DEVELOPING A FRAMEWORK FOR EX-POST VALUE FOR MONEY ANALYSIS IN PUBLIC PRIVATE PARTNERSHIP PROJECTS
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In recent years, Public Private Partnerships (PPPs) has emerged as a project delivery option for transportation projects in the US. This type of project delivery is generally a long term agreement between the public and private sectors for the purpose of delivering a project or service traditionally provided by the public sector. Some of the reasons for implementing PPPs are the ability to provide an overall lower life-cycle cost and to increase cost and schedule certainty. This is sometimes referred to as the ability to provide a better Value for Money, hence the use of Value for Money (VFM) analyses to compare overall financial impacts of PPP against those of a traditional delivery alternative. While the VFM analysis is considered as the best practice for selecting PPP approach, the primary challenge in conducting the analysis, however, is to validate the empirical results of these studies. Most of the previous studies have investigated ex-ante results and little has been done in regards to what can be considered ex-post studies. This study presents a framework for ex-post value for money analysis. Processes, data requirement, and algorithms are developed to ensure an ex-post assessment can be performed at various stages of PPP project development including commercial close, substantial completion, during operation and maintenance phase, and final acceptance. The Presidio Parkway project in San Francisco will be used as a case study to illustrate the method and procedure of ex-post VFM analysis framework.