 2021.

The new building will be built to the Leadership in Energy and Environmental and Design Platinum energy-efficient standard. It will offer modern state-of-the-art workspaces and hearing rooms fully adapted to the specifications for the federal courts and Administrative Tribunals Support Service of Canada. The building will also be designed to be carbon neutral, incorporating materials with a lower carbon footprint and carbon neutral building operations through the use of 100% renewable energy.

Partners and stakeholders

The federal courts (through representatives of the Courts Administration Services) and tribunal support services—the future occupants of the Montréal Courthouse—were consulted regarding their accommodation needs. They are responsible for confirming and clarifying these requirements with the department, as the project progresses.

Supreme Court / West Memorial Building

Overview

Built in 1938, the Supreme Court of Canada Building was designated a federal heritage building in 1988. Its key building systems are failing and require constant monitoring to maintain the health and safety of building occupants and the Federal and Supreme Courts’ operations. The West Memorial Building, also a federal heritage building, is being rehabilitated for the same reasons.

Supreme Court occupants are to move into the West Memorial Building once that building’s rehabilitation project is complete in 2024. At that point, the Supreme Court Building rehabilitation will start. When completed, the buildings will provide a modernized workplace that meets current building code requirements and seismic health and safety, security, environmental, and accessibility standards. Occupants are expected to return to the renovated and modernized Supreme Court Building in 2030.

Key activities
West Memorial Building rehabilitation
Supreme Court of Canada Building rehabilitation
Partners and stakeholders
Key challenges
West Memorial Building

Though the construction site is active, COVID-19 might impact construction progress. Continuous discussions are taking place with the construction management team to assess the ongoing impacts from the pandemic. Schedule analysis workshops are taking place and costing exercises are being performed to assess the current and future financial impacts in this context. Other unforeseen site conditions related to the building structure itself could also create delays.

Supreme Court of Canada Building rehabilitation

Planning and approval of the project has been postponed due to the unprecedented circumstances related to the COVID-19 pandemic. These delays will result in increased project costs and slippages in project start and completion dates. It will impact the pre-approved planning budget and the project procurement planning. The earliest the department can award the prime consultant and construction manager contracts will be in spring 2022.

Elements, such as security screening control north of Wellington, vehicle access, material handling, pedestrian circulation, public transport, and landscaping need to be integrated and considered within the broader context of the site. This includes major departmental initiatives (Long Term Vision and Plan for the Parliamentary Precinct, Energy Services Acquisition Program) and stakeholders (City of Ottawa, City of Gatineau and the National Capital Commission).

National Printing Bureau (45, Boulevard Sacré-Coeur Project)

Overview

The National Printing Bureau Building was built in the early 1950s at the civic address of 45, Boulevard Sacré-Coeur in Gatineau. The structure is a classified heritage building that has not benefitted from any significant rehabilitation investment over the years. In fact, the building requires constant monitoring as its key building systems are declining and there is a high risk of building systems failure, which could impact operations and the health and safety of its occupants. In fall 2018, Public Services and Procurement Canada decided on an accommodation strategy to restore the Department of National Defence’s Material Management Group to a single location through an expanded development at 45, Boulevard Sacré-Coeur.

Mandate

The department’s Porfolio Plan exercise of 2019 to 2020 included the plan to optimize the Crown-owned asset at 45 Sacré-Coeur by relocating not only the Material Management Group to this location but several other departments requiring secure and special purpose space. The scope being considered consists of rehabilitating the National Printing Bureau Building and adding 2 new office towers (maximum of 12 floors each). This will provide approximately 5,300 unassigned work points for approximatively 11,000 full-time equivalent employees to be assigned to the site. The end result will be the development of a fully accessible and carbon-neutral rehabilitated heritage building based on the latest GCworkplace standards, and the greenest energy consumption and greenhouse emission standards. The building will provide a modernized workplace that meets current building code requirements, and seismic, health and safety, security, environmental, and accessibility standards. The consolidation of these secure and/or special purpose spaces at one location will also allow Public Services and Procurement Canada to shed leases from over 15 locations (eliminating up to 180k m2 of non net-zero space and replacing it with approximatively 130k m2u of net-zero space).

Key activities

The consultation process with the National Capital Commission and the Federal Heritage Buildings Review Office is underway to determine how best to develop the site, while taking into consideration the guidance provided by various authorities. The proposed land use and concept was presented to and supported by the commission in August, 2020 and approval of federal land use, design and transaction by the commission’s Board of Directors was received on October 6, 2020.

Other steps include:

Partners and stakeholders

Strategy for engineering assets (Portfolio Plan)

Overview

Public Services and Procurement Canada retains and operates a specialized portfolio of engineering assets. These assets are widely distributed geographically and fall within 5 asset types: bridges, dams, highways, marine infrastructure and the National Capital Region District Energy System, which is comprised of 7 heating and cooling plants and 14 kilometres of associated distribution networks in the National Capital Region.

Specifically, there are 17 engineered assets located across the country with a replacement value of over $8.4 billion. One of these engineered assets, for example, is the Esquimalt Graving Dock which was deemed a strategic asset to Canada in 2008.

Mandate

The department maintains a long-term investment strategy and portfolio plan to effectively support the stewardship of these assets. This plan includes the identification of funding priorities based on a comprehensive risk and life-cycle analysis. Additionally, some of these assets are important economic drivers, and there is a need to review investment objectives beyond health, safety and end-of-lifespan replacement issues. The department’s Strategy for Engineering Assets (Portfolio Plan) document sets out strategic objectives for the engineering asset portfolio. These strategic objectives are aligned to the 3 guiding principles of sound stewardship, socio-economic benefits, and service excellence.

Key activities

Sound stewardship

The department is focusing its efforts on the long-term stewardship of all the engineered assets in its portfolio by working to ensure that they are all in fair to good condition by 2045 to provide safe and efficient use by Canadians.

Socio-economic benefits

The department is recapitalizing and converting the district energy system to clean energy fuel sources to provide clean heating and cooling to federal accommodations in the National Capital Region. The department is also improving its ability to predict, monitor, evaluate and respond to changing water levels at its dam structures, thereby improving reaction times to the effects of severe weather. This will help the department and its partners to manage waterways so as to minimize future flooding.

Service excellence

New investments will be made in the Chaudière Crossing to bring all components to a fair or better condition and to create a more comprehensive street profile on the crossing to promote active transportation (walking/biking). The Alexandra Bridge will also be replaced with a new modern bridge featuring enhanced active transportation facilities.

To support service excellence, the department is proposing to rejuvenate the Esquimalt Graving Dock with expanded capacity to sustain the federal defence and marine fleet. A renewed Esquimalt Graving Dock would support repairs to the new classes of vessels acquired by the Royal Canadian Navy and the Canadian Coast Guard under the National Shipbuilding Strategy and will have the flexibility to support emergency repairs in a timely fashion.

In addition, the department is ensuring the safe and continued operation of the Alaska Highway to support current and future projected traffic levels, as well as to reduce liabilities associated with formerly contaminated and abandoned sites. In conjunction with these activities, the department seeks opportunities to improve the capacity and level of service of the Alaska Highway to provide a safe link for northerners.

Partners and stakeholders

As the custodian of these assets across Canada, the department works with various stakeholders including other levels of government, Indigenous communities, watershed operations / management bodies, ports and railways, contractors, and other private-sector stakeholders.

List of Engineering Assets
Pacific Region
Western Region
Ontario Region
Atlantic Region
National Capital Region

Interprovincial crossing

Alexandra bridge replacement project
Mandate

As part of a broader effort to improve interprovincial transportation in the National Capital Region, the Government of Canada mandated the replacement of the Alexandra Bridge in 2019. The Alexandra Bridge is more than 100 years old and nearing the end of its life cycle. In addition to improving the active transportation experience, there will be 1 vehicular lane in each direction, and the possibility to convert for public transit in the future. It is expected to take 10 years to complete, with construction ending in 2032.

Public Services and Procurement Canada will be working in collaboration with the National Capital Commission to design a replacement for the bridge. The commission is the lead in a multiphase public engagement approach.

Key activities

Numerous studies and impact assessments have been completed or are underway, including, environmental, heritage, archeological, and traffic pattern analysis.

In June 2021, the National Capital Commission’s Board of Directors approved the planning and design principles for the replacement. These principles were developed by the department and the commission, with input from the public and Indigenous partners. Over 2,300 participants took part in the first phase of a series of online public consultations and stakeholder sessions held in fall 2020. The principles were circulated to Indigenous partners who are continuously engaged with the commission and the department to give their input with respect to these principles.

As a designated project under the Impact Assessment Act, the project will follow the Impact Assessment Agency of Canada’s regulatory requirements and guidance. A key principle of the impact assessment process is early, meaningful engagement with Indigenous partners and the public. Discussions with Indigenous communities and organizations have been progressing well. Following this first phase and the agency’s determination, the department and the commission will finalize the Indigenous engagement and public engagement strategies, as per the agency’s guidelines. The initial project description will have a specific section on both public and Indigenous inputs. Formal submission of the initial project description to the agency will occur in early 2022; this will formally launch the impact assessment process with legislated timelines.

The Impact Assessment Agency of Canada will also develop its own plans and engagement activities with the public and Indigenous communities for the project. Meetings with Indigenous communities have begun and will continue into fall 2021.

[Redacted]

Partners and stakeholders
Key considerations

The construction market is saturated, as evidenced by the results of numerous requests for proposals for other projects. In addition, rising prices in the global construction sector are expected to be sustained through 2022 and into 2023. This situation is leading to less competitive environments and reduced supply chain availability. Widespread disruption to global supply chains seen through the pandemic are being sustained by high demand and competition for key materials between global markets, with increases of up to 40% seen in some international cities.

