As is the case with the development of the construction efficiencies discussed earlier, efficiencies related to operations, maintenance and rehabilitation (OMR), or life cycle, can form an integral part of the recommendations presented in a procurement analysis. Such efficiencies can be determined based on a detailed review of existing PSC life cycle budgets, and comparing them to current market place experience and practice to either confirm estimates or identify cost areas where efficiencies would be expected.
Once developed, such efficiencies inform the overall value-for-money proposition and benefits of a particular procurement method. To be considered accurate, efficiencies should be explored within the specific context of the project and the capacity, capabilities, policies and operating practices of the owner. As described with capital cost efficiencies, OMR cost efficiencies should identify a range of the most likely outcomes relating to specific elements of the OMR requirements, and based on the characteristics of the anticipated PPP model. These estimates also need to be carefully considered to ensure that adjustments do not double count amounts included in the risk analysis.