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Benefit-Cost Analysis for Public-Private Partnership Project Delivery - A Framework

January 2016

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7.0 Summary

The net benefits from each step of the BCA process may be summarized as shown in the Table below.

Table 5: Summary of Net Benefits estimated in each BCA Step

BCA Step Source
"Base" project benefits Delayed PSC benefits calculated in Table 1, i.e., "X"
Impacts of project acceleration Acceleration benefits calculated in Table 2, i.e., "Y - X"
P3 delivery impacts P3 delivery benefits calculated in Table 4, i.e., "Z - Y"
P3 scope optimization impacts P3 scope optimizations can only be evaluated after bids have been received (ex-post)
Total project benefits Sum of results from above steps

FHWA has developed this PDBCA framework to assist in estimating the overall social benefits of P3 project delivery. FHWA has enhanced its educational P3-VALUE 2.0 analytical tool to incorporate the PDBCA framework and enhance VfM analysis. Research is underway to developing methodologies to estimate P3 impacts that can be expected based on project, context and delivery characteristics. The intent is to develop PDBCA methodologies that are sound on technical grounds as well as address the evaluation needs of the P3 stakeholder community.

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