The efficiency with which the New South Wales public sector uses resources affects the delivery of services to and the welfare of its residents. Balancing increasing service delivery needs with limited resources means that the NSW Government needs to ensure capital related resource allocation decisions are well timed, offer value for money, provide sound management of risks and are consistent with Government priorities and objectives.
The purpose of the Guidelines for Capital Business Cases is to strengthen the framework and identify the requirements for all public sector agencies to undertake business cases on a consistent basis to support the:
◼ contribution to the strategic priorities of Government as contained in the NSW State Plan and the NSW State Infrastructure Strategy
◼ prioritisation of resources to meet Government service delivery objectives or priorities
◼ efficient, effective delivery of planned services by agencies.
A business case provides a case for change by examining total lifecycle costs, benefits, risks and implementation requirements. It is also a reference for the procurement and implementation of a project or program. Critical parameters such as cost, schedule, quality, social and environmental issues are documented in a manner that demonstrates agency capability for timely delivery of the project or program.
Applying these guidelines will mean that agencies submitting business cases they will be better equipped to demonstrate that the proposal is the best:
◼ way to achieve the strategic objectives or priorities of Government
◼ use for the proposed resources
◼ way to procure, implement and maintain the planned services.
Systematically applying these guideline will improve resource allocation decisions and the capacity of agencies developing and delivering new capital related services.
Benefits to agencies and the Government include:
◼ Standardising the content requirements and information base to improve resource allocation decisions, helping assess relative priorities, competing demands and confirming affordability.
◼ Reinforcing longer term State capital expenditure forecasting and strategic fiscal planning, and demonstrating consideration of future demand pressures and longer term prevention and early intervention strategies.
◼ Demonstrating links to the State Plan and the State Infrastructure Strategy, Asset Strategy Plans, Results and Services Plans, Statements of Business Intent, Statements of Corporate Intent and ICT Frameworks.
◼ Broadening the range of options being considered by considering alternatives to new capital including better asset utilisation, early intervention and demand management.