The value analysis is a quantitative and qualitative comparison of a Traditional Procurement compared to a P3 procurement. Value in a P3 can be generated in a number of ways, including risk transfer, economies of scale, efficiencies, innovation, integration and price and schedule certainty.
Expert assistance will likely be required for the detailed costing analysis required to develop the cost estimates for the quantitative comparison. This may be provided by a Service Delivery Ministry branch or section, such as Cost Management, Capital Projects Division, or by external advisors. Any external advisors, e.g. financial, contractors or engineers, would be excluded from participating on proponent teams.
Financial models are developed for each procurement approach and compared to determine which approach generates the best value for money. The financial model for the Traditional Procurement is referred to as the "PSC" while the model for the P3 is referred to as the "Shadow Bid."