4.3  Procurement Strategy

It is important that procurement alternatives are analysed thoroughly so that a robust recommendation can be made of a preferred procurement method. A rigorous analysis simplifies the decision-making process and ensures that the best procurement method, whether a PPP or an alternative, is pursued.

The key issue is which method of project delivery provides the best value for money in meeting government's service objectives. No one delivery method is presumed to be more efficient than another.

The National PPP Guidelines Procurement Options Analysis guideline explains how to consider and select a suitable procurement method for a public infrastructure project where project characteristics indicate that PPP delivery should be considered. It provides a framework for assessing the viability of PPP delivery against other procurement methods.

For all public infrastructure projects meeting the requirements set out in Section 3 of this Policy document, procuring agencies are required to evaluate a PPP as a potential procurement method when conducting a procurement options analysis and seeking government approval. This is to be done in accordance with the National PPP Guidelines Procurement Options Analysis.