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Real property services: Standing Committee on Government Operations and Estimates—March 12, 2020

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Real property services: Current projects overview

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Commitment

As the Government of Canada’s real property expert, Public Services and Procurement Canada (PSPC) operates and maintains federal office buildings across Canada that provide accommodation to over 260,000 public servants.

Public Services and Procurement Canada is committed to providing a safe and modern workplace for federal employees, occupants, tenants and visitors through planning and design activities.

Overview

Supreme Court of Canada and the West Memorial rehabilitation project

The Supreme Court of Canada Building, a classified federal heritage building, has not had a complete rehabilitation since its original construction in 1938. Key building systems in the Supreme Court of Canada building are failing and the building requires constant monitoring. To proceed with the rehabilitation work at the Supreme Court of Canada Building, swing space for these high-profile court functions is required.

The West Memorial Building, also a classified federal heritage building, is located opposite to the judicial precinct along the ceremonial route of the Confederation Boulevard. This strategic location makes it suitable for interim accommodations during the rehabilitation of the Supreme Court of Canada Building and ideal for continued government use over the longer term.

On July 17, 2017, PSPC announced that it will rehabilitate the Supreme Court of Canada Building. The building will be vacated for this project and the West Memorial Building, at proximity, has been selected as temporary accommodation, but the buildings need a major rehabilitation before it can accommodate Supreme Court of Canada employees.

The design work was initiated in February 2018 with the award of a design and architectural services contract to Moriyama & Teshima Architects and Kasian Architecture Interior Design and Planning Ltd.

The design work is ongoing and construction activities are planned to begin in 2020.

It is expected that the Supreme Court occupants will move to the West Memorial Building during summer 2023 allowing the Supreme Court of Canada rehabilitation to begin.

Carling Campus

In 2010, the department purchased Nortel's Carling Campus from Nortel Networks Technology Corporation and Nortel Networks Limited. This campus in the west end of Ottawa, comprised of 11 buildings, will allow the department to consolidate a significant portion of the office accommodation it provides to the Department of National Defence (DND). It will provide approximately 45% of National Defence's total space requirement in the National Capital Area in a single, suburban, Crown-owned location.

By consolidating the majority of its administration and strategic functions into a campus environment, the Department of National Defence will be better positioned to save on operating costs and accommodate their personnel in a secure environment. The Carling Campus project is the largest real estate relocation project of its kind in Canada.

In 2010, PSPC purchased the former Nortel Campus in Ottawa for $208 million in order to refit it for DND. As custodian, PSPC is the lead on the project to ensure that the Campus meets DND's long-term office accommodation requirements. When completed, 9,300 to 9,400 Defence personnel will occupy the Carling Campus.

The first phase of moves, totalling nearly 3,500 employees was completed in 2017. Moves resumed in April 2019 and approximately 4,500 Defence personnel have moved since. It is expected that the remaining moves will be completed by March 31, 2020. Progress towards this final objective is on track.

At the start of the project, Defence personnel were distributed in over 45 locations across the National Capital Area, mainly located in downtown, commercial leased spaces. These locations were costly to lease, refit, secure and renew on a recurring basis. Purchasing an existent building allows to acquire office space at a price significantly less than the cost of a new facility.

The consolidation sees DND moving from over 45 offices to approximately 10 major locations in the NCA, achieving $750 million in net savings in accommodations costs over a 25 year period, plus an additional $160 million for DND in cost avoidance. It also allows PSPC and Shared Services Canada to provide DND with the safe, healthy, and affordable facilities it needs to efficiently deliver its programs and services in Canada and around the world.

This project will generate significant savings through the reduction of operational and accommodation costs, increase efficiencies by reducing fragmented workforce and strengthen security.

Giant Mine remediation

The Giant Mine is a defunct gold mine near the city of Yellowknife, Northwest Territories, which is severely contaminated by lethal arsenic trioxide dust stored in large underground excavated areas, 95 hectares of open pits, tailing ponds with surface waste, and buildings contaminated with fibrous asbestos. Should the arsenic trioxide be released in the local groundwater system, there could be serious implications for nearby fresh-water bodies, including the Great Slave Lake.

The project’s broad objectives are to clean up the site to residential use standards; stabilize and secure the arsenic trioxide; and minimize health and safety risks to the public and site workers during the care and maintenance, implementation, and long-term operations. In advance of the full remediation phase, the department has been addressing urgent on-site risks to public and environmental health and safety.

The Government of Canada is taking action at the Giant Mine to protect the health and safety of local residents, on-site workers, and the environment. Public Services and Procurement Canada is responsible for providing project management and procurement services for the Giant Mine remediation project to Crown-Indigenous Relations and Northern Affairs Canada (CIRNAC). The goals are site stabilization, remediation and minimization of health and safety risks as this important project progresses over the next decade.

On site work will maximize opportunities for local suppliers, workers, and in particular for Indigenous business. To date, since 2006, 45% of the value of Giant Mine contracts awarded by PSPC were awarded to Indigenous firms, including joint ventures.

National Verification and Collection Centre in Shawinigan

In April 2017, it was announced and that certain major improvements and repairs would be made to the building and parking lot. Specifically, PSPC informed the Canada Revenue Agency (CRA) and employees of the National Verification and Collection Centre in Shawinigan (NVCC) that major ceiling and lighting improvements and repairs would be made to the centre's parking lot. At the time of the announcement, the investments and work required were based on a preliminary study and previous analysis of the building's condition.

