The PFP approach also strongly reflects the total asset management approach adopted by the NSW Government. The Government's Total Asset Management policy was first released in 1992 to improve asset management practices in agencies. This requires a comprehensive and structured approach to acquiring, maintaining and upgrading physical assets to provide services to the community. Its purpose is also to remove agency bias towards the acquisition of new assets, often achieved at the expense of maintaining existing assets.
The PFP approach achieves this by 'packaging' acquisition and maintenance into a single contract.
Our 2005 performance audit report Implementing Asset Management Reforms found that the Total Asset Management policy provides a best practice framework to improve asset management in NSW.