Ministry branch or section, such as Cost Management, Capital Projects Division, or by external advisors. Any external advisors, e.g. financial, contractors or engineers, would be excluded from participating on proponent teams. Financial models are developed for each procurement approach and compared to determine which approach generates the best value for money. The financial model for the Traditional Procurement is referred to as the while the model for the P3 is referred to as the “PSC” “Shadow Bid.” 5.4.3.1 Public Sector Comparator (PSC) The PSC is used to establish the full and true cost of providing a facility and/or a service under a Traditional Procurement. The Traditional Procurement approach can vary by type of project depending on the procurement methods normally used to deliver the type of infrastructure. The procurement approach used as the PSC must be cost effective, viable, proven and sustainable and must have been successfully used to own, manage and deliver the type of infrastructure in the province on a sustainable basis. The PSC is normally the design-bid-build approach unless another approach meets the PSC criteria. The PSC serves as a benchmark to evaluate the P3 alternative and to examine the impacts of changing key project parameters and inputs such as output specifications and risk allocation. Wherever possible, the costing for the PSC is based on previous infrastructure projects. The Service Delivery Ministry can provide benchmark costing that may help in identifying the costs. These costs should include the internal cost of undertaking the project. 5.4.3.2 Shadow Bid The PSC is used to establish a benchmark for comparison purposes. However, the PSC alone does not allow an estimation of potential P3 costs/benefits when deciding which procurement alternative to pursue. As part of the detailed P3 Analysis, the Shadow Bid is developed to estimate the costs to deliver the project as a P3 and to identify areas where expected benefits could occur. This Shadow Bid is developed by modelling the project as if it were delivered as a P3. The Shadow Bid should cover the same time period and the same scope as the PSC. The Shadow Bid is used:
Ministry branch or section, such as Cost Management, Capital Projects Division, or by external advisors. Any external advisors, e.g. financial, contractors or engineers, would be excluded from participating on proponent teams. Financial models are developed for each procurement approach and compared to determine which approach generates the best value for money. The financial model for the Traditional Procurement is referred to as the “PSC” while the model for the P3 is referred to as the “Shadow Bid.” 5.4.3.1 Public Sector Comparator (PSC) The PSC is used to establish the full and true cost of providing a facility and/or a service under a Traditional Procurement. The Traditional Procurement approach can vary by type of project depending on the procurement methods normally used to deliver the type of infrastructure. The procurement approach used as the PSC must be cost effective, viable, proven and sustainable and must have been successfully used to own, manage and deliver the type of infrastructure in the province on a sustainable basis. The PSC is normally the design-bid-build approach unless another approach meets the PSC criteria. The PSC serves as a benchmark to evaluate the P3 alternative and to examine the impacts of changing key project parameters and inputs such as output specifications and risk allocation. Wherever possible, the costing for the PSC is based on previous infrastructure projects. The Service Delivery Ministry can provide benchmark costing that may help in identifying the costs. These costs should include the internal cost of undertaking the project. 5.4.3.2 Shadow Bid The PSC is used to establish a benchmark for comparison purposes. However, the PSC alone does not allow an estimation of potential P3 costs/benefits when deciding which procurement alternative to pursue. As part of the detailed P3 Analysis, the Shadow Bid is developed to estimate the costs to deliver the project as a P3 and to identify areas where expected benefits could occur. This Shadow Bid is developed by modelling the project as if it were delivered as a P3. The Shadow Bid should cover the same time period and the same scope as the PSC. The Shadow Bid is used:
Alberta-P3-Framework-and-Guideline.docx