Once an agency has identified service-related infrastructure needs, it can proceed to define specific projects.
In order to seek approval to procure a new capital works project, an agency must prepare a business case11 for submission to the BCC, justifying the requirement for additional capital works. The business case must include:
(a) An economic appraisal12
(b) A financial appraisal13
(c) A value management assessment14
(d) For items (a), (b) and (c) above, analysis of all feasible options (including non-capital solutions) identified and evaluated on a whole-of-life basis taking the environmental, social and economic context into consideration
(e) Any cross-agency impacts
(f) A preliminary summary of proposed accounting treatment
(g) Financial Impact Statement15
In addition, agencies (other than State-owned corporations) must demonstrate compliance with the NSW Government Procurement Policy16. State-owned Corporations must demonstrate compliance with the Guidelines for Assessment of Projects of State Significance 17 and the Reporting and Monitoring Policy for Government Businesses 18.
When preparing their business cases for a capital works project, agencies (other than State-owned corporations) need to comply with the Government’s Agency Accreditation Scheme for construction projects 19. The scheme applies to the planning and delivery phases of construction procurement by all agencies (other than State-owned corporations).
Agencies that are not accredited for either the planning or delivery phase may be required to engage external support for that phase of their projects, depending on the risk profile of the project.
For certain projects agencies may request the BCC to approve the procurement of infrastructure concurrent with using private finance.
In such cases the actions outlined in Phase 1 of Chapter 3 must be completed prior to submitting a proposal to BCC. This will include preparation of a procurement strategy plan which should analyse the various options for procuring a project, including conventional delivery and privately financed projects.
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11 See Appendix 2 for further details on what should be included in the business case. State-owned Corporations only need BCC approval for Budget funded proposals and PFPs.
12 Refer to the Guidelines for Economic Appraisal at http://www.treasury.nsw.gov.au/pubs/tpp97_2/ea-index.htm.
13 Refer to the Guidelines for Financial Appraisal at http://www.treasury.nsw.gov.au/pubs/tpp97_4/guidline.htm.
14 Refer to the Total Asset Management Manual at http://www.gamc.nsw.gov.au/tam2000.
15 Refer to Appendix 5.
16 Available from the NSW Treasury Website at http://www.treasury.nsw.gov.au/pubs/tpp2004.tpp04-1.pdf .
17 Available from the NSW Treasury Website at: http://www.treasury.nsw.gov.au/pubs/tpp2002/tpp02-4.pdf
18 Available from the NSW Treasury website at: http://www.treasury.nsw.gov.au/pubs/tpp2005/tpp05-2.pdf
19 Further details are available at http://www.treasury.nsw.gov.au/procurement/procure-intro.htm .