While the Alexandra Bridge accommodates roughly 9% of the vehicular traffic (pre-pandemic), the interprovincial crossings and associated road networks are beyond capacity at peak hours. The period of deconstruction and construction of the replacement bridge is expected to take up to 4 years and will pose a significant challenge to manage the traffic impacts.

Sixth interprovincial crossing
Overview

The National Capital Region’s interprovincial crossings are vital links between Ottawa and Gatineau. In 2017, the 5 interprovincial crossings carried close to 150,000 vehicles and 9,000 pedestrians and cyclists on a daily basis. Transportation studies conducted over the last 10 years have consistently shown that the existing crossings and connecting roadways are at full capacity during morning and evening peak hours.

Budget 2019 recognized the necessity to continue to improve crossings in the National Capital Region by addressing the demonstrated need for an additional interprovincial crossing. This new crossing would connect highways 417/174 or 7 in Ottawa via a corridor and interprovincial bridge to Autoroute 50 or Route 148 in Gatineau. The placement of the new sixth crossing will be informed by a long-term integrated interprovincial crossing plan led by the National Capital Commission.

Mandate

Public Services and Procurement Canada leads the project in collaboration with the National Capital Commission. The commission leads the corridor selection and a multi-phased public engagement approach, and the department will provide complex project management and procurement support.

Key activities

A series of environmental studies for a sixth crossing were completed between 2000 and 2013. Phase 1 studies explored 10 different corridors and 2 tunnel corridors. Phase 2 studies evaluated the top 3 corridors from Phase 1:

Corridor 5, Kettle Island, was the selected corridor. The project stalled in 2013, partly due to lack of funding by partners. From 2019 to 2020, the phase 2 studies were refreshed using more recent data and the initial 3 corridors were costed from schematic designs.

While awaiting the completion of the commission’s long-term integrated interprovincial crossing plan, the project is advancing in areas that are independent of corridor selection. Current activities include the development of a cost benefit analysis (through economic and climate resiliency lenses), procurement options analysis, market sounding, and project planning. A commission-led origin-destination survey to study post-COVID-19 traffic patterns will likely take place in 2022, at which point the corridor selection process can commence. It is anticipated that the selection process will take 2 years and will include public engagement.

Given that this will be a designated project under the Impact Assessment Act, the project will follow the Impact Assessment Agency of Canada’s regulatory requirements and guidance. The intent is to leverage much of the earlier work to advance the impact assessment.

Partners and stakeholders
Key considerations

Pre-pandemic traffic volumes indicated that additional capacity was required in the National Capital Region. The final version of the long-term integrated interprovincial crossing plan, which must also incorporate the origin-destination household survey (expected by 2022), should capture the impact of the shift to more telework, although it will take time for the new traffic patterns to emerge post-pandemic.

Esquimalt Graving Dock

Mandate

The Esquimalt Graving Dock is a secure, public-owned, open-access, multi-user facility that serves the Royal Canadian Navy and Canadian Coast Guard vessels. It also supports and strengthens the West Coast Industrial Marine Sector. This strategic asset is the largest facility on the West Coast of the Americas, representing 60%of Canada’s Pacific Coast dry dock capacity. It is one of only 2 West Coast dry docks with the capacity to accommodate Panamax-size vessels, the largest deep-sea vessels that can pass through the old Panama Canal.

The facility employs 55 departmental staff and supports industry’s provision of ship repair services to the federal fleet, cruise ships, British Columbia (BC) ferries, and a wide range of coastal and ocean-going vessels.

The facility supports about 3,000 full-time highly-skilled, high-paying trades jobs, and is an economic generator for the local and regional economies, contributing close to $1 billion of economic output and over $30 million in taxes to all levels of government.

Key activities

Public Services and Procurement Canada is proposing an expansion of the facility to ensure that the federal defence and marine fleet can be sustained well into the future. With redevelopment, the facility would be able to accommodate existing and future federal vessels. The redevelopment would also attract additional tenants and add hundreds of highly-paid, skilled trades jobs, and reduce “whole of government” costs to sustain federal fleets.

The cost of the redevelopment is under assessment, with initial engineering design and architectural master plan development studies being procured.

In parallel with planning and decisions to be made regarding redevelopment, the department is again examining the fee structure (both leases and dock charges fall under the Esquimalt Graving Dock Regulations) which it reviews periodically, to ensure the rates are fair and contribute to a financially sustainable facility.

Partners and stakeholders

The principal stakeholders are the vessel owners that rely on the facility for repair, maintenance and refit. This includes the federal fleet, BC ferries, and foreign and private vessel owners.

The current and future tenants are also important stakeholders. Thales, Babcock, and Victoria Shipyards deliver sustainment contracts at the dock, and are supported by a dozen other tenants involved in ship repair activities. The Association of BC Marine Industries highlights the dock in its strategy to support the West Coast’s industrial ship repair industry.

Neighbouring Songhees and Esquimalt First Nations benefit from economic partnerships with the dock and the department.

Alaska Highway

Mandate

The Alaska Highway is the principal land access route to northern British Columbia, Yukon, and Alaska, making it critical to the social networks and economies of the entire region. Public Services and Procurement Canada is the operational custodian for 835 km of highway infrastructure stretching from km 133 to km 968 (the British Columbia / Yukon border). The Alaska Highway mandate is to keep the asset open and safe for all users and to maintain all components in fair to good condition. In addition to the actual road surface, the Alaska Highway is comprised of 56 bridges, hundreds of culverts, 10 maintenance yards, 5 salt sheds and numerous pits and quarries.

Key activities

To keep the asset open for all users and maintain all components in fair to good condition, the department focuses its efforts on the following:

The following projects illustrate efforts undertaken to date to address the department’s mandate.

Emergency embankment stabilization at km 780

Ongoing lateral movement of the Liard River near km 780 of the Alaska Highway has been progressing over time. In the past year, the lateral movement has increased to the point where it is eroding the highway embankment and could potentially directly impact the highway surface. The site required urgent repairs based on evidence of progressive erosion and the proximity of the bank to the existing highway, initial stages of this work will be completed this fall.

Maintenance

The department currently outsources maintenance of the highway with a contract valued at $79.8 million over 5 years and has a small team in Fort Nelson to supervise the contractor and deliver its asset management operations.

Multiple bridge-culvert rehabilitation between km 384 and km 650

Inspections conducted for bridge-culverts along the Alaska Highway in 2019 identified issues that affect the service life of 3 bridge-culverts. The bridge-culverts are in varied condition, each with specific issues and require either rehabilitation or replacement. Work is ongoing.

Kledo Bridge and Prochniak Bridge safety barrier replacements

Inspections conducted on these bridges in 2019 noted that the barriers were functionally deficient. In the case of both bridges, the safety barriers do not meet current minimum barrier performance levels. Presently, the performance of the existing safety barriers cannot fully provide restraint for a colliding vehicle. Work commenced in September 2021 and is ongoing.

Deactivation of former road surfaces from km 501 to km 509

Sections of former Alaska Highway alignment (road surfaces) are no longer safe for use by the public and many of them pose an obstacle for free passage of fish during spawning and rearing seasons. Former alignment sections contain deteriorated or blocked culverts and abandoned roadbed that are not safe for public access. These need to be removed and replaced with cross-ditches, berms, or water bars to re-establish drainage patterns and improve fish passage. Banks and channels along the sections of a former alignment may slide and collapse, imposing major environment concerns. This can be prevented through the installation of erosion protection works, or revegetation through seeding. Access removal works, such as the placement of large boulders to prevent access to these deactivated road segments must be conducted to ensure public safety. Pavement must be scarified and seeded to foster growth and re-integration of the former alignment into the environment. The multi-year program for the deactivation of the old alignment sections of the highway is currently underway.

Partners and stakeholders

First Nations:

The department actively uses Indigenous partnership requirements in many of the capital projects, varying from 5% to 15% of the contract value and has developed good relationships with all First Nations along the highway. The department conducted engagement sessions with the 5 First Nations prior to the fiscal year start to inform them of upcoming projects and is planning future sessions to seek feedback from the past year’s construction season.

British Columbia Ministry of Transportation and Infrastructure—permitting department of the Province of British Columbia.

Department of Fisheries and Oceans Canada—permitting department related to water and fish bearing streams.

Yukon Department of Highways and Public Works—responsible for ensuring safe and efficient public highways.

Key considerations

One of the key challenges experienced every year by the department is the delivery of construction projects within a very short construction season, caused by climatic conditions. The remote location also presents challenges due to the limited pool of contractors available in the region.

Prompt payment

Overview

Public Services and Procurement Canada pays 96% of its invoices within 30 days; however, these payments were not always flowing from the prime contractor to the lower tiers in a timely fashion. The construction industry estimated that in 2015, on a total of $285 billion of contracts, there were $45.9 billion (16%) of delayed payments nationally.‎ While federal construction activities represent less than 2% of the Canadian commercial construction industry, the Canadian Construction Association has communicated that the federal government is the single largest procurer of construction services.

On June 21, 2019, the Federal Prompt Payment for Construction Work Act received royal assent. The federal legislation will apply for Government of Canada construction work across the country and will be relevant for industries and activities under federal jurisdiction. Under the terms of the act, the federal government will have 28 days to pay after the contractor submits a proper invoice. The prime contractor will then have 7 days to pay its subcontractors, who will have another 7 days to pay their sub-subcontractors, and so on down the contracting chain.

Key activities

Although the act has received royal assent, there remains a significant amount of work to complete before the prompt payment regime comes into force.

Regulations elaborating on adjudication timelines, the establishment of an adjudicator authority, and the credentials required for certified and qualified adjudicators must be developed and approved:

A contract for an adjudicator authority must be competitively solicited, the bids evaluated, and a contract awarded:

The standard federal government construction contract must be amended to ensure that it addresses the new legislation and regulations and incorporates the various elements:

Partners and stakeholders

In response to concerns raised about the promptness of payments in construction, Public Services and Procurement Canada, Defence Construction Canada, and the Canadian Construction Association created a government-industry working group in 2018 to consider ways to improve the speed of payment on federal construction jobs. A 14-point action plan was developed (13 actions have been completed to date; the final action rests with the Canadian Construction Association to educate members on the regulations once they are complete), including the recommendation that legislation be enacted to ensure prompt payment at all levels of the construction supply chain.

The Long Term Vision and Plan for the Parliamentary Precinct

Long Term Vision and Plan Overview

Mandate

Public Services and Procurement Canada is custodian of Canada’s Parliamentary Precinct and in partnership with parliament is responsible for implementing the Long Term Vision and Plan—a multi-decade strategy to restore and modernize parliament buildings and grounds.

Key activities

The Parliamentary Precinct is composed of 35 Crown-owned buildings (28 of which have a federal heritage designation). The precinct includes Parliament Hill and the 3 city blocks facing Parliament Hill, which provide facilities for the House of Commons, the Senate of Canada, the Library of Parliament and the Office of the Prime Minister and the Privy Council. Management of the Parliamentary Precinct also includes retail spaces along the Sparks Street Mall, several leased facilities in Ottawa’s downtown core to accommodate the parliamentary administration and the Privy Council Office, as well as remote facilities to provide back of house services such as food production, postal services, and warehousing.

First approved by parliament and government in 2001 and revised in 2007, the plan is currently being updated. It has 3 core objectives:

The Long Term Vision and Plan establishes a long-term direction and short-term priorities and is delivered via rolling programs of work approved by both Parliament and the federal government. This approach has provided clear objectives as well as the required flexibility to respond to evolving priorities, building conditions and market conditions. A complex sequence of interrelated projects, the plan has focused on restoring and modernizing deteriorated heritage buildings to provide both short-term swing space and permanent accommodations with a single investment. It has a strong record of completing major projects on time and on budget. Since the plan was revised in 2007, Public Services and Procurement Canada has completed a string of 24 major projects, including the Sir John A Macdonald Building (2015), the Wellington Building (2016), the Senate of Canada Building, and the West Block (2018).

Work completed to date has enabled the department to empty the Centre Block and launch its historic restoration and modernization, a central objective of the Long Term Vision and Plan from its beginning. The Centre Block is the largest heritage restoration in Canadian history. This work also includes the creation of a Parliament Welcome Centre, which will enhance parliament’s security, provide a much-improved experience for the visiting public, and connect the west, centre and east blocks to create an integrated parliamentary complex. A budget of $4.5 billion to $5 billion has been established for this work with a target completion date of 2030 to 2031.

Another priority is the transformation of the precinct into an integrated and consolidated campus supported by an integrated approach to such elements as security, sustainability, accessibility, and the movement of people, vehicles and goods. The current update to the plan is focused on establishing a clear and integrated campus plan. The update will be completed in 2022.

A first major step in achieving this campus plan is the redevelopment of block 2, which is located directly across from the Peace Tower. An international design competition is now underway to develop a concept to redevelop this city block composed of mostly empty and underutilized buildings. The design competition will be completed in 2022, and construction is targeted to begin in 2024. This redevelopment will act as both swing and permanent space. It will first enable the East Block and Confederation Building to be emptied so that they can be rehabilitated, and then enable the consolidation of permanent Senate and house accommodations.

Block 2 also contains the future Indigenous peoples space, which will encompass the redevelopment of the former United States Embassy Building located at 100 Wellington as well as the former Canadian Imperial Bank of Canada Building located at 119 Sparks. A dedicated space for the Algonquin Nation is also envisioned.

The remaining key priorities are the restoration and modernization of block 1, which accommodates the Office of the Prime Minister and the Privy Council, and the completion of block 3, with work focused on the National Press Building.

Partners and stakeholders

The department works with a wide range of partners and stakeholders in the implementation of the Long Term Vision and Plan. Most importantly, the department works in partnership with the parliamentary partners (Senate of Canada, House of Commons, Library of Parliament and the Parliamentary Protective Service) to plan and implement the plan. A governance framework provides a forum for Public Services and Procurement Canada and the parliamentary partners to guide decision-making and apply appropriate oversight. Other key players include the Privy Council Office, Crown-Indigenous Relations and Northern Affairs Canada, national Indigenous organizations and the Algonquin Nation, Canadian Heritage, the cities of Ottawa and Gatineau, Ottawa Tourism and Tourisme Outaouais, the Sparks Street Mall Authority, the Federal Heritage Building Review Office and the National Capital Commission. The department also chairs an international group of organizations (International Network of Parliamentary Properties) involved in leading the management and redevelopment of parliamentary properties.

Key considerations

The restoration and modernization of Canada’s Parliamentary Precinct has been recognized by the Project Management Institute as a globally influential project. The scale is massive, and it is technically challenging. The most significant challenge, however, is the complex governance. The Legislative Branch is responsible for determining project requirements (scope) and the Executive Branch, represented by the minister of Public Services and Procurement is responsible for budget and schedule. [Redacted]

Centre Block rehabilitation project

Mandate

Public Services and Procurement Canada is leading the rehabilitation of the Centre Block and construction of the new Parliament Welcome Centre. The Centre Block is the largest and most complex heritage rehabilitation ever undertaken in Canada. The main parliament building is being fully restored and it will become sustainable, accessible, secure and equipped with modern amenities. This work also includes the creation of a Parliament Welcome Centre, which will enhance parliament’s security, provide a much-improved experience for the visiting public and connect the west, centre and east blocks to create an integrated parliamentary complex.

Key activities

Major construction activities on the Centre Block were launched in 2019 and are now well underway. The project continues to track on schedule and budget, despite the pandemic, with a focus on excavation for the Parliament Welcome Centre, interior demolition and the abatement of designated substances, and the launch of the exterior masonry program. Approximately 50% of the excavation work and interior demolition work is now completed, with over 10 million pounds of asbestos removed from the building.

Design has also advanced considerably. To support the development of a world-class design, the department has engaged the Royal Architectural Institute of Canada which assembled a panel of eminent Canadian architects and design experts as well as the former architect of the Capitol in Washington to provide independent design advice throughout the design process. The support of the panel has been important in developing consensus on the design concept with parliament and the National Capital Commission. The panel will continue to support the project through design development.

In June 2021, the Minister of Public Services and Procurement released the design concept and announced the program’s estimated cost of $4.5 to $5 billion and the target completion date of 2030 to 2031. A range was used to reflect program scale, complexity and duration, as well as residual risks (for example, potential for scope changes and exposure to escalation, particularly in volatile post-pandemic market conditions).

The program cost is driven primarily by essential work needed to meet building codes, ensure health and safety, and restore Canada’s built heritage, while modernizing the building to support a 21st century parliament. Cost and schedule estimates were developed using industry standards, based on lessons learned and benchmarking from completed projects, including those in the precinct. In addition, the department retained an internationally recognized third-party cost-estimator to provide independent validation of the cost estimate.

This historic investment will showcase Canadian leadership and innovation, while creating over 70,000 jobs and economic benefits for companies across Canada. To date, over 500 companies are engaged on the project and over 5,000 jobs have been created.

Key considerations

The major challenge faced in the projects to restore Canada’s Parliamentary Precinct is finding the right balance between restoring these iconic heritage buildings, modernizing them to meet modern standards, and supporting a 21st century parliamentary democracy. There is also a need to find the balance between the limited space available within the heritage buildings and parliamentary grounds with the growing needs of parliament to support its operations.

These projects are being undertaken within a complex governance framework and although significant governance improvements were made during the last Parliament, there remains no integrated forum to establish consensus direction between the Senate and House of Commons, which is important given that the Centre Block is jointly managed with the house and the Senate.

Block 2 redevelopment

Mandate

Public Services and Procurement Canada is redeveloping the 3 city blocks (blocks 1, 2 and 3) facing Parliament Hill to establish a modern integrated campus that serves the immediate and long-term accommodation needs of parliament and the Office of the Prime Minister and Privy Council. The decade-long transformation will begin with block 2 and is a key priority of the Long-Term Vision and Plan for the Parliamentary Precinct.

Key activities

Blocks 1, 2 and 3 comprise all the buildings and lands bounded by Wellington, Elgin, Sparks, and Bank streets, located immediately south of Parliament Hill. The area contains 26 Crown-owned buildings (approximately 110,000 m2), many with heritage designations. These buildings were expropriated by the federal government in 1973 for the protection and enhancement of parliament and to meet the future accommodation needs of parliament and government.

The blocks are being leveraged as part of a 3-step strategy to:

  1. restore and modernize aging and underutilized assets along Sparks Street and Wellington Street and make more efficient use of the space
  2. use the restored assets as swing space to support the rehabilitation of core buildings, such as the East Block and Confederation Building
  3. consolidate dispersed parliamentary accommodations into an integrated and modern campus

Work is starting first on block 2 (area bounded by Wellington, O’Connor, Sparks and Metcalfe streets) where the buildings are in the most deteriorated condition. This will help enable the required rehabilitation of the remaining buildings on Parliament Hill.

This approach provides a cohesive design solution to transform a group of independent buildings at the end of their lifecycle into an interconnected complex. It also supports an efficient delivery strategy (that is, reduces costs and shortens timelines), which minimizes construction disruptions.

The block 2 redevelopment includes:

In order to achieve this vision, in May 2021, the department launched an international design competition for the site. Design competitions are an effective way to achieve excellence in building design while allowing for the concurrent evaluation of multiple proposals.

The Royal Architecture Institute of Canada is acting as an independent competition manager with the support of Phase Eins, a German architecture and planning company. They assembled an independent jury of national and international architects, engineers and academics as well as Indigenous and civil society representatives and parliamentarians.

