2022 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 (PSPC) 2021 to 2022 Office Long Term Plan (OLTP). 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. The OLTP was updated in 2022 to accelerate the modernization and office consolidation over a 10 year period and the resulting projected space inventory formed part of the input for the Strategic Policy review.

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 plan, first 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 office

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 the hybrid work model, with more flexible, modern 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

PSPC has provided leadership to the federal community related to the real property aspect of the return to the office, succeeded at aligning department’s representing roughly 65% of total footprint in agreeing to shed 50% of their general office space, and we are now moving to implement the hub and spoke workplace model. The efforts will support affordable housing objectives.

A pathfinder Public Services and Procurement Canada used for return to the office experimentation wrapped up in the spring of 2022 and is now PSPCcoworking, a cornerstone of the department’s return to office activities offering multiple shared office spaces. Within it’s own organization, PSPC has further leveraged the pathfinder program to create branch neighbourhoods to further support the return to a network of office space available to PSPC employees.

By mid-fall 2022, PSPC is planning to open 21 neighbourhood spaces for PSPC employees excluding spaces for the Deputy Minister’s Office (DMO) and the Minister’s Office (MINO). The primary objective over the summer to early fall is to have a neighbourhood ready for each branch. Although we are leveraging modernized sites as much as possible, which are compliant to our GCworkplace standard, a few more still need modernization. PSPC is also refining its monitoring of space occupancy trends nationally across PSPC occupied spaces including the National Capital Area (NCA) coworking and branch neighbourhoods. We have observed a positive trend of NCA users visiting the space. For reference, 14% of PSPC NCA employees have used a space since August, 3, 2021. An additional 10% have used a space since the opening of the 3 pilot neighbourhoods on June 6, 2022, for a total of 24%.

From this pilot, Public Services and Procurement Canada developed guidance for departments on returning to the office. Departments are asked to reopen specific spaces as needed until their occupancy level reaches 70% to 80% occupancy which would then trigger further openings.

In addition to this guidance, PSPC offers participating departments access to GCcoworking spaces. This innovative pre-pandemic pilot currently has 9Footnote 1 nationally distributed, modern, activity-based office spaces that are shared between multiple departments. PSPC employees began returning to the sites in August 2021 and other departments started returning and onboarding in November 2021. Currently 36 departments have returned to GCcoworking, including a number who had not previously onboarded with active registrants. As of August 31, 2022, there are 3,690 active users. Departments continue to signal a strong desire to include these locations as part of their own return to the office strategies and clients and users are requesting additional office locations. FourFootnote 2 new sites are planned for opening in 2023 as a funding request was submitted and is awaiting approval for expansion and project status. Such sites will enable the recruitment of local talents, shortening commutes as part of greening efforts, including within the indigenous communities as part of reconciliation.

Public Services and Procurement Canada now offers the Workplace Transformation Program to deliver activity-based workplaces via furniture solutions and repurposing existing constructed elements in shorter timeframes. It aims to provide as many employees as possible with access to modernized space for the hybrid return to office at a lower cost than typical workplace modernizations, where the asset condition allows. The spaces will be GCworkplace standard compliant, the most accessible and inclusive standard we ever had. We also leverage the Indigenous design guidelines to represent our Indigenous communities across the portfolio.

Thirteen projects are underway.

Partners and stakeholders

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

Key considerations

Challenges departments face include defining the future of work and subsequently office occupancy to determine how many office spaces should be opened. Occupancy measurement is a key enabler to right-sizing the real property portfolio by identifying high and low usage assets and by identifying opportunities for consolidation and modernization. A pan-Government of Canada (GC) occupancy dashboard has been developed by Public Services and Procurement Canada collaborating with Department of National Defence (DND), Canadian Security Intelligence Service (CSIS) and Treasury Board of Canada Secretariat (TBS) to assess the level of use of workplaces. We are working on expanding participation with 3 more departments at various phases of onboarding, and gathering data across the GC WiFi capacity.

A second key challenge is supporting a hybrid workforce (flexible workforce). Human resources (HR), 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 modern structured and organized gradual return to the office 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.