Following preliminary study and analysis of the building’s condition, we conducted further studies based on the current condition of the building, the results of the study showed that the scope of the work and the costs would be greater than expected. In the interest of ensuring sound management of public funds, we reviewed our long-term investment plan and decided that the better option for the Crown and taxpayers would be the construction of a new federal office building.

The new building will provide NVCC employees with a modern, environmentally-friendly, state-of-the-art building that better meets the new needs of the NVCC and fully meets the government's new sustainable development requirements. The building will aim to obtain a gold-level leadership in energy and environmental design (LEED) rating for new construction.

The estimated construction costs for the project, as published in the department’s request for proposals for a construction management contract, are $106M. The actual cost of construction will be known once the project’s design and plans are finalized.

The project will include the construction of the new building, the dismantling of the existing building and the construction of the parking lot. The new 4 to 6 story building will be built near the existing building on the same site. Public Services and Procurement Canada will own the new building.

In August 2019, 2 requests for proposals were issued on buyandsell.gc.ca seeking:

Both tenders closed in November 2019 and the evaluation is ongoing.

[Redacted], construction is expected to begin in fall 2021 and occupation of the new facility is scheduled to begin in fall 2024. PSPC will work with the federal organizations occupying the building to plan the details of the move. The dismantling of the existing building and the construction of the parking lot will follow.

Public Services and Procurement Canada took action to address the mould issue at the Shawinigan Tax Centre as soon as it was made aware. The department shared all reports with the health and safety committees of the tenant departments. Experts consulted confirmed that the current situation is safe.

Work to eliminate visible mould and ensure the building remains safe for occupants was completed at the end of August. Additional work will begin in the spring to remove encapsulated moulds and seal the building envelope until decommissioning. Experts consulted confirmed that the current situation is safe. The department continues to work with stakeholders, tenant departments and the property managers to ensure that visual inspections are made on a monthly basis and that proper testing regimes are in place to proactively signal health and safety related issues.

Decontamination of the Saint-Germain Foundry

The Saint-Germain Foundry, located in St-Edmond-de-Grantham, Quebec, operated between 1977 and 2006. During this time, it processed metal scraps, resulting in an accumulation of contaminants such as metals, dioxins and furans.

In July 2010, the Government of Quebec informed PSPC that the site of the former Saint-Germain Foundry had been transferred to the Crown under the terms of the Canada Business Corporations Act.

In September 2016, PSPC awarded a $9.8 million contract to GPEC International for the site’s environmental remediation.

In August 2019, PSPC, the municipality, the Ministère de l'Environnement et de la Lutte contre les changements climatiques (MELCC) and the provincial health authorities committed to undertake a collaborative approach as further analysis was conducted by both PSPC and MELCC to confirm the scope of the airborne contamination.

The first results from PSPC’s further analysis confirmed the presence of airborne contamination at the outer limits of the former foundry. Results of the province’s analysis are expected in the winter of 2020. There is a possible contamination of neighbouring properties, which fall under provincial jurisdiction.

On December 2, 2019, a meeting was held by PSPC, the MELCC, the provincial health authorities and the municipality to inform neighbouring residents of the foundry of the surface contamination at the outer limits of the site. A second meeting with neighbouring residents may be held in winter 2020, following receipt by MELCC of the results of the analysis conducted on the neighbouring properties.

In 2017, after finding surface contamination of dioxins and furans, PSPC informed the provincial ministry responsible for the environment (now the Ministère de l'Environnement et de la Lutte contre les changements climatiques (MELCC)) by providing the results. The MELCC has the authority to regulate environmental issues related to the neighbouring properties.

Decontamination work targeting the former foundry’s work area was completed in March 2019, and land rehabilitation and landscaping of the area was completed in August 2019.The contaminants found on the land are essentially the same contaminants that were found in the ground of the operation area of the old foundry during the decontamination, namely copper, lead, zinc and dioxins and furans.

Lac-Mégantic bypass

The Government of Canada confirmed on May 11, 2018 that it will finance 60% of the construction costs of the Lac-Mégantic railway bypass. The Quebec government will fund the other 40%.

Transport Canada, the lead department for the project, has contracted Public Services and Procurement Canada to acquire properties to construct the railway bypass.

Up to 80 pieces of land, mainly parcels of lots, belonging to 41 different owners located in the towns of Lac-Mégantic, Frontenac and Nantes will have to be acquired for construction to proceed. It is expected that the majority of, if not all, properties will be acquired by way of mutual agreement.

In November 2019, PSPC initiated the assessment of properties affected by the project. The land acquisition process is scheduled from January 2020 to December of 2020.

[Redacted]

Arthur Meighen Building rehabilitation

Public Services and Procurement Canada is leading a major rehabilitation of the Arthur Meighen Building, located at 25/55 St. Clair Avenue East in mid-town Toronto. This project will reduce the building’s greenhouse gas emissions by over 80% through the implementation of sustainability features that include high-efficiency building systems, geothermal heating and cooling system, and photovoltaic panels. Once renovated, the building will accommodate several government departments and agencies, and serve as a flagship model of the government’s commitment to reducing its carbon footprint and as the Government of Canada building (GOCB) in the Ontario Region.

