According to the approach developed by Deloitte, based on best practices, there are three levels of assessment that may be applied to determine if a project should be approved for P3 delivery, described as follows:
Assessment Level | Description | Possible Outcomes |
1 - Screening Assessment | High-level comparison of project characteristics against criteria to assist in determining potential suitability of a project for P3 delivery. | 1. Flag as potential P3 project 2. Flag for traditional procurement |
2 - Strategic Assessment | A more detailed examination of the risks, costs, market of service providers, and objectives and constraints to identify, at the strategic level, if a project should be procured as a P3, which P3 delivery model(s) is most suitable, and whether or not further assessment is justified. | 1. Recommendation for traditional procurement 2. Recommendation to procure project as a P3, including recommended P3 delivery model. 3. Recommendation to undertake Value for Money Assessment prior to deciding on delivery model. |
3 - Value for Money Assessment | An extension of the Strategic Assessment, including quantification of project risks and a preliminary comparison of the relative cost of traditional procurement and P3 procurement through cash flow modelling. | 1. Recommendation for traditional procurement 2. Recommendation to procure project as a P3, including recommended P3 delivery model. |