875 Heron Road facility rehab P3 update

Public Works and Government Services Canada (PWGSC) has issued an RFI on the value engineering process with 3 shortlisted bidders for the Taxation Data Centre Complex rehabilitation project at 875 Heron Road as a P3, IJGlobal has learnt.

The procuring authority is seeking feedback to align the project’s objectives with proponents’ input before releasing the RFP at year-end (2022), a PWGSC spokesperson said.

The RFI, available only to the bidders, will help inform PSPC decisions on innovations, project affordability, and prioritizing benefits.

Through this procurement, the government aims to work with a private partner to DBFM the rehabilitation of the 875 Heron Road. The 3 shortlisted teams competing for the 30-year concession post substantial completion are led by:

  • EllisDon
  • Pomerleau Capital and Plenary Americas
  • Fengate

These were the only bidders that responded to the RFQ issued last December (2021), despite the Canadian government receiving interest from 12 entities when an LOI launched that, as revealed by IJGlobal

The procurement phase for the rehabilitation of the centre is expected to be completed in fall 2023 with construction starting later that year and extending till fall 2027.

The facility was built in 1970 in the Confederation Heights neighbourhood of Ottawa. The building has housed the HQ of the Canada Revenue Agency (CRA) since it was constructed and it will continue to house the agency post-modernisation. The facility is also a recognised heritage building.

The DBFM project has been announced because the vast majority of the building's systems are at the end of their service life. Required work includes upgrades or outright replacements to all major systems and building elements:

  • building structure
  • interiors
  • building envelope
  • mechanical and electrical systems
  • site work
  • demolitions as required to facilitate the above

Advisers to PWGSC are:

  • Deloitte – financial
  • Norton Rose Fulbright – legal
  • Hanscomb – cost consultant
  • RFP Solutions – fairness monitor

Asset SnapshotCanada Revenue Agency Building Modernisation

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Transaction SnapshotCanada Revenue Agency Building Modernisation PPP

Concession Period:
30.00 years
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