The Arthur Meighen Building renovation project is a major recapitalization of the Government of Canada building located at 25/55 St. Clair Ave. East in mid-town Toronto, with an extensive greening component.

The project is a significant investment in the community and supports the government’s commitment to a 40% reduction below 2005 levels in greenhouse gas emission by 2030. The project is part of PSPC’s workplace renewal initiative, which seeks to leverage all the benefits of an open, modern, and environmentally efficient workplace with new ideas, new technologies, and new ways of working.

The Arthur Meighen Building was built in the 1950s and although the building’s superstructure remains in good condition, the building envelope, mechanical, plumbing and electrical systems are outdated and require updating in order to meet current health, safety and accessibility standards. The renovation project is an opportunity to transform the building into an energy efficient, low carbon asset that will contribute to meeting the government’s goal of reducing greenhouse gas emissions.

The significant sustainability elements of this project will contribute to meeting Canada’s commitments in reducing greenhouse gas emissions. The project will create more than 300 full time construction and consultancy jobs for 4 years while underway. Additionally, once the project is completed, approximately 1,500 federal employees will work in the building and will contribute to the local economy.

Throughout the life of this rehabilitation project and upon its completion, PSPC will work closely with disability networks for universal design and wayfinding.

Allen lands development project

Public Services and Procurement Canada is the real property expert for the Government of Canada. A long-term accommodation strategy within the Greater Toronto Area (GTA) that includes a consolidation, relocation and modernization plan for certain security-centric departments was identified by PSPC. This solution offers operational advantages for the government due to the similar accommodation requirements of the clients (such as other government departments). As well, PSPC has identified existing federally-owned land located at Sheppard Avenue West and Allen Road in the GTA in an area known as the Downsview Lands, as the most appropriate location for the new facility.

As part of this strategy, PSPC will be working with Parc Downsview Park Inc. to advance the building of a new office accommodation facility at the Downsview Lands site in the North West end of Toronto. The property is currently owned by Parc Downsview Park Inc. but will be purchased by PSPC. Ultimately, PSPC will own both the land and the building as part of a long term lease to own arrangement.

The Allen lands development project involves the construction of a new, state-of-the-art, environmentally efficient, 21,500 rentable square metres (rm2) [Redacted].

This project will be a significant financial investment in the community that will create construction jobs and provide meaningful, long-term economic benefits for local businesses. This building will help accomplish the government’s commitment to achieve net-zero emissions by 2050 and the minister’s mandate to power federal buildings with 100% clean electricity. The new building will achieve a carbon neutral level of energy and greenhouse gas performance and will meet the Canada Green Building Council’s (CAGBC’s) Zero Carbon Building Standard and Toronto Green Standard version 3 requirements.

Randle Reef sediment remediation project

The Hamilton Harbour Randle Reef sediment remediation project requires the construction of an engineered containment facility (ECF) and placement of 675,000 m3 of contaminated harbour sediment in the ECF. The remediation of the contaminated sediments will lead to the restoration of Hamilton Harbour and its eventual delisting as a Great Lakes Area of concern under the Canada-US Great Lakes Water Quality Agreement.

Public Services and Procurement Canada is the contracting authority, as well as project manager on the major contracts of this project. Environment and Climate Change Canada (ECCC) is the project lead and is partnering with the Hamilton and Oshawa Port Authority (HOPA), Ontario Ministry of the Environment, Conservation and Parks, local governments and Stelco. ECCC has estimated the project to cost $138.9M, which is being shared between the federal government, provincial government and local partners. ECCC is responsible for the federal government’s $46.3M contribution. The project is being delivered in 3 stages:

The project is underway and currently at the tail end of stage 2 (of 3). It is expected to be completed in 2022. The ECF will form a 6.2 hectare pier that will be owned and maintained by the HOPA.

The Hamilton Harbour Randle Reef sediment remediation project is the remediation of contaminated sediments from the Hamilton Harbour. This project involves building an underwater ECF, over the most contaminated area of the harbour, then dredging and placement of adjacent contaminated sediments into the ECF, and placing a thin layer cap on residual sediments outside the ECF. The ECF will then be dewatered and capped and used as a marine terminal.

The remediation of the contaminated sediments will lead to the restoration of Hamilton Harbour and its eventual delisting as a Great Lakes Area of concern under the Canada-US Great Lakes Water Quality Agreement. Following project completion, the facility will be developed into a marine terminal by the Hamilton and Oshawa Port Authority, generating economic benefits for the local economy.

Projects currently underway in the National Capital Area

Public Services and Procurement Canada provides other federal departments, agencies and the Parliament of Canada with responsive and cost-effective real property services like facilities management, workplace fit-ups, site clean-up and remediation, property valuation services and engineering expertise. The examples below are not exhaustive, but provide an overview of the kinds of projects currently underway in the National Capital Area, the regions and in the context of site remediation.

Place du Portage III

Place du Portage III was built between 1973 and 1978 and forms a major part of the 4 phase Place du Portage complex. It is the headquarters of Public Services and Procurement Canada. The department’s accommodation strategy is to retain and modernize this complex as a cornerstone accommodation holding that assists the government in meeting the federal public servant employment distribution ratio of 75:25 between Ontario and Quebec in the National Capital Area.

The main objective of the Place du Portage III asset and workplace renewal project is to conduct a complete building retrofit inclusive of base building, workplace modernization and information technology (IT) requirements. By increasing the overall performance of the building systems, thereby reducing the operation and maintenance costs for the building, the Place du Portage III asset and workplace renewal project will contribute to the Real Property Services’ goals of ensuring effective and efficient portfolio management and modernization, and greening of operations.

Les Terrasses de la Chaudière

Les Terrasses de la Chaudière complex was built between 1976 and 1978. It is composed of 4 office towers located in downtown Gatineau. The complex accommodates over 6,400 people, as well as retail, daycare and storage space. The department is committed to systematically renewing Les Terrasses complex over the long term. This will include the modernization of the interior space and upgrades to mechanical, electrical, heating and cooling systems, as well as the renewal of the site.

This complex contains the administrative headquarters for various departments including Indigenous Services Canada, CIRNAC, Canadian Heritage, the Canadian Radio and Telecommunications Commission and the Canadian Transportation Agency.

Lester B. Pearson Building

The Lester B. Pearson building located at 125 Sussex Drive in Ottawa was built between 1970 and 1973 to accommodate the then Department of External Affairs, now Global Affairs Canada. The building requires significant recapitalization due to its age; systems are at the end of their useful life and the building no longer meets federal office accommodation standards.

The department’s accommodation strategy is to retain and modernize the building, as it will remain the headquarters and flagship for Global Affairs Canada. The building has been identified to be a greening showcase facility and will support the objective of reaching a carbon neutral portfolio by 2030 with the incorporation of LEED standards, innovative sustainable solutions and the new GCworkplace fit-up standards.

Province House

On October 1, 1974, the Government of Canada, through Parks Canada, signed a memorandum of agreement with the Province of Prince Edward Island to restore, preserve, interpret and administer Province House as a national historic site. The government was given exclusive occupancy of designated areas for 99 years. The complex conservation project for Prince Edward Island’s Province House, known as the birthplace of Canada, is ongoing and will be entering the penultimate phase of construction in 2020. On February 5, 2020, Parks Canada issued a news release announcing an addition of $30 million for the next phase of work. This brings the total project budget to $91.8 million.

Between 1974 and 2015, Parks Canada operated Province House as a national historic site and provided guided tours to the public. At the same time, the facility housed the Legislative Assembly of Prince Edward Island and other provincial government offices. In 2015, the historic building was closed by Parks Canada to begin exterior conservation work. On behalf of Parks Canada, Public Services and Procurement Canada is now managing the conservation project of Prince Edward Island’s Province House.

Canadian High Arctic Research Station

The Canadian High Arctic Research Station (CHARS) is a research facility in Cambridge Bay, Nunavut that provides both national and international scientists with a year-round base for northern science and technology research. The CHARS is the headquarters of Polar Knowledge Canada (POLAR) and its northern science and technology research program. It is comprised of the Main Research Building, the Field and Maintenance Building and 2 triplex accommodation buildings for visiting researchers. Most of the facility is finished, but some systems in the Main Research Building are still being completed.

The department is providing project management and procurement services for the design and construction of the facility to Crown-Indigenous Relations and Northern Affairs Canada who was mandated to build the facility on behalf of the Polar Knowledge Canada’s science and technology program. The facility has an energy-efficient design and LEED gold certification is being pursued.

Sinclair Centre

The Sinclair Centre is a federal property that encompasses 4 buildings over a full city block in downtown Vancouver, BC. It includes the original Post Office building that has been in service since 1905 and is a heritage site.

PSPC is redeveloping Sinclair Centre to be an accessible hub for federal services and federal departments in downtown Vancouver. The project is part of a federal Metro Vancouver Workplace Strategy that aims to optimize the use of Crown-owned space in Vancouver and Surrey, BC. Redevelopment of the Sinclair Centre is the most cost effective solution for federal office space in the downtown core and will provide stability and security for many federal departments, advance greening government priorities, and preserve heritage value. Located close to transit corridors for convenience to the public, the development also aligns with the City of Vancouver’s plan for the area.

[Redacted]

Interprovincial crossings

In this section

Commitment

Public Services and Procurement Canada (PSPC) continues to improve crossings in the National Capital Region (NCR), moving forward with budget 2019 commitments to replace the Alexandra Bridge, addressing the demonstrated need for an additional NCR crossing with a long-term integrated interprovincial crossing plan led by the National Capital Commission (NCC), and investing to rehabilitate and maintain the crossings, including the Chaudière and Macdonald-Cartier bridges.

Key messages

Current status

Long-term integrated interprovincial crossing plan

A long-term integrated interprovincial crossing plan is under development by the NCC in collaboration with the department, the governments of Quebec and Ontario, and the cities of Gatineau and Ottawa. Over the long-term, this plan will consider all means of transportation, including light rail, public transit, vehicles, cyclists and pedestrian requirements.

Sixth crossing

Budget 2019 announced the government’s intent to address the need for an additional NCR crossing by refreshing studies and developing a long-term integrated interprovincial crossing plan led by the NCC with both provincial governments and the cities of Gatineau and Ottawa. The studies refresh is nearing completion and it is expected that the updated information and costs for pre-planning and project execution will be presented for a final project decision.