Hub and spoke model: Ecosystem of workspaces

Background

Pre-pandemic office space was underutilized by 40%, and approximately 90% of government office space was unmodernized to 2012 fit-up standards. This provides a compelling case for change to new models with unassigned seating, smaller footprints, greener and more accessible office spaces. The pandemic caused a massive disruption in the way we operate, but it has also been a catalyst for sustained change and innovation.

In April 2022, Treasury Board Secretariat president, Mona Fortier, said “Hybrid work is here to stay”, a vision repeated by Janice Charette, Clerk of the Privy Council saying we should “not be snapping back to a pre-pandemic model”. The hub and spoke model reflects the real property response to increased remote working. It offers the Government of Canada a way to implement this new vision of flexibility for many in the public service workforce by offering access to multiple work locations and providing the option to select the best work environment within a mix of modernized and unmodernized work locations.

The hub is the primary departmental office location and headquarters, providing space for leadership, representing centres for departmental culture and accommodating specialized operations and functions. The array of spokes are additional locations that provide options for employees to choose from to support their work requirements on any given day. These include operational sites, such as labs and service centres; smaller office spaces distributed in locations outside of the urban centres. These include GCcoworking sites, which are federal worksites shared accessible to all departments. This innovation allows all departments to have immediate access to modernized workplaces and provides the opportunity to support an increasingly distributed workforce within shared federal workplaces.

Both hub and spoke offices will be designed according to the 2019 Government of Canada workplace fit-up standards—activity based design, unassigned seating, digitally enabled, inclusive, accessible and green.

Key considerations

The hub and spoke model enables the rapid reduction of the office footprint but requires investment to modernize office space to meet the current standard. This requires tenant departments to vacate surplus locations and consolidate in locations to be retained. This represents significant investment and a change leadership challenge. It also represents a generational opportunity to reposition the public service toward the future by modernizing how we work and reimagining how office space can better support departmental programs and operations.

This model allows us to better serve Canadians by increasing and unifying the federal presence outside the national capital. This provides departments with access to a broader, more diverse talent pool. It allows better outcomes for rural socio-economic sustainability, reducing the flight of younger Canadians from these regions to the cities and urban centres to find work in the federal public service. PSPC is implementing a pilot GCcoworking project on an Indigenous reserve in Fort William, Ontario which is anticipated to provide benefits for the community and federal departments in the area. It also benefits employees by providing a better work-life balance due to reduced commuting by working closer to home, which has a positive secondary effect of reducing the carbon footprint.

A key challenge for real property is the lack of a consistent approach to the return to the workplace and implementing the hybrid work model. Without a clear directive from government or the centre, deputy heads have adopted a variety of approaches. This makes planning difficult and increases the risk for investment decisions, including the alignment of real property and information technology infrastructure investments that enable digital workplaces. PSPC has developed strategies to mitigate this to the extent possible.

Reducing federal greenhouse gas emissions

Mandate

Public Services and Procurement Canada currently has 340 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:

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 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:

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.

Real property services key projects

Tunney’s Pasture redevelopment

Mandate

Public Services and Procurement Canada and Canada Lands Company (CLC) 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.

Key activities

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.

Portfolio Impacts: PSPC has reviewed the future accommodation requirements and impacts of increased remote work to the campus. This has resulted in all new office construction being put on hold and additional buildings being considered for disposal. The increase in surplus lands is currently being considered to create opportunities for Indigenous participation and affordable housing. Remaining buildings are being invested in to support the post COVID-19 hybrid work model.

Public engagement: 2 engagement and information sessions were held in spring / summer 2022. Both sessions were attended by local member of Parliament (MP) Yasir Naqvi and City Councillor Jeff Leiper. The main themes coming out of both sessions were affordable housing, community amenities and green space. MP Naqvi committed to having 20% affordable housing within the development.

Partners and stakeholders

Canada Lands Company: PSPC is partnering with CLC on the redevelopment, leveraging the strengths of each organization. PSPC will remain the lead on all federal land uses and approvals, while Canada Lands Company will lead all residential and community uses developed on surplus lands and municipal approvals. Together, we will redesign the roads and infrastructure to support both federal and community uses and engage the National Capital Commission (NCC), City of Ottawa, Indigenous and local communities.

Indigenous engagement: PSPC and Canada Lands are currently meeting with the Algonquin Anishinaabeg National Tribal Council, the Algonquins of Ontario and the Algonquins of Pikwakanagan First Nation to include their perspective and priorities into implementation planning and create employment, economic and housing opportunities.

Client departments: Tunney’s Pasture is the headquarters for both Health and Statistics Canada and provides office and lab space to 6 other departments. PSPC has struck an inter-departmental committee on the redevelopment of Tunney’s Pasture to keep them updated as the redevelopment moves forward and a technical advisory committee to ensure that client needs are considered in the redesign of the roads and infrastructure.

Community groups: A communities perspectives group has been struck to ensure a variety of interests and perspectives are considered throughout the redevelopment phases of the non-federal development blocks at Tunney’s Pasture. The communities perspectives group includes community associations as well as non-profit organizations that support diversity, inclusiveness, wellness and sustainability. They will help determine the shared values for the project.

Key considerations

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 contributes significantly to maintaining the National Capital Area ratio of 25:75 ratio between Gatineau and Ottawa. The building represents 12.6% of the government’s Gatineau portfolio and approximately 3% of the current 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.

BGIS, who is delivering this project for PSPC under a large real property contract, awarded a construction management contract [Redacted]. The construction phase of the project was initiated in January 2022, and construction work is therefore currently underway.

[Redacted]

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. [Redacted]

Key considerations

Given that construction work is ongoing, adjacent tenants, nearby residents, and local pedestrian/cyclist/vehicular traffic may be disrupted by higher than usual noise levels or other types of disruptions. In turn, this may generate public and media interest, and/or questions from nearby building occupants.

Over the coming months, ministerial support will be sought for a Treasury Board submission planned for winter 2023 seeking expenditure authority for phase 2 fit-up of the project.

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. Subject to availability of capital funding in the neat term, a comprehensive revitalization program is needed to 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 maintaining the National Capital Area ratio of 25:75 between Gatineau and Ottawa.

Key activities

Four integrated refurbishment projects comprise the comprehensive revitalization program:

Activities are planned to 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 the end of 2023, 15 floors in the complex will have been renovated. This supplements several floors already recently modernized in the complex.

The envelope 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 fall 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 was recently completed to develop concept design options and an optimum implementation strategy to guide and integrate modernization efforts over the long term. Given current capital funding constraints, alternative methods of delivery are currently being explored.

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 support 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 (LEED) 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.

Given recent increases in construction costs due to market changes, Public Services and Procurement Canada is undergoing a review process with regards to the project’s scope.

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 (SCCB) 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 2032.

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

West Memorial Building rehabilitation project faced constraints related to COVID-19 restrictions and continues to deal with unforeseen site conditions (structural reinforcement) putting pressure on the construction schedule.

All team members are mobilized to develop mitigation measures to maintain the summer 2024 project delivery date.

Supreme Court of Canada Building rehabilitation

A request for qualifications for prime consultant services was posted on the Buyandsell.gc.ca portal on August 20, 2020, and for the construction manager on August 28, 2020. Technical evaluations were completed for both and a short-list of bidders has been produced.

[Redacted]

As a next step, the request for proposals are well advanced and could be launched as soon as funds are confirmed.

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 45, boulevard Sacré-Coeur site.

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 several departments requiring secure and special purpose space. COVID-19 has driven significant changes for all departments and employees, from where they work to how they work (for example remotely / in-office). This presents an opportunity for the 45 Sacré-Coeur project to reshape and modernize the workplace and enabling technology to meet these needs. The project will aid to integrate technology, real estate, and more modern HR practices that will lead to an optimized real estate footprint, and a fully accessible working environment. The project will also rehabilitate a 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 a number of locations.

Key activities

The consultation process with the National Capital Commission and the Federal Heritage Buildings Review Office continues 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. An updated land use concept was presented on August 25, 2022.

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:

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 crossings

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 one 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:

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 1 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, 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, ten maintenance yards, five 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.

Maintenance

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

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. The emergency stabilization portion of this project is complete. Ongoing projects are required for long term embankment stabilization.

Pavement Inspections

The inspection involves a systematic process of monitoring conditions, assessing performance and helps with scheduling rehabilitation/reconstruction activities based on improving safety and optimizing life cycle costs

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 three bridge-culverts. The bridge-culverts are in varied condition, each with specific issues and require either rehabilitation or replacement. Work is ongoing.

Conversions to Asphalt from km 485-555

Two capital project over two years to convert sections of the highway to asphalt. The first project was from km 325-355, which was completed in the 2021 construction season, and km 520-555 which will be completed in the 2022 season. km 485-520 was also started in 2022 with a goal of completion in the same year. Both projects are intended to improve the overall operation and safety of the highway by making geometric and infrastructure improvements where needed by widening the shoulders, introducing crossfall slopes, improving superelevation, correcting unsuitable vertical curves and barrier flares, and constructing a properly sized and safe for use chain up areas.

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.

Washout near km 897

A section of the Alaska Highway near km 897 was washed out on July 1, 2022. The heavy rainfall that occurred resulted in the collapse of a beaver dam. A 3 km single lane detour was put in place, Lower Post First Nation are operating the Pilot car 24/7 in shifts. A contractor has mobilized on site and work is ongoing. Currently targeting a substantial completion of October 10, 2022, at which point the highway would be reopened to traffic. Final road surfacing to be completed in Spring 2023.

Incident on the Sikanni Bridge

On Thursday, August 25, 2022, a tanker truck caring fuel caught on fire on the Sikanni Bridge at km 256. The bridge suffered severe structural damage from the fire with three of the five spans affected. After an engineering review, it was determined that vehicles less then 16 tones are permitted to cross the bridge. There is currently only a single lane of traffic permitted on the bridge. The structure is damaged and full load capacity will not be returned until after permanent repairs are completed. Heavy trucks over 16 tones must use alternative routes on either Highway 37 or Highway 77. These detours will require trucks to drive an extra 12-20 hours. As the next step, the project team will meet with Acquisitions Branch and continuing to work with the consulting engineers to develop temporary and long term design solutions for the Sikanni Bridge. Timelines for options are being developed.

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 five 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 do not always flow 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 to all federal construction work on federal real property or immovables. 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. Any payment disputes will be resolved via an adjudication system.

Key activities

The act has received royal assent, however, there remains some work to complete before the prompt payment regime comes into force:

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 is responsible, in partnership with Parliament, for implementing the Long Term Vision and Plan (LTVP)—a multi-decade strategy to restore and modernize its buildings and grounds.

Key activities

Background

The Parliamentary Precinct is composed of 37 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 LTVP is currently being updated. The LTVP has 3 core objectives:

The LTVP establishes a long-term direction and short-term priorities, and is delivered via rolling programs of work approved by both Parliament and 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 LTVP has focused on restoring and modernizing deteriorated heritage buildings to provide both short-term swing space and permanent accommodations with a single investment. The LTVP has a strong record of completing major projects on time and on budget. Since the LTVP was revised in 2007, PSPC has completed a string of 24 major projects, including the Sir John A Macdonald (2015), Wellington (2016), and the Senate of Canada Building and the West Block (2018).

Work completed to date has enabled PSPC to empty the Centre Block and launch its historic restoration and modernization, a central objective of the LTVP 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 $4.5B to $5B has been established for this work with a targeted completion of 2030 to 2031. For more details, please refer to the note titled Centre Block Rehabilitation Project.

Another top 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 LTVP is focused on establishing a clear and integrated campus plan. The update will be completed in 2022 to 2023.

A first major step in achieving this campus plan is the redevelopment of block 2, located directly across from the Peace Tower. In 2021, an international design competition was launched to redevelop this city block composed of mostly empty and underutilized buildings. The design competition was completed in spring 2022, and PSPC is now negotiating with the competition laureate to put in place a contract for architecture and engineering services for the project. 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. For more details, please refer to the note titled Block 2 Redevelopment.

Block 2 also contains the future Indigenous Peoples Space, which will encompass the redevelopment of the former US Embassy located at 100 Wellington, as well as the former CIBC building located at 119 Sparks. A dedicated space for the Algonquin Nation is also envisioned. For more details, please refer to the note titled Indigenous Peoples Space.

Discussions are also underway on the future of Wellington Street. The Parliamentary Precinct, including Wellington Street and its environs (for example Sparks Street), is a complex environment involving many stakeholders with varying and overlapping areas of accountability. Wellington Street no longer serves as a boundary to the Parliamentary and Judicial Precincts—it cuts through them. Following the 2022 illegal protests in Ottawa, discussions were launched on the future of Wellington Street at the municipal level through a City of Ottawa motion as well as through a study conducted by the House of Commons Standing Committee on Procedure and House Affairs (PROC). For more details, please refer to the note titled The Future of Wellington.

