P3 procurement methods offer many potential benefits for public agencies responsible for delivering major transportation projects. They can accelerate project delivery, improve cost and schedule certainty, and lower the overall life cycle costs of transportation facilities. These benefits may be offset by additional costs incurred by P3s including higher transaction and financing costs and the payment of premiums to transfer risks to the private sector. P3-VALUE provides a set of tools to help practitioners consider the financial costs and benefits of different procurement options.
P3-VALUE allows users to assess the potential costs and risks (and the value of transferring those risks) and to develop cash flow models that allow users to compare the costs of different procurement options. P3-VALUE is designed to demonstrate the process of evaluating procurement decisions, the data required to conduct quantitative assessments of procurement options, and the impact that critical 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. When using P3-VALUE, users should keep in mind the limitations of both the tools and of VfM analysis in general. Users may refer to user guides, primers, and other resources available on the FHWA IPD website for further guidance.