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P3 Toolkit

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P3-VALUE: Public Sector Comparator Tool User Manual

December 27, 2013

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Chapter 2. Quick-Start Guide

While the User Manual provides detailed guidance on the PSC Tool, users may also refer to the "Quick-Start" version below for step-by-step instructions.

ACCESSING THE PSC TOOL
  1. Open the PSC tool.
  2. Click "Enable Editing" and/or "Enable Content" on THE yellow bar across top of screen.
  3. Read the disclaimer and Click "I accept."
MANAGING INPUT FIELDS
  1. Navigate to the "Assumptions" SHEET.
    This sheet contains project data that provides the basis for constructing a PSC.

    Input DATA in the light blue cells.
    1. Define the project.
      1. Select a scenario from the "Traffic Scenario" drop-down menu.
        Note: See the blue sheets, including "Simple Toll Example" and "Variable Toll Example" for pre-populated toll rate and traffic volume assumptions and "Toll Scenario Template" for a blank toll calculation sheet.
      2. Check all the applicable boxes under "Project Delivery Structure" to reflect the project/scenario.
        Note: Depending on what boxes are selected, irrelevant inputs cells may turn from light blue to black.
      3. Complete the "Timing" table with appropriate dates in 'YYYY' format or in number of years.
    2. Estimate project costs.
      Note: Enter costs in base year dollars ( not current or year of expenditure dollars), consistent with the base year defined in step a) above.
      1. Input planning and development costs into the "Project Costs" table as dollars (in Column E) and include start and end dates (in 'YYYY' format) for when those costs are incurred.
      2. Itemize "Design & Construction Costs" by asset in the relevant table. Input the "Asset Type" (in Column D), cost in dollars (in Column E), and a breakdown of the expenditure across the design and construction phase (up to 10 years) as a percentage.
        Note: The "Year" columns will turn from light gray to blue as values are input. The "Check Sum" value (Column P) should equal 100 percent once the costs are allocated to year of expenditure.
      3. Input operations and maintenance costs in the "Operating Costs" table as either a percentage of construction costs (in column E) or as a dollar figure (in column F).
        Note: If a user chooses to input O&M costs as dollar values, the adjacent cells in column E black out so that the inputs are only either dollar values or percentages.
    3. Estimate project funding, financing, and revenue.
      1. If applicable, enter assumptions regarding toll revenue leakage (percentage), length of toll revenue ramp-up period (number of months), and value of additional revenues (in dollars) in the "Toll & Other Revenue" table.
      2. Enter funding resources as either a percent of construction cost (Column E) or dollar value (Column F) and allocate across the spending period (up to 10 years) in the "Funding" table.
        Note: The "Check Sum" value (Column Q) should equal 100 percent.
      3. Input the percent of project to be financed after taking into account other funding.
      4. Enter additional financing information in the "Financing" table. The types and values of inputs include:
        1. Start date, which reflects the construction start date
        2. Maturity, entered as the number of years
        3. Grace period, entered as the number of cash flow periods, based on the payment schedule entered in item 5 below.
        4. Issuance Fee and Interest Rate, entered as percentages
        5. Select payment schedule (semi-annual or annual)
        6. Select debt type (bond or "draw", i.e., bank loan)
        7. Annual Debt Service Coverage Ratio (DSCR), entered as a number
    4. Apply appropriate adjustments.
      1. Input inflation assumptions as percentages in the "Inflation" table.
      2. Use outputs from the Risk Assessment Tool to input the risk allocations and values of cost and schedule impacts in the "Risk Allocation" and "Risk Values" tables.
        Note: Refer to the FHWA Risk Assessment Tool and corresponding Risk Assessment Tool User Manual for information on obtaining appropriate outputs.
      3. Input the discount rate as a percentage.
        Note: Unless users assume no inflation, the discount rate reflected should be nominal, not real.
      4. Enter appropriate dollar values in the "PSC Adjustments" table to remove any differences between the public and private delivery options to ensure "competitive neutrality" (see Primer).
OUTPUTS
  1. Navigate to the "PSC Disclaimer" sheet.
  2. Read the disclaimer and click "i accept."
  3. Navigate to the "PSC Outputs" sheet.
    This sheet displays the PSC results in tabular and graphic formats as well as a sensitivity analysis and scenario analysis.
  4. Review the results in the "PSC RESULTS" table.
    Note the value in the 'Total Payments after Toll & Other Revenue' line. This value represents the cost to the procuring agency to deliver this project after subtracting funding subsidies which could come from other public agencies, or could be financed by the procuring agency from a revenue stream not obtained from the project, such as taxes.
  5. Select a percentile and value ($ or %) for the sensitivity analysis and click "run sensitivity."
  6. Adjust assumptions in the "scenario analysis" table using the arrows.

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