The PSC establishes a benchmark for comparison purposes. However, the PSC alone does not allow an estimation of potential P3 costs/benefits. As part of the Detailed P3 Analysis, the detailed Shadow Bid is developed to estimate the potential costs and to identifying areas where expected benefits could occur. This Shadow Bid is developed by modeling the project as if it were delivered as a P3 procurement. The analysis should include one-time costs of establishing the partnership, including the procurements process, as well as, costs associated with monitoring the contract and liaising with the partner through the life of the contract.
The detailed shadow bid should be prepared with the assistance from experts in financial modeling, cost management and project delivery. Private sector advisors may be used but they cannot then participate on a Proponent team.
The shadow bid is an extension of the preliminary analysis completed during the feasibility assessment