The reference project identifies the most likely and efficient form of public sector delivery that would be used to satisfy all elements of a particular output specification. In the event that the service requirement is not one that has been previously delivered by government, the reference project should instead identify the most efficient, publicly-financed delivery method available to meet the output specification.
The reference project is the benchmark against which the public private partnership project option will be measured. As such, it is vital that all elements of the output specification are included to ensure appropriate like-with-like comparison. In other words, the reference project effectively represents a conforming bid from government. The reference project is also the method by which the project would be delivered if the public private partnership project option proves to be unacceptable.
While the output specification is expressed in terms of desired services, the reference project should include designs and other such input details that are required to demonstrate how it would satisfy the output specification.
The reference project should be predicated on the agency's existing rules, regulations, policies and procedures in relation to procurement.
The level of detail in the reference project should be commensurate with the project value. The reference project should detail all material whole-of-life costs and revenue items, including:
∙ external revenue sources
∙ initial capital expenditure
∙ ongoing maintenance
∙ operating costs
∙ upgrade and refit costs
∙ any other contract payments (e.g. termination arrangements)
∙ any agency administrative costs.
These cost and revenue items will be quantified in the development of the public sector comparator.