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

PSPC works with a wide range of partners and stakeholders in implementing the LTVP. Most importantly, PSPC 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 LTVP. A governance framework provides a forum for PSPC 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, 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. PSPC also chairs an international group of organizations (International Network of Parliamentary Properties) involved in the management and redevelopment of parliamentary properties.

Key challenges

The restoration and modernization of Canada’s Parliamentary Precinct has been recognized by the Project Management Institute (PMI) 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]

Longstanding issues of ownership and control, security, and governance have also been brought to the fore as the 2022 illegal protests in Ottawa clearly demonstrated the elevated risk associated with multiple entities managing a space that plays a central role in the operations of Canada’s democratic institutions.

Conflicting or misaligned priorities among partners and stakeholders can lead to program risk, and the potential for delays and increased costs. In an attempt to mitigate risks, PSPC officials regularly present options analysis and updates to separate committees of the Senate and House of Commons.

A more detailed briefing on the LTVP is available at your request.

The future of Wellington

Mandate

In July 2022, discussions at the senior officials and working levels were launched to develop recommendations aimed at addressing longstanding issues of ownership, security and governance for Wellinton Street and the parliamentary and judicial precincts more broadly. [Redacted]

The minister of Public Services and Procurement is the custodian of the parliamentary and judicial precincts, as well as the federal lead for their planning and development. As such, they have a key leadership role to play in these discussions.

Key activities

The 2022 illegal protests in Ottawa had a direct impact on the operations of Canada’s parliamentary and judicial precincts. The events brought to light 3 key long-standing issues of multiple actors and jurisdictional barriers regarding:

These issues are increasingly relevant and emphasize the need for a clear operational and decision-making framework. Beyond responding to the issues brought bare during the illegal protests, the future role of Wellington Street is a critical consideration for other reasons as well. The restoration and modernization efforts in the parliamentary and judicial precincts are increasingly shifting operations to the south side of Wellington Street. Within the next decade, approximately 50% of parliamentarians will be permanently accommodated on the south side of Wellington Street. In addition, other external stakeholders, such as the City of Ottawa, Société de transport de l’Outaouais and the National Capital Commission are leading on another public infrastructure projects that will shape the precinct in the future (for example, Public Tram)

In July of 2022, in partnership with the Privy Council Office and with the approval of the minister for Public Services and Procurement at the time, a tiered committee structure at the political, senior official, and working levels was launched to oversee the development of a report before the end of 2022 with clear options and recommendations focused on the 3 core issues:

In accordance with the terms of reference, options and recommendations are to seek to:

Discussions at the senior official and working levels are ongoing and have included early outreach with the City of Ottawa and National Capital Commission, as well as representatives in the judiciary. [Redacted]

Public Services and Procurement Canada is the secretariat for the working level governance structure. The Privy Council Office is the secretariat for the senior officials and political level structures.

Public Services and Procurement Canada is also playing a coordinating role to support subworking groups that have been established to support key activities, including:

Partners and stakeholders

Wellington Street, along with the broader parliamentary and judicial precincts is a complex environment involving many stakeholders with varying and overlapping areas of accountability:

Key considerations

Public Services and Procurement Canada is currently undertaking an update to the Long Term Vision and Plan, which is aimed at transforming the Parliamentary Precinct into an integrated parliamentary campus that supports a consolidated approach to such elements as sustainability, accessibility, and the safe movement of people, vehicles and goods through a secure campus. Central to the update is security. [Redacted]

Centre Block rehabilitation project

Mandate

PSPC is leading the rehabilitation of the Centre Block and construction of the new Parliament Welcome Centre.