The jury will shortlist 6 competitors to move to the final stage of the competition in fall 2021. In spring 2022, the competitors will present advanced design concepts to the jury, which will vote to determine first, second and third place winners. The final decision to award the contract lies with the minister of Public Services and Procurement, who holds the authority to approve the winning design. Should negotiations be unsuccessful with the winning firm, the minister reserves the ability to negotiate with other prize winners.

Construction is anticipated to start in 2024.

Partners and stakeholders

As with all projects in the Parliamentary Precinct, the department is working closely with its partners in Parliament. Key external stakeholders on the project also include the National Capital Commission, the City of Ottawa and the Federal Heritage Buildings Review Office of Parks Canada.

The department and its partners in parliament have committed to maintaining the project momentum through the parliamentary cycle, including the federal election. At the jury meeting held in fall of 2021, the Senate substituted its representative (Senator Donald Plett) with a delegate from its administration. The House of Commons continued with Bruce Stanton, Deputy Speaker in the 43rd Canadian Parliament, and plans to continue doing so, despite his retirement from the House of Commons.

In terms of a public interface, block 2 redevelopment plans were presented at a public forum hosted by the National Capital Commission’s Urbanism Lab as part of a broader piece on the Long Term Vision and Plan. Reaction following the announcement of the design competition and the initial 12 competitors has so far been neutral to positive with broad support for the competition and the caliber of the participating firms. The 6 shortlisted designs will be posted publicly once the advanced design concepts are submitted in the spring of 2022. At the end of the process, the jury’s completion report will also be posted publicly.

Key considerations

Block 2 contains the future Indigenous people’s space, which will encompass the redevelopment of the former United States Embassy located at 100 Wellington as well as the former Canadian Imperial Bank of Canada building located at 119 Sparks. A dedicated space for the Algonquin Nation is also envisioned.

At this point the Indigenous people’s space is not part of the broader redevelopment of block 2. However, the procurement and delivery strategy for the block 2 redevelopment has been structured so that the Indigenous people’s space could be on-boarded with it, if Indigenous partners support this approach and timing of decision-making aligns.

The Victoria Building is part of block 2 and houses over 40 Senator offices. The Victoria Building is nearing the end of its life cycle. The department has identified the opportunity to relocate senators to 40 Elgin Street which already accommodates approximately 20 senators, so that the Victoria Building can be rehabilitated as part of the block 2. Doing so will reduce costs by over $65 million. The Senate has directed the department to proceed with the acquisition of 40 Elgin Street while it assesses whether 40 Elgin Street could be used to empty the East Block. A final decision from the Senate is key to the redevelopment of block 2 and the overall Long Term Vision and Plan Strategy.

Indigenous Peoples Space

Mandate

The government is working with the National Indigenous Organizations (NIOs) and the Algonquin Anishinabeg National Tribal Council (AANTC) to build a national space for Indigenous Peoples in the Parliamentary Precinct. Crown-Indigenous Relations and Northern Affairs Canada (CIRNA) is the federal lead. CIRNA is leading the process to develop a vision and concept for the space in conjunction with the NIOs and the AANTC. Public Services and Procurement Canada is the federal custodian and is supporting the design and construction of the space.

Key activities

Following public consultations, the Prime Minister announced on June 21, 2017, National Indigenous Peoples’ Day, that the former United States Embassy located at 100 Wellington street would be transformed into a national space for Indigenous Peoples. The footprint of the project includes 100 Wellington street, as well as a former bank located at 119 Sparks street, and the infill space between the 2 buildings. Both 100 Wellington and 119 Sparks are federally designated heritage buildings.

100 Wellington and 119 Sparks are both situated in block 2, the city block facing Parliament Hill that is bounded by Wellington and Sparks streets to the north and south, and Metcalfe and O’Connor streets to the east and west. The redevelopment of block 2 is the subject of an international design competition launched in 2021 and led by Public Services and Procurement Canada (PSPC) to develop aging and underutilized assets for parliament’s immediate and long-term accommodation requirements.

CIRNA worked with Indigenous partners to develop a 3-step strategy for the space’s development:

  1. development and implementation of a short-term use concept
  2. short-term use while working with Indigenous groups to establish a governance structure and establish a vision for long-term use
  3. long-term use development and implementation (design, construction and operation)

At the request of Indigenous partners, PSPC completed a short-term use concept in June 2019, converting 100 Wellington street into a temporary exhibition, meeting and press space while work began in parallel on developing governance and a vision for the long-term use. However, the AANTC raised concern regarding the level of consultation with them on the project and requested that they be considered an equal partner along with the 3 NIOs. Due to a lack of consensus amongst the NIOs and AANTC on this matter, opening of the short-term space did not occur and it remains closed today.

In an attempt to move past this impasse, CIRNAC and Public Services and Procurement Canada have worked with the Indigenous partners to de-link and provide separate spaces for the NIOs and the AANTC, both for the short and long-term. Discussions began in fall 2020 on an agreement that would provide the AANTC exclusive long-term use of the infill space between 100 Wellington and 119 Sparks, as well as the short-term use of the 119 Sparks street while the long-term use is being developed. Engagement with the recently elected Grand Chief have been constructive and discussions are ongoing.

