Feasibility Report

<Project Name>
<Location (if applicable)>
<Client>
National Project Management System
Feasibility Phase
Prepared by:
Date:
File name / EDRM# : 226533435.doc
Last revised: December 4! 2""
Table of Contents
1.0 Executive Summary...........................................................................................3
2.0 Problem/Opportunity Definition........................................................................3
3.0 Project Scope....................................................................................................4
4.0 !entification an! "naly#i# of Option#...............................................................$
4.1Options Considered......................................................................................5
4.2Analysis of Non-Financial Factors...................................................................7
Ea!ple of E"al#ation $atri for %#alitati"e Analysis........................&
4.'Ris( Assess!ent of Options...........................................................................)
Ea!ple of E"al#ation $atri for Ris( Assess!ent..........................1*
$.0 %ecommen!e! Option# for &urt'er "naly#i#....................................................11
(.0"pproval#/Si)nature#......................................................................................11
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Feasibility Reports -#idelines
The Feasibility Report (FR) presents the project parameters and defines the potential
solutions to the defined problem, need or opportunity. It expands on each of these
potential solutions, providing sufficient detail and nonfinancial evaluations to permit
the project leader to recommend to the approving authority all viable potential solutions
that should be further analy!ed in the next phase (Investment "nalysis Report #I"R$).
Further, for those options %hich are considered feasible, (based upon the nonfinancial
evaluations), indicative (&lass ') cost estimates should be prepared and their estimated
duration should be determined as input to the financial analysis of options to be carried
out in the "nalysis phase. The FR should also justify %hy any potential solutions %ere
considered to be nonviable or considered to be noncompliant %ith government policy
and(or project objectives and therefore not considered further.
)hen technical studies (Investigation and Report) have been conducted, they should be
used as input to the preparation of the FR.
As defined in the *+,- 'irective for Real +roperty +rojects, in some cases, a separate
FR is not re.uired as the I"R contains a sufficient feasibility assessment.
1.0 Executive Summary
Purpose:
The purpose of the Executive Summary is to provide a very brief overview of the most essential
and decision-relevant information concerning the project.
Suggested Content:
1. Clearly state the problemopportunity being assessed.
2. !dentify any special issues that may need to be brought to the attention of "eal #roperty
!nvestment $oard %or respective "egional !nvestment $oards&. 'ention should be made of
any implications on the client%s& or other sta(eholders.
3. )ist recommended options for analysis.
2.0 Problem/Opportunity Definition
Purpose:
The purpose of this section is to describe the problem or opportunity being addressed as defined
in the project*s Statement of "e+uirement. $riefly identify the main problem or (ey issue that the
proposed project is see(ing to address. This could be asset related or space related.
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3.0 Project Scope
Purpose:
The purpose of this section is to fully describe the (ey re+uirements of the project. !t should
provide pertinent details regarding the context for underta(ing the proposed project. !f
information re+uired to prepare this section of the ," come from the Statement of "e+uirements
%So"& or #reliminary #roject #lan %###&- it should be referred to- and the (ey content
summari.ed. Supporting details that are found in the So" or ### do not need to be replicated in
the ,".
Suggested Content:
"SSE* +"SED P%O,E-*S
This section will describe the major asset re+uirements of the proposed project.
1. #rovide a description of the asset. !t is generally appropriate to provide the details of the asset
description in an appendix- with only a general overview and the most significant points
included in the text of the ,". Elements of the asset description may include/
the age- area and other main characteristics of the asset0
the number of occupants affected by the problem0
the nature of any recent renovations that have been underta(en %may be presented
in an appendix&0
detailed information regarding the features of the asset relevant to the project
being proposed0
whether the property has a heritage designation or whether it is subject to other
conservation initiatives. A designation by the ,1$"2 is the most pertinent designation
for #34SC assets0
who the asset is being managed by if this has any implications for the project.
2. !nclude a statement as to the overall condition of the asset and its main systems- including
any limitations it may have. !dentify upcoming project re+uirements for the asset- other than
those associated with the current project.
This information shall be summari.ed from the Asset 'anagement #lan %A'#&- the $uilding
'anagement #lan %$'#&- the $uilding Condition "eport %$C"&- and other relevant
documents. 'ost of the information in this section may be presented in an appendix- with the
main points referred to in the text of the ,".
3. $riefly discuss the operational- financial- and functional performance of the asset- and
whether performance targets for the asset are being met. !dentify any operational- financial or
functional performance issues which may be relevant to the project. This information can be
summari.ed from the A'#.
