01474084

Component

https://doi.org/10.3141/2346-04

http://scholar.google.com...ayer&publication_year=2013

Value for money (VfM) analyses have been used in evaluating various approaches to highway projects to help government officials determine whether a public–private partnership (PPP) is likely to be preferable for financial reasons to conventional approaches. VfM is a tool that focuses primarily on the financial impacts of procurement models from the perspective of the agency sponsoring a project. Nonfinancial impacts, such as benefits to users or nonusers of a facility, are not generally considered or are relegated to a qualitative evaluation. Benefit–cost analysis (BCA) has been used by public agencies in planning and project development phases to determine whether an investment is worth making. BCA is a more comprehensive tool than VfM that is capable of quantifying and monetizing nonfinancial impacts, such as benefits to users or nonusers that may accrue from earlier delivery of a project. This paper discusses how BCA considerations may be incorporated into a more analytically comprehensive approach to comparing PPPs with conventional procurement. The approach uses some results from VfM analysis and adds new items that are consistent with a BCA approach. The paper illustrates the approach with a hypothetical project.

01499884

13-3014

English

pp 32–39

2013

Transportation Research Record: Journal of the Transportation Research Board

9780309286848

Print

Figures (1) ; References (12) ; Tables (2)

Alternatives analysis; Benefit cost analysis; Procurement; Public private partnerships

Administration and Management; Economics; Finance; Highways; Policy; I10: Economics and Administration

TRIS, TRB, ATRI

Feb 5 2013 12:37PM

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