IAR Template for Space Projects
Investment Analysis Report
(for Space Projects)
<Project Name>
<Location (if applicable)>
<Client>
National Project Management System
Analysis Phase
Version: March 2017
Prepared by:
Date:
Lease number:
SIGMA project or internal order number:
Table of Contents
Executive Summary 2
1. Problem/Opportunity Definition 6
2. Background 6
2.1 Project History 6
2.2 Building Condition 7
2.3 Tenant Considerations 7
2.4 Strategic Context 8
2.5 Stakeholders 8
3. Project Scope 8
4. Identification & Analysis of Options 9
4.1 Options Considered 9
4.2 Non Feasible Options 9
4.3 Feasible Options 9
4.4 Financial Analysis 9
4.5 Analysis of Non-Financial Factors 11
4.6 Risk Assessment 12
4.7 Conclusions 12
5. Strategic Impact 13
6. Recommendation 13
7. Approval Authority and Funding 13
8. Implementation Plan 14
9. Project Team & Signatures 15
10. Appendices 15
Appendix 1 – Financial Assumptions Summary Table 16
[Upon completion of editing, update Table of Contents as follows: Right click on grey area of table, select ‘update field’, choose ‘update entire table’, then press the ‘OK’ button. Page numbers will be automatically updated.]
This template serves as a helpful tool for preparing an IAR. It does not replace the “Guide for the Preparation of Investment Analysis Reports”. The template has been approved by National Portfolio Management and the 2009 Guide is currently in the process of being updated.
Executive Summary
The purpose of the revised Executive Summary is to provide a brief overview of the most essential and relevant information concerning the project for decision-makers. This summary will replace the Integrated Investment Plan (IIP) Project Summary and should be written in a narrative sense, as opposed to using bullet points.
Project Description:
Instructions:
· In this section, start with a clear statement of the proposal that is being recommended for approval. This includes the authorities requested (ex: Project Approval [PA]/Expenditure Authority [EA] or amended PA/EA) and a brief definition of the project scope (ex: lease renewal, tender, space assignment, etc.), amount of space (m2) and parking, total project cost (ex: fit-up or base building estimate) and timing (ex: in-service date). The name(s) of the client department(s) must be identified.
· As an example, use the following wording to begin the statement, as follows:
· Lease Project Approval
The project is seeking Project Approval and Expenditure Authority1 in the amount of [insert amount and indicate amount before taxes] including a fit-up amount2 of [insert amount and indicate amount before taxes] to [indicate purpose]. The in-service date is [insert date], with a lease term certain of [insert number of years] [indicate lease options, if any].
Ø Examples of purpose:
o If lease tender: to proceed with a lease tender to accommodate employees of [name of Department] at [location]
o Lease in PSPC’s inventory: to proceed with a lease inventory solution to accommodate the office requirements of [name of Department]
§ In this scenario, there will be no rent included in the PA
· Other projects (e.g. Crown-owned for base building modifications for space assignments)
The project is seeking Project Approval in the amount of [insert amount and indicate amount before taxes] and Expenditure Authority1 (EA) in the amount of [insert amount and indicate amount before taxes], to [indicate purpose]. The in-service date is [insert date], with an Occupancy Instrument (OI) of [insert number of years].
Ø Examples of purpose:
o For accommodation in a Crown-owned inventory building (Base building and/or Fit up works): to fit-up office space and special purpose space to accommodate employees of [name of Department]
Note:
1 IARs requesting project approval should also identify the amount of expenditure authority, based on substantive cost estimates.
2 For purposes of IIP inclusion, the fit-up amount should be aligned to line C and line D of the cash flow table found under the Approval Authorities and Funding section of the Executive Summary.
Project Information
Project Background
· The purpose of this section is to provide the reader with the necessary background to fully understand the investment situation.
· Provide brief history of the current project and the rationale for undertaking this project (problem/opportunity statement). This should clearly define what factors or issues are driving the initiation of the project and how the project will address these issues. For all projects, indicate information on current location.
· Projects may be launched for a number of reasons such as: to meet a client requirement; to maintain or improve an asset; or to take advantage of an opportunity. Make reference to any portfolio planning considerations that may be driving the requirement for the project. If applicable, comment on the urgency of the project (e.g. current condition, if represents health and safety issues, components that are old and obsolete and why the need to replace or repair, etc.).
