Toronto South Detention Centre
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VALUE FOR MONEY ASSESSMENT TORONTO SOUTH DETENTION CENTRE MAKING PROJECTS HAPP E N : TORONTO SOUTH DETENTION CENTRE - P A G E 1 - MAKING PROJECTS HAPP E N : TORONTO SOUTH DETENTION CENTRE - P A G E 2 - MAKING PROJECTS HAPP E N : TORONTO SOUTH DETENTION CENTRE - P A G E 3 - MAKING PROJECTS HAPP E N : TORONTO SOUTH DETENTION CENTRE - P A G E 4 - MAKING PROJECTS HAPP E N : TORONTO SOUTH DETENTION CENTRE - P A G E 5 - ARTIST’S RENDERING OF THE TORONTO SOUTH DETENTION CENTRE Image Courtesy of Integrated Team Solutions Highlights of the Toronto South Detention Centre: Size 67,000 square metres Capacity for 1,650 inmates Number of Beds Capacity for 320 intermittent inmates State-of-the-art integrated technology, safety and security standards Security enforced by expertly trained staff. Staff to im p l e m e n t current best-practices for i n m a t e rehabilitation. Environmentally Leadership in Energy and Environmental Design (LEED) Silver certification. Sustainable Design Highlights include: • 7.8 million mega joules of energy to be provided by ground source heat pumps; • ground source heat pumps will reduce the building’s natural gas consumption by a minimum of 40 per cent; • 75 per cent of construction waste will be diverted from landfill; • a 20 per cent reduction in water use through low-flow technologies; and • low emitting volatile organic compound materials will be used for adhesives, paints, carpet and sealants. MAKING PROJECTS HAPP E N : TORONTO SOUTH DETENTION CENTRE - P A G E 6 - Table of Contents Summary ......................................................................................................................... 8 Project description ...................................................................................................... 10 Competitive selection process timeline .................................................................. 11 Project agreements .................................................................................................... 12 Achieving value for money ....................................................................................... 15 © Queen’s Printer for Ontario, 2010 MAKING PROJECTS HAPP E N : TORONTO SOUTH DETENTION CENTRE - P A G E 7 - Summary ReNew Ontario 2005-2010 is a $30-billion-plus under two different delivery models expressed in strategic infrastructure investment plan to dollar values measured at the same point in time. modernize, upgrade and expand Ontario’s public infrastructure. Value for money is determined by directly c o m p a r i n g the cost estimates for the following two Infrastructure Ontario is an essential component of delivery models: the ReNew Ontario plan. The Crown Corporation ensures that new infrastructure projects are delivered on time and on budget. Model # 1 Model #2 Traditional project delivery Alternative financing and The Toronto South Detention Centre (TSDC) is being (Public sector comparator) procurement delivered under the Province’s Alternative Total project costs that Total project costs incurred Financing and Procurement (AFP) model. would have been incurred by the public sector to by the public sector to deliver the same The project includes a 1,650-bed maximum security deliver an infrastructure infrastructure project with facility for adult inmates, including those with project under traditional identical specifications procurement processes. using the AFP approach. special needs. This new and modern facility will replace the Toronto Jail. The cost difference between m o d e l #1 and model #2 is the estimated value for money for this project. The Toronto South Detention Centre project also includes the construction of the Toronto Intermittent The value for money assessment of the Toronto Centre, which is a facility to accommodate those serving primarily weekend sentences. South Detention Centre project indicates estimated cost savings of 7.8 per cent or $66.8 The Toronto South Detention Centre will be located million, by using the AFP approach in on the south portion of the Mimico Correctional comparison to traditional delivery. Centre property in west Toronto (Etobicoke) a n d wi l l target Leadership in Energy and Environmental Design (LEED) Silver certification. LEED buildings focus on healthy indoor environments, reduced greenhouse gas emissions and efficient use of energy, water and other resources. The public sector retains ownership, control and accountability of the facility. The purpose of this report is to provide a summary of the project scope, the procurement process and the project agreement, and to demonstrate how value for money was achieved by delivering the Toronto South Detention Centre project through the AFP process. KPMG completed the value