The conceptualise phase begins with a review of the relevant government party long-term service plan, and the need for a continuing service provision. The asset planning should align with the government party's asset management strategy and consider the requirements of the Victorian Government's Asset Management Accountability Framework.19
An investment logic map can be a useful tool in the conceptualise phase to:
• identify the key problem(s) that need to be addressed;
• identify the major benefits that will accrue if they are addressed;
• explore the range of potential strategic interventions and identifies the preferred strategic response to address the problems and achieve the benefits; and
• identify the likely solution, at a strategic level.
It is likely that the service requirements will differ materially from that in the current project given the passage of time. For instance, models of care have changed significantly in the health care and corrections sectors over the past 20 years.
The contract director, working with policy and or service areas of the government party, should prepare a preliminary business case (if the project is high-value, high-risk) or a strategic assessment (if the project is below the high-value, high-risk threshold). Either document can be prepared in-house if sufficient expert resources are available, otherwise expert adviser support may need to be engaged. Once completed, a gate 1 (strategic assessment) review should then be undertaken, arranged through the Gateway Unit in DTF.
The preliminary business case / strategic assessment will be submitted to the portfolio Minister, and to Cabinet as necessary, to determine whether the service need is high priority and whether the project should proceed to phase 2, 'prove'.
If the proposed project does not receive Ministerial/Cabinet approval to proceed to phase 2, it may mean the service is no longer valued highly, and the provision of the service is to be discontinued upon contract expiry. If the service is discontinued, it is likely the government party would either:
• arrange to dispose of or sell the underlying project asset(s); or
• decommission the project asset(s) that have been used to provide the service.
Either of these options will provide the government with an orderly exit from the existing Partnerships Victoria project. Under this route, the contract director will still need to ensure the services continue until contract expiry, and an orderly exit the contract consistent with contractual obligations. A plan and resourcing will be required (this is addressed below in section 17.5).
______________________________________________________________________________________________
19 DTF website <http://www.dtf.vic.gov.au/Investment-Planning-and-Evaluation/Understanding-investment-planning-and-review/What-is-asset-management>