It's almost comical that they call that a "feedback" letter. Though I don't think it's all that hard to find things to improve with a little introspection.
My results came in and I was just rejected, so "alternate" is definitely a step above.
The Natural Sciences and Engineering Research Council of Canada (NSERC) Scholarships and Fellowships selection committees have recently completed their evaluation of all applications received in the current competition. I regret to inform you that your application did not score highly enough to be funded, and you will not be offered an award.