The raw public sector comparator represents the base costing of the reference project. It does not include any allocation of value for risks and contingencies that may affect cash flows.
Cost categories are likely to be project specific but, as a guide, the raw public sector comparator should include:
∙ site acquisition
∙ design, procurement and construction
∙ routine maintenance
∙ major maintenance (infrequent rehabilitation/refurbishment)
∙ amounts paid to advisers and consultants
∙ other transaction costs
∙ revenues received by government including those from end-users, third parties, Commonwealth subsidies, sale of surplus project-related land or assets, and residual asset values at the end of the project life
∙ administration and overheads including contract management, reporting, use of agency premises and senior management time;
∙ all other direct and indirect costs.
It is important that the raw public sector comparator fairly reflects the true base cost of satisfying the output specification. It is not the average cost of the agency's existing portfolio of assets. In practice, public sector comparator costs are likely to be required to be developed from first principles. Similarly, any revenues that would be collected by the government under traditional procurement should be reflected in the public sector comparator. These would include user charges, Commonwealth subsidies, and proceeds of sale of assets at the end of the project.