Step 4:  Delivery Model Options Analysis

The next step after shortlisting and validating a number of potentially suitable delivery models is to identify the preferred model. This is done by evaluating each shortlisted model against project objectives, criteria and any rankings associated with the criteria.

When analysing shortlisted delivery models, consider the following (whether or not a decision support tool is also used) -

•  all of the data gathered in Step 1 (or documented in the procurement strategy)

•  the capability of the market and the agency to deliver successfully the project under each shortlisted model

•  how well each model is likely to achieve strategic outcomes and project objectives

•  implications of each model for the agency or market

•  to what extent the chosen delivery model would still be relevant if circumstances changed

•  unique or unusual project characteristics and risks peculiar to the shortlisted models

•  significant risks associated with a delivery model that could not be effectively managed, or that exceed organisational tolerance levels.

There is no prescribed approach or methodology for delivery model selection. An generic example is included in the appendix.

However, a number of tools are available for comparing models and identifying the most suitable for a particular project. A semi-quantitative assessment may assist in selecting the preferred delivery model.  There are various quantitative methods available and new methods may be developed. The essence of quantitative analysis is to quantify the rationale behind delivery model selection decisions.  No matter how solid mathematically, a model based on incorrect or illogical assumptions will be of little use.

Some departments have developed approaches (assessment matrices, weighted tables and other tools) which reflect their particular project requirements.

When using a decision support tool -

•  Avoid formulae or methodologies that conceal their logic or fail to demonstrate the reasoning involved.

•  Ensure sufficient intellectual expertise is available to analyse options from first principles.

•  Ensure that the tool is appropriate - there is no decision support tool that fits all projects.

•  Do not rely on the assessment of a single tool.

•  Compare the result arrived at by applying the tool with an analysis from first principles - does the result withstand scrutiny from a first-principles analysis and a check against another analytical method?