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Procurement Options Analysis and Procurement
CACQS Webinar
Mark Liedemann May 31 ,2016
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Agenda
- Introduction
- Procurement Options Analysis
- Procurement
Procurement Options Analysis and Procurement CACQS Webinar Mark - - PowerPoint PPT Presentation
Procurement Options Analysis and Procurement CACQS Webinar Mark - - PowerPoint PPT Presentation
Procurement Options Analysis and Procurement CACQS Webinar Mark Liedemann May 31 ,2016 1 Agenda Introduction Procurement Options Analysis Procurement 2 Partnerships British Columbia (PBC) Founded: 2002 Shareholder:
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Partnerships British Columbia (PBC)
- Founded: 2002
- Shareholder: Minister of Finance
- Governance: Board of Directors
- Staff: approximately 30 FTEs
- Business model: fee for service
- Delivered: 48 + infrastructure projects
- $17+ billion capital value
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PBC Services
- Project planning
- Concept Plans
- Business Cases
- Procurement analysis
- Procurement management
- Design and construction oversight
- Contract administration
- Project communications support
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PBC Project Sectors
Transportation
Public Transit Bridges Highways Airports
Health
Hospitals Residential Care
Education
Primary Secondary Post-Secondary
Energy
Hydro Biofuels Wastewater
Accommodation
SRO Housing Correctional Centres Courthouses
In British Columbia and throughout Canada
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Capital Project Procurement Models
Fully Private Design Build Operate Maintain Design Build Finance Operate Maintain Design Build Finance Maintain Design Build Finance Design Build Design Bid Build Degree of Private Sector Risk Degree of Private Sector Involvement Models
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Business Case
Part A: Rationale Part B: Service Delivery Options Analysis Part D: Funding Analysis and Next Steps Part C: Procurement Options Analysis
- Project Schedule Analysis
- Multiple Criteria Analysis
- Market Sounding
- Financial Modeling
- Risk Analysis
- Value for Money Analysis
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Compare Procurement Models
Qualitative Benefits Quantitative Benefits
Traditional Model
Qualitative Benefits Quantitative Benefits
Partnership Model
VALUE FOR MONEY
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Quantitative Elements
Cash Flow Estimates Risk Adjustments Discount Rate
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Project Cash Flow Estimates
- Estimated by QS
- Based on:
- Indicative design
- Preliminary project
schedule
- Outline
performance specifications
- Efficiencies
Capital Costs O&M Costs Life Cycle Costs Inflation Owner’s Costs Finance Costs
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Risk Workshop Process
- Description
- Impact
- Mitigation
strategies
Identify
- Retained
- Transferred
- Shared
Allocate
- Best case
- Most likely
- Worst case
- Probability
Quantify
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To Quantify or Not to Quantify - Considerations
If the risk were to materialize, would it have a significant impact (financial, schedule, public perception, program delivery)? Can it be reasonably and accurately estimated? How high is the risk ranking (Low? Medium? High? Extreme?)
Materiality Estimable Risk Ranking
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Amount of Private Finance
- 200
400 600 800 1,000 1,200
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 55 57 59 61 63 65 67 69 71
THOUSANDS
Unfunded Value in the Ground Unspent Proponent Security
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Procurement Phase
- Project specifications –goal is to have performance based
specifications to unlock innovation
- Challenges
- lack of experience with performance based specifications
among professionals
- Desire for owner to control outcome via prescriptive
specifications
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Thank You!
Mark Liedemann Vice President, Projects 604 806 4171 www.partnershipsbc.ca