Project scope: [Please ensure project scope is well reflected in Callipers under “Activities covered by PCRA”]
Instructions:
· Summarize and provide a brief description of the project scope and the key requirements that are being addressed in this project.
Ø For space-based projects, provide information on new location, new requirements in usable (m2u) and rentable (m2r) square meters and indicate # of FTEs it will accommodate and the utilization rates (m2/FTE). Identify any special purpose space or non-compliant requests, or any other special client requirements. Represents space savings of [insert number] m2u/m2r compared to current space occupied. For a lease, indicate duration of the lease and anticipated occupancy date.
Ø For projects involving existing assets (e.g. Crown-owned), ensure to summarize any pertinent information concerning the asset’s condition and performance, including identifying other project requirements related to the asset.
Ø For projects requiring moving employees temporarily (swing space to a location), provide information such as where, duration, etc.
· If the project involves leased accommodation, the method of acquiring the space should be identified. For example, a lease tender call, a direct negotiation acquisition or a lease renewal.
· Identify any dependencies and impacts (previous project approvals, branches, other projects, contracting, legal, announcements, communications, etc.) that are dependent on the outcomes of this project or whether this project is dependent on the outcomes of another project. [Ensure consistency with Callipers (questions 58 and 59)]
· Indicate any special issues that need to be brought to the attention of decision-makers. These issues may pertain to risk management, potential political considerations, timing, legal issues, client issues, and issues regarding the department’s sustainable development targets, heritage conservation considerations or areas of public sensitivity with respect to the project.
· Identify any client concerns to the project and whether the client supports the recommended solution (e.g. client liaison activities).
Options considered and a brief description of option selected with justification:
Instructions:
· Identify and list the options that were considered (non-feasible and feasible options) and analyzed. Illustrate the results of the financial analysis in the form of a table showing the PVCOA and the risk-adjusted PVCOA (if calculated) for each feasible option.
§ Feasible
Ø Option 1 (PVCOA $XXM)
Ø Option 2 (PVCOA $XXM)
§ Non-feasible
Ø Option 3
· The selected option should include a concise statement that explains the rationale for selecting the recommended option. The recommendation should be based upon the financial, non-financial and risk factors that contribute to making this the best value approach.
· As per the TBS-PSPC IIP Protocol, please complete the table (below) and indicate whether Minister Engagement for the project is required.
Criteria for Minister Engagement: Yes* ☐ No ☐ (check one)
Yes/No / Notes #
1 / The project, or others associated to it, is likely to attract negative media coverage.
2 / The project is part of a government-wide initiative.
3 / The project is related to observations from OAG.
4 / The Minister has shown interest or has been briefed on this project or others of a similar nature in the past (e.g. Minister briefings, TB submissions, speeches, etc.).
5 / The project has significant security considerations.
6 / The project is high risk or high dollar value.
Note 1:
Note 2:
* Yes indicates that the Minister may require a briefing on the project as per governance.
Approval Authorities and Funding:
Instructions:
· Provide the PCRA rating level with a score of [%] for the project.
· Identify the appropriate delegated authority required for project approval.
· Indicate if there is a requirement for a TB Submission for Contracting Authority (ex: LCA) and/or to access new funding (e.g. table below or similar).
Table No.Item / Amount / Approval Authority
PA / $X,XXX / ADM, RPS
LCA / $X,XXX / Treasury Board
PCRA/IIP / Level 2 / RPIB
· Identify any expenditures to be incurred by PSPC on behalf of the client for which PSPC will be reimbursed via the RPS Revolving fund (e.g. SPS and/or non-compliant fit-up, and possibly FF&E (if required)) and the client direct costs related to the project that are paid for directly by the client department (e.g. FF&E, IT/IM, cabling).
· Include a statement of what is being included into PSPC’s project approval (which excludes FF&E costs);
§ Example wording to be used:
The project approval includes the PSPC portion of the project (Vote 1 and Vote 5) and the portion recovered via the Revolving Fund. The costs that are directly incurred and funded by [name of Client Department] (FF&E or other direct costs) in the amount of [insert amount and indicate amount before taxes] are the responsibility and the accountability of [name of Client Department]. Therefore, these costs are excluded from the project approval.
· Clearly indicate that the client agrees with these costs and has confirmed the required funding to pay for them. Has the client(s) provided confirmation of source of funds for both Revolving Fund and client direct costs?