Key activities

PSPC is modernizing the Centre Block and transforming the Parliamentary Precinct to make it safer, greener and more accessible to Canadians. The Centre Block project is the largest and most complex heritage rehabilitation project in Canada’s history. To restore this heritage masterpiece, the building needs to be carefully taken apart, undergo an extensive abatement program, and be rebuilt to incorporate structural and seismic upgrades, new building systems, and a modern digital backbone while protecting the precious heritage character of the building. The new Parliament Welcome Centre will provide a safe, secure and accessible entry to Parliament. It will also provide infrastructure to enable Parliament to welcome more Canadians as well as provide parliamentary functions which cannot be accommodated in the Centre Block but require proximity to the Senate and House of Commons chambers. The estimated cost to design and construct the Centre Block and Parliament Welcome Centre is $4.5 to 5 billion, with substantial completion of construction targeted for 2030 to 2031 and the re-opening of the building targeted for 2032.

A design concept for the Centre Block and Parliament Welcome Centre has been finalized and major construction activities are underway. Excavation for the Parliament Welcome Centre south of the Centre Block is approximately 75% complete, Centre Block demolition and abatement is also approximately 75% complete and the masonry program is approximately 7% complete overall. To date, 20 million pounds of asbestos containing material has been removed from the building and over 32,000 truckloads of rock have been removed from the site. The masonry rehabilitation program will repair or replace almost 35% of the buildings 400,000 stones.

Trompe l’oeil

With the support of Parliament, PSPC began installing a decorative tarp, known as a trompe-l’oeil, on the north façade this summer. This decorative tarping will extend around the sides and the front of the building, including the Peace Tower—one of Canada’s most recognizable landmarks, attracting approximately 3M visitors annually. The trompe-l’oeil will provide a safe working environment and mitigate the visual impact of construction for a positive visitor experience on both sides of the Ottawa River.

Job creation

The Centre Block rehabilitation project is expected to create an additional 70,000 jobs (person years) in its lifespan, providing economic benefits for Canadians. In addition, PSPC is also targeting 90% of the work delivered to flow to small and medium enterprises across Canada, with 5% of work to be carried out by Indigenous firms. Approximately 500 companies are engaged on the project, and 50 initial internships have been created from 10 Canadian colleges and universities. To date, 10 Indigenous participation plans have been put in place and it is expected to increase as the construction program progresses. On an average day, there are approximately 400 workers on site. At peak construction, it is estimated that there will be over 1,500 construction workers on-site.

Key challenges

Schedule: The Centre Block remains on track. However, construction began just prior to the global pandemic, which has stressed schedule management. In addition, the illegal protest and a province-wide labour strike in 2022 shut down the construction site for over 2 months. The project team is working closely with the design consultant and construction manager to better understand and mitigate risk.

Inflation: As with other sectors of the economy, the construction industry is experiencing significant inflation pressures. The program includes risk and contingencies to address typical inflation over the duration of the project but will closely monitor the outcome of procurements that will be executed by the construction manager over the next 12 months to better understand any potential impacts of inflation on the program.

A more detailed briefing on the Centre Block rehabilitation project, including a visit to the site, is available at your request.

Block 2 redevelopment

Mandate

PSPC 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 and Wellington streets and making 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) because the buildings are in the most deteriorated condition and it provides the greatest development capacity to 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 efficient interconnected complex. It also supports an efficient delivery strategy (such as, reduces costs and shortens timelines), which minimizes construction disruptions.

The block 2 redevelopment includes:

In order to achieve this vision, in May 2021, PSPC 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. Canada's original Parliament buildings were the result of a design competition in 1859. The renewal of the European Parliament Building is also utilizing a design competition approach that was launched in 2020.

The Royal Architecture Institute of Canada acted as an independent competition manager with the support of Phase Eins. They assembled an independent jury of national and international architects, engineers and academics, as well as Indigenous and civil society representatives, and parliamentarians, including the Parliamentary Secretary to the minister of Public Services and Procurement, to evaluate the design concepts and recommend the top 3 finalists to the minister.

At the launch of the competition, PSPC prequalified 12 firms and invited them to participate in the competition. On September 24, 2021, an independent jury evaluated the design concepts of 11 prequalified firms (1 withdrew their submission) and shortlisted 6 competitors in early October 2021, who subsequently advanced to stage 2 of the competition. Those 6 competitors presented their designs to the jury and the Canadian public through a public presentation that took place on April 11, 2022. The jury then deliberated from April 20 to 22, 2022, and provided PSPC with their recommendations.

