ARCHIVE - 1. Introduction

1.1 Description of the engagement

The Correctional Service of Canada Review Panel (the "Panel") has requested Correctional Services Canada ("CSC") to develop a cost estimate for a new correctional facility that could incorporate the correctional activities of existing facilities located in the Kingston area into one footprint (the "complex"). The complex would be designed in order to incarcerate multiple populations. The objective of CSC's analysis is to:

• determine the cash costs (capital, operating and capital maintenance costs) required for the new complex;
• compare these costs against the expected cash costs for the status quo facilities; and
• ascertain whether the results of the analysis warrants recommending further study to investigate the costs of the complex.

The Panel has engaged Deloitte to:

• independently review the estimates developed by CSC for comprehensiveness, and wherever possible, reasonableness; and
• Guide the refinements in the cost estimate as required.

1.2 Framework for the review

The following structure was adopted for the review.

• Scope and Comparability: Review the scope of the analysis and review the comparability between the status quo facilities and new complex facility (the "facilities").
• Capital Cost Assumptions: Review the capital costs (e.g., materials and labour) associated with the construction of the facilities including related costs such as design/engineering.
• Operating Cost Assumptions: Review operating costs of the facilities which are predominantly labour costs but also additional expenses for operating, maintenance, offender related costs and allocations.
• Lifecycle or Capital Maintenance Costs: Review the capital expenditures that are incurred over the lifetime of the facilities. This may include major refurbishments, replacement of major components or equipment, etc.

Date modified:

2015-12-02