· State the class of cost estimate for project approval (e.g. indicative or substantive). For projects seeking expenditure authority, it must be stated that substantive cost estimates have been provided.
Project cash flows:
· Provide cash flow by budget year in current dollars for one-time costs (e.g. fit-up/base building) using the IIP table provided below. GST/HST are shown separately. A separate table has been developed to identify the rent payments by fiscal year for information purposes (see below). Fill in yellow cells only and answer whether it is funded (Y/N), others are formulas.
· Identify the source of funding (e.g. Vote 1, Operating B123, Vote 5 - Capital B141 and/or Fit-up B143) and OGD direct (client) costs. (Note: Non-FFE – OGD reimbursed via Revolving Fund line (table below) refers specifically to fit-up construction costs related to SPS, non-compliant or other special fit-up requirements).
Note: Leasing Costs should reflect current dollars and not the amounts used to calculate Project Approval (i.e. present value)
Project Risks
Instructions:
· Using the table (below), provide a brief description/risk statement, indicate the risk assessment/risk level, and summarize the mitigation measures to effectively manage those risks.
· This information should be in line with the risk management plan. Use same terminology as in Risk Management Plan for Risk Statements, Assessment and Response.
· Identify the key risks associated with the implementation plan for the recommended option. These risks are typically the highest risks identified in the Risk Management Plan.
· Indicate the risk allowance being requested for project implementation. This would be the sum of residual risk indicated in the Risk Management Plan.
Risk Allowance Requested: $ XXX
Highest Risk Statements / Risk Assessment / Risk Response1. Problem/Opportunity Definition
1. General Information
- Client requirement
- Occupancy Expiry Date
- New Acquisition Date
- Deadline to exercise lease option(s) (if applicable)
- Location of space (address)
2. Drivers
- Program requirements
- Current Accommodation not suitable (if applicable)
- Possible opportunities
3. Previous approvals, decisions or agreements:
- Real Property Investment Board (RPIB)
- Regional Investment Management Board decision (RIMB)
- Treasury Board approvals (TB)
- Cabinet or Ministerial decision
- Interdepartmental agreement
4. Special Involvement of other departments
Note: This section should not include any indication of the proposed solution. Its purpose is to concentrate on what drives the project.
2. Background
2.1 Project History
1. Description of tenants
- Short description of the relevant history of the client occupancy at this location
- Date when the client first occupied the space
2. Conformance with NPMS
- NPMS conformance review form in the Appendix
2.2 Building Condition
1. Brief description of building
- Age, area , location, main characteristics, classification of the building, building owner
- History of occupancy (When did the federal government begin leasing in this building? How was this space acquired initially?)
- Environmental performance assessment (BOMA BESt, LEED, etc)
2. Overall condition
- Building Performance Report (Building-related problems and impacts)
- Recent renovations, refresh projects or tenant service projects, and fit-up condition
- Accessibility Report (if not available; must have a confirmation from Property Management on condition, and should include the estimated date that the report will be available)
- Lease Condition Report (LCR) (if not available; must have a confirmation from Property Management on condition, and should include the estimated date that the report will be available)
2.3 Tenant Considerations
1. Description of tenants
- Background information on tenants
- Inventory of current occupancies for Client Department
- Nature of program(s) that may be impacted by this requirement
Inventory of current occupancies in the region[1]
Name or address / Client Occupancy Start Date / Expiry Date / Lease Expiry Date / Options Left / Office / SPS / Total m2rm2u / m2r / m2u / m2r
Fontaine / Apr. 1, 2009 / Dec. 31, 2013 / Dec. 31, 2022 / 117.6 / 129.2 / 129.2
Monclair / May 1, 2010 / Mar. 31, 2013 / Apr. 30, 2020 / 1,350.1 / 1,357.9 / 1,357.9
Saint-Joseph / May 1, 2010 / Aug. 31, 2014 / Aug. 31, 2014 / 1 X 5Y / 195.6 / 225.9 / 225.9
Vincent Massey / Aug. 1, 2011 / Mar. 31, 2016 / Jul. 31, 2036 / 1,477.0 / 2,429.0 / 752.8 / 884.3 / 3,313.3
Grand Total / 3,140.3 / 4,142.0 / 752.8 / 884.3 / 5,026.3
Current client(s) occupancies affected by this requirement