On May 16, the Minister announced the top 3 finalists and the winning design:

  1. competition laureate and winning design: Zeidler Architecture Inc. (Toronto) in association with David Chipperfield Architects (London, United Kingdom)
  2. second place design: NEUF Architects (Ottawa) in joint venture with Renzo Piano Building Workshop (Paris, France)
  3. third place design: Watson MacEwen Teramura Architects (Ottawa) in joint venture with Behnisch Architekten (Boston, United States)

Engagement is ongoing with the competition laureate to negotiate an architectural and engineering services contract. A cost estimate will be determined after these negotiations, and when the full scope of project is determined in partnership with Parliament (targeted for 2023). A contract for construction management services is anticipated to be awarded in 2023, and construction start is targeted for 2024.

Partners and stakeholders

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

In terms of a public interface, block 2 redevelopment plans were presented at a public forum hosted by the NCC’s Urbanism Lab as part of a broader piece on the LTVP. Reactions following the conclusion of the design competition have been positive so far with broad support for the caliber of the firms who participated. The 6 shortlisted designs were posted publicly in the spring of 2022, along with the top 3 finalists and winning design following the completion of the competition. The jury’s completion report is expected to be posted publicly after contract negotiations.

Key challenges

Indigenous Peoples’ Space

Block 2 also contains the future Indigenous Peoples Space, which will encompass the redevelopment of the former US Embassy located at 100 Wellington as well as the former CIBC building located at 119 Sparks. A dedicated space for the Algonquin Nation is also envisioned.

The Indigenous Peoples’ Space is not part of the block 2 redevelopment project at this time, but there is flexibility built-in to the contracting authorities to incorporate that responsibility if desired, and in a manner determined by Indigenous partners.

Terry Fox Statue

As part of the block 2 redevelopment, the Terry Fox Memorial Statue will be relocated. PSPC is working closely with the Fox family, the NCC and the City of Ottawa to find an appropriate and dignified location that will continue to honour this national hero.

Indigenous Peoples’ space

Mandate

The Government of Canada 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 in developing a vision and concept for the space with the NIOs and the AANTC. PSPC is the federal custodian and supports CIRNA in 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. PSPC recently completed an international design competition to develop a design to address the state of aging and underutilized assets of this city block as part of the block 2 redevelopment project. Although the Indigenous Peoples’ Space was not part of the design competition, the block 2 delivery and procurement is designed to allow for its inclusion if Indigenous partners desire so and timing aligns. Whether or not it is onboarded, this space substantially influences the architectural vision and design concept for block 2 and offers a nationally-significant political and cultural space with which the rest of the block must thoughtfully and creatively engage.

CIRNA worked with NIOs 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 NIOs, PSPC completed a short-term space 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 direct consultation on the project and requested that they be considered an equal partner along with the 3 NIOs. A lack of consensus amongst the NIOs and AANTC on short-term usage governance has led to a delay in opening the short-term space that continues today.

Current status

In an attempt to move past this impasse, CIRNA and PSPC 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. In addition to supporting CIRNA and Indigenous organizations in the project planning, delivery and relationships elements, PSPC has engaged with CIRNA, the Department of Justice, central agencies, and Indigenous partners in the development of the AANTC planning and design agreement. The agreement would provide a path forward on the allocation of space between the NIOs and the AANTC.

Partners and stakeholders

Key partners and stakeholders are CIRNA (lead), the Assembly of First Nations, the Inuit Tapiriit Kanatami, the Metis National Council, and the AANTC.

Key challenges and next steps

PSPC will continue to support CIRNA, the NIOs and AANTC to advance the project.

Agreement with Algonquin Anishinabeg Nation Tribal Council on infill and 119 Sparks

Coming to an agreement on allocation of space is critical to advancing the project.

Policy and funding

Based on an agreement on space allocation and functionality, CIRNA will need to seek policy and funding approval for their programming and operations. PSPC will support its efforts.

Governance

Central to advancing the project is establishing clear governance to guide decision making for the design, construction and ultimate operations.

Integration with block 2 and the Long Term Vision and Plan

There would be benefits in integrating the design and construction efforts between block 2 project and the Indigenous Peoples’ Space development. At this point, the Indigenous Peoples’ Space is not part of the broader redevelopment of block 2—they are 2 separate projects. Design work and construction activities may be carried out separately. However, the procurement and delivery strategy for the block 2 redevelopment has been structured so that the IPS could be on-boarded with it, if Indigenous partners supported this approach and timing of decision making aligns.

