To analyse and apply each model to the project under consideration, the following steps should be followed:
• Identify service categories included in the public private partnership model
• Compare the option of procuring the services from the private sector as part of a public private partnership, against the option of service provision by the public sector
• Provide the rationale for the grouping of service categories (for example, existing interrelationships between services)
To reach an overall conclusion on the merits and suitability of the project delivery option being considered, the following 'tests' may be applied:
• Is the option considered feasible? For example, if there are major issues associated with the particular option, can these be mitigated? (e.g. through contractual measures such as the performance or payment regime, through the bid evaluation process or through practical measures)
• Does the option meet the project objectives identified by the stakeholders?
• Overall value for money assessment (refer to section 3.2.13 for further detail)
The project delivery options determined at this stage will be refined by the risk allocation.
Appendix 2 provides a summary and examples of public private partnership models that have set precedent in Australia and overseas.