Feasibility Report

<Project Name>

<Location (if applicable)>

<Client>

National Project Management System

Feasibility Phase

Prepared by:
Date:
File name / EDRM# : 365759625.doc
 Last revised: December 14, 2010

Table of Contents
1.0 Executive Summary........................................................................................3
2.0 Problem/Opportunity Definition.....................................................................3
3.0 Project Scope..................................................................................................4
4.0 Identification and Analysis of Options............................................................6
5.0 Recommended Options for Further Analysis.................................................11
6.0 Approvals/Signatures...................................................................................11

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Feasibility Reports Guidelines

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 non-financial 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]). Further, for those options which are considered feasible,
(based upon the non-financial evaluations), indicative (Class D) 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 Analysis phase. 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.

When technical studies (Investigation and Report) have been conducted, they
should be used as input to the preparation of the FR.

As defined in the NPMS Directive for Real Property Projects, in some cases, a
separate FR is not required as the IAR 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 problem/opportunity being assessed.
2. Identify any special issues that may need to be brought to the attention of
Real Property Investment Board (or respective Regional Investment
Boards). Mention should be made of any implications on the client(s) or
other stakeholders.
3. List 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 projects Statement of Requirement. Briefly
identify the main problem or key issue that the proposed project is seeking 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 key requirements of the
project. It should provide pertinent details regarding the context for
undertaking the proposed project. If information required to prepare this
section of the FR come from the Statement of Requirements (SoR) or
Preliminary Project Plan (PPP), it should be referred to, and the key content
summarized. Supporting details that are found in the SoR or PPP do not need
to be replicated in the FR.
Suggested Content:
ASSET BASED PROJECTS
This section will describe the major asset requirements of the proposed
project.
1. Provide a description of the asset. It 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 FR.
Elements of the asset description may include:
the age, area and other main characteristics of the asset;
the number of occupants affected by the problem;
the nature of any recent renovations that have been undertaken
(may be presented in an appendix);
detailed information regarding the features of the asset relevant
to the project being proposed;
whether the property has a heritage designation or whether it is
subject to other conservation initiatives. A designation by the FHBRO is
the most pertinent designation for PWGSC assets;
who the asset is being managed by if this has any implications
for the project.
2. Include a statement as to the overall condition of the asset and its main
systems, including any limitations it may have. Identify upcoming project
requirements for the asset, other than those associated with the current
project.
This information shall be summarized from the Asset Management Plan
(AMP), the Building Management Plan (BMP), the Building Condition Report
(BCR), and other relevant documents. Most of the information in this
section may be presented in an appendix, with the main points referred to
in the text of the FR.
3. Briefly discuss the operational, financial, and functional performance of
the asset, and whether performance targets for the asset are being met.
Identify any operational, financial or functional performance issues which
may be relevant to the project. This information can be summarized from
the AMP.
4. Identify 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
PWGSC may be planning to keep the asset (refer to AMP).

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5. Identify any strategic considerations of relevance to this project. Briefly

discuss how the continued utilization of the subject property conforms to
regional or local accommodation strategies. These strategies may be
identified in a Community-Based Investment Strategy (CBIS), or they may
be referred to in the AMP.
6. Reference any related documents that report the problem, need or
opportunity.
7. Describe health and safety issues and any potential impacts on clients or
tenants
SPACE BASED PROJECTS
This section will describe the major clients requirements of the proposed
project.
Note: If it is a portfolio acquisition, then the potential client department and
requirements should be identified.
1. Present the clients requirements in terms of:
the existing amount of space occupied (where relevant); and
number of employees and/or full-time equivalent (FTEs) as
validated by the client.
2. Identify the type of space required; the date by which the space is
required; and for how long the space is required, and if known, within the
context of the all relevant client demand. for this location. Identify any
special considerations that relate to either the clients requirements or the
nature of the assets. Examples of this may include a clients requirements
for a specific location or type of location, the enhanced security
requirements of a highly sensitive department, or the special
requirements posed by a heritage building. Summary information should
be provided as to why these special requirements exist.
3. Consistency with Accommodation Plan.
4. Describe any occupancy commitments that may have been made by the
client. The analyst should identify the term of this commitment and
discuss what is likely to happen after the commitment expires.
5. Potential for non-compliance with space fit-up standards.
6. Project drivers i.e.,
New client program;
Client space modifications (expansion, reduction, changed use of
space, consolidation);
Timing duration of occupancy.
7. If applicable, identify potential future demand from other federal
government departments that is relevant to this project.
Tips on writing this section:
There will likely be much detailed information associated with this section of
the FR. The project team should present numeric information in the form of
tables and/or appendices, as much as possible.