Background

Custody of the 5 interprovincial crossings in the NCR is divided between PSPC and the National Capital Commission. PSPC operates the Alexandra Bridge, the Chaudière Crossing and the Macdonald-Cartier Bridge, while the National Capital Commission is responsible for the Portage Bridge and Champlain Bridge.

The NCR 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 announced $80.4 million over 10 years to rehabilitate and maintain the Chaudière Crossing, the Alexandra Bridge and the Macdonald-Cartier Bridge. Budget 2019 also made a commitment to replace the Alexandra Bridge, to develop a long-term, integrated interprovincial crossing plan, and to refresh existing studies for an additional NCR crossing (a sixth bridge).

Rehabilitation and repair of existing bridges

There are 6 department-led repair projects identified in budget 2019 to address required repairs on the Alexandra Bridge, Chaudière Crossing, and Macdonald-Cartier Bridge. These repairs are required to safely maintain continued use of these bridges.

Work is underway to update the risk profile of the bridges based on factors such as structural integrity, and health and safety. This work is key to the development of the National Engineering Assets Portfolio Strategy.

Alexandra Bridge replacement

The Alexandra Bridge is more than 100 years old and nearing the end of its lifecycle. The replacement of Alexandra Bridge will increase employment for construction and engineering companies, and Indigenous groups during design and construction. It will not increase the capacity for vehicular traffic, as there will be one vehicular lane in each direction as currently. There is also the possibility to include a dedicated lane for public transit to connect the Gatineau public transit system to the Ottawa light rail transit (LRT). This will be confirmed in March 2020 through a transportation study being led by the NCC with departmental participation.

Because it will be a new bridge, it should be subject to fewer maintenance closures and be more reliable for all users. It will contain enhanced pedestrian and cyclist facilities to benefit active transportation users and provide a better experience for tourists who wish to view the surrounding landscape, such as Parliament Hill.

The next steps are to undertake structural repair projects (structural steel replacement around piers and under the boardwalk) while the department actively plans for its replacement. [Redacted].

Questions and answers

Question 1: Has the government explored the possibility of building a sixth bridge to help reduce traffic congestion on the existing interprovincial crossings?

Answer 1: Budget 2019 announced that the Government of Canada will address the ongoing need for a sixth interprovincial crossing in the NCR.

The Government of Canada will support the NCC, the provincial governments and the cities of Gatineau and Ottawa as they work to refresh existing studies and develop a long-term integrated interprovincial crossing plan that will reduce congestion, improve fluidity and increase transportation options throughout the region.

Public Services and Procurement Canada has awarded a contract to WSP Canada Group Limited to provide a concept design and costing report for a potential new crossing. The value of the contract is $1.2 million and the report is expected in April 2020. The NCC has also awarded a contract to WSP Canada Group to refresh the existing studies.

Question 2: Will the government be replacing the Alexandra Bridge?

Answer 2: Budget 2019 announced that the Government of Canada will replace the aging Alexandra Bridge. The new Alexandra Bridge will provide long-lasting economic benefits to the communities on each side of the Ottawa River and more broadly to the region as a whole.

Question 3: What are the next steps to replace the Alexandra Bridge?

Answer 3: PSPC will undergo planning, environmental assessment activities, design, procurement and construction of a new crossing to replace the Alexandra Bridge which is expected to take 10 years.

Question 4: How will PSPC ensure that the aging Alexandra Bridge remains safe for users until a sixth has been constructed?

Answer 4: The following projects will ensure we maintain a safe passage for all users until a new crossing is available:

Question 5: What is currently planned for the Chaudière Crossing?

Answer 5: Planned projects for the crossing include a major rehabilitation project for the 100 year—old Union Bridge which will take place from July 2020 to October 2021. The project will include deck replacement, structural steel repairs and substructure rehabilitation to extend the life of the structure.

Accessible federal government built environment

In this section

Commitment

As part of the Accessible Canada initiative, Public Services and Procurement Canada (PSPC) has committed to funding accessibility assessments on a portion of its nationwide Crown-owned and leased portfolio. These assessments will lead to a program of work to remove barriers in communities and workplaces.

Key messages

Current status

A phased procurement strategy was developed to ensure that the department is able to deliver on its mandate on a timely and efficient basis.

Phase 1 involved the release of a request for information by the department seeking insight on the maturity and capacity of the industry to provide technical accessibility assessments in a systematic and cost effective manner.

Phase 2 (currently underway) saw the launch of a competitive process by invitation to the Rick Hansen Foundation and requests for information respondents. This will allow the department to test the ‘above and beyond’ framework, consolidate knowledge and best practices on accessibility for the built environment, and address a broad spectrum of disabilities. Assessments began in late summer 2019, and a total of 24 buildings will be assessed this calendar year.

Phase 3 (2020 to 2024): The third phase of the procurement strategy will feature the launch of a procurement tool kit in 2020 for PSPC and other federal custodians to help identify the procurement approach best suited to their needs with respect to accessibility of the built environment. This procurement tool will be defined in consultation with other federal custodians and will result in a comprehensive and consistent assessment of the federal portfolio that will unfold through 2024.

