Meeting the Challenge: Innovative Program Delivery Strategies
- Research and document noteworthy practices in the delivery of major projects using innovative program delivery methods and tools.
- Research public policy, operational, and legislative issues associated with innovative procurement and revenue generation.
- Gather data on statutory, financial markets, and stewardship issues, as well as revenue options, debt capacity, and performance management.
Value for Money (VfM) analysis is a methodology used by public agencies to compare conventional procurement approaches such as design-bid-build with public-private partnership (P3) options for high-cost projects. This method incorporates life-cycle costs, risks, and other considerations. To help agencies considering a public-private partnership approach make more informed decisions, FHWA researched and documented the methodology and the state of the practice for VfM analysis both in the United States and abroad; developed primers on VfM analysis, risk assessment, and financial structuring assessment; and developed a suite of analytical tools called P3-VALUE to help States learn how to determine if a public-private partnership is appropriate for specific projects. Research is now underway to refine P3-VALUE to incorporate benefit-cost analysis; and to develop concept guidebooks on risk assessment and VfM analysis to help determine values for key inputs.
FHWA Office of Innovative Program Delivery