The Public Sector Comparator (PSC) is one of a range of assessment criteria used during a Partnerships Victoria procurement process. The PSC estimates the hypothetical risk-adjusted cost if a project were to be financed, owned and implemented by government. The PSC is also based on the most efficient form and means of government delivery.
The PSC is used at key points such as the decision whether or not to deliver a project under the Partnerships Victoria model and in the comparison of private sector bids.
The PSC comprises four components:
• The raw PSC-provides a base costing under the public procurement method. This includes all capital and operating costs, both direct and indirect, associated with building, owning, maintaining and delivering the service or underlying asset over the same period as the term under the Partnerships Victoria proposal and to a defined performance standard as required under the output specification
• Retained risk-any risk not to be transferred to a bidder. The cost of retained risk is included to provide a comprehensive measure of the full cost to government in a PSC.
• Competitive neutrality adjustments-these remove any net competitive advantages that accrue to a government business by virtue of its public ownership, allowing a fair and equitable assessment between a PSC and bidders
• Transferable risk-any risk transferable to a bidder such as construction costs, construction delays and materials cost escalation.