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References:
Real Property Investment Guide, Section 4.1, Define Client
Needs.
Client Department Sustainable Development Strategy (current).

4.0 Identification and Analysis of Options

Purpose:
The purpose of this section is to list and analyze all available options for
meeting the identified project requirements, and to document the results of
the feasibility assessment of each of the options. Documentation will include
the rationale to support viable options (to be analyzed in the next phase,
within the IAR) and the justification to screen-out non-viable options.
4.1 Options Considered
Suggested Content:
1. Identify and describe all reasonable options for satisfying the project
requirements. 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:
Repairs, retrofit, renovation, conservation
Demolish and rebuild
Dispose and demolish, buy and adapt
Sell
Space based projects options could be:
Vacant crown inventory
Lease tender call for existing space
Renewal in-situ
Build-to-lease
Lease-purchase
Crown-construction
Acquisition of an existing building
Public-Private-Partnership (a P3 screening tool is being
developed for larger project)
Space optimization of existing space
2. Identify 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. Briefly state why the eliminated
options are not being considered for further analysis.
3. The FR should include a Base Case (status quo) scenario. The Base Case
should form part of the in-depth analysis as it is usually the fallback
position if the recommended project is not approved.
4. In preparing this section, ensure that all reasonable options for providing
accommodation have been explored.

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5. The feasible options that will be analyzed need to be developed and their
estimated duration must be determined. The feasible options must also
include indicative (Class D) cost estimates for construction, leasing, and fit
up. This will help establishing life-cycle costs in the next phase (within the
IAR). The project duration could include the following NPMS and project
milestones:
SoR approval date
PPP approval date
FR approval date
Preliminary Project Approval (PPA) or Lease Project Approval
(LPA) date
Request for Information date
Request for Qualification date
Request for Proposal date
Effective Project Approval (EPA) date
Negotiations commencement date
Lease Contract Authority (Lease Contract Award date)
Base Building construction start date
Fit-up design commencement date
Fit-up construction commencement date
Product Turn-over date
Moving commencement date
Indicative estimates could be provided for:
Fit-up cost
Base building construction cost
Net rental rates
Operating & Maintenance cost
Taxes
Land cost
The main features of each option should be summarized in text or tabular
form with supporting details in an appendix (e.g. Cost Report Template). It
is important to identify the key assumptions made and the level of risk
associated with the estimates provided. Of note, the indicative cost
estimates should only be provided for the feasible options. However, the
milestone list is required for all the options assessed in the Feasibility
Report as it will be used to determine if each option is responsive to
identified timing requirement (please see section 4.2).
6. Ensure that the options reflect the requirements of PWGSCs Sustainable
Development Strategy.
4.2 Analysis of Non-Financial Factors
The analysis of non-financial factors is intended to ensure that all qualitative
factors that contribute to providing value to the federal government are taken
into account in the investment analysis.
Suggested Content:
Provide the following information for each of the possible options:

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1. Identify 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 PPA/LPA. Some of the factors which may be considered
include:
How well each option satisfies the identified client requirements.
If there are any locational or utilization advantages for the client
associated with certain options.
The extent to which each option is responsive to identified
timing requirements.
Differences between the options with respect to various policy and
regulatory requirements such as for health, safety, sustainability,
accessibility, contribution to the community, and federal presence.
The degree to which the option supports heritage conservation,
Treasury Board's Heritage Buildings Policy and the Good Neighbour
Policy.
A qualitative 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 PWGSC Sustainable Development Strategy (SDS). Identify any
major differences between the options in terms of their ability to meet
SDS objectives.
2. The use of an evaluation matrix can help to ensure that all feasible
options are considered in an organized, 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. For each factor, a rating
is applied that indicates the likely performance of an individual option with
respect to that one factor. Multiplying 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 qualitative 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 100%
for the full set of criteria. In 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: In order to compare the options, a rating
scale is used to transform qualitative observations into a numerical

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value. In this approach, each criterion has a scale of 0 (lowest) to 5

(highest). A rating of 5 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 0 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.
Ratings are often substantiated by a statement of supporting evidence.
The evaluation framework can assist the analyst in making 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 Option 1 Option 2 Option 3
Weight
Factor 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
Total Score 100 345 300 370

3. Describe the results of the analysis, including the rationale behind the
ratings and weighting factors that were applied, and the conclusions that
were reached. Details of the analysis may be included as an appendix.
4.3 Risk Assessment of Options
The purpose of this section is to identify the key risk factors associated with
each of the options being considered in this Feasibility Report.
NOTE: A more substantive risk assessment will be conducted for the IAR. For
the Feasibility Report, identify the results of the preliminary risk assessment
of each option in terms of scope, time, cost or other considerations
surrounding the problem/opportunity such as environment, infrastructure,
technical, political, legal, organizational and / or social factors. The latter
considerations may be derived from assumptions and constraints discussed
in the Preliminary Project Plan, and will pertain to the project being able to
attain the project objectives
1. The first step is to identify the risk factors that could be relevant for each
of the options being analysed.
2. While the relevant risk factors will be different for each investment
situation, some risk factors that may be considered include:
Risk that the project may not fully rectify an identified problem
Risk of user needs not being met
Risk of changing requirements
Risk that forecast demand fails to develop

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Risk of not meeting timing requirements

Risk of cost overruns
Risk of future performance being impaired
Risk of environmental degradation
3. Once the risk factors have been identified, it is necessary to evaluate the
relative level of risk associated with each of the options. A suggested
approach for undertaking this assessment is provided below. However,
other methodologies may be employed.
It may be usefull to take the following actions during this step:
Identify all sources of risk associated with each option under
consideration.
Undertake a risk assessment for each element of risk for each option.
The risk assessment is a product of the likelihood times the severity of
the impact, as indicated below.

Very High Risk (10) High impact and high likelihood

High Risk (5) High impact and medium likelihood,
or
Medium impact and high likelihood
Medium-High Risk (3) Medium impact and medium
likelihood
Medium Risk (2) Low impact and high likelihood, or
High impact and low likelihood
Low Risk (1) Low impact and medium likelihood,
or
Medium impact and low likelihood
Very Low Risk (0) Low impact and low likelihood

Evaluate the overall level of risk associated with each option. This can
be done using an evaluation matrix. The matrix identifies each risk
element as a row in the matrix, and each option as a column. Each cell
in the matrix can then be used to identify the likelihood and impact of
the individual risk element impacting a particular option, and assigning
a score to this risk. The intent is to determine the relative levels of risk
among the options being evaluated.
Example of Evaluation Matrix for Risk Assessment
Risk Option 1 Option 2 Option 3
Factor Risk Scor Risk Score Risk Score
e
Factor 1 High 5 Medium 2 Medium 2
Factor 2 Medium 2 Low 1 Medium 2
Factor 3 Low 1 Very Low 0 Low 1
Factor 4 Very Low 0 High 5 Low 1
Factor 5 Medium 2 High 5 Low 1
Total Score 10 13 7

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4. Describe the results of the risk assessment and the conclusions that were
reached. Which option carries the lowest level of risk? Do any of the
options carry an unacceptably high level of risk? The risk assessment will
be used to develop a Risk Management Plan in the IAR 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. It is recommended to obtain guidance on this section from the
respective Centers of Expertise. It is important to identify the key
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 IAR.
Investment Analysis Policy
PWGSC Sustainable Development Strategy
Real Property Branch Risk Management Manual
Integrated Risk Management Policy. November 2010
PWGSC National Project Management System /Knowledge
Area/Risk

5.0 Recommended Options for Further Analysis

The intent of this section is to combine the results of all of the analyses that
were undertaken. Consider the results of the assessment of non-financial
factors and risk assessment together.
Summarize the key findings of the Option Ranking. Identify which options are
recommended for further analysis (including financial analysis) during the
Analysis phase in preparation of the IAR.
6.0 Approvals/Signatures

Prepared by:

Signature

Please print:

Name Position Date

Approved by:

Signature

Please print:

Name Position Date

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