Saskatchewan government's presentation to media on P3 bulk build schools

o The Goal is to provide safe, comfortable, sustainable and

creative spaces for students and early learners to achieve

success

o To achieve this, students, teachers, parents, school divisions and

community members will be involved in the core design through

the 3P process

o Nine joint-use schools in high growth areas:

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o Schools expected to open Fall 2017 - requires Spring 2014

procurement

o Jan–May 2014 – Due diligence and LEAN 3P

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o June–Aug 2014 – Request For Qualifications (RFQ)

o Sept 2014–July 2015 – Request For Proposal (RFP) and Financial Close

o July 2015–June 2017 – Construction

o June–August 2017 – Transition

o Fall 2017 – Schools open

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o Procurement process decision (P3 vs. Traditional)

o Develop RFQ, RFP and Project Agreement documentation

o Financial close

o Construction and commissioning site preparation work

o Construction

o Commissioning

o Preparation for school opening & operation

o Schools open

Provide benefits for students where specific programming may not

have been otherwise offered

Short-term and long-term maintenance costs could be shared

reducing overall cost for each school board

Potential to strengthen partnerships between school divisions

Provides equitable facilities

Improves efficiencies in construction

Significant time savings

Meets provincial standards and guidelines

Adaptable to suit unique needs where needed

Supports Student First

o Core Design informed by LEAN 3P: Production/Preparation/Process

o Involves students, teachers, parents, school divisions, caretakers and

community members in the core school design

o Goal is to ensure quality, safety, flow and efficiencies to provide the

best learning environment

o Design may be modified to meet local needs

o Land certainty

o All issues and costs known

o Ownership strategy to resolve by financial close

o Public sector procurement methodology

o Design, Build, Finance and/or Operate, Maintain

o Innovation competition

o Lifecycle of the asset

o Rapid growth = increasing demand for new infrastructure to

support economic growth and improved quality of life

o Balanced budget context

o Superior procurement methodology (on-time, on-budget, with

value for money)

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o Traditional build is the right approach for majority of projects ~80+%

o P3s an option for large/complex projects in the $100+ million range

o P3s widely used and well established in Canada and internationally

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o Compare traditional approach to P3 approach taking into

consideration the lifecycle of the asset

o Must be value for money and other factors confirmed in due diligence

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Due

Diligence

RFQ

Issue RFP

Issue

Proponent

Evaluation

and Partner

Selection

Construct

Government

Approval

Proponent short-list and 1st

Fairness Advisor Report released

Value for Money Report and 2nd

Fairness Advisor Report released

Market sounding to test

interest and get feedback

Projects:

9 Joint-use schools

Projects:

Swift Current Long-Term Care Centre

Government

Approval &

Agreement Signed

P3 Advisors

Retained

VFM

Confirmed

Assessment and Procurement Process

X Cost more

X Quality is compromised

X Hurt local construction sector

X Privatization

X Allow government to avoid debt

X Shrouded in secrecy

X Lead to public sector job loss

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Value for money for taxpayers

On-time delivery and cost certainty - performance-based contracts

Long-term warranty on infrastructure – e.g. 30 years

Expedite priority infrastructure rather than deferring to future

Opportunity for innovation

Public sector retains ownership and directs service delivery

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o Education ministry leads design process and technical work

o SaskBuilds leads review of P3 financing and development options

(with expert advisors)

o School divisions involved throughout the process

o Government decides core design and procurement method