Procurement model for Lansdowne approved
Committee votes to go for tried and true `design bid build' method with OSEG
Lansdowne 2.0 took a significant step forward Tuesday when the city's powerful finance and corporate services committee approved the format of the contract to design and build a new event centre and north-side stands at Lansdowne Park.
The 5,500-seat event centre and the 11,200-seat grandstand are the first stages in the overall $419-million project that will eventually include two residential towers of 40 and 25 storeys atop a retail podium, and new underground parking. Committee members voted to proceed with a “design bid build” (DBB) model with its partner Ottawa Sports and Entertainment Group and OSEG'S architect, Brisbin Brook Beynon.
DBB was one of eight procurement models considered for the project and the city hired independent consultant KPMG to study and rank them. DBB is described by KPMG as a model “in which the owner awards two distinct and sequential contracts for the design and construction works. The design is reviewed and approved by the owner. Once the design is complete, the owner procures the construction works based on that design.”
KPMG ranked three other procurement models higher than DBB, but the committee accepted staff recommendations to go with the tried and true DBB model, which Ottawa has used for other major projects like the Ādisōke public library and $232-million combined sewage storage tunnel. While some of the other more innovative procurement models carried less risk and opened the Lansdowne 2.0 project to bids from other builders, the city says DBB would be the fastest way to proceed and is the one the city has the most experience using.
One thing the city wants to avoid is running afoul of the new Ontario Building Code, a massive reworking of the code that is expected to be introduced this year. The city would have until early 2025 to submit its design or risk needing to make time-consuming and potentially costly changes to meet the new code.
While Tuesday's meeting was to make a decision about a specific and highly technical aspect of the project, at times it seemed more of a referendum on the merits of Lansdowne 2.0 itself. There were a dozen public delegations, some urging councillors to hit the brakes while others wanted the pedal to the metal.
Marnie Peters of the advocacy group Accessibility Simplified, said the TD Place arena is a nightmare for those with physical challenges and needs to be replaced.
Darrel Cox, executive director of the Glebe BIA, said Ottawa is losing business because of the obsolete and crumbling facilities at Lansdowne.
“If the current facilities are not updated or enhanced and designed to meet accessibility standards, Ottawa will lose customers, events and visitors to competitors and forgo the potential for hundreds of millions of dollars in local economic impact,” Cox said. “Our reputation as a major event-hosting destination will be eroded.”
On the other side, June Creelman of the Glebe Community Association urged caution, pointing to the city's hard lessons from the LRT.
“The LRT inquiry concluded that it was political time pressure that drove many of the decisions around the LRT,” Creelman said. “But with Lansdowne, these are false time pressures. Sure, you have voted to go ahead with this project, but there is no emergency.
“Racing to avoid complying with the new building code is unwise. Would you buy a new computer if it had an operating system that's about to expire?” she asked.
The Glebe Community Association has appealed the project rezoning application to the Ontario Land Tribunal. That appeal has yet to be heard.
The recommendation was accepted by the committee in a 10-2 vote, with councillors Rawlson King and Shawn Menard opposed. The committee's decision must still be approved by city council as a whole.
“It's what I expected, but it's still disappointing to me that we're resigned to moving forward with this project,” Menard said after the meeting. “They say the best way to go forward is with competition and if they (OSEG) truly are the best designer and giving us the best value, there's no reason they shouldn't win that competition. Or we get other ideas with other bidders that provide a better result. Sole sourcing is never a good idea.”
One advantage of the DBB model is it gives city council a second chance for a go/no go decision on Lansdowne 2.0.
“Under the recommended option it would go to market, we'd solicit bids from the construction industry and then return to council to approve that final price,” said Will Mcdonald, the city's chief procurement officer.
“That will all happen before any construction activity takes place.”
That final decision is expected in the third quarter of 2025, Mcdonald said.
Racing to avoid complying with the new building code is unwise. Would you buy a new computer if it had an operating system that's about to expire?