Consultations with the Network of Persons with disabilities allowed Real Property Services to identify a shortlist of 22 high impact / low cost accessibility improvements and will begin implementation of these items this fiscal year and next (2019 to 2020 and 2020 to 2021). Additional funding to undertake accessibility related improvements identified through the technical assessments will be required in the future.

Background

The Accessible Canada Act (Bill C-81) received royal assent on June 21, 2019. This act aims at removing barriers in:

Employment and Social Development Canada (ESDC) is the lead for the accessible Government of Canada agenda under the Accessible Canada Act and, as such, leads policy, legislation and regulations on accessibility and disability for the Government of Canada. Employment and Social Development Canada coordination with other government departments is done through the Interdepartmental Committee on Disability Issues.

The Canadian Accessibility Standards Development Organization, created in August 2019, will develop standards and regulations for compliance.

The Office of Public Service Accessibility at the Treasury Board of Canada Secretariat is responsible for developing an accessibility strategy for the public service of Canada and an implementation plan to help departments and agencies prepare for the act. They are supported by a robust governance structure, which includes a deputy minister advisory group, an external expert advisory group, an assistant deputy minister steering committee and various working groups.

Within PSPC, departmental accessibility activities are coordinated through the department’s Accessibility Office. Real Property Services is the lead for the Accessibility in the Built Environment.

The accessible government built environment initiative

The department received Treasury Board expenditure authority to perform technical accessibility assessments on a portion of its Crown-owned portfolio from 2019 to 2024 in order to establish the accessibility benchmark for the built environment with the new 2018 Canadian Standards Association Code requirements for accessibility. These assessments will identify recommended accessibility improvements, estimated costs to bring the base building elements into compliance and engage with the accessibility community to include the user experience. These assessments will strive to define ‘above and beyond’ elements to ensure an accessible user experience and foster inclusion throughout federal buildings.

Central to the accessible government built environment initiative is consultation with networks and organizations representing various disability groups, and collaboration among federal departments. Key stakeholders from the private sector that have been involved in defining the ‘above and beyond’ criteria are:

Questions and answers

Question 1: What is PSPC doing to improve accessibility and remove barriers into communities and workplaces under federal jurisdiction?

Answer 1: The Accessible Canada Act on June 20, 2018 aims to remove barriers for all Canadians who want to access and work in federal buildings.

As a common service provider, PSPC is conducting technical accessibility assessments of a portion of its Crown-owned real property portfolio over fiscal years 2019 to 2020 to 2023 to 2024 in order to identify improvements, including estimated costs. The goal is to exceed new accessibility requirements and putting people at the heart of the built environment.

Public Services and Procurement Canada is also consulting with the Network of Persons with disabilities and third-party organizations that represent disability communities to identify any additional elements that should be considered alongside these technical requirements.

Reducing federal greenhouse gas emissions

In this section

Commitment

In line with the Minister of Public Services and Procurement mandate, Public Services and Procurement Canada (PSPC) is committed to fighting climate change by greening its own operations through practices that support the Government of Canada’s economic policy goals, including green procurement.

Key messages

Current status

As of fiscal year 2018 to 2019, the department has reduced its operational emissions by 54%, surpassing the Federal Sustainable Development Strategy 2030 target. Due to the initiatives described below, the department is also on its way to achieving its goal of a carbon-neutral portfolio for its Crown-owned assets.

Background

The Federal Sustainable Development Strategy presents the Government of Canada's sustainable development goals and targets, as required by the Federal Sustainable Development Act.

In keeping with the objectives of the act, the department supports reaching goals laid out in the strategy through the activities described in its Departmental Sustainable Development Strategy.

The Federal Sustainable Development Strategy set a target of a 40% reduction. To achieve its goal of a carbon-neutral portfolio, the department prepared a national carbon neutral portfolio plan in March 2017 and an associated asset level implementation tool in 2019. The plan prioritizes:

The implementation tool allows the department to be more strategic in achieving a carbon neutral portfolio. It provides the department with environmental benefit realization information for all projects within the portfolio that affect energy consumption and greenhouse gas emissions. The implementation tool also provides life cycle costing financial information. Because of this, the department now has the capability to prioritize greening investments based on financial and environmental rating criteria. When used in conjunction with the National Office Portfolio Strategy, greening investment decision making is more strategic and allows the department to concentrate our resources (people and funding) where best value is available.

The department can achieve greenhouse gas emission reductions of 90% solely by investing in its assets, without resorting to the procurement of renewable energy through power purchase agreements. The remaining 10% greenhouse gas emissions will be achieved via procurement tools; for example renewable energy certificates and the development of power purchase agreements for clean, renewable energy.

Under this plan, the department recently launched a roadmap to low carbon federal operations in the National Capital Area with participation from over a dozen other federal government departments that have custodian responsibilities for real property. The roadmap will identify short, medium and long-term actions that will reduce the carbon impact of federal operations and provide leadership in decarbonizing the National Capital Area in ways that can be replicated across Canada.

The department also developed a greenhouse gas emissions options analysis that is applied to all projects that affect energy consumption and greenhouse gas emissions. The greenhouse gas emissions options analysis facilitates the incorporation of greenhouse gas emission reduction into investment decisions at the project level. The 25 St. Clair recapitalization project in Toronto was the first large-scale project to use the project greenhouse gas options analysis methodology. It is expected that recapitalization will reduce the building’s greenhouse gas emissions by more than 80%.