Laboratories Canada: Strengthening federal scient through collaboration

Laboratories Canada overview

Mandate

Public Services and Procurement Canada is responsible for Laboratories Canada, a long-term transformative strategy to enable federal science excellence by creating a world-class, national network of federal laboratories to support evidence-based decision making, collaboration, and innovation in core program delivery.

Key activities

Background

Many of Canada’s federal science laboratories date from the post-war era and are in poor condition. Increasingly, these sites do not support our scientists and researchers in their important work for Canadians. Many facilities lack the physical and digital infrastructure needed to support modern collaboration. The older facilities are notably inefficient—up to 12 times more costly to maintain and operate compared to a modern facility. As the government’s complex infrastructure project manager, PSPC was mandated to lever its experience in the Parliamentary Precinct (expertise in developing a Long Term Vision and Plan to revitalize specialised, large, complex federal infrastructure) and to lead—with science partners—a major enterprise-wide renewal program for science facilities.

Budget 2018 provided $2.8 billion to PSPC to launch the first phase of renewal. The Laboratories Canada strategy then established science hubs—science-based groupings of projects rooted in collaboration. The approved policy is change: a whole-of-government initiative for transformation, not constructing new “conventional” labs. It brings together federal scientists with shared priorities and challenges. It develops long-term, enterprise approaches to:

The Laboratories Canada strategy is driven by a Long Term Vision and Plan (LTVP), delivered through a rolling program of work. The LTVP is grounded in guiding principles:

It co-creates with partners a right-sized, sustainable, and accessible portfolio of labs for the next generation of scientists.

The construction of these labs are in locations approved in 2018. Exact sites have been approved by the minister of Public Services and Procurement based on a consensus of science hub deputy ministers. The funding envelope focused on launching design and construction. Other costs required further work, including scientific equipment, digital enablement (beyond the most basic building fit up), and facility operating costs and recapitalization.

Current status

The time since initial approval has been spent developing and refining actual, specific functional program requirements with science partners, supported by world-class design and engineering experts, then advancing into design and construction. The Hamilton project was completed earlier this year. The Mississauga project is over half-way through construction, with completion next fall. Ground will be broken in Sidney, British Columbia this fall, following a blessing ceremony scheduled for September 21. Most larger projects have concluded functional programming, some having moved into design.

Forward path

Laboratories Canada will use the same successful “rolling program of work” model pioneered in the Parliamentary Precinct, which includes periodic updates on progress. PSPC is preparing a program update to ministers on overall program progress to seek approvals for continuing the program of work.

Partners and stakeholders

Ministers of federal science departments and agencies are responsible for charting their science priorities. The minister of PSP is responsible to implement the Laboratories Canada strategy, which is focused on bringing together science partners in collaboration as the government recapitalizes its science infrastructure. As minister responsible for Shared Services Canada, you also have a key role in creating a modern digital backbone for science.

Key challenges

Laboratories Canada is a complex, horizontal initiative with many partners, whose work is often specialized and has long been conducted in traditional and often outdated facilities. There are multiple simultaneous projects which may involve changing stakeholder requirements as Canada’s science landscape changes. They must be delivered collaboratively, but on ambitious timelines and must consider affordability and priorities. The appetite and need for reinvestment exceeds the initial allocation. PSPC is working closely with partners on this profound change using integrated governance and implementing risk management for this horizontal initiative, with shared accountability for outcomes across the 14 partners.

The scope, scale, and complexity of many of these projects are important. For example, once fully realized, a TerraCanada lab will not only be one of the largest labs in Canada but one of the largest Government of Canada facilities of any kind. The pandemic posed challenges for some partners to maintain pace on this major effort while responding to COVID-19 for Canada, but Laboratories Canada had the chance to quickly learn and support partners with critical needs, including delivery of the National Research Council’s Biologics Manufacturing Centre project and the Public Health Agency’s critical Secure Bioscience IT Network.

Key to addressing these challenges for Laboratories Canada is strong collaboration between partner departments and agencies, proactive change management, capacity-building within the program, and robust project/contract management practices. While governance exists among officials, there is no political-level governance across the initiative to forge consensus or drive the vision for the future of collaborative science across and beyond the Government of Canada.

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