Edmonton and Calgary P3 schools project moves to next stage
Government invites qualified P3 applicants to come forward Edmonton... The Alberta government has invited construction industry applicants to submit their qualifications for the public-private partnership (P3) new schools pilot project. The project, announced in June, will result in the construction of 18 new schools in Edmonton and Calgary.
The Request for Qualifications (RFQ) stage allows industry to submit documentation outlining their qualifications to complete the project. The RFQs will be evaluated by a government committee, which will score the submissions and select, if applicable, the top three proponents. The deadline for RFQ submissions is November 29.
"This project has garnered a lot of interest from industry at home and abroad," said Minister of Education Ron Liepert. "I'm pleased to see that we are moving forward and are on schedule to meet our project target completion date of September 2010."
Selection of the top three RFQ proponents is scheduled for December. Those proponents will then be invited to participate in a Request for Proposals (RFP) stage from which the most competitive bid will be awarded the P3 project. Critical to the process is demonstrating the project will provide cost savings to taxpayers.
"Government is looking at innovative ways to address school infrastructure needs and the P3 approach has proven successful," said Minister of Infrastructure and Transportation Luke Ouellette. "The recently opened southeast leg of Edmonton's Anthony Henday Drive is one example of a P3 project that provided savings for taxpayers and reduced delivery time by two years."
The final contract for the new schools pilot project is expected to be awarded by mid 2008, with construction scheduled to begin as early as fall 2008 and a target completion of fall 2010. To ensure a fair, competitive bidding process, government will not release cost estimates until after the contract is awarded.
"This is an efficient and innovative way to build schools," said Associate Minister of Capital Planning Gene Zwozdesky. "It gives us a fixed price with cost certainty, earlier completion dates, long-term maintenance of major capital items (roofs, boilers, etc.), and gives school boards immediate ownership."
Government will evaluate the application of the P3 approach to future new school construction, including middle schools (grades 5-9), once the current P3 pilot project process is finalized. More information on the P3 pilot project, including school site locations and a P3 Q&A, is available at P3Project.
The government’s investment for new school infrastructure, as well as modernization and maintenance, totals more than $600 million for the 2007/08 fiscal year. Alberta’s 2007-10 Capital Plan includes funding for 88 new or major modernization projects, including 13 schools to be opened in 2007/08 across the province.Strengthening the education system is an important part of Premier Ed Stelmach's plan to secure Alberta's future by building communities, greening our growth and creating opportunity.
Backgrounder
Public-private partnership (P3) process for school construction
Design, Build, Finance, Maintain (P3) Process- Under this process, a private-sector partner is responsible for the design, construction, finance and maintenance of schools for 30 years. Once the schools are open, government makes regular payments to the partner for 30 years.
- Government is guaranteed a fixed price and delivery date. Risks such as construction cost inflation and weather-related delays are assumed by the private contractor. The contractor can be penalized for late delivery.
- Government also receives a 30-year warranty on the schools. Under traditional delivery, warranties are usually only one year.
- This "made-in-Alberta" approach to P3 school construction was developed using best practices from other successful public-private partnerships throughout the world as well as the very successful P3 ring road projects recently completed and currently under way throughout the province.
- The RFQ is used to determine potential partners' qualifications and to short-list potential partners to three proponents. Elements of a submission that are evaluated include the proponent's capacity to undertake the project (i.e., subcontractors and labour force) and financial capacity. RFQs usually take about two months to prepare, submit and review.
- Potential partners may be headquartered or operate in any part of the world.
- Potential partners are usually consortiums of architectural, engineering, construction, financing and maintenance companies.
- The RFQ submission deadline is November 29.
- The three successful potential partners identified by the RFQ are invited to submit proposals for the project.
- Proposals are evaluated against a public sector comparator (traditional method of delivery) to determine if they represent good value for government and taxpayers.
- The RFP submission deadline and selection is scheduled for July 2008.
- The successful proponent enters into an agreement with government.
For more information on the P3 pilot project, click on P3Project
Backgrounder
Questions and Answers
What will the project cost?
To ensure a fair, competitive bidding process, government will not release its cost estimates until after the contract has been awarded.
Why is a P3 being considered for school construction?
Public-private partnerships (P3s) can provide value and save money by having one group of contractors design, build, finance and provide maintenance for several schools at once, resulting in economies of scale.
What are the advantages of using a P3?
There can be many. Schools could be built and in service earlier than conventional delivery; government is guaranteed a fixed price and delivery date for the schools, which means risks such as inflation in construction cost and weather-related delays are borne by the contractor; and the work comes with a 30-year warranty, while most projects delivered conventionally only have one-year warranties.
How can you ensure the P3 won’t be more expensive?
The three proposals will be evaluated against a public sector comparator (traditional method of delivery) to ensure they represent good value for government and taxpayers. If clear benefits cannot be demonstrated, the project will not proceed as a P3.
Why are only three firms asked to submit proposals?
Three is the optimum number of final bids for most projects. That number gives the competitors a reasonable chance of being successful and still maintains a competitive process should one of the bidders withdraw.
Who will own the schools?
School boards will own the schools.
Custodial and janitorial services will remain the responsibility of school boards.
Can the schools be used for community events?
School boards, through their existing joint user agreements, will determine use and access to the new schools.
More information on the P3 pilot project is available at P3Project
Backgrounder
New Schools P3 School Project List
Calgary Board of Education
Community/School (Grade Structure) | Capacity |
| Saddle Ridge K-4 | 550 |
| Evergreen K-4 | 550 |
| Bridlewood K-6 | 600 |
| Cranston K-4 | 550 |
| Royal Oak K-4 | 550 |
| West Springs K-4 | 550 |
Calgary RCS School District
Community/School (Grade Structure) | Capacity |
| Evergreen K-6 | 600 |
| Cranston K-9 | 840 |
| Saddle Ridge K-9 | 840 |
Edmonton Catholic School District
Community/School (Grade Structure) | Capacity |
| Windermere K-9 | 500 |
| The Hamptons K-9 | 500 |
| Rutherford East K-6 | 500 |
Edmonton Public School Board
Community/School (Grade Structure) | Capacity |
| Carlton K-9 | 850 |
| Tamarack K-9 | 850 |
| Terwillegar Towne East K-9 | 850 |
| Belle Rive K-9 | 850 |
| Rutherford West K-9 | 850 |
| Hollick-Kenyon K-9 | 850 |
More information on the P3 pilot project is available at P3Project