for money assessment of the Toronto South Detention Centre project. Their The value for money analysis refers to the process of assessment demonstrates projected cost savings of developing and comparing the total project costs MAKING PROJECTS HAPP E N : TORONTO SOUTH DETENTION CENTRE - P A G E 8 - 7.8 per cent by delivering the project using the AFP model, versus what it would have cost to deliver the project using a traditional delivery model. Property One Consulting acted as the Fairness Monitor for the project. They reviewed and monitored the communications, evaluations and decision-m a king processes associated with the Toronto South Detention Centre project, ensuring the fairness, equity, objectivity, transparency and adequate documentation of the process. Property One Consulting certified that these principles were maintained throughout the procurement process (please see letter on page 4). Infrastructure Ontario is working with the Ministry of Community Safety and Correctional Services to develop the facility, which will remain publicly owned, publicly controlled and publicly accountable. MAKING PROJECTS HAPP E N : TORONTO SOUTH DETENTION CENTRE - P A G E 9 - Project description Background The Toronto South Detention Centre will be built on ReNew Ontario 2005-2010 is a $30-billion-plus the south portion of the Mimico Correctional Centre strategic infrastructure investment plan to property in west Toronto (Etobicoke). modernize, upgrade and expand Ontario’s public infrastructure. The project includes a 1,650-bed maximum security facility for adult inmates. This new and modern Infrastructure Ontario is an essential component of facility will replace the Toronto Jail. the ReNew Ontario plan. The Crown Corporation was created in 2005, to ensure that infrastructure The Toronto South Detention Centre project also projects are delivered on time and on budget. includes the construction of the Toronto Intermittent Centre to accommodate those serving primarily Under the ReNew Ontario plan, projects are weekend sentences. assigned to Infrastructure Ontario by the provincial government, which uses a made-in-Ontario project Integrated Team Solutions will design, build, finance delivery model called Alternative Financing and and maintain the Toronto South Detention Centre Procurement (AFP). AFP brings private-sector to Leadership in Energy and Environmental Design expertise, ingenuity and rigour to the process of (LEED) Silver certification. managing and renewing Ontario’s public infrastructure while shifting risks associated with cost LEED buildings focus on healthy indoor and schedule overruns away from the public environments, reduced greenhouse gas emissions sector. and efficient use of energy, water and other resources. TSDC LEED highlights include: Ontario’s public infrastructure projects are guided by the five principles set out in the provincial • 7.8 million mega joules of energy will be government’s Building a Better Tomorrow provided by ground source heat pumps; Framework, which include: • ground source heat pumps will reduce the building’s natural gas consumption by a 1. public interest is paramount; minimum of 40 per cent; 2. value for money must be demonstrable; • 75 per cent of construction waste will be 3. appropriate public control and ownership must divided from landfill; be preserved; • a 20 per cent reduction in water use 4. accountability must be maintained; and through low-flow technologies; and 5. all processes must be fair, transparent and • low emitting volatile organic compound efficient. materials will be used for adhesives, paints, carpet and sealants. Project Scope The Ministry of Community Safety and Correctional Job Creation Services is replacing aging detention centres to The project will help provide economic stimulus address health and safety issues, including by creating and supporting thousands of jobs. inefficiencies of design, technology and space. Labour will largely be drawn from the Greater Older facilities do not meet the current operational Toronto Area. A t t he peak of construction, i t i s requirements of a modern correctional service and e s ti m a t ed that 500 to 550 workers will be on site daily. the current facilities are experiencing significant and growing remand pressures. MAKING PROJECTS HAPP E N : TORONTO SOUTH DETENTION CENTRE - P A G E 10 - Competitive selection process timeline The Province has entered into a project agreement price, operational and management plans and with Integrated Team Solutions (ITS) to design, build, financing backing, in accordance with the finance and maintain the pr oj ec t. The procurement evaluation criteria set out in the RFP. stages for the project were as follows: ITS includes - EllisDon Corporation, Fengate Capital June 3, 2008 Management Inc., LPF Infrastructure Fund,