Partners and stakeholders

Key partners and stakeholders are CIRNA (lead) and the National Indigenous Organizations:

The project is located on asserted traditional Algonquin territory and no modern treaty is currently in place. While government and Indigenous stakeholders work to resolve the claim, it is not expected to impact the project.

Broader, national engagement with Indigenous organizations and communities will be required for the development of the long-term vision of the project.

Key considerations

PSPC will continue to support CIRNA, the NIOs and AANTC to move the short and long-term use projects forward, providing delivery capacity and expertise as required.

Agreement with AANTC on infill and 119 Sparks

Coming to an agreement with the AANTC is a prerequisite to continuing work with NIOs on 100 Wellington and to opening the short-term use space (subject to COVID-19 restrictions). Discussions are largely on hold while leadership transition is underway with the AANTC new Grand Chief. Public Services and Procurement Canada is continuing to support CIRNAC with the intention of re-engaging AANTC in fall 2021.

Policy and funding

Public Services and Procurement Canada has policy authority and preliminary funding for the construction of the long-term use projects. CIRNA continues to work with the NIOs in developing the long-term vision as well as the short-term use for the space in conjunction with AANTC and would need to seek policy and funding approval for their programming and operations.

Governance

Central to advancing the long-term use projects and to a future request for authority and funding is mapping out the governance for the design, construction and ultimate operation of each site.

Integration with block 2 and the Long Term Vision and Plan

The Indigenous peoples space is still not part of the broader redevelopment of block 2; they are considered 2 separate projects. Design work and construction activities will be carried out separately. However, the procurement and delivery strategy for block 2 redevelopment has been structured so that the Indigenous peoples space could be on-boarded with it, if Indigenous partners support this approach and timing of decision making aligns.

Laboratories Canada: Strengthening federal science through collaboration

Laboratories Canada Overview

Mandate

Public Services and Procurement Canada is responsible for Laboratories Canada, a 25-year strategy to create a world-class, national network of federal laboratories to support modern, collaborative and innovative research and science.

Many of Canada’s federal science laboratories are very old and in poor condition, and these sites no longer support the scientists and researchers who are doing important work for Canadians. These facilities lack the physical and digital infrastructure to support modern collaboration. The facilities are also extremely inefficient—up to 12 times more costly to maintain and operate compared to a modern facility in good condition. As the government’s complex infrastructure project manager, the department was mandated to leverage its experience in the Parliamentary Precinct and beyond to work with science partners and lead a major enterprise-wide renewal program for science facilities.

Key activities

Budget 2018 announced $2.8 billion for the department, launching the first phase of renewal. The Laboratories Canada strategy then established 5 science hubs, science-based groupings of projects rooted in collaboration. The 5 Hubs are:

The current approach to renewal brings together scientists from across the federal family with shared priorities and challenges. It equally includes developing enterprise approaches to investment and stewardship of assets; sharing, managing, and procuring scientific equipment; digital information management/information technology enablement; and addressing policy and administrative barriers that inhibit collaboration. It is renewal by building and managing new 21st century platforms.

The Laboratories Canada strategy is driven by a Long Term Vision and Plan and will be delivered through a rolling program of work. Phase 1 funding supports the construction of multi-department lab facilities, with specific sites approved by the Minister of Public Services and Procurement, based on a consensus recommendation from science hub deputy ministers.

Arising from over 2 years of detailed collaborative program and project-level planning, the department is preparing a program update to support the rolling program of work in 5 elements, followed by cyclic refreshes based on successful execution against long-term planning:

This work will advance the current phase of hubs and projects and launch the next one.

Partners and stakeholders

The Minister of Public Services and Procurement is responsible for the implementation of the Laboratories Canada strategy and the minister of Innovation, Science and Industry is responsible for science policy. The Laboratories Canada phase 1 partners are the 14 departments and agencies that comprise the 5 science hubs, and Shared Services Canada. These departments and agencies maintain responsibility for their science mandates and program delivery.

An integrated governance structure provides a forum for Public Services and Procurement Canada and its partners to guide decision-making and apply appropriate oversight to the strategy and projects together, as well as tackling practical issues such as which organization will own and operate shared facilities and how.

Key considerations

This initiative is a complex, horizontal initiative with many partners and clients whose work is often specialized and has long been conducted in traditional and often poor condition facilities. There are multiple simultaneous projects with, at times, evolving stakeholder requirements as Canada’s science landscape changes. The department is working closely with partners using integrated governance and implementing risk management for this horizontal initiative, with shared accountability for outcomes across the 14 partners. Strong collaboration between partner departments and agencies, proactive change management, capacity-building within the program, and robust project/contract management practices are key to addressing these challenges.

Operating in the context of the COVID-19 pandemic has been a further challenge. While it has created difficulties for some partners to maintain pace when focused on critical response efforts, Laboratories Canada had the chance to support partners with critical needs, including delivery of the National Research Council’s Biologics Manufacturing Centre project [Redacted].

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