This Orientation Guide (Guide) introduces P3-VALUE (Public-Private Partnership Value for Money Analysis for Learning and Understanding Evaluation) users to public-private partnerships (P3s) and the methods used in P3 evaluation. The Guide reviews the different types of P3s in the United States and their benefits and limitations, and explains how public agencies may evaluate different procurement options for a particular project. The Guide explains how P3-VALUE can help users understand the processes and considerations that go into a rigorous quantitative analysis of P3 procurement options for transportation projects. It is important to note that the Guide is based on the experience of the U.S. P3 market and therefore reflects the terminology and methodology practiced in the United States.
The Federal Highway Administration's (FHWA) Office of Innovative Program Delivery (OIPD) is producing a P3 Toolkit comprising tools and guidance documents to assist in educating public sector policymakers, legislative and executive staff and transportation professionals. The P3 Toolkit forms the base of a broader P3 capacity-building program which includes a curriculum of P3 courses and webinars. The P3 Toolkit will address Federal requirements related to P3s and four key phases in P3 implementation: (1) Legislation and Policy; (2) Planning and Evaluation; (3) Procurement; and (4) Monitoring and Oversight.
P3-VALUE and its accompanying evaluation resources are a key component of the P3 Toolkit. They serve as a reference for decision-makers and practitioners seeking to understand P3s as a financing alternative for major capital projects. The P3 Toolkit includes the following P3 evaluation resources:
The evaluation resources serve as references for decision-makers and practitioners seeking to understand P3s as alternative methods of delivering major transportation projects. P3-VALUE provides a set of integrated analytical tools to help practitioners understand processes used to quantitatively evaluate procurement options. Practitioners can use P3-VALUE to familiarize themselves with the process of evaluating procurement decisions, the data required to conduct quantitative assessments of procurement options and the impact that various assumptions can have on the desirability and feasibility of different procurement structures. P3-VALUE is for educational purposes only and is not intended to guide decisions on actual projects.
As depicted in Figure 1-1, P3-VALUE is comprised of four interactive, integrated spreadsheet-based analytical tools that allow users to explore different components of Value for Money Analysis (VfM) including:
Figure 1-1. P3-VALUE Overview
Accompanying user guides and other resources include: