Report to/Rapport au :


Corporate Services and Economic Development Committee

Comité des services organisationnels et du développement économique


and Council/et au Conseil


5 August 2003/le 5 août 2003


Submitted by/Soumis par :  Steve Kanellakos, A/City Manager/Directeur des services municipaux intérimaire

City Manager’s Office, Bureau du directeur des services municipaux


Contact/Personne-ressource :  Réjean Chartrand, Director, Strategic Delivery Unit/Directeur, Unité d’exécution stratégique

580-2424, ext./ poste 21696,





Ref N°:   ACS2003-CMR-OCM-0010



SUBJECT: Public-Private Partnership (P3) project -
Emergency medical services [1]headquarters







That the Corporate Services and Economic Development Committee recommend Council:


1. Authorize staff to request proposals for the design, construction, financing and operation of an Emergency Medical Services headquarters at 2465/2495 Don Reid Drive; and


2. Approve the framework for the development of the Request for Proposal (RFP) as presented in this report.





Que le Comité des services organisationnels et du développement économique recommande au Conseil municipal :


1. d’autoriser le personnel à demander des propositions de conception, de construction, de financement et d’exploitation d’un siège social des Services médicaux d’urgence au 2465/2495, promenade Don Reid ;


2. d’approuver le cadre nécessaire à l’élaboration de la demande de proposition (DDP), comme le décrit le présent rapport.





In October 2002, Council approved the Emergency Medical Services’ Headquarters project to proceed as one of the priority P3 initiatives.  The P3 approach to the design, construction, financing and operations of a new EMS facility will enhance and improve emergency medical service delivery to the citizens of Ottawa, allowing the City to preserve capital while meeting the infrastructure needs of a critical service delivery agent in the City. 


In the spring of 2003, the services of an external consulting firm, Delcan Corporation, were secured through the competitive Request for Proposal process to develop the program of requirements and initial design brief for the facility. 


The subsequent design, construction, financing, and operations of the new EMS facility constitute the basis of the P3 project covered in this report.  This project uses a three-stage process of Request for Qualifications (RFQ), Request for Proposals (RFP), and Negotiations and Agreement to select a successful proponent.


This report provides the results of the evaluation of the responses received from the RFQ stage and details the framework that will be used in the development of the RFP.






Results from the RFQ Stage


A Request for Qualifications (RFQ) was issued on 5 June 2003 by Supply Management and advertised on MERX.  The RFQ closed on 7 July 2003 and qualification submissions were received from 8 firms. 


The submissions were evaluated against the evaluation criteria prepared by the Supply Management Division with the assistance of staff from the participating departments.  The criteria were reviewed by the Fairness Commissioner retained by the City to oversee the process and to ensure that the evaluation process would be open, fair and transparent.


An evaluation team consisting of two representatives from the Emergency and Protective Services Department, one from RPAM, and one from the private sector was set up to carry out the evaluation of the responses, under the leadership of the Supply Management Division and in the presence of the Fairness Commissioner.


In order to be considered to be short listed and be invited to submit a detailed proposal, Respondents had to meet all the Mandatory Requirements and obtain the minimum passing grade of 70% on the Criteria Subject to Point Rating.  Of those Respondents, the four top scores would form the shortlist. 


Respondents were invited to propose sites, other than the City site on Don Reid Drive, they deemed suitable and which met the mandatory site criteria.  Two of the respondents proposed optional sites but were not recommended for the short list.


The following submissions were qualified to be short listed for the Request for Proposal (RFP) stage of the process:


·    Doran Contractors Limited, (in association with Taggart Realty Management, Edmundson Mathews Architects, DuBois Plumb Partnership, Halsall Associates and R.J. McKee Engineering Ltd.)

·    Emergency Medical Headquarters Group: PCL Constructors Canada Inc., ABN AMRO Bank, Lowry Otto Erskine Architects Inc., Oxford Properties Group

·    Forum Leasehold Partners Inc., (in association with Aecon Buildings, Trammell Crow Corporate Services Canada Ltd.)

·    Ottawa EMS Consortium: Giffels P3 Inc., NORR Limited, CB Richard Ellis Limited, O&Y Enterprise, National Bank Financial


It is important to recognize that inviting these respondents to the RFP stage does not guarantee a response to the invitation. It is quite possible that for any number of reasons some may decide not to pursue this opportunity.


Conversely, there are also no guarantees that the City will enter into a partnership with any of the respondents who submit a proposal. While the City is committed to the process and has full expectations to enter into a successful partnership, it will only proceed if there is a strong sense of a win-win situation for both the City and the private sector partner.



Framework for Development of the RFP


This public-private partnership is based on the premise that the private sector partner will design, build, finance and operate the City’s EMS HQ and transfer the building to City ownership at the end of the 20 to 25 year term for a dollar.  Benefits to the City are the design, construction, facility operations expertise and capital brought by the private sector partner. 


Based on the above, the framework for the RFP will be developed in accordance with the following:


·    The building will be located on the City owned site at 2465 & 2495 Don Reid Drive.

·    The partnership arrangement will detail the responsibilities of the proponent and the City as it relates to each phase of the project i.e. design and construction, tenancy and ownership transfer. 

·    The capital financing of the facility will be on terms and conditions approved by the City.

·    Proposals will clearly indicate timelines for construction and commissioning with the expectation of completion in June 2005.

·    Proponent to obtain all required permit approvals.

·    Proponent to conduct full program reconciliation and value engineering based on the program of requirements and design brief provided by the City.

·    After construction, proponent to operate and maintain the building in a safe and proper condition, fully consistent with mission requirements throughout the term (anticipated 20-25 years) to be negotiated between the proponent and the City.

·    The City will require from the proponent an annual funding contribution for the life cycle renewal of base building elements including but not limited to the mechanical and electrical systems, roof and exterior cladding.

·      Selection of partner to be based on above requirements being met, best overall value to the City and favourable evaluation against the Public Sector Comparator.


Supply Management Division, with a Fairness Commissioner overseeing the process, will lead the RFP process. The Public Sector Comparator (PSC) will be developed, providing a detailed costing if the City were to design, construct, finance and operate the facility.  The PSC will allow the City to evaluate and compare proposals received from the private sector.



Timelines and Next Steps


Following approval of this report by Council, staff will finalize and distribute the RFP document to all firms on the short list.  This is anticipated to take place in early September 2003, with the proposals expected back in late November 2003.


Staff expect to report back to Committee and Council with a recommendation on the private sector partner in January 2004.  Negotiations on the partnership agreement, and the public information session are anticipated to take place in February, with final agreements finalized and executed in March 2004.





As per Council’s direction, after a preferred Respondent is selected at the RFP stage, a public meeting will be held in the community where this facility is proposed for development.  This meeting will be organized with the preferred private sector Respondent prior to the completion of the final negotiations stage.





Based on the preliminary design brief, the project cost estimate is in the range of $20 - $25 M (excluding land costs). Under the proposed public-private partnership, it is expected this capital investment will be repaid by the City to the private sector partner on an annual basis over the term of the partnership. This will result in a significant increase over the current lease payments for the facilities at 530 Tremblay Road and will create an additional pressure on the City’s operating budget over the long term.


The existing lease for 530 Tremblay Road runs month to month and can be terminated within a 90-day notice period by the Ontario Realty Corporation (ORC), the owner of the property. ORC has indicated its intention to dispose of the property for other forms of development, but is not planning to take action on this in the short term. This effectively leaves the City without a long-term commitment to a facility for the delivery of this critical service, thereby the need to proceed to the next stage of this public-private partnership immediately.










Following approval of the report by Council, City staff will finalize and distribute the RFP to all firms on the short list in early September 2003.

[1] Council approved a change of name from Emergency Medical Services to Ottawa Paramedic Service on July 23, 2003.  Since this report addresses activities that occurred prior to this name change, the former name will be used throughout.  / Le 23 juillet 2003, le Conseil municipal a approuvé le nouveau nom Service paramédic d’Ottawa pour remplacer les Services médicaux d’urgence. Étant donné que le rapport concerne des activités qui ont eu lieu avant le changement de nom, l’ancien nom est utilisé dans le présent document.