Feasibility Report
(for Asset Based Projects)
<Project Name>
<Location>
National Project Management System
Feasibility Phase
Version: July 2, 2013
Prepared by:
Date:
CPBN:
Sigma Number:
FR Template - Asset Based Projects
Table of Contents
Executive Summary.........................................................................................................................................2
1.
Problem/Opportunity Definition ............................................................................................................2
2.
Background .............................................................................................................................................3
2.1 Project History.......................................................................................................................................3
2.2 Building Condition .................................................................................................................................3
2.3 Tenant Considerations ..........................................................................................................................3
2.4 Strategic Context...................................................................................................................................4
2.5 Stakeholders..........................................................................................................................................4
3.
Project Considerations ............................................................................................................................4
4.
Identification & Analysis of Options .......................................................................................................5
5.
4.1
Options Considered ........................................................................................................................5
4.2
Analysis of Non-Financial Factors / Preliminary Risk Assessment ..................................................5
4.3
Non-Feasible Options ......................................................................................................................7
4.4
Feasible Options ..............................................................................................................................8
Recommended Options for Further Analysis ..........................................................................................8
6. Project Team, Approval and Signatures .....................................................................................................8
1
FR Template - Asset Based Projects
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 analyzed in the next phase (Investment Analysis Report [IAR]). The FR should also
justify why any potential solutions were considered to be non-viable or considered to be non-compliant with
government policy and/or project objectives and therefore not considered further.
Executive Summary
1.
Statement of the problem/opportunity
Problem/Opportunity definition
2.
Previous Approvals, decision or agreements (if applicable)
3.
Special issues to Regional Investment Management Board/Real Property Investment Board (if applicable)
Risk management
Potential political considerations
Timing
Legal issues
Client issues
Department’s sustainable development targets
Heritage conservation
Public sensitivity
Recent or ongoing related projects
4.
List options to be analyzed
1. Problem/Opportunity Definition
1.
Key Issues (factors driving the initiation of the project)
Maintain or improve asset
Issues related to insufficient effectiveness of a system
Improving environmental performances
Possible Opportunity
Client Requirements
Emergency situation
2.
Previous approvals, decisions or agreements:
Regional Investment Management Board decision (RIMB)
Real Property Investment Board (RPIB)
Treasury Board approvals (TB)
Cabinet or Ministerial decision
Interdepartmental agreement
Note: This section should not include any indication of the proposed solution. Its purpose is to concentrate on
what drives the project.
2
FR Template - Asset Based Projects
2. Background
2.1 Project History
-
Short history
- Relationship to other projects or programs (if applicable)
2.2 Building Condition
1.
Brief description of the building
Age, area, location, main characteristics, classification of the building, building owner
Environmental performance assessment (BOMA BESt, LEED, etc)
Heritage considerations
Strategic value of asset
2.
Future plans for use of asset
3.
Overall condition information from Building Condition Report, Properties Facilities Management, Building
Management Plan, Asset Management Plan etc. (if applicable)
Building systems (Architectural, Structural, Fire Alarm System, Interior Condition, Mechanical
Systems, Electrical Systems, Indoor Air Quality, etc.)
Limitations
Recent renovations
Facility Condition Index (FCI) (if applicable)
Upcoming requirements
Operational, financial, environmental and functional performance
Project related problems and impacts
Accessibility
Impact of current problem on tenants (if applicable)
2.3 Tenant Considerations
-
-
List the Occupants
Type and amount of space occupied in form of a table (if appropriate)
Client
Type of space
X
Y
Storage
Office
SPS
Office
m2u
m2r
Occupancy
Instrument (OI)
Expiry Date
August 31, 2013
December 31, 2014
473.9
494.3
2,744.0
2,982.6
774.3
807.5
Z
6,900.0
7,495.1 September 30, 2015
10,892.2
11,779.5
Information on client changes, movement, issues, etc. (if applicable)
3
FR Template - Asset Based Projects
2.4 Strategic Context
1.
Describe how the problems/opportunities relate to current strategies and plans, such as:
National Investment Strategy (NIS)
Regional Investment Strategy (RIS)
Community Based Investment Strategy (CBIS)
Portfolio Strategy
Strategic Action Plan
Asset Management Plan
Building Management Plan
Client Strategy (Explain the client’s long-term and short-term accommodation strategy, if applicable)
2.
Meet with the Portfolio Management Sector, Owner Investor Analyst, Asset Manager, Accommodation
Manager and any other relevant stakeholders to ensure that all necessary background information is
included; any additional directives from upper management, priorities, budget cuts, strategic and
operating review, etc.
2.5 Stakeholders
(Relevant groups who may be implicated in the problem/opportunity)
1.
List all the relevant stakeholders who have an involvement in the problem/opportunity
2.
Briefly describe their stake
3. Project Considerations
Highlight any special issues/requirements relative, but not restricted to the following:
-
Technical requirements
Level of urgency
Health and safety
Environmental requirements
Sustainable Development Strategy requirements
Requirement based on a current strategy
Policy requirements
Timing requirements
Security requirements
Accessibility requirements
Requirement to address the condition of the Asset
Heritage building
Client requirement
Other requirements
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FR Template - Asset Based Projects
4. Identification & Analysis of Options
4.1 Options Considered
**Status quo must be fully analyzed and the consequences of maintaining the status quo are identified. Refer
to Base Case (Status Quo) Scenario.
Identify and describe all reasonable options for satisfying the project requirements
It is best to identify a greater number of options and then rule them out
Some examples of options for asset-based projects are the following:
-