4. !dentify any future plans pertaining to the use of the asset. This may include information on
the remaining useful life of the asset- or how long #34SC may be planning to (eep the asset
%refer to A'#&.
5. !dentify any strategic considerations of relevance to this project. $riefly discuss how the
continued utili.ation of the subject property conforms to regional or local accommodation
strategies. These strategies may be identified in a Community-$ased !nvestment Strategy
%C$!S&- or they may be referred to in the A'#.
6. "eference any related documents that report the problem- need or opportunity.
7. 5escribe health and safety issues and any potential impacts on clients or tenants
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SP"-E +"SED P%O,E-*S
This section will describe the major clients re+uirements of the proposed project.
6ote/ !f it is a portfolio ac+uisition- then the potential client department and re+uirements should
be identified.
1. #resent the client*s re+uirements in terms of/
the existing amount of space occupied %where relevant&0 and
number of employees andor full-time e+uivalent %,TEs& as validated by the
client.
2. !dentify the type of space re+uired0 the date by which the space is re+uired0 and for how long
the space is re+uired- and if (nown- within the context of the all relevant client demand. for
this location. !dentify any special considerations that relate to either the client*s re+uirements
or the nature of the assets. Examples of this may include a client*s re+uirements for a specific
location or type of location- the enhanced security re+uirements of a highly sensitive
department- or the special re+uirements posed by a heritage building. Summary information
should be provided as to why these special re+uirements exist.
3. Consistency with Accommodation #lan.
4. 5escribe any occupancy commitments that may have been made by the client. The analyst
should identify the term of this commitment and discuss what is li(ely to happen after the
commitment expires.
5. #otential for non-compliance with space fit-up standards.
6. #roject drivers i.e.-
6ew client program0
Client space modifications %expansion- reduction- changed use of space-
consolidation&0
Timing 7 duration of occupancy.
7. !f applicable- identify potential future demand from other federal government departments
that is relevant to this project.
Tips on writing this section:
There will li(ely be much detailed information associated with this section of the ,". The project
team should present numeric information in the form of tables andor appendices- as much as
possible.
References:
"eal #roperty !nvestment 4uide- Section 8.9- 5efine Client 6eeds.
Client 5epartment Sustainable 5evelopment Strategy %current&.
4.0 !entification an! "naly#i# of Option#
Purpose:
The purpose of this section is to list and analy.e all available options for meeting the identified
project re+uirements- and to document the results of the feasibility assessment of each of the
options. 5ocumentation will include the rationale to support viable options %to be analy.ed in the
next phase- within the !A"& and the justification to screen-out non-viable options.
4.1 Options Considered
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Suggested Content:
1. !dentify and describe all reasonable options for satisfying the project re+uirements. At this
stage- it is preferable to identify a greater number of options and then rule them out- rather
than focusing too early on only a very limited number of options.
Asset based projects options could be/
"epairs- retrofit- renovation- conservation
5emolish and rebuild
5ispose and demolish- buy and adapt
Sell
Space based projects options could be/
:acant crown inventory
)ease tender call for existing space
"enewal in-situ
$uild-to-lease
)ease-purchase
Crown-construction
Ac+uisition of an existing building
#ublic-#rivate-#artnership %a #; screening tool is being developed for larger
project&
Space optimi.ation of existing space
2. !dentify those options which are to be carried forward for in-depth analysis- and those options
which are clearly not practical and which will be eliminated from further consideration.
$riefly state why the eliminated options are not being considered for further analysis.
3. The ," should include a $ase Case %status +uo& scenario. The $ase Case should form part of
the in-depth analysis as it is usually the fallbac( position if the recommended project is not
approved.
4. !n preparing this section- ensure that all reasonable options for providing accommodation
have been explored.
