3.1 Relationship of TOC to the government planning framework for resources

An alliance addresses the capital project required to enable the government approved uplift in specified community services that have been defined in an approved Business Case. In the context of this Guidance Note, the Business Case will also document the recommendation to use alliance contracting to deliver the capital project.

The government support for a Business Case investment proposal can be thought of in the following resourcing terms:

•  Non-capital-the changes required to current practices and non-capital resourcing levels to achieve the uplift in community services; and

•  Capital-the changes required to capital resources to achieve the uplift in community services including:

-  the alliance project; and

-  other capital requirements outside the alliance.

Government will be interested in understanding the financial performance of its agency in delivering the approved Business Case parameters and the outcomes resulting from the application of both the non-capital and capital resources.

The following diagram illustrates the relationship between the alliance scope of works and TOC and the other elements of the government resource-planning framework.

Figure 3: TOC in Context