Other key elements of the department’s carbon neutral portfolio plan include leveraging smart building technology and the Energy Services Acquisition Program. The program will modernize the current network of heating and cooling plants and the associated distribution piping to increase energy efficiency (described in more detail in a separate section).

Questions and answers

Question 1: How much will green projects cost taxpayers or how it will affect them?

Answer 1: By considering greenhouse gas (GHG) impacts early-on in the project, we are able to make building improvements at no—or very little—extra cost when considering the life cycle cost over 25 years. Upfront investment reduces operation, maintenance and utility costs.

Question 2: What is PSPC doing to meet the Government’s target of GHG reductions?

Answer 2: PSPC efforts have already yielded results. To date, PSPC has exceeded the 2016 to 2019 Federal Sustainable Development Strategy reduction target of 40%, having achieved and reported a 54% reduction in GHG emissions in 2019.

Public Services and Procurement Canada will lead by example through initiatives such as:

Energy Services Acquisition Program

Commitment

On June 4, 2019, the Government of Canada announced that it is entering into a contract with a public—private partner (P3) for the modernization of the district energy system in the National Capital Region (NCR).

Key messages

Current status

The public—private partnership contract with Innovate Energy was finalized in May 2019. On April 1, 2020, it will take over operation and maintenance of the existing system and deliver a modernized system by the end of October 2025. Innovate Energy will operate and maintain the modernized district energy system until October 2055.

Background

In the NCR, 80 buildings, including the Parliament buildings, are on the district energy system that connects to central plants using over 14 kilometres of underground piping to provide heating by steam and cooling by chilled water. This system was built between 50 and 100 years ago. The infrastructure is reaching the end of its service life and it uses outdated technology that is inefficient and expensive to maintain.

The department supports reaching goals laid out in the Federal Sustainable Development Strategy. The department’s national carbon neutral portfolio plan prioritizes reducing greenhouse gas emissions and improving the energy performance of its assets. Modernizing the outdated district energy system is a key part of this plan.

The Energy Services Acquisition Program (ESAP) includes the energy services modernization project, which will modernize the district energy system in the NCR. The project will involve the conversion of the system to use low—temperature hot water for heating and to electric chillers for cooling. The investment in modern technology will result in an estimated cost avoidance of more than $500 million over the next 35 years.

Budget 2016 provided the funding required to complete the project. It will be delivered as a public—private partnership with Innovate Energy to replace the current infrastructure and to operate and maintain the system over a 35year period. The department will retain ownership of all these assets throughout the term of the contract.

Modernization will increase safety, efficiency, reliability and environmental performance, resulting in a reduction of operating costs and an estimated reduction in greenhouse gas emissions of approximately 33%. Future activities will move towards “deeper greening” by replacing natural gas with carbon neutral fuels for baseload operation, a move that has the potential to reduce total emissions by 90% by 2030.

In addition to the modernization of the plants, the ESAP is undertaking the 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 through the User Building Conversion Plan. The ESAP is responsible for delivering building conversions through various delivery mechanisms; however, the conversion of connected user buildings is not part of the public—private partnership contract. The expected completion date of all building conversions is the end of September 2024. This will ensure all buildings are ready for connection to the modernized district energy system.

Questions and answers

Question 1: When was funding for ESAP announced?

Answer 1: In budget 2016, the government announced it would invest up to $2.1 billion towards repairs and retrofits to its wide range of properties and buildings, as well as the greening of government operations. Examples included funding to improve military housing, upgrade border infrastructure, modernize the generation of energy for marine communication and traffic services, and reduce the carbon footprint and energy consumption of federal buildings in the NCR, known as the ESAP.

Question 2: What is the purpose of the ESAP?

Answer 2: The Government of Canada is transforming how it heats 80 buildings and cools 67 buildings in the NCR through the ESAP. This transformation will help us reduce greenhouse gas emissions and further green our own operations.

We have signed a contract with a public—private partner (P3), Innovate Energy, to design, build and finance the modernization, to be complete in 2025, and to operate and maintain the system from 2020 to 2055. The Government of Canada will retain the ownership of all of the heating and cooling assets.

Question 3: What are the details of the public-private partnership included in the program?

Answer 3: We are not privatizing the heating and cooling plants or the distribution network, otherwise known as the district energy system. In fact we are retaining these assets. We are outsourcing the modernization, operation and maintenance of the system. Presently, 2 out of the 5 Public Services and Procurement Canada (PSPC) plants are already operated by private sector operators—Tunney’s Pasture and the National Printing Bureau. A sixth plant, servicing an RCMP campus, is also operated by the private sector but it is scheduled to be decommissioned.

The private sector operator will be subject to our health and safety regulations and standards once they take over operations. In addition, the contract will include provisions to hold the private sector operator accountable to performance standards.

We will be retaining control of the process including monitoring of all of our assets. As a result, physical security will not be impacted. Furthermore, the private partner will be subject to the same security requirements and will need to obtain proper security clearances.

Question 4: How many jobs will it affect by privatizing the maintenance of the system?

Answer 4: There are approximately 35 heating plant operators in the 3 plants currently operated by PSPC—Cliff, Confederation Heights, and the National Research Council Plant on Sussex Drive. The union for employees in the heating and cooling plants was consulted before the release of the request for proposals in 2017. More than half of these employees are eligible to retire and the Government of Canada will support all employees through their transition to new roles emerging within the service management areas.

Question 5: What is the impact on these employees and what information have they received?

Answer 5: PSPC met with every Central Heating and Cooling Plant (CHCP) employee individually to discuss career aspirations in the fall of 2018. Human resources are currently conducting an analysis to seek potential opportunities where CHCP staff can transfer their competencies into a new job. The next step will be to provide job shadowing opportunities to all employees interested for future employment opportunities after the P3 partner takes over operations of the final 4 CHCPs (2 are currently operated by the private sector).

Question 6: The union has asked that the Workforce Adjustment (WFA) Committee begin holding regular meetings. Has this process been initiated?

Answer 6: Utilities Management Services (UMS), the group that includes the plant employees, and their local and national unions, has been engaged in the ongoing planning of the project since 2009

A Joint Workforce Management Committee was established in May 2019 and will continue to meet until at least March 2020, when the system operation is formally handed over to the private sector operator

Answer 7: All modern district energy systems use low temperature hot water. This technology is being used in the modern buildings worldwide including in downtown Ottawa. The low temperature hot water that will be used after modernization is much safer than steam. The modernized system will operate at 70 to 90° Celsius and at a far lower pressure. Unlike steam, which is a compressed gas, hot water can spill but does not explode, and a breach in the new system can be quickly isolated and repaired.

Question 7: How do you respond to the union’s allegations that this new system will be more dangerous to operate?

Question 8: Unions have also claimed that moving to this new system would greatly complicate routine repairs or upgrades and require dumping out millions of gallons of water that are chemically treated (to prevent corrosion) into the Ottawa River. How do you respond to these concerns?

Answer 8: The modernized system will use new equipment and modern monitoring technology which will make routine repairs much easier. The new system will have isolation valves that allow for faster repairs.

Water from the modernized system will not be released into the Ottawa River. Drainage of the system will be limited to less than 3,000 litres (800 gallons) of treated water, which will be released into the City of Ottawa’s sewage system at levels well within legal limits and consistent with industry practice. This will make the new system less costly to maintain and environmentally less risky than the current steam system.

Question 9: What savings are expected as a result of this program (maintenance privatization, as well as the heating costs)? How much are emissions expected to be reduced?

Answer 9: The ESAP is targeting a reduction of 33% in greenhouse gas emissions, which would bring residual greenhouse gas emissions to approximately 43 kilotons per year. We are anticipating the savings to be approximately $500 million over the project life when compared to the current operation.

Question 10: What are the next steps in the procurement process?

Answer 10: On June 4, 2019 the government announced the partnership with Innovate Energy for the design and construction of the new system, to be completed by 2025, as well as additional funding for ongoing maintenance and operation. The contract is valued at $1.1 billion.

In June 2019, the department’s ESAP signed an agreement with Innovate Energy for the modernization of the district energy system in the NCR. The public private partnership will design, build, operate and maintain the district energy system, with construction to be completed in 2025.

The department retains the assets and is responsible for preparing each building for connection to the system, a program referred to as the User Building Conversion Plan. After construction completion, Innovate Energy is contracted to operate and maintain the district energy system until 2055.

Clean power commitment for federal buildings

In this section

Commitment

In line with the mandate, the minister of Public Services and Procurement working with the provinces and energy suppliers, develop a strategy to power federal buildings with 100% clean electricity, where available, by 2022. Public Services and Procurement Canada (PSPC) is also committing to being a first purchaser to help support the growth of new clean electricity/renewable power sources as they become available.

Key messages

Current status

Public Services and Procurement Canada (the Real Property Services Branch in collaboration with Western and Atlantic regions) is collaborating with the Treasury Board of Canada Secretariat’s Centre for Greening Government and the Department of National Defence on a national strategy to meet this Government of Canada commitment.

Background

As part of the 2016 Pan-Canadian Framework of Clean Growth and Climate Change, the federal government set a goal of using 100% clean power by 2025. During the 2019 election campaign the government committed to accelerating this timeframe to 2022. PSPC’s technical and procurement expertise will be a key enabler for this initiative.

Clean power is defined as electricity that is produced from non-greenhouse gas emitting energy sources. In Canada, the majority of clean electricity, provided by utilities, comes from hydro-electric, nuclear, wind, and solar power generation.

Public Services and Procurement Canada is evaluating the best approach to putting in place power purchase agreements to satisfy Government of Canada requirements for clean electricity. The power purchase agreements will require the construction of new non-greenhouse gas emitting electricity production.

The cost for clean power will be dependent on the approach that PSPC takes to establishing the power purchase agreements and capacity of the industry.

Questions and answers

Question 1: What will be the costs associated with the government’s commitment to implementing clean power by 2025?

Answer 1: The cost for clean power will depend on the approach that PSPC takes to establish power purchase agreements and capacity of the industry.

Question 2: How much of the power consumed by the Government of Canada currently comes from clean sources?

Answer 2: Currently, 80% of power consumed by the Government of Canada comes from clean sources supplied by the provincial and territorial utility grids.

Document navigation for "Standing Committee on Government Operations and Estimates: March 12, 2020"

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