Following are the criteria that each project should be screened against:
Criteria Category | Criteria | Resources Required | Note |
Demand | • Are the long term operation or service needs relatively stable and/or predictable? | • Sponsoring business unit | 1 |
Duration | • Is the service life of the capital asset at least 20 years? • Is there a long term maintenance, operation, or service need associated with the capital project? | • Sponsoring business unit | 1 |
Innovation | • Is there scope for innovation in the design of the solution and/or the provision of operation, maintenance, and services? | • Sponsoring business unit • Technical advisor • P3 advisor | 1 |
Legal Barriers | • Are there any legislative or regulatory prohibitions to a P3 approach for the project (that cannot be changed in the short term)? • What are the opportunities and challenges from a legal perspective? | • Legal advisor | 1 |
Market | • Are there likely to be at least 3 bidders for the project if it is procured as a P3? • Are there precedent projects (examples of similar projects) in other jurisdictions? • Has The City received unsolicited proposals for P3-style delivery of the project, or similar projects? • Does the private sector have the expertise to deliver on the performance specification? | • Sponsoring business unit • P3 advisor • Technical advisor | 2 |
Payment | • Can payment be tied to measured performance? • Is there a potential revenue opportunity for the private | • Sponsoring business unit • P3 advisor | 1 |
Project Risk | • Are there risks associated with traditional procurement that might be better managed by a private partner? | • Sponsoring business unit • P3 advisor • Technical advisor • Legal advisor | 1 |
Project Size | • Is the estimated capital cost significant enough to attract the market? o $100M or more, market has definite interest o Between $20M and $100M, market interest may vary based on the asset class (e.g. water projects, buildings may be suitable) • Can the project be bundled with one or more other similar projects to achieve a larger project size more suitable for P3? | • Sponsoring business unit • P3 advisor • Technical advisor | 2 |
Specifications | • Can the capital asset and related services be defined in a performance or output specification? | • Sponsoring business unit • P3 advisor • Technical advisor | 1 |
Land | • Is the land for the project being provided by The City? | • Sponsoring business unit | 1 |
Current State | • Is the project new build or greenfield? Renovations are, in general, less suitable for P3, however every case is different. | • Sponsoring business unit • Technical advisor | 1 |
Integration | • Is the project relatively independent of other City projects, infrastructure, or control systems? | • Sponsoring business unit • Other relevant Business Units • Technical advisor | 1 |
Human Resources | • Does the project, if delivered by a private partner, obviate any current City staff positions? | • Sponsoring business unit • HR department | 1 |
1 Resources identified to undertake assessment apply criteria to determine answer
2 Additional research / undertaking may be required, including conducting preliminary market sounding to determine private sector interest for project scope and size; identifying similar projects in other jurisdictions, including relative successes/failures; and determining whether private sector has ability to deliver project requirements.
If the balance of the answers to these criteria is positive toward P3 delivery, then the project may be suitable for a P3 delivery model and worthy of more in-depth analysis in the strategic assessment. It may be possible at this stage to identify the most likely suitable P3 model as well.