Status Quo (maintaining the asset as-is; minor repairs only when necessary)

Repairs, replacement, upgrade

Renovation, heritage conservation/recapitalization

Demolition, disposal, deconstruction

Etc.
4.2 Analysis of Non-Financial Factors / Preliminary Risk Assessment
1) Description of options:
Option 1: Status Quo
Scope: Clearly explain the details of this option (what they consist of) and its limitation
Option 2
-
Scope: Clearly explain the details of this option (what they consist of) and its limitation
This option includes/excludes:
Additional scope of work (compared to Option X):
Option 3
-
Scope: Clearly explain the details of this option (what they consist of) and its limitation
This option includes/excludes:
Additional scope of work (compared to Option X and Y):
2) Advantage and Disadvantage and Preliminary Risk Assessment Table. For example:
Options
Option 1:
Status Quo
Advantages
-
Disruption: No added
disruptions to elevator
service by removing
elevators from service for
upgrading.
Preliminary Risk
Assessment
(High-Medium-Low)
Disadvantages
-
-
-
Codes and Standards: Does not
address non-compliance with
current barrier free design, B44
Elevator Safety Code, and safety
bulletin from Technical
Standards and Safety Authority
Future maintenance: Increased
capital and maintenance costs
due to the replacement of
obsolete components of the
existing control and drive
systems.
Tenant satisfaction: Continued
tenant dissatisfaction regarding
5
-
-
Risk of project delays
(very low): there is
no additional work to
be done on the floor
Risk of eventual
system failure (high):
failure of obsolete
machinery and
energy inefficient
operation posing a
health and safety risk
to occupants and
visitors alike
FR Template - Asset Based Projects
elevator service and reliability
including numerous shutdowns
and entrapments.
- Health and Safety: The
- Disruption: Disruption to elevator
elevator system will have a
service, as one elevator at a time
significant overall
will be down for approximately
improvement to the level of
four to five weeks for upgrading.
safety.
- Tenant Satisfaction: No
- Codes & Standards: Full
improvements in elevator service
compliance with current
or reliability.
barrier free design, B44
- Future modernization:
Elevator Safety Code, and
Approximately 15-20% of this
safety bulletin from Technical
work (and costs) would become
Standards and Safety
redundant when a major
Authority.
modernization is carried out in the
near future.
- Energy Efficiency: No energyrelated savings as the original
drive and control equipment
would be retained.
- Health and Safety: The
- Recapitalization Project: Staging
Option 3:
elevator system will have a
and timing of other projects within
Complete
significant
overall
the complex may incur revisiting,
Elevator
improvement
to
the
level
of
upgrading or changing some base
Modernization
safety.
building which form part of this
- Codes and Standards: Full
project.
compliance with current
- Disruption: Longest shutdown
barrier free design, B44
time for each elevator. One
Elevator Safety Code, and
elevator at a time will be out of
safety bulletin from Technical
service for approximately 12
Standards and Safety
weeks.
Authority.
- Long-Term Solution:
Completely refurbished
custom cab interiors that
should not require
refurbishing for another 1015 years.
- Tenant Satisfaction:
Significant improvement in
elevator service and waiting
times with the installation of
microprocessor based
computerized controls and
dispatching as well as
increased system reliability.
- Energy Efficiency: Elevator
energy savings of
Option 2:
Upgrade to
Comply With
Current B44
Elevator
Safety Code
Only
6
- Risk of project delays
(medium): delays in
schedule due to
“unknowns” or
additional work to meet
various Codes &
Standards.
- Risk of cost overruns
(medium): increased
costs associated with
factors unknown before
the construction phase
- Risk of project delays
(low): delays in
schedule due to
“unknowns” during the
construction phase
- Risk of cost overruns
(low): increased costs
associated with factors
unknown before the
construction phase or
inaccurate as-built
drawings
FR Template - Asset Based Projects
approximately 40% with the
installation of solid state
motor drives and permanent
magnet alternating current
gearless drive machines.
Some examples of non-financial factors are the following:
Project requirement satisfaction
Strategic compatibility (Long Term Vision and Plan, NIS, RIS, AMP, CBIS etc.)
Impact on diversity or balance of the inventory
Timing requirements respected
Support goals and objectives of PWGSC Sustainable Development Strategy
Client requirements satisfaction
Suitability of accommodation
Health and Safety
Seismic/Code
Conservation of Heritage Value
Continuity of Operations
Flexibility
Disruptions to tenants
Accessibility
Federal presence
Good Neighbour Policy
Environmental factors
Aboriginal considerations
Example of risk factors relevant to each option
Risk that the project may not fully rectify an identified problem
Risk of user needs not being met
Risk of changing requirements
Risk of not meeting timing requirements
Risk of cost overruns
Risk of future performance being impaired
Risk of environmental degradation
Risk of exceeding approved funding
Risk of Base building System Failure
Risk related to Indoor Air Quality (IAQ)
Risk related to Fire Code Requirements
Risk related to a request for Non-Compliance
Risk of Political Pressure
Risk of client commitment to the project
Risk of changing priorities in the Federal Government or Department
Other related risks
4.3 Non-Feasible Options
-
All options considered but not feasible
Clearly explain why the eliminated options are not considered for further analysis
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FR Template - Asset Based Projects
4.4 Feasible Options
-
Identify the options which are to be carried forward for in-depth analysis



Develop the main options analyzed
Relate the asset’s (or Regional Portfolio) strategy with the parameters of the options.
Proposed Timeline (project milestones only)
5. Recommended Options for Further Analysis
-
Combine the results and summarize (short summary) the key findings of the options analysis (determine
which options were considered as feasible after risk and non financial analysis)
Identify which options are recommended for further analysis in the preparation of the IAR
6. Project Team, Approval and Signatures
Position (examples)
Project Director
Senior Project Leader
Senior Project Manager
Project Manager
Prof. and Tech. Resources
Senior Financial Advisor
Property Manager
Other (specify)
Action
Organization
Date
Name
Signature
Prepared by
Project leader
Reviewed by
Recommended by
Approved by
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