5. The feasible options that will be analy.ed need to be developed and their estimated duration
must be determined. The feasible options must also include indicative %Class 5& cost
estimates for construction- leasing- and fit up. This will help establishing life-cycle costs in
the next phase %within the !A"&. The project duration could include the following 6#'S and
project milestones/
So" approval date
### approval date
," approval date
#reliminary #roject Approval %##A& or )ease #roject Approval %)#A& date
"e+uest for !nformation date
"e+uest for <ualification date
"e+uest for #roposal date
Effective #roject Approval %E#A& date
6egotiations commencement date
)ease Contract Authority %)ease Contract Award date&
$ase $uilding construction start date
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,it-up design commencement date
,it-up construction commencement date
#roduct Turn-over date
'oving commencement date
!ndicative estimates could be provided for/
,it-up cost
$ase building construction cost
6et rental rates
2perating = 'aintenance cost
Taxes
)and cost
The main features of each option should be summari.ed in text or tabular form with
supporting details in an appendix %e.g. Cost "eport Template&. !t is important to identify the
(ey assumptions made and the level of ris( associated with the estimates provided. 2f note-
the indicative cost estimates should only be provided for the feasible options. 1owever- the
milestone list is re+uired for all the options assessed in the ,easibility "eport as it will be
used to determine if each option is responsive to identified timing re+uirement %please see
section 8.>&.
6. Ensure that the options reflect the re+uirements of #34SC*s Sustainable 5evelopment
Strategy.
4.2 Analysis of Non-Financial Factors
The analysis of non-financial factors is intended to ensure that all +ualitative factors that
contribute to providing value to the federal government are ta(en into account in the investment
analysis.
Suggested Content:
Provide the following information for each of the possible options:
1. !dentify all non-financial factors which may have a bearing on the selection of the preferred
options and focus on decisions that are implicit- leading up to the ##A)#A. Some of the
factors which may be considered include/
1ow well each option satisfies the identified client re+uirements. !f there are any
locational or utili.ation advantages for the client associated with certain options.
The extent to which each option is responsive to identified timing re+uirements.
5ifferences between the options with respect to various policy and regulatory
re+uirements such as for health- safety- sustainability- accessibility- contribution to the
community- and federal presence.
The degree to which the option supports heritage conservation- Treasury /oard0s
1eritage /uildings +olicy and the 4ood 6eighbour #olicy.
A +ualitative analysis of positive or negative impact of environmental factors for each
option.
The extent to which each option supports the goals and objectives of the #34SC
Sustainable 5evelopment Strategy %S5S&. !dentify any major differences between the
options in terms of their ability to meet S5S objectives.
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2. The use of an evaluation matrix can help to ensure that all feasible options are considered in
an organi.ed- consistent and methodical manner- and are evaluated against all relevant non-
financial factors. This will help in formulating a justifiable recommendation that reflects all
important criteria.
The evaluation matrix consists of a list of relevant factors- along with weightings that reflect
their relative significance. ,or each factor- a rating is applied that indicates the li(ely
performance of an individual option with respect to that one factor. 'ultiplying the
established weight times the score for each factor gives a weighted score. The sum of these
weighted scores gives a non-financial evaluation score for an individual option. The scores of
the various options can then be compared with the preferred option %with respect to
+ualitative factors& being the option with the highest score.
Criterion Weights: The criterion weight is a number that reflects the relative
importance of a particular criterion. Each criterion is assigned a percentage weight- so
that the weights add up to 9??@ for the full set of criteria. !n assigning criterion weights-
the analyst considers the identified criteria and determines which are primary criteria for
the particular investment situation- and which are secondary criteria. The difference in the
weights for the criteria should not be so large as to negate the importance of all but the
top weighted criterion.
Factor Rating Scales: !n order to compare the options- a rating scale is used to
transform +ualitative observations into a numerical value. !n this approach- each criterion
has a scale of ? %lowest& to A %highest&. A rating of A would indicate that the option is
highly responsive with respect to the factor- and the option enables objectives associated
with the factor to be met. A rating of ? would indicate that the option does not provide
any material benefit with respect to the factor. The analyst uses the highest applicable
rating- based on a combination of analysis and professional judgement. "atings are often
substantiated by a statement of supporting evidence.
The evaluation framewor( can assist the analyst in ma(ing appropriate trade-offs between the
benefits provided by different options- and arriving at a recommended approach which
provides the greatest overall utility. The following example illustrates the layout of an
evaluation matrix.
Example of Evaluation Matrix for Qualitative Analysis
Non-Financial
Factor
Weight
Option 1 Option 2 Option 3
Rating Score Rating Score Rating Score
Factor 1 30 4 120 3 90 4 120
Factor 2 25 2 50 5 125 4 100
Factor 3 20 4 80 2 40 3 60
Factor 4 15 5 75 1 15 4 60
Factor 5 10 2 20 3 30 3 30
otal Score 100 345 300 370
3. 5escribe the results of the analysis- including the rationale behind the ratings and weighting
factors that were applied- and the conclusions that were reached. 5etails of the analysis may
be included as an appendix.
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4.' Ris( Assess!ent of Options
The purpose of this section is to identify the (ey ris( factors associated with each of the options
being considered in this ,easibility "eport.
*2T34 " more substantive ris5 assessment %ill be conducted for the I"R. For
the Feasibility Report, identify the results of the preliminary ris5 assessment of
each option in terms of scope, time, cost or other considerations surrounding the
problem(opportunity such as environment, infrastructure, technical, political,
legal, organi!ational and ( or social factors. The latter considerations may be
derived from assumptions and constraints discussed in the +reliminary +roject
+lan, and %ill pertain to the project being able to attain the project objectives
9. The first step is to identify the ris( factors that could be relevant for each of the options being
analysed.
>. 3hile the relevant ris( factors will be different for each investment situation- some ris(
factors that may be considered include/
"is( that the project may not fully rectify an identified problem
"is( of user needs not being met
"is( of changing re+uirements
"is( that forecast demand fails to develop
"is( of not meeting timing re+uirements
"is( of cost overruns
"is( of future performance being impaired
"is( of environmental degradation
;. 2nce the ris( factors have been identified- it is necessary to evaluate the relative level of ris(
associated with each of the options. A suggested approach for underta(ing this assessment is
provided below. 1owever- other methodologies may be employed.
!t may be usefull to ta(e the following actions during this step/
!dentify all sources of ris( associated with each option under consideration.
Bnderta(e a ris( assessment for each element of ris( for each option. The ris( assessment
is a product of the li(elihood times the severity of the impact- as indicated below.
:ery 1igh "is( %9?& 1igh impact and high li(elihood
1igh "is( %A& 1igh impact and medium li(elihood- or
'edium impact and high li(elihood
'edium-1igh "is( %;& 'edium impact and medium li(elihood
'edium "is( %>& )ow impact and high li(elihood- or
1igh impact and low li(elihood
)ow "is( %9& )ow impact and medium li(elihood- or
'edium impact and low li(elihood
:ery )ow "is( %?& )ow impact and low li(elihood
Evaluate the overall level of ris( associated with each option. This can be done using an
evaluation matrix. The matrix identifies each ris( element as a row in the matrix- and
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each option as a column. Each cell in the matrix can then be used to identify the
li(elihood and impact of the individual ris( element impacting a particular option- and
assigning a score to this ris(. The intent is to determine the relative levels of ris( among
the options being evaluated.
Example of Evaluation Matrix for Risk Assessment
"is(
,actor
2ption 9 2ption > 2ption ;
"is( Score "is( Score "is( Score
,actor 9 1igh A 'edium > 'edium >
,actor > 'edium > )ow 9 'edium >
,actor ; )ow 9 :ery )ow ? )ow 9
,actor 8 :ery )ow ? 1igh A )ow 9
,actor A 'edium > 1igh A )ow 9
Total Score 9? 9; C
8. 5escribe the results of the ris( assessment and the conclusions that were reached. 3hich
option carries the lowest level of ris(D 5o any of the options carry an unacceptably high level
of ris(D The ris( assessment will be used to develop a "is( 'anagement #lan in the !A" for
the recommended options.
Tips on writing this section:
The results of the feasibility assessment should be presented in tables %rather than in text&- with
observations and conclusions discussed in the text- where possible. !t is recommended to obtain
guidance on this section from the respective Centers of Expertise. !t is important to identify the
(ey assumptions made.
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References: The following is not an exhaustive list as there are numerous policies- procedures
etc.- that can be referenced and all play a part in determining appropriate options to be considered
in the !A".
!nvestment Analysis #olicy
#34SC Sustainable 5evelopment Strategy
"eal #roperty $ranch "is( 'anagement 'anual
!ntegrated "is( 'anagement #olicy. 6ovember >?9?
#34SC 6ational #roject 'anagement System Enowledge Area"is(
$.0 %ecommen!e! Option# for &urt'er "naly#i#
The intent of this section is to combine the results of all of the analyses that were underta(en.
Consider the results of the assessment of non-financial factors and ris( assessment together.
Summari.e the (ey findings of the 2ption "an(ing. !dentify which options are recommended for
further analysis %including financial analysis& during the Analysis phase in preparation of the
!A".
(.0 "pproval#/Si)nature#
+repared by0
.i1nat#re
+lease print0
Na!e +osition 2ate
Appro"ed by0
.i1nat#re
+lease print0
Na!e +osition 2ate
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