Government of Canada awards major contract to renovate landmark federal building

News release

This contract has been re-awarded. Please consult our statement for more information.

February 17, 2023 - Charlottetown, Prince Edward Island - Public Services and Procurement Canada

Modernization of Daniel J. MacDonald Building will extend lifecycle of Veterans Affairs Canada national headquarters in Charlottetown

The Government of Canada is providing a modern, sustainable and efficient workplace for Veterans Affairs Canada (VAC) to continue to deliver important services and programs to Veterans and their families.  

Today, the Honourable Lawrence MacAulay, Minister of Veterans Affairs and Associate Minister of National Defence, on behalf of the Honourable Helena Jaczek, Minister of Public Services and Procurement, announced that the Government of Canada has awarded a contract worth more than $98 million (including taxes) to EllisDon Corporation for renovations to the Daniel J. MacDonald Building in Charlottetown, Prince Edward Island. The building serves as the national VAC headquarters and also houses the Veterans Review and Appeal Board. 

Work under this contract includes architectural upgrades to meet the latest accessibility and sustainability standards, such as widening doors and corridors for wheelchairs, and upgrading energy and sustainability in heating, ventilation, air conditioning and electrical systems to reduce greenhouse gas emissions. The interior office space will also incorporate GCworkplace standards for a modern workforce for the new public service, and be accessible, flexible and agile to better meet operational requirements. This will help support productivity and wellness for approximately 900 employees.

Modernizing the building will contribute to environmental performance goals for the Government of Canada’s real property portfolio by targeting net-zero carbon greenhouse gas emissions, as part of the Federal Sustainable Development Strategy announced in March 2022.

The renovations will also include a public museum space displaying heritage artifacts and educational information about the incredible contributions Veterans have made to Canada’s growth as a nation.

It is anticipated that the construction will create work opportunities for local subcontractors and will sustain good paying jobs locally. The modernization project will also include an Indigenous Participation Plan that will see 10% of all subcontracts awarded to Indigenous businesses, as well as 1% of the contract value for skill and capacity building. 


“The Government of Canada is taking concrete action to modernize and green our portfolio. This project will reduce our carbon footprint while providing Veterans Affairs Canada with a modern facility to continue to deliver important services to Veterans and their families.”

The Honourable Helena Jaczek
Minister of Public Services and Procurement 

“This investment confirms the long-term presence of Veterans Affairs Canada here in Prince Edward Island, and is proof of our commitment to the province, federal employees and above all, the Veterans we serve and their families. Modernizing the Daniel J. MacDonald Building will breathe new life into Charlottetown’s downtown area, and enable our dedicated employees to better serve Veterans, former Royal Canadian Mounted Police members, their families and their caregivers in a modern, safe and efficient environment.” 

The Honourable Lawrence MacAulay
Minister of Veterans Affairs and Associate Minister of National Defence 

“Veterans and their families have contributed to safeguarding and keeping the very foundation of Canada strong and secure. This initiative will help make the Daniel J. MacDonald Building, which serves as the national headquarters for Veterans Affairs Canada, more accessible and modern, providing barrier-free access for both visitors and occupants. Our government is committed to ensuring that Veterans, their families and their caregivers have access to high-quality services and programs, and this funding initiative will do just that.”

Sean Casey
Member of Parliament for Charlottetown

Quick facts

  • Construction is expected to begin in March 2023 and be completed in the spring of 2026.

  • Public Services and Procurement Canada is managing the modernization project and budget associated with the work. The project does not impact funding available to VAC to provide services to Veterans and their families. 

  • Public Services and Procurement Canada has acquired temporary office space in the Charlottetown area to accommodate employees while construction activities are underway at the Daniel J. MacDonald Building. As well, VAC employees have access to telework and other VAC offices in Charlottetown.

  • Renovations to the building will aim to achieve a Fitwel level 1 certification and 3 Green Globes through the Green Building Initiative

Associated links


Olivier Pilon
Press Secretary
Office of the Honourable Helena Jaczek

Erika Lashbrook Knutson
Press Secretary
Office of the Honourable Lawrence MacAulay

Media Relations
Public